Inside Mining Sustainability Vol. 4 2022

S U S TA I N A B I L I T Y

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VOLUME 15 NO. 04

Eskom addresses SA’s energy crisis

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NOVEMBER 2022

Tyre recycling’s contribution to sustainable mining

SIBANYE-STILLWATER Unlocking sustainability through conscious mine closure

Mining Research & Innovation

Academia leading the way

ISSN 1999-8872 • R55.00 (incl. VAT)

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THE SUSTAINABILITY ISSUE | 2022

CONTENTS FRONT MATTER Editor’s Comment...........................................................................................................................2 Foreword.............................................................................................................................................3 COVER STORY Sibanye-Stillwater’s mine closure strategy contributes to sustainability ���������8 MINE CLOSURE Building social impacts into mine closure criteria......................................................10 Important considerations for safe mine closure..........................................................13 INDUSTRY INSIGHT What does the future hold for SA’s mining industry?............................................. 14 Eskom’s plan to address SA’s energy crisis.................................................................... 16 New headquarters for VEGA South Africa.................................................................20 Transforming and strengthening India..............................................................................23

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LEGAL Can a mining company get ‘SLAPP-ed’?.........................................................................24 SUSTAINABILITY Sustainable finance and its role in responsible mining............................................26 Jet-setting from sustainability to regeneration.............................................................29 Tyre recycling’s contribution to sustainable mining..................................................30

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TECHNOLOGY Academia at the forefront of R&I in mining..................................................................34 Exploring continuous surface mining alternative technology..............................38 Waste-to-energy focus highlights BME as ahead of the curve..........................40 EVENTS Unlocking the future of mining in Africa at Mining Indaba 2023.....................44 S U S TA I N A B I L I T Y

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VOLUME 15 NO. 04

Eskom addresses SA’s energy crisis

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24

NOVEMBER 2022

Tyre recycling’s contribution to sustainable mining

SIBANYE-STILLWATER Unlocking sustainability through conscious mine closure

ON THE COVER This issue’s cover was sponsored by Sibanye-Stillwater.

Get in touch with the Inside Mining sales team to sponsor the upcoming issue: contact Chilomia (+27 (0)11 233 2627 / Chilomia.VanWijk@3smedia. co.za) or Amanda (+27 (0)11 233 2612 / Amanda.DeBeer@3smedia.co.za).

Mining Research & Innovation

Academia leading the way

ISSN 1999-8872 • R55.00 (incl. VAT)

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EDITOR’S COMMENT

MINING INDUSTRY CONTINUES TO

embrace sustainability

In years gone by, the term ‘sustainability’ was far from synonymous with the mining industry, while concepts such as ESG (environmental, social and governance) had no clear definition within the context of the sector.

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s time went on, the industry gained a better understanding of sustainability in mining, to a point where companies became more comfortable with promoting their sustainability-related initiatives in the industry. This did the industry much-needed good, especially given the bad reputation it had gained over the years as being irresponsible and having little care for the environment – let alone host communities.

Today, one can confidently say that the mining industry is clear not only about what sustainability is but, more importantly, on the industry’s responsibility towards sustainable mining practices. Mining companies now have sustainability targets that they work towards, as well as an obligation to report on their sustainability deliverables.

Centre stage Sustainability is a talking point beyond boardroom round-table discussions held behind closed doors. Sustainability has taken centre stage at top conferences and other events in the mining industry both locally and internationally.

Investing in African Mining Indaba 2023 will be hosting the Junior ESG Awards for a second year running. The purpose of the ESG Awards is to recognise the achievements and positive impacts of sustainable development by junior mining houses.

In November 2022, the 2022 United Nations Climate Change Conference (COP27), took place in Sharm El Sheikh, Egypt. Various mining organisations participated, including the ICMM, the International Copper Association, the Natural Resource Governance Institute, Extractive Industries Transparency Initiative, ArcelorMittal, and Anglo American.

Diverse topics – such as ‘Mission Critical: Mining governance for a just energy transition,’ ‘Empowering communities for a just transition’ and ‘Mineral demand for clean-energy technologies’ – were discussed during the conference.

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EDITOR Dineo Phoshoko (dineo.phoshoko@3smedia.co.za) HEAD OF DESIGN Beren Bauermeister DESIGNER Lizette Jonker CHIEF SUB-EDITOR Tristan Snijders CONTRIBUTORS Vidette Bester, Ramesh Dhoorgapersadh, Spencer Eckstein, Sachin Govender, Morgan Lekstrom, Muhammed Khan PRODUCTION & CLIENT LIAISON MANAGER Antois-Leigh Nepgen GROUP SALES MANAGER Chilomia Van Wijk PRODUCTION COORDINATOR Jacqueline Modise DISTRIBUTION MANAGER Nomsa Masina DISTRIBUTION COORDINATOR Asha Pursotham BOOKKEEPER Tonya Hebenton

SUBSCRIPTIONS subs@3smedia.co.za ADVERTISING SALES Amanda De Beer Tel: +27 (0)72 600 9323 / +27 (0)87 802 5466 Email: amanda.debeer@3smedia.co.za PUBLISHER Jacques Breytenbach 3S Media Production Park, 83 Heidelberg Road, City Deep, Johannesburg South, 2136 PO Box 92026, Norwood 2117 Tel: +27 (0)11 233 2600 www.3smedia.co.za

In South Africa, Resources 4 Africa hosts annual events throughout the year, focusing on various sectors of the mining industry. The events include the Joburg Indaba, Hydrogen Economy Discussion and the Coal & Energy Transition Day. Sustainability always features on the agenda of these events where industry heavyweights engage on diverse topics such as how mineral development can fuel socio-economic change, recycling, recovery and reprocessing, the role of PGMs in the hydrogen economy, green hydrogen projects in Africa, and the role of renewable energy in the energy transition, among others.

A collaborative approach to sustainability The mining industry has undoubtedly come a long way in prioritising sustainability-related issues; however, there are still challenges holding the industry back. The most obvious is the fact that not everyone agrees on certain issues, and this could lead to a lot of back and forth between stakeholders, resulting in minimal or no progress.

Thankfully, conferences provide a platform where key stakeholders can gather to discuss challenges and potential solutions to sustainability-related matters. Engagements and dialogue have led to the industry agreeing on a common resolution to challenges relating to sustainability: collaboration. Although this is not the only resolution, collaboration is certainly among the most effective answers to many sustainability-related challenges.

The mining industry has adopted an integrated approach to sustainability, looking at various aspects of sustainability and identifying key stakeholders to work with on projects and resolving various challenges. Vital aspects include technology, finance, the environment and socio-economic factors, among others.

Collaboration will be crucial in achieving success. As such, mining industry captains are collaborating with different stakeholders – sometimes beyond mining – to achieve the desired results when it comes to sustainability.

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THE SUSTAINABILITY ISSUE | 2022

FOREWORD

Sustainability & community involvement as critical components of ESG After spending several years travelling in and out of foreign mining camps in all parts of the world, I realised one thing – we have the power to create a skill-based community, not just a workforce. By Morgan Lekstrom*

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his led me down a very interesting career path of not only taking part in building mines and leading teams, but always having the idea of the local community coming away with something more significant than just a mine site.

There are companies doing excellent work when it comes to involving local communities and local stakeholders, even in remote locations.

In the Canadian Arctic, for example, there is Sabina Gold & Silver, which I saw first-hand a few years ago as an engineering manager with the company, from the office to on-site at the Back River Marine Laydown Project. We put boots on the ground with our team and local contractors.

Our focus was on-time, on-budget execution and early integration with the local workforce. I learned from my time at Sabina that engaging earlier in the process, even in the construction phases, will create a stronger foundation. Today, Sabina is advancing towards constructing the Goose gold mine at its Back River Gold Project in northern Canada’s Nunavut territory.

In Nunavut, the Inuit own the land, and the 1993 Nunavut Agreement governs environmental assessment and permitting. Sabina has a strong IIBA (Inuit Impact and Benefit Agreement) with the Inuit of the Kitikmeot Region, which provides financial and socio-economic opportunities for the local Inuit alongside benefits to other Sabina stakeholders. Environmental well-being is among the IIBA commitments, which includes

an Inuit Environmental Advisory Committee. This successful partnership – led at Sabina by Bruce McLeod, president and CEO, and Matthew Pickard, VP: Environment and Sustainability – shows that experience, engagement and listening can create a collaborative path forward.

In a very different location and political environment in West Africa, former Canadian-owned Golden Star Resources has also done an excellent job with its community integration work in Ghana when it oversaw the Prestea underground gold mine. I was proud to lead teams on the ground while working with members of the executive team on implementing strategic initiatives to advance the development and revival of the mine and the local community. This involved working closely with community representatives and government officials to ensure that corporate and local objectives were aligned, documented, and achievable. The company’s sustainability activities, then led by Philipa Varris, the executive VP heading up sustainability at the time, brought industry awards as ESG (environmental, social and governance) producer of the year and for environmental and social responsibility.

While in Ghana, we developed world-class training programmes for various trades and engineering roles.

Local workers were taught, coached and guided by not only ex-pats but also local trainers with whom we could work. We also established relationships with local training facilities, helping fund and train their trainers. This created a programme that would be sustainable for the long term with less ex-pat

Morgan has 14 years’ mining experience in progressively senior roles in project, operations and engineering management

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FOREWORD

Morgan Lekstrom and locally trained field team in Ghana at Golden Star Resources’ Prestea gold mine – summer, 2016

involvement. As an ex-pat, my goal was to ‘work myself out of a job’ and have a local professional transition into the role. My goal was to help make the project, the Ghanaian communities and the company successful. This ‘train the trainer’ approach spread across all of Golden Star’s operations in Ghana. Ultimately, we created a strong and growing team of leaders with a heavy emphasis on departments that were managed locally.

Eventually, after I had left for family reasons, the task was completed with mainly local integrated managed teams.

Essential aspects of ESG initiatives There are fundamental aspects to these and other well-implemented ESG initiatives. This includes boots on the ground and listening to people living there. Both are critical to understanding a community’s needs and its people. This is what has made companies like Sabina and Golden Star successful, and the industry sees this industrychanging direction to more initiatives like these.

Both mining corporations and junior explorers

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must first consider themselves as stakeholders in the communities where they operate. Being there in person and learning about concerns, needs and desires are paramount to developing an effective and implementable sustainability plan. There are times when you may have a great project, team and location, but it may not be feasible for many other reasons.

The thinking behind this is clear. In modern-day mining, environmental processes are rigorous.

Community initiatives are integral to both permitting and a company’s international reputation, which forms the foundation for investor confidence.

Creating successful, long-term collaborative partnerships addresses sustainability, supports permitting to conduct exploration, advances local skill-based training and utilises those skill sets not only in the operation but the construction.

When companies work with and in local communities, the people involved in their projects take ownership and develop a sense of duty. So too do executives who spend significant time locally.

They forge community ties and a growing sense of

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FOREWORD

responsibility, which is then reflected in the positive choices made by those leaders and the businesses they represent. These decisions translate directly to the environment, as it is an environment they care about and will spend time in over the long term.

Indeed, creating programmes from the office as a CEO is much different from spending time on the ground and understanding what programmes are needed. Large companies obviously function much differently than junior mining companies, but the basics are the same. Putting boots on the ground and gaining an understanding of needs is critical in either case. The CEO is not always best suited for this role, so companies must understand their strengths and weaknesses and accommodate.

And, of course, there are consequences when this is not adequately addressed, including potential issues with permitting, community buy-in and, ultimately, degradation of shareholder value.

High-standard ESG practices It is heartening to see corporations realising the importance of engaging in high-standard ESG

practices. There are many benefits for the world we live in and from an investment community stance too.

ESG considers corporations’ impact on all stakeholders, from the communities in which they operate and their workforce to the clients/ customers served. This tells mining executives that investors want to be more responsible, see positive change, and are backing companies with this type of holistic view.

My experiences in Ghana, Indonesia, Peru and Mongolia have given me a different perspective on what ESG means. Integrating strategies with input from community leaders at the outset of a project can support executive teams to make decisions that are more time- and cost-effective. At the same time, this helps to advance field work while creating greater harmony and goodwill with the people who live and work there.

I have had the pleasure of working with ESG experts, being in the field and leading the change in environmental and sustainability initiatives.

From my experience, change starts at the base, just

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COVER STORY

like a triangle. With local communities, it is about the longer-term benefit to both, through rapid upskilling in a methodical way that will benefit local populations while creating long-term growth potential. Building communities around projects that have a long-term outlook for growth can benefit everyone through infrastructure, school and business opportunities.

My experiences in Ghana and other developing resource districts have ingrained in me the importance of community relations and environmental stewardship as being fundamental to project success. I am thankful for the wisdom shared by local leaders and industry stalwarts in creating effective ESG programmes.

In my recent work as the CEO of Silver Hammer Mining, I applied these lessons to effectively groom

our silver exploration projects in the US. In Idaho, we applied for permits from local agencies, making the submission based on best ESG practices. Though this process usually takes years, the permits were granted to Silver Hammer in a matter of months. I am proud to say this came about by working closely with local contractors, understanding regulations and adjusting the technology used to fit within these regulations.

As leaders, we can make mistakes, but we can also learn from them. In truth, we are only as good as the knowledge we have to make decisions.

Sometimes we need to find more information or see for ourselves to understand. And small changes over time make a significant difference. *Morgan Lekstrom previously served as the president and CEO of Silver Hammer Mining Corp.

Expect more sustainability

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SIBANYE-STILLWATER’S MINE CLOSURE STRATEGY CONTRIBUTES TO SUSTAINABILITY

The mining industry has throughout history played a fundamental role in the development of human society. The resources accessed by mining companies are however finite, and once they have been depleted, the mining operations accessing these resources inevitably also have to end their operations, leading to the permanent closure of these mining operations, with consequent impact effect.

At Sibanye-Stillwater, these post-mining impacts are well understood and in order to enable mining towns and surrounding communities to sustain their economies after

post closure of the mines, sustainable postmining closure scenarios are co-developed with the communities and other stakeholders in affected regions. The company has committed to cooperatively plan and design alternatives to mitigate the impact of mine closure in consultation with stakeholders and authorities to establish regional fit-for-purpose post-mining scenarios that pivot on alternative economies. This includes considering the use of appropriate and fit-for-purpose mining-related equipment, infrastructure and assets that can safely sustain and contribute to the local and regional economy.

SIBANYE-STILLWATER’S APPROACH TO MINE CLOSURE Sibanye-Stillwater’s closure vision is to create a safe, stable, non-polluting and aesthetically aligned regional post-mining solution in agreement with stakeholders, which includes amongst others, socio-economic upliftment, stable post-mining alternative economies [independent of mining] leading to sustainable livelihoods, as well as overall sustainability of both natural and social ecosystems.

Central to this vision, is the repurposing and re-use of mining infrastructure and assets where practical and sustainable. It comprises of the possible use of rehabilitated mine land for development purposes and repurposing renewable energy power generation developed to be used by its mines to support local communities. Land owned by the company is donated for alternative

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initiating closure planning only towards end-of-life of mine which proved to be way too late

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little or no consultation on closure planning with a broad range of stakeholders and interested and Affected parties (I&APs)

Sibanye-Stillwater has implemented an integrated planning approach that takes the entire lifecycle of a mine into account when planning for closure. Accordingly, closure planning is incorporated into the earliest stages of mine planning, to identify risks and opportunities and to manage those

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industries including integrated agricultural projects and the establishment of integrated industrial parks and Special Economic Zones (SEZs) in partnership with local and national government and other vested stakeholders, in order to further enable and boost post-mining economies and ecosystems.

Sibanye-Stillwater is a member of the International Council on Mining and Metals (ICMM) and its internal policies and procedures on post-mine are aligned with the ICMM’s guidelines and principles, providing additional confidence in Sibanye-Stillwater’s approach to closing end of life operations in a safe, sustainable and socially responsible manner.

This is a step-change and departure from the standard and traditional approaches to mine closure, as pictured below:

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closure planning pitched at site-level without taking into account regional closure considerations

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closure seen as an environmental process rather than a broader social closure project

proactively throughout the mining lifecycle to ensure successful mine closure at the end of a mine’s life.

Sibanye-Stillwater also investigates and implements sustainable mine closure and rehabilitation solutions such as, delivering

THE SUSTAINABILITY ISSUE | 2022 clean water to local and regional catchments (through functional and well-maintained wastewater and potable water treatment systems, further enhanced by passive water treatment systems and restored wetlands and river systems where applicable), and renewable energy such as PV Solar plants and green hydrogen facilities into localised power grids. In addition, the proposed Bokomosa Ba Rona agricultural hub on the West Rand and the proposed animal husbandry at our Beatrix operation in the Free State, are some of the

opportunities and initiatives being considered for feasibility and implementation. In so doing, when Sibanye-Stillwater’s mining operations reach their end of life, the company’s mine closure strategy will enable alternative economic activities to replace mining-led development. In addition, the social and environmental baseline conditions will improve to the extent that the regions in which SibanyeStillwater operates will contribute to sustainable livelihoods that are in harmony with nature.

STEPS TO ESTABLISH A DETAILED STRATEGY Mine closure is a dynamic process and requires clearly defined steps in order to achieve the desired objective. For Sibanye-Stillwater, the first step involves establishing a baseline of the socio-economic status of the communities and the state of the natural environment in our areas of operation. Through the baselining process, the company obtains valuable information that provides insight into what is required to leave sustainable communities behind and to

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Identifying regional closure planning jurisdictions

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Leveraging mine infrastructure into sustainable solutions (Land, WWTW, mine infrastructure (buildings, offices, stadiums)

put a plan together that will create feasible substitutive economies during the transitional phase to close the gap between the cessation of mining and the kick-start of alternative postmining economies. This process will make way for the development of a post-mining blueprint for all of Sibanye-Stillwater’s South African operations. Sibanye-Stillwater’s mine closure strategy includes a detailed road map to closure planning, which entails:

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Identifying key stakeholders which include inter alia, local government, local communities, employees, other mining houses and industry players in the region

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Engaging stakeholders

The final outcome of the above roadmap will culminate in parallel, mine-specific social closure planning processes and Mine Closure

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Profiling the community’s key socio-economic development needs and assessing the impact of operations. Addressing the socioeconomic impact during mine operation

Developing regional closure plans

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Submitting plans to the DMRE for approval

Plans which will integrate and articulate Sibanye-Stillwater’s social closure strategy and its objective.

CREATING A TRANSITIONAL PHASE TO SUSTAIN POST-MINING ECONOMIES The land use scenarios for each of SibanyeStillwater’s operations focus on and demonstrably support, equip and train local communities and stakeholders in preparation for alternative economies in the regions in which Sibanye-Stillwater operates.

On a regional level, the identification of meaningful economic partnerships is seen as a critical success factor and a catalyst to create skills and opportunities, in an effort to reduce the transitional gap between active mining and post-mining activities. This process ties in with skills development priorities and operational LED (local economic development) programs as stepping stones towards establishing feasible substitutive longer-term initiatives.

Ultimately, Sibanye-Stillwater’s closure planning process aims to promote environmental sustainability, socio-economic upliftment, as well as the eradication of economic hardships and the legacy of mining ghost towns within our operational areas. “Our approach to social closure is a philosophy that endeavours to ensure that the value we create during our life of mine can be sustained well beyond mining.

It is about contributing to sustaining livelihoods that relied on mining and transitioning seamlessly into post-mining economies,” says Thabisile Phumo, Sibanye-Stillwater’s Executive Vice President: Stakeholder Relations.

www.sibanyestillwater.com 9

MINE CLOSURE

Building social impacts into

MINE CLOSURE CRITERIA While much of the South African mining industry recognises the benefits of strong mine closure governance, the typical approach has some way to go in adequately addressing the UN Sustainable Development Goals (SDGs). By Dr Vidette Bester*

Vidette has over 11 years of experience as a social scientist, with a background in sociology, development and management, as well as psychology

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nalysing several mine closure plans that are inw the public domain shows that the criteria commonly applied by South African mining companies to mine closure tend to focus on environmental rehabilitation or mine reclamation. By contrast, those criteria related to social closure are less well developed and applied; indeed, this is not a problem specific to South Africa, but can be observed in the mining sector globally.

South Africa’s long history of mining has shown how important the sector is to national economic development. Today, local legislation places specific requirements on mines’ contribution to the socio-economic development of mine-associated communities and labour-sending areas. Mines must also conduct broad-based stakeholder engagement to address downscaling and retrenchment. However, social mine closure criteria – and the mechanisms for achieving an effective social transition to mine closure – are not legally required.

Framework needed What is therefore essential at this stage is a framework for developing social mine closure criteria and mechanisms, to further enhance the potential of mines to direct their sustainable development policies, plans and programmes

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within their areas of influence. To support the effectiveness of these criteria, such a framework should also align with the UN SDGs. The concept of social transitioning toward mine closure is certainly not new to the mining sector.

The International Council on Mining and Metals (ICMM) released its Planning for Integrated Mine Closure Toolkit in 2008, and updated it in 2019. The ICMM’s Closure Maturity Framework – published in 2020 – also helps operations to understand their status and performance towards implementing social closure in each stage of the mine’s life cycle.

In the context of declining employment levels since 2012, mine closure in South Africa has to a great extent been neglected. This has highlighted the need for better closure planning, especially the incorporation of social aspects that could foster alternative livelihood opportunities not dependent on mining.

A reflection of the seriousness of this issue is the fact that there are close to 6 000 abandoned, derelict or ownerless mines in the country.

According to the most recent data, only 803 closure certificates were issued by government for prospecting rights, mining permits and mining rights between 2011 and 2016. This means that the industry’s decline – most notably in the gold segment – has led to environmental and

THE SUSTAINABILITY ISSUE | 2022

MINE CLOSURE

social impacts that arise from a lack of planning and rehabilitation.

Incorporating social closure In recent decades, the mining sector has built considerable capacity in the environmental field, improving its performance in this regard.

However, the industry’s strengths in environmental and engineering sciences tend to overlook or exclude social specialists – leading to the closure planning process being dominated by technical considerations. By the time social specialists are involved, many social issues may have been ignored – leaving little time for proper studies and public engagements.

Related to this, a significant barrier to incorporating social closure criteria is that mines and mine closure professionals tend to consider closure as an isolated event – needing attention only when the mine reaches the end of its life. A more holistic view would highlight the fact that closure is rather a continuation of the mine’s life cycle. As such, the decisions made during the mine’s life could support a successful social transitioning during mine closure.

Also, the fragmented and siloed approach that is often taken toward social aspects of closure means that sustainable development objectives do not comprehensively deal with the post-closure scenario by considering current social impacts. For instance, communities are dependent on mining activities

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MINE CLOSURE ENERGY

for employment, services and a market for local businesses. In addition, mines have historically also fallen into the trap of industrial paternalism – providing mine employees with services such as housing and healthcare. Mines’ contribution towards community upliftment has been partly in response to a lack of government resources to provide municipal and social infrastructure, instead of creating sustainable communities beyond the life-of-mine.

Management objectives Given this historical legacy and the significant focus on mines’ social licence to operate, there is a pressing need to develop or update a framework for social closure in the South African context. The authors therefore conducted a study to explore what a social mine closure framework would entail. Among the findings was that there are three management objectives that are key to defining the criteria for effective mine closure. The first is to manage the effects created by the loss of direct employment at the mine. The second is to manage the loss of local procurement, and third is to manage the reduced contributions to community development programmes.

It is vital that each mine develop its own objectives, relevant to its context, in consultation with key stakeholders and host communities. The objectives can then be used to refine the tasks necessary to implement, monitor and update the mitigation measures allowing the mine to relinquish tenure and liability at the site.

Practical options Importantly, these actions should be practical and achievable within the mine’s remaining lifespan. How near the mine is to closing will affect how it pursues these objectives. For example, a mine that is close to downscaling would need to prioritise the first objective, focused on the effects of retrenchments and the associated loss of income. Mitigating activities

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could include the development and implementation of a skills audit for employees – to improve their employment prospects elsewhere in mining or other sectors. Employees could be assisted in investing retrenchment packages wisely, or in starting businesses related to post-mining land-use programmes.

In terms of the second objective of managing the loss of local procurement, mitigating activities could include diversifying the mine supply chain through supplier mapping. Social closure criteria would reflect the desired outcome of this – identifying the degree of dependence of key suppliers, and exploring how they might be empowered through gaining access to alternative markets.

To mitigate the impact of the mine’s reduced investment in development programmes and local infrastructure – the third objective – social closure criteria need to outline a future scenario in which these programmes are more self-sustainable. This could involve implementing co-production projects at inception, or consulting with the Department of Minerals and Energy on sector-specific programmes to address gaps in access to services and facilities.

This framework for developing social mine closure criteria needs to be well integrated into mine closure plans – and it is imperative to pursue social mechanisms for closure as early as possible. To be successful, these strategies need to be based on a collaborative framework for engagement. Effective social transitioning to a post-mining phase will require community and government buy-in and cooperation throughout the life-of-mine.

This article is based on a paper presented by Dr Vidette Bester at the Mine Closure 2022 conference in Brisbane, hosted by the Australian Centre for Geomechanics. The paper was co-authored by Jessica Edwards, SLR Consulting, UK, and Ashleigh Maritz, SRK Consulting, South Africa. *Dr Vidette Bester is a senior social scientist at SRK Consulting.

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MINE CLOSURE

IMPORTANT CONSIDERATIONS for safe mine closure

Illegal mining, safety risks and abandoned mines are some of the various negative impacts caused by mines that are not properly closed. Mine closure and rehabilitation are therefore essential once mines reach their end of life.

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Marcel believes that health and safety is a key aspect in the closure of mines

peaking to Inside Mining, Marcel Bruyns, sales manager at Axis Communications, shares his views on different aspects of mine closure.

What factors should be evaluated in the process of ensuring the successful maintenance of a post-mining closure site?

MB Health and safety is probably among the most important factors in the closure of mines. As a mine approaches closure, there could be a few things that are missed from a health and safety aspect; the use of smart technologies could aid in maintaining the safety of the miners on-site during this process.

What are the common mistakes made by mining companies when it comes to mine closure and rehabilitation?

When talking about technology and Axis Communications solutions specifically, we often have the conversation around the total cost of ownership of the surveillance system. Understanding the decommissioning costs is important. Sometimes, the technologies can be repurposed in other areas of the mine during the closure; they can even be repurposed for the rehabilitation process.

What role does technology play in mine closure and rehabilitation?

From a surveillance perspective, there are many technologies that can be used in the aiding of mine

closures. They could range from monitoring the area as operations slow down through to complete rehabilitation. In some situations, the protection of machinery may be the priority; in others, it could be monitoring the change in environment, such as rivers and foliage as well as the return of wildlife to the area.

We have worked with mines to protect perimeters and also provided video footage to mines that have been closed for the protection of the raw materials.

Making sure the area is safe from a health and safety aspect is also important, and making sure this can be done remotely will drastically reduce the total cost of the mine closure. Mine owners can monitor the progress of the closure and the rehabilitation of the mine, reducing the potential costs as well as avoiding potential fines if the rehabilitation process is not completed in a timely manner.

Is there anything you would like to add?

There are many technologies that can assist in the process of closure. One of the difficulties of mining is the availability of energy at sites. Using smart, multisensor cameras and thermal technology can reduce the overall power requirements of the sites. Thermal cameras can cover the large areas of mines and multisensor cameras can provide a good 360-degree overview, using only one network point, reducing power consumption as well.

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INDUSTRY INSIGHT

What does the future hold for

SA’S MINING INDUSTRY? Roger Baxter, CEO of Minerals Council South Africa, was among the keynote speakers at the 2022 Joburg Indaba, which took place in October. His address focused on the future of South Africa’s mining industry and what was needed to unlock its full potential.

By Dineo Phoshoko South Africa’s mining industry has often been associated with the sunrise

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efore beginning his address, Baxter shared his experience after returning from an overseas trip to Australia and compared his airport encounter in Australia to his arrival back home in South Africa.

He explained that in Australia, the check-in process at the airport was mostly automated and had an automated passport queue that, according to Baxter, was efficient. “[I] got back to O.R. Tambo. There was a queue right outside the area where the passport office [was]. It took me half an hour just to get through the passport queue. When you come into that venue and you look at the lighting, half the lights don’t work, none of the escalators were working.”

He added that the passport officials lacked excitement in welcoming foreign travellers to South Africa.

Sunrise vs sunset industry In his address, Baxter mentioned that he’s often confronted with the question of whether South Africa’s mining

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industry is a sunset or a sunrise one. In his response, Baxter explained that he looks at South Africa and sees the country on the same competitive level as the likes of Australia, which also has a dominant mining sector. “We have an incredible capability. We just seem to spend a lot of our time disabling that capacity as a country.”

He emphasised the significance of the mining sector in South Africa. He explained that despite the many challenges faced by the country, there were many opportunities for the mining sector to excel. According to Baxter, the opportunities lay in the country’s mineral resource endowment, as well as the material pipeline of skills from world-class educational facilities, to name a few. Regarding a pipeline of skills, Baxter explained that Australia’s Queensland state no longer offered mining and engineering degrees at any of its universities. “We’ve got a surplus of mining engineers coming out of our universities that we can’t employ because we are not growing our sector fast enough. We should be doing something about

THE SUSTAINABILITY ISSUE | 2022

INDUSTRY INSIGHT that. In some areas, we’ve got fantastic infrastructure; we’re just not meeting the service levels on that infrastructure that we need.”

Limitations holding the sector back Baxter’s keynote address was indicative of the fact that South Africa’s mining sector did not reach its full potential because of various constraints. He highlighted a few, which included crime and security, red tape, policy, logistics and energy.

Transnet Freight Rail (TFR) and Transnet Port Terminals (TPT) have faced many challenges that have had severe consequences on the mining industry. As a result, iron ore, coal, chrome and manganese rail deliveries are below target. Baxter also pointed out that there was a decline in rail deliveries – due to crime and cable theft (including 1 500 km of copper cables in five years), onerous government procurement rules, vandalism, idled locomotives bought in a corrupt transaction, poor maintenance, and falling productivity at rail depots and ports.

“I’ve got to admit, I think the Transnet leadership team have enabled a lot of discussions to take place,” said Baxter, adding that the Minerals Council was working closely with the state-owned rail, port and pipeline company to try to find ways to make progress.

“We need to start looking at what models work around the world, and we need to adopt them in South Africa.

[Among] the models that really work around the world [are] proper private-public partnerships. We’re in the business of exporting bulk commodities to the world. Rail and ports are a critical component of our business models.”

According to Baxter, one of the solutions to resolve the rail and port constraints involves private sector involvement and partnerships on essential railway corridors and ports to achieve targets and then focus on growth. He also mentioned that all parties agreed that a holistic solution is needed to resolve the challenges at Transnet. This included an urgent need for real partnerships – between bulk mining companies, rolling stock providers, Transnet (TFR and TPT), and government – which are focused on jointly agreed-on solutions that benefit all parties and the country.

Resolving the challenges would lead to improved rail and port services, which would in turn unlock multiple opportunities for the mining industry. According to 2021 figures, the rail and ports sector employed 459 000 people. Baxter mentioned that this number could increase to approximately 500 000 direct jobs from expanding bulk mineral exports. He added that the expansion of iron ore, coal, chrome, ferrochrome and manganese export capacity could result in R151 billion of extra exports. An increase in exports also leads to an increase in taxes to approximately R27 billion.

Energy crisis The year 2022 was a record-breaking one in terms of load-shedding in South Africa. September 2022 saw the return of Stage 6 load-shedding (which first took place in 2019). Another unpopular milestone was when South Africa endured the longest period of load-shedding since it first started in 2008.

Again, Baxter spoke positively of engagements between the Minerals Council and Eskom. “On the Eskom side, if I look at the energy-related issues, we’ve had significant engagement with the Eskom team, and I must say we’ve had some tremendous progress made.”

In finding solutions, Baxter mentioned that improving performance was critical for South Africa to compete on an international playing field. “The solution to South Africa’s energy crisis is not Eskom. Eskom is part of the solution. The solution to South Africa’s energy crisis is private sector investment.”

Baxter added that there were many global opportunities presented by the Just Energy Transition.

“There’s a view that 90 000 coal mine workers are going to suddenly be without jobs. The coal mining industry is going to play a significant role in South Africa’s energy evolution over the next 30 years. I don’t think anybody should kid themselves; coal will become a smaller component of the energy mix over time, but it will remain a significant export base and an employer of people in the industry.”

Baxter concluded by highlighting that a lot of work was being done with government to address various issues, including security, getting a world-class cadastral system in place and a better exploration plan to improve the country’s mining industry.

Resolving constraints in the rail sector could unlock many opportunities for South Africa’s mining industry

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INDUSTRY INSIGHT

Eskom’s PLAN to ADDRESS

SA’S ENERGY CRISIS André de Ruyter, group chief executive of Eskom, attended the Joburg Indaba to give a keynote address that focused on the power utility’s turnaround strategies, progress and challenges.

By Dineo Phoshoko André de Ruyter at the Joburg Indaba

D

e Ruyter started by explaining a series of events that led to the current energy crisis facing South Africa. The country’s power challenges started in 1998 when an energy paper recommended the construction of new energy plants. Government at the time disagreed and deferred the recommendations. This resulted in the creation of virtual capacity, which, according to the Eskom chief, is when there is a cutback on maintenance and plants are run harder to create more capacity than the plants can allow. “We deviated from our prescribed maintenance policies in an endeavour to keep the lights on. That was the mantra – keep the lights on no matter what.”

Around 2007, new plants (Kusile and Medupi) started to be built; however, critical setbacks including

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corruption and awarding of irregular contracts led to in-built design errors, resulting in the incompletion of the power plants till today. During a virtual plenary of the National Council of Provinces in May 2022, Deputy President David Mabuza explained that the design errors at both these power stations could take up to five years to fully rectify.

Then, in 2008, South Africa started to experience loadshedding. “There are children today who have never known a day in their lives in South Africa without loadshedding, which is a very scary thought. It’s a very poor reflection on how we do energy planning and energy capacity creation in South Africa,” De Ruyter said.

Ironically, when South Africa hosted the 2010 FIFA World Cup, the country was only getting deeper

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INDUSTRY INSIGHT

into trouble in terms of energy demand and supply.

De Ruyter mentioned that load-shedding possibly could have been avoided had Eskom agreed to sign power purchase agreements with independent power producers (IPPs) in the private sector in 2014. At the time, the agreements were deemed to be too expensive, which is why the power utility did not sign the contracts.

“If we look today, where our alternative is to burn diesel versus even the admittedly higher cost of Bid Window 1 and 2, we would have been significantly less susceptible to load-shedding if we had signed those contracts at the time,” explained De Ruyter.

According to the Eskom head, a report by Meridian Economics demonstrated that South Africa could have eliminated load-shedding if additional capacity were available. The report, titled Resolving the power crisis Part A: Insights from 2021 – SA’s worst load shedding year so far, states, “In summary, we found that an additional 5 GW of renewable capacity on the system in 2021 would have reduced load-shedding by 96.5%.”

conveyor belts. “This was to break the alleged monopoly of a small number of mining companies and open up the Eskom coal market, which was well intentioned – possibly – at the time. But it did open up the space for substantial corruption and fraud in the coal value supply chain,” explained De Ruyter. As a result, Eskom coal power stations were being supplied with discard coal that had a calorific value of between seven and eight, which is of poor quality.

De Ruyter cited geopolitics as indirectly having an impact on the power utility’s coal supply because the coal that was meant to be supplied to Eskom was being exported to Europe. He further added that the latest figures showed a staggering increase in coal exports to Europe. During a webcast of Thungela Resources’ interim results presentation for the period ended 30 June 2022, CFO Deon Smith said, “It’s worth noting that coal exports from RBCT into Europe have increased by about 720% – from half a million tonnes in H1 2021 to 4.1 million tonnes in H1 2022.”

Buying coal To open the Eskom coal market for all coal miners to be able to participate equally, the power utility started to purchase more coal delivered by truck and less on

Finding long-term solutions in the short term In De Ruyter’s first system update presentation in January 2020, he explained that at least 4 GW to 6 GW of new capacity was urgently needed. He explained that

L-R: Sabelo Baroyi, Reuben Maroga, Andre de Ruyter, Gesie Theron and Nicolas Lecomte. All attended the lease signing between Eskom and Mainstream Renewable Power

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INDUSTRY INSIGHT

the new capacity would enable the power utility to take units offline to do the necessary maintenance. To date, the IPP office managed to sign contracts that will supply approximately 500 MW of additional capacity; however, De Ruyter stressed that this was insufficient. “That is not enough; we really need more capacity more quickly if we want to head off further restrictions because the downward trend of the energy availability factor is almost inexplicable unless we get the time to take units off and do the necessary maintenance.”

During his presentation, De Ruyter identified three priority levers to close the capacity gap over the next 12 months. The first was improving Eskom’s plant performance. He detailed that by improving six power stations – Tutuka, Kendal, Duvha, Majuba, Matla and Kusile – approximately 2 200 MW of capacity may be identified within 12 months, depending on system constraints and how quickly funds are released. Second, procuring additional capacity could add approximately 2 295 MW; third, demand-side management could result in an additional 1 450 MW – of which 750 MW can be expected within 18 months.

De Ruyter stressed that while it was important to get new capacity as soon as possible, it was equally important to be mindful that South Africa’s competitiveness in global export markets was at risk mainly due to the carbon content of the country’s exports. “Work done by the National Business Initiative has shown that there is some 46% of South Africa’s exports at risk of carbon border taxes. This includes not only manufactured goods but also agricultural products, as well as mineral exports.” As such, De Ruyter noted that it was important that the country was well prepared in

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this aspect to be globally competitive. “If we don’t, then we really are at a substantial risk of losing access to our key trade partners in terms of exports.”

He also highlighted some key reinforcing challenges contributing to the national utility’s power supply constraints. Among them was old generation capacity.

“We’ve got a system that is designed for a completely different electricity market than what we’ve got today.”

Financial challenges, grid access, as well as crime and corruption were other critical challenges mentioned

by De Ruyter. “Crime and corruption in the coal supply chain really is a massive problem and we are regrettably not getting the necessary support from law enforcement that we would have liked,” he said.

Launching innovative initiatives Not all hope is lost, as Eskom is launching various innovative solutions that will not only add much-needed capacity to the grid but also contribute to environmental sustainability. One of those is leasing land close to power stations with grid access to connect significant renewable energy to the national grid. De Ruyter was excited to announce that the first lease agreement was to be signed on 14 October 2022.

The agreement between Mainstream Renewable Power and Eskom would see a 1 650 hectare site where Mainstream plans to build and operate renewable energy plants. The lease agreement will run for 25 to 30 years. This agreement is one of four similar agreements signed by Eskom that will contribute hundreds of megawatts of renewable energy to the national grid. The land is located next to the Majuba and Tutuka coal-fired power stations in Mpumalanga.

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INDUSTRY INSIGHT

Commenting on the signing of the agreement, Hein Reyneke, GM: Africa at Mainstream, said, “Mainstream is proud to support Eskom in its initiative to expedite the connection of large quantities of much-needed clean, affordable power to the grid as part of the just transition to renewable energy.”

Eskom has allocated 31 000 hectares of land for such projects. “We are targeting these strategic investments to enable greater generation capacity to be added as quickly as possible so that we can unlock more megawatts on to the grid,” said De Ruyter.

When power stations reach the end of their lifespan, Eskom plans to repower decommissioned coal plants with renewable and repurposing facilities. This is another innovative initiative referred to as coal station repurposing and repowering.

The Komati Power Station is a case in point. “We believe that we have a duty to communities [and] people that have supported us for many, many years – and in some cases generations,” said De Ruyter. He further explained that Eskom was currently in advanced discussions with the World Bank to obtain support for the repurposing and repowering of Komati Power Station. He also addressed concerns about shutting down the power station at a time when the country was at the peak of an energy crisis. “The fact of the matter is, we cannot operate Komati legally beyond the end of October. We will be non-compliant with government safety regulations.”

An aspect of re-empowerment is also included in the repurposing and repowering of coal stations, whereby people can obtain training that will make them eligible for employment in the renewable energy sector. “We have obtained grant funding from the Global Energy Alliance for People and Planet (GEAPP). They’ve made available money to us to start a training centre at Komati to train PV and wind technicians so that they

can go and work in the industry,” explained De Ruyter.

He added that various renewable energy associations had highlighted the existence of 16 000 vacancies that cannot be filled because of a lack of trained people in these professions.

In addition to GEAPP, Eskom would also be working with the South African Renewable Energy Technology Centre based at Cape Peninsula University of Technology, to develop the Komati Training Facility.

New capacity on the way South Africa is currently facing a situation where new capacity is needed at the lowest cost but environmental considerations must be taken into account. The wheels are in motion to get urgently needed new capacity on to the grid, with a pipeline of 6 000 MW of registered embedded generation projects. Realistically, 50 GW to 60 GW of renewable capacity needs to be added to the grid by 2030, which will require an investment of R1.2 trillion in infrastructure.

“There is no way that Eskom can do this. We just don’t have the balance sheet. There is no way that the fiscus can do it. The way to do it is for electricity customers and electricity producers to come together and [use] the unbundled Eskom as the market platform, to create this new industry, which I think is a very exciting development going forward.”

De Ruyter proudly mentioned that President Cyril Ramaphosa had intervened and established the National Electricity Crisis Committee where regular meetings take place between the government and Eskom employees to resolve the national energy crisis. “We are trying to work with our colleagues in government to ensure that we can solve this as quickly as possible. Remove the roadblocks, cut through the red tape, and make sure that we can restore energy security,” De Ruyter concluded.

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INDUSTRY INSIGHT

New headquarters for VEGA South Africa

VEGA South Africa – a wholly owned subsidiary of VEGA Grieshaber KG – announced the opening of its new headquarters in Lanseria, Gauteng, on 31 October.

T

he company has more than 60 employees who spent around three days moving to the new facility in stages. This was in an effort to minimise disruptions in the midst of a recordsetting year for sales and shipping of its level-sensing and other measurement products.

VEGA South Africa relocated approximately 20 km north to Lanseria after more than two decades collectively in its Ruimsig home office and consequently its Honeydew head office, which occupied a mere 1 000 m2. MD Frikkie Streicher explains that the steady growth the company experienced over the past six years demanded expansion to complement the long-term vision for local manufacturing and assembly. The current facility and land space allow for expansion as and when the need arises.

“We can double our staff complement and still be comfortable in our current building,” he says. The facility creates a greater scope for providing insightful tailor-made product and industry training. The new building also enabled VEGA South Africa to increase its stockholding. “We really intend to keep our fast-moving goods stock up so we can fulfil orders within a day or two,” says Streicher.

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Energy-efficient building with unique design The 6 000 m2 head office and warehouse is an architectural masterpiece incorporating a solar system capable of meeting 100% of VEGA South Africa’s energy demand during daytime hours, as well as a greywater harvesting system that makes use of VEGA level sensors and controllers. Isabel Grieshaber, global managing partner, explains the unique features such as the ‘wallless’ design making use of large, curved windows to optimise sunlight retention inside the building – thus saving more on energy costs.

The interior design boasts large open spaces designed to be employee-centric, incorporating a gymnasium, bar, gaming and pause areas, and a kitchen that uses vegetables grown on-site. The outdoor braai and pizza oven further strengthen oneness and solidify the values of curiosity, humanity, connectivity and simplicity.

“They [the staff] spend a large portion of their time at the office. It should not feel like a job but like a second home… the Home of Values,” concludes Grieshaber.

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THE SUSTAINABILITY ISSUE | 2022

MENT & FINANCE INDUSTRY INSIGHT

Transforming & strengthening

India-based Hindustan Zinc has maintained a strong legacy of delivery at a higher rate and has been successfully giving back to the nation by being the number one taxpayer in Rajasthan state.

It contributes 1.8% of the state’s GDP.

O

ne of the key contributors in the company’s growth story includes a robust reserve and resource base with over 25 years of mine life, high safety standards, environmentally friendly sustainable operations, and using the best technology.

Where it all started Hindustan Zinc was set up with a vison of being a key protagonist in the country’s growth, with the humble beginning of commissioning a 18 000 tonnes per annum (tpa) smelter at Debari in 1966.

Over the next 10 years, the company became profitable and started to produce sufficient zinc in India by undertaking various growth strategies and expansion plans.

The acquisition of Hindustan Zinc Limited by Sterlite Group (now known as Vedanta Group) took place in 2002. The company generated astonishing results instantly, as it registered 113.8% of profit within a year. In 2005, it accelerated its growth through various expansions and commissions to prepare for its journey to become one of the world’s largest and most admired zinc-lead-silver companies. In the subsequent years, through various expansion and debottlenecking initiatives, Hindustan Zinc became the world’s second largest integrated zinc producer and recently created a benchmark within the mining industry as it crossed 1 million tonnes of zinc-lead MIC (metal in concentrate) – a target envisaged by the company.

The quality of the products produced by Hindustan Zinc is an industry standard, which has garnered the company approximately 80% market share in India’s primary zinc

market. The company is the world’s sixth largest silver producer and has started with 100% auction sales of silver by leveraging a digital platform.

Achieving SDGs Hindustan Zinc is effectively working towards enhancing its business model while also being conscious about the environment by embarking on an ambitious journey to achieve its Sustainable Development Goals 2025. Their motto is to transform the planet through ‘Zero Harm, Zero Waste, Zero Discharge’.

From currently being 2.41 times water-positive, the company aims to be 5 times water-positive in the future. Furthermore, Hindustan Zinc has recently set a new benchmark as it becomes the first mining company in India to introduce electric vehicles in underground mines and has received board approval to source 200 MW in green energy for its operations.

Strong partnerships are key when working with communities to achieve long-term social, environmental and economic outcomes. These have led to the company transforming the lives of 1.4 million people across 234 villages in and around its operations. In the last five years, Hindustan Zinc has contributed Rs808.52Cr (R1.67 billion) for community development through numerous flagship programmes in the domains of quality education, woman empowerment, childcare and sustainable livelihoods.

As a socially and environmentally responsible corporate, Hindustan Zinc intends to continue its efforts towards the goal of nation-building, taking forward the vision of Vedanta Group – ‘Transforming for Good’.

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LEGAL

Can a mining company

get ‘SLAPP-ed’?

The short answer is… probably not. When we think about ‘SLAPP’, or Strategic Litigation Against Public Participation, we think about big companies using their considerable resources to institute litigious proceedings, seeking exorbitant amounts of damages from persons who, for example, criticised their mining operations. By Muhammed Khan*

B

Muhammed has extensive experience advising clients on their rights and obligations under several pieces of legislation specifically impacting the mining and petroleum industries in South Africa

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ig companies have a goal not to recover the damages but rather to intimidate and silence such persons, which could include civil society, the public, and media.

‘SLAPP’ was a novel defence raised by defendants who were being sued by two related mining companies (and certain directors thereof ) for defamation in the matter of Mineral Sands Resources (Pty) Ltd v Reddell.

The court described SLAPP in great detail and stated, “Essentially, its [SLAPP] aim is to silence those challenging powerful corporates on issues of public concern. In essence, the main purpose of the suit is to punish or retaliate against citizens who have spoken out against the plaintiffs... The signature elements of SLAPP cases are the use of the legal system, usually disguised as an ordinary civil claim, designed to discourage others from speaking on issues of public importance and exploiting the inequalities of finances and human resources available to large corporations compared to the targets…”.

The court held that the defamation suit was not genuine and in good faith but merely a pretext with the purpose to silence opponents and critics. The court further recognised that the SLAPP suit defence constituted a valid defence in South African law against the defamation suit.

Considering the description of SLAPP, it is highly unlikely that a mining company could fall victim to

it. However, this does not mean that abuses of legal process cannot be used against mining companies.

Mining in South Africa is highly regulated and requires numerous licences, authorisations and other similar regulatory approvals to lawfully undertake. To mine in South Africa, a company needs, at a minimum, the following: 1. A mining right issued in terms of the Mineral and Petroleum Resources Development Act (No. 28 of 2002 [MPRDA]).

2. An environmental authorisation issued in terms of the National Environmental Management Act (No. 107 of 1998 [NEMA]).

3. A water use licence issued in terms of the National Water Act (No. 36 of 1998 [NWA]).

The MPRDA, NEMA and NWA each make provision for appeals against decisions taken by the relevant regulator to issue licences under the relevant Act. For example, the issuing of a mining right can be appealed under section 96 of the MPRDA, the issuing of an environmental authorisation (EA) can be appealed under section 43 of NEMA, and the issuing of a water use licence (WUL) can be appealed under section 148 of the NWA. The appeal in terms of section 96 of the MPRDA does not automatically suspend the issuing of the mining right and the holder (despite the lodgment of the appeal) could theoretically still mine under the mining right. However, a company does not only require

THE SUSTAINABILITY ISSUE | 2022

LEGAL

To further exacerbate matters, while both the MPRDA and NEMA provide for time periods for the determination of their respective appeals, the time periods are rarely adhered to by certain of the regulators and the determination of the appeal usually takes a significant amount of time.

Furthermore, the NWA has no time periods for the determination of an appeal in terms of section 148 of the NWA. In the lodging of appeals, certain interested groups such as civil society but even competing mining companies could potentially seek to halt mining operations by lodging frivolous appeals. This would likely not be a SLAPP but more of a SLAM (Strategic Litigation Against Mining).

a mining right to mine. It would still likely require an EA and WUL. Considering this, an appeal lodged against the issuing of an EA or a WUL has the effect of immediately/automatically suspending the relevant EA or WUL. See where this is going…

Once an appeal against the issuing of an EA or WUL has been lodged, the holder would no longer be able to undertake the listed activities or water uses authorised thereunder (because of the immediate/ automatic suspension) and will not be able to commence mining.

For a major mining company, the hold placed on one mine or operation may not have a devastating impact. However, for a junior miner with a single mining operation, such a stoppage could have potentially devastating and dire consequences, not only for the junior miner but for its employees and the surrounding community, which would otherwise benefit from the mining (through the fulfilment of social and labour obligations).

Both NEMA and the NWA provide that the respective Minister (responsible for the administration of the Act) may direct that the relevant authorisation or licence is not suspended pending the determination of the relevant lodged appeal. However, there is no prescribed method or time frame to obtain the relevant Minister’s upliftment.

So, what can be done?

Should mining companies be lobbying lawmakers for legislative reform? In typical legislative proceedings before a court, if a party loses a matter, they are generally ordered to pay the legal costs of the other litigating party (usually on a predetermined scale).

A similar reform could be introduced to dissuade frivolous appeals from being lodged, particularly where they have the effect of automatically suspending the relevant licence or authorisation.

Additionally, the applicable legislative provisions could better define the way in which an automatic suspension is uplifted following the lodging of an appeal.

Ironically, this type of legislative reform to include the potential of having an adverse cost order could similarly be used by companies to intimidate or prevent the lodgement of appeals (which is the purpose of a SLAPP).

Whether it’s a SLAPP or a SLAM, legislative measures should be introduced to dissuade the lodging of frivolous appeals. However, should a frivolous appeal still be lodged, such appeal should be vehemently opposed, not only because it may have very serious ramifications for a mining company, but also to curb any such similar conduct in the future. *Muhammed Khan is a director in the Mining and Environmental Law Department of Nupen Staude de Vries Incorporated (NSDV).

25

SUSTAINABILITY

Sustainable finance and its role in RESPONSIBLE MINING Many aspects contribute to a sustainable mining industry. Among those are sustainable financing solutions that play a crucial role in enabling mines to meet and maintain their sustainability targets across operations. In an interview with Dineo Phoshoko, Vusi Mpofu, sector lead: Mining & Chemicals at Nedbank CIB, discusses sustainable finance and its contribution to responsible mining.

What is meant by sustainable financing in the context of mining?

VM Sustainability is an important principle in mining because mining must be done in a sustainable manner that gives due consideration to communities and the environment. Sustainable finance is put in place to support a company’s journey to net zero. We look to support green projects in renewable energy, water conservation and projects that enhance the operational efficiency of a particular enterprise. Sustainable finance is a funding option for miners that are on a glide path towards a cleaner and more environmentally aware world going forward.

What are some of the global trends in terms of sustainable financing solutions in the mining industry?

The top global companies have all made public commitments on how to reduce emissions and approach carbon neutrality, with the key dates being 2030 and 2050. Reporting on key environmental initiatives has improved over time; the sustainability reports that are now being published have become more standardised and, in some instances, carry independent assurance.

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Vusi has 19 years’ post-articles experience in financial services, specialising in the oil and gas as well as mining and chemicals sectors, among others

Stakeholders – be it investors, regulators or lenders – increasingly require operations to be very clear on what their sustainability agendas are. Sustainable financing becomes an enabler and facilitator in this decarbonisation journey that most global corporates are embracing and taking forward.

Entities that are not willing to subscribe to this way of thinking will struggle to access capital. Similarly, in time, they will face difficulties in accessing

THE SUSTAINABILITY ISSUE | 2022

SUSTAINABILITY broader markets because of their non-compliance with what are becoming generally accepted global standards and best practices in how to mine in a way that respects the environment, communities and is progressive in delivering a cleaner environment for generations to come.

Can you provide a few examples of sustainable financing solutions offered by Nedbank CIB for the mining industry?

Our sustainable finance solutions fall within the three broad pillars of lending, arranging and advisory.

One part is the debt that we provide to entities that qualify for sustainable finance. From a lending perspective, we’d be looking at green loans, sustainability-linked transition loans, or even sustainability-linked acquisition funding, which would all fall within the lending element.

In the middle, we’d have an arranging element, where Nedbank plays the role of a sustainability structure or coordinator. All the arrangements would be in line with the solutions offered from green bonds, sustainability-linked notes and transition sustainable bonds.

The third part is the advisory element, which is probably one of the most important ones – because when we talk about sustainable finance, it’s a partnership. A successful funding solution requires close collaboration between the bank and clients, hence the importance of a partnership approach. In working with the client, we are able to come up with an ESG framework for the entity in its entirety.

What are the qualifying criteria for an organisation to be considered for sustainable financing?

The best way to answer that is with reference to the two broad categories of sustainable finance solutions: • Use of proceeds: This would be in the case where a mine is able to evidence that they require finance for a green project. If a company is developing a renewable energy project, we can directly say that the loan that has been extended is to fund a green project. That would be the qualifying criteria to access sustainable finance in that instance. A use of proceeds solution is exclusively applied to finance or refinance eligible projects such as renewable energy, water conservation, emissions reduction and the like.

• Sustainability-linked note or loan: This solution is applied to an entity – in this case a mine – with a recognisable ESG framework. What would be core to that framework are the sustainability

performance targets committed to by that particular entity. For instance, a mine will commit to more efficient water usage or reducing their carbon footprint. The sustainability-linked note would then align the financial terms of the funding extended to the company to the achievement of those sustainability performance targets.

How are small, local businesses involved in the mining value and supply chain accommodated when it comes to sustainable financing?

At this point, the sustainable financing solution would really apply to projects of scale. There are solutions that would be offered to support smallscale renewable projects but, from a corporate and investment perspective, we are looking at the megaprojects where there is greater impact in terms of decarbonisation or the water efficiency that is achieved by a project.

Part of the funding that we do provide would then be applied by the miners themselves to have some enterprise development solutions in place for their smaller suppliers and the communities in which they operate.

In your view, what are some of the top sustainability-related projects most likely to be considered for sustainable financing in the mining industry?

Given where South Africa is, the embedded energy projects are obviously the buzz. They solve for a couple of issues. The greenhouse gas emissions reduction is part of the overall ESG framework that a mining company would be looking to achieve, which helps them reduce their carbon footprint. There are a number of projects in the renewable energy space currently attracting sustainable finance solutions. The second element of those renewable energy projects is that they help the miners secure stability of supply. We must appreciate that the generated capacity of the embedded-generation energy projects is not at a level that can sustain your mega-scale operations, but plays an important role in South Africa’s overall energy mix.

The next set of projects entails those that talk to water conservation. South Africa is a water-scarce country and a significant component of responsible mining is the efficient use of water through conservation measures, recycling and minimising levels of pollution. Projects that are applied to these endeavours within the mining space would attract sustainable finance solutions.

Also in the reckoning are projects that look at waste reduction. All this again fits into the environment and conservation element, which

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and South African society as a whole. We look at socio-economic advancement and empowerment in general. These come in as sustainability performance targets that are measured in the assessment of whether we are going to put some sustainable finance into a particular entity.

would be attractive for sustainable finance solutions. This talks to the proceeds elements of sustainable financing solutions that we would offer. When talking about sustainability-linked loans, we’d be looking at other metrics, such as the gender equality evolution within that particular entity, encompassing the company’s commitment to making the workplace more diverse and representative of local communities

Is there anything you would like to add?

Sustainable finance is one of the key enablers and facilitators of the evolution of how we do business.

As the Green Bank, we are very proud to support entities that can evidence that they conduct their business in a responsible fashion. The sustainable finance solutions we offer are an example of how the bank is keenly aware of prevailing global imperatives as related to climate change. It is important that – in aligning with companies on progressive decarbonisation glide paths – we evolve in tune with our customers and provide them with solutions that can better their businesses.

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Jet-setting from sustainability

to regeneration

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he JET focuses on switching our coal-based energy mix to renewables (US$7.8 billion [R132.6 billion]), and also aims to improve the generation, transmission and distribution of energy, namely green hydrogen ($200 million [R3.4 billion]) and electric batteries in SA’s automotive cluster ($700 million [R11.9 billion]).

Historically, sustainability has become associated with climate change, particularly decarbonisation and net-zero emissions. However, it is much deeper and broader than that.

While it is important to focus on the attitudes, behaviours and culture that inform demands for goods and services, it is equally important to drive focus on reusing, recycling and regenerating production value chain inputs and outputs. Is it possible that regeneration is the ‘new green’?

If so, this allows the mining sector to respond effectively to three key challenges: 1. The JET, use of renewable and greener technology The Minerals Council South Africa estimates that the country’s mining sector utilises 30% of the nation’s electricity.

The lack of energy security in South Africa has jeopardised mining productivity, revenue and employment growth, and has also emphasised the importance of power for ongoing on-site safety. The requirement for employees to be able to move between working areas underground, and receive adequate ventilation is critical to sustainable operations.

These factors, among others, have placed the industry at the forefront of the JET agenda, with mining companies currently funding and establishing 6 500 MW in renewable energy projects. What’s more, these sector players have the opportunity to incorporate green power generation in their mine closure strategies, to the benefit of future communities.

2. Regeneration of biodiversity and ecosystems, particularly those related to water purification and treatment The revised, draft White Paper on the Conservation and Sustainable use of South Africa’s Biodiversity is now open for commentary. The paper highlights that “South Africa’s

Recently at the COP27 conference in Sharm El-Sheikh, Egypt, South Africa won international acclaim and partial funding for its Just Energy Transition (JET) plan. By Spencer Eckstein* biodiversity provides an important basis for economic growth and development, and is critical to people’s livelihoods.” Many would argue that there is already sufficient related legislation in place; however, the loss of biodiversity is still rife across the country. The reality is that the mining sector is a primary contributor to habitat loss, soil damage and water pollution through excavation, mine effluent and waste. As such, the industry needs to lead the biodiversity sector’s transformation, prioritising the integrity of specific species and ecosystems in areas of operation, and integrating these aspects into larger business plans.

3. Building climate-change-resilient local communities around mining operations Sustainable activity and community empowerment are inextricably linked. The World Bank’s 2022 South Africa Country Climate and Development Report reiterates that a ‘triple transition’ is critical to combatting poverty and promoting prosperity sustainably. By lowering carbon emissions, mining companies can ensure that water and air pollution do not negatively impact surrounding communities or their livelihoods. Furthermore, if South Africa is to become more resilient, the effects of climate change on the country’s agriculture, infrastructure and people need to be mitigated. Extreme weather events are also detrimental to local economies, highlighting the need for sustainable land management and ecosystem restoration.

While the globe grapples with climate change and sustainability, the mining sector is uniquely positioned to lead the transition, particularly with regard to the green hydrogen economy. The old binaries of economic growth or going green are no longer relevant, both are needed. *Spencer Eckstein is the Director of Business Development at Ukwazi.

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Tyre recycling’s contribution to sustainable mining

The facility can recycle OTR tyres used in mining

Kal Tire’s off-theroad (OTR) tyre recycling facility in Antofagasta, Chile, has proven that tyre recycling is a major factor in ESG mining due to its largely positive impacts on the environment, mine host communities and the economy. By Dineo Phoshoko

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ocated in the heart of Chile’s mining industry, the 20 000 m2 Antofagasta plant consists of an area to inventory scrap tyres, cutters to reduce them in size, two reactors, oil storage tanks and carbon storage. The plant can recycle approximately 1 600 ultra-large mining tyres

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per annum.

Each tyre typically weighs about 4.5 tonnes.

“The Chilean plant has been constructed with two chambers (or reactors).

The annual capacity of the plant is approximately 7 500 tonnes,” explains John Martin, vice president Southern Africa: Mining Tire Group, Kal Tire.

“These tyres get sized down into smaller pieces and then get put into each chamber, which then gets processed,” he adds. Each chamber can handle 20 tonnes. “The design of the plant is scalable, so it can work with one chamber, or it can work with additional chambers depending on the demand and depending on the volume of product or feedstock that goes into the plant.” For example, it can go to 15 000 tonnes per annum with four chambers or 22 000 tonnes per annum with six chambers. “That all depends on agreements with buyers and offtake

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John Martin has extensive experience in the mining and metals industry

agreements with those companies that are interested in taking the products,” he explains.

According to Martin, the facility uses a thermal conversion process, which can process any tyre that can be returned to its original composition. “Up to a certain size, we have to start reducing the size of the tyre pieces that you put into the chamber. The smaller the pieces, the quicker the process takes to turn the tyre into its original product.”

Martin, however, cautions against introducing other rubber products such as truck or car tyres, as they may contain other products such as nylon, which could potentially affect the quality of the products derived from the recycling process. “There are no limitations essentially on what tyres one can process in this chamber; it simply affects the quality of a product that comes out to a lesser or greater degree depending on what you put in. We found that with the mining tyres, we are getting a very good quality of product coming out of the process as designed,” Martin says.

Saving the environment through tyre recycling Martin explains that tyre recycling touches on various aspects when it comes to sustainability in the mining industry, adding that Kal Tire’s mining tyre recycling looks at sustainability targets and requirements articulated in ESG (environmental, social and governance). According to Martin, the recycling process falls within the environmental part of ESG. “It addresses the targets that include carbon footprint and greenhouse gas emissions, as well as the muchneeded environmental stewardship.”

To manage and dispose of mine waste tyres, some mines have resorted to burying mine waste tyres or having them sent to a storage facility where they were stockpiled. Neither of these methods are sustainable in the long term and are potentially harmful to the environment. In September 2022, NSW Environment Protection Authority (EPA), the primary environmental regulator for New South Wales in Australia, issued a fine to a refinery for stockpiling approximately 74 tonnes of waste tyres on its premises. In a statement released, Stephen Beaman executive director: Regulatory Operations Metro, NSW EPA, said stockpiled tyres were a potential fire hazard and strict conditions applied to their storage.

“Once alight, rubber tyres are extremely difficult to extinguish, generating a large amount of heat and smoke,” Beaman said.

Mpanyana Lucas Mahlangu submitted a research thesis for a Master of Arts in Environmental Management at the University of South Africa. Titled ‘Waste tyre management problems in South Africa and the possible opportunities that can be created through the recycling thereof’, the paper mentions some of the environmental impacts of burning tyres. These include air pollution caused by carbon dioxide that is produced by burnt tyres. Referring to water pollution, in his thesis, Mahlangu writes, “Tyre combustion causes pyrolysis of the rubber, resulting in oily decomposition waste. The oily discharge can flow into nearby streams, ditches and waterways, or can leach into the groundwater. In cases where water is used to put out the fire, chemical compounds like aromatic liquids and paraffin may be carried by the water.” The thesis

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SUSTAINABILITY also notes the risk of soil pollution that can occur when residues remain on the soil after a fire. Martin highlights that long-term sustainable tyre recycling needs to be done ethically and that the Chile recycling facility is one of the ways to go about it.

Recycling process and the circular economy Martin explains that, upon arrival at the facility, the tyres are recorded in terms of their weight, and they go over a weighbridge. Serial numbers are also recorded.

Processing of such information is done to provide documented evidence back to the mine companies who own the tyres to provide chain of custody evidence that the tyre has been recycled ethically.

Once processed, the tyres are then cut into pieces and put into the chamber where they are processed for approximately 14-16 hours. Times for heating and cooling off, as well as packing and unpacking the chambers, are included in this timing. “The plant processes about 20 tonnes a day, so each chamber is loaded and processed once in two days – 24 hours to essentially load the chamber, process the tyres and obviously unload it at the end of the process,” explains Martin.

In his paper, Mahlangu highlights that waste tyres can potentially lead to wealth and job creation opportunities. “It is firmly believed that waste tyres have an inherent value that can be enhanced commercially to yield viable products and by-products,” the paper states. Cement kilns, electricity generating utilities, brickmaking and boiler systems are some of the markets that could benefit from waste tyres.

However, recycling of these tyres is a costly service.

While downstream opportunities are possible, they are not guaranteed, and it requires great effort to ensure they are suitable for various applications. Due to the high capital investment in the infrastructure and technology to build and operate a mining tyre recycling facility, there isn’t enough value in downstream products that come from recycling at this moment to cover the cost. As such, there is a cost to owners or importers of scrap tyres to recycle them.

Martin adds that products that are generated out of the thermal conversion process are fully subscribed to the circular economy. “Everything can get reintroduced into the economy in some form and reused in many different applications,” he says.

The three main products that are derived from Kal Tire’s tyre recycling facility and get reintroduced back into the economy are heavy fuel oil, carbon black, steel and synthetic gas. Uses include the following: • Oil can be used in many applications such as generators and other machinery. It can also be refined into alternative fuel for reuse in mine site equipment.

• Carbon black can be used in batteries, pigments,

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paints, plastics and new rubber and tyre production.

• Synthetic gases are fed back into the reactor and make for a self-fuelling, low-carbon output solution.

• High-quality tensile steel found in OTR tyres can be recycled for a variety of purposes. Steel is easily tradeable, therefore there is a huge demand for it in the market.

“This is genuine support of a circular economy, [in] that we take a waste product and we transform it back into its original component so that it can be reintroduced into the economy, hence reducing waste and reliance on new products – and essentially reducing carbon footprint,” says Martin.

Waste tyre recycling in South Africa Currently, the Chilean tyre recycling facility is the only one of its kind operating in the world. It is purposebuilt to accommodate ultra-large mining tyres. “There is no doubt that there are other pyrolysis solutions around the world, but there is nothing that we know of at the moment that accommodates these very large tyres and the bulk handling of these massive mining tyres,” explains Martin.

‘A Benchmark Study of Waste Tyre Recycling in South Africa to European Union Practice’ revealed that South Africa stands to benefit from waste recycling facilities.

Authored by Paul Mativenga, Jan Pretorius and Rebecca Sebola, the study states that job creation and assisting disadvantaged communities in South Africa is a “key aspect for third-party waste tyre recycling companies to get approved”.

The Recycling and Economic Development Initiative of South Africa (Redisa) used to be responsible for the Industry Waste Tyre Management Plan (IIWTMP).

According to the study, the plan not only supported and promoted tyre recycling, but it also provided collection and depot infrastructure needed to collect waste tyres in South Africa to have them delivered to approved recyclers. In 2017, the then Minister of Environmental Affairs, Dr Edna Molewa, announced the withdrawal of the IIWTMP. This ultimately led to the withdrawal of the Redisa plan and the promulgation of the Waste Tyre Regulations.

During a portfolio committee meeting of the Department of Forestry, Fisheries and the Environment (DFFE), Obed Baloyi, acting head: Waste Bureau at the DFFE, explained that since the withdrawal of the Redisa plan, the Waste Bureau was mandated to manage waste tyres temporarily until a new Industry Waste Management Plan for waste tyres is approved. The Waste Bureau has been responsible for the management of waste tyres since 1 October 2017. Baloyi explained that the Bureau is mainly responsible for servicing tyre dealers and other collection points where waste tyres are generated.

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It is also involved in developing processing capacity (tyre-derived fuel, crumbing, pyrolysis), and supplying processors with waste tyres.

The Waste Bureau being responsible for waste tyre management is a short-term solution until the Section 29 Industry Waste Management Plan (IndWMP) is finalised. According to Baloyi, once finalised, the Section 29 IndWMP will have the following objectives: • support the establishment of a viable waste tyre processing sector in South Africa that will reduce the negative environmental impacts of waste tyres and support enterprise development and job creation in a circular economy • waste tyre processing capacity of South Africa • develop monitoring systems to enable assessment of progress against targets.

The study also highlights that waste processing is an opportunity for community engagement, job creation

A view of Kal Tire’s Chile recycling facility

and new industrial systems.

As such, a tyre recycling facility like the Chilean one could have multiple benefits for South Africa across various sectors in addition to the mining sector.

Martin explains that Kal Tire is open to engaging with stakeholders in the South African mining environment to build and operate a similar facility of this kind. The plant’s modular and scalable design makes it possible for it to be built just about anywhere. Ultimately, waste tyre recycling addresses various critical ESG-related challenges faced by various stakeholders in the mining value chain.

“It is a critical issue that society, government and the mining industry need to address as a matter of urgency,” concludes Martin.

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Academia at the forefront of R&I IN MINING Research, innovation and development have proved to be critical in the development of technologies to improve efficiencies, productivity levels and safety in the mining industry. Academic institutions have become key to unlocking various technologies to benefit the industry. By Dineo Phoshoko

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he Wits Mining Institute (WMI) is an example of an institution heavily engaged in research and innovation involved in the development of technologies in mining. In an exclusive interview with Inside Mining, Professor Glen Nwaila, director at the WMI, and Ahsan Mahboob, head: Sibanye-Stillwater Digital Mining (DigiMine) laboratory at the WMI, discuss how academia contributes to innovation and technological development in the mining industry.

How innovation enables technological development According to Nwaila, when it comes to developing technologies for the mining industry, it is important to focus more on research and innovation (R&I) rather than research and development (R&D). He explains that most mining houses previously had R&D divisions, but many have since closed during the 2000s. “Universities are now the central hubs where fundamental knowledge that used to be archived in dissertations is now being converted into layouts that may lead to prototypes and pilot-scale type of initiatives,” says Nwaila. He adds that universities have a fundamental role in applied research; however, moving to the next stage of prototyping and development requires partners mainly because of the high costs that are involved. “We do research, we innovate and then we need a third partner that deals with the development.”

The WMI includes two facilities that were established specifically for testing technology – the Nick Holland

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Glen has previously worked in the mining and consulting industries, having led teams of mining professionals

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TECHNOLOGY tunnel and Sibanye-Stillwater’s intelligent boardroom at DigiMine. Working closely with technology partners, these facilities enable the development and testing of systems to see if they can perform under highpressure conditions. Ramjack, Leica Geosystems and Schauenburg Systems are some of the companies that have collaborated with the WMI to develop innovative technologies for the mining industry.

With a focus on improving health and safety and increasing productivity, Ramjack’s innovative solutions

include the Ramjack Remote Operations Centre, which is a full support and knowledge transfer concept providing both on-site and remote assistance to mine resources.

Another solution is the Ramjack Artificial Intelligence Lab, a big data analytics centre created to support real-time mining decisions with rapid analytics of large, relevant data sets.

Leica Geosystems specialises in laser scanners, serving various industries, including mining. Its offering includes 3D laser scanners, an autonomous laser scanning module, and cloud processing software that processes data scanned using the sensors.

Schauenburg Systems offers solutions that enable the mining industry to collect data and use it for decisionmaking and training. SmartMine IoT is an internet of things platform that harnesses the power of distributed cluster technologies and secured data streaming. In addition, Schauenburg Systems also has occupational health and safety solutions, as well as lamp room management solutions.

Ahsan holds a master’s degree in remote sensing and GIS

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Global technology trends for mining Technology is ever-changing, with different trends taking the fore from time to time. Technologies in the mining industry are no different, with varying global trends. Data, equipment and 21st-century ‘wireless dust’ are some of the global trends Nwaila mentions.

He explains that data has become an essential part of the way organisations conduct business. There is currently a big push by mine companies to try to find the best way to process data to get real-time information to make decisions on the spot. “There is a huge investment on the issue of data to look at what value it brings to the business – what sort of competitive advantage companies have.”

Mahbood explains, “Currently, if you look at the mining sector, we are producing a lot of data but, in reality, we are using less than 1% of the data for decisionmaking.” Although most of the data is not being used for decision-making, Mahboob notes that not all the data can be used as and when it becomes available. “We need to find a way where we can park data for some time, and then, whenever it is required, we can pull the data for advanced decision-making.”

Regarding equipment, Nwaila mentions that the design focus used to be on robots that could perform tasks without human assistance with the help of 4IR. “People have noticed that this is not really working.

We need technology that is built and tied to the 21st century skills that people have and suitable for mining

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environments. So instead of using machines to become autonomous in the absence of human beings, the machines are going to be tied into human activity.” This has resulted in gamification and virtual reality where people get to learn and experience mining through playing a game.

“There’s a lot of investment that was made to protect mine workers against dust, but at the same time will open a new gap for wireless dust. As you introduce new technology, this technology is radioactive. Any form of wireless communication has some sort of radiation emission that you have to be subjected to,” explains Nwaila.

Some technologies have short-term effects with minimal side effects, while others could have long-term effects with more severe consequences. Nwaila notes that this aspect was missed in the process of digitalising mines. “The more wired and autonomous we are, the more we use machines that we can control from the surface; it means also that the radiation spectrum within particular areas is going to be high.”

It is therefore going to be critical to ensure that baseline levels of radiation whenever equipment is being designed are taken into account to avoid similar consequences of the silica dust mineworkers used to be exposed to. “If you look at the past, at those working in the mining industry during the 1980s or 1990s, after two or three decades they had cases because they were affected by silica dust. We want to avoid [the same] situation in the next two to three decades, so we need to work on it now,” says Mahboob.

Challenges with technological innovation and development It is important also to acknowledge the challenges that prohibit South Africa’s mining industry from fully embracing the advantages technology has to offer. R&D and R&I are very expensive. “It doesn’t matter whether

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it’s done by the government or the private sector,” Nwaila notes, adding that some research projects have been put on hold due to a lack of funds. He explains that even with support from industry partners who fund research projects, another challenge arises where there’s an expectation that if a company funds a university, the institution should be developing projects that can be deployed in the industry immediately after the research is complete. “It means you are skipping a [crucial] step of prototyping and testing. You are moving from research to implementation, and when things fail, then they say that research is not useful because of failed deliverables.

I think there’s a minimal investment that is being paid with high expectations in limited or sometimes unrealistic timeframes.”

Mining decisions that involve technology are expensive and can be risky, as they involve human life and, very often, irreversible environmental damage.

This creates an environment where industry players tend to shy away from research, innovation and implementation because they don’t want to be labelled as having experimented with people’s lives. “Mining decisions involve human life. You wouldn’t want to take a technology that is going to put humans in trouble,” Nwaila explains.

Looking at legislation, Nwaila shares an experience where a coal institution rejected a proposal because the technology mentioned in the proposal had never been tested in a coal mine; therefore, it would be deemed unlawful to implement it in the coal operation.

UAVs (drones) are another example of a technology that would be considered unlawful because it is not recognised by South Africa’s mining legislation. “There is no government position on the use of UAVs in an underground type of setting, especially where you have flammable types of gases,” says Nwaila. The government is falling short of playing a leading role in terms of policy position on technology and key strategic areas.

Mahboob highlights another important challenge relating to the protection of intellectual property (IP). “I think when it comes to the mining industry, particularly saving lives and making the mine safer for workers, we need to relook at the IP side of the technology. Trust, openness and transparency are very important,” he says. Nwaila adds that institutions need to move away from patenting just an idea that does not have any proven concept and move towards patenting the functionalities of proposed ideas.

Final thoughts Nwaila strongly believes that technology can contribute to a functional, productive and sustainable mining industry. “I think it’s quite critical for universities and companies to recognise that R&D is quite relevant because this is where technology innovation begins,” he concludes.

Institutes such as the WMI play a critical role to test technologies to see if they are suitable to not only the needs of the mining industry but South Africa’s demographics as well. “That is why we need these R&I organisations like the WMI, where you can test the technologies, where you can build different scenarios, and where you can play with what-if scenarios. After making sure that the technology or the research is ready to implement, then – through relevant organisations like government – you can offer the technology to the industry,” Mahboob concludes.

READ THE FULL STORY HERE https://miningnews.co.za/ 2022/11/29/academia-at-the-forefrontof-ri-in-mining

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Exploring CONTINUOUS SURFACE MINING

ALTERNATIVE technology

The Vermeer T1255III-TL at Letšeng Diamonds on the day of its arrival after assembly was completed

Letšeng Diamond Mine in Lesotho conducted a trial to find an alternative technology that could result in reduced damage to the diamonds, ultimately recovering higher-value gems. Vermeer Equipment Suppliers’ T1255IIITL surface miner was used as part of a series ccording to Jaco product size distribution to the plant of trials.

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Houman, senior manager: Technical and Projects, Gem Diamonds Technical Services, using a surface miner showed potential against the conventional drill and blast process, which was followed by a primary crusher. “The surface miner gives us the opportunity to effectively mine from the pit and produce a product that is similar to those two steps of drill and blast and primary crushing. From that perspective, we’re able to have a process that is potentially more cost-effective, and a process that’s more complementary to the rest of our diamond processing flowsheet,” he says.

Trial outcomes The trial took place from June 2022 to September 2022 and had the following outcomes: • environmentally friendly • replacement of primary drill and blast, as well as secondary pecking activities • more cost-effective from a cost-per-tonne basis • more stable processing due to greater consistency in

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• more productivity and efficiency.

The trial period initially started on a single shift basis and then moved to a 24-hour basis. “The effective productivity that we had planned for in our overall works programme for the production period was around 66% effective cutting time,” Houman says. We exceeded that target with the deployment of the surface miner. He adds that the instantaneous cutting rate was within the expected target. “Overall productivity in the trial was certainly in line with our expectations.”

Although the machine was a new one on-site, no mechanical issues were experienced, and production was not affected. “The machine performed very well mechanically,” says Houman. He adds that short-term challenges that did arise were easy to overcome such as the inclusion of a dust suppression or extraction system in the full production unit. The minor challenges encountered during the trial provided key considerations that could lead to increased efficiency when taken into account. They include mining/cutting through different geological domains with varying

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The Vermeer T1255III-TL in operation at Letšeng Diamonds during the trial

A new Vermeer T1255III-TL with integrated vacuum dust suppression system and 3D GPS automation

hardness, working on existing benches and in close proximity to bench crests, and mine planning among others. “If you are putting this into a mine where you are starting from scratch, I think it’s a lot easier putting a surface miner in there and reaping success earlier,” says Houman.

Machine features and technical support The Vermeer T1255IIITL Single Side Direct Drive is powered by a CAT C18 Tier 3 diesel engine. The mining drum on the machine has a cutting width of 3.70 m.

Frank Beerthuis, MD at Vermeer Equipment Suppliers, explains that the unique features of the machine include the full hydrostatic direct drive of the mining drum, which maximises the energy being transferred to the GETs and thus increases productivity. Another feature is the elimination of wear items in the driveline such as chains and sprockets allowing for a significant reduction of opex.

“Another unique feature is the tilt function of the mining drum. This patented design feature allows for automated three-dimensional cutting of a smooth mining floor while cutting direction, cutting depth and slope angle are being controlled through GPS automation,” explains Beerthuis. The machine also has a down-cut design that reduces the re-grind of mined rock. “As a result, the clients will experience a more uniform particle size distribution, reduced wear of GETs and higher production rates.”

Following three days of classroom training and a week of equipment operation with an instructor, the operators were deemed fit to run the equipment on their own. “Vermeer Equipment Suppliers has been on-site during the full period of the trial.” Beerthuis explains that on two-week rotations, senior service technicians from Vermeer carried out the preventative maintenance of the machine and replacement of any worn items during the full trial period.

The trial showed that using the Vermeer T1255IIITL surface miner is a viable option for an open pit diamond mine. “The key thing for us is potentially generating more revenue per tonne and the fact that we further mitigate the risk of potential damage to our diamonds,” concludes Houman.

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WASTE-TO-ENERGY FOCUS

highlights BME as

AHEAD OF THE CURVE These are very interesting times for waste management in the mining sector and broader industry, as the focus turns toward the circular economy – and to the opportunities in the waste-to-energy field.

By Sachin Govender & Ramesh Dhoorgapersadh*

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or many years, BME has been pioneering the responsible utilisation and disposal of used oil, as part of our sustainability and enterprise development contribution in the mining sector. We are among the largest consumers of used oil in the country, utilising over 25 million litres of used oil in South Africa alone.

This waste product is collected from our mining customers and other users. Our carefully selected and closely managed network of collectors – combined with quality-controlled processing – delivers a useful recycled product. We incorporate this used oil as a fuel agent in our emulsion explosives, ensuring that it is responsibly disposed of during the blasting process.

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It was largely our involvement with used oil, and our strategic objective to expand this initiative, that drew us to exhibit at the Institute of Waste Management of Southern Africa’s recent WasteCon 2022 conference and exhibition in Johannesburg.

The event highlighted for us the growing importance of corporate compliance in waste management, as a ‘first base’ from which to develop sustainability efforts by all businesses that produce waste.

Circular economy Compliance is in many ways the starting point for industry to move toward a circular economy, and WasteCon 2022 certainly showed that the commitment was there to pursue this direction.

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Ramesh has 30 years of industrial experience

There are also the necessary solutions and technologies to facilitate this effort, as was well demonstrated by the event exhibitors.

From our point of view as a leader in used oil recycling, BME was struck by the positive trend in waste-to-energy technologies. The trend is, of course, close to our heart, as this is essentially what we do with used oil; we take a waste product, and we use it to create energy – in the form of a controlled blast to break rock for mining companies.

In South Africa, the theme of waste-to-energy has special relevance. As in the rest of the world, it helps us to manage the serious environmental threat posed by growing volumes of industrial and domestic waste. However, it gains another – equally important – dimension in its potential to help us address the country’s energy crisis, which is holding back development and job creation.

Among the exciting technologies discussed at WasteCon 2022 is pyrolysis – which is the thermochemical decomposition of organic material.

Sachin is currently an MBA candidate at Wits Business School

Gases from this process can be converted into an oil with a high calorific value – which can generate energy and electricity. There are also established technologies to burn municipal solid waste, which is a combination of high-energy materials, to heat boilers that drive electricity generation.

Harnessing these technologies could put South Africa on the path to better managing its municipal landfills. Not only are these facilities costly to manage in an environmentally responsible way, but they are also taking up more and more space, particularly in our urban areas. This encroachment limits the potential for human habitation near places of work and will become more of a concern as our rapid urbanisation continues.

Closing the loop Innovating in the waste management space involves plenty of collaboration, as every business has of necessity its own core focus that drives its commercial model. For BME, learning from the

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TECHNOLOGY

CONTROLS TIGHTEN ON USED OIL The environmental governance of how businesses dispose of their used oil is becoming tighter. Some used oil has in the past been utilised as a fuel source in relatively uncontrolled ways. Today, the emissions from combusting used oil must be monitored and kept within regulated levels. New regulations are even drawing the large oil players into investing in circular economy strategies to address the disposal of waste end-products.

specialities of other players – and finding areas of mutual benefit – was one of the main reasons for being at events like WasteCon 2022. In our engagements with counterparts, the imperative of ‘closing the loop’ was raised often.

Among the key issues of interest in this discussion is not just how to dispose of your waste responsibly, but how to realise value from it. A goal in many cases is to develop an income stream that makes waste disposal more commercially sustainable and creates the necessary incentives to evolve these processes for greater efficiency.

There was another vital element that the waste sector is raising more assertively in the context of closing the loop. This is the question of exactly where waste producers or service providers are taking industrial waste in the disposal process – and what exactly is being done with it. This struck a chord with us, as there are many other buyers of used oil in the market apart from BME. The concern being expressed by professionals in waste management is that it is not always clear what

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GETTING ENERGY FROM WASTE Waste-to-energy is the process of generating electricity or heat from the treatment of waste.

The most common ways of doing this are directly through combustion, to heat a boiler and drive an electricity generator. It is therefore a valuable form of energy recovery. Alternatively, waste can be processed into a fuel source, or produce a combustible fuel commodity such as methane, methanol, ethanol or synthetic fuels.

applications this used oil is being utilised in. If it is used in oil burners, for instance, then what level of emissions is being created? Is the loop really closed, or is the application of the waste product leading to detrimental results for the environment or society?

Mature approach For us, this kind of discussion reflected an encouraging and mature approach, which aligned very well with how we conduct our work at BME. A responsible approach begins with compliance – to both company policy and regulatory requirements.

This helps a business to manage the handling, transportation and storage of waste. As a licensed processor of used oil, we also go further to provide customers with peace of mind through process transparency and clear traceability of the product.

We were also pleased to see that several waste management projects or initiatives were community-based or reached out to civil society for greater impact and community benefit. This also overlapped well with the way that BME engages

THE SUSTAINABILITY ISSUE | 2022

TECHNOLOGY

local small business in the collection of used oil. By offering these opportunities in our supply chain, we have seen the value we create in local economies, to create jobs and facilitate economic transformation.

The positive social impacts that BME creates with our used oil initiative were therefore well received by various WasteCon exhibitors with whom we shared our story. It was pleasing to see that many of these engagements are likely to grow into practical collaboration, drawing in other related projects where we can support each other.

Even as one of the largest processors of used oil in South Africa, there are still only certain categories of used oil that we can consume, based on our technical requirements. So, there is still a significant need for other players to be involved with their own markets and technologies. For BME, it was very encouraging to see the willingness of others to work together, and it was constructive to build our links within the waste management network.

For those WasteCon 2022 exhibitors and visitors who were surprised to see an explosives company at a waste management event, they were soon able to understand our commitment to sustainability principles.

As part of the Omnia Group, BME continues to make a solid contribution toward the Group’s vision of being an international, diversified, sustainable group of businesses, which are recognised for leading the change from chemicals to green chemicals, biotech and biomolecular solutions, offering network-created, innovative technologies that protect life on earth and beyond. For us and the Group, it is all about creating a greener future together, and responsible waste management has become a critical aspect of this global goal. *Sachin Govender is the used oil manager at BME. Ramesh Dhoorgapersadh is the GM: Safety, Health, Environment, Risk and Quality at BME.

EVENTS

UNLOCKING THE FUTURE OF MINING IN AFRICA

AT MINING INDABA 2023 The Investing in African Mining Indaba – the world’s largest gathering of the most influential stakeholders in the African mining industry – is gearing up to again deliver a record-breaking event that will facilitate greater investment into African mining.

M

ining Indaba has been a significant platform for Africa’s mining industry for almost three decades. It is the only place where the mining community comes together to share perspectives and learnings that can spark change and, ultimately, drive investment,” says Simon Ford, portfolio director for Investing in African Mining Indaba.

Ford says the record-breaking Mining Indaba in May 2022 set the tone for the industry and for post-pandemic events. As the world cautiously emerged from the global pandemic in 2022, the focus was on getting Africa’s myriad economies back on track.

And while ESG as an investment imperative and the social licence to operate continues to underpin the values of Mining Indaba, we are entering a new chapter in both pan-African and global economies, he says.

“Therefore, the theme for 2023’s Mining Indaba is ‘Unlocking African Mining Investment: Stability, Security, and Supply’. This captures the very real geopolitical shifts and economic disruptions we are experiencing, and which are providing pressure points – and opportunities – within African mining as global economies seek security of supply, especially for their own energy transitions, as well as the raw materials and precious metals to bolster their economic power,” says Ford.

This year’s programme will delve into integral economic empowerment strategies, ways to support supply chain security for the energy transition and seizing opportunities to capitalise on the commodities super cycle.

New initiatives and programmes to debut Several new initiatives and programmes will also be debuted in 2023. These include the Explorers Showcase, the Junior MINE and the Official Government Leaders Programme.

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“One particular programme we are excited about for 2023 is the Explorers Showcase, where we want to showcase early-stage explorers through presentations and core samples to help stimulate those muchneeded conversations with investors. In this way, we can help drive investment into every stage of the mining production cycle through explorers, to juniors and on to mid-tiers and major mining companies,” says Tom Quinn, head of content at the Investing in Mining Indaba.

“The initiative is supported by South Africa’s Department of Mineral Resources and Energy as well as AfriMine. To complement this, we will run the Junior ESG Forum, as well our ESG Awards. We are also delighted to launch our new InfraTech @Indaba content programme, which combines our previous Mining 2050 and Infrastructure & Supply Chain streams into one platform, which will showcase leading suppliers and experts involved with the convergence of technology, infrastructure and critical supply chains in the mining sector.”

Delegates will also benefit from mainstay content streams during Indaba week, including the Ministerial Symposium, Intergovernmental Summit, Green Metals Day, Sustainable Development Day, the Young Leaders Forum, and the General Counsel Forum. Also making a return is the Innovation & Research Battlefield, which is a unique platform for academic institutions and startups to showcase their latest ideas.

“We are seeing a lot of early commitment and have no doubt this will be a sellout once again. With commodity prices remaining strong and demand for critical minerals, battery metals and rare earths really accelerating, we can expect this to translate to another bumper turnout and we are really excited to be back to our regular dateline in February,” concludes Ford.

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