Inside Mining February 2016

www.miningne.ws

AF R IC AN U PDATES ON TH E

MONTEPUEZ CENTRAL PROJECT Finding highgrade graphite

G RO UN D A N D UN D E RG RO UN D

LETŠENG DIAMOND MINE High-altitude mining at its best

DISRUPTIVE INNOVATION Easier said than done

TRYSOME

Moving Africa’s resources safely ISSN 1999-8872 • R50.00 (incl. VAT) • Vol. 09 • No. 02 • February 2016

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CONTENTS

A FRIC A N UP DATES ON THE

GRO U N D A N D U N D ERGRO U N D

MONITORING EQUIPMENT

16

20

Becker Mining’s CAS system provides an early warning indication that alerts the operator to the presence and number of personnel and vehicles in the immediate vicinity. Read more on p24.

FEBRUARY 28 EDITOR’S COMMENT

IT & COMMUNICATIONS

3

18

Time to get smart

COVER STORY 4

7

News from around the continent

ECONOMICS, FINANCE & RISK 8

Disruptive innovation

10

Ten economic challenges for mines

13

Assessing mine risks

FOCUS ON AFRICA 15

MINE AUTOMATION 22 24

Fleeting solutions for lasting efficiency Avoiding collisions at all costs

AFR IC AN UPDATES ON THE

LETSENG DIAMOND MINE High altitude mining at its best

GROUND AND UNDERGROUND

MONTEPUEZ CENTRAL PROJECT Finding high grade graphite

DISRUPTIVE INNOVATION Easier said than done

ALTERNATIVE ENERGY 27

Fuel cell technology reinvented

DRILLING & BLASTING 28

Planning ideal blasts

TRYSOME

Moving Africa’s resources safely ISSN 1999-8872 • R50.00 (incl. VAT) • Vol. 09 • No. 02 • February 2016

EVENTS 31

SHEQ out these IT solutions

COMMODITY: DIAMONDS & GEMS

32

An environmental challenge

16

32

Water under discussion

@mining_news www.facebook.com/pages/ Mining-News

www.miningne.ws ws

increased productivity

Finding high-grade graphite

High-altitude mining at its best

ON THE COVER p4

Safeguarding big data

20 Systematic approach to

Moving Africa's resources safely

AFRICA ROUND-UP

2016

Safety concerns abound on African mines. Trysome Auto Electrical specifically targets challenges related to the human element, through the launch of innovative technologies and industryleading safety solutions.

Endorsed by IN SID E M IN IN G 0 2 | 2016

1

EDITOR'S COMMENT

Publisher Elizabeth Shorten Associate publisher Nicholas McDiarmid Editor Mientjie Kleinhans Assistant editor Mpinane Senkhane Head of design Beren Bauermeister Designer Ramon Chinian

Time for the tough to get smart

Chief sub-editor Tristan Snijders Sub-editor Morgan Carter Contributors Millien Hendricks, Glenn Stoneham Client services & production manager Antois-Leigh Botma Production coordinator Jacqueline Modise Marketing & digital manager Philip Rosenberg Financial manager Andrew Lobban

T

HE BIG ISSUES IN this issue are the

In South Afri-

10 economic challenges for mines,

ca’s volatile

as highlighted in a recent Deloitte

labour envi-

report. The lessons learned from

ronment, pro-

these insights show that it is simply not good

ductivity suffers.

enough to just get tough – it’s time to get

Why? Quite simply,

smart. The transformation of economies

workers function in an

Printers United Litho Johannesburg

from agricultural and industrial to knowl-

integrated environment. There are motiva-

Tel: +27 (0)11 402 0571 ___________________________________

edge economies means that knowledge

tional and hygiene factors that keep work-

Advertising Sales

drives the way the world works. What does

ers happy. Data analytics, in a systematic

this mean for mining? The global popu-

approach to increased productivity, can

lation is growing at an accelerated rate;

be used to determine sentiment and atti-

houses, roads and bridges still need to be

tude towards work, levels of work, applica-

built and maintained, alongside everything

tion and usage of assets, such as wearable

No. 9 3rd Avenue, Rivonia 2191

else that goes into human development.

technologies, which integrate with ERP sys-

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All of this requires the very commodities,

tems and enable the planning, execution

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precious metals and precious stones we dig

and measurement of work.

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out of the ground. With knowledge, we can

www.3smedia.co.za ___________________________________

and need to do it smarter.

Administration Tonya Hebenton Distribution manager Nomsa Masina Distribution coordinator Asha Pursotham

Vinny Reddy Tel: +27 (0)11 233 2600 vinny@3smedia.co.za ___________________________________

Annual subscription:

And, speaking of which, big data involves

Whether mining at high altitudes, such as at Letšeng Diamond Mine, with its lowgrade ore but high-quality diamonds, or

more than just data governance and data

finding high-grade graphite in Mozam-

security. It also involves integrating internal

bique using geological surveys, drilling and

and external data and, using data analyt-

sampling techniques, and then mining it,

Foreign: US$100

ics, generating new knowledge about op-

moving Africa’s resources safely demands

Email: subs@3smedia.co.za

erations, methods, markets and market de-

superior safety and control. Efficiencies in

ISSN 1999-8872 Inside Mining

mand. This knowledge should then be used

transport are crucial to cost reduction, as

Copyright 2016. All rights reserved. ___________________________________ All material in Inside Mining is copyright protected and may not be reproduced either in whole or in part without the prior written permission of the publisher. The views of contributors do not necessarily reflect those of the publishers.

to stabilise supply and demand, smoothing

is the need to avoid collisions in a mine’s

out the volatilities that are so disruptive.

area of operations. Collision avoidance

South Africa: R550.00 (incl VAT & postage) African countries: US$80

A key area where all this wonderful data

that happen from time to time on a mine’s

ing risk. With the myriad smart technology

terrain. One life lost is one too many – a

available today – such as IBM’s Watson su-

safe mine is a desirable place to work.

percomputer, which is able to learn by itself

Data analytics, using integrated operation-

and connect seemingly unrelated data,

al mine data, can be effectively used to

giving new insights – an integrated per-

improve mine safety.

spective can be produced that incorpo-

To our avid readers, be sure to sign up and get the latest updates and inside scoops from the mining industry. Check out what we are talking about on our website, Facebook page or follow us on Twitter and have your say.

technology prevents those freak accidents

and knowledge can be used is in assess-

Last but not least, taking existing tech-

rates all aspects of mining operations, from

nology and reinventing it is an example of

best practices and solutions in planning

disruptive innovation. Fuel cell technology

and executing the ideal blast, and optimis-

has now advanced to the point where it

ing mining methods, labour practices and

provides more than adequate backup

finances, to risk mitigation.

power to that all-important computer with

However, all of this depends greatly on management’s attitude. We talk about innovation; but, do we really innovate?

its big data cloud access, data analytics and control systems.

It’s all elementary, my dear Watson.

Disruptive innovation – a term coined by @mining_news www.facebook.com/pages/ Mining-News

Harvard professor Clayton Christensen – may sound inappropriate but it captures the essence of what needs to be done.

Mientjie Kleinhans IN SID E M IN IN G 0 2 | 2016

3

COVER STORY

Moving Africa’s

resources safely Safety concerns abound on African mines, and often relate to human error.

Trysome Auto Electrical has, however, in sticking to its company promise – “Keeping Africa’s resources moving safely” – specifically targeted the challenges related to the human element, through the launch of innovative technologies and industry-leading safety solutions.

A

S WITH ALL new product inno-

application of systems that can protect

vations, the main focus lies in

drivers and operators from collisions in

maintaining maximum uptime

busy surface mines, particularly where

while reducing costs and

large haul trucks are interfacing with

ensuring the safety of a business’s most

smaller vehicles and personnel, has been

valuable asset – its people. Trysome has

a major industry focus for years.

been living this safety ethos since inception in 1991.

As of 27 May, 2015, the South African Department of Mineral Resources introduced regulations calling upon surface mines to enhance safety for all trackless

Superior safety and control “We have installed in excess of 12 000 units on South African operations already, and look forward to growing even more,” says Johan Momberg, product manager, Trysome Auto Electrical.

mobile machinery

SAFEmine’s collision avoidance and fa-

(TMM), such as

tigue monitoring systems have managed

haul trucks. In the

to deliver extensive solutions that save

same breath,

lives. Currently protecting more than

2015 was a

20 000 vehicles and operators in over

good year for

50 mines worldwide, SAFEmine provides

local company

a complete range of advanced safety

Trysome, boasting

solutions for surface mining and sets the

a comprehensive range of SAFEmine

benchmark for CAS. “SAFEmine remains onboard with safety,

sophisticated displays that integrate vital

collision avoidance sys-

and has adopted a non-negotiable ap-

safety information intuitively in cabins,

tems (CAS) and solutions that are

proach to keeping mining operations up

and digital switching, which maximises

fully compliant with the DMR’s new TMM

and running and, most importantly, safe”

vehicle uptime and is widely considered

safety regulations. The development and

says Momberg.

to be the next generation in vehicle

The company offers an array of prod-

4

HUMAN-ERROR SCENARIOS RESOLVABLE THROUGH DIGITAL AUTOMATION •D river exits vehicle without applying the park brake •D river drives off with toolbox door open •D river forgets to switch off flashing lights before driving away •D river neglects to stow away folddown stairs or ladders •D river exceeds safety speed limit in certified area •O perator neglects to switch off water pump •D river drives away before tipper body is fully down •O perator fails to stow tailgate lifter in the stowed position •O perator fails to check critical lighting equipment •O perator fails to maintain engine oil and coolant levels

power management.

Mid last year, Trysome introduced a

ABOVE Johan Momberg, SAFEmine product manager, Trysome Auto Electrical

ucts and services that include CAS, real-time fleet tracking, fatigue monitor-

compact, lightweight and flexible solution

BELOW Trysome's DPCu saves on wasteage by automating water-pump off-switches

ing, systems to protect clean-up equip-

to the automatic monitoring and control

ment around heavy rotating machines,

of all electronic systems within a fleet

INS IDE MI NI NG 0 2 | 2 0 1 6

COVER STORY – the DPCu15, an innovative, Australian product that allows for digital switching customisation in heavy-duty vehicles.

This means that any switch or control on the vehicle can be digitally controlled and monitored with pre-programmed software settings. The high-level focus is to tailor a solution that proactively diagnoses and prevents accidents, injury and vehicle downtime, as well as allows for enhanced customisability of the vehicle’s electrics system.

The DPCu15 receives switch requests from Digi-Key keypads or interfaces and then processes these commands based on the current system status. The response to a switch request may be an activation or deactivation of a circuit, the start of a timed function, or, in systems with keyless ignition, the locking or unlocking of the system. The DPCu15 then sends the system status information to turn on/off the indicator LEDs and backlights.

The old analogue systems in the vehicles can’t provide the functionality that the new digital system provides. As an example, the digital system can stop a truck automatically if the door opens and can limit truck speeds on mine sites for safety –

ABOVE The Rencool Anti-Idle air-con unit ensures operator comfort in a climate-controlled cab while reducing diesel consumption

in seconds. The company has positioned

BELOW LEFT Any switch or control on the vehicle can be digitally controlled and monitored with preprogrammed software settings, including the toolbox doors

cro-environments are where the hazard is

BELOW RIGHT The operator is prevented from driving away before the tipper body is fully down, which exemplifies Trysome's main focus of maintaining maximum uptime while reducing costs

the product as a low-maintenance, cost-effective solution to the problem of micro-environment fire protection. Mitypically contained within a critical enclosure, such as equipment, machines, vehicles or storage compartments. Firetrace systems can be installed in virtually any enclosed space where high-value assets are located or where an increased risk of fire could be mitigated by an automatic fire suppression system.

one can customise a mode for mine sites

The effectiveness of a genuine Firetrace

that, when enabled, initiates the set safe-

engine shut down, the BCA-6 unit takes

system comes from the proprietary poly-

ty parameters, including speed.

over the cooling duty, which is powered

mer tubing that ruptures when exposed

from an auxiliary source or upgraded

to a flame. This specialised Firetrace de-

factory batteries, depending on the runt-

tection tubing combines leak resistance,

ime needed.

flexibility, durability and precise tempera-

Reducing cost for more comfort In late September 2015, Trysome merged with sister company 4Elements,

Fuel calculations done from the BCA-6

ture sensitivity, allowing it to react quickly

gaining an additional product range

indicate proven major changes to min-

when heat from a fire is present. This

that ensures operators a comfortable,

ing site operations regarding fuel saving,

detection tubing connects to custom-en-

climate-controlled cab environment

carbon emissions and service intervals.

gineered valves and a Firetrace cylinder that contains the best fire suppression agent for a particular hazard.

It is through products such as these that Trysome has managed to become increasingly recognised as the choice supplier of heavy-duty auto-electrical products, associated technical services and related safety products throughout sub-Saharan Africa, along with being a

while cutting down on huge diesel

Premium fire protection

consumption and cost.

Among the company’s 2015 develop-

The Rencool BCA-6 Anti-Idle Series

major player in light-duty auto-electrical in South Africa.

ments, Trysome introduced the Firetrace

of heavy-duty air conditioners keeps

fire suppression system. Designed for

the cab cool while the engine is shut

simple installation, often very near the

down. This unit utilises the factory cabin

source of potential fire, Trysome describes

evaporator on 24-volt electric or the fac-

Firetrace as a self-activating suppres-

tory engine drive compressor. With the

sion system that reliably suppresses fires

+27 (0)11 823 5650 www.trysome.co.za

IN SID E M IN IN G 0 2 1 | 2016

5

WHEN YOU REALLY NEED DEPENDABLE POWER SOLUTIONS

14

IN SI DE MINING 01 | 2016

MINING NEWS

from around the continent

DEMOCRATIC REPUBLIC OF THE CONGO

said in comments broadcast by ZNBC on Wednesday. “With an increased supply of

Ban on copper and cobalt concentrate exports delayed

power, we can avoid the job losses that have been announced,” he said.

Sentinel, which Zambian President Ed-

The DRC postponed a ban on exports of concentrated copper and cobalt for anoth-

gar Lungu officially opened in August,

er year because the country doesn’t have

is receiving 70 megawatts of the 150

enough electricity to process the minerals, the Chamber of Mines said.

The ban, intended to force companies

Zimbabwean Mines Minister Walter Chidhakwa

megawatts it requires, ZNBC reported, citing a letter from the company. The government is engaging First Quantum in

to add value to their minerals before ship-

part of its Tabakoto mine west of the capi-

a bid to secure jobs, the broadcaster said,

ment, was supposed to go into effect in

tal Bamako in south-western Mali.

citing Kambwili.

January 2014 and has already been postponed twice.

“The chamber asked for another extension

Kofi Nord will produce an average of around 1.8 tonnes per year, Keita said.

The Fekola mine owned by B2Gold,

of the ban because the energy problem

which has reserves of 3.15 million ounc-

has not been resolved, and we received a

es, will also begin production this year,

positive answer,” said Simon Tuma-Waku,

he said.

head of the mining division at the Federa-

“Despite the timid pick-up of the global

Sentinel, which will produce as much as 300 000 metric tonnes of copper at full capacity, employed 1 264 people as at August, according to First Quantum.

First Quantum said, in August, it would cut almost 1 500 construction jobs and halted operations at the plant after Zesco,

economy, Mali has produced 50 tonnes

the state-owned power supplier, rationed

of gold in 2015, of which 46 tonnes are

its electricity to 42 megawatts. Normal

er, is suffering from power shortages that

industrial production and 4 tonnes are

power was restored the same week.

are hindering attempts to increase minerals

artisanal,” Keita said.

tion des Entreprises du Congo.

Congo, the world’s largest cobalt produc-

production. Supply shortfalls are reducing

The West African nation’s gold produc-

ZIMBABWE

Mines in turmoil

copper output by as much as 50 000 metric

tion could rise to around 60 tonnes a year

tonnes a year and production is estimated

by the end of 2017, the Mining Minister

The highly distressed Zimbabwe mining

to have declined to 982 044 tonnes in 2015

said in November.

sector needs urgent policy changes to

from 1.04 million tonnes a year earlier, the FEC said in November.

Glencore Plc, one of the DRC’s largest minerals producers, has said it was experi-

ZAMBIA First Quantum to cut 730 jobs at Zambia copper mine

enable the country's mineral resources to have an impact on the economy, economists have said.

The mining sector is reeling under many

encing as many as three outages a day at

First Quantum Minerals Ltd told the

challenges, including falling global prices

its Katanga Mining Ltd unit before suspend-

Zambian government it plans to fire 730

of minerals such as gold and platinum,

ing output for 18 months to invest in new

workers at its Sentinel copper mine be-

excessive power outages, high electricity

processing facilities.

cause it’s not getting enough power to

tariffs and lack of investment in the sector

keep operations running, state-owned

due to toxic indigenisation policies.

MALI

50 tonnes of gold produced in 2015; more expected in 2016

ZNBC reported, citing Information Minister Chishimba Kambwili.

Zambia is facing its worst power crisis to

The mining industry, estimated to require up to $5 billion in fresh capital, has, over the years, failed to access funding for re-

Mali produced 50 tonnes of gold in 2015,

date because of low water levels at the

consolidating its position as Africa’s third-

hydropower dams it relies on for 95% of

largest producer, and expects to increase

generation capacity. The shortages have

of Mines, the mining sector continues

output this year, President Ibrahim Boubacar

hit mines, which are also under pressure

to operate below capacity as it faces

Keita said in a New Year’s speech.

to cut costs and shed jobs to cope with a

several challenges, which include de-

Production is due to start at the Kofi Nord

decline in commodity prices. Zambia is Af-

pressed metal prices, low capital and

facility run by Canada’s Endeavour Mining,

rica’s second-largest producer of copper.

foreign direct investment inflows, high-

The Sentinel mine in Kalumbila, in

Congo is the world’s largest cobalt producer

North Western province, isn’t receiving

capitalisation and new projects.

According to the Zimbabwe Chamber

cost structures, sub-optimal royalties and power shortages.

power from a transmission line connect-

Analysts contacted by Standard Business

ed to the capital, Lusaka, that was sup-

said government needed to pay more at-

posed to come on line in September.

tention to the welfare of the mining sector

The mine may also delay plans to hire

to save itself from total collapse.

another 360 workers.

“We appeal to government to quickly

Renowned economic analyst John Robertson said Zimbabwe had been affected

energise the line from Lusaka to Kalum-

by falling prices just as had happened in

bila,” Joseph Chewe, general secretary

other countries that were dependent on

at the Mineworkers Union of Zambia,

commodity exports.

IN SID E M IN IN G 0 2 | 2016

7

ECONOMICS, FINANCE & RISK

Disruptive

innovation D

ISRUPTIVE INNOVATION was first defined by Harvard professor Clayton M Christensen, in 1995, as an innovation in a

product or service that creates a new market and value network, disrupting the existing market and network and eventually displacing the established market leaders and alliances. Just think of Facebook, Twitter, Apple and 3D

The world has evolved through innovation over the ages, and the mining industry has benefited greatly from various inventions, especially over the past century.

Millien Hendricks looks at what disruptive innovation is and how it affects mines.

believe that South African mining companies are no different in this regard. In fact, with the mining environment being as competitive as it is in the current downturn, the need for innovation is becoming more of a means for survival than a value-added service or unique selling point.

As depressed commodity prices continue to undermine profits and mine closures in the mining industry, mining companies are forced to consider the tough balancing act of reducing costs and improving productivity. Innovation in the form of automation, enhanced drilling systems or data analytics has become a strategic area in the mining industry. This is being used by many min-

printing – all good examples of disrup-

ing houses as a tool for cost cutting. In

tive innovation, to name a few.

the energy category alone, it is evident

In today’s global and fast-paced

Millien Hendricks, credit analyst, RMB

8

INS I DE MI N I N G 0 2 | 2 0 1 6

that companies embracing innovation

economy, innovation has become one

are improving output intensity while

of the key factors for success in organi-

reducing human, energy and capi-

sations across all industries – those com-

tal intensity at the same time. Miners

panies that are ahead of their compet-

have realised energy savings by up to

itors are usually leading in innovation. I

30% by investing in renewable energy

ECONOMICS, FINANCE & RISK installations, using innovative energy

mining operations sub-

technologies and striving towards more

stantially. The challenge

automated mine processes to optimise

is to make these technol-

energy consumption.

ogies smarter in order for

So what does innovation, in the con-

them to perform more

text of mining companies, really mean?

complex tasks, thereby

It is worth noting that, while research

reducing labour costs

and development does contribute to in-

and increasing produc-

novation and optimisation in any organ-

tivity and optimisation as

isation, innovation extends beyond its

a result. While it would be

confines. To quote Deloitte’s ‘Future of

ideal to operate a fully

Mining in South Africa – Innovation Im-

mechanised or auton-

perative’, “Innovation revolves around

omous mine, it remains

companies’ current capacity to adapt

to be seen whether this

practical applications that already exist

is possible, especially in

in other industries and apply them to fit

South Africa.

the needs of mining companies today.”

A few innovations worth

The potential for innovation, therefore, is

mentioning in the mining

everywhere. The report uses the exam-

space include:

ple of how some innovators are adapt-

• Rio Tinto’s autonomous

ing tunnel-boring machine technology,

rail system – AutoHaul

which was used by civil engineers when

• the viable alternative

excavating the Channel Tunnel to

mine operating system project –

build smaller machines that are better

VAMOS – which is basically the explo-

suited to the purposes of the mining

ration of underwater robotic mining

sector. This implies that the innovations

prototypes as well as enhanced

required to “disrupt” mining may not necessarily be found in the mining sec-

FIGURE 1 Innovation ambition levels

company is unique, the world’s leading

drill systems • EDS, which relies on high-precision

innovators have, on average, 70% of

tor itself – in the same way that mining

geolocation systems to provide

their innovation investments and activ-

process design draws inspiration from

equipment operators with continuous

ity occurring at the core level (optimis-

industries outside the mining industry.

navigation and guidance, thereby

ing existing products/services), while

increasing the productivity of blast-

20% occurs at the adjacent level (ex-

hole drills.

pansion from existing to new business),

Example A good example of this is Rio Tinto’s

Despite all these technologies, inno-

and only 10% of innovation occurs at

CEO, Same Walsh, who joined the

vation is always easier said than done.

the transformational level (developing

mining house from the automotive in-

Through the Innovation

dustry. Years ago, he began leveraging

Scorecard survey, evi-

best practices and drawing parallels

dence reflects a mining

between the mining and automotive

sector that is willing to

manufacturing industry he came from

innovate, that has the

in order to eliminate certain processes

desire to innovate and

from their operations, resulting in cost

that is already, to some

reduction and boosted productivity.

extent, innovating. How-

There are as many differences between

ever, there has been

the automotive and mining sectors as

little consistency and

there are similarities though. For exam-

few strategic outcomes

ple, the automotive industry is highly

from this innovation. In

unionised – safety is also a huge priority

fact, the study found that junior miners

to survive in a very depressive envi-

and the labour and overhead costs

and services/supplier companies are

ronment, this shift is key. This is where

account for the majority of operating

far more consistent and competent

disruptive innovation comes in. It is the

costs. One has to wonder if there are

when it comes to innovation.

responsibility of all mining companies

other lessons in the automotive industry for the mining industry.

Despite numerous enabling technologies, innovation is always easier said than done

Leading innovators

breakthroughs and inventions for markets that do not even exist yet). See innovation ambition levels in Figure 1.

This begs the question, should innovation in the mining space not be shifting from the core level into more of the transformational level? In order for mining companies

in South Africa to be fully aware of the technological landscape of the industry

It appears that the common resolve

and how this can be used to create a

is that everyone places the majority

more profitable, more efficient, more

One key similarity the automotive and

of their focus on the innovation and

productive and a safer future for the

mining industry share is the use of ma-

technological optimisation of old

mining company. The mining industry

chinery (and the asset management

techniques – in particular, on ways to

has surely come a very long way in

thereof) in their operations. The move

reduce costs or perform explorations

safety, technique and process innova-

towards more autonomous technolo-

more efficiently. The study also went

tion. Hopefully, it will continue to do so

gies and vehicles has already changed

on to reveal that, although each

in leaps and bounds.

Use of machinery

IN SID E M IN IN G 0 2 | 2016

9

ECONOMICS, FINANCE & RISK

10

economic challenges

Weak commodity prices, declining grades and a continuing slowdown in demand from China are some of the top issues facing mining companies in 2016.

A recent Deloitte report outlines the top 10 issues and discusses what mining companies can do.

for mines

A

S GLOBAL COMMODITY prices

gloomy, with a swirl of forces battering

continue to hit historically low

the markets.

levels, mining companies are struggling to recalibrate. Soft

trade data from China has done little to

and share prices of many resources com-

alleviate concerns around that country’s

panies have all but collapsed. Mean-

appetite for commodities.

while, the global supply glut and weak

It doesn’t help that the industry faces a host of unresolved challenges – from tumbling demand and declining grades to

futures markets and mining stocks.

“Investors and lenders have fled the sector and the promise of an injection of

a lack of available financing.

private equity or institutional capital re-

At the same time, miners must contend with an industry prone to constant

mains elusive,” the Deloitte reports states.

“As exploration dwindles, juniors contin-

change, including the innovation imper-

ue to fight tooth and nail for survival. And,

ative, shifting regulatory realities and the

despite these headwinds, governments

rising risk associated with both physical

still expect miners to help bolster their

and cyber security.

economies through taxes, royalty fees,

Deloitte’s ‘Tracking the Trends 2016’ tinue into 2016, suggesting that China’s

shares of profit, infrastructure spend and community investments.”

As China’s economy slows, billions of

economic slowdown has cut a strip

dollars of investment in new mining pro-

through the mining sector, spurring mas-

jects are coming to fruition, putting further

sive price drops for everything from iron

pressure on prices.

ore, coal and aluminium to nickel, copper, zinc and lead.

Even though the full extent of the shakeout is still not certain and will

INS I DE MI N I N G 0 2 1 | 2016

demand continue to spur the sell-off of

mounting stakeholder expectations and

report estimates that the cycle will con-

10

Industrial metals are already trading at lows last seen during the financial crisis,

They say prices will have to remain “lower for longer” to drive further supply adjustments and balance the market.

Not surprisingly, investors have become

depend on whether commodities

increasingly disillusioned with commodi-

prices are to fall further, the outlook is

ties after four years of lacklustre returns.

ECONOMICS, FINANCE & RISK Demand

becomes a reality and demand once

Demand – particularly out of China – is

again outstrips supply.

down, but production is not falling. In fact,

“Similar to the boom cycle, where peo-

some producers have ramped up output

ple imagined prices would go up forever,

to reduce unit costs, consolidate market

people now imagine the market will nev-

share or avoid the costs associated with

er recover. Neither extreme represents

shutting down older mines.

the truth. What is true, however, is that

Since 2000, companies have invested

cycle times are lengthening. This means

hundreds of billions of dollars to expand

it could take years to adjust to current

their production capacity to satisfy China

market forces – but it’s still a cycle,”

in a period of rapid economic expansion –

says Lane.

much of it financed with debt.

But the situation has proved unsustain-

“Until then, the industry will continue to flatten, contract and eliminate all

able as demand has waned. Chinese

waste,”’ he continues. “On the flip side,

copper imports are down nearly 3% from

the companies that survive will emerge

last year, while imports of steel products

leaner, stronger and more innovative in

are down by more than 12%. The coun-

operation. We’re just not there yet.”

try’s crude oil and iron ore imports are

To help position miners for the eventual

still up, but by rates that are slowing from

rebound, the Deloitte report explores

previous years.

not only well-trodden themes, but also

Swiss company Glencore is scrambling

ancillary themes miners must take into

“Similar to the boom cycle, where people imagined prices would go up forever, people now imagine the market will never recover.

Neither extreme is true.”

Andrew Lane, Deloitte Africa

to reduce its $30 billion debt by a third

account if they hope to navigate an

before the end of 2016 by slashing its cop-

increasingly uncertain future – including

per mining operations in Zambia and the

China’s painful transition, an overview of

“We have pulled costs out of the busi-

Democratic Republic of the Congo and

exponential technologies and a discus-

ness, but we need to do more because

selling much of its agricultural business.

sion of the ways in which a shifting global

prices continue to deteriorate.”

In its ‘Tracking the Trends 2016’ report, Deloitte suggests that, given the country’s influence on the global economy, miners

energy mix may alter the demand for specific commodities.

The Deloitte report stipulates that one strategy industry-leaders are following in finding new productivity gains is a contin-

need to take steps to understand the

Questions to ask

global impact of China’s domestic market

“Once again, we draw on the experi-

trends – particularly as the Chinese gov-

ence of Deloitte’s global mining pro-

Innovation and best practices

ernment follows an increasingly interven-

fessionals to help identify the questions

“From automation and enhanced drilling

tionist path.

miners must ask – and suggest solutions,

systems to data analytics and mobile

where we have them,” Lane adds.

technologies, companies embracing

Furthermore, concerns over currency weakness may accelerate Chinese

Even though mining companies have

ued investment in innovation.

innovation are improving mining intensity

enterprises’ acquisition of overseas

spent several years ruthlessly reducing

while reducing people, capital and ener-

assets over the short term – specifically

costs, which, on the plus-side, has trans-

gy intensity.”

natural resources.

lated into enterprise-level productivity

Chinese expertise

ductivity involves leveraging best practic-

on the prices of raw materials remains

es from other industries,” it adds.

“Resources firms are now increasingly

significant, and companies have been

looking into how they can leverage Chi-

caught in the downdraft.

nese expertise more systemtically,” says

“Yet another method for improving pro-

improvements, the continuous pressure

This has forced companies to consider

Since joining Rio Tinto from the automotive industry, Sam Walsh, the company’s CEO, has been drawing parallels between

Andrew Lane, lead: Energy & Resources,

how to both sustain their cost take-outs

mining and manufacturing. Years ago, he

Deloitte Africa.

and drive ongoing productivity improve-

began advocating the adoption of lean

ments. Operational excellence, thus,

practices in the mining sector.

This includes strategic sourcing arrangements for key operational inputs, leveraging Chinese design and con-

remains front and centre Anglo American, for example, is pulling

The approach, originally pioneered by Toyota, has helped countless manufac-

struction experise, turning to China for

back broadly, with a goal to reduce the

turers boost productivity and reduce costs

financing or integrating commodity pro-

company’s size by 60%. Along with the

by eliminating all unnecessary processes

duction more closely with downstream

lay-offs announced late last year, the

from operations.

Chinese production.

company is suspending its dividend, halv-

Cycles However, despite all the gloom and doom

With most quick wins already captured,

ing its business units, as well as unloading

mining companies are seeking opera-

mines and smelters.

tional improvements further up the

“Quite frankly, we didn’t expect the

value chain.

currently facing the mining industry, and

commodity price rout to be so dramatic

speculation of the future, sector veterans

and, in all likelihood, the next six months

solutions may include investing in innova-

agree that depressed raw material prices

are going to be even tougher,” Mark

tion, but also mentions energy-efficiency

are just another downward cycle bound

Cutifani, CEO, Anglo American, said at

programmes and the adoption of lean

to end, once the spectre of shortfalls

an investor conference.

practices – to unlock further gains, which

The Deloitte report notes that those

IN SID E M IN IN G 0 2 | 2016

11

ECONOMICS, FINANCE & RISK

can include data integration, supply-chain optimisation and back-office outsourcing.

To support the continued push for productivity, miners may have to tread into controversial waters: labour reform. This is more controversial in South Africa, following the violent and protracted

“Investors and lenders have fled the sector, and the promise of an injection of private equity or institutional capital remains elusive.”

strikes that have faced the platinum belt over the last few years.

“With 40% to 50% of mine costs related to labour, it’s a critical cost and productivity lever – and a potential minefield,” says Lane.

Mechanisation The report states that, to enhance productivity, miners are mechanising aggressively. This, in turn, raises the imperative for social innovation to maintain a social licence to operate and to mitigate impact on stakeholders.

“Given the prevalence of grade declines, however, processing more rock may not yield additional production volumes and mechanisation can negatively impact employment. This puts management and labour at cross-purposes, and could incite unions to strike,” it states.

“Even greater tension is brewing in light of recent industry headcount cuts, aside from leading a loss of institutional knowledge, heightened safety risks and process inefficiencies – especially if measures are not taken to retain key talent – wholesale job reductions can trigger serious social backlash, potentially devolving to violence. This, in turn, could see miners losing their social licence to operate as local communities react to a perceived breach of trust.

“There’s little doubt that a labour confrontation would produce more harm than good, which is why it’s time to change the nature of the conversation. This starts by bringing all the stakeholders together to develop a shared vision of the future,” says Lane. “Labour must be prepared to articulate its expectations, not only in terms of wages, but in terms of standards of living, job rates and family welfare.”

Companies must be capable of clearly measuring and reporting on the full impact of their social spend – from wages paid and training provided, to schools built, labour mobility and community jobs created – as a multiplier effect to their procurement spend. And, governments will need to play a role, as well, to ensure labour laws reflect evolving community and corporate realities.”

12

IN SID E M IN IN G 0 2 | 2 0 1 6

ECONOMICS, FINANCE & RISK

Assessing

mine risks Mining risk assessments need to be approached methodically and considered holistically. This means understanding the specific inherent risks that exist at the type of mine being assessed, as well as geological issues and exposure to natural perils. By Glenn Stoneham

T

HE ASSESSMENT ALSO involves a

Professional risk assessment

survey of the entire process at

The proper assessment of these types

the mine, from ore extraction,

of risks is highly specialised. The process

including access and method

Glenn Stoneham, portfolio executive, Emerald Risk Transfer

should not only perform the role of an

material damage in excess of the Sasria

of extraction, to final product, includ-

assessment for insurer acceptance, but

coupon, as well as providing for wider

ing ancillary facilities and external

should also (and possibly more impor-

cover such as sabotage, insurrections, re-

dependencies, such as the supply

tantly) add value by assisting clients

bellion or revolution, mutiny, coups d’etat,

of power. The assessment not only

in their management of risk and the

looting and malicious damage to property

considers the adequacy of physical

mitigation of potential losses and conse-

and, thereby, providing coverage beyond

protection that exists throughout the

quences thereof.

that of the Sasria coupon.

process, but also identifies any possible

It requires a technical understanding

Emerald has developed a wording and

inefficiencies, which could give rise to

of the complex processes and special-

facility that is able to provide this cover

bottlenecks, and what contingencies

ised plant and equipment involved,

for both project and asset placements to

are in place to mitigate them.

in-depth knowledge of both the mining

insure against these perils, which are be-

and insurance industries, as well as the

coming increasingly relevant.

Mining, by its nature, is a risky business that interconnects the risk of

ability to assess what reasonable im-

bodily injury and/or loss of life, and the

provements could be made to improve

Solutions-oriented insurance

risk of damage to property. The need

the commercial attractiveness of a risk.

Emerald has the unique ability to combine

to safeguard human life and prevent

This is a very specific set of skills, which

the variety of technical, underwriting and

lost-time injuries is often a key motivat-

require professional, experienced and

reinsurance skills of their individuals. When

ing factor for the physical protection

qualified individuals.

coupled with its leading presence in South

of property. The specific exposures, or

Africa and its reach northwards via its

risks, can vary substantially from mine

Labour and social disturbances

to mine, but there are common areas

What mines need to consider are the

understanding of the different rules and

that require consideration across most

common general exclusions on asset

regulations in these territories, the com-

operations. These would include:

policies, which include the South Africa

pany is able to provide solutions-oriented

• loss of power due to damage to

Insurance Association (SAIA) exclusion

insurance that is backed by market-lead-

and the war, civil war and terrorism en-

ing claims expertise and the solid financial

dorsement exclusion (NMA 2919).

credentials of its parent, Santam Ltd. This

supply equipment • breakdown of critical plant, such as mills and transformers • underground fire, explosions or seismicity • loss of critical, high-angle, or underground conveyors • fire or explosion risks associated with furnaces.

The biggest risk facing mines, however,

Elements of the covers excluded un-

extensive African network, along with the

combination of factors not only enables

der the SAIA exclusion are picked up in

Emerald to lead complex pan-African

South Africa by the South African Special

programmes, but also puts the company

Risks Insurance Association (Sasria). Cov-

ahead of the pack in tailoring workable

er in respect of war, insurrection, rebel-

solutions for its local clients.

lion, revolution, military or usurped power remains excluded.

The Riot Wrap market is then able to

is not the obvious physical damage

provide additional (wraparound) cover

but rather the resultant interruption or

to Sasria, in particular relating to profits,

stoppage of the business.

contingent business interruption and

+27 (0)11 658 8200 www.emeraldsa.co.za

IN SID E M IN IN G 0 2 | 2016

13

FOCUS ON AFRICA: MOZAMBIQUE

Finding

high-grade graphite Amid various prospecting and surveying projects currently under way in Mozambique, an Australian resources company recently completed exploring Montepuez Central – the first such exploration to be conducted in the area. By Mientjie Kleinhans

T

HE MANAGEMENT of Metals of Afri-

Development strategy

ca (MTA) is satisfied with the results

MTA feels that it is well positioned for

of the estimates, as it seems that

rapid project development and aims

the area yields large flake sizes of

to complete a concept study shortly,

graphite at a high grade. However, the

followed by the completion of a pre-

company prefers to continue its focus

feasibility study. Leeden explains that

on proving more near-surface resource

various prefeasibility study activities

tonnages, which will likely provide better

have already commenced, including addi-

between the Nairoto, Xixano and Mon-

economic extraction potential.

tional metallurgical and spherical graphite

tepuez complexes. The Xixano Complex

test work.

includes a variety of metasupracrustal rocks

Montepuez Central indicated mineral resources of 61.6 Mt at 10.3% total graphitic carbon and 0.26% vanadium oxide (V2O5),

Background

that form the core of a regional syfrom trending north-north-east to south-south-

for 6.3 Mt contained graphite and 163 Kt of

The project is located close to Montepuez,

west. The paragneisses include mica

V2O5. This has been determined after only

in the province of Cabo Delgado, and

gneiss and schist, quartz-feldspar gneiss,

5% of the prospective geology at the pro-

consists of three prospects: Buffalo, Lion and

metasandstone, quartzite and marble.

ject has been drilled.

Elephant. More than 60 diamond core ex-

“A resource of 61 million tonnes will en-

ploration drill holes, of 6 450 m, were drilled

Dimensions

able the company to meet the growing

and the operations licence was granted in

The Lion mineral resource area extends

demand of end users and is ample for

September 2014.

over a strike length of 1.4 km and compris-

our proposed mine design,” says Cherie

“The project is a virgin graphite discovery

es a maximum width of 60 m. The Elephant

made by the MTA Technical Geology team,

mineral resource area covers a strike

and the company has moved from dis-

length of 1.2 km and about 130 m wide,

exceptional. Large flake sells for a premium

covery, to drill-out, to the confirmation of its

while the Buffalo mineral resources area

and gives up optionality with respect to

maiden mineral resources on-site, all within

measures 1 km by 190 m.

any end users.”

one year,” says Leeden.

Leeden, managing director, MTA. She adds: “The flake size and quality are

MTA contracted a Canadian compa-

Future plans

ny to conduct flake size assessments by

Sampling and drilling techniques

means of mineral liberation analysis. The

Quarter core samples were analysed with an

trenching and drilling of the Versatile Time

initial test results of 41 samples from the

average core sample length of 1.65 m. The

Domain Electromagnetic System (VTEM)

Buffalo and Lion prospect sites indicate

initial drill programme consisted of five holes,

conductor model is required to discover

very coarse flake size – returning 56.3%

of 215 m, at an average depth of 43 m.

new resources on the Montepuez licence,

MTA indicated further geological mapping,

and infill drilling. “We have outlined a

for large (180 µm to 300 µm) and jumbo

A company in South Africa assisted

(>300 µm) within the weathered and pri-

with the sample preparation and the

pathway to fast-track the project and we

mary ore zones.

geochemical analysis was completed by

intend to investigate the viability of setting

the Austrian branch. During this process,

up a spherical graphite plant in the USA,”

samples were sorted, oven dried at 105°C,

says Leeden.

TABLE 1 Exploration drill holes details Prospect Number of holes Metres Buffalo

31

2 883

Elephant

13

1 595

Lion

16

1 972

crushed to 2 mm, and a 300 g subsample was taken for pulverising.

Geology

The company plans to simultaneously pursue the development of Montepuez Central and the advancement of the Balama Central graphite project. Drilling is ongoing at

The MTA properties occur on the Xixano

Balama Central and an estimate is expect-

Complex and traverse the tectonic contact

ed soon.

IN SID E M IN IN G 0 2 | 2016

15

COMMODITY: DIAMONDS & GEMS

High-altitude mining

at its best

this year, and eventually will go up to 35 million tonnes of waste,” says Houghton.

He further states that at the mine’s initial stages, they had to prove its viability. “It took us two to three years to

Letšeng Diamond Mine is not only the highest diamond mine in the world, its resource is also quite unique, bearing low-grade ore but large, high-quality diamonds.

The mine mainly supplies the jewellery market and, therefore, needs to yield the best diamonds possible.

John Houghton, general manager,

reach the point of sustainably running a

Letšeng Diamonds, explains that, due to

good operation.” The major shareholder

the new equipment, everything of about

at the time was JCI; in 2006, Gem Dia-

5 mm in diameter goes through the

monds purchased the mine. The second

coarse recovery plant and is treated by

treatment plant, Plant 2, was built and

the XRT machines. “The principle of the

commissioned in 2008, operating at

XRT is the ejection by atomic number. So,

400 tonnes an hour head feed.

T

we eject carbon, which is, in effect, the

Plant 2 was subsequently upgraded

diamonds, from the stream. The previous

from 400 to 450 tonnes an hour. This

technology used illuminessence to identi-

involved a few changes to the scrub-

fy the diamonds,” explains Houghton.

ber, and an additional, tertiary cone

Production at the mine started off as a

crusher. Some work was also done on

small operation in 2004, with one treat-

the coarse float screen of the dense

ment plant treating 250 000 tonnes of ore

media separation section to allow extra

a month and minimal waste mining was

tonnages, and to release extra material

required. “Obviously, as we went along,

to the tailings dam.

the pits widened and deepened, result-

“At the same time, we kicked off a

ing in more waste. Currently, waste min-

new project for coarse recovery, by

ing has been just under 25 million tonnes

improving concentrate handling from Plant 2, with an improved, automat-

O ILLUMINATE DIAMOND breakage, the management of Letšeng Diamonds continuously evaluates the latest equipment

and technology available on the market, and subsequently introduced x-ray transmissive (XRT) machines for diamond recovery of the coarse fractions.

Letšeng is the first mine in the world to introduce this technology.

Dump trucks at work

16

a year, increasing to 30 million tonnes

INS I DE MI N I N G 0 2 | 2 0 1 6

ABOUT LETŠENG DIAMOND MINE • It is famous for large, top-quality diamonds • It is the highest diamond mine in the world, at an altitude of 3 275 m • It processes ore from two kimberlite pipes: Main and Satellite • It produces about 100 000 carats an annum

ed Sputnik system. This system holds 3 tonnes of concentrate, creating an automated loading system, to improve security as a main objective,” says Houghton.

Biggest challenges Letšeng is located high up in the Maluti Mountains, in the Kingdom of Lesotho, at an altitude of 3 275 m, and is

COMMODITY: DIAMONDS & GEMS

reasons. Houghton explains that security measures have been introduced, as

ABOVE LEFT TO RIGHT Tsitso Mofokeng, metallurgical engineer, Letšeng Diamonds

security is important to the mine for two

The primary jaw crusher at work

reasons. First, Letšeng Diamonds needs

The ore moving through the comminution process to the last, secured phase

to protect the workers from syndicates.

Then, by having systems in place, the company ensures that people don’t

BELOW One of the two pits in operation

have access to the diamonds and,

Future plans

blessed with beautiful scenery, fauna

therefore, won’t be targeted by

He says that the mine has a number

and unique afro-alpine flora. Being

the syndicates.

of plans for the future, but he is not at

the highest diamond mine in the

liberty to reveal those as yet. Other

world poses a few challenges, such

Passionate people

as snow, wind that can reach 100

The workers at Letšeng have a certain

on a consistent drive to optimise op-

km/h and freezing winters. “The harsh

passion about their jobs, which can be

erations – from blasting to the actual

environment is a challenge for us, but

observed by visitors. Houghton explains

recovery of diamonds, understanding

not a big issue. We work through the

that there are a couple of contributing

the ore body, improving treatment

wind and snow, and operations are

factors and that the management

methods and, ultimately, reducing

seldom halted by snow conditions,”

team focuses on maintaining the level

diamond breakage.

says Houghton.

of passion. Some of the factors include

He explains that their strategy is such

the remoteness of the mine and the

that if the pits are inaccessible, the

fact that the mine mostly employs

stockpiles will feed the processing plant

local people. “We only have 46 expa-

for a couple of days. In the last two

triates working on the mine; all other

years, the site experienced drier con-

personnel are locals. On occasion,

ditions and less snow, which translates

we searched worldwide for Basotho

into less harsh conditions.

people with the necessary skills. We will

“Continuous growth is always a chal-

always recruit local people first, and

lenge, but it eventually becomes a

we have our training in place as well

way of life. Our philosophy on the pro-

as systems to identify the right people,”

duction side is to find ways to continu-

says Houghton.

than that, the management team is

DIAMONDS PRODUCED AT LETŠENG DIAMOND MINE: • Letšeng Star: 550 carat white diamond • Leseli la Letšeng: 478 carat white diamond • Letšeng Legacy: 493 carat white diamond • Lesotho Promise: 603 carat white diamond • Lesotho Brown: 601 carat brown diamond

ously improve operations, fragmentation and blasting to get early liberation of our diamonds. We also continuously address and improve processes to ensure that the diamonds aren’t damaged during operations, as preventing diamond breakage is vital to our processes,” says Houghton.

Therefore, the mine is always on the lookout for new technology, such as cone crusher development and evaluating line configurations. “We need to understand what can be done about diamond damage, as there is money to be made in that regard,” explains Houghton.

Security Another big challenge for Letšeng diamond mine is security, for obvious

IN SID E M IN IN G 0 2 | 2016

17

IT & COMMUNICATIONS

Safeguarding big data I Data has become a valuable asset that needs protection and safeguarding, much as any physical asset does. What makes safeguarding data difficult are the various aspects of data in a company that people don’t always consider.

Mientjie Kleinhans looks at some threats that mining companies face.

18

INS I DE MI N I N G 0 2 | 2 0 1 6

NDUSTRIAL ESPIONAGE, hackers, identity

Rob Shaw, EOH

theft, and many other factors need to be considered by more than just

even to unauthor-

the IT department when it comes to

ised employees.

safeguarding data. Where the biggest

backup and recovery, company managers

Industrial espionage

now also have to consider other threads.

Another threat

challenge in the past may have been data

One of these threads is loss of information.

that mining com-

Not only is it highly inconvenient but, in some

panies need to se-

cases, it can be detrimental to the compa-

cure against is industrial

ny when crucial information is lost, especially

espionage. “Mines must ensure

when the information is the backbone to

that their proprietary data is protected

business decisions.

from the competition. It is important to

“Besides backing up information, security

choose compliant data destruction pro-

access to information is also a threat that

cesses for computer assets at the end of

companies need to keep in mind,” says Rob

life. Computer hardware and software

Shaw, ECM OpenText competency manag-

need to be properly disposed of or there

er, EOH. Every company should ensure that

is a risk of exposing the items to data

its information is secure at all times, and that

recovery techniques,” says Wale Arewa,

confidential information stays confidential,

CEO, Xperien.

IT & COMMUNICATIONS and, together with a good disaster-recovery plan, the risks will be largely mitigated.”

Arewa adds: “Mining companies must choose

Marius Coetzee, Ideco

compliant data destruction methods that

Arewa points out that companies sel-

Identity theft

dom consider the challenges that infor-

Marius Coetzee, managing director, Ideco,

niques, and the same for backed-up infor-

mation technology asset disposal (ITAD)

says that, as technology and access to

mation. Also, companies should ensure that

presents. “Few companies understand

information improve, fraudsters continually

wearable technology is encrypted while it is

the principles of ITAD and, more often,

evolve their scams for accessing informa-

in active use.”

cost is a driver of the fragmented ap-

tion. This creates another threat to mining

proach to refreshing old assets. This can

companies: identity theft. “Identity theft

available to ensure the safety and secu-

range from auctions and staff sales to

is growing by at least 16% per annum,”

rity of data, such as Azure, Amazon and

scrapping storeroom-bound computers

says Coetzee.

synchronisation systems from many of the

without proper consideration for data

He adds that biometric identification

are not vulnerable to data recovery tech-

There are a number of cloud solutions

large hardware storage vendors, accord-

protection or the elimination of data

solutions create a unique link between an

ing to Shaw. Adding to that, Arewa says

from old computers.”

individual and their identification number or

that, generally, big data is protected by

biometric characteristic, such as a finger-

access control and encryption. At the end

tion, companies need to comply to regula-

print. “The most important aspect of biom-

of life, there are two options, which depend

tions as well. The legislative requirements are

etrics is the uniqueness and permanence of

on whether a company wants to retain the

set out in the Protection of Personal Informa-

one’s fingerprint – it allows the non-reputa-

economic value of the computer system, or

tion Act, (No. 4 of 2013), the National Envi-

ble electronic identification of individuals,”

not. “If the computer system is still valuable,

ronmental Waste Management Act (No. 59

says Coetzee.

then sanitising the system is preferable. Oth-

Apart from protecting company informa-

of 2008) and the Consumer Protection Act (No. 68 of 2008).

“A trusted partner can help find the met-

Data backups Everyone agrees with the importance of

erwise, physical destruction is the safest and most compliant option,” says Arewa.

A challenge that can easily become a

rics to convey a secure asset disposition

data back-up, but not everybody realises

threat is choosing reputable consultancy

plan’s return of investment to budget-mind-

the importance of safeguarding data back-

services and secure products. Infor-

ed superiors. Once the job is under way,

ups. “Backups are exposed to the same risk

mation lost due to incompetence of a

your partner will provide complete doc-

as computers that are in service. Therefore,

service provider or product may have

umentation of the disposal process,”

compliant data destruction processes

detrimental causes.

explains Arewa.

should be followed once the backup is no

Rob Shaw agrees and adds that correct access and utilisation allow for correct deci-

longer required,” warns Arewa.

Shaw adds that mobile devices also

Importance In a nutshell, the safeguarding of big data is

sion-making, but could be a risk if incorrect

have to be considered when it comes to

extremely important. “Safety of data within

destruction procedures are not curtailed.

data backups. “Due to the increased us-

any organisation allows for the continued

“Improper destruction of computer wares

age of mobile devices, the online backup

lifespan of the organisation, both structured

can be combatted by applying correct

and storage capabilities should be seen

data (ERP based) and unstructured data,

training and by enforcing correct proce-

as imperative.”

which includes data that is supportive and used for decision-making, such as contracts

dures for data capture, dissemination, de-

“Companies shouldn’t forget that wear-

ployment and storage. Also, the necessary

able technology is effectively mobile tech-

destruction of personal information, if not

nology and will be exposed so the same

enforced, could cost the organisation a

threats,” says Arewa, and Shaw adds that

sonal data residing on its computer systems

great amount through fines,” says Shaw.

companies should consider the risk of mo-

to ensure compliance with the laws of South

IT ASSET DISPOSAL REGULATIONS •P rotection of Personal Information Act (No. 4 of 2013) – PoPI Act

and receipt of goods,” says Shaw.

“Primarily, a company must protect per-

bile devices being lost, stolen

Africa. Companies should also be con-

or damaged.

cerned about proprietary data because,

Data protection There are ways to protect data,

if that data is lost, it could mean they lose their competitive advantage in the market place,” explains Arewa.

as Shaw explains: “Procedures

• National Environmental Waste Management (No. 59 of 2008) – NEMWA 2009

must be enforced to ensure

• Consumer Protection Act (No. 68 of 2008) – CPA

captured and stored data

the continued safety of the throughout the organisation

FOLLOW THE LINK

Follow the link to the PoPI Act http://bit.ly/1OhOlW5

IN SID E M IN IN G 0 2 | 2016

19

IT & COMMUNICATIONS

Systematic approach to

increased productivity Enterprise resource planning systems (ERPs) have been developed to incorporate various sections of mining operations and could undoubtedly benefit any mine looking to minimise costs. By Mientjie Kleinhans

B

20

Ndlela reckons that an ERP system is the ideal solution for mining companies looking at cost savings and increased productivity. Through an ERP system, a company has access to real-time information that assists in optimising managing processes and, ultimately,

Y ANALYSING INTERNAL processes

Operational excellence comes from a

and productivity levels, compa-

continuous focus on reducing costs, elim-

nies are able to identify possible

inating waste, enhancing asset produc-

Applications

areas that can be managed

tivity, and improving throughput, believes

One of the biggest cost components

more effectively. And various software

Thabo Ndlela, director, IFS Africa. “To

of a mine is the use of energy. With an

packages are available to assist, like ERPs

break through the capability constraints

ERP system, it is possible to balance the

that have been developed to manage

holding them back, mining companies

raw materials that come in, the ma-

enterprise, human, asset and financial

should invest in technology to build organ-

chinery that is running and the desired

resources, among others. More and more

isational capacity, and in training and skills

output. This is done by managing the

mining companies have deployed these

development to build the capabilities of

supply and demand, and the process

systems for obvious reasons.

their people,” adds Ndela.

in between, explains Ndlela.

making better business decisions.

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IT & COMMUNICATIONS Thabo Ndlela, IFS Africa

be a shutdown. Thereby, I schedule the people and machine availability ac-

“Energy con-

cording to machine demand. Further-

sumption in

more, the ERP is able to specify what

mines is known

was repaired and what still needs to be

to be huge.

repaired, and when,” says Ndlela.

With an ERP system, the mines can plan the consumption with production scheduling. The system gives you information on where you

Going one step further with the system means that managers have access to the types of parts and which artisans are needed, along with whatever else is necessary to maintain a specific machine.

Then, the artisans themselves also have

can optimise energy savings and plan

access to procedures and other crucial

production better, through the production

information, depending on the amount of

scheduling tool.

access granted by the administrators.

“For mines to gear themselves to be more profitable, under the current cir-

Wearables benefits

cumstances where the mineral pricing is

Instead of walking around with pieces of

actually low, simply means that they have

paper on clipboards, people have access

to optimise their processes. This means

to these systems through wearables, such

having to produce more for less. And, to

as mobile phones, tablets, smart watches

be able to do that, one needs an ERP

and other technology. This means artisans

system that will assist in streamlining the

have access to manuals, certain proce-

processes,” says Ndlela.

dures, and can actually give feedback

He uses an example where six mines in the same area can be managed by one

reports in real time. The wearables inter-

Inland and offshore mines benefit from software that assists with their operations

face with the software in the back.

system and one person, instead of six dif-

“Even third parties, like subcontractors,

areas that can be covered by an ERP

ferent people with their different systems.

may use such systems for job cards. The

system, according to Ndlela, include:

Real-time information and the visibility of

system will automatically capture the nec-

• enterprise-wide visibility

information throughout all the mines make

essary information, update the job card

• real-time operational data

it possible for one person to manage it all.

and issue an invoice, leading to faster

• integrated asset management

payment,” explains Ndlela.

• support for digital devices

Another example of where an ERP system is extremely useful is in human

• tailoring information to people’s roles

resources departments. “During strikes or

Cloud

natural disasters, mines are able to see,

The next step in ERP systems is cloud ERP

in real time, which people are still in the

systems. Stephen Corrigan, managing

mine, or who attended which shift. This is

director, Palladium Business Solutions, pre-

crucial information that is needed imme-

dicts that on-premise ERP systems will get

Future trends

diately. Other information, such as who

the ‘legacy’ label.

While mechanisation and computer-

belongs to which union, can also be man-

“As cloud computing adoption in the

• bringing in new technologies • enabling change through agile systems.

isation are the current trends, Ndlela

aged by one person, in real time, even

ERP arena increases, the technical edges

predits the future trend in mining to be

across different mines,” explains Ndlela.

that early adopters achieved narrow a

digitisation. “While computerisation is

bit, while the disadvantages typical of

about replacing people with computers,

new technology also stabilise. This got us

digitisation is about generating digital

Asset management is another area where

thinking about how technical innovations

information where computers can learn

mines are able to save costs and increase

have changed the definition of ‘business

to perform certain functions, based on

productivity. Ndlela says that an ERP sys-

as usual’ over the years. As new tech-

what they learn. An example is big data

tem can plan production, matching it with

nology disrupts the status quo, the once

and big data analytics – where comput-

machine availability. This can be planned

cutting-edge tools, processes and business

ers make decisions on behalf of people.

by considering production demand and

models are retired,” says Corrigan.

With big data, the computer generates

Asset management

the availability of people, spare parts and machinery.

He continues that cloud ERP is an ap-

information that a human will never

proach to ERP that makes use of cloud

know – things we can never see with the

“With such a system,

computing platforms and services to pro-

naked eye,” says Ndlela.

I can, for instance,

vide a business with more flexible business

ERP systems allow companies to

process transformation. “Cloud-based ERP

improve productivity and processes

delay some of the people coming in

benefits customers by providing applica-

through proper planning – thereby sav-

for a certain shift

tion scalability and reduced hardware

ing the company costs in the long run.

if I know there will

costs,” says Corrigan.

“By improving processes, companies are

Stephan Corrigan, Palladium Business Solutions

Processes

able to increase productivity with the real-time information available, which

Like any other software, the ERP systems

allows people to make better business

focus on specific mining areas. The seven

decisions,” concludes Ndlela.

IN SID E M IN IN G 0 2 | 2016

21

MINE AUTOMATION

Fleeting solutions for

lasting efficiency

Fleet management systems have proved to be a worthwhile investment. But now, fleet companies have taken it one step further by adding valuable features that assist in better decision-making. By Mientjie Kleinhans

ing is constant.

• A graphical display shows each machine’s location.

• Machine travel time management is factored in during a rapid change in the mining programme.

F

• Truck and shovel fleet assignment com-

LEET MANAGEMENT SYSTEMS do

Nel, manager: Fleetmatic, Bell Equipment,

mands are sent direct to the operators

more than just track equipment.

says that, with the correct fleet manage-

for the movement and management of

They assist with data collection, and

ment system, both production and safety

save time, which assists with better

can be addressed and reported on, while

• Accurate material tracking takes place.

production can be measured.

• Decision-support modelling tools help

production and decision-making.

A fleet management system is a simple,

logical user interface that enables mines to

22

• Machine and material production report-

Aucamp lists some of the key parameters that should be featured in a fleet manage-

track and manage a range of operational

ment system, such as the Cat MineStar:

parameters, by using web-based reporting

• Real-time production information is pro-

small to large fleets and groups.

evaluate the impact of changes to the production plan.

• There is a reduction in tyre wear management costs by ensuring that each

tools, according to Vicky Aucamp, opera-

vided during the shift for improved man-

truck or loader does not exceed its oper-

tions manager, Barloworld Equipment. Philip

agement control.

ational workload.

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MINE AUTOMATION

component, according to Nel. He says that the component is usually GPSbased, but can sometimes be based on a cellular triangulation platform.

“Once the vehicle location, direction and speed are determined from the GPS components, additional tracking capabilities transmit this information to a fleet management software application.

“Methods for data transmission include both terrestrial and satellite. Satellite tracking communications, while more expensive, are critical if vehicle tracking is to work in remote environments withHenry Smith, sales and marketing exec-

live and planned schedules. Real-time,

out interruption. Users can see actual,

utive, Skygistics, says that mining fleet

reliable production statistics are gener-

real-time locations of their fleet on a

managers can benefit from multifacet-

ated without human interactions. This is

map. This is often used to quickly re-

ed tracking, surveillance and monitoring

one of the great benefits of a fleet man-

spond to events in the field,” says Nel.

hardware, and software that provides

agement system.

real-time feedback, cost-effectively.

Aucamp explains, “Most machines are

“Other benefits of such a system in-

equipped with OEM-designed on-board

clude the ability to identify and respond

intelligence, in which case the data is

to current over- and under-trucking situ-

extracted through sensor interfaces.

“Extensive research is done on the

ations, as well as accurate material

Data is transmitted through the Wi-Fi

equipment and vehicle-monitoring

flow monitoring and resource reconcilia-

network to the application where it is

needs of each mining customer, so that

tion, all the way from the pit through

processed to provide the features and

the right asset management solution,

to beneficiation and final product,”

benefits.”

using a high-level fleet management

states Aucamp.

Productivity boost

telemetry application, can be sup-

Most modern machines make use of a controller area network, “This enables

plied,” says Smith. “Monitoring and

Underground

telemetry solutions play an increasingly

Whether a system works effectively

formation in the engine on the network,

important role in facilitating increased

underground and in remote mines de-

and there is, therefore, no need to fix

fleet productivity.”

pends on the communication

Nel adds that fleet management

media used. “The customer

systems offer mining companies an im-

needs to ensure that they spec-

provement of efficiency, productivity

ify the application beforehand.

and reduces operational costs. It also

Some solution providers make

offers increased safety by better man-

use of cellular networks, which

agement of drivers, and the speed that

are coverage dependant. Oth-

the equipment is operated in.

ers make use of satellite, which

“For example, Bell ADTs have an inte-

the device to receive all the sensor in-

“Monitoring and telemetry solutions play an increasingly important role in facilitating increased fleet productivity.”

offers a worldwide solution, but is not

any additional sensors after production,”

grated accelerometer and can prevent

suitable for underground. Underground

says Nel. Aucamp points out that where

the bin from being tipped, should the

machines will require, for example, a

machines are not equipped with sensors,

angle of the machine lean excessively

Wi-Fi network solution with routers in

sensors can be retrofitted.

to one side. This prevents a machine’s

strategic places to transmit data under-

rear end from rolling over – another

ground,” explains Nel.

innovation in keeping the machine

Aucamp says that the MineStar Fleet

Operators’ involvement Nel believes that it is best to involve the

operating in a safe condition, and pre-

Command module contains systems

drivers with such a system and to give

venting lost time due to damage on a

that are highly effective in underground

them individual targets to meet, and then

machine,” says Nel.

operations. “Command for under-

to recondition them accordingly. Au-

Aucamp says the system focuses on

ground was developed out of the need

camp says the system provides the op-

safety by tracking shift activity, main-

to reduce human exposure to injury

erator with an in-cab display screen that

tenance inspections and operator ma-

by creating a semi-autonomous oper-

guides them on the shortest, most effec-

chine-type licences. She explains that

ating environment via a remote-control

tive routes. This panel will also display any

the operators need to be certified for

system interface. This removes operators

alert or message coming from either the

each specific machine class and these

from hazardous environments and allows

machine or the control room.

licences need to be renewed every

them to work in a more comfortable,

This technology is ready for the mining

two years.

ergonomic, remote operator station.”

industry to adopt and implement into dai-

“A suite of tools is available to translate production plans and requirements into

The most basic function in all fleet management systems is the vehicle tracking

ly activities to increase production and safety, among others, on the mines.

IN SID E M IN IN G 0 2 | 2016

23

MINE AUTOMATION

Avoiding collisions

at all costs

Although essential to a mine’s productivity, large vehicles have considerable blind spots. Collision avoidance technology is critical to prevent accidents and create a safer working environment. Some new developments have followed amendments to trackless mobile machinery legislation. By Mpinane Senkhane

W

ITHOUT A DOUBT,

safety and increased productivity

are still a result of the interaction

operators of mining

are of high priority. The develop-

between humans and mining

machinery have to

ment and application of systems

equipment. The variety of acci-

accomplish daunt-

that protect machinery and oper-

dents demands a combination of

ing, risky tasks as a part of the work

ators from collisions and accidents

technologies to assist operators

process, particularly where large

on mining operations are more

and mitigate risks. A particular

haul trucks are interfacing with

relevant now than ever.

focus needs to be placed on

smaller vehicles and personnel

24

the human factors. Systems that

on foot. Even with the best efforts

The human element

of these operators, collisions are

Despite the fact that approxi-

manoeuvre mining machinery

a major industry concern. Colli-

mately 80% of accidents on mining

need to be interactive, visual and

sion avoidance technology is a

operations are related to human

operate in real time.

necessity in mining operations,

judgement, and the circumstanc-

following the Department of Min-

es around accidents are diverse,

uct manager, Trysome Auto Elec-

eral Resources’ (DMR) trackless

collision avoidance technologies

trical, tells Inside Mining the DMR’s

mobile machinery (TMM) safety

can curb a significant percentage

legislation catapulted a number of

regulations pertaining to all mining

of these accidents. Proximity de-

operations to adopt a much more

operations. The legislation was

tection systems on heavy mining

extensive approach to safety, and

implemented particularly because

vehicles have been focused on in

especially collision avoidance on

accidents on mine sites remain a

the past; however, the majority of

mining operations. With excess of

severe problem in South Africa and

collision-related fatalities in mines

12 000 units placed in operations

INS I DE MI N I N G 0 2 | 2 0 1 6

actively assist operators to safely

Johan Momberg, SAFEmine prod-

MINE AUTOMATION

communication below ground is far too limited to allow the technology to operate in real time.

LEFT Becker Mining’s CAS system provides an early warning indication that alerts the operator to the presence and number of personnel and vehicles in the immediate vicinity

Proximity detection SICK Automation boasts a family of turnkey collision

Tag transmissions

awareness and opera-

At Becker Mining, all miners and ve-

tor guidance systems for mining equipment; Mark Madeley, marketing and Div 8 in South Africa, Trysome, contracted by

hicles entering the mine are required to have an encoded transmitter tag fitted. The company says this tag trans-

manager, SICK Automation,

mits a unique identification code at

says, “The CAS Series gives the

approximately one second intervals.

SAFEMine, has distributed, installed and

mine operators the leeway to be as

The tag has a transmission range of

maintained a number of collision avoid-

productive as possible, while reducing

up to 100 metres and the transmission

ance systems across the country.

downtime due to potential equipment

time is sufficiently short to ensure min-

“We are non-negotiable on safety

damage.” SICK’s collision avoidance

imal collision of multiple tags. Becker

and have adopted a real-time system

systems include excavator protection

says the CAS receivers will detect all

to achieve our safety deliverables; it is

including shovels, truck protection and

variants of Becker RFID active tags

important for the technology to adopt

wheel loader protection due to the

including vehicle tags, cap-lamp

a dynamic safety zone approach,”

fact that loading within close proximity

tags and personal standalone tags

says Momberg.

of moving trucks, dozer graders and

and, once detected, the CAS will

high walls presents various challenges

alert the driver via both audible and

to operators. For excavator protection,

visual alarms.

All In one Trysome’s ‘all-in-one’ Collision Avoidance

SICK Automation uses the MINESIC100

System (CAS) is developed in response

EPS, a high-precision proximity detec-

determine the type and quantity of

to the mining and construction industries

tion system that monitors the shovel’s

personnel/vehicles within close prox-

demands for safer working environments.

surroundings and identifies potential

imity to his vehicle. A UHF antenna,

The system can be installed in its entirety

collisions with other vehicles, includ-

mounted on the CAS-enabled vehicle,

on mining sites or as separate stan-

ing stationary ones.

dalone units. The CAS is based on global

Truck protection is

navigation satellite systems technology,

particularly challeng-

and warns of possible collisions with

ing because of the

visual and audible indications, providing

sheer size and height

full, 360-degree protection without the

of the trucks, making

hindrance of speed or visibility restric-

visibility difficult. This

tions. Essentially, it is a single integrated

technology monitors

system with two functions – the traffic

critical zones sur-

awareness function and the collision

rounding the vehicle

avoidance function.

and considers the

What is especially different about the SAFEMine system is the Dynamic

Becker’s CAS allows a driver to quickly

While there are numerous safety systems available for mine operators, the chosen system should be tailored to meet a site's specific needs and synchronise with regional mining trends

driving situation.

In collision avoidance, not all technol-

detects closely located tags transmitting from personnel or vehicles, and then the

Safety Zone (DSZ), which consists of the

ogy has the capacity to provide a full

driver is alerted to the colocated tags by

predicted trajectory of each mining

360-degree view of the surroundings

a flashing light as well as an audio alarm.

vehicle; projecting the direction of

for the operator to be able to make

movement to the point where the vehi-

informed decisions in mining opera-

that allow for a tailored safety system for

cle can be brought to a complete stop,

tions. In the mining environment, it is

each mining operation. Most important,

taking vehicle type, reaction time and

impossible for the vehicle operator to

especially in Southern Africa, is to make

road inclination into account. In addi-

be fully aware of all personnel and

sure that the technology used is in tune

tion, the DSZ takes into consideration

light vehicles in the immediate vicinity.

with the general trend in the region’s

the velocity, orientation, turn rate, and

CASs need to provide an early warning

mining industry, where mining operations

dimension of all vehicles. The trajectory

indication that alerts the operator to

are opting for increased mechanisation,

of the vehicle is then extrapolated into

the presence and number of personnel

automation and control. Equipment with

the future to detect potentially dan-

and vehicles in the immediate vicinity.

multiple functions is imperative, especial-

gerous situations. However, there are

It is imperative that any CAS be able to

ly where value for money is concerned,

some limitations to collision awareness

alert the driver sufficiently, adequately

as well as the maintenance of the tech-

systems. Momberg indicates that the

and timeously, so even the driver can

nology. This ensures it is adaptable to a

CAS currently only operates in open-pit

determine the level of danger and re-

number of different types of machinery

operations due to the fact that satellite

spond immediately.

or equipment.

There are various options on the market

IN SID E M IN IN G 0 2 | 2016

25

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ALTERNATIVE ENERGY 100 95 75

25 5 0

Fuel cell technology

reinvented

Although hydrogen fuel cell technology has been around for decades, it has recently been developed to be implemented in various industries, including mines. This technology is ideal for remote areas and offers various environmental benefits. By Mientjie Kleinhans

T

HE TECHNOLOGY itself has been

Uniqueness

in existence for more than a

What makes the hydrogen fuel cell tech-

decade. Fuel cells were first

nology different is that it creates electricity

used commercially by NASA in

chemically, rather than through com-

the early 1960s to generate power for

bustion. Fuel cells produce electricity on

probes, satellites and space capsules.

an ongoing basis without having to be

Today, this technology is used as backup power in telecommunication and IT

version takes place, offering ease of use

senger or public transport vehicles. The

and simplicity for the end user. Because it

materials handling industrial machinery

produces no harmful emissions, hydrogen

and the electrons arriving through the

is yet another segment suitable to the

fuel cell technology provides an environ-

external circuit to form water.

application of hydrogen fuel cell tech-

mentally friendly alternative to diesel or

nology, explains Andre Grzesiak, business

other hydrocarbon-fuelled engines. The

Industrial applications

development manager, Air Products

fuel cells run noise-free with a high degree

Fuel cells are ideally suited for provid-

South Africa. He adds that operating

of reliability and require little or no mainte-

ing back-up power to information and

underground mining vehicles with this

nance,” says Grzesiak.

control systems technology, as those of control systems include IT technology

He explains that a fuel cell is a device that

within financial centres, metro trains

generates electricity by a chemical re-

control and signalling, traffic controls,

a major and even critical problem. The

action. Every fuel cell has two electrodes:

vaccines or critical medication at low

other energy mode that tends to be used

the anode (positively charged) and the

temperature storage. In the mining in-

cathode (negatively charged). “The

dustry, fuel cells could provide effective

reactions that produce electricity take

back-up power to computerised numer-

place at the two electrodes. Multiple fuel

ic control systems.

handling vehicles is battery power,” says Grzesiak.

cells are usually assembled into a stack

He explains

and generate direct current (DC). This

an efficient and economically viable

that the bat-

operating principle is the reversal of water

system of hydrogen supply and distribu-

teries require

electrolysis,” explains Grzesiak.

tion. Grzesiak explains that Air Products

eight hours

A stream of hydrogen fuel is delivered to

Fuel cell technology is dependent on

South Africa is committed to extensive

the anode side and split into protons and

development work alongside other

electrons. The electrons travel along an

stakeholders in the above-mentioned

external load circuit to the cathode side,

industrial application areas. Air Products

thus creating the current output of the

is currently finalising a comprehensive

fuel cell. Meanwhile, a stream of oxygen

supply solution study that is both scala-

has major cost implications for

is delivered to the cathode side. At the

ble and economical for the end user,

a mine, as recharging a battery would

cathode side, oxygen molecules react

including for a critical sector of the

mean the loss of one entire work shift.”

with the protons travelling through the cell

mining industry.

to recharge, as opposed to 20 minutes to refuel with hydrogen.

“This time-saving factor

5

How it works

consume small energy units. Examples

diesel engines, exhaust pollution can be

for underground materials

25

BELOW LEFT Andre Grzesiak, Air Products SA

it has found its use to drive either pas-

“In mining, if vehicles are equipped with

75

ABOVE Hydrogen fuel cell

of hydrogen, the electrochemical con-

or toxic emissions.

95

“As long as there is a continuous supply

networks infrastructure. In mobility sectors,

technology would generate no pollution

100

recharged, unlike batteries.

0

IN SID E M IN IN G 0 2 | 2016

27

DRILLING & BLASTING

W

ITH SO MANY BLAST plan-

activities, such as drilling – is designed to

With the current suite of software avail-

ning software options to

facilitate the interaction between a mine

able to AEL, a blast can be planned,

choose from, it is impor-

and its explosives supplier to be able to

recorded, modelled and predicted, from

tant to look at the bigger

‘plan to blast and blast to plan’ and to

start to end, with proven techniques

picture regarding the software’s function-

improve the efficiency of mining opera-

based on experience and the latest in

ality, rather than the cost. Although blast-

tions,” says Tose.

mathematical modelling. Blast designs

ing is still very much a science on its own,

can be directly compared to the out-

it has become much more manageable

Benefits

through blast planning software.

He explains that the benefits of blast

highlighting any discrepancies between

planning software are immense as it pro-

planning and execution in order to fine-

Optimisation, AEL Mining Services, says

vides value not only on the bench, but

tune future blasts.

that, traditionally, drilling and blasting on

at every step of the mine-to-mill process.

a surface mine is a difficult process, with

“Mining engineers can identify the size of

User-friendly

lots of information that is difficult to bring

rock they require at crushing and, by us-

Tony Rorke, director: Blasting Technolo-

together. While it forms the main pro-

ing the software, explosive engineers can

gy, BME, wrote a technical paper that

duction activity of the mine, it involves

work backwards to identify the correct

details the application of the company’s

repetitive tasks that are often poorly

measures of energy, drilling, blast-hole

software package. In the paper, he

completed, with minimal compliance

positioning and vibration management

writes that the software features various

to plan.

to achieve this goal.

elements, making the software easy to

Simon Tose, manager: Global Mining

“An intelligence system – which groups

come of the blast through such software,

“Furthermore, the ability to predict

use. “BlastMap III is designed to be easy

different software packages together,

what the outcome of a given blast de-

to use, with flexibility to move between

like our company’s system, along with

sign would be is crucial in determining

design elements without impacting the

other software packages used in other

the suitability of a specific blast design.

integrity of the design,” writes Rorke.

Planning ideal

blasts

28

INS I DE MI N I N G 0 2 | 2 0 1 6

Blast planning software has evolved significantly over the last two decades. Each upgrade has brought new features and, today, the benefits of using this software have proved its immense value in different areas of the mining process.

DRILLING & BLASTING “The ability to predict what the outcome of a given blast design would be is crucial in determining the suitability of a specific blast approach.”

LEFT Simon Tose, AEL Mining Services BELOW Tony Rorke, director: Blasting Technology, BME

“The second is the ability to access information from around the mine in real time in order to make quick, yet informed, decisions. By improving onsite communication channels, such

He adds that the basic principles in

Main objective

designing a blast are very similar to the

Tose says that the main technological

able to see information such as drilling

actual process of undertaking a blast

objective of the current developments

depths or the number of holes being

in the pit. Furthermore, just to mention

in blast planning software is to uniquely

charged in real time on their mobile

one of the benefits of the software,

link business intelligence concepts with

devices or computers,” says Tose.

each blast design is saved as a discrete

the processing of data from blasts into

file. “This is done to make it easy to

a real-time data capturing, monitoring

safety benefit, as operators would

share designs between engineers for

and knowledge management frame-

also be able to view the real-time

review and for easily providing the de-

work. He adds that this is part of the

locations of employees in the event

signs to blasting crews,” writes Rorke.

move away from the development

of an emergency in order to make

“Our software has been designed

of software programs that attempt

better decisions. In addition to these

with the end user in mind, to make the

to cover every area of mining opera-

three major developments, he also

user experience as simple as possible,

tions, which is unwieldy, toward spe-

expects an increase in the number

despite dealing with complex data.

cialised programs that contribute to

of educational institutions that offer

While each software program we have

an overall system.

courses in blast planning software

available differs, some user-friendly fea-

“This system should, essentially, collate

tures include a touch-screen interface

all information pertaining to

and forecasting models to provide

blasting electronically and

visual representations of the out-

reduce the unknown effects

come of a planned blast to the user,”

in blasts through predictive

says Tose.

modelling and the encap-

Software integration

He adds that this also has a major

and, by association, the number of

sulation of design principles.

Such a system would also

Rorke explains that BME’s software

provide a database where

has been designed to integrate with

authorised mine employees

other software applications through

would be able to share and

import and export of tabulated

collaborate on the data so

data in text, csv, lst, xls and xlsc fort-

as to improve their opera-

matted files.

tions,” says Tose.

Tose says that AEL’s software also

as Wi-Fi and Bluetooth, mines will be

integrates with other systems, as the

The future

company recognises that big data

The future predictions of

encompasses all aspects of the min-

blast planning hold some

ing practice. “However, the data

interesting, innovative ideas.

alone is not much help to mining op-

“In the future, we expect

erations without the ability to display

two major areas of develop-

it in a way that is informative to the

ment in terms of blast planning software.

trainers of such courses. And he ex-

user. Our software addresses this issue

The first is the increasing development

pects that it will become a core skill

by providing a one-stop overview

of 3D visualisation, which we expect to

set for all explosive engineers. Tose ex-

of the current status of a blast with

launch in the first quarter of 2017, to pro-

pects to see that greater levels of on-

data that includes geological, drilling,

vide customers with a holistic overview of

site training will increase the customer

blasting, loading and hauling data.”

both the mine and the blast.

ownership of such software.

IN SID E M IN IN G 0 2 | 2016

29

EVENTS

SHEQ out these IT solutions

C

LIENTS ARE FORCED to adopt

BELOW LEFT Wouter Retief, DataSaint

installation and monthly

multiple software solutions

RIGHT Claire Saunders, mySolutions

costs), and provides real-time processing

to ensure that their needs that an organisation would typically expe-

and comprehensive

of information becoming disjointed. Ac-

rience various challenges when evaluating

reporting (includ-

cording to Claire Saunders, national sales

an IT software program. These may include

ing KPI dashboard

manager, mySolutions, the gold standard

the high costs involved in the purchase,

reports). The software

for a suitable safety, health, environment

installation, operation and ongoing support

and kiosk are easy to use,

and quality program for mining would

of the product. Once purchased, the client

self-servicing and user-friendly.

be one that offers offline access via a

may find the product to be resource-inten-

mobile device.

sive (in terms of hardware and labour) and

Exhibiting solutions

too cumbersome to use. Clients may also

An important point of contact for suppli-

find that the program does not provide

ers and potential customers is exhibitions,

sufficient business controls.

where suppliers showcase their latest solu-

are met, with the downside

Many mining sites are in remote areas, which inhibits access to the software solutions available today. Many solutions are available in web browsers and are readily

Management and control

tions and engage with customers. “A-OSH Expo aims to provide a turnkey SHEQ

As the suppliers of ppe2go, DataSaint has

solution for mines. Among others, the ex-

accessible, but

30 years’ experience working with business

hibition is a showcase for reputable SHEQ

do not cater

management software solutions for the

IT suppliers and visitors are guaranteed to

for the offline

mining industry. “We know that the man-

find suitable risk mitigation solutions,” says

access that

agement and control of the issuing of PPE

Joshua Low, event director: A-OSH Expo,

these remote

(personal protective equipment) can be

Specialised Exhibitions.

sites would need.

Wouter Retief, director, DataSaint, says

a challenge for many industries, especially

A-OSH Expo South Africa 2016 will

the mining industry. The product is quick

take place from 24 to 26 May at the

to implement, affordable (in terms of both

Gallagher Convention Centre.

IN SID E M IN IN G 0 2 | 2016

31

EVENTS

An environmental challenge The conference will serve as a platform for speakers and delegates to discuss and debate on environmental threats caused by mining and address waste management and air pollution issues. Regulators and mining companies will also have the opportunity to talk about environmental strategies to ensure compliance. Some of the challenges that will be addressed include:

O

• environmental management • enforcement through change VER A TWO-DAY EVENT, the

the event will include representatives

6th Annual Enviromining

from Mintek, the Department of Water

Conference will address

and Sanitation, the Gauteng Depart-

management • mining rehabilitation and accelerated environmental performance

ment of Agriculture and Rural Develop-

• successful stakeholder relationships.

in the mining industry. Key speakers

ment, and UNEP South Africa. There will

The event will take place on 15 and 16

from regulatory departments will also

also be speakers from private compa-

March at the Indaba Hotel, Fourways,

discuss the challenges and possible

nies and mines from South Africa and

Johannesburg, and registration is cur-

solutions. The confirmed speakers at

other parts of Africa.

rently open.

environmental challenges

Water under discussion

T

Over 26 African countries will be rep-

planning and strategising, implementation

see delegates from various industries,

and goal-settings are only a few of the

including African water utilities, opera-

topics that will be discussed at the con-

tors, water boards and municipalities.

ference. Top industry keynote speakers

This is an opportunity to identify, evalu-

will address some of the sector’s burning

ate and invest in the most appropriate

issues, and the exhibition provides oppor-

technologies to achieve objectives

tunities to discuss solutions. Some of the

regarding the effective and efficient

speakers include:

management of water.

HE WATER SHOW Africa 2016, to be

•P rof Pierre Bérubé, director of UBC/

held on 15 and 16 March, will look

UNBC Environmental Engineering

at ways to better manage and

Programme at the University of Brit-

preserve water, as well as other

ish Columbia, Canada

pressing matters.

Essential elements, quality management,

resented at the conference, which will

The show will take place at the

• Ed McCormick, president of the Water Environmental Foundation, USA

Sandton Convention Centre, Johan-

• Dr Hilonga Askwar, innovator and

nesburg, on 15 and 16 March, and it

academic at the Nelson Mande-

expects to welcome over 6 000 dele-

la Africa Institute of Science and

gates from all over world, particularly

Technology, Tanzania

Africa. The exhibition will cover

• Prof Hamanth Kasan, president of the

thousands of square metres within

African Water Association of South Africa

three halls.

INDEX TO ADVERTISERS A-OSH Expo Barloworld Power Industrial Department of Water & Sanitation

31 IFC 2

Energyst 6

32

INS I DE MI N I N G 0 2 | 2 0 1 6

KSB Pumps & Valves

14

Marsh SA

26

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22

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12

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