Inside Mining July 2016

www.miningne.ws

AF R IC AN U PDATES ON TH E

BAKUBUNG PLATINUM MINE Community ties that bind

NIGEL GOLD MINE Mining every last bit

BISIE TIN PROJECT Welcome to the jungle

ISSN 1999-8872 • R50.00 (incl. VAT) • Vol. 09 • No. 07 • July 2016

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

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CONTENTS

AFR IC AN UP DATES ON THE G ROUND A ND UNDERG ROUND

08

16

NEW VACUUM FOR LABS The Turbolab 80 workbench variant is a compact, easily operated high-vacuum system.

30 EDITOR’S COMMENT

MATERIALS HANDLING

3

20

A big thank you

Controlling the blaze

COVER STORY

ENERGY

4

23

Smarter drilling

AFRICA ROUND-UP 6

News from around the continent

ECONOMICS, FINANCE & RISK 8

Gold’s key positive factors

LEGISLATION 10

A snuffer to the once golden flame?

www.miningne.ws

24

Causes of pipe failure

26

Dewatering lines in mines

INFRASTRUCTURE & CONSTRUCTION 29

All-round coating solutions

12

Close community relationships

30 Sustainability’s growing role

14

Mining every last bit

AFR IC AN UPDATES ON THE

BAKUBUNG PLATINUM MINE Binding ties with the community

GROUND AND UNDERGROUND

ATLAS COPCO Smarter drilling

NIGEL GOLD MINE Mining to the very last bit

BISIE TIN PROJECT Welcome to the jungle

in efficiency ISSN 1999-8872 • R50.00 (incl. VAT) • Vol. 09 • No. 07 • July 2016

FOCUS ON AFRICA: DRC

MARKET NEWS

16

33

News from mining's movers and shakers

THOUGHT LEADERSHIP

EVENTS

19

36

Junior mining indaba

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

ON THE COVER p4

PIPES, PUMPS & VALVES

PROJECT MANAGEMENT

Internet revolution: fact or fiction?

2016

True cost of solar power

COMMODITY: GOLD & PGMs

Welcome to the jungle

JUNE

The new drill rig from Atlas Copco combines brains and brawn to offer mines increased productivity, lower production and maintenance costs, and safer working conditions.

Endorsed by IN SID E M IN IN G 0 7 | 2016

1

EDITOR'S COMMENT

Publisher Elizabeth Shorten

A big thank you

Editor Mientjie Kleinhans Assistant editor Mpinane Senkhane Head of design Beren Bauermeister Designer Ramon Chinian Chief sub-editor Tristan Snijders Sub-editor Morgan Carter Contributors Millien Hendricks, Amanda Scribante, Barry van Jaarsveld Client services & production manager Antois-Leigh Botma Production coordinator Jacqueline Modise Marketing & digital manager Philip Rosenberg Financial manager Andrew Lobban Administration Tonya Hebenton Distribution manager Nomsa Masina Distribution coordinator Asha Pursotham Printers United Litho Johannesburg Tel: +27 (0)11 402 0571 ___________________________________ Advertising Sales

Annemarie Prins Tel: +27 (0)11 233 2600 annemarie@3smedia.co.za ___________________________________ No. 9 3rd Avenue, Rivonia 2191 PO Box 92026, Norwood 2117 Tel: +27 (0)11 233 2600 Fax: +27 (0)11 234 7274/5 www.3smedia.co.za ___________________________________

T

HE LILY MINE tragedy has affected many more people than just the

ABOVE Tshego Motsoenyane, COO, Ncamiso Trading

families of the victims who have been missing for some months

The mine is very conscious of not

now. Employees have also been left

repeating the mistakes of the past

without an income. This story has touched

and believes in partnering with the

the hearts of many people and a great

local community. Read how the mine

deal of groceries were donated to assist

has assisted the community in various

the employees in Barberton.

projects – particularly construction and

A big thank to all the people who gave up their time and donated groceries

agricultural projects – on page 12.

Inside Mining also visits the small East

to #LilyMineFoodDrive. The groceries

Rand town of Nigel. This town once

have been delivered to the mine and

offered the richest gold mines in the

the people appreciated the act of

world. The history of how

kindness tremendously.

the town started is quite

In particular, Inside Mining would

interesting: apparently, a

Annual subscription:

like to thank the following companies’

farmer by the name of

South Africa: R550.00

employees for their selfless support:

Petrus Johannes Marais

(incl VAT & postage)

• Serendipity

discovered gold on

African countries: US$80

• Magna Carta

his farm and started his

Foreign: US$100

• Ngage

own company in 1888.

Email: subs@3smedia.co.za

• The Media Shop

ISSN 1999-8872 Inside Mining

• Red Cherry

named his company Nigel after

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.

• Ncamiso Trading.

novel he had read, The Fortunes of Nigel by Sir Walter Scott. Today, the only

we discuss the findings of what will be the

remembrances of these fortunes are the

richest and second biggest measured

mine dumps in the area. These, too, are

tin reserve in the world, located in

disappearing, as small-scale miners are

a rain forest within the Democratic

reworking the dumps for various reasons.

Republic of the Congo. The mine

makes a living by mining the dumps for

until the construction of the access

the gold left in the waste. Read more

road is finished.

on page 13. This edition is packed with

body and, with the price of tin recently recovered, the reserve is quite a find.

many interesting articles that cover various sectors of the mining industry.

Remember to visit our digital portal

Read about the challenges that the mine

– www.miningne.ws – for more mine

has been dealing with on page 16.

industry news.

Another project that is still under construction is Wesizwe Platinum’s Although production at the mine is

www.facebook.com/pages/ Mining-News

We look at how one small-scale miner

can only be accessed by helicopter

Bakubung Platinum Mine in Rustenburg.

@mining_news

a

On to this month's content. In this issue,

The Bisie Tin Project boasts a 4.5% ore 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 and Facebook page, or follow us on Twitter and have your say.

It is said that he

scheduled for much later, the team at the mine has already started great projects within the local community.

Mientjie Kleinhans FOLLOW THE LINK For updated news: www.miningne.ws

IN SID E M IN IN G 0 7 | 2016

3

COVER STORY

1

Smarter drilling Smart drill rig technology has reached a new level with Atlas Copco’s new SmartROC D65 and its improved intelligence. The new drill rig combines brains and power to offer mines increased productivity, lower production and maintenance costs, and safer working conditions.

T

says Birnie. The drill rig also shares its intelligent platform with the Atlas Copco Pit Viper and Underground Series.

“The software of the machine can be incorporated with Surface and Rock Manager, from Atlas Copco, or the data can be stored on a virtual server.

HE NEW AUTOMATION technol-

low costs and high output are what all

ogy offers drilling production

mining and quarrying operations yearn

blast, presplit, buffer holes, and

for. “SmartROC is the drill

in-pit grade control with reverse

rig that delivers this in any

circulation. The drill rig is able to locate positions on the bench via satellite as-

drilling application.”

The drill rig optimises

The software is accessible through the company’s CIRTIQ cloud programme and communicates in International Rock Excavation Data Exchange Standard,” says Birnie.

sistance, and it has auto drill functions

drilling and blasting,

such as auto guide alignment and

improves fragmen-

platform and Surface

auto rod handling.

tation and thus im-

Manager enable com-

“This means fewer personnel are

proves on all aspects

required on the drill bench, and re-

of the downstream

al-time communication between the

functions, such as load-

offices and the drill rig,” says Hedley

ing and hauling as well as

Birnie, business line manager: SED,

improved crusher throughput.

Atlas Copco. He further explains that

RIGHT Hedley Birnie, business line manager: SED, Atlas Copco

4

and is the heart of the machine,”

INS I DE MI N I N G 0 7 | 2 0 1 6

The communication

plete fleet management and operation control through Wi-Fi. The intelligent Hole Navigation System (HNS) permits faster set-up and minimises downtime. This feature al-

Smart technology

lows for effective, high-precision drill-

“The Rig Control System (RCS) for drilling

ing in any weather condition. All these

rigs manages the full-auto drill system

features allow the rig to drill on its

COVER STORY own, except for the tramming of the rig from hole to hole. BenchRemote is an option that allows operating the rig from up to 100 metres away – this is ideal for hazardous areas. With this machine, it is possible for one operator to control up to three SmartRoc D65s from one control station.

The machine also adds and extracts rods automatically with Auto Rod Handling, according to the requirements, meaning the machine is

3

less dependent on an operator. “This means less wear on consumables and on the machine itself,” says Rodney Keogh, product manager, Atlas Copco. And, of course, it also means more time savings.

Benefits In a nutshell, this drill rig minimises non-drilling time, thereby increasing productivity. “It removes operator error and, therefore, reduces

2

breakdown time. The autonomous function also has an early warning system, which is fed back to the

1

T he new SmartROC drill with smart technology

2

T he new drill rig optimises drilling and blasting

3

T he Rig Control System manages the full-auto drill system

4

T he new drill offers effective, high-precision drilling in any weather condition

mine office.

This allows for preventative maintenance to be carried out before a catastrophic failure occurs,” explains Keogh.It further reduces production costs due to its relatively reduced diesel consumption and low maintenance costs. “The system

4

controls allow for shorter meantime-to-repair cycles,” says Keogh.

Another benefit of this rig is the low maintenance feature through its self-diagnostic capabilities.

Keogh explains that all the pipes and cables are numbered and are

“The autonomous functions also have an early warning system, which allows for preventative maintenance to be carried out before a catastrophic failure occurs.”

monitored and diagnosed by the RCS system. This allows the opera-

when working long hours. The cabin

Copco Mining and Rock Excava-

tor to find and rectify the problem

features air conditioning, normal

tion Technique Service Division. This

much faster.

wipers with washer, rear-view mirrors

division has over 3 300 technicians

and laminated glass for the front

in over 80 countries and provides

and roof windows.

service solutions according to the

Specifications To go into more details about the

The side and rear windows are

equipment requirements. Pairing this

specifications of the machine, it can

made with toughened glass,” ex-

service with genuine Atlas Copco

drill a hole of 110 mm to 203 mm in

plains Keogh. The cabin also features

parts is a winning combination.

diameter. It also drills from vertical all

a fully adjustable operator’s seat and

the way to horizontal, and four de-

foot rest, and prepared speakers for

grees off horizontal for dewatering.

CD, radio or DVD.

The machine is powered by a Caterpillar turbo-charged diesel engine.

Service

It is also fitted with an Atlas Copco

To ensure that this, or any other Atlas

high-pressure screw compressor.

Copco machine, continuously runs at

“Sitting inside the safety cabin

a standard that ensures optimum pro-

makes one realise that it is not only

ductivity, availability and operational

built for safety, but also comfort,

cost, the company utilises its Atlas

www.atlascopco.co.za

IN SID E M IN IN G 0 7 | 2016

5

MINING NEWS

from around the continent

DEMOCRATIC REPUBLIC OF THE CONGO

copper in the first three months of

gold mines opened by companies

the year, compared with 274 201

like Randgold Resources, AngloGold

tonnes over the same period last

Ashanti and Banro Corporation in

year, the central bank stated. Mean-

the last five years boosted the DRC’s

Copper production in the DRC, Afri-

while, output of cobalt, the metal

industrial gold output from near zero

ca’s top miner of the metal, dropped

used in lithium-ion batteries and of

in 2011 to over 30 tonnes last year.

20% in the first quarter of 2016, while

which the DRC is the world’s leading

Spot gold prices are up 14% this

cobalt and gold output also slumped

producer, fell over 19%, to 16 396

year, but Randgold says it expects

amid low prices and production

tonnes, in the first quarter of 2016.

production at Kibali, the country’s

Q1 copper production slumps 20%

cutbacks, the central bank said in a monthly bulletin.

The declines are hammering the

Benchmark copper on the London Metal Exchange lost 25% of its value in 2015 and is down slightly this year.

largest gold mine, to fall 5% this year because it is mining lower-grade ore.

GHANA

DRC’s economy, which derives 98% of

In response, Glencore’s Katanga

its export earnings from extractive in-

unit, one of the country’s largest

dustries. Last month, the government

copper and cobalt producers, an-

Gold Fields considers buying Iduapriem

proposed a 22% cut to the current

nounced an 18-month suspension of

Gold Fields has indicated it is inter-

year’s budget due to lower-than-ex-

operations last September and other

ested in buying AngloGold Ashanti’s

pected revenues from the mining

large mines have laid off workers.

Iduapriem mine in Ghana, as the

sector and fears of inflation due to exchange rate pressures.

Congo mined 219 009 tonnes of

Quarterly gold production declined

precious metal producer seeks to

to 7 166 kg this year, from 7 801 kg

increase output from West Africa by

last year – an 8% slide. Large, new

about two-thirds, to a million ounces.

The DRC is Africa's top miner of copper

Illegal mining in the DRC

Tenke copper mine in the DRC

6

INS I DE MI NI NG 0 7 | 2 0 1 6

Anglo Gold is the world’s third largest miner of gold

which includes gold, nickel, chrome, diamonds and coal. Zimbabwe ditched its own dollar in favour of the US currency in 2009,

Gold Fields is also looking

to try to put a lid on hyper-

for opportunities to buy

inflation and prevent a

mines in Mali, Burkina

complete meltdown of

Faso and Senegal,

the economy. However,

Alfred Baku, the Jo-

shortages of US bank

hannesburg-based

notes that started in

company’s vice-pres-

March have worsened

ident: West Africa,

and the central bank

said in an interview

has unnerved deposi-

in Accra. AngloGold

tors with plans to intro-

said it doesn’t com-

duce local notes.

ment on speculation

Toindepi Muganyi, pres-

around its assets.

ident, Chamber of Mines,

“We are interested in

told a parliamentary com-

Iduapriem mine because

mittee that banks were taking

of its geographical location

10 to 20 days to clear payments

and nearness to our Tarkwa

for imports by mining companies

mine,” Baku said, referring to one

“with potential production loss of up to

of the group’s existing mines in south-

four months.

ern Ghana. “We believe that it’s logical for us to develop the two. We will be happy to get it.”

Gold Fields’ Tarkwa is the bigger of the two mines, producing 140 000 ounces in the first quarter of this year, compared with Iduapriem’s 46 000 ounces. Gold Fields said, in February, it is looking to buy assets in the regions where it already operates as it tries to increase metal output and lower costs.

AngloGold, the world’s third largest miner of the metal, has taken the Ghanaian government to an international arbitration panel over its failure to secure its Obuasi mine, which is not currently producing gold, from illegal miners. The prob lem has not affected Iduapriem and Tarkwa, about 150 km south of Obuasi.

“If you look at the challenges that AngloGold is facing in Ghana, there may be some who will be skeptical about such a move,” Sibonginkosi Nyanga, a Johannesburg-based analyst at Momentum S.P. Reid said by phone. “If you look at the Ghanaian environment, it is not easy to operate there.”Gold Fields reversed gains and closed 1.6% lower at R60.83 per share

“This will remain a huge potential risk company wasn’t under any pressure to

to the outlook,” Muganyi said. Mining

let go of assets after it sold its Cripple

earned more than half of Zimbabwe’s

Creek & Victor mine in the US to New-

$2.7 billion in foreign earnings in 2015

mont Mining Corp for $820 million last

and a loss of output would damage

year, to pay off debt.

a sector struggling with depressed

“Iduapriem is a solid, well-run mine that generates cash and has a range

Venkatakrishnan previously said the

The central bank says cash shortag-

of promising project options that will

es are caused by the illegal export

generate additional value for us over

of dollars and lower exports at a time

time,” Stewart Bailey, spokesman, An-

when Zimbabwe’s imports are growing,

gloGold, said in an emailed response

resulting in the trade deficit growing

to questions. -Bloomberg

nearly tenfold in the last decade.

ZIMBABWE

Dollar shortage threatens mining production

Charity Jinya, president, Bankers’ Association of Zimbabwe, told the same committee that adopting the rand of South Africa, Zimbabwe’s largest trading

Zimbabwe could lose

partner, would stem the

the equivalent of four

outflow of dollars.

months of mining output this year because an acute dollar shortage has led to delays by banks in processing payments for imports of spare

“We would recommend that the South African rand be used as the main transacting currency.

This would reduce concentration of risk on the US dollar,” Jinya

parts and supplies, the Chamber

said. Zimbabwe was importing small-

of Mines said last month. The prob-

er-value US dollar notes to discourage

lem affects the entire mining sector,

the illegal export of money from Zimbabwe, Jinya said. In May, the

in Johannesburg. AngloGold fell 0.4% to R235.18. AngloGold CEO Srinivasan

commodity prices.

Charity Jinya, president, Bankers’ Association of Zimbabwe

central bank imposed curbs on imports and set limits on cash withdrawals to ease shortages.

IN SID E M IN IN G 0 7 | 2016

7

ECONOMICS, FINANCE & RISK

Gold’s key positive factors The gold index on the JSE has been stronger of late. Could it be that the very metal that built this city and made our economy thrive so many years ago is making a comeback? Millien Hendricks analyses this.

F

OR THE LONGEST time, gold

in a price range of around $1 250 per

These stats reflect that identifiable invest-

has been seen as a so-called

ounce. Over the last year, the prices

ment demand for gold has increased

“safe-haven investment”, pro-

recovered some 20%, as the Federal

since the last strong reported record of

tecting investors from currency

Reserve scaled back expectations for

616 tonnes in 2009.

and, often, economic instability. It is cur-

interest rate rises and after borrow-

rently trading at just below US$1 300 an

ing costs became negative in Japan

Chinese buy-in

ounce; lately, its performance, both in

and Europe. In May, the price of gold

The BBC recently reported that China’s

terms of price fluctuations and demand

reached above $1 300 (the highest in

ICBC Standard Bank (considered the

variations, has overtaken that of its sister

over a year) proving to be one of the

world’s biggest bank by assets) agreed

commodity – platinum.

more resilient commodities in the vola-

to buy a massive vault in London, making

tile environment commodities are cur-

it the first Chinese lender to own a vault

rently operating in.

in London as it looks to grow its precious

In the last 10 years alone, the price of bullion has more than doubled, trading

The World Gold Council has recently

In the last 10 years alone, the price of bullion has more than doubled, trading in a price range of around $1 250 per ounce

8

INS I DE MI N I N G 0 7 | 2 0 1 6

revealed that gold demand was quite

metals business.

The vault, which is in a secret location

robust in the first quarter of the year,

and is being sold by Barclays, can hold

because of the surge in holdings in

up to 2 000 tonnes of gold, silver, platinum

gold-backed exchange-traded fund in-

and palladium. The deal will give ICBC

vestments in the first quarter of this year,

more influence over the trading, pricing

which was not fully offset by a decline

and storage of precious metals. While

in jewellery offtake, total demand rose

China accounts for more than a quarter

significantly in the first quarter of 2016.

of global gold demand, trading of the

ECONOMICS, FINANCE & RISK

Millien Hendricks, credit analyst, RMB

Commodity vs equity

high as brent crude traded above $48

One should also note the difference be-

a barrel, after nearing below $30 earlier

tween the performance of gold yellow metal remains centred out of London and New

shares (equities) and the performance of the actual gold

this year. The prices of gold, silver, platinum, copper and palladium advanced.

An official filing shows that billionaire

York. Economic studies

price (commodity) – this re-

George Soros (chairman of Soros Fund

have evidenced that

lates to most commodities

Management) recently bought a $264

the performance of the

too. The two do not neces-

million stake in Barrick Gold – the world’s

sarily perform at the same

largest gold producer.

US dollar is linked to the performance of gold more than any other contributing factor globally. Some economists

rate; i.e. the share price of a gold producer could be out-performing the increase in

This, in itself, is proof that it is not all doom and gloom in the commodities sector. The point most may argue,

are of the opinion that the Chinese RMB

the actual price of the commodity itself

though, is whether this is sustainable. That

may soon overtake the US dollar as the

or even the reverse.

simply remains to be seen.

key reserve currency in the future.

This is due to the fact that the cost of producing an ounce of gold is generally fixed

Positive assumptions

speaking, does that then mean that

in the medium term for producers while

In conclusion, bearing in mind that it

gold would lose significant value? Or

the trading price of gold fluctuates daily.

is impossible to clearly predict the fu-

If this does happen, hypothetically

could gold then be considered the

For a low-cost producer, this could

ture, one can study trends and make

next key reserve asset, as most central

mean that your revenues and profits

assumptions thereon – this is one

banks already hold gold as an asset?

could be a lot higher on the back of a

such assumption.

In a situation like this, gold could be

higher gold price or could simply not be

considered an excellent diversifier for

affected as much when the price of gold

of gold hit record highs like it did in 2011–

reserve portfolios.

is not as strong.

2013, over the medium term, I do main-

There have also been views that the

For a higher-cost producer, the price

Although I doubt we will see the price

tain that gold remains a safer commodity

risks and uncertainties regarding the UK’s

of gold could possibly fluctuate closer

to invest in – sustaining shocks quite well,

membership in the EU and the US pres-

to the cost of producing an ounce of

even in the most volatile and depressed

idential election may see gold rising to

gold – which effectively means that

of markets.

over $1 300 this year.

you could barely break even or even

In addition, gold demand has re-

suffer losses in a reporting period. The

mained relatively stable for several years

treated for the first time in three weeks

best-performing gold shares are general-

now, especially due to advancements in

while the US dollar grew strong in emerg-

ly the lower-cost producing companies,

technology. Given that we are living in a

ing markets, on the back of positive

among other factors. The Bloomberg

technological age and continue to cre-

news on US rate hike talks from Federal

Commodity Index displayed a six-month

ate technological devices that require

On the other hand, the gold price re-

Reserve policymakers, who indicated at least another two interest-rate hikes this year, starting as early as June.

the use of gold (amongst other things),

Gold is one of the safer commodity investments in these uncertain times

it is safe to say that gold truly remains one of the stronger commodities.

IN SID E M IN IN G 0 7 | 2016

9

LEGISLATION

A snuffer to the once golden flame?

No sooner had the Christmas decorations come down in January 2016 than the world’s attention turned to the dismal state of the global mining industry. Mining companies were hit by plummeting commodities prices, forcing them to slash jobs, costs, capital and expenditure. By Amanda Scribante

M

OODY’S PLACED dozens

Moody’s placing the country on down-

of mining firms across

grade review and an impending “junk”

the world on review for

status. However, when

a credit downgrade. Rio

Moody’s released its affect-

Amanda Scribante, candidate attorney, Baker & McKenzie environmental licences for stock-

Tinto announced that it would scrap its

ed ratings/entities, the gold

progressive dividends policy. Platinum

mining industry again

prices plunged 32%. The commodities

came out top. Anglo

Court, in Nkala and Other

“super cycle”, as it has been dubbed,

American’s Ba3 rating

v Harmony Gold Mining

was clearly over.

outlook was changed

(the Silicosis Judgement),

Back home, the beginning of 2016 saw

piles and residue deposits.

More recently, the High

from negative to

granted the go-ahead

the rand plummet to R17.99 to the US

positive and Anglo-

for class-action suits seek-

dollar. This was coupled with regulatory

Gold Ashanti’s Baa3

uncertainty, a volatile labour environment,

outlook was confirmed

strained infrastructure, the decreasing val-

as stable. Gold’s uptrend

ue of the mining industry on the JSE, and a

continued seeing Harmony

resultant lack of investor confidence in the

Gold, Sibanye Gold, AngloGold

mining industry. The early 2016 headlines

and Gold Fields (the four companies mak-

Development Amendment Bill is currently

were rife with notions of the mining indus-

ing up around10% of the Vectors Gold

before the Portfolio Committee on Mineral

try “fighting for survival” and the difficulty

Miners ETF) stocks all rising more than 35%

Resources, and the draft Mine Health and

of contemplating “a light at the end of

by April 2016.

Safety Bill is being revised based on stake-

the tunnel”.

ing damages from gold companies for up to half a million miners who contracted silicosis and TB underground.

Similarly, the Mineral and Petroleum

holder input.

A golden flame?

The changing legal/ regulatory framework

Despite the volatility, the weaker rand

A key concern of many prospective and

Most notably, however, is the recent

seemed to benefit the gold producers in

current investors is the legal/regulatory

publishing of the draft Reviewed Broad-

South Africa. By March, the dollar price of

uncertainty within South Africa, with the

Based Black Economic Empowerment

gold had increased by 17%, and the JSE

mining industry being a key target of late.

Charter for the South African Mining and

Gold Mining Index continued to climb,

In February 2016, the Constitutional

Mining charter

Minerals Industry, 2016 (the Mining Char-

with all of those stocks rising significantly

Court upheld the Department of Environ-

off the back of the higher gold price. With

mental Affairs’ appeal against a judg-

Although the Mining Charter has the

costs still being incurred in rands, and

ment of the Pretoria High Court setting

vision of achieving a globally competi-

payment being in dollars, South African

aside the publication of the National

tive mining industry that is to benefit all

Environmental Laws Amendment Act

South Africans, it has a number of

(No. 25 of 2014), which was signed into

significant implications:

gold producers were well placed as the lowest-cost

ter) by the Minister of Mineral Resources.

producers in the industry.

force by the president in June 2014. The

As 2016 progressed,

judgment had the effect of confirming

Ownership

however, South

the validity of the Act and, in particular,

Every holder of a mining right must ensure

Africa’s attention

confirmed the validity of the requirement

26% black ownership per mining right

was diverted to

that mining companies must now obtain

(note: this provision is identical to that contained in the Mining Charter, 2010).

Not less than 5% of the 26% must be held by a special purpose vehicle. Notably, the 26% requirement must be

10

INS I DE MI N I N G 0 7 | 2 0 1 6

LEGISLATION met perpetually; i.e. in cases where BBBEE partners have exited, rights holders will be given three years from the date of publication of the revised charter to review their empowerment credentials.

Employment equity

Despite the volatility, the weaker rand seemed to benefit the gold producers in South Africa

• Boards must consist of a minimum of

Priority items As it stands, only strict non-compliance with priority items will result in the entity’s BBBEE status level being discounted by one level. Ownership, housing, living conditions and human resource development have been identified as priority elements.

50% black members with voting rights, of

An end to gold’s golden flame?

which 15% must be black females.

Although gold has had an impressive track

• 60% black representation is required at

record to date, it is uncertain whether it will

senior management level, of which 30%

be able to avoid the repercussions of the

must be black females.

impending legal and regulatory snuffer.

• 75% black representation is required

The almost inevitable need to refi-

at middle management level, of

nance empowerment transactions to

which 38% must be black females.

make allowances for the new require-

• 88% black representation is re-

ments under the Mining Charter could

quired at junior management

prove to have much wider implications in an industry where investment is already

level, of which 44% must be

hard to come by.

black females.

This must also be viewed in light of the

Procurement

potential implications that the Silicosis

Mining right holders will also be expected

Judgement may have. However, it is im-

to procure a minimum of 60% locally man-

portant to note that, in his Budget Vote

ufactured goods from BBBEE-compliant

on 19 April 2016, Minister Zwane stated

manufacturers, while a minimum of 70% of

that the ministry’s main priorities in the

locally manufactured consumables must

• invest 1% of annual turnover towards lo-

year ahead are as follows, “Enhancing

be procured. In terms of services, a mini-

cal community development and labour

regulatory and policy certainty, health

mum of 80% of services must be procured

sending areas

and safety, as well as meaningful eco-

from local companies.

Social development/contributions The mining right holder is to: • invest 5% of annual payroll in essential

• contribute to home ownership option through financial and

nomic transformation”.

Although, on the face of it, the Mining Charter purports to drastically reform the

technical support.

Review of the Mining Charter

mining industry, it does align the Mining Charter with the amended BBBEE Codes of

skills development, with 15% of the 5%

The Minister of the Department of Mineral

Good Practice, which creates consistency

to be invested into the Minister’s Skills De-

Resources may review the Mining Charter

across the various industries and, in turn, has

velopment Fund

as and when the need arises.

the effect of increased legal certainty.

IN SID E M IN IN G 0 7 | 2016

11

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COMMODITY: GOLD & PGMs

Close community relationships While construction is on track at Wesizwe’s Bakubung Platinum Mine in Rustenburg to start operations in 2018, management also develops and supports the community. Mientjie Kleinhans uncovers the great work the mine has been doing and what its future plans are.

T

HE MANAGEMENT of the mine

the company learns about the priori-

realises the importance of building

ties and needs of the community. All

and maintaining relations with the

community support projects are based

community. It is all about the social

on engagement with community fo-

the construction of school ablutions, refur-

licence to operate and good neigh-

rums, interest groups, individuals and

bishment of classrooms, the extension of

bourliness to ensure economic prosperity

government departments.

the health facility and youth centre at the

and mutual benefit, according to Kgomotso Tshaka, executive: Sustainability,

“There is a considerable level of co-planning of projects with specific

local clinic, and construction of farm structures and agricultural facilities. “The projects

Wesizwe Platinum.

sector groups who

are delivered in partnership with relevant

“Therefore, it is

are representative

government departments and community

of the communi-

groups,” says Tshaka.

imperative that the company allows open engagement with community members and interested parties. The company also provides for other engagement vehicles, such as a community newsletter, stakeholder engagement forums, and project

“The idea is not for locals to rely only on the mine for jobs and business opportunities, but for them to become marketable to the whole of South Africa and beyond.”

steering committees including community members,” she says.

She adds that the company is conscious

ty. In the process to develop and

3. Business and skills development

implement com-

Accredited training has been provided in

munity support

portable skills such as bricklaying and car-

projects, there is

pentry, in farm production and in construc-

consideration to

tion fields. Adding to that, the projects have

what already exists

afforded employment opportunities for the

and what people

local people. “The projects are generally

already know,”

based on research and feasibility studies

says Tshaka.

to ensure proper project planning and

The company

business continuity. Formal workshops and

also relies on the

mentorship for local contractors and SMMEs

guidance of the

have also been implemented. Education

IDPs of local municipalities to identify pos-

sessions and resources have been imple-

sible community support programmes.

mented and supplied to local educators to

of not repeating the mistakes of the past,

The municipalities gather community

assist with the improvement of literacy and

as demonstrated by other large mines,

needs through legislated state processes

numeracy levels,” explains Tshaka.

and continuously strives to incorporate

that invite participation by community

lessons learnt in its approach to contribute

members. So far, a number of cross-sec-

4. Partnership development

to sustainable outcomes.

tor projects in the areas of education,

Project Steering Committees (PSCs) are

infrastructure, media, agriculture and

being established for all the company’s

in partnership with the community to

health have been implemented. In sum-

community development programmes.

develop and deliver community-related

mary, these projects include:

The PSCs meet on a monthly basis to invite

The company’s approach is to work

initiatives. In this instance, the company

feedback, provide stakeholder input and

operates within the remits of the Mining

1. Basic services and water supply

Charter and the Social and Labour Plan

The supply of water to the community

the Kgosi/Chief also selects community rep-

(SLP) that identifies community projects via

sections commenced in 2009 and is on-

resentatives to sit on each PSC.

a municipal process called the Integrated

going. A series of long-term water supply

Development Plan (IDP) programme.

projects are currently underway.

This then informs the company com-

12

Wesizwe’s Bakubung Platinum Mine

mitments towards fulfilment of the SLP. It

2. Infrastructure improvement

is through community consultations that

The projects in this focus area include

INS I DE MI N I N G 0 7 | 2 0 1 6

further develop the projects. The office of

5. Independent specialist The company employs the services of independent specialist service providers to determine research project feasibilities, draft

COMMODITY: GOLD & PGMs project business plans and outline project

that it will be able to support itself after the

which has high expectations regarding

activities towards the implementation

life of mine has come to an end. “Those

access to jobs, even though members

of projects. These service providers also

locals who received certified training

don’t possess the required skills and expe-

provide sector training and mentorship

and have acquired portable skills will be

rience,” says Tshaka.

while profiling the community initiatives

able to market their skills beyond the life

for wider audiences.

of the mine.

The company’s community develop-

“The idea is not for locals to rely only on

One more challenge the mine faced is that there is limited government support and community members often shift the

ment projects are based on defined and

the mine for jobs and business opportuni-

responsibility of the state – e.g. availing

agreed SLP commitments. The SLP ad-

ties, but for them to become marketable

water – to the mine. “Therefore, the com-

dresses community needs and priorities as

to the whole of South Africa and beyond.

munity is encouraged to attend municipal

outlined in the IDPs of local municipalities

The established farm infrastructure is of

IDP meetings to air their views for state

within a five year time frame.

good quality and is a long-term invest-

support,” explains Tshaka.

All SLP projects are recorded and registered with the Department of Mineral Resources (DMR) from inception to com-

ment to sustain production at the farm,” tells Tshaka.

Future plans The SLP project has a five-year cycle, and

pletion, with monthly, quarterly and annu-

Challenges

al reporting schedules to both regulator

All the hard work also brought about

working together with the community and

and the Wesizwe Board. DMR officials visit

some challenges that had to be over-

government to assess any needs, and the

the project sites and audit the projects to

come. One of these challenges was the

company will continue to provide com-

assess the impact of all projects.

low levels of education and skills within the

munity development support to the local

mining community generally. But the train-

community through the IDP process and

ing, mentorship and workshops provide

through engagement with key communi-

Sustainability The local community members are ac-

a platform for new learning for

tively involved in the delivery of projects

locals who wouldn’t neces-

and, as a result, the locals are the ones

sarily get an opportunity.

charged to ensure the sustainability of the

Another challenge

is reviewed accordingly. The mine will be

ty stakeholders.

Tshaka explains that this will happen throughout the life of the mine.

work done within the community. “Active

is the poverty that is

“There is a plan to

key stakeholders – for example, govern-

rife within the com-

provide a long-term

ment departments – through the PSC

munity. Tshaka says

solution to the water

process, take responsibility for the mainte-

that the job oppor-

shortage in the local

nance of new infrastructure development

tunities during the

area by constructing

projects. For example, once construction

construction phase

is completed, projects are handed over

of infrastructure of the

to the respective state institutions. At that

projects and businesses

point the company retains no respon-

are a relief to most locals,

sibility for areas such as maintenance,”

alleviating poverty somewhat. The

explains Tshaka.

mine also addresses the minimal business

long-term water supply, and be provided

a new pipeline and reservoir. The local youth will also be engaged and supported in enterprise development and implementing

She adds that the company promotes

skills of small business owners through the

with life skills through the youth centre

community ownership and co-planning

mentorship programmes and training of

within the local community. A local media

with the local people. The trained com-

local SMMEs to improve skills.

initiative is also underway to assist with community profiling and the enhanc-

munity members are awarded opportuni-

To combat the lack of information in

ties to provide services to the mine, where

the community, the mine assisted the

ing of local media talent and interest,”

appropriate. “The trained bricklayers and

community to bring about a community

concludes Tshaka.

carpenters are sourced to offer services in

newspaper that is able to share relevant

Furthermore, the company will also con-

construction work and related infrastruc-

information on mine developments and

tinue to engage with the local municipal-

ture projects. Those who have established

on the community activities and issues.

ities through local municipal forums, such

businesses are invited to tender for busi-

“Furthermore, we also ensure that there

ness opportunities,” says Tshaka. Tshaka

is constant information sharing regarding

all in the efforts to ensure that the commu-

explains that the development of the

training, required skills and long-term job

nity will be able to sustain itself long after

community has been done in such a way

creation. This is to assist the community,

the mine has reached its end of life.

Sustainability within the community is very important to the mine’s management team

The projects have afforded employment opportunities for the local people

as Mayoral Committee and IDP activities,

Produce from the farming projects creates downstream employment opportunities

IN SID E M IN IN G 0 7 | 2016

13

COMMODITY: GOLD & PGMs

Mining every last bit A century ago, the East Rand town of Nigel had some of the richest gold mines in the world. Today, most of the gold mines are closed in the area, but the remains, in the form of waste dumps, still deliver gold to macroscale miners. By Mientjie Kleinhans

O

F COURSE THERE is no

granting access to the dump-rock. The

Benefits

comparison between the

bulldozer then further loosens the mate-

Motsoenyane explains that there are

reserves of then and now,

rial and pushes it towards the excava-

more benefits than just profit-mak-

but there is still value to

tors, which then scoop it up and place

ing in this operation: “Gold-bearing

it in the double-decker screens.

material in the screened fines is re-

be retrieved in the remnants of the discarded waste rock. One such project is

“Through the screens, the material

Ncamiso Trading’s sub-Nigel Afrisam JV.

moves on a conveyor belt to a vibrat-

would have gone to waste in building

It is a macroscale yet complex opera-

ing sieve, with sizes that range between

aggregates production.”

tion, where intensive technical analysis

40 mm and 20 mm,” explains Motsoen-

Decades ago, mines were focused on

is involved to establish where the gold is

yane. Material that is finer than 20 mm

the higher-graded gold-bearing reefs

located in-between the rocks and fines.

is screened out on a conveyor belt to a

and discarded waste rock, with lower-

The operation is estimated to run be-

fines heap and the rest of the material

graded gold-bearing reefs and fines

yond five years.

is fed into the Afrisam operations.

considered uneconomical at the time.

Ncamiso Trading recoups remaining

The presence of Ncamiso Trading

With technological advancements and

gold from the fines between the dump-

at Afrisam creates a link between the

the higher gold price, Ncamiso Trading

rock and moves the cleaned-out dump-

dump-rock and the feeder bin into the

is able to extract material that was

rock to Afrisam, on the same premises.

Afrisam operation.

previously regarded as waste.

Afrisam then crushes the leftover

This is cost-effective for Afrisam, as the

Another benefit of this project is that

dump-rock for its aggregates operation.

link results in cleaned-out dump-rock

the old mine dump is recycled and re-

This operation helps Afrisam in that the

that is ready or use. The finer gold-bear-

moved. “We are literally removing an

dump-rock is crushed down to a smaller

ing material is sampled to verify the

eyesore and rehabilitating the land,”

size. Tshego Motsoenyane, COO, Ncam-

gold grades and is then hauled by

says Motsoenyane.

iso Trading, explains that a capital outlay

road to either Mintails Gold Mine in

was set up for the screening operations

Krugersdorp or Pan Africa Resources’

Challenges

to rework the dump at Afrisam.

Evander Gold Mine.

One of the biggest challenges that the

This is in line with the process of re-

company has had to deal with is illegal

Operation

habilitation and beneficiation of a

miners plundering and vandalising offic-

The operation is rather complex: as there

product that could have been aborted

es and steel structures when they wer-

are high walls, a gentler slope has to

in the form of aggregates. Ncamiso

en’t able to get their hands on the gold.

be created using a bulldozer to make it

Trading gets its proceeds from materials

“By removing the structures and the

safer and more suitable for working, thus

processed by the mines and gold sold.

mine dump, there is no reason for them

A front-end loader loading the truck with waste rock

14

moved from the dump rock that

INS I DE MI N I N G 0 7 | 2 0 1 6

COMMODITY: GOLD & PGMs

Finer particles of gold, which would have gone to waste in building materials, are removed from the waste rock to hang around,” says Motsoenyane.

Another challenge that the company faces, which it can’t do much about, is the weather. When it rains, it becomes very difficult to work, and the area is located in a relatively high rainfall area. Adding to that are the controlled operating hours. “We can only work during certain hours of the day, which

1

places a damper on our operations.

We cannot just work when we want to,” explains Motsoenyane.

“We are working under exacting conditions, as there is a large ratio between the rock and fines – there is far more rock than fines. Hence, we are constantly looking at ways to speed up the generation of fines, so that they are sufficient to supply both Pan African Resources and Mintails Gold.

“But, being a macro-scale operation, we have to think out of the box to provide sustainable solutions to all these challenges.”

2

Uniqueness of the project This project is different in the sense that it provides a solution for both the quarry and the mines. “We give value to all parties by providing the mines with gold-bearing fines and taking away contaminated material that is of no value to the quarry. We also feed cleaned mate-

3

rial on to the quarry’s belts.

“It turns something that is deemed a hindrance by one into value for another

quarry, because it results in blockages

as this aids in the maintenance of the

from fines that would otherwise clog the stone crusher. This directly leads to a decrease in maintenance costs,”

1

T he angle of operation for the bulldozer is quite steep

2

A view of the screens and heaps of various material sizes

Background

3

ome fines from the screens on to S the fines heap

are waste rock from the underground

4

N camiso Mashinini, CEO, and Tshego Motsoenyane, COO, Ncamiso Trading

5

aterial is being fed into the M screen with a conveyor

explains Motsoenyane.

4

The dumps that are being reworked now working of the Nigel Gold Mining Company that was started in 1889. The mine was later taken over by Consolidated Modderfontein Mine in 1979. The operations ceased in the early 1990s.

5

IN SID E M IN IN G 0 7 | 2016

15

FOCUS ON AFRICA: DRC

U

NTIL THE ACCESS road construction is finished, the only way to reach this mine is by helicopter. Although the

jungle is beautiful, it also poses many challenges. But, it seems to be all worth it, as this is the richest and second big-

gest measured tin reserve in the world.

The Bisie Tin Project boasts a 4.5% ore body and, with the price of tin recently recovered, the reserve is quite a find.

“A 1% ore body is a great find in the tin space; therefore, we can safely say we have a rich ore body. The biggest tin reserve in the world is in Kazakhstan, but the ore body is of a low grade and production there has not yet started,” says Boris Kamstra, CEO, Alphamin.

“Fortunately, the price of tin has recovered after its recent collapse. Even with a 0% growth in the tin demand, there is going to be a tin shortage in the world. And we are happy to be in the tin space at the right time,” says Kamstra.

He explains that tin was largely a forgotten element used in the coating of tinned cans and peripheral items.

Since its sudden incorporation with solder, to replace lead, it has become an important commodity.

“Tin is everywhere and the uses of it have increased. Combined with the forecasted supply squeeze, this will be positive for future tin pricing.”

Production The plan is to start production in 2019, with Mpama North, and the cost of

Welcome to the jungle

production for one tonne tin is US$8 500 per tonne. The mine will be a spiral decline, just below the foothill of the ore body, and production will use sub-level caving methods.

The expected life of mine is 12 years or more. “We know for sure that the current life of mine is 10.5 years, but it will extend further down. We also know that there are other resources within close proximity to the same ore body,” says Kamstra.

He says that the ore responds very well to gravity separation. “So, we will

Imagine mining the slopes of a rainforest mountain covered in towering trees and surrounded by rolling green hills. This is the astounding reality of Alphamin’s Bisie Tin Project in North Kivu, Democratic Republic of the Congo. By Mientjie Kleinhans

16

INS I DE MI N I N G 0 7 | 2 0 1 6

bring it up, crush it, and run it through +1 mm -10 mm jigs. The sinks from the jigs will be milled down finer, to about 1 mm, and then down the spirals to clean it up.

The Bisie Tin Project is located in the heart of a rainforest

FOCUS ON AFRICA: DRC

Besides being blessed with a 4.5% tin orebody, the other unique point about the project is its ability to completely transform the North Kivu economy

intensive. One example is the access

intends to buy a roll of fabric, and then

road, built by hand by 350 people.

set people up with sewing machines,

“There are three teams doing two kilo-

so that community members will bene-

metres each per month, and they are

fit financially from the mine.

doing the most extraordinary job. Their

Another blessing is location. Being

work is immaculate and neat. Our plan

in the middle of a rainforest means

is to employ as many local people as

the mine will have an abundant

possible,” explains Kamstra.

water supply. “There is only wet and

The labour will peak at about 700 or 800 people during construction, with about 400 people working in the mine.

wetter. The mine will be water positive – meaning water will go out to the process plant and then be reused,” explains Kamstra.

The impact on the community

Future plans

At the end, we will perform a sulfide

is not only as a

Mpana South is next

rejection float to get rid of penalty

result of direct

on the cards, as well

materials. This will produce a +60% tin

employment, but

as a processing plant

concentrate,” explains Kamstra.

through other initi-

Challenges

atives as well. One such example is the

and possibly a smelter close by. In the next year, an EPC contractor will need to be appointed,

One of the major challenges that the

new Vodacom tower

mine has had to deal with is acces-

that was constructed on-site.

sibility. Logistics are a nightmare for

“The moment the tower was active, ki-

contractors, to ensure the start of con-

the mine. The only way to get to the

osks opened and locals started selling

struction in early 2017.

mine is either by helicopter or by foot.

airtime vouchers and power recharge

Before that can happen, the mine

This means it had to design its drilling

facilities. This is magnificent, especially

needs to raise $130 million, of which

campaign around a rig that could be

if one keeps in mind that there were no

$119 million will be capex, before De-

moved by helicopter.

such communication systems in place

cember 2016. Building the mine will

before,” says Kamstra.

take a minimum of 18 months and

“It was expensive to drill and, including the helicopter trips, the bill came

Similar initiatives will take place once

to around $350 to $400 per metre.

the mine needs catering services and

When you hear the helicopter blades

uniforms. Kamstra says that the mine

along with mining and earthworks

it will take about 6 months to get to nameplate capacity.

Besides Mpama North and Mpama

go tuck-tuck-tuck, think of the blades

South, there are two other possible

making confetti out of $100 bills,”

reserves close by. When the time is

quips Kamstra.

The other big challenge for the mine

ABOVE The access road is currently being constructed by hand

right, Alphamin will explore the other reserves as well.

was interfacing with the community.

It was a three-year process with the communities, discussing and designing

The Bisie mine layout

how the project will work. “People didn’t believe it would be possible to build a mine in the middle of the jungle.

We had to deal with the communities on several levels over a long period of time. Currently, we have overwhelming support from the communities, through the local and provincial authorities, right up to the national authorities,” says Kamstra.

Uniqueness Besides being blessed with a 4.5% tin orebody, the other unique point about the project is its ability to completely transform the North Kivu economy.

With this project, it will be possible to materially change the lives of everybody living in the area for the better.

Kamstra explains that all current initiatives are designed to be labour

IN SID E M IN IN G 0 7 | 2016

17

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THOUGHT LEADERSHIP

Internet revolution: fact or fiction?

End users have invested huge sums in industrial automation and control systems, and are unwilling to invest more to replace those systems with new technologies. Fortunately, the industrial internet of things is not about ripping out current automation systems in order to replace them with new ones.

E

ND USERS ALSO resist rapid and

hence, profitable manufacturing. Smart

of skills,” adds McCutcheon. While these

radical change because of the

enterprise control can be viewed as a

three areas are closely related and share

increased risk of downtime and

mid-to-long-term trend. It is complex to

many interdependencies, they also have

associated costs, according to

implement and will require the creation

differences. For example, the time scales

Schneider Electric – a global specialist in

of new standards to enable the conver-

on which they can be implemented and

energy management and automation.

gence of IT and OT systems.

the kind of automation market segment

“IIoT (the industrial internet of things) is

they address are not the same.

changing the face of industry in a pro-

2. Asset performance management:

Conclusion

found manner. In reality, it is an evolution

Deployment of cost-effective wireless

“Despite this slow, gradual IIoT adoption

that has its origins in technologies and

sensors, easy cloud connectivity and

scenario, the impact on manufacturing

functionalities developed by visionary

data analytics will improve asset per-

will be far-reaching. Suppliers and users

automation suppliers more than 15 years

formance. These tools allow data to

will have to embrace IIoT technologies if

ago,” says Quintin McCutcheon, South-

be easily gathered from the field and

they wish to remain competitive.

ern African marketing and

converted into actionable informa-

operations manager: Industry Business,

tion in real time. This will result in better

ogy allows for IIoT solutions to be phased

Schneider Electric.

business decisions and forward-looking

in so that physical infrastructure bases

decision-making processes.

can be shifted over time. The cost of

often presented as a revolution that is

“As the necessary global standards mature, it may well take another

The good news is that the new technol-

connected sensors is dropping rapidly,

15 years to realise the full potential of

3. Augmented operators:

IIoT. After all, the benefit of IIoT lies in the

Future employees will use mobile devic-

traction at an accelerating rate, and the

ability to link automation systems with

es, data analytics, augmented reality

adoption of cloud-based solutions is be-

enterprise planning, scheduling and

and transparent connectivity to increase

coming a reality.

product life-cycle systems in order to

productivity. As fewer skilled workers

enable greater business control.”

are left behind to man core operations,

the expertise to work with manufacturing

While the long-term impact of IIoT is

open-IP-based protocols are gaining

Suppliers like Schneider Electric have

due to a rapid increase in baby-boomer

companies to apply IIoT technologies to

difficult to predict, Schneider Electric

retirement, younger replacement plant

production systems and drive the evolu-

says that the following three, distinct

workers will need information at their fin-

tion towards a smart manufacturing enter-

operational environments will emerge

gertips. That information will be delivered

prise that is more efficient, safer and more

as key areas that will initiate the gradual

in a real-time format that is familiar to

sustainable,” concludes McCutcheon.

transition to IIoT:

them. Thus, the plant evolves to be more

1. Smart enterprise control:

user- and less machine-centric.

“Several barriers will need to be over-

IIoT technologies will enable tight inte-

come before next-generation IIoT sys-

gration of smart connected machines

tems are widely adopted. These include

and smart connected manufacturing

the establishment of industry standards

assets with the wider enterprise. This will

around IIoT, cyber security protection,

facilitate more flexible, efficient and,

and workforce adaptation to new sets

www.schneider-electric.co.za

IN SID E M IN IN G 0 7 | 2016

19

MATERIALS HANDLING

Controlling the blaze

Fire poses a massive threat to conveyor belt systems in mining operations – the systems used to transport bulk materials to the surface, stockpiles or transport loading stations. The timely detection of a fire can save production downtime and lives. By Mpinane Senkhane

D

ESPITE COMMON misconcep-

especially suited to long distance and

prevent the fire from spreading to oth-

tions, fire is a pervasive threat

moving environments.

er areas. If a fire breaks out underground

to conveyor belt systems in

or in a critical section of a conveyor, an

says, “Fires on a critical conveyor section

automatic suppression system should

stantial damage to the conveyed mate-

may interrupt the supply of the material

activate to control the fire. Where fires

rial, the electromechanical components

being transported. This would be dis-

break out in conveyor sections that are

of the system and the belt itself. This

astrous in the case of a power station

in non-critical, above-ground areas, a

potentially results in costly damage and

where the interruption in the supply of

fire response team will generally attend

unwanted downtime.

coal could result in the cessation of

to the fire,” Van Niekerk adds.

mines. Fire can cause sub-

A conveyor belt serves a critical pur-

operations. A fire on the conveyor

ASP has introduced Technoswitch

pose in mining operations – for example,

could spread to the stockpile, silo or

fire-detection technologies to service

the loading of coal directly into the

bunker, resulting in huge product/mate-

the market’s needs, by supplying

power station bunkers.

rial losses.”

fire-control panels that supervise a range

It is in such a process that an under-

of detection devices suitable for con-

ground conveyor fire can, and most

The sooner, the better

likely will, result in large quantities of hot,

The ideal way to manage a fire is to de-

“The ember detectors can detect a

toxic gas and smoke. Additionally, the

tect it early, before the blaze spreads –

smoldering ember that has not devel-

risks placed on underground workers

the sooner, the better. Van Niekerk rec-

oped into a flaming fire, but which has

make underground firefighting extremely

ommends that conveyors be protected

the potential to cause a fire either on

difficult. Conveyor belts contain poly-

by a range of automatic detection

the conveyor or in a stockpile or storage

meric materials that can cause fire to

devices such as flame detectors, ember

silo,” Van Niekerk explains.

spread more rapidly and generate toxic,

detectors and linear heat detectors.

corrosive smoke.

In addition to being lethal, these fires are also incredibly difficult to control.

To ensure early fire detection on a conveyor belt, risk consultant ASP

20

Michael van Niekerk, CEO, ASP Fire,

“These should be connected to fire

“Heat detectors are used when large areas need to be protected and will

suppression systems or fire alarm systems,

detect a sharp rise in heat, typically

depending on the location and criticali-

caused by a fire.

ty of the conveyor,” he indicates.

In the event of a fire, each mine or

Fire recommends the installation of

material handling company has a code

fire-detection technologies in con-

of practice that must be followed. “The

junction with suitable fire control

rule of thumb is to stop the conveyor

and extinguishing panels, which are

in order to limit the fire damage and

INS I DE MI N I N G 0 7 | 2 0 1 6

veyor-type fires.

This allows the detector to discriminate between large temperature ranges

ABOVE Fire can cause substantial damage to conveyed material

MATERIALS HANDLING

“Fires on a critical

conveyor section may interrupt the supply of the material being transported. This would be disastrous in the case of a power station, where the interruption in the supply of coal could result in the cessation of operations.”

fire load or has the potential to explode if not detected early enough. Conventional fire-detection devices are typical-

BELOW Belts contain polymeric materials that pose a serious risk in terms of rapid fire spread

ly used in the built environment. These include point-type smoke and heat detectors, open-area smoke detection

requires flameproof or intrinsically safe

beams or very early, aspirating smoke

equipment, then the pricing tends to

detection devices. Van Where affordability is concerned, given the economic glut

be even higher. But this is a direct result of the design and technical manufacturing standards

in the mining industry,

and third-party certification

miners are often hesi-

of the equipment,”

tant to overspend on

Van Niekerk continues.

what can sometimes be

There is an equilibrium point

deemed as “unnecessary” expenses. However, Van Niekerk urges that this isn’t

where a client’s risk appetite and budgetary constraints meet: low costs result in high residual risk,

the case. “There are options availa-

while very costly systems generally result

ble for the different type of detection

in low residual risk.

“Our job is to understand the specific

caused by daily heat cycles in summer,

devices, so we are able to match the

for example, and those caused by a

solution design to a client’s budget, to

environment’s risks and to design a

fire,” he adds. Flame detectors are usu-

a degree.

cost-effective solution that matches the client’s risk and budgetary expectations,

ally deployed where a quick response to

Very high-risk environments require

a fire is required. They are typically used

very sensitive and quick response de-

while ensuring adherence to local or

in very high-risk areas or where the fuel

tectors and these, unfortunately, are

national fire protection standards or

being stored or transported has a high

more costly,” he explains. “If a client

requirements,” Van Niekerk concludes.

IN SID E M IN IN G 0 7 | 2016

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IN SID E M IN IN G 0 7 | 2016

21

ENERGY

True cost of solar power There are various misconceptions regarding the true cost and benefits of solar power as a source of energy at remote mines.

Operations sometimes demand substantial baseload around the clock, so capacity and storage are a challenge.

S

OLAR POWER has seen some

with backup power is the cost of in-

remarkable updates to technol-

stalling two or more systems, which

ogy and offers various solutions

would quickly become prohibitively

for buyers. These solutions range

expensive.”

dramatically in price.

Roger Dixon, corporate consultant, SRK Consulting Africa

extent of this challenge would, how-

Cost implications

ever, be different depending on the

pensive, as it needs to include the

The cost factors that should be con-

geographical location. “In northern

cost of batteries to store the energy

sidered when calculating the true cost

Scandinavia, for example, the sun sets

generated by photovoltaic cells,” says

of solar power would include the pur-

in summer for about two hours; in win-

Roger Dixon, corporate consultant, SRK

chase, maintenance and replacement

ter, however, there are only a couple of

Consulting Africa.

of storage batteries to provide an unin-

hours of sunlight,” explains Dixon.

“It is true that solar power is still ex-

“This is, of course, the only way that solar energy can be used when the sun

terrupted, 24-hour supply.

Dixon says that these costs would

Power of the sun

is not shining. These batteries are still

need to be compared against the

The efficiency of a solar plant will be

expensive, particularly those with the

cost of installing and maintaining trans-

dependent on the number of hours of

capacity to store the amount of energy

mission lines from the country’s main

sunshine available and the combined

required by a mining operation.

power grid.

surface area of the panels used to ab-

“However, the cost of batteries has come down considerably in recent

Pros & cons

sorb the sun’s energy.

Dixon explains that, while there are

years and will continue to reduce as

The benefit of a reliable solar-powered

some areas and applications that do

technology advances, making this op-

system with appropriate battery storage

not lend themselves to solar power, the

tion more competitive,” predicts Dixon.

would be that the mining operation

technology around the semiconduc-

would not be entirely dependent on the

tors used to absorb the sun’s energy is

storage is not cost-effective, backup

national electricity grid, which would al-

advancing rapidly and increasing the

power would be required for parts of

leviate pressure on the grid, and would

efficiency of solar plants.

the operations that work on a continu-

partially mitigate the risk of an unrelia-

He further explains that where battery

ous, 24-hour basis, such as crushing and grinding in mineral processing plants.

ble supply from the grid.

The challenge of solar power is to

“So, it is likely that the technology’s application will steadily broaden geographically and reach into many eco-

“Other applications, like dewatering

have alternative power supply or suffi-

pumps and ore hoisting winders on an

cient storage for night-time energy use.

underground mine are also continuous

“Currently, it would only be feasible

technologies available and offers

operations needing uninterrupted pow-

to generate and store relatively small

particular benefits in Africa’s climate

er,” says Dixon.

amounts of power for specific, low-con-

– where we have a high number of

sumption applications on a mine.

sunshine days and nearly constant

Power from the grid could be used, but the tariff for only short periods of

Functions such as mineral processing

nomic sectors.

“Solar power is one of the cleanest

daytime and night-time. However, it is

use would be extremely expensive.

require large amounts of power and

also unique in that its energy source is

Dixon adds that diesel-generated pow-

have to operate on a 24-hour basis,

only available for a certain period

er is a common alternative, although

making solar unsuitable at its current

this is also costly. “The real problem

level of evolution. Dixon says that the

within each day’s 24-hour cycle,” www.redpathmining.com says Dixon.

IN SID E M IN IN G 0 7 | 2016

23

PIPES, PUMPS & VALVES

Causes of pipe failure Failures in pipes can have devastating results, sometimes even causing injuries or fatalities. Mines try to avoid these failures for various reasons, but sometimes one has to look further than the obvious to find the cause.

Mientjie Kleinhans explores possible preventative measures.

P

IPE FAILURE can cause two

and fittings that are not always suit-

much has to do with the application.

major issues that mines try to

able for a pipeline, thus creating the

“First of all, ask the question: is it fluid

avoid at all costs – a threat

potential for future failures in pipelines

or gas in the pipeline? The medium

to safety, and downtime.

and fittings.

being conveyed determines what the

Instances where pipe failure causes

Deon Kruger, head of sales: Mining

system needs and two aspects to take

injury, or a fatality, will immediately

Projects, Robor, adds that mining com-

into consideration are the pressure and

result in downtime as well. In the cur-

panies often procure on the cheap-

temperatures at which it is operating,”

rent economic climate, mines cannot

est price. “This doesn’t guarantee

says Venter.

afford any loss of income.

high-quality products, and the mine’s

The financial situation causes mines to place pressure on the

let poor-quality products

teams to meet their performance

through. It is not always

targets. “To stay profitable, costs

the case, but we have

are usually cut, which can impact

found this in practice.”

maintenance routines.

“This causes dangerous situations,

Incorrect fittings

which will cost the mine operators

In many cases, pipe failure

more in damages than the original

doesn’t occur because of a weak-

maintenance would have,” says Bart

ness in the pipe itself, but rather where

Malan, mining business development

the pipes are joined with couplings.

manager, Polypipe. He adds that,

Ian Venter, product specialist, Marley

due to cost cutting and budget cuts,

Pipe, explains how the incorrect fittings

maintenance teams may choose pipe

can cause failures in pipes, and says

Much can be said about the correct installation of pipes and fittings

24

quality systems sometimes

INS I DE MI N I N G 0 7 | 2 0 1 6

“There are distinct differences between high-pressure applications, abrasive properties of the solution, down columns in mines, chemicals and general water conveyance.

We find that the majority of failures occur when engineers specify the wrong flange or stub for the application, or the installation was poorly executed,” says

ABOVE Bart Malan, mining business development manager, Polypipe

PIPES, PUMPS & VALVES Kruger. Fittings are designed with certain characteristics in mind for a specific application. If the wrong fitting is

Competent people, getting all the elements right, will decrease the threat of pipe failure

used, it will eventually fail. Venter adds that price is normally the driving factor for the wrong selection.

Kruger says that cheap alternative imports are a major concern, while Malan adds that cost pressures and incorrect specifications for a given application are a combined problem that could present serious threats to failures in pipelines. Besides incorrect installations and commissioning, the lack of maintenance is also a threat.

“A lack of maintenance of high-abrasion applications, such as slurry pipe-

and supplier can work with to identify

lines with high wear rates, could also

what the real requirements are.” He

cause failures at bends and fittings, due

adds that the checklists need to be

to turbulence inside the pipeline,”

influenced by the people in the know,

explains Malan.

people with the necessary experience

operation.” There are a few compo-

and knowledge. This needs to hap-

nents to prevent pipe failure, according

there is no understanding on how this

pen at the level where standards

to Venter. He believes that the process

fitting or the system should be repaired,

are monitored.

In many cases, when the fitting fails,

according to Venter. He tells of an in-

Malan feels that there are

BELOW Deon Kruger, head of sales: Mining Projects, Robor

needs to go further than obtaining a certificate from an institution.

cident where a worker tried to fix the

three possible solutions

“The way the process needs to

coupling by hitting it with a hammer

to the problem. The first

work is that somebody iden-

three times – just as he was told to do –

solution is to consult with

tifies the need, as well as the

with disastrous consequences.

a professional in the in-

required components, equip-

Solutions Venter explains that there are a number of standards available to the industry

dustry and to ensure that the correct procedures are strictly followed.

Ensuring that the correct pipe and

ment and processes.”

The first component is to look at the qualifications of the person involved with the installation and maintenance.

but, in most cases, these documents are

fittings are used will guarantee the

Second, the products need to be of

difficult to understand or interpret. “For

longevity of the pipeline. And, ensur-

good quality, and the pipes need to be

this reason, I believe that there should

ing that the contractors on-site have

compliant. Other components include

be a checklist that both the mines

the required qualifications to do the

the area, or workspace, and location

job correctly will also prevent the fail-

of the site, as climate can also play a

ures from taking place.

significant role.

Kruger says that Robor’s solution is

There are so many elements that have

to work closely with the consulting

the potential to play a role in pipe failure.

engineers and end users to ensure

Starting off by doing the basics right will

that they share their experience,

certainly help to prevent pipe failure.

ensuring that all parties are satisfied

Other than that, the consulting engineers,

with a safe system that lasts. “We al-

manufacturers and suppliers that special-

ways produce a full set of data-books

ise in this field should be able to assist with

accompanying our products. This

professional services and advice.

provides peace of mind to all stakeholders that our product and service comply with the quality standards set for the application.”

Prevention There are a few factors that can help prevent failures in pipes, but Malan believes that “most mining applications are highly pressured and the liquids are usually very abrasive or highly acidic; therefore, the continuous maintenance and monitoring of pipelines are crucial parts of any mining

“We find that the majority of failures occur when engineers specify the wrong flange or stub for the application, or the installation was poorly executed.”

IN SID E M IN IN G 0 7 | 2016

25

PIPES, PUMPS & VALVES

Dewatering mine lines Water is found in every mine across the globe: whether as rainfall or run-off, in operations hitting the water table, or as machine and instrument water. And, the deeper a mine goes, the more complicated it gets to manage water. By Barry van Jaarsveld*

W

ITH HUNDREDS of mines

mines run deeper and require the use

operating in South Africa,

of more water for drilling, running equip-

each must deal with the

ment and for activities such as dust

issue of water. Whether it

suppression. Regardless of its nature,

has been extracted or inserted, water

for a mine to continue successful and

quickly and with limited damage to the

can affect processes, productivity and

profitable operation, water needs to be

system. In most mines, dewatering lines

the surrounding environment.

extracted and managed efficiently. The

are designed to follow the gradual slop-

successful removal of water from mine

ing of the stopes to avoid a completely

sitting at approximately 70 years, a single

sites continues to be a difficult, and

vertical ascent and drastically reduce

mine site will extract, insert and manage

sometimes contentious, issue.

head pressures and operating costs.

With the average lifespan of a mine

water daily, from initial exploration to

Improper removal of water poses a

While this design strategy alleviates

continued expansions, throughout the

significant risk; excess water can create

some pressure issues, it does not make

life of the mine.

safety hazards for mine owners and

the installation and maintenance of sys-

When you consider the amount of

operators, effectively halting produc-

tems any simpler. These sections of pipes

water used every year by the mining

tion processes and resulting in costly,

can be anywhere from 100 m to 1 km

industry in sites across South Africa, it

unnecessary downtime. To ensure this

in length, meaning there are numerous

is critical that miners address the management of this precious resource.

doesn’t occur, water needs to be extracted.

Dewatering lines are the

joints to complete along the length of the stope.

The dark, damp, dirty and constricted

most effective and com-

spatial conditions that characterise

mon way of extracting

mines greatly inhibit the installation

Mines of all depths

water from underground

process of dewatering lines. Limited

and across all regions

and open-pit mines in

electrical access and heightened safety

of South Africa have

South Africa. It is antici-

concerns further increase the difficulty

Dewatering lines

one key thing in common: the longer they operate, the greater the chance that water will seep into the everyday workings of the mine site.

pated that they are currently in use in every mine site in South Africa.

These systems are generally in-

of installation.

Mechanical pipe joining: a comparison

stalled at the construction of the mine,

While flanged joints may have been the

and will need to be in use for its entire

first mechanical pipe joining method for

collect more water due to exposure to

lifetime. The system itself is in a constant

dewatering lines, the installation and

rainfall and natural run-off, underground

state of flux – adjusting to continuous ex-

maintenance challenges have led many

pansion, moving deeper into the mine.

mines to adopt other joining methods.

While open-pit mines have the ability to

ABOVE Shouldered piping systems can be quickly and easily disassembled and reinstalled

26

ABOVE The Style SC77 Flexible coupling is a popular pipe joining methods

INS I DE MI N I N G 0 7 | 2 0 1 6

To insert a piping system into mines of

With a handful of nuts and bolts to con-

any depth requires an easy-to-install sys-

tend with and a small window for error in

tem with the capability to be rerouted

aligning flange faces, installation remains

PIPES, PUMPS & VALVES slower and more tedious than grooved,

tight, cramped space, dirt, debris and

need to be very carefully engineered to

shouldered or plain-end joining methods.

dim lighting can vastly increase the risk

ensure that the system doesn’t fail.

As the preferred joining method for de-

of improper installation.

watering lines in South Africa, grooved,

The outcome for a buckled system is

A gasket coated in lubricant exposed

dire – the mine will flood, harming the

shouldered and plain-end systems are

to these conditions can attract dirt and

exercise and machinery and putting

installed up to five times faster than

debris that may compromise the seal

the lives of those working in the mine

flanged joints, offering 360 degrees of

and ultimately the

rotational flexibility, featuring only two

integrity of the entire

nuts and bolts to install and thus having

joint. Completely

a smaller footprint. This space saving is

dismantling and

perfect for the cramped, dark conditions

reassembling the

of a mine where the risk of human error is

housing in dim light

high, and the stakes are even higher.

can also lead to an

Zooming in on underground mines

increased risk of user error. Loose gaskets,

Both coal and metal mines require func-

nuts or bolts may

tional dewatering lines to continue their

be dropped or lost

operations at optimum efficiency.

during installation,

Coal mines

at risk. In particularly

The successful removal of water from mine sites continues to be a difficult, and sometimes contentious, issue

high-pressure scenarios, pressure can reach up to 20 000 kPA in an average hard rock mine, making the engineering and installation of these systems extremely complex. In these cases, dewatering lines are extremely vulnerable and need

which results in lost time, increased ma-

careful product care to ensure they are

terial costs and higher risk of injury.

as stable as possible. For deep mines

As prime examples of where dewater-

As joining technology continues

that engineer their dewatering lines to

ing lines are installed along the stopes

to improve, a new generation of in-

lower pressures, alternative pipe mate-

to control pressure, coal mines sit at

novation has emerged, including

rials such as HDPE and PVC are quickly

relatively shallow depths in comparison

installation-ready technology.

growing in popularity. The extreme

to metal mines. Dewatering lines are

Installation-ready couplings have taken

depths of the mines require very resil-

typically installed using shouldered pipe

a lot of challenges out of the mining pro-

ient piping and joining mechanisms to

joining, increasing speed and flexibility

cess because they are so much easier

resist wear and tear. PVC piping is more

during installation.

and quicker to install, reducing the risk of

resilient than HDPE, and requires a joint

human error and taking the guesswork

to match.

While mines continue to explore, they require a dewatering system that can grow with the mine throughout expan-

out of installation.

For example, the Style SC77 Flexible

Conclusions

sions. The average underground mine in

coupling for shouldered steel pipes is

As mining continues to be a primary in-

South Africa would see the installation

one of the most popular pipe joining

dustry and significant contributor to the

of 5 000 to 10 000 joints per year. Unlike

methods for dewatering lines.

South African workforce and economy,

flanged systems, shouldered piping

There is no need to disassemble the

solutions and systems that make the

systems can be quickly and easily disas-

coupling, thereby eliminating loose parts

whole process more streamlined are in

sembled and reinstalled using the

and ensuring consistent, faster installa-

high demand. As a necessity in every

original product – no replacement parts

tions. By removing the need for disas-

mine site, dewatering lines have expo-

are necessary.

sembly, the gasket is not exposed to the

nential growth and demand.

While the advantages of the shoul-

dirty mine environment, decreasing the

Specialised systems are helping reduce

dered system remain tangible, there

chance of joint failure and reducing the

the challenges associated with installing

are drawbacks. The shouldered system

chance of incorrect fitting by installers.

dewatering lines, by reducing installation time and increasing ease of use. Instal-

is comprised of shouldered steel pipe and a coupling. Traditionally, couplings

Hard rock mines

lation-ready technology and reusable

are comprised of a two-piece hous-

Hard rock mining tends to occur further

PVC joining systems ensure faster and

ing, gasket, nuts and bolts, which are

below the earth’s surface. The deeper

more efficient installation, to help deliver

taken apart before installation. Then,

a mine descends, the greater the asso-

a seamless system, under pressure.

the gasket is lubricated, placed on the

ciated challenges and risks. Dewatering

pipe ends and encased by the housing.

lines, in this instance, come up against

*Barry van Jaarsveld is the regional

Under the conditions of a typical mine,

huge amounts of head pressure, and

manager: Africa at Victaulic.

IN SID E M IN IN G 0 7 | 2016

27

INFRASTRUCTURE & CONSTRUCTION

All-round coating solutions A market leader in supplying decorative coatings and aerosol marking paint to the mining industry is Kansai Plascon. Although the company boasts a large market share in these areas, there is still room for growth.

O

NE AREA OF mining

and we offer a one-stop shopping ex-

that holds considerable

perience that our competitors cannot.

growth potential for the

Our service is not just selling protective

company is corrosion pro-

coatings, but doing specifications. We

such as Namibia, Botswana, Zambia,

tection for processing plants, such as

are experts as far as that is concerned.

Malawi, Zimbabwe and Mozambique,

smelters and concentrators, according

We do not just sell the paint and walk

with plans to expand the network in

to Mareta le Roux, brand manager:

away – we provide support throughout

East and West Africa. This network will

Industrial Coatings, Kansai Plascon.

the process.

enable the company to deliver its

“We are a relatively minor player

Our technical teams under-

Mareta le Roux, brand manager, Kansai Plascon

range of products in the quickest turn-

in this field at present. However, the

take site visits to check if

strategic five-year plan, in terms of re-

the product is applied

sourcing, is to put a focus on corrosion

correctly, especially

protection for processing plants in the

when it comes to

mining industry. Our protective coating

corrosion protec-

company has devel-

products meet all industry require-

tion,” he explains.

oped fundamentally

ments, and it is now a matter of driving them forward,” she states.

around times.

Future outlook Over the years, the

In challeng-

strong relationships with some of the larg-

ing economic

Corrosion protection is expensive to

times, the current

apply, and Le Roux indicates that it is

industry trend is to

essential to successfully complete the

prioritise maintenance.

application of the coating on the first

Redelinghuys believes

est names in the global mining industry.

Le Roux believes that this will work to the company’s ad-

attempt. “Bearing this in mind, we pro-

that this works to the company’s

vantage when promoting its protec-

vide extensive training to mining con-

advantage. “Mining companies are

tive coating range.

tractors at no additional charge.

moving towards optimising and con-

“This is already bearing fruit, with a

It’s all about customers’ bottom line

serving their assets, rather than replac-

large gold mining operation with

at the end of the day, and we are

ing them with new ones. As a result, our

mines in East, West and Central Africa

there to ensure that everything goes

sector sales have improved, and I am

now specifying Plascon protective

according to plan.”

confident we will gain market share in

coatings for all of its processing plants.

Turnkey shop

the foreseeable future.”

We have also been supplying products to mines in the Zambian

Rolf Redelinghuys, national market

Research and development

manager: Mining & Minerals and

With regard to R&D, the company

Further expansion in Africa holds

Roadmarking, Kansai Plascon, notes

boasts a state-of-the-art laboratory in

the potential for measurable growth,”

that the company continues to main-

Durban, KwaZulu-Natal, which features

she concludes.

tain its reputation as a market-leading

dedicated teams working solely on in-

paint supplier to the mining industry,

dustrial and protective coatings.

thanks to its 360-degree turnkey solu-

copper belt for a number of years.

“Our laboratory is world-class; there-

tion, which is not only comprised of

fore, most of our R&D is done locally,

the paint range, but also dedicated

based on local customer require-

after-sales service and backup sup-

ments,” says Le Roux. Kansai Plascon

port.“We are by far the biggest coat-

also features a strong network of dis-

ings manufacturer in Southern Africa,

tributors in sub-Saharan African regions

www.kansaiplascon.co.za

IN SID E M IN IN G 0 7 | 2016

29

PROJECT MANAGEMENT

Sustainability’s growing role in efficiency Given the current economic climate and subsequent focus on cost reduction, sustainability is being increasingly recognised by embattled mining businesses as a tool that can deliver efficiencies and impact the bottom line, says Environmental Resources Management Southern Africa.

S

efficiency and being able to better man-

ability reporting is being reinforced by

potential future liabilities. Companies

age inputs – such as water, energy or raw

management determination to uncov-

should look to move from simply report-

materials – and unintended outputs – such

er continued savings, efficiencies and

ing to driving continuous performance

as waste, effluent or air emissions, includ-

productivity gains, as well as mitigate

improvements.” Because of the dire

ing greenhouse gases – to unlock and sus-

business risk that can be highlighted by

need to cut costs in a weak commodity

tain cost reductions and improve a firm’s

sustainability data, both at the site and at

market, mining has been identified by

contribution to sustainable development.

corporate level.

ERM SA as an area where the new effi-

MART BUSINESSES are focusing

management has become critical in view

more and more on maximising

of resource constraints, rising utility costs

efficiencies. In a sustainability con-

and increasing regulatory requirements.

text, the focus falls on resource

Clémence McNulty, principal consultant:

McNulty adds: “The focus on sustain-

“Today, businesses are doing more with

ciency-focused approach to sustainabil-

Sustainability and Climate Change Team,

less. Sustainability data helps them do it

Environmental Resources Management

by identifying areas where the biggest

Southern Africa (ERM SA), points out:

efficiency gains can be achieved.” Smart

Optimising efficiency

“Clearly, a proper sustainability strategy

companies have the opportunity to turn

Areas for potential efficiency gains re-

delivers a wide array of benefits. But in the

sustainability into a pragmatic tool for sen-

sulting from the proper use of data in the

current economic climate, the realisation

ior managers looking to achieve savings

mining industry may include:

is dawning that sustainable practice is

and maintain a competitive advantage.

•u se of energy-monitoring systems as a

cost-efficient practice.

Different strokes “Maximising efficiencies affects different companies in

strategic management tool to analyse

trading conditions, companies

and verify trends and identify areas

should always maintain their sustainability investment.

“In some cases, sustainability data measurement and

a company must determine

the quest for improvements in

ity issues are and where it can make

ity has particular value.

ERM SA says that, even in tough

different ways. As a first step, what its most material sustainabil-

environmental practice are mandatory,” says McNulty.

where energy use is wasteful, and efficiencies and savings can be achieved •u se of data and trend information in training to ensure workers understand the impact of working practices on energy consumption and costs, and to create accountability •u se of data to enable a coordi-

the biggest impact”. For resource-intense

“Statutory compliance is by no means the

companies like local mining houses,

only driver. Smart businesses should realise

nated management approach to

resource efficiency measures will likely

that sustainability data can be turned

energy and other resources, moving

be a priority.

into useful KPIs within management

from a single department focus to a

programmes, for achieving savings and

wide-ranging strategy involving all

“For other companies, industries or geographies, community conflict, soil and

higher productivity, and for minimising

stewardship may be more pressing issues”.

In South Africa, resource efficiency enabled through effective sustainability data

INS I DE MI N I N G 0 7 | 2 0 1 6

parts of the organisation • e quipment monitoring to ensure

groundwater contamination or product

30

ERM SA sees the mining industry as a new area of focus

a plant is used effectively and

ABOVE Clémence McNulty, principal consultant, ERM SA

identify variances against expected performance.

Realising possibilities...

Joslin Lydall, a senior consultant in ERM's Sustainability and Climate Change Team, notes: “The new pragmatic approach to sustainability data is applicable in all industries, not just mining. Action points can be identified in a host

As a first step, a company must determine what its most material sustainability issues are and where it can make the biggest impact

of areas, not simply energy consumption

...from mine to market.

and related financial aspects”. “Those making the progression from sustainability reporting to effective sustainability management often focus on impacts and how much they cost the business. As soon as financial consequences are appre ciated, senior management begins to integrate sustainability into all decisions.

Finding funding “Once projects have been identified, companies could look

Resource Evaluation

Mine Planning

Mining & Mine Development

Materials Handling

Environment & Approvals

Transport to Market

Non-Process Infrastructure

at accessing money from grants, incentives and specialised funds to assist with unlocking these efficiencies. Governments and a number of development finance institutions make money available in the form of grants, tax incentives or preferential loans for resource efficiency projects,” states Lydall.

ERM SA is well placed to support companies on this journey, no matter at which point they currently are.

“We provide technical know-how combined with a deep understanding of how sustainability specifics relate to the business and stakeholder value. ERM SA can assist with identifying efficiency projects, developing business cases and accessing available grants, incentives and specialised funds for these

Mineral Processing

Tailings & Waste Management

WorleyParsons adds value through our full scope of services from pit to port including studies, mine planning, impact assessments, permitting and approvals, project management, construction management and global procurement.

46

countries

148

projects”. “In the current economic conditions, optimising one’s sustainability approach and investment in this way is, in many cases, a smart thing to do because it can strongly contribute to the bottom line,” Lydall concludes.

INSIDE MINING 07 | 2016

31

Smelting & Refining

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offices

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people

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MARKET NEWS

from around the continent

NEW CONDITION MONITORING SERVICE To complement conventional condition monitoring practices, Joest Kwatani has developed a new service that evalu-

Andre Kuhn, general manager: Power Generation, Cummins Southern Africa

at their plants, as well as production

GENSETS FOR ROBUST ENVIRONMENTS

and quality requirements.

A particularly impressive line

ates the skill levels of its customers’ staff

Once these are linked to existing sys-

of products launched at Power

According to John Russel, business development manager, Integrated Pump Technology – distributor of Oerlikon Leybold Vacuum products within Southern Africa – Turbolab can be tailored to individual customer needs. “There is a choice of up to six connected accessories that

tems, the company has the ability to

and Electricity World Africa was a series

include purge gas or venting valves,

pre-empt equipment failure, and retain

of generator sets designed and engi-

cooling units, heater collars and vacuum

valuable, long-term data on plant per-

neered for critical applications that de-

measurement devices, all

formance. The screening equipment

mand a robust, reliable source of power.

connected through built-in

The QSK95 series of gensets from Cum-

communication ports,” he

manufacturer has complemented conventional condition monitoring

mins ensures uninterrupted operations

explains. “A plug-and-play

practices with advanced testing and

for a variety of applications, including

approach allows the user to

measuring technology.

processes in the mining industry. Accord-

connect a comput-

ing to the company, the gensets exceed

er to the Turbolab

continuous supply of quality production

industry standards by providing 100%,

via a standard LAN

tonnage, while protecting company

one-step load acceptance in under 10

interface. The built-

assets and reducing the total cost of

seconds. “This innovative product enjoys

in web server then

ownership of plant and equipment,”

a rating of up to 3 500 kW and delivers

allows users to ac-

says Kim Schoepflin, managing director,

high-horsepower output while achieving

cess all critical pa-

Joest Kwatani. She adds that adopting

installation economies with a small-foot-

rameters and conditions,

conventional condition monitoring,

print design. Innovation is about unlock-

and draw reports stored in an internal

testing and measurement techniques

ing and unleashing new ways of thinking,

memory,” concludes Russell.

“This assists our customers to achieve a

delivering against a background of continuous improvement,” says Andre Kuhn, general manager: Power Generation, Cummins Southern Africa.

The series of gensets are rated at up to 3.5 MW and 3.75 MVA. Not only do they

New technology for Anglo

offer a smaller footprint, but they also

The first Loesche vertical roller mills and

offer improved durability, lower main-

complete grinding series will be deliv-

tenance and lower fuel consumption.

ered to Sinoma International’s Nova

Cummins produces its own components,

Cimangola plant in Angola.

ranging from engines and alternators to are not enough to ensure optimal operation of plant and equipment. “Mines

The Turbolab 80 workbench variant is a compact, easily operated high-vacuum system

transfer switches and control systems.

The order includes one cement raw material mill with a capacity of 400 tonnes an hour and two cement

should be working closely with original

New vacuum for labs

equipment manufacturers that are in a

A compact, fully assembled and

tonnes an hour. Other equipment like

better position to develop a bespoke

ready-to-operate high-vacuum system

rotary star feeders, metal detectors, the

solution suited to the technology and its

has been added to the Turbolab prod-

engineering for the cyclones, classifier

operating environment.”

uct range by Oerlikon Leybold Vacuum.

motors and the control system are also

The new system was designed to be

in Loesche’s scope of supply, as well as

condition monitoring/testing and meas-

used in laboratories, spectroscopy and

a two years’ worth of operation spare

urement in the future is likely to increase

micro balances as well as sputtering

parts contract.

to counter a growing global trend in the

and evaporating systems. The system is

mining industry to specify lighter screens

available in either table-top or mobile

and associated support structures when

cart variants. The table-top variant has

a plant is first designed, in an effort to

a new diaphragm backing pump for

contain costs.

the industry-proven TurboVac i Turbo-

Schoepflin predicts that the role of

mills, each with a capacity of 150

molecular pumps, which attain ultimate pressures of between 10-7 mbar to

Equipment auditing, including periodic condition monitoring, is used to assess the status of a screen at a point in time

10-10 mbar and pumping speeds for N2 of 65 ℓ/s to 430 ℓ/s, depending on the model selected.

Loesche cement mill

IN SID E M IN IN G 0 7 | 2016

33

MARKET NEWS

from around the continent

conventional materials permit 78%, while Apex material allowed only 15.5% light transmittance – a dramatic difference, particularly when one considers long-term exposure of workers and the consequent repercussions on their eyesight and even their skin.

Materials handling solutions In these times of financial turmoil, it is important to diversify and focus on the needs of clients. And that is exactly what Voith has been doing. “Historically, we have been heavily weighted towards the coal and power industry.

However, diversification is important and has been a major focus of the company for some time now,” says Grant Robinson, vice-president: Mining

Orbitalum now in SA

& Metals EMEA, Voith.

Power supply for Orbital welding

A new range of solutions from Orbit-

terials handling, while its main products can be used in various applications.

alum Tools in tube and pipe welding preparation is now available from

working environment for the welder

The company is also well known for

Downson & Dobson (D&D), a division

and any co-workers and supervisors

its hydrodynamic couplings, offering

of Actum Industrial.

in the immediate vicinity.

a complete range of solutions, from

Actum Industrial clinched the

Tested by the SABS for ultraviolet

constant-fill to fill-control couplings.

agency via Orbital Cutting & Weld-

transmittance, conventional ma-

Although its larger customers mainly

ing of Dubai, which represents

terials gave readings of 0.0005%,

consist of the major coal mines, Voith

both EH Wachs and Orbitalum. The

0.008% and 5.0%, as opposed to

covers all mining commodities.

company is looking to make inroads

Apex readings of 0.005%, 0.001% and

into the South African market, com-

0.005%. One version has a freestand-

going forward is moving from being a

ments Kumar Sundaram, head: Mid-

ing frame that allows easy handling

component supplier to being a solu-

dle East and Africa, Orbital Cutting

and portability.

tions provider. For example, the recent

& Welding.

“The Orbimat range of welding

The feet of the screen are angled space and screens can be butted

African market,” says Greg Barron,

together at a 90-degree angle. Tests

group director, Actum Group. He

for total visible light transmittance

adds that the range is also us-

demonstrated incontestably that

which are critical factors in a low-skill environment such as Africa.

Welding screens for added safety One area that needs adequate safety measures is where welding takes place. The workers need protection against weld splatter and fumes, and harmful UV radiation. This is where Apex welding screens come in to assist. The screens are available in various configurations to suit a variety of individual requirements. The screens absorb, scatter and filter the light spectrum to create a safer

INS I DE MI N I N G 0 7 | 2 0 1 6

The opportunity for the company

acquisition of German company HESE

to allow optimum utilisation of floor

equipment is ideal for the South

er-friendly and low on maintenance,

34

The company’s major focus is on ma-

The feet on Apex welding screens are angled to allow optimum utilisation of floor space

means that there are additional materials handling solutions for customers. “We can now offer chutes, pulleys and drive solutions, such as the TT drive (a belt-on-belt drive) and drive packs. In specific applications, such as very long overland belts or long inclined belts, the TT drive reduces capital

6–8 September 2016 CTICC, Cape Town, South Africa

An example of the TT intermediate drive for belt conveyor systems

investment significantly. Our company remains consistently focused on customer needs, which include the need for reliable engineer ing, availability and reduced cost of ownership,” says Robinson.

The application engineering team can design drive solutions across various applications, such as fans, mills, crushers, conveyors and steel mills. “Our service team is multiskilled and can carry out on-site fault finding, installation and commissioning, vibration monitoring, thermal imaging of equipment, and both static and dynamic laser alignments,” concludes Robinson.

Simplifying water use licences There is no need to grapple with the complexities of implementing and renewing water use licences (WULs), as global consulting engineering and science expert SRK Consulting has prepared a manageable system to simplify this process.

The Licence Implementation Plan (LIP), which includes Excel-based templates, addresses a range of tasks, systems and procedures for mines to adopt. Among the standard monitoring and reporting requirements, for instance, is the need to install and maintain an appropriate flow metering system, and to put in place monitoring programmes and reports for all quantity and quality limits. The collected data must then be assessed against WUL limits, and corrective action may need to be taken where the limits are exceeded. The solution offers a complete training programme to

THE SUB-SAHARAN OIL, GAS AND PETROCHEM EVENT AT CAPE INDUSTRIES SHOWCASE www.africaogp.com

put all those responsible on the same page.

“Our approach is to get back to basics, and to help clients implement a sustainable process with a clear designation of roles, backed up by the necessary data-collection and supporting technology,” says Jacky Burke, principal scientist, SRK Africa.

“It needs to start with everyone understanding the purpose of the WUL and the regular deliverables it demands.

Then the WUL requirements must be incorporated into the

Oil and Gas Africa is Africa’s leading international event at CIS, dedicated to upstream, midstream and downstream activities for the most influential attendees, senior decision makers, officials and representatives from public and private sector organisations and stakeholders.

day-to-day operations, so that both management and engineering functions can feed the necessary data into the process on a regular basis.”

She adds that one of the main challenges with imple-

Join over 100 exhibitors, a leading conference and enjoy a valuable networking plaftform in Cape Town.

menting the WUL is that the water-related data that mines collect often does not talk directly to what the WUL requires.

“In some cases, the data itself is not being collected, so the person responsible needs to motivate to management for the budget for the necessary resources to collect good

Book your stand or register to visit at

www.africaogp.com

and reliable data. In either situation, our LIP helps mines to Endorsed by

remain compliant, as efficiently as possible.”

INSIDE MINING 07 | 2016

35

Organised by

EVENTS

Junior mining indaba Stemming from conversations a year ago at the Junior Indaba, innovation in the junior mining space has moved on to how quickly the sector can implement innovative technologies, develop new investment strategies, adapt in virgin territories and communicate clearly with community stakeholders.

T

ECHNOLOGICAL INNOVATION in

Mindset shift

Forward, together

mining will automatically pique

“Africa’s abundant resources should be

South Africa’s Deputy Minister of

an engineer’s interest; however,

used to spur on industrialisation, eco-

Minerals and Resources, Godfrey

for the junior mining sector, there

nomic modernisation and diversification

Oliphant, acknowledged that con-

is a much broader spectrum of innova-

towards an integrated and peaceful

sultation and collaboration have to

tive opportunities.

Africa with shared prosperity,” she stat-

be the watchwords of the local min-

ed. Citing the strengthening of mapping

ing sectors if they are to succeed in

from industry stakeholders at the 2016

systems and a move away from current

moving forward.

Junior Indaba, including the AU Com-

corrupt and rent-seeking tendencies,

Deputy Minister Oliphant men-

mission and Department of Minerals

the negotiation of contracts that puts

tioned that, in the context of the

and Resources.

African interests first and the creation of

overall state of the mining sector

sustainable linkages with local econo-

nowadays and given the economic

mies require a change in mindset.

environment, the growing financial

On 2 June, promising news emanated

Keynote speaker Dr Nkosazana Dlamini Zuma, chairperson, AU Commission, re-emphasised that the junior

markets volatility, and the general

She also announced the launch of

mining sector is critical to Africa’s de-

the African Minerals Development Cen-

expectations around the com-

velopment, since the exploration of old

tre, aimed at supporting and ensuring

modity markets, the focus on junior

and new deposits of minerals have the

that African governments are better

mining is both timely and critical for

potential to catapult the continent’s

equipped to negotiate better terms and

policy engagements.

growth and development to higher

contracts in mining.

levels. Dlamini Zuma noted that despite

The Junior Indaba delegates

In order to implement this strategy,

were encouraged and invited to

the riches and potential opportunities

Dlamini Zuma called on the mining and

explore a number of opportunities

within the Africa, the continent’s peo-

education sectors to invest in much

in other African countries, including

ple are among the poorest in the world

needed skills, particularly as they relate

Rwanda, Nigeria and Botswana, by

and the continent is home to some of

to science, technology, engineering

companies successfully operating in

the most glaring inequalities.

and mathematics areas.

these territories.

INDEX TO ADVERTISERS Dosetech

36

Loesche

11

Atlas Copco

OFC

Electra Mining

28

Oil & Gas Africa

35

Babcock

IFC

Elephant Lifting Equipment

22

Energyst

21

Aggreko

Bell Equipment BITC

36

32

OBC 18

Kansai Plascon

2

Schneider Electric SA WorleyParsons

IBC 31

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