Inside Mining June 2014

www.miningne.ws

AFRIC AN UPDATES ON THE

ining GROUND AND UNDERGROUND

VENETIA UNDERGROUND Expansion will extend life-of-mine to 2040

DIAMONDS IN THE ROUGH 50 mines make up 90% of global supply

PETRA

DIAMONDS CEO Johan Dippenaar on expansion plans NARROW-REEF BLASTING Latest portable emulsion pump

COLLISION AVOIDANCE Latest developments and systems

DEWATERING SYSTEMS Essential for mining at optimum capacity ISSN 1999-8872 • R50.00 (incl. VAT) • Vol. 7 • No. 6 • June 2014

Excellent Minerals Solutions

Would you put your most valuable resource at risk by using non-OEM replacement parts?

Our research & development Our quality product Your peace of mind

WEIR is a registered trademark of Weir Engineering Services Ltd

For more information, contact us on +27 (0)11 9292600 www.weirminerals.com

CONTENTS

A F R I C A N U P D AT E S O N T H E

ining

June 2014

GROUND AND UNDERGROUND

EDITOR’S COMMENT

ENDORSED BY

3

Taking the bull by the horns

INDUSTRY COMMENT www.miningne.ws

AFRIC AN UPDATES ON THE

ining GROUND AND UNDERGROUND

VENETIA UNDERGROUND Expansion will extend life-of-mine to 2040

DIAMONDS IN THE ROUGH 50 mines make up 90% of global supply

PETRA

DIAMONDS CEO Johan Dippenaar on expansion plans

ON THE COVER O

5

P8

Why mining is an essential industry

AFRICA ROUND UP

P Petra Diamonds owns aand operates five p producing mines in South A Africa: Finsch, Cullinan, K Koffiefontein, Kimberley U Underground and Helam, aand one in Tanzania, W Williamson, seen here.

6

Mining news from the continent

DIAMONDS

12 15 16 19 20 22 23

NARROW-REEF BLASTING Latest portable emulsion pump

COLLISION AVOIDANCE Latest developments and systems

DEWATERING SYSTEMS Essential for mining at optimum capacity ISSN 1999-8872 • R50.00 (incl. VAT) • Vol. 7 • No. 6 • June 2014

Venetia shines for De Beers Liqhobong appoints chief project officer Diamonds in the rough Latest diamond inspection technology DMS plants for Russia Nedbank funds new diamond mine Top investment tips

SPECIAL COMMODITIES

24

Africa’s potash hub

RESEARCH & DEVELOPMENT

26

South Africa is a researach hub for Africa

SKILLS & TRAINING

13

28

Upskilling for a more sustainable future

WOMEN IN MINING

30

Women in mining face challenges

SAFETY

33

Strike aftermath to impact safety

INDUSTRY NEWS

34

Spotlight on SHEQ

TECHNOLOGY

36

Collision-avoidance system

DRIVES & MOTORS

24

39

Variolution package offerings

DRILLING & BLASTING

40 42 44 46

Blasting and processing Blasting in narrow-reef stopes A break from tradition Explosives evolution

PIPES, PUMPS & VALVES

46

48 51 52 54 56

Water standards in Sierra Leone Polypipe achieves SONCAP approval Dewatering for African mines Protecting pump integrity in mining Improved froth pump

IN SID E M IN IN G 0 6 | 2014

1

uppe marketing A10641

Whether you need a general service or 24-hour support.

Buying quality equipment is meaningless without exceptional after-sales service. At Komatsu we pride ourselves in our quality and reliable equipment backed by our professional sales force and 24-hour support and service. Technical support is conveniently offered either on site or at one of our many service facilities. Our cost-effective solutions and quality workmanship will keep your Komatsu like new for maximum uptime and efficiency.

Komatsu Southern Africa (Pty) Ltd, cnr Diesel and Isando Roads, Isando.

Tel: 011 923 1000 | Fax: 011 923 1111 Customer Care Line: 0860 566 2878

www.komatsu.co.za

EDITOR'S COMMENT

Publisher Elizabeth Shorten Editor Gerhard Hope Online editor Sylvester Haskins Head of design Frédérick Danton Senior designer Hayley Mendelow Designer Kirsty Galloway Chief sub-editor Tristan Snijders Sub-editor Beatrix Knopjes Contributors Jeremy Clarke, Professor Caroline Digby, Paul Ziminisky, Philip Wood Production manager Antois-Leigh Botma Production coordinator Jacqueline Modise Marketing manager Hestelle Robinson Digital manager Esther Louw 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

Tazz Porter Tel: +27 (0)11 465 5452 Cell: +27 (0)82 318 3908 tazz@connect.co.za ___________________________________

MEDIA

No. 4 5th 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 ___________________________________ Annual subscription:

South Africa: R550.00 (incl VAT & postage) African countries: US$80 Foreign: US$100 Email: subs@3smedia.co.za ISSN 1999-8872 Inside Mining Copyright 2014. All rights reserved. ___________________________________ All material in Inside Mining is copyright protected and may not be reproduced either in whole or in part without the prior written permission of the publisher. The views of contributors do not necessarily reflect those of the publishers.

To our avid readers, be sure to sign up and get the latest updates and inside scoops from the mining industry.

Check out what we are talking about on our website, Facebook page or follow us on Twitter and have your say.

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

Taking the bull by the horns

B

Y THE TIME you read this, the platinum strike could be over. At the time of writing, the Department of Mineral Resources (DMR) had reported that new Minister Ngoako Ramatlhodi was “encouraged by the progress we have made on this matter and the cooperation of all parties involved.”

Also at the time of writing, the National Union of Metalworkers of South Africa (NUMSA) had announced that collective-bargaining negotiations with employer bodies had collapsed.

This raises the spectre of a national strike in the metals and engineering sector, with 200 000 workers expected to down tools if it goes ahead as planned.

While the impact on the mining industry cannot be quantified at this early stage, the infrastructure industry is likely to be hit hardest, with a potential supply lag in the rebar sector having major implications for current projects such as the Medupi and Kusile power stations.

The mining industry has been heartened by the proactive approach of Minister Ramatlhodi, who was tackling the proverbial bull by the horns as soon as his appointment was announced by President Jacob Zuma. The DMR quickly issued a statement that the Minister was committed to “consultative engagement” with key stakeholders.

“Stakeholders should focus on working together so that we move South Africa forward, and ensure we achieve our objectives as set out in the National Development Plan,” said Minister Ramatlhodi in his official statement.

More informally, Power FM local radio quoted him as saying that mining houses had not done enough “to address the well-being of workers” in terms of the living conditions around many mines. He added that while his “first duty” was to end the platinum strike, this required the government to treat the Association of Mineworkers and Construction Union (AMCU) with a modicum of respect.

This conciliatory and inclusive approach to the crisis in the platinum sector is a strong reminder that Minister Ramatlhodi is a seasoned veteran of local government, which the Chamber of Mines remarked upon in a statement.

“Advocate Ramatlhodi brings years of experience in government as a former Premier of Limpopo and Deputy Minister of Correctional Services. The South African Mining sector faces challenges that require concerted efforts by all stakeholders, and the Chamber believes Minister Ramatlhodi can only add value through his leadership of the department.”

The local media has been sifting through Minister Ramatlhodi’s media profile over the past couple of years in order to gain a better understanding of his way of thinking. Thus we have heard that the Mail & Guardian reported in 2012 that Minister Ramatlhodi was the subject of a corruption probe regarding a property deal, controversially shelved by the Scorpions in 2008, while in 2011 he told The Times that South Africa’s Constitution was a compromise that “emptied the State” and disempowered the black majority.

This headline-jostling by the media following the appointment does not conceal the fact that Minister Ramatlhodi has his work cut out for him. Without any experience in the industry he is now heading up, he will have to be diligent in winning the trust of the mining houses, the workers, their representative unions and all other stakeholders. It is a difficult road ahead, and we wish him all the best. The future of South Africa’s mining industry is at stake.

Gerhard Hope

IN SID E M IN IN G 0 6 | 2014

3

Significant life time cost savings

Metso slurry pumps for all abrasive duties Our focused product development combined with over 60 years of experience from thousands of applications has led to continuous improvements in our products.

The benefits to customers are numerous but the most significant is the life time cost saving that will be achieved by using Orion horizontal slurry pumps. They are available both in rubber lined and in high chrome hard metal versions.

Metso provides innovative and sustainable technology and services to mining, construction, and oil and gas industries. Discover more at www.metso.com/pumps Metso Minerals (South Africa): +27 11 9614000 BEE Ownership Compliant – email: mmsa.info.za@metso.com

QR code for smartphones

INDUSTRY COMMENT

Why mining is an essential industry In recent years there has been some debate as to the status of the global mining industry.

By Jeremy Clarke

Professional bodies Other professional bodies such as the Southern African Institute of Mining and Metallurgy, the Mining Industry Association of South Africa and the Council for Geoscience should be doing the same.

Such publicity would enable people to make more informed decisions with regards to their buying patterns and their objections to mining.

It might be fair to say that the global mining industry is slowly improving its image with respect to environmental management and rehabilitation. However, another risk has raised its head. At the recent West Africa Mining Investment Summit in London, there was much discussion regarding corruption in the industry. It was accepted that corruption is perceived as prevalent, especially in emerging African markets.

At the conference, this was tackled headon by government ministers, mining companies and investors alike, and there appeared to be commitment by all parties to enforcing relevant national and international laws in this regard.

UESTIONS HAVE been Climate change asked: is mining a sunset The global environmental concerns reor a sunrise industry? How lating to climate change also provide an can mining survive if global impetus to the mining industry. Many growth is limited? Now that all the ‘easy’ countries, including South Africa, are deposits have been mined, where do we go focusing on changing their population’s from here? Yes, the global mining industransportation patterns by introducing try is not in a good shape at present, but it mass transit systems and bicycle lanes. will never be a sunset industry. There is an These are constructed almost entirely old adage, which is even truer today: If you from materials that are mined, including cannot grow it, you must mine it! the bicycles.

A survey by the Mineral Information In addition, solar panels, photovoltaic Institute recently compiled the following panels and heat pumps all require prodstatistics, which clearly indicate the necesucts from mines. The savvy and well-insity for mining. During the course of their formed understand that mining and the lifetime, the survey suggests, the average protection of the environment do not have American born in 2012, with an expected to be on a collision path. lifespan of 78.7 years, will need: What is problematic is that the mining • 440 kg of copper industry is its own worst enemy when it • 14 327 kg of salt comes to public relations. It is not good at • 5 504 kg of clays telling people what products it produces • 232 kg of zinc for the world, or how essential these prodInternational approach • 495 000 kg of stone, sand and gravel ucts are to maintaining and improving A multi-lateral, international approach • 377 kg of lead everybody’s lifestyle. with engagement from all major produc• 18 173 kg of cement The mining industry must massively iming countries, relevant legal bodies, min• 12 065 kg of iron ore prove its PR. In South Africa, bodies such ing companies and investors is required to • 2 751 kg of bauxite as the Chamber of Mines are starting to generate best-practice standards.

• 228 762 kg of coal provide the public with real information Mining cannot be a sunset industry. It • 7 993 kg of phosphate rocks on issues such as safety record improvewill certainly move with the macroeco• 14 088 kg of other minerals and metals. ments, the completion of environmental nomic cycles, but will always be an essenThese are staggering numbers, made even work by mines and job creation. tial part of the world’s everyday life. more phenomenal by multiplying them by the number of ABOUT THE AUTHOR Jeremy Clarke American consumers. They be“Mining and the is a director at come astronomical when one Paradigm Project considers the new large econoprotection of the Management (PPM), mies of China and India, as well a comprehensive environment do not have as the economics of the remainproject management on path.” to be on a collision ing BRICS members (Brazil, business with specialist Russia, India, China and South skills and experience Jeremy Clarke, director at Paradigm radigm in capital projects, Africa) and – a recent acronym Project Management specifically within the – KINGS (Kenya, Ivory Coast, mining industry.

Nigeria, and Ghana).

Q

IN SID E M IN IN G 0 6 | 2014

5

AFRICA ROUND UP

MINING NEWS

from around the conƟnent

in associaƟon with

GUINEA A deal between the Guinea government and Rio Tinto regarding the Simandou iron ore development has finally been signed. The agreement with China’s Chalco, together with the World Bank, outlines conditions for the ancillary infrastructure needed for the mammoth $20 billion project. A stumbling block in negotiations to date was the proposed route and funding of a railway to transport ore from Simandou to port. The new agreement calls for a new 70 km railway across the country to Conakry, Guinea’s capital in the north, at a conservatively estimated cost of $7 billion, reports Reuters.

MALAWI Mkango Resources has announced the results of further metallurgical optimisation test work completed as part of the ongoing pre-feasibility study for its Songwe Hill rare earth project in Malawi. Caustic conversion and hydrochloric acid dissolution test work was undertaken at Nagrom, Australia, on the residue from the previous bulk leach of a rare earth concentrate. Other metallurgical optimisation is ongoing.

NIGER Areva has successfully renegotiated the terms of its expired mining contract with the government of Niger. The bilateral negotiations have persisted for more than two years. In the new deal, Areva promises to increase royalties 6

INS I DE MI NI NG 0 6 | 2 0 1 4

from its mining exploits in Niger, which is the world’s third largest uranium ore producer. “All sides are satisfied with the outcome,” Niger’s Minister for Mines, Omar Hamidou Tchiana, said at a press conference. Niger’s government stated that the new deal would require Areva to operate under the framework of the country’s 2006 mining code, which requires increased share of profits to the government and with fewer tax exemptions. Areva’s previous mining contract, which was signed in 2001 and based on Niger’s 1993 mining code, expired in 2013.

BURKINA FASO True Gold Mining has signed a letter of intent to purchase its primary mining fleet for the development of its Karma gold mine project in Burkina Faso, West Africa. The supplier selected is Equipment & Services BIA, a licenced dealer of Komatsu heavy equipment, with operations in 14 African nations. The delivery of the fleet is scheduled for December, with bulk earthworks for pond and leach pad construction beginning the following month in January 2015. Additional auxiliary equipment will be purchased to support the primary mining fleet, assist in project construction, and ultimately aid in the operation of the mine.

Pre-production mining will account for 8 Mt of material moved during the construction period to permit the

start of heap leach operations in Q1 2015. Once production has started, the fleet will be augmented with a second primary excavator and eight additional trucks to achieve an average mining rate of approximately 14 Mtpa over the life-of-mine.

GHANA A group of illegal gold miners are killed after the collapse of a mine in the Ashanti region in south Ghana, reported police and local officials. According to local police, 10 miners were inside the pit illegally digging for gold when the accident occurred. Among the miners, one managed to escape unhurt. The three injured workers were treated at a local hospital. Ashanti ministerial spokesperson Francis Dodovi said the miners were digging illegally on land belonging to a mining company in the town of Kyekyewere, when the tunnel they were excavating caved in.

ZIMBABWE The Zimbabwean government has initiated its securitisation of minerals by directing diamond firms to deposit their gems with the Reserve Bank of Zimbabwe in order to secure external loans. Professor Francis Gudyanga, Zimbabwe’s Mines and Mining Development permanent secretary, wrote to all diamond mining companies in Chiadzwa advising them of the directive. “The Zimbabwe government is

engaging financiers to assist with funding. You are therefore requested to prepare parcels of your currently produced diamonds, which must be sorted and evaluated with the involvement of MMCZ in the usual manner,” said Professor Gudyanga.

DEMOCRATIC REPUBLIC OF CONGO Ivanhoe Mines has entered into agreements to raise $137.6 million to develop its base metal projects in the Democratic Republic of Congo. The share and warrant offer (priced at $1.50 for one of each) comes after Ivanhoe’s announcement that it is studying a number of options to secure timely funding to advance its Kamoa copper discovery and Kipushi zinc and copper mine. The company, founded by billionaire mining financier Robert Friedland, said it would allocate most of its funds to its $1.7 billion Platreef discovery of platinum, palladium, nickel, copper, gold and rhodium, located in in South Africa’s Limpopo province.

BURKINA FASO Orezone Gold has appointed Tim Miller as COO to oversee the feasibility for its 100%-owned Bomboré Gold Project in Burkina Faso, West Africa. The Bombore gold deposit is the largest undeveloped oxide gold deposit in West Africa, and features about two million ounces of world-class

)4 0!93 4/ +./7

AFRICA ROUND UP

deposits within 45 m on average. Miller will oversee and complete the ongoing feasibility work. He brings with him a background that includes over 30 years’ construction and management experience with major heap leach and agitated leach operations in the US, South America and Africa. Most recently, Miller was CEO of Atacama Minerals until its takeover by Sirocco. “We are very pleased to have such a seasoned mine builder join us to oversee the completion of the BomborĂŠ feasibility study and ultimately lead the project through to production,â€? says Orezone CEO Ron Little.

NAMIBIA MDM Engineering has been awarded the Preliminary Economic Assessment (PEA) for Namibia Rare Earths Lofdal project in Namibia. Lofdal has been developed over a short period of time since the recognition of the mineral district in 2008, to the discovery of the heavy rare earth enriched zones in 2010. The delineation of a first mineral resource in 2012, followed by the preliminary indication that a xenotime concentrate can be produced from Lofdal, and that thorium can be removed, marked significant milestones. The potential of Lofdal to host a number of new rare earth deposits and, in particular, deposits with exceptional heavy enrichment, is the main focus of the project.

MDM has been awarded the next phase of work, and will complete a 43-101 compliant PEA. IVORY COAST Amara Mining plans to unveil the feasibility study for its Yaoure gold project in the Ivory Coast in early 2015, it has announced in its Q1 2014 results. The preliminary economic assessment for the project has already been completed. Executive chairman John McGloin commented that Yaoure was an exciting development, with compelling economics making it one of the few projects that remain resilient at low gold prices. “We have commenced the in-fill drilling programme at Yaoure, which will allow us to deliver two mineral-resource updates in H2 2014 and an initial FS in Q1 2015,� revealed McGloin.

GHANA The recently-held 11th edition of the West African Mining and Power Exhibition in Accra, Ghana heard that Indian companies are keen to invest in Africa’s mining and power sectors. The expo was was organised by the Confederation of Indian Industry (CII), with the support of India's commerce ministry, reported news agency IANS. Rachna Jindal, deputy director of CII, said: “There are lots of opportunities in Ghana, and for that matter Africa, for Indian companies to take advantage, and so, the companies from India have come to showcase what they can offer. We have the technology that is appropriate and are ready to make our expertise available to those countries that need it.�

Ghana has abundant natural resources like gold, diamond, manganese, bauxite, iron ore, limestone, kaolin, feldspar and silica sands. The Ministry of Lands and Natural Resources of Ghana states that political stability, availability of geological data and investment climate all contributed to Ghana finding favour with investors.

I NSI D E M I N I N G 0 6 | 2 0 1 4

7

ÂĽ #ATERPILLAR !LL 2IGHTS 2ESERVED #!4 #!4%20),,!2 "5),4 &/2 )4 THEIR respective logos, “Caterpillar Yellow,â€? the “Power Edgeâ€?trade dress as well as corporate and product identity used herein, are trademarks of Caterpillar and may not be used without permission.

DIAMONDS

The jewel in Petra’s crown

Owner of the famous Cullinan mine, Petra Diamonds has expansion plans in place to produce three million carats this financial year (to 30 June 2014) and to ramp up to five million carats by FY 2019, CEO Johan Dippenaar tells Gerhard Hope.

T

HE COMPANY RECENTLY sold an exceptional 29.62 carat blue diamond recovered from Cullinan in January for $25.56 million. Dippenaar, who appears in photographs released by the company holding the blue diamond, tells Inside Mining that it was an extraordinary experience, “this incredible concentration of value in your hand.”

He continues: “This is what is nice about our business. It is not another trainload of coal. There is obviously the excitement that these stones bring, and they are truly beautiful to behold. I hesitate to call diamonds a ‘commodity’, as they are so much more.”

Africa produces 60% of the world’s diamonds by value annually, and Petra Diamonds plays a significant role in that. It owns and operates five producing mines in South Africa: Finsch, Cullinan, Koffiefontein, Kimberley (Underground and Helam), one in Tanzania (Williamson), and is undertaking exploratory work in Botswana (in a co-operation agreement with Manica Minerals).

No Tier 1 discoveries for 20 years The significance of Cullinan is underscored by the fact that there are less than 30 kimberlite mines in production today.

There have been no Tier 1 discoveries akin to Cullinan for 20 years, despite billions of dollars poured into exploration programmes in the 1990s.

However, Petra Diamonds is itself not immune to the general constraints facing the diamond sector, with there being a number of ‘risks and uncertainties’ that LEFT Operating underground at Cullinan OPPOSITE Cullinan mine in South Africa

8

INS I DE MI NI NG 0 6 | 2 0 1 4

DIAMONDS

have been flagged as having the potential to exert a material impact on its longterm development. Hence managing these risks is integral to the company’s continued success.

From a mining perspective, the biggest challenge in the short term is management of run-of-mine (ROM) grades, especially at Finsch and Cullinan, given that current mining at both operations is taking place in mature caves, where the ore is now diluted with waste rock.

This means that volatility can be expected in recovered ROM grades at these two operations until such time as the new mining areas have been accessed, which are expected to deliver undiluted ore to the production profile from FY 2015 onwards.

Undiluted ‘gap filler’ tonnes “We are managing this issue by developing access to undiluted ‘gap filler’ tonnes, which can be drawn while the expansion plans advance,” says Dippenaar. “We are implementing a development plan to open up new mining areas below the current Block 4 operations,” confirms Dippenaar. Production levels from underground will be maintained during the transition to the Block 5 cave by means of developing a sub-level cave (SLC).

Dippenaar also confirms that this is “progressing in line with expectations,” with 2 953 m of tunnels being developed to date, out of a total of 10 072 m, of which 6 246 m relate to kimberlite tunnel development.

An interesting change at Finsch has been the decision to implement a triedand-tested conveyor system to transfer SLC material to the existing loading and hoisting infrastructure on the 650 m level, as opposed to the Rail-Veyor system envisaged earlier. This plan was revised “following further technical analysis of the capital and implementation costs,” says Dippenaar.

At Cullinan, construction and commisommissioning of the new tailings treatment atment facility has been completed, confirms onfirms Dippenaar. However, the ramp-up p-up to full production has been slower than expected. The re-crush model, which will boost the liberation efficiency iency and hence the recovered grade, iss currently under construction.

Tailings production is now forecast cast at 2.2 Mtpa this year, with a steady-state dy-state level of 2.7 Mtpa in FY 2015, at a grade of 7.5 cpht.

LATEST BLUE DIAMO0ND Petra Diamonds sold its exceptional 29.62-carat blue diamond recovered from its Cullinan mine in January for $25.56-million. This equates to $862 780 a carat. The diamond was bought for Cora International NY through the South African company Golden Yellow Diamonds, in what was billed as “a highly competitive sales process.”

Johan Dippenaar, CEO of Petra, commented: “This sale result affirms this stone as one of the most important blue diamonds ever recovered.” Cullinan mine is wellknown as the source of many of the world’s most spectacular diamonds, including the two main diamonds in the British Crown Jewels. It is also the world’s most important source of very rare blue diamonds.

29.62

Total carats of the blue diamond recovered from Cullinan in January

IN SID E M IN IN G 0 6 | 2014

9

DIAMONDS

equal to, or maybe a little bit more than, the capital spend.”

Despite the current difficult mining conditions, with grades under pressure, Dippenaar says that the company’s plans will start to bear fruit from FY 2016.

“When we get to FY 2019, we will still be heavily dependent on the volumes from Finsch and Cullinan, with valuable contributions from mines with smaller volumes, but it will be a nicely balanced portfolio. All this is by means of organic growth from our existing mines.”

Consistent diamond profile ABOVE Transporting ore underground at Finsch LEFT Finsch mine in South Africa

will remain a challenge at Cullinan while production continues to come from the more mature areas of the mine, due to the significant dilution of the ore drawn from the older production zones. However, the grade is expected to increase gradually from FY 2016. It will rise to around 50 cpht by FY 2019 when only undiluted ore will be mined and treated.

“The development of the underground declines and access tunnels, as well as the shaft preparation work, is progressing in line with expectations,” confirms Dippenaar. The South Decline is complete, and tunnel development is progressing apace, with 7 068 m developed to date, out of a total of 24 575 m.

Grown in all measures

World-class diamond resource Cullinan boasts a world-class diamond resource of 200.8 Mcts, which Petra Diamonds hopes to capitalise on by means of an ambitious expansion programme up to FY 2019. The so-called C-Cut Phase 1 will establish a new block cave on the western side of the ore body, in the upper portion of the major C-Cut resource, which is estimated to contain about 133 Mcts in total. Dippenaar explains that volatility of the ROM grade

Looking at the company’s latest results, Dippenaar notes that it has grown in terms of all important measures, from production to revenue, profitability and cash flow. “We started out on a journey of building up these mines that were deemed non-core, or more end-of-life type assets, and that build-up has been quite successful.

“This year, we will generate a cash flow closer to $200 million, which will then more or less pay for the capital expansion programme. It changes the footing that the company is on, as before it had to draw on debt facilities to fund the programme going forward. We have now reached the point where the cash flow is

$25.56 million 10 INS I DE MI NI NG 0 6 | 2 0 1 4

The selling price of the blue diamond

Key to this growth is the fact that Petra’s mines all deliver a consistent profile of diamond production, despite the occasional special stone. “We have a standard assortment every time we go to the market. That consistency of size and quality within the size range delivers a constant average dollar-per-carat value for each operation,” says Dippenaar.

Looking at the diamond market in general, Dippenaar says: “We have seen the market firming up towards the end of last year, and then this January-March period there was a nice uptick. It seems like prices have consolidated around these levels, and it is a healthy situation.”

Indeed, the first six months of 2014 have shown Petra Diamonds firing on all cylinders, with profit from mining activity up 115% to $73.4 million. Operating cash flow is up a staggering 249% to $91.9 million. In addition, the significant slump in the rand versus the dollar has assisted further in reducing costs.

Transition from mature mining blocks “Looking forward, Petra’s production growth will be driven by the transition from the mature mining blocks, where a high degree of grade dilution is recorded, to new mining areas, which will provide access to undiluted ore,” summarises Dippenaar. The impact will see the company’s margins increase from +30% currently to +50% by FY 2019, due to the increased diamond content in the tonnes drawn from underground.

“These margin improvements will be assisted by ore-handling simplifications and other initiatives to drive efficiencies that have been built into each operation’s expansion programme,” says Dippenaar.

“Petra’s strategy is to continue to deliver on its expansion plans into these new mining areas, and to increase its cashflow generation.”

and save, in print or digital.

Promoting P g p professional pr profes profess rofess rofe r ofe es e s ss siional on o onal nal n all excellence e excellen excellenc nce n e in in the water wate wa wat ater at a ter r sect sector or

ENDORSED BY

Water& SSanitation anitation Th The T h e official magazine he n e of the Water ne Wa Institute Institu u te off Southern ute thern h e rn n Africa Afric A Af a

Complete water resource and wastewater err manage e manag management g e ment me me men en ent nt

Intraregional supply chain soluƟons from producer to consumer

www.miningne.ws

Africa AAfri Af ffriririca ca

DOW D

The offici official f ffic ici icc i aall magazine magazin e of the Institute magazi magaz I nstitute ute tee of Municipal p Engine EEngineering Enginee nginee nngine ggine gin ine i nne ring ingg of Southern So uthern thern Africa Afr Afriica i ca

IMESA IM IIMES MES M ES ESA SA

HOT

A F R I C AN UPDAT AFRIC UP D ATEE S ON O N TTHE HE

ining

Commercial vehicles Preventing fuel theft

Operations

Cross-border insurance

Logistics

North-South Corridor

G R O UN D A N D UN D E R G R O UN D

SSEAT EAT

Water-perfect

Golder Associates’

Riana Munnik

New approach h to logi logistics ogi ogistic g stics sttic tics ics

BARLOWORLD

on guidelines for water-use licensing P10

WASTEWATER Ener erg rg savings at WWTWs Energy INFRASTRUCTURE DEVELOPMENT • MAINTENANCE • SERVICE DELIVERY PIPES AND PIPELINES Man Ma n Managing bulk pipelines

COAL OF AFRICA

POWER POWE

CEO David Brown on Makhado, Vele

‘WET’ COAL COAL Eskom’s skom s supply-cha ssupply-chain upp y c ain upply-cha in headaches daches

www.saconference.co.za

WATERBERG WATERBE B RG RG South Afr Africa’s ica’ss next ica next big coal rush MAY/JUN 2014 • Issue 55

A NEW WAY OF SEEING THINGS Reinventing conference content

IN N HE THE OT HOT EA AT SEAT

The he ofſ ofſccial journ jou journal j urnal nal of th tthe he Inst Institute nstitut nstit tutee off te Manag Ma agem emen ent nt oof S oouth the hern rn Afric Af A frica Waste Management Southern Africa

Promoting integrated resources rcess m ma mana management na a gem age g em me men ent ntt

Institute of In Waste Management of Southern Africa

20

signs that you are an event planner

Wastt Wastewater and biosolids treatment mentt processes pro are P16 increasingly being modified for the g generation of biogas. incre e en Dr André van Niekerk and Theunis Duminy Dum miny of o Golder Associates

MEDIA

March/Aprill 2014 4 • IS ISSN SN 1990-8857 • Cover price R50.00 • Vol 9 No. 2

PPC

Strength re eng gtt h eyo yo y ond beyond CEMENT the e ba b a ag g bag

Abdool Kader Tayob, CE at Bakers SA: Performance-driven A ormance-d rma manc nce ce e-d driv rive riven iven en n

lo logistics company P10

STAY

SSPECIAL CONNECTED The event

WATER W ATER planner’s guide FEAATTURE P3to0audiovisual

Petco

Growing a sustainable recycling{sector

Climate change Facing green challenges{head-on

Landfills

Past, present and future{performancee

Sustainability

Finding Fin ing wa ways w aays to reduce redu carbon carb bon footprint

ISSN 1684-7946 May/June 2014 Vol.Mar/Apr 12 No. 2013 3 / R50.00 iincl. ncl. l. VAT VA AT ISSN 1684-7946 Vol. 11 No. 2 / R40.00 incl. VAT

ISSN 1999-8872 • R50.00 (incl. VAT) • Vol. 7 • No. 5 • May 2014

Insight

Engineering

Engineering South Africa’s future today

Sustainable infrastructure planning & design

MEDIA

Renewable energy Opportunities in the municipal sector

in n the the

HOT OT OT SEAT EAT AT

FOOD FOR THOUGHT Top restaurants for your next event

“Our value proposition to the public sector... is our ability to deliver large-scale lee up p multidisciplinary projects.” Fuzile Felix Fongoqa, executive chairman of the NAKO Group

I S S N 0 2 5 7 1 9 7 8 V o l u m e 3 9 N o . 4 • A p r i l 2 0 1 4 • R 5 0 . 0 0 ( i n c l VAT )

Technical innovations for the waste industry

SPOTLIGHT You dream it, we make it a reality” Louis Liu, Gwefey group of companies

R50.00 (VAT incl)

is printed on 100% recycled paper

ISSN 1680-4902 R50.00 (incl VAT) • Vol 16, No 1, February 2014

3S Media’s AWARD-WINNING MAGAZINES keep you informed

A subscription will bring you:

• Topical and relevant news and articles • Projects and case studies • Unique content • Expert analysis from industry experts and thought leaders • Updates on activities of companies and key roleplayers • Industry association endorsements

www.3smags.co.za

DIAMONDS

Venetia shines for De Beers With the platinum sector facing protracted strike action, and gold under pressure, diamonds are once again South African mining’s best friend. By Gerhard Hope

T

HE CONSTRUCTION phase of the Venetia Underground Project (VUP) will result in the excavation of 1.7 million cubic metres of rock by 2021. De Beers is investing R20 billion in the construction of a new underground mine beneath its open-pit Venetia mine in Limpopo. The project will extend the life of Venetia beyond 2040, and replace the opencast as South Africa’s largest diamond mine. With underground production expected to commence in 2021, the mine will treat about 130 million tonnes of ore, containing an estimated 96 million carats, over its life. The mine will also support over 8 000 jobs directly, and a further 5 000 through its supply chain.

Two vertical shafts and a decline shaft will be sunk to a depth of one kilometre in a project that will be delivered within eight years, Venetia project director Kevin Botha said. Speaking at the official sod-turning ceremony last year, Mark Cutifani, chief executive of Anglo American and chairman of the De Beers Group, remarked that this quantity of rock is sufficient “to pave a road from here, near Musina, all the way to Cape Town, and back, for good measure.”

This is a staggering distance of 2 838 km.

This will ultimately result in the opening up of 73 km of shafts, tunnels, workshops and ventilation systems underneath the existing opencast, while it is still being worked above.

“Venetia, opened in 1992, is today our country’s most significant diamond mine.” Mark Cutifani, CEO of Anglo American and chairman of De Beers Group

“Such an undertaking begins by employing a few dozen people, fast rising to the first few hundred trained and fully inducted people, including many recruited locally,” said Cutifani. “In 2016, when the lateral development work begins beneath our feet, there will be an exciting hive of activity – designed with optimum safety in mind – engaging the skills of upwards of a thousand people, peaking at 1 400 people in 2017.

First carat from underground “This work will be made possible by hundreds of women and men in geosciences laboratories, modelling the mine and business plans, in investment committees, project offices in both cities and in temporary villages, in shaft-sinking teams, tunnelling, blasting, ventilation, load-and-haul operations and hundreds of other important jobs to bring about, by 2021, the liberation of the first 0.2 gram of diamond – one carat mined from the new underground operation, then processed through the metallurgical recovery plant you see operating today.”

Cutifani added that South Africa is home to many of the world’s most famous diamond mines. “Venetia, opened in 1992, is today our country’s most significant.

For 125 years, De Beers has been a part of South African mining and business.

Throughout that period, it has consistently developed longstanding partnerships in the diamond industry in South Africa.

“The journey of mineral discovery, investment, marketing and the consequences of industrialisation, have brought us all together with a common interest in this ABOVE Rough diamonds from De Beers LEFT Pre-shift inspection of the 50 tonne Terex RH200 shovel at Venetia

12 INS I DE MI NI NG 0 6 | 2 0 1 4

DIAMONDS

Realising possibilities...

great industry – be we in government, mining companies, investors, union representatives, communities associated with the mines, or service and product suppliers.

2 500 permanent jobs Cutifani pointed out that Venetia had already created more than 2 500 permanent jobs. “Indirectly, the mine benefits thousands more people in the community, in Limpopo and in the rest of the country. Local procurement, training and upskilling is central to our thinking for Venetia, both in the construction phase and also in the many decades after the mine converts into an underground operation.

“De Beers Consolidated Mines, having Ponahalo Holdings as our 26% BEE shareholder, is a part of the global De Beers group, now a part of the Anglo American plc group. The tangible and significant impact of skills development, and the potential to sustainably uplift rural communities, is the massive developmental potential that exists here at the heart of Venetia. The Venetia mine already touches the lives of the many communities who live in this region and province of Limpopo, famous for its archaeological evidence of an early trading centre at Mapungubwe, a place which encapsulates part of our national identity and our rich heritage as a nation.”

In partnership with the Department of Education in Limpopo, Venetia has provided infrastructure to 11 schools in the Musina and Blouberg areas, including classrooms, ablution facilities, administration blocks and water provision. Through DE BEERS LOOKS TO ANGOLA De Beers is to be granted a new concession for diamond exploration in Angola, according to Geology and Mines Minister Francisco Queiroz. The group last explored for diamonds in Angola between 2005 and 2012. It is based in London and majority-owned by Anglo American.

“The company is making a new bid, and another investment will be approved,” Queiroz told the Reuters Africa Summit.

Russia’s Alrosa, De Beers’ main competitor, operates the Catoca mine in Angola, the world’s fourth largest, in a joint venture with Endiama. Queiroz said a new deal between Endiama and Alrosa, announced in February, to explore in eastern Angola could produce huge results, with the Russian firm to spend $15.5 million on rights and over $150 million if deposits are located.

...from mine to market.

Resource Evaluation

Mineral Processing

Mine Planning

Tailings & Waste Management

Smelting & Refining

Materials Handling

Environment & Approvals

Transport to Market

Non-Process Infrastructure

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.

43

countries

166

www.worleyparsons.com

I N S I D E M I N I N G 0 6 | 2 0 1 4 13

Mining & Mine Development

offices

37,500

people

DIAMONDS

MURRAY & ROBERTS CEMENTATION Murray & Roberts Cementation has commenced work as a contractor to develop the underground mining operation at De Beers’ Venetia, which represents about 40% of South Africa’s diamond output.

Historically, the mine was a conventional opencast operation, but it reached a stage where it was decided that it could be mined more effectively as an underground mine.

Murray & Roberts Cementation assisted with the feasibility study conducted by De Beers.

The project represents a significant long-term opportunity for Murray & Roberts. An important factor in its award was the benefit Murray & Roberts Cementation receives from the expertise and technology of its colleagues in North America. This includes a new approach to shaftsinking in favour of a Canadian model that undertakes all activities in the sinking cycle in-line, with no two jobs taking place simultaneously.

This practice is expected to bring about the same safety performances achieved by Murray & Roberts Cementation’s sister companies in Canada and the US. This ’Zero Harm‘ performance is attributed both to technology and to a higher skill set among the personnel involved.

educators. It also focuses on providing scholarships to needy yet academically deserving, learners who struggle to pay their school fees. Finally, its teacher subsidy programme provides schools with grants to help them improve the quality of education in their classrooms.

The De Beers Zimele initiative, established to improve the group’s existing enterprise-development programmes, aims to develop and nurture commercially viable businesses, while bringing about black economic empowerment through the creation of small and medium enterprises. In 2012, De Beers Zimele’s Venetia Business Hub provided R3.4 million in funding to 17 small businesses. As a result, a total of 207 jobs were created and/or sustained.

Funding was provided to entrepreneurs, ranging from loans of R1 000 to R1 million, at a 6% per annum interest rate.

Cutifani said that the Venetia mine was designed with regard to the environment in which it operates . The mine is close to an area once proclaimed a national park

by General Smuts’ government, de-proclaimed by a later government, and now restored by this government with SanParks management to what is a World Heritage Site. “We are proud that the opencast operation and underground project have acquired all the necessary environmental approvals for its current and future operations.”

‘Green’ mine design the Rural Schools Programme, it also built boarding facilities for children with special needs at Ratanang Special School in Senwabarwana, Limpopo. This boarding school houses more than 300 children and has matron’s quarters, dormitories and a security guard house.

Community involvement The mine also introduced a teacher subsidy programme to three local schools in the Musina area, providing funding for additional mathematics and science

Cutifani said: “De Beers has a long, positive record and experience in being the custodian of the land and the history that goes with this site, and we have given similar attention to environmental considerations in the design of the underground mine.” Through the feasibility phase of the project, the environmental and engineering teams collaborated closely to ensure environmental impacts were minimised or mitigated. The underground mine infrastructure layout is placed well outside the 1:100-year flood line.

“Venetia will support South Africa’s mining economy for generations to come.” Philippe Melier, CEO, De Beers Group

14 INS I DE MI NI NG 0 6 | 2 0 1 4

The footprint of the mine was not extended due to the adjacent 32 000 ha Venetia Limpopo conservation area and the World Heritage Site of Mapungubwe.

De Beers, in South Africa, returns nine times the actual areas disturbed by mining activities and related infrastructure for conservation purposes. “The Diamond Route is a unique example for any company, let alone a mining one, where, because of its previous and current activities, it is able to conserve and open to the public, ecological sites for educational and recreational activity,” said Cutifani.

President Jacob Zuma praised the investment by De Beers to extend the life of the mine into the year 2040. “Let me again welcome the launch of this construction phase of the Venetia underground project. This investment in the diamond industry, the biggest single investment in the diamond industry in decades, signals that indeed our mining sector is poised for growth, and that it has a bright future.”

Investment decision Former Minister of Mineral Resources Susan Shabangu also commended the company’s investment decision, adding that it boded well for the economy of the province. “The launch of this underground mine shows that South Africa remains an investment destination of choice and, through our mining laws, we will continue to ensure that this investment sustainably benefits mining communities and labour-sending areas.”

Philippe Mellier, CEO of the De Beers Group, said that “125 years ago, here in South Africa, De Beers created an industry that it has been in the lead ever since. As De Beers expanded beyond borders and into new markets, our heritage has always been inextricably linked with South Africa.

“There can be no greater vote of confidence by our shareholders in South Africa and De Beers than the decision to build an underground mine of the future here at Venetia, one of a handful of world-class diamond mines around the world. With production set to continue into the 2040s, Venetia will support South Africa’s mining economy for generations to come, and make diamond moments possible for millions of people around the world.”

40%

Venetia’s contribution to South Africa’s diamond output

DIAMONDS

Liqhobong appoints chief project officer Firestone Diamonds has appointed Glenn Black as the chief project officer for the implementation of the Liqhobong diamond mine in the Lesotho Highlands.

B

LACK JOINS the Firestone senior management team, with 40 years’ experience in the mining industry. He has over 30 years’ project experience at a senior management level, having managed the full project life cycle for numerous projects, from project conceptual and feasibility studies through to construction, commissioning and steady-state production.

Black has spent over 20 years with the De Beers group, working on major projects in Namibia, South Africa, Canada and Botswana. He has successfully delivered nine of the largest and most complex projects undertaken by De Beers during RIGHT Construction of the main treatment plant is imminent BELOW Liqhobong is in the Lesotho Highlands

this period. These projects come with an excellent track record of delivery, ahead of schedule and on or under budget, while meeting nameplate design.

Stuart Brown, chief executive officer of Firestone, comments: “I am delighted to welcome Black. He has a wealth of experience in project execution, and brings with him the ability to help build a successful project team. This team will be critical as we start the development and construction of the main treatment plant at Liqhobong, with a view to successful project delivery in early 2016.”

revised mining lease agreement represents an important milestone for Firestone, and the company looks forward to shortly commencing construction of the main treatment plant and supporting infrastructure at Liqhobong.”

The agreement has been entered into for an initial period ending on 30 June 2021, and can be renewed for two further periods of 10 years each. A placing extension has been provided to allow sufficient time for the agreements in respect of the fundraising and Absa debt facility to be reviewed.

“The negotiations have been extensive, and we believe that the concluded agreement is positive for all parties. Importantly, the revised mining lease agreement enables the company to proceed with its fundraising, a considerable private investment in Lesotho,” says Brown.

Revised mining lease agreement Firestone Diamonds has also entered into a revised mining lease agreement with the Lesotho government, represented by the Honourable Minister of Mines, in relation to the development of Liqhobong. “The

IN SID E M IN IN G 0 6 | 2014 15

DIAMONDS

$17.8 billion worth of rough diamonds, or 135 million carats, are expected to be mined in 2014. This represents an increase of about three per cent over 2013 figures. By Paul Ziminisky

A

BOUT 50 MINES are believed to account for 90% of global rough diamond supply in 2014, with the balance coming from private or small-scale operations, where production data is unreliable or not available at all. Below are some of the largest and most impressive.

Marange tend to have a much shorter lifespan than open-pit or underground diamond mines, as the economic resource is limited to the easily accessible surface stones. Mining deeper, solid conglomerate rock is not economic in many instances.

Therefore production at Marange is expected to drop to 12 million carats or less in 2014.

Marange This 776.7 km2 alluvial deposit in Zimbabwe was ranked the largest source of diamonds in the world in 2013 in terms of total carats produced, at 17 million carats or 13% of global supply. However, 2013 production levels are unlikely to be sustained in 2014, as grades have decreased, and easily mineable loose gravel has been rapidly depleted, leaving more difficult-to-mine conglomerate stone.

This is a relatively new project, with formal mining commencing only five years ago. However, alluvial projects like

16 INS I DE MI NI NG 0 6 | 2 0 1 4

Orapa Botswana’s Orapa was the world’s largest diamond mine in terms of total value of carats produced in 2013. This year, it is expected to be the world’s largest by value yet again, estimated to produce $1.9 billion worth of diamonds. In 2014, the Orapa mine is also estimated to be the world’s largest in terms of carats produced, at 12.9 million carats.

Debswana, the joint venture between De Beers and Botswana, saw a 17% increase in production in Q4 2013, highlighted by

ABOUT THE AUTHOR Paul Ziminisky is a diamond analyst, and has held long positions at Lucara Diamond Corporation and Stornoway Diamond Corporation, owners of Karowe and Mothae and the Renard project respectively.

higher grades realised at Orapa. In addition, the Orapa One processing plant resumed operations following unplanned maintenance in Q3 2013.

Argyle Australia’s Argyle mine, known as the world’s largest producer of fancy coloured diamonds, including elusive pinks and reds, is estimated to produce 12.6 million carats in 2014, making it the second largest diamond mine in the world in terms of carats produced. While Argyle has a history of producing some of the most precious coloured diamonds globally, unpopular

DIAMONDS

LEFT Jwaneng is the second-largest diamond mine in Botswana BELOW Canada’s Gahcho Kué anticipates permitting approval in the second half of 2014

the Cut-8 expansion, which will extend the mine lifespan to at least 2025. Cut-8 will provide access to about 95 million carats of high-quality diamonds, making Jwaneng the most valuable diamond reserve in the world. Jwaneng recovered successfully from a slope failure in Q2 2012. It is expected to produce over nine million carats of diamonds worth $1.3 billion in 2014.

Venetia South Africa’s largest diamond mine, Venetia, saw a production increase of 57% in Q3 2013, on higher volumes and grades ,following recovery from flooding earlier in the year. A plan to convert Venetia to an underground mine received environmental approval in October 2013. The project build is scheduled to commence shortly, which will increase the mine life beyond 2040. Venetia is expected to produce over 3.5 million carats in 2014, with production valued at over $500 million.

Letseng Landlocked Lesotho is home to the Letseng mine, which has a history of

brown diamonds, most of which are classified as industrial quality, account for the majority of Argyle’s production, making the mine’s average carat value produced among the lowest in the world.

Alrosa The Russian government-run super-major ALROSA has nine primary diamond mines, ten alluvial mines and two mines in development, accounting for about 95% of all Russian diamond production.

ALROSA’s mines represent eight out of the top fifteen largest producing diamond mines in the world in terms of carats produced. Its Jubilee and Nyurbinskaya mines are both expected to produce over nine million carats in 2014, making these the fourth and fifth largest projects in the world according to 2014 projections.

Jwaneng The second largest diamond mine in Botswana, Jwaneng, is nearing completion of IN SID E M IN IN G 0 6 | 2014 17

DIAMONDS

LEFT Ghaghoo in Botswana is expected to commence production in the second half of 2014 BOTTOM Letseng is located in landlocked Lesotho BELOW Illustration of the underground section of the Argyle mine in Australia

Gahcho Kué

consistently producing the most valuable diamonds in the world on an average per-carat basis. While it is expected to produce only 110 000 carats in 2014, the average price of carats produced is estimated to be around $2 200, which is significant considering the global average price per carat of rough diamonds produced is around $130.

Grib This year marks the first full year of production at Russia’s Grib diamond mine.

Expected to produce four million carats a year once it has ramped up to full production, Grib has a reserve of about 75 million carats and a mine life of about 20 years.

Currently owned by Russian oil-major Lukoil, the company has publicly expressed interest in selling the mine, which is not a core asset.

18 INS I DE MI NI NG 0 6 | 2 0 1 4

Ghaghoo Botswana’s Ghaghoo diamond mine is expected to commence production in the second half of 2014. Once production is ramped up fully, Ghaghoo is expected to produce 750 000 carats a year, worth an estimated $200 a carat.

The most anticipated diamond development project in the world, Canada’s Gahcho Kué continues to progress, with permitting expected to be approved in the second half of 2014. Mechanical completion of the processing plant and cold commissioning are scheduled for early 2015. Once ramped up fully, Gahcho Kué is expected to produce five million carats of diamonds a year, worth an estimated $185 a carat.

DIAMONDS

Latest diamond inspection technology The Swiss Gemological Institute (SSEF) has developed the Automated Diamond Spectral Inspection (ASDI), a device that can analyse large quantities of melee diamonds at low cost.

T

HE DEVELOPMENT of the instrument is all the more important following concerns expressed by members of the global diamond industry in the past year after undisclosed lab-grown diamonds were mixed in with parcels of natural diamonds.

The ASDI, which has a patent pending, analyses round polished diamonds ranging from 1.0 to 3.8 mm in diameter. The machine conclusively identifies colourless natural diamonds, and operates at an unrivalled average sorting speed of 4 000 stones an hour. The machine uncovers colourless synthetic diamonds, both HPHT- and CVD-grown, as well as colourless HPHT-treated diamonds.

“The threat of undisclosed synthetic diamonds possibly mixed into batches of melee diamonds is a very serious issue,” said Jean-Pierre Chalain, director of SSEF’s diamond department. “As part of SSEF’s mission to protect the jewellery and watch-making industries, the release of ASDI brings a safe, reliable and very efficient industrial solution to the trade.

This machine can authenticate melee diamonds of low individual value using hi-tech methods at a highly competitive price per stone.”

Two major Swiss diamond suppliers and two prestigious Swiss jewellery and watch-making companies have already ordered the ASDI machine. The SSEF has already tested 400 000 diamonds submitted for inspection by the Swiss diamond trade using the ASDI machine.

At the recent CIBJO Conference on synthetic diamonds sparked vigorous debate, a range of speakers provided delegates with a deep understanding of the issue of lab-grown or synthetic diamonds. The

event was coordinated by the CIBJO Diamond Commission, and moderated by Ronnie Vanderlinden, president of the Diamond Manufacturers and Importers of America (DMIA). He opened the event by saying that there was nothing against trading in synthetics as long as they were openly disclosed.

Although the issue has received great media attention in the past couple of years due to the mixing of synthetic stones into parcels of melee, Vanderlinden reminded the audience that this issue had been around for about 50 years.

“There is no need to fear lab-grown diamonds. They will be part of our lives in the future as diamond mines become depleted.” Vanderlinden said that litigation would not be successful in the area of synthetics, and called for greater communication between the synthetic diamond sector and its naturally mined stones counterpart.

Russian scientist Dr Andrey Katrusha, an expert in the field of lab-grown diamonds, spoke about the HPHT and CVD production methods. He said the costs of both methods were similar, as were the profit levels. The process was already very efficient, and within several years was likely to become at least ten times as efficient.

Dr. Katrusha pointed out that most of the lab-created production was aimed at industrial usage. Annual production could reach two million carats a year, with factories being set up in China.

Dr. Simon Lawson, from De Beers Technologies UK, said the diamond miner has been involved with detection technology research for 30 years. The aim of creating detection machines, such as the ASDI, was to maintain consumer confidence. From a technical point of view, it was still difficult to create a perfect colourless diamond since there are often metallic inclusions.

The key features of lab-grown diamonds are fluorescence and striations, with a ‘terrace’ effect on the surface of the stones. The machines developed by De Beers for synthetic-diamond detection were branded DiamondSure, DiamondView and DiamondPlus.

De Beers has also produced the Automated Melee Screening (AMS) machine for small diamonds of 0.10 to 0.20 carats.

The diamond company is making these available to diamond trading company sight-holders and to the Forevermark laboratory in Antwerp. The pass rates for detection using the AMS machine were 98% for 10-point stones, 97% for five-pointers, and 96% for one-pointers.

An example of a laboratory-grown or synthetic diamond

IN SID E M IN IN G 0 6 | 2014 19

DIAMONDS

DMS plants for Russia A specialised 5 tph dense media separation (DMS) pilot sampling plant designed by SNC-Lavalin’s South African office could pave the way for the increasing reclamation of very fine diamonds from dump material.

of the time spent on-site, since the equipment can be cold-commissioned at the SNC-Lavalin yard before being despatched.

“The modular team is made up of highly-skilled professionals who are able to multi-task on any given project,” says Rousseau. “This invariably creates a price advantage for SNC-Lavalin when tendering for smaller projects.

T

Compact plants

HE INNOVATIVE containerised plant was ordered for deployment at a mine in Russia. It is the third order that has been placed with SNC-Lavalin’s South African office in recent times for this region. This was handled as a fast-track project because the company needed to ship the containerised plant to site before the onset of winter in the Northern Hemisphere. However, since winter temperatures in this far eastern region of Asia drop as low as -60˚C, the recovery plant will only operate during the summer months.

“The new 5 tph DMS sampling plant has been designed to process the fine dump material previously generated by the operation’s autogenous grinding mill,” says Roger Rousseau, manager of the modular group at SNC-Lavalin’s South African office. “The material contains a high amount of -0.5 mm materials, mostly clay and other fines, and our scope was to treat

20 INS I DE MI NI NG 0 6 | 2 0 1 4

material from -2 mm to >0.5 mm.” The full scope of the order involves the design, manufacture and commissioning of the 5 tph pilot plant, comprising front-end scrubbing and screening and a DMS plant to recover diamonds from alluvial and kimberlitic deposits in the required range.

Modular team The plant was designed and executed by a dedicated modular team at the Johannesburg office. This specialised team was established three years ago to meet the increasing market demand for compact plants that can be split into smaller sections and transported in containers to all parts of the world. The 5 tph DMS sampling plant was skid-mounted and shipped to site in two containers.

Rousseau comments that the trend towards containerising operational plant equipment has a number of advantages, including simplified logistics and a reduction

“We established a modular group in 2010 to focus on the specific market requirement for compact plants that can be broken down into smaller sections and easily transported anywhere in the world.

"This approach reduces time spent on-site, because the equipment can be cold-commissioned prior to being delivered to the customer. Another benefit is that additional modules can be installed at a later stage to increase capacity.

“In addition, the modular group specialises in building containerised plants, which also makes logistics far simpler.

This small-projects group has a team of highly skilled professional members, all capable of multitasking. This gives us a

5 tph

The capacity of the DMS sampling plant

DIAMONDS

complete most of the work in a local workshop, while apSNC-Lavalin offers plying the highest standards modularisation and of health, safety and quality. containerisation opportunities Rousseau says his team is to the African mining and able to tap into SNC-Lavalin’s substantial global netmetallurgy sector work of technical resources and specialists. These experts provided valuable input with regard price advantage when tendering for small to the properties, standards and specifiprojects, while these smaller customers cations of the structural steel needed to enjoy the benefit of having full access to the resources of one of the world’s leading engineering and construction groups.”

construct the DMS plant for the harsh Northern Hemisphere climate.

SNC-Lavalin is one of the leading engineering and construction groups in the world, as well as being a major player in the ownership of infrastructure, in addition to the provision of operations and maintenance services.

It has offices across Canada as well as over in 40 other countries around the world, and is currently working in some 100 countries.

Modularisation and containerisation SNC-Lavalin offers modularisation and containerisation opportunities to the African mining and metallurgy sector to address the risks associated with working at remote sites on the continent.

For companies operating in Africa, one of the biggest challenges is erecting equipment in remote locations where there are always concerns about safety and access to reliable services or resources. The ability to modularise plants makes it possible to OPPOSITE An example of diamond mining in Russia: the Mir mine in Yakutia RIGHT A DMS plant designed specifically for the Northern Hemisphere BELOW An illustration of the 5 tph plant

IN SID E M IN IN G 0 6 | 2014 21

DIAMONDS

Nedbank funds new diamond mine Nedbank Capital has successfully concluded a $25 million short-term debt facility for Gem Diamonds.

T

HE FUNDING WILL be used by the company to complete the construction of its Ghaghoo diamond mine in Botswana. Nedbank Capital acted as sole mandated lead arranger for the transaction.

The Ghaghoo underground diamond mine is at an advanced stage of construction of Phase One, with a total Phase One resource estimated at 20.53 million carats and a production capacity of 720 000 tonnes a year. Development of Phase One was based on extensive exploration drilling and sampling conducted by De Beers. The Ghaghoo mine is forecasted to be fully operational by Q4 2014.

“The Ghaghoo short-term financing secures our participation in the longer-term project financing in a low-risk, politically stable region of Botswana, a country with mining as the main contributor to its national wealth. Botswana also offers unique business opportunities within this sector, especially diamonds, which has been the mainstay of its economy for over 48 years,” says Nivaash Singh, The Ghaghoo underground mine is at an advanced stage of Phase One construction

head of international mining finance at Nedbank Capital.

Investment banking Nedbank Capital is the investment banking business of the Nedbank Group. It provides seamless, specialist advice, debt and equity raising and execution, and trading capabilities to clients in all major South African business sectors. It is based at the group’s head office in Sandton, Johannesburg, with large operational centres in Durban and Cape Town, as well as offices in London, Toronto, Namibia and Angola.

Nedbank Capital is keen on investing in virgin-ground gold exploration across Africa, specifically in Tanzania, Ghana and Burkina Faso. Apart from greenfield goldmine projects in these three countries, it is also looking to invest in Mozambique’s burgeoning coal-mining sector.

The investment firm is also looking outside Africa for greenfield projects to finance, with Canada and Australia on its radar. “We consider any investments outside Africa as part of an African strategy for greater, long-term investment in the continent, as Toronto, Vancouver and Perth are significant mining business

communities that spearhead financing and mining project development in Africa,” says Paul Miller, mining and resources investment banker at Nedbank Capital.

Projects spanning Africa The company’s mining investments span Africa, with financing of projects in Namibia, Malawi, Sierra Leone, Liberia and Kenya. In January this year, in joint venture with Standard Bank, it refinanced Paladin Energy’s Langer Heinrich uranium mine in Namibia, in addition to refinancing Paladin’s Kayelekera uranium mine in northern Malawi.

Miller said investment firms like Nedbank Capital would be keeping a close eye on the government’s ongoing policy framework and initiatives in the mining sector, in addition to the prevalence of large-scale labour unrest, such as the platinum strike.

“This is a worrying trend for the South African mining industry, as the country has always relied on foreign investment for funding for new mining ventures. It does not have the large capital base that is required to finance new, large greenfield mining operations,” added Miller.

NEDBANK APPOINTS MINING EXPERT Nedbank Capital has appointed Haaris Zafar as principal for mining merger and acquisition activity on the African continent. Zafar, who is based at Nedbank’s London office, will be responsible for expanding the African mining advisory business of Nedbank Capital.

According to Shabbir Norath, head of corporate finance at Nedbank Capital, the appointment of Zafar will further assist Nedbank Capital to deliver on its growth strategy into Africa by supporting and providing its mining clients with sustainable advisory solutions on the continent.

Zafar’s previous experience includes senior positions in London at Macquarie Capital, the Royal Bank of Scotland and ABNAMRO. He will continue to focus on African mining clients for Nedbank Capital.

22 INS I DE MI NI NG 0 6 | 2 0 1 4

DIAMONDS

Top investment tips

I

NVESTING IN diamonds has been something of a hot topic among those interested in asset investment over the last few years. Depending on the financial capacity of the would-be investor, investing in diamonds is a relatively safe yet lucrative alternative. While there are many benefits to such an investment strategy, it is one that requires an ‘eyes wide open’ approach.

According to diamond expert Yair Shimansky, investors need to have an investment strategy when purchasing diamonds. “The type of diamond in which you should invest is very much dependent on whether the investment is for the short, medium or long term,” he comments. “Not all diamonds can be used for investment purposes – it is a very specialist category.

You need to know what you are buying and which market you buying for.”

With an international presence, Yair Shimansky not only has experience in retail jewellery, but also has great knowledge and insight when it comes to diamonds.

He notes that the interest in investing in diamonds has piqued considerably over the last couple of years, manifested in the number of both private clients and financial institutes who have approached him for advice on the topic. It is no doubt an appealing prospect, as diamonds are a wise, hard-asset investment, with a considerable return on investment. What makes the investment process so interesting (and potentially difficult), however, is that every diamond is unique, like a fingerprint, and thus needs to be valued

individually. While the ‘four Cs’ – cut, colour, clarity and carat – are guidelines that help determine the value of a diamond, it can be something of a subjective process.

Potential investors would almost certainly require professional help. As with any highly specialised industry, there is considerable room for fraud. That said, however, the intricate valuation process and necessary homework that goes into investing in diamonds is precisely what attracts certain investors. It is all part of the allure of the precious gems that, for centuries, have been a symbol of wealth.

“While diamonds are increasingly attractive, it is crucial that investors approach the prospect with patience, knowledge and a medium- to long-term investment in mind,” concludes Shimansky.

IN SID E M IN IN G 0 6 | 2014 23

Coralynne & Associates +27 (011) 849 3142

ABSOLUTE MATERIAL FLOW CONTROL

• • • • • •

Optimum material flow Up to 80% decrease in material degredation Reduced dust and noise levels Virtually maintenance free Greatly reduced spillage Significant reduction in belt damage

Tel: +27 (0) 11 827-9372 Fax: +27 (0) 11 827-6132

w w w . w e b a c h u t e s . c o m

•

w e b a @ m j e n g . c o . z a

SPECIAL COMMODITIES

Africa’s potash hub Canadian junior Allana Potash has set its sights on establishing the first potash mine in Africa in Ethiopia by 2017. By Gerhard Hope

P

OTASH, ALSO known as potassium chloride – a key ingredient in fertiliser – can replenish soil nutrients to provide higher crop yields and increase plant development.

“Allana and Ethiopia are strategically located to serve the rapidly growing African demand for potash, where typically potash consumption has been low,” says Farhad Abasov, president and chief executive officer of Allana Potash Corp.

ABOVE The Danakil Depression is located in a remote area of Ethiopia BELOW Analysts and investors on a site visit to the project in May

“We believe that, together with Ethiopia, one of the world’s fastest-growing economies, Allana Potash can foster growth in potash consumption in East Africa over the next several years.”

Strategic partnership Abasov confirms that the Ethiopian government is fully supportive of the project.

“They are also fully behind our strategic partnership with Israel Chemicals. The Danakil mine will provide potash for Ethiopia and Africa and, combined with ICL’s agronomic fertilisation know-how, our alliance will enable local farmers to increase

agricultural output and food security for the region.”

A feasibility study has indicated that Allana’s mine will have the potential to produce about a million tonnes of potash a year over 25 years. The potash resource is large enough to significantly extend the life of the mine. A solution mining method will be deployed, while the 45˚C sunbaked grounds of the Danakil Depression will be utilised for solar evaporation. This

POTASH FACTS AND FIGURES In 2011, the global demand for fertiliser totalled 185 million tonnes, with over 50 million tonnes attributed to potassium-based fertilisers such as potash, according to the FAO Fertiliser Outlook. Many market analysts believe the demand for potash will continue to grow, which will continue to support current and future investment in potash exploration and development projects. According to the US Geological Survey, Canada, Russia, Belarus, Germany and Brazil hold the largest potash reserves. Canada, Russia and Belarus were the largest potash producers during 2011, with 13.5 million tonnes, 9.5 million tonnes and 7.5 million tonnes respectively.

Potash production via mining can be time- and capital-intensive, due to the location of many potash deposits. Potash is formed by the evaporation of seawater and the compression of evaporated minerals by sediment layers over time. As a result, potash is often found in deep underground deposits.

Despite the depth at which many potash deposits are found, many potash projects are economical due to strong demand. Potash prices are quoted in the spot or contract market. In 2012, the contract price quoted was as high as $575 /tonne. Analysts continue to forecast a strong demand for potash in the foreseeable future.

24 INS I DE MI NI NG 0 6 | 2 0 1 4

SPECIAL COMMODITIES

president Mulatu Teshome; Foreign Minister, Tedros Adhanom; Minister of Mines, Tolossa Shagi and senior officials of the Ministry of Agriculture to discuss investment issues. Ofer confirmed that the government is “supporting our investment projects. They promised us that they will build a 130 km road from the mine to the Djibouti border in the near future.

Investment encouraged

DALLOL POTASH PROJECT FACTS AND FIGURES • Total capex: $642 m • Total opex: $98.75/tonne (delivered to port) • Payback period: 3.1 years • Potash price: $430/tonne

mining and processing method will be considerably less costly than open-pit or deep-shaft mining.

$642 million capex Allana’s FS has pegged its capital expenditure for the Danakil project at about $642 million. ICL operates mines in Israel, Spain and Britain. In 2013, it sold over five million tonnes of potash worldwide.

ICL controlling shareholder Idan Ofer has promised to make Ethiopia “Africa’s centre of potash production,” and invest in the country’s electricity infrastructure, reports allAfrica. Controlled by Israel Corporation, ICL recently bought a 30% stake in Canada’s Allana Potash, which is preparing to mine potash deposits in the Dallol region in the Afar Regional State, in north-east Ethiopia.

Ofer, who moved to London from Israel last year, visited the potash mine in the Dallol region in May and told journalists that he was satisfied with the progress of the project. “I am happy with the development. Officials of Allana are closely working with the local authority and they are conscious of the demands of the local community. They pay much attention to the local community. So I am happy with that.”

becoming operational, ICL will import raw materials and produce potash and phosphate fertilisers. “After we start mining the potash deposit, we will manufacture the potash fertiliser locally. We will mainly supply the potash fertiliser for the local market in Ethiopia. However, we will also export some portion of it.”

Ofer was accompanied by Israel Chemicals CEO Stefan Borgas, who said that ICL had already invested $25 million in Allana’s potash project, and was committed to invest an additional $59 million in the near future. Borgas said his company will build the fertilizer factory within a year.

“We will invest $600 million in the fertiliser processing plant. The potash mine and factory will together open up 5 000 jobs. We have already invested $600 000 in farmers’ education on the use of fertilisers. There are 600 demonstration sites all over the country,” said Borgas.

Ofer and Borgas also met with Ethiopian

“What I like about the Ethiopian government officials is that they encourage investment, and they deliver on what they have promised. That does not often happen in other countries, and that is why we want to invest here. If we were not satisfied, we would not invest this amount of money here.”

Ofer also expressed an interest in the power-generation sector, the development of which is essential to sustain economic growth in Ethiopia. ICL has two sister companies involved in power and natural resources development, namely Quantum Pacific and IC Power. Quantum focuses on investments in Asia, while IC Power focuses on power development in Africa, particularly in Kenya, Nigeria and Congo.

Ofer confirmed that ICL would send a technical team to Ethiopia to undertake a study on the power-generation sector. The outcome of this study will determine what route ICL will take, namely hydroelectric, geothermal or wind. “I want my company to invest in power generation,” said Ofer.

Solution mining will be the main method, with the Danakhil Depression utilised for solar evaporation

Potash fertiliser factory Ofer revealed that ICL is planning to build a potash fertiliser factory at a cost of $600 million in Ethiopia. Prior to the mine ABOVE The potash mine is located in the Dallol region of Ethiopia RIGHT Meridian drilling operations with a CS14 drill rig

312 km

2

The size of the two potash concessions in Ethiopia’s northeastern Danakil Depression IN SID E M IN IN G 0 6 | 2014 25

RESEARCH & DEVELOPMENT

South Africa is a research hub for Africa South Africa’s global research output in the geosciences represents a major competitive advantage for the continent. This has resulted in seven major universities and institutes establishing a new research centre.

By Gerhard Hope

T

HE DEPARTMENT OF Science and Technology (DST) and the National Research Foundation (NRF) have launched the Centre of Excellence (COE) for Integrated Minerals and Energy Resource Analysis (CIMERA) at the University of Johannesburg. This is the fifth new DST-NRF COE launched this year, and brings the total number to 14.

CIMERA, co-hosted by the University of the Witwatersrand (Wits), is the first COE to be hosted by the University of Johannesburg (UJ). It has been built on the foundation of two world-class research centres or units in South Africa, namely the PPM Research Centre at UJ’s Department of Geology, and the Economic Geology Research Institute at Wits’ School of Earth Sciences. Other collaborating partners include Rhodes University, Stellenbosch University, the University of Fort Hare, the University of Pretoria and the University of Venda.

“The main focus of CIMERA is to train skilled economic geologists through undertaking postgraduate research studies on mineral and energy resources in South Africa. That makes us different to the economic geology units at, for example, the Council of Geoscience or Mintek, which conduct applied research,” explains Professor Nic Beukes, director of CIMERA, at the official launch. “A university cannot just do research; it has to train students and conduct its research through its students.”

Relevant research Professor Beukes adds: “The relevance of this research is very simple. South Africa represents the most valuable piece of mineral real estate in the world. That is critical, and we have to look after our mineral resources and use them properly. I also believe that the African continent is moving into a new era of bulk commodities.

“In order to develop these major deposits of manganese, iron ore and bauxite, for example, you need infrastructure and transport systems. However, we know very little about many of these deposits, and this represents a huge opportunity for CIMERA as

“South Africa is the most prolific and leading research hub on the African continent.” Professor Nic Beukes, director, CIMERA

26 INS I DE MI NI NG 0 6 | 2 0 1 4

we try to gain a proper understanding of the continent’s mineral resources.

“Our real goal is thus to serve as a central hub for mineral and fossil fuel resource research in South Africa, but also for human capital development, and to train economic geologists for Africa as a whole,” says Professor Beukes.

Significant investments Professor Ihron Rensburg, UJ vice-chancellor and principal, says that the launch of CIMERA continues the trend of South Africa “making significant investments in our research areas of comparative advantage. It is part of a global research push that has seen global research collaborative spend doubling in the last 15 years to close to $4 trillion, with global and domestic spend punctuated by the significant investments in CERN, the European Organisation for Nuclear Research and, of course, most notably for us here in South Africa, the Square Kilometre Array.

“Therefore the national investment in the five new COEs not only sustains the momentum of the last decade, but has seen South Africa’s research output double, and our own international collaboration triple, which has established South Africa as the most prolific and leading African research hub.”

37

Number of established researchers collaborating in CIMERA

RESEARCH & DEVELOPMENT

Professor Rensburg reiterates that the national investment in CIMERA underscored South Africa’s prolific global research output in the geosciences, “and represents a major competitive advantage for South Africa and the continent, while our mineral resources are among the best and most diverse.”

Established researchers In collaboration with 37 established researchers at a range of leading universities and institutions, CIMERA will “seek to understand the origin and distribution of our vast reserves of minerals and fossil fuels, and of course how best and how most sustainably we can deploy these while at the same time training highly qualified economic geologists by undertaking practical research. May this launch be both an inspiration and a challenge.”

Professor Tshilidzi Marwala, UJ deputy vice-chancellor, research, postgraduate studies and the library, comments: “South Africa’s economy has been built through minerals. Some of the most gold ever been mined was actually mined in South

Africa, in fact in this city. The city of Johannesburg was built around the mining industry, so to us it is not puzzling that CIMERA would come to this city and to UJ in particular.”

He stresses that South Africa is a developing country in need of economic diversification. “We must have a point of departure that is going to give us a comparative advantage. For me, that is the minerals and energy industry, because through beneficiation, we become wealthier as a nation, and are therefore able to meet our social and economic obligations as a country.”

Bearing fruit NRF CEO Dr Albert van Jaarsveld concludes: “We are in a process of making a large suite of strategic investments in our science system over time, and we have been driving this with the DST for a considerable period. I think we are starting to see the traction, and the results of those investments are starting to bear fruit at an institutional and also a national level. We invest in research chairs, and will

continue to grow those, in addition to COEs and our national research facilities – all of these are considered to be critical platforms to drive our system into the future. We will make those investments in areas we consider to be of national strategic importance. The objective, of course, is to grow a well-defined global competitiveness in those particular areas, and to grow a critical mass of expertise that can lead our science endeavours in those areas. It is particularly important that we encourage the broad participation of players from across the system in these initiatives.

“We are particularly delighted about this initiative, which has two nodes working together, Wits and UJ, and of course colleagues from other participating institutions. This is precisely what we are trying to do with this initiative, to break down institutional barriers and make sure people can collaborate across the landscape, combining strengths and making sure we can truly compete on a global stage.”

BELOW Geological map of South Africa

IN SID E M IN IN G 0 6 | 2014 27

SKILLS & TRAINING

Upskilling for a more As Africa renews its efforts to improve mining’s developmental impact, the spotlight is increasingly falling on the skills needed to manage the sector and the capacity of African educational institutions to deliver them.

By Professor Caroline Digby

T

HE SHORTAGE OF technical skills – such as mining engineering and geology – has been well publicised for some time now. What is increasingly apparent is that we need to generate a wider range of crucial skills if mining is to forge a more integrated and positive role in economic growth and sustainable development on the African continent. Capacity needs to be built in fields like strategic planning, law, contracts, finance, fiscal policy, the environment, community affairs and human rights.

The dearth of these skills has meant that Africa – despite its abundance of mineral resources and long history of mining – has so far, not reaped the anticipated developmental benefits. This is one of the main reasons why African governments have endorsed the African Mining Vision (AMV), aimed at managing

28 INS I DE MI NI NG 0 6 | 2 0 1 4

Africa’s minerals so the sector can help proactively in lifting the continent out of poverty and moving toward growth, development and prosperity for all. The AMV recognises that “the key element in determining whether or not a resource endowment will be a curse or a blessing, is the level of governance capacity and the existence of robust institutions.”

Implementing arm The implementing arm for the AMV is the African Minerals Development Centre (AMDC), which has been established to translate the vision into practical solutions for reducing poverty and involving people in development. The AMDC is an initiative of the African Union Commission, the UN Economic Commission for Africa, the African Development Bank and the UN Development Programme. Alongside promoting

THE CSMI The CSMI is a global centre of excellence in Africa. It provides training and education in the fields of safety, health, the environment and the community (SHEC) for managers, practitioners and regulators and civil society on topics in the sustainable development domain. It also offers education leading to recognised academic qualifications for professionals wishing to pursue careers in the SHEC disciplines within the private sector, industry, government or civil society organisations. The CSMI supervises post-graduate research and conducts applied client-specific research. A strong focus is to grow research programmes established in support of the centre’s objectives, which promote best practice in SHEC and build evidence for capacity building and sustainable development in the African extractive industries.

the enhanced use of geological and geospatial information, the AMDC has set broad-based skills development in the sector as one of its priority work streams.

This initiative presents a major opportunity to build partnerships and support across Africa’s educational institutions and borders.

At the Centre for Sustainability in Mining and Industry (CSMI), we see great value in establishing a robust programme of continuous professional development for all stakeholders in the sector. While we contribute to the postgraduate degree courses at Wits University’s School of Mining Engineering and other departments, our main focus is to provide short training programmes and

SKILLS & TRAINING

sustainable future workshops for practitioners already in the workplace in the private and public sectors. As we develop our suite of courses, we plan to move more in the direction of on-site training and residential block courses, alongside developing our online or distance-learning capability.

Integrated training delivery A useful model to start thinking about more integrated delivery of training across Africa and mining regions globally is our Minerals Industry Risk Management course, originally developed at the request of Anglo American to roll-out across their operations worldwide. CSMI is part of a consortium of universities, licensed by the University of Queensland with Wits University, the University of Pretoria and the University of Cape Town as the South African university partnership, as well as universities in Brazil, Chile, the US and Canada. The aim of the course is to initiate a radical change in safety within operations through improving managers’ practical understanding and practice of safety risk management, leading to better decisions affecting safety. As international standards start to bite and performance requirements converge, it will become more common to bring together internationally-accredited providers capable of delivering training to an international standard.

Globally, we have seen a significant tightening of safety, health, environmental and community regulations as a response to growing concerns about poor performance and high-profile accidents in the industry. However, these regulatory frameworks in Africa are still somewhat piecemeal and the capacity of the various regulatory agencies to enforce and monitor compliance is generally weak.

Accredited short courses The CSMI has been delivering accredited short courses for mining regulators since 2009. The training develops capacity through modules that examine legislation and enforcement of legislation, as well as the tools and

approaches available to regulators such as inspections, audits and investigation methods. We benchmark our courses against other internationally recognised regulator qualifications.

Our research has shown that there is much work to do to build capacity, as most regulators report difficulty in finding and retaining the right candidates, and good staff are often lured away to the private sector by higher salaries or a better-resourced work environment. We need to advocate for more formal, continuous professional development and mentoring to be linked to career progression in the public sector, if we are to dispel the widely held perception that the regulator is poorly equipped to deal with a better-resourced private sector.

Demand for new skills

with consultants, Synergy, to deliver a four-module programme on Community Relations Practice for those on the frontline of managing social risks and improving cooperation among diverse stakeholders for better development outcomes.

Talent gap A 2014 report by Deloitte lists the talent gap as one of the top 10 issues facing mining companies in the coming year. As cost-cutting sweeps across the industry, even companies who have had strong talent development are experiencing significant layoffs, with the loss of operational experience and institutional memory. This trend is hitting all levels of management right up to the boardroom. Given that we can expect the future to be more uncertain, from commodity price volatility to climate change impacts, we as universities must respond proactively to equip tomorrow’s leaders with the multi-disciplinary skills and resilience that will ensure mining does maximise its contribution to sustainable development.

The demand for new skills is not restricted to the public sector and the regulator; mining companies are also increasingly realising the need for a more holistic set of skills to manage their business through the life cycle. Right from the earliest days of exploration, company personnel are now be“We have seen a significant ing asked to manage tightening of safety, health, a complex terrain of environmental and community sustainable development issues from ocregulations.” Professor Caroline Digby, cupational safety and director of CSMI health to local community engagement and environmental ABOUT THE AUTHOR mitigation measures.

Professor Caroline Digby is Gone are the days director of the CSMI at the School when an underof Mining Engineering at the performing mine manUniversity of the Witwatersrand. ager can be shunted She has worked in the field of into community relamining, sustainability, education and regeneration for over 20 years, tions and expected to including high-level roles with transform overnight the renowned Eden Project in the into a successful comUK, the Post-Mining Alliance, the municator and relaInternational Council on Mining tionship-builder in and Metals, and the International the local community.

Institute for Environment Launched in 2013, and Development.

CSMI has partnered

IN SID E M IN IN G 0 6 | 2014 29

WOMEN IN MINING

Women in mining face challenges South Africa is arguably ahead of other major countries focused on mining in terms of bringing women into the mining workforce.

E

VEN SO, women in the industry face mammoth challenges, from a lack of suitable physical facilities and protective clothing, to outright sexual harassment. “All over the world, mining is a male-dominated industry. I think South Africa is leading in terms of developing women in mining,” says Debbie Ntombela.

“That said, it is a tough place to be, whether you are in the public or private sector. You always have to prove that you are ten times better than your male counterparts,” says Ntombela, a director at law firm Hogan Lovells and a mining law specialist with over 17 years’ experience. This includes five years as a lawyer in the private sector and twelve years with the Department of Mineral Resources, where, in 1997, she became one of the first two female regulatory managers in the department’s history.

“We had a lot of training and that was a good thing; I knew very little about the mining industry,” she says. “I had applied and landed at the right place at the right time. They wanted to transform the department and were looking for women.”

Scepticism towards women in mining Ntombela was keenly aware of the scepticism with which many men viewed women in mining. “Even now, it is a huge challenge. In many instances men have not really accepted that women can work in mines.”

The hurdles for women working in the business or commercial sector of mining and for women working underground can be substantial 30 INS I DE MI NI NG 0 6 | 2 0 1 4

Aspects of the physical reality of mining, especially in mining operations, continue to be unwelcoming for women. “The physical conditions women work under are often inappropriate,” says Ntombela. “You still find ablution facilities that both genders are expected to use, creating circumstances that are ripe for harassment.”

She believes it could take another 10 years before women are truly accepted as part and parcel of the industry, especially underground. “That is a pity because women are hard workers. We are loyal, diligent and hardworking and if there were more women in the industry, I believe we wouldn’t have all these strikes. The first thing we think of is, I have a child and I need my salary.”

Industry does have its attractions Despite the many challenges that women face in mining, the industry does have its attractions. “What are they? Success,” says Ntombela. “I work with big mining clients and have a lot of respect for them, and they for me.”

Her colleague, associate Thokozani Dlongolo, also with Hogan Lovells, says mining is a fascinating industry that can benefit greatly from the skills and involvement of women. “For me as a young black woman, mining is part of the development of our country. It touches our history and encapsulates virtually all of South Africa’s most pressing political and economic issues, from unemployment and poverty through labour law, to land reform and conservation through environmental law, to inequality and economic freedom through commercial law as well as criminal law. This is a great time to get into mining and be part of the process of change.”

Dlongolo, who has practiced in mining law for two years, says mining and mining

WOMEN IN MINING

law may seem, to some, a daunting career choice from the outside. “It looks like an intimidating industry because it can be very technical. I was fortunate to have encountered some absolutely phenomenal women who trained me and took the time to explain the procedures. I have also learnt a lot from our clients. In fact, my experience is that people in the industry are very willing to explain and help you understand.”

Traditional barriers This does not mean that the traditional barriers confronting women in mining have crumbled, Dlongolo says. “The hurdles for women working in the business or commercial sector of mining and for women working underground can be substantial. The issue of personal protective equipment specifically designed for women is still an issue, specifically for women underground. However, sexual harassment, in various forms, can be a very real problem, for both women working underground and women in the boardrooms.

“Sometimes when I go to a mining company, I do feel in the minority as a woman. At times, I feel I have to prove I know what I am talking about before I am listened to. There are at times when there are question marks about the knowledge held by women, which means the assumption is that as a woman you do not know what the industry is about.”

Well aware of this, Dlongolo says she makes it her business to be extremely well informed, not just about the legal and technical aspects of mining but also the broader political and economic context in which it operates.

Understand the burning issues “To see the change that we desire for our nation, it’s no use sitting back and watching, by not getting involved in the debates. You can’t be effective unless you are willing to understand the burning issues from all perspectives, to participate in the debates and be an active citizen,” she says.

“The best advice I could give a young woman thinking about coming into this industry is this: learn as much as you can about the industry, be results and solutions oriented, and exude confidence. I always ensure that I am well researched and know what I’m talking about and where I don’t know, I am not afraid to ask the right questions. When people see that, they will listen.”

Females at board level

S

OUTH AFRICA’S mining companies continue to rank number one in the world for female representation at board level, according to a PricewaterhouseCoopers (PwC) study. Worldwide, South Africa’s mining companies continue to have the best level of female representation at board level, followed by Canada, while Australia has the lowest percentage of women in executive management positions in the industry.

“South Africa is a leader when it comes to female representation at board level and in senior leadership roles. The complex regulatory environment in which South African mining companies operate their businesses has played an important role in driving the development and representation of women in the mining industry,” says Gerald Seegers, PwC director for human resources services, Southern Africa.

“Research shows that there is a strong correlation between having more women in management positions and on the board, with improved company performance across a number of metrics, including governance, financial, social and environment,” adds Seegers.

There are currently 23.8% South African women sitting on the boards of the top 100 listed mining companies.

There are 21.4% of South African women sitting on the boards of the top 500 mining companies.

The survey was carried out by PwC in the UK in conjunction with sponsors;Anglo American, Rio Tinto and BHP Billiton. The purpose of the study was to look into gender diversity at board level of the top global mining companies, including the contribution women make to a better performing and more sustainable business.

The report analyses the largest 100 and largest 500 mining companies (ranked by market capitalisation) that were publicly traded as at 22 July 2013 on any recognised stock exchange. Together these mining companies have a market capitalisation comprising $200 billion. The data will be used to track, measure and analyse changes to trends in female development and retention in the mining industry over the next three years.

The first report, issued in 2013, analysed a broad range of factors, including gender diversity and performance indicators. The 2014 report has expanded the breadth of the exchanges surveyed, as well as the range of factors. These include the gender and educational background of each company’s board and executive team members. In addition, each company considered in the report was evaluated on 75 different performance metrics, including governance, financial, social and environmental.

For the second year in a row, the report shows that the mining industry has fewer women on boards than any other major industry, including oil and gas. At present, between 5 to 10% of the workforce in the mining industry is female, the smallest of any major global industry. In the top 500 listed mining companies in the world, 7.2% of directors are women, with the top 100 companies having 10.3% female directors. The report also discloses that only seven CEOs in the world’s top 500 listed mining companies are women. Since last year, Cynthia Carrol has stepped down as CEO of Anglo American, and there is now only one female CEO in the top 100 listed mining companies, Kay Priestly of Turquoise Hill. “It is clear that women are not yet participating fully in the leadership of the mining industry,” adds Seegers.

According to the findings of the study, of the 106 female directors featured in the top 100 mining companies, just three of them hold more than one directorship. Out of all the 500 listed mining companies reviewed, just 14 had reached the critical mass of 30% of women on their boards, with six of these being in the top 100.

IN SID E M IN IN G 0 6 | 2014 31

4

SAFETY

Underground drilling and blasting activIXON SAYS the relationship Codes of practice ities are still usually undertaken manually between workers and superHe also points to the need for more efin deep-level gold and platinum mines, devisors – indeed, even between fective implementation of the codes of spite extensive research and development workers of different trade-unpractice that mines were meant to apply efforts up to the 1990s. ion affiliations – cannot be good after the in their various areas of operation. While After that, the re-engineering of the conflict of the past months. “There could the MHSA put various important princimining houses into smaller, leaner corpobe pressure on safety performance if there ples in place – like the right to refuse to rate entities put a stop to most of the colis not a high level of discipline, as workperform dangerous work – it was the codes laboratively funded research into mining ers will be looking to regain bonuses after that often became the mechanism for imtechnology in South Africa. months without an income.” plementing better safety practice. “This is He said that the infine up to a point, but dustry had still not there is still the need managed to de-link the for the Department incentives for higher of Mineral Resources production levels from to audit these codes the daily demands of of practice at each health and safety in mine site, and to enthe workplace. The sure they are being reform of the health applied,” says Dixon. and safety legislation “The department in mining began with does not always have the Leon Commission the capacity to tackle of Enquiry in 1994, technical issues with which was followed by mining company exthe Mine Health and perts; the pay-scales The erosion of authority structures at the workface Safety Act (MHSA) offered by governmight be bad for safety underground as and when in 1996. ment, for instance, platinum mineworkers return to work, according to Dixon, who attended are simply not suffithe commission and cient to attract the SRK Consulting (South Africa) chairman Roger Dixon. also participated as a expertise required.” mining house representative in negotiatThe Section 54 powers granted to deEven from a health point of view, manual ing the Act, says this had provided a new partmental officials – which refer to the rock drilling continues to pose hazards as and positive foundation for improved ability to close a mining operation after an silica dust is released from the drill hole safety in mining. Indeed, fatalities have accident – are also sometimes used couninto the working environment, bringing been substantially reduced on South Afriter-productively, according to Dixon. with it the threat of silicosis. can mines: in the decade up to 2012, for By reducing the working days in any “The improvement in safety perforinstance, total fatalities given month, these across all minerals more stoppages disadvanthan halved despite total tage those workers de“Underground drilling and employment increasing. pendent on bonus inblasting activities are still centives and can even usually undertaken manually heighten the risk of Labour-intensive workers taking safety underground methods in deep-level gold and short-cuts to make up “The fact remains, howplatinum mines.” for lost time. ever, that our labour-inRoger Dixon, chairman, SRK Consulting Dixon concludes that tensive underground the platinum-mining mining methods still industry needs a longer-term overall secmance since the law was changed in 1996 present regular and real dangers to mintor strategy to improve its general health does indicate progress, but we are unlikeers at the rockface,” says Dixon. “We have and safety performance. ly to see these improvements continue at made little progress in removing the This will address productivity, mechanitheir current rate if we cannot effectively worker from the location of the energy sation and profitability in a way that will mechanise operations in areas of the mine source in a mine – the stope or developnot place any of these factors in conflict where most rockbursts and falls of ground ment end – and that remains a dangerous with each other. occur,” says Dixon. place to be.”

D

STRIKE AFTERMATH

to impact safety

IN SID E M IN IN G 0 6 | 2014 33

INDUSTRY NEWS

Spotlight on SHEQ Marcus Evans is holding the WorkSafe: Total SHEQ Management conference from 25 to 26 June at the Crowne Plaza in Rosebank, Johannesburg.

V

ARIOUS KEY legislation and regulations being altered in South Africa, so many SHEQ practitioners have found themselves somewhat out of the water when it comes to compliance. This interactive and fully inclusive conference will demonstrate how to improve safety systems, and ensure that visitors are updated on the current legislative state in the health and safety environment, and how to put corrective measures in place.

Thobile Lamati, chief inspector from the Department of Labour, will be participating in the roundtable discussion ‘Strengthening Your Employees Commitment to Safety by Demonstrating a Safety Leadership Approach’. He comments that the conference will serve to share information about SHEQ at the workplace and the different approaches to improve compliance with the OSH Act. From a regulatory point of view, the conference will serve as a platform to educate and inform the SHEQ fraternity about legislative developments in South Africa.

“The level of non-compliance with the provisions of the OSH Act is very high,” warns Lamati. “This is specially so for the

so-called high-risk sectors such as mining and construction.” The Department of Labour has focused on four major initiatives over the last two years: • Improved collaboration with stakeholders to improve the health and safety of workers. It has signed an occupational health and safety accord with the socalled high-risk sectors such as mining.

• The OSH Act has been amended to align it with the Constitution. In collaboration with the Advisory Council on Occupational Health and Safety, it has developed an OHS Bill, which is to be considered by the social partners at Nedlac, before being presented to Parliament in the current financial year.

• Amendment of the Construction Regulations, with a special focus on the professional registration of construction SHEQ practitioners by SACPCMP. • Bolstering the department’s enforcement capability. This has seen the inspectorate implementing a specialisation model as part of its professionalisation, which has resulted in a reorganisation of the inspectorate in order to boost its effectiveness.

In terms of the evolution of SHEQ practitioners, Lamati says: “Hopefully they

will evolve to become more leaders than crusaders.” This is in reference Rob Sams’ definition of the Safety Crusader Model as model where people feel the need to be the subject matter expert, and the only ones with the answers, without whom safety cannot be controlled. “This is a very dangerous model,” argues Lamati, as it leads to ownership of safety by the professionals rather than by the workers themselves.

In terms of advice for SHEQ practitioners, Lamati says: “It is important to belong to professionals and to be registered, as this safeguards the integrity of the profession. We recently commenced with the registration of SHEQ practitioners in the construction industry. As a regulator, this is our first attempt at regulating the health and safety profession. In the next few years, we will be setting up a registrar that will look specifically at the registration of such practitioners.”

Kate Collier, a partner at Webber Wentzel, and also an expert in occupational health and safety, will be participating in the interactive roundtable discussion on the ‘Mine Health and Safety Bill 2013’.

Collier comments: “Occupational health and safety, as an industry, is developing steadily in this country. Aside from the many occupational risk-assessment service providers and occupational health and safety practitioners, the law as it relates to the sector has also developed.”

Collier says that advancing legislation has resulted in the clearer definition of the different role-players, while also emphasising the importance of accountability. “What has been interesting to witness, especially in the large-scale mining industry, is how employers have gone about reconciling the overall responsibility placed on them as ‘employers’ under the Mine Health and Safety Act of 1996, and the difficulty that faces such Occupational health and safety, as an industry, is developing steadily

34 INS I DE MI NI NG 0 6 | 2 0 1 4

INDUSTRY NEWS

Management is going to have to play a more proactive role Current ‘hot topics’ in the SHEQ space are the ongoing legislative developments

employers in monitoring and accounting for the conduct of the often many layers of contractors and subcontractors usually involved.”

Current ‘hot topics’ in the SHEQ space are the ongoing legislative developments, especially with regard to the 2014 Construction Regulations, in addition to the 2013 Mine Health and Safety Bill. Collier says she has been involved with submissions for the latter, and is interested to hear that people think of the Bill.

“The Construction Regulations are of particular interest because they provide a legislative platform for addressing health and safety, and these will need to be managed properly. Management is going to

have to play a more proactive role when it comes to occupational health and safety by ensuring that it develops, implements, manages and enforces health and safety standards and procedures, and that these are updated as and when incidents occur, so as to highlight any deficiencies, as this is the best way to not only avoid liability,

but also to ensure that your workforce performs optimally.”

Collier concludes: “The best advice I can give to any employer is to ensure that they comply with the law as far as is reasonably practicable, and to engage with the relevant government departments, should they encounter any challenges.”

IN SID E M IN IN G 0 6 | 2014 35

TECHNOLOGY

Collision-avoidance Becker Mining South Africa has been at the forefront of collision-avoidance systems (CAS) in the mining sector for over 15 years.

T

HE COMPANY’S systems, which are designed for surface and underground environments, have evolved progressively, based on advancements in technologies and expanding expectations of customers, regarding the functionality of these systems, says Johann Smit: chief sales officer, Becker Mining South Africa. Throughout the development of the CAS product portfolio, the company has maintained compatibility of the latest technologies, with even the very earliest releases of CAS solutions.

“This approach has ensured that users’ investment in these mine safety technologies would always be protected to the

greatest extent possible, against the effects of obsolescence, as a result of technological improvement. Inevitably, this has resulted in a series of readily available multi-technology components, used in combination with CAS systems, to suit exact requirements.

“The flexibility of Becker’s modular CAS system has proved to be a success story and the contemporary CAS solutions now offer cost-effective solutions, specifically tailored to the needs of our customers’ vehicular and personnel inter-operational environments. These systems are delivered and maintained well within allocated safety system budgets.”

Low-profile machines In many cases, low-profile machines operate in physically constrained surroundings, with

limited visibility for vehicle operators. This common scenario, coupled with the increasing volume of production traffic and inevitable proximity of personnel around these machines, creates circumstances conducive to injury, as well as life threatening and fatal accidents.

The company’s internationally patented tri-technology solution, with ‘critical’, ‘warning’, ‘caution’ and ‘safe’ zones, has been designed to leverage the maximum reliability, repeatability, redundancy and scalability to customers.

Becker’s third- and fourth-generation CAS solutions remain in full-scale production, and are fully supported through extensive pre- and after-sales programmes.

In addition to core vehicular equipment, these solutions are complemented by personnel tags, vehicle tags, infrastructure and LEFT The detection of vehicles (vehicleto-vehicle alert) and personnel (vehicle-toperson alert) is highlighted to the driver by changing the ambient lighting colour of the cabin with multicolour LED strips BELOW Vehicle-to-person alert OPPOSITE Vehicle-to-vehicle alert

CAS-400 SERIES Becker Mining South Africa’s latest patented tri-technology Collision Avoidance System (the CAS-400 series) with four proximity warning zones, has been designed to overcome the limitations of existing systems and can even bring the mine vehicle to a complete ‘stop’, should this be necessary.

36 INS I DE MI NI NG 0 6 | 2 0 1 4

TECHNOLOGY

system self-test equipment, as well connectivity solutions to Becker’s extensive underground communication product portfolio.

Latest-generation equipment The ability of the company’s latest-generation equipment to black-box record and then report possible incidents to a centralised management information system, through the Becker Mining Systems communication networks, plays an important role in pre-emptive operational planning. This ultimately contributes to the avoidance of proximity-related accidents and collisions, as well as pinch and crush incidents.

Tags installed on vehicles and personnel facilitate additional value-added functionality, such as tagging and tracking, as well as remote evacuation signalling.

The increased visibility safety officers have of daily activities in potential near-miss hot-spots, as well as the ability to issue mine wide evacuation instructions to personnel with the push of a button on surface control systems, ensures a safer working environment.

Becker’s ability to combine the most appropriate technologies in high-density packaging, such as the innovative TCT3 Tri-Tech cap lamp tag, has made the realisation of these mixed-mode detection technologies affordable to customers.

Most common underground systems The most common underground systems now integrate true triple axis (X, Y, Z) electromagnetic field detection with first-generation UHF radio signal strength detection and Becker’s highly accurate time-of-flight radar technologies.

The company has recognised, through extensive experience in real-world operational conditions, that no single technology adequately addresses the demanding functional requirements of a truly reliable collision awareness and avoidance solution. However, not all scenarios demand the use of multiple technologies. Miners can be cautioned when they are in close proximity to one or more vehicles. This may be implemented by dipping the cap lamp-light intensity, alarming an acoustic buzzer, or flashing an independent light, as a function indicating the number of vehicles in close proximity.

I N S I D E M I N I N G 0 6 | 2 0 1 4 37

1THREAD_4261_INS

Geared Motors \ Drive Electronics \ Drive Automation \ Industrial Gears \ Services

To offer the perfect gear unit you have to have the facility for it first

SEW-EURODRIVE has a state-of-the-art, efficient plant with a unique modular production concept to develop powerful industrial gear units. Why is this good news for you? Optimum logistics, highest accuracy and rapid order fulfilment, just to name a few. This is what we call Drive 360º - Seeing the big picture: From problem-solving competence to system availability, low operating costs and energy efficiency to the overall system that handles all your tasks.

SEW-EURODRIVE - Driving the world.

Tel: +27 11 248-7000 Web: www.sew.co.za

DRIVES & MOTORS

Variolution package offerings Variolution, a new innovative concept from SEW-Eurodrive, helps customers get more bang for their buck.

I

T ALSO DRAWS on the strengths that the company has gathered through repeated business in certain main industries. “Through developing the same solutions over and over, we realised a pattern. As SEW, we were able to come up with packages for various industries, which essentially makes it easier for customers to get the right products for the right applications,” comments Norman Maleka, electronics manager for SEW-Eurodrive.

Variolution is essentially ‘packaged selling’, whereby 80% of the package is standard and 20% can be customised. This provides customers with some level of customisation on top of the benefit of a standard tried-and-tested solution.

The benefits of such an offering are that the customer has to deal with less variables and suppliers during the process of setting up a new application. “SEW already has the expertise in the required areas, and the customer knows that they are getting a package of a very high igh standard, which has been applied globally,” adds Maleka.

One supplier

used in any application. The Variolution companies that might be running a lean packages available from SEW-Eurodrive operation, to be up and running quickly are suitable for use in a variety of inwith their new application. Variolution dustries. Typically the packages are not also provides customers with on-site linked to a specific industry, as they have commissioning and installation, which is multiple uses within various industries. of huge benefit, especially in companies The most common industries that these where engineering skills are scarce. packages would be used in are mining, There are ten Variolution packages, automotive, food processing, the beverwhich include conveyer line, packing and age industry and the transport and logisunpacking, and lifting, among others. tics industry.

Special modifications to meet different requirements such as energy-efficiency or hygienic design have “Customers know they also been taken into account.

On-site visits

are getting a package of a very high standard, applied globally.”

SEW-Eurodrive conducts onsite visits in order to determine a client’s needs and find a Vari- Norman Maleka, electronics manager, olution package ideally suited SEW-Eurodrive to the application. Maleka adds: “We also have clients who contact SEW-Eurodrive via phone and we can explain the application and suggest a suitable package.”

Maleka highlights that the Variolution packages are suitable for companies, both large and small as they can be

Further advantages include thatt all components come from one supplier, plier, and hence the customer is offered a one-stop solution and the accompanying cost benefit of such a deal. “We have seen een small to medium companies take up p the Variolution packages in recent months,” says Maleka.

He attributes this due to the expertise and skills offered byy SEW, which makes it easier forr IIN N SID S ID E M IN IN G 0 6 | 2014 39

DRILLING & BLASTING

BLASTING and processing

Blasting and processing are often dealt with in isolation, but have a critical impact on each other.

By Gerhard Hope

40 INS I DE MI NI NG 0 6 | 2 0 1 4

M

INING IS DEFINED simply as the process of extracting minerals from the earth for economic benefit. This, of course, involves rock breaking and therefore blasting. “In this day and age, the definition of mining has changed. It is not only about extracting minerals for economic use.

“We need to do that in an environmentally friendly manner, which encompasses the so-called ‘triple bottom line’,” says Xolani Gumede, senior mining engineer at SRK Consulting (South Africa). The purpose of blasting is to break the rock

into manageable fragments. This is the issue that people normally do not understand, which leads to ineffective blasting operations. You need to know before you start blasting what, according to your mine, are the acceptable or required fragmentation sizes that need to be produced.

“In other words, your beneficiation system should inform your blast design, which is often not the case,” says Gumede. This fragmentation requires a precisely calculated energy input. “That energy is represented by the powder factor, which is the quantity of explosive need to break a cubic metre of rock.”

DRILLING & BLASTING

ENERGY BREAKDOWN • Hauling (diesel): 2.5 kg carbon dioxide emissions/litre • Loading (diesel): 2.5 kg carbon dioxide emissions/litre • Drilling (diesel): 2.5 kg carbon dioxide emissions/litre • Primary rock breaking (explosives): 0.25 kg carbon dioxide emissions/litre • Crushing – primary, secondary and tertiary (electricity): 1.08 kg carbon dioxide emissions/litre

Carbon emissions Another critical issue is that “explosive energy goes hand-in-hand with the carbon emissions associated with the product used to break the rock.” Blasting has advanced to the point where engineers are able to quantify the amount of carbon equivalent per kilogram of explosives used. In the entire mine-to-mill value chain, this means that an effective comparison can be drawn between explosives versus electricity.

“We are able to see which between the two produce less carbon emissions. We are already focusing on the greener definition of mining, which takes into account its carbon footprint.”

“Your beneficiation system should inform your blast design, which is often not the case.”

Xolani Gumede, senior mining engineer, SRK Consulting

Four cardinal sins of blasting Gumede refers to what he terms ‘the four cardinal sins of blasting’. The first of these is the failure to break the intended rock into the required fragments, resulting in oversized material.

The second is the failure to move the broken material to the correct location in the correct shape.

“That is very important. The correct location sometimes means you have limited space. The moment you throw your blast, you lose a lot of ore,” says Gumede. This also has a material impact on the muck pile. “Do you need a high- or low-profile

muck pile? If you do not determine that correctly, you will spend more time on loading, which will affect the production cycle because the muck-pile profile does not suit the equipment at hand.”

The third ‘cardinal sin’ associated with incorrect blasting practice is disturbing or breaking the wrong object, which can result in a so-called back break. “Blasting requires a lot of precision; otherwise the end result is unstable high walls that require a lot of additional support,” says Gumede. The fourth is moving the blasted material to the wrong destination, resulting in fly-rock incidents.

Gumede says a systems approach is essential in order to optimise blasting. This is dependent on critical information such as rock tests, as different rock types have different work indexes.

“Blast design needs to be recalibrated accordingly through a trial-and-error approach,” he notes. “If more explosives are used, the associated cost rises. However, if the rock is weakened sufficiently, less electricity will be required in the beneficiation process.

“In a well-managed mine, you need to know how much energy you are using, what is the carbon equivalent, and start optimising that.”

IN SID E M IN IN G 0 6 | 2014 41

DRILLING & BLASTING

BLASTING in narrow-reef stopes As rising underground production costs weigh heavily on South African’s mining companies, leading explosives supplier BME has fine-tuned its portable emulsion pump, paving the way for safer, more economical blasting in narrow-reef stopes.

42 INS I DE MI NI NG 0 6 | 2 0 1 4

DRILLING & BLASTING

B

ME’S COMPACT AND lightweight portable pump has been some six years in development, and has recently been trialled underground by major South African mining companies in the platinum, gold and chrome sectors.

Such has been the success of these trials that BME has now geared up for full commercialisation of the product, making further improvements to render units even lighter, stronger and simpler to operate.

“Working with the mines on applying our emulsion-based technologies underground, we have continued our research and development efforts to make the BME portable pump even more cost-effective, while improving its ease of handling and robustness,” says BME research and development manager Selwyn Pearton.

Leading supplier of emulsion explosives The company is the leading supplier of emulsion explosives in South Africa, and now has operations in various African countries. While BME’s largest market is the opencast market, it has become increasingly involved in underground mining. The portable pump has been developed specifically for emulsion charging in narrow-stope mining environments.

“Most South African underground mines face a number of challenges arising from the very narrow seams of mineralisation,” says Pearton. “To reduce dilution levels, mines aim to keep stopes as narrow as possible – which places constraints on the size and weight of equipment you can use in these areas. Our portable pump addresses these constraints, allowing mines to employ the safer and more cost-effective emulsion-based blasting technology in highly confined underground spaces.”

Pearton says the refinements to the product had made it even stronger, for instance replacing plastics with metals and fitting a double-wall case. “We have also over-designed specific aspects of the system including the hoses, which are now rated to many times the operating pressure of the system. The actual working pressures are just a fraction of that, so this adds more reliability and robustness to the system.”

LEFT BME is the leading supplier of emulsion explosives in South Africa

Low level of skills at the rock face Among the challenges is a fairly low level of skills at the rock face, making simplicity of operation a key imperative for any new mining innovation. Pearton says the unit is now even easier to operate, and requires only a short period of training to bring operators up to speed. The failsafe pump control mechanism allows the volume of explosive per hole to be preset, ensuring that blasting performance and emulsion costs are carefully controlled.

At just 14 kg, the pump can be easily carried to the drilled face for charging.

The emulsion itself is contained in two separate bags, which can be filled on the surface or at a central point underground, and then sealed to avoid any contamination by dust or dirt. The bags, each weighing 25 kg for easy portability, are connected to the pump just before charging.

“The other key element of the system is the sensitiser, which renders the emulsion ready for blasting,” explains Pearton.

“This material is kept locked and controlled underground, and is introduced to the emulsion by the pumping system as the emulsion is pumped into the blasthole, ensuring high safety levels.”

Easy transportation of materials

take away the mine’s risk related to pump maintenance, and build that into our offering,” asserts Pearton.

“We then take responsibility for any basic failures of the equipment, so that the client knows up front what their operating cost will be, and does not have to untangle disputes between suppliers when there are malfunctions. We simply deal with those as part of our maintenance programme.”

The pump service cycle has been planned so that units can be replaced immediately, and any risk of missing a blast can be avoided. This involves having units on standby, as well as quick availability of on-site spares. “Being at the cutting edge of this technology is exciting for BME, and we are ploughing extensive R&D into these new concepts,” adds Pearton. “We must remember, however, that for many underground mines this is relatively unknown territory – so we feel it is important to take as much risk out of their decisions as possible.

“In particular, mines may be justifiably cautious about the pump maintenance costs; we therefore retain the responsibility for this function so that clients are better able to quantify the costs and benefits of the new technology in their specific environments.”

By sensitising the explosives only at the last stage of the process, many of the onerous transport regulations “Being at the cutting for explosives fall away, which makes the movement of material edge of this technology easier and more economical. is exciting for BME.” Pearton highlights the fact that Selwyn Pearton, research and BME, as an emulsions specialist and blasting contractor, has used development manager, BME its decades of field experience to design its portable pump to suit both its emulsion consumables and the client’s operating environment.

“Working so closely with the blasting process, we can continuously adapt our designs to clients’ specific working environment,” says Pearton. “Also, we ensure that our design aligns with the emulsions that we manufacture, so that the client never has to deal with a situation where their pump supplier and explosives supplier blame each other when blasting problems occur.”

Pumps available on rental The working model adopted by BME is to make the pumps available on a rental basis, taking overall responsibility for the functioning and, when necessary, the replacement of units. “Our strategy is to IN SID E M IN IN G 0 6 | 2014 43

DRILLING & BLASTING

A break from tradition Mario da Silva and his son, Zack, from Bel Quip Centre have come up with a brand-new application for a steel crushing machine, applying it with great success to the opencast mining sector.

A

MECHANIC BY trade, Da Silva previously worked as a product support technician in the refurbishment of earthmoving equipment, until he started a small family business, Bel Quip Centre, in 2006. The company was established as an aftermarket workshop for the refurbishment of older earthmoving machines.

His reputation for good, honest and reliable service followed him to Bel Quip Centre, which soon became recognised

Secondary blasting in the opencast mining industry is expensive and time-consuming as the top refurbishment centre for these large, older machines as well as newer and smaller models.

“Many of these large earthmoving machines are utilised in the mining sector, and it was through our exposure to these sites that we learnt more about mining than just machine refurbishment. We saw a gap in the market to expand our services – an opportunity to chase,” says Da Silva.

Secondary blasting in the opencast mining industry is expensive and time-consuming, and incurs long periods of downtime, particularly in the specialised area of platinum mining. The oversized rock needing to be reduced is left lying around, often in remote parts of the quarry, until the secondary blast has been safely scheduled.

This process often requires extra machinery to load and move the rock into place.

Secondary blasting Adverse geological conditions can contribute to large blocks needing secondary blasting, as can inappropriately designed LEFT A Fractum rock breaker

44 INS I DE MI NI NG 0 6 | 2 0 1 4

DRILLING & BLASTING

blasting operations. These factors impact upon a mine’s ability to produce the most quality rock within the prescribed minimum costings.

The Da Silvas stumbled upon a breaking machine that had been utilised in the steel industry. After much investigation and meetings with mining colleagues, they were convinced that this breaking machine would work well within the opencast mining sector, breaking the rock down to the required size, cutting operational costs and optimising uptime.

Acting on their ‘gut’ feel, they approached the mine manager at one of South Africa’s leading platinum mines, who requested a demonstration. “We invested every single cent that we had in purchasing this breaking machine from Fractum of Denmark.

We carried out the demonstration to key mine personnel, and showed how oversized rock could be crushed/broken to the required size, in less time, with less labour and with substantially less downtime.

Three minutes into the demonstration, management was convinced and we got the go-ahead – our belief in this product coupled with our straight-forward approach to business within the industry served us well,” says Da Silva.

Expanded menu “We found ourselves in a situation where we knew we could expand our menu of operations. We had already established Bel Quip Centre as the leading yellow-metal refurbishment centre for older earthmoving models. We were well on the way to expanding this operation to include not only new models, but also models new to South Africa. We were at a crossroads. Do we invest every rand that our family business had at our disposal to infiltrate the mining sector with a service we were new to? Do we take that chance? Strategically, it made sense to grow our business in an area that we were convinced would thrive, even if it was new to us,” comments Da Silva.

The Da Silvas went ahead and purchased these new machines, excited about this new opportunity that they believed made perfect business sense. “While the secondary blasting sector is not complementary to our refurbishment operations, it was not a strange environment for Bel Quip Centre to operate in. We felt our mining knowledge, coupled with our technical experience, made it a healthy alliance,” says Da Silva.

“We achieved excellent productivity and cost ratios with the new rock breaker,

highlighting the cost efficiencies that can be obtained in secondary blasting operations. Word of mouth found us needing to purchase a further two machines in 2013, with a third on order for 2014. The savings we can achieve with the Fractum breaker are substantial.

In this economic climate, where mining costs are taking strain, it would make sense therefore to explore cost saving production methods.”

Innovative thinking paid off Da Silva adds: “For a family business to find R10 million is a big step – in fact, a nerve-wracking step – but our ‘gut’ feel and innovative thinking has paid off.

Luckily our management ethics and performance enabled us to secure the funding to supplement our own personal financial investment in order to expand and explore what we feel is a most challenging, yet fruitful, endeavour.”

Should mining operations purchase the breaking machinery independently, Bel Quip Centre can be contracted to remove the final material excess, making the breaking of oversized rock and materials a seamless operation at the mining facilities.

Bel Quip Centre is also exploring the possibility of machine rental and shortterm contract work. As the mining sector responds to this alternative to secondary blasting techniques, the company believes that, for some mining operations, rental is the way forward. It alleviates the capital-cost outlay for the mine and all associated running costs such as machine maintenance. It enables Bel Quip to supply the machine to a number of concerns instead of the machine being purchased outright and remaining static on-site.

Alliance with Fractum of Denmark “We are pleased with our alliance with Fractum. Its investment in research and development ensures that newer, updated models are available to us, enabling us to offer a cost- and production-efficient solution to what is perceived as the hardest of mines in the world. It means that we can

150 t

ABOVE Mario and Zack da Silva

continuously offer the latest technology to enhance an activity – that has previously been labour- and production-intensive, as well as expensive – at a substantially lesser cost. We are lucky because our association with Fractum assists us to be successful. We are a positive example of how their technologies work – another win-win business strategy.”

In the first instance, the Da Silvas assess a customer’s requirements and propose the most suitable option: that is, rental versus purchase. Transportation of the breaker is then arranged accordingly, normally on a low-bed carrier, much the same as would normally be done for any rental or purchase of earthmoving machinery. If the rental machine is required for only a short period, and the customer would prefer to use their own operators, Bel Quip Centre will provide the necessary training to ensure that the task is completed successfully and correctly.

“We are servicing platinum mines in the North West province and Limpopo, and have expanded our service to a similar mining operation in Namibia. Based on the number of enquiries we are currently receiving, there is an increasing demand for this technology. Rental will, in our view, be the option for many mining concerns, and we are ready and geared up for that. We believe we have set the bar for Fractum globally as a result of our out-ofthe-box application thinking – it was three minutes that changed our lives.” concludes Da Silva. Bel Quip Centre is in the process of becoming BEE compliant.

The size of the oversized boulders that can be crushed efficiently by Fractum breakers, depending on the model IN SID E M IN IN G 0 6 | 2014 45

DRILLING & BLASTING

EXPLOSIVES

evolution

46 INS I DE MI NI NG 0 6 | 2 0 1 4

The evolution from the Bronze-Age fire-setting to modern-day blasting with electronics has yielded major benefits for the mining industry.

DRILLING & BLASTING

T

HESE INCLUDE THE mitigation of damage to the environment, improving safety and enhancing efficiency of the blast, and thereby also improving output and yield of the mining operations. This is according to Simon Tose, group consulting mining engineer at AEL Mining Services, who recently published a paper ‘From fire-setting to electronics – A fun look at the evolution of explosives’. Tose says the main reason for the shift from the old dynamite cartridges to on-site chemical energy, coupled with electronic blasting, is that it offers more control over the blast and the environment, making the process BELOW AEL is committed to making even greater strides in rendering blasting safer

significantly safer and improving efficiency and production.

“Looking back to the methods applied through the ages from fire-setting – where one relied on heating the rock, throwing water on it to rapidly cool and then breaking it down – to dynamite and a safety fuse, there was no real control over the blast. These haphazard methods of blasting presented risks not only to the safety of miners – with no control over the air blast, ground vibration, noise or fragmentation of the rock – but was also very damaging to the environment,” explains Tose.

Electronic blasting is used in both surface and underground mining and provides far more control over the environment. “This control is allowed because, through these methods, one is able to manipulate the timing of the blast by blasting through one hole at a time, giving control over the air blast, ground vibration, noise and, most importantly, how the rock breaks (fragmentation).”

Tose says mining is, by its nature, a very risky operation and therefore developing ways to make the process safer and more efficient has been the main driver in continuously developing explosives and improving the blasting processes.

By taking chemicals to the mine and formulating explosives in the blast hole, one also eliminates some of the hassles of transporting hazardous explosives to the mine. With chemicals, transportation is very similar to the methods applied when transporting oil and gas.

They are less volatile than the old dynamites, which were particularly hazardous during transportation.

Chemicals are only mixed into the explosive formula when on the mining site, thereby eliminating the risk of a detonation during the transportation of these explosives. Furthermore, another important consideration is that – with the electronic system and manipulation of timing – one is able to blast without undue noise, one hole at a time, minimising rock vibration, which could be detrimental

SPRAY-DRYING INNOVATION Cheryl Kelly, group technical manager of initiating systems at AEL Mining Services (AEL), recently won the prestigious ‘Innovator of the Year’ award for significant improvements to the spray-drying process and formulations at the AECI awards luncheon in May. Employed by AEL for 26 years, Kelly’s spray drying is a method of producing a dry powder from a liquid or slurry by rapidly drying with a hot gas. This is the preferred method of drying of many thermally sensitive materials such as powders used for foods like milk powder and coffee and pharmaceuticals. “This patented technique is unique to AEL in order to make free-flowing pyrotechnic,” explains Kelly.

The company’s focus over the last year was to optimise the pyrotechnic compositions and, in particular, the binder and oxidiser selections and concentration. This was aimed at significantly improving the timing and the reliability of the composition.

and hazardous, especially when blasting in a city or suburban area.

Tose says AEL is committed to the developement of making blasting safer. “One of the big innovations we are working on is the complete elimination of lead in the environment. Nitrates have a negative effect on the ground and through the reduction of these elements, we are able to reduce the impact of those chemicals on the ground.”

AEL is also looking at making the electronic system wireless in the future, which would eliminate the use of all wires and allow even more control in the environment where the blast is taking place.

“In order for South Africa to meet international safety standards, all stakeholders in the industry need to be aware of the progress that is currently being made and adopt new practices to improve their risk profile and reduce inefficiencies,” concludes Tose.

“Developing ways to make the process safer and more efficient has been the main driver.”

Simon Tose, group consulting mining engineer, AEL Mining Services

IN SID E M IN IN G 0 6 | 2014 47

PIPES, PUMPS & VALVES

Water standards in Sierra Leone

Diane Duthe, partner and principal hydrogeologist at SRK Consulting (SA), visited Sierra Leone last year, where the mining industry is aiming for worldclass water standards.

B

RINGING MINE-WATER management standards in line with global best practice is becoming a priority for mines in Sierra Leone, as the country rebuilds itself and looks to attract mining investment to boost economic opportunities.

I was in Sierra Leone recently to advise a mining client on water quality monitoring and was impressed by the commitment to raising the bar with respect to water management in mining – not just among companies, but also among government officials, academia and ordinary citizens.

There are a range of laws that need to be taken into account when working in the field of environmental and social impact assessment, but some of the mines have previously been exempt from meeting these requirements. That is now changing, and mines want to get up to speed with global best practice. The

48 INS I DE MI NI NG 0 6 | 2 0 1 4

Environment Protection Agency (EPA) is the key player in this space from a regulatory point of view, and must monitor and coordinate the implementation of the country’s environmental policy. The Mine and Minerals Act makes it a strict requirement that all mining licence holders, from small to large operations, must acquire environmental-impact licences.

One of the vital concerns of any environmental-impact study is to ensure that mining operations do not impact negatively on the supply of water in villages in the immediate vicinity.

Shallow aquifer The country’s high rainfall means that there will usually be a shallow aquifer associated with the weathered rock (saprolite) layer, and the water quality from these sources is generally very good. Rural communities in Sierra Leone are mainly dependent on these shallow

ABOVE Wide flood plains and swamp areas are perfect for rice plantations

groundwater resources as their potable water supply, accessed by village wells, that are usually hand-dug. This is because surface water is more quickly impacted by contaminants, so is less reliable as a clean source for human consumption. These shallow aquifers are vulnerable to contamination, especially from pit latrines.

Mining activities, including tailings or waste rock dumps up-gradient of community settlements, can also impact on the shallow groundwater water quality.

It is not just the human environment; as the groundwater decants into a wetland or spring, we need to be sure that it is not going to have an impact on these sensitive aquatic ecosystems.

Regular and ongoing monitoring of water quality and levels must therefore

PIPES, PUMPS & VALVES

become an integral part of all mining operations in Sierra Leone, as they move to embrace best practice in environmental protection. Water quality is an important mandate of the EPA, alongside its other key focus areas, including effluent limitations, air quality, waste, noise control and pesticide residues.

Installing monitoring boreholes in advance of mining expansions allows a baseline of data to be generated, against which future water quality can be monitored. The University of Sierra Leone is also being drawn into the project, involving chemistry students to assist with monitoring, and helping them learn practical skills alongside their university studies.

Mine and Minerals Act The Mine and Minerals Act also places obligations on mines to make social and economic contributions to the sustainability of the communities they affect, and to consult when developing a closure plan for when mining operations must cease. Here, there have been some innovative and constructive interventions.

In the context of heavy-minerals mining, which is essentially a chemically benign process, large dredge lakes are established from which the heavy minerals are extracted. These sites have been successfully converted to fishing enterprises after mining is completed, being stocked with tilapia fish, for example, to support sustainable local enterprise and food requirements.

In drier areas like Botswana, options such as this are seldom possible. The water in a pit lake in an arid environment

“Sierra Leone has the benefit of having a range of well-skilled people available.” Diane Duthe, partner and principal hydrogeologist, SRK Consulting is usually subject to high levels of evapo-concentration. High levels of evaporation lead to a concentration of impurities in a water body and it becomes very difficult to rehabilitate the water source or to put it to any alternative use.

Sierra Leone has the benefit of having a range of well-skilled people available to do the necessary environmental protection work that will ensure the sustainability of the mining sector in that country. Speaking to scientists at the university, it is clear that they are champing at the bit to put their expertise to work in these economically important spheres.

They realise that mining investment needs a good supply of local mining-related expertise, but also that the same level of skill must be applied to mitigating any negative impacts that mining could bring.

Rehabilitation programmes Communities are certainly doing their bit. In a rehabilitation programme that I witnessed, trees were being planted in large numbers for medicinal and other uses. A locally developed drip-irrigation system had been engineered for the BELOW Sunset in Freetown, the capital of Sierra Leone

young saplings, using bamboo stems grown nearby. The whole community was involved in this project, which included a range of activities such as carrying topsoil and compost – on people’s heads – to the trees. I was particularly impressed by the unity of purpose, despite the disruptive impact of civil war.

What Sierra Leone needs is the resources, the equipment and some guidance on implementing best practice. From my experience, there is no lack of motivation and commitment among those who are trained in their specific fields of expertise to implement the necessary plans.

Of course, funding is always a challenge, but in the long run it will be vital to put sufficient resources into implementing and enforcing regulations if the country’s mining sector is to prosper.

Another encouraging sign was Sierra Leone’s first mining indaba, held last year in the capital Freetown, and showing the world its intention to leverage its mineral wealth in growing the economy.

ABOUT DIANE DUTHE Diane Duthe is a partner and principal hydrogeologist at SRK Consulting in Johannesburg, specialising in hydrochemical evaluation of contaminated sites and remediation. She is also an expert in mine dewatering, risk assessment, environmental impact assessments, groundwater resource evaluation and groundwater management.

Duthe earned her BSc (Hons) Geology from University of Witwatersrand in 1984 and her MSc Hydrogeology from the Centre de Hydrogeologie Universite de Neuchatel in Switzerland in 1990. She is registered as a professional natural scientist (Pr. Sci. Nat.) in South Africa.

IN SID E M IN IN G 0 6 | 2014 49

www.polypipe.com/mining

PIPES, PUMPS & VALVES

Polypipe achieves SONCAP approval Polypipe, the UK’s leading manufacturer of plastic piping and water management systems, has achieved approved status for several of its rainwater products under the Standards Organisation of Nigeria Conformity Assessment Programme (SONCAP).

G

UARANTEEING QUALITY and suitability for the Nigerian market, SONCAP certification has been granted initially to the PolyFit and PolyPlumb product ranges, which also hold the relevant approvals under the stringent British Standards for manufacturing, including BS EN ISO 9002 (standards manufacturing quality assurance).

PolyFit, a hand-demountable push-fit plumbing system, is suitable for a wide range of applications, including hot and cold water systems. Made of flexible polybutylene pipe to cope with tricky installations and tight spaces, PolyFit products lock tight to prevent accidental release, but can be easily demounted by hand for adjustments during the fitting process, or for removal and reuse elsewhere.

The range includes pipes of varying lengths for plumbing, heating and underfloor heating applications, as well as a full range of fittings and ancillaries including valves, blank ends, stopcocks, washers and pipe cutters.

The PolyPlumb range is Polypipe’s original grey plumbing system, again featuring a one-step jointing process and suitable for heating and plumbing applications in both commercial and residential builds.

In contrast with PolyFit, PolyPlumb is demountable only by disassembly, offering protection against tampering or theft.

Both PolyFit and PolyPlumb products are covered by online product-training modules available on Polypipe’s website, alongside technical advice for application and installation. PolyFit is currently available in Nigeria from Wichtech Industries, via a distribution agreement with

African Supplies. Wichtech boasts 120 outlets throughout the country.

Polypipe is one of Europe’s largest and most innovative plastic piping systems manufacturers, and the largest in the UK, with over 20 000 product lines and 50 years of experience exporting around the globe. It has a presence in 100 countries, especially Europe and the Middle East, with a proven trackrecord of delivering an impressive portfolio of high-profile, integrated projects.

Polypipe and Wichtech representatives at the British High Commissioner’s event

POLYPIPE Polypipe has strengthened its position in the African market with the appointment of its first major distributor in Nigeria, Wichtech Industries. The company has signed a distribution agreement with African Supplies Ltd for Polypipe’s PolyFit plastic plumbing system, which is now available throughout a network of 120 Wichtech outlets across Nigeria.

IN SID E M IN IN G 0 6 | 2014 51

PIPES, PUMPS & VALVES

Dewatering for African mines In designing and implementing effective mine dewatering systems, mine operators are taking a crucial step in ensuring the longterm functionality and profitability of a mining facility. By Philip Wood, export sales manager for Polypipe

W

ITH MANY MINES producing thousands of gallons of wastewater per minute, systems capable of coping with considerable volumes of pressurised water, which may contain abrasive particles as well as chemical solutions, are essential in keeping a mine operating at optimum capacity, as well as protecting the surrounding environment from potential contamination.

ABOVE AND LEFT A Rigidrain installation at Marampa iron-ore mine in the town of Lunsar, Port Loko district, Sierra Leone

52 INS I DE MI NI NG 0 6 | 2 0 1 4

Any dewatering system will need to take into account not only the projected usage of water by extraction procedures at the mine, but also the local climate and environment. If a site is prone to frequent or seasonal flash flooding, which could cause a tailings pond to overflow, additional capacity needs to be planned in. Proximity to rivers and other water courses, either above or below ground, will also require a more sophisticated system.

Extensive field testing, to examine a site’s hydrogeology and climate and assess the possible impacts of ineffective dewatering or accidental overflow, is therefore essential and should be completed as early into the planning of a mine as possible in order to gain the relevant permits.

Welfare needs of mine personnel Consideration must also be given to the welfare needs of mine personnel – water for drinking, cooking and bathing must often be pumped in and stored on-site, so care must be taken to ensure this fresh water cannot come into contact with mine wastewater in the event of excessive rainfall or equipment failure.

Both opencast and sub-surface mining operations require effective dewatering systems, which provide more benefits than simply removing excess water from

PIPES, PUMPS & VALVES

working areas. When undertaken efficiently, mine dewatering also ensures the stability of mine walls by preventing erosion, reduces wear and corrosion on drilling equipment and other machinery, and improves workplace health and safety.

Properly controlled mine dewatering also helps protect the surrounding water table from contamination, protecting local ecosystems and maintaining clean drinking water for surrounding communities.

While pumps, valves and sensors are the most high-profile aspects of mine dewatering systems, the whole infrastructure can collapse if not properly supported by appropriate pipework. In fact, systems relying on weak pipework without the required capacity can cause pumps to burnout increasing operational and expensive downtime costs.

Water being pumped from a mine In order to cope with water being pumped from a mine – particularly where it must travel up an incline or must be removed rapidly – the ability to cope with pressurised water is a key requirement for dewatering pipework. As a major use of water in mines is in the excavation of ores through erosion and wet drilling, wastewater will inevitably contain sand, grit, rock fragments and other abrasive material which is generally not removed until the treatment phase of mine dewatering. Pumping these slurries from a mine at high pressure amplifies their abrasive properties, adding to the strain placed on pipework systems. As

Polypipe offers a number of product soluwell as the capacity to stand up to abrasive tions for water management in mining apparticles, pipework must also be resistant plications such as dewatering, storage and to chemical corrosion or softening. distribution. These include PE100 pressure For mine dewatering systems, polyethylpipes, HDPE twin-wall gravity systems ene (PE) is an ideal solution. Its resistance – Ridgidrain and RidgistormXL – for into chemicals enables it to withstand even frastructure and site drainage, along with the most aggressive acids as well as abraPolystorm cell units for water attenuation sive particles. PE pipes have significant and reuse. inherent strength and impact resistance.

They can be installed both above and below ground and can cope with temperatures in the range Specifying the correct of -40ºC to 60ºC. The extremely pipework and subsidiary smooth bore of PE pipes offers storage can optimise reduced friction – meaning less drag and turbulence when large the effectiveness of a volumes of water are transported mine dewatering system at high velocity. PE pressure pipes can be jointed using butt-welding or electro-fusion techniques to form a continuous, homogenous pipeline which affords no chance of leakage.

Specifying the correct pipework and subsidiary storage can optimise the effectiveness of a mine dewatering system, cutting down on maintenance costs for the pipework itself as well as pumping machinery. PE in particular is ideally suited to the demands of mining operations, offering inherent strength combined with the reduced weight and flexibility needed for transport to and installation in remote mining environments.

IN SID E M IN IN G 0 6 | 2014 53

PIPES, PUMPS & VALVES

Protecting pump integrity in mining Protecting the integrity of centrifugal process pumps in critical applications in mining is key to minimising downtime and ensuring the safety of workers.

By Jacques Visser, Morgan Advanced Materials

C

ENTRIFUGAL PUMPS ARE widely utilised in most types of mining, primarily for the removal of slurry, but also for other tasks such as water removal. Their effective and continued operation is key, as any interruption can result in the undesired build-up of liquids in working areas, potentially compromising both process efficiency and the safety of operatives.

However, the uniquely demanding conditions under which these pumps operate mean they can be subject to the build-up of pressure when, for example, suction or delivery valves become closed or operate incorrectly, or lines become blocked due to the presence of solids such as sand, grit or small pieces of rock.

In these instances, the rapid increase in pressure can lead to the failure of a pump and, even worse, a pump explosion with the potential for severe injury or even death to operatives working nearby.

While the cost of a specialist replacement pump may be significant, to say nothing of the cost of downtime while this critical component is sourced and installed, even these costs pale into insignifificance when compared with h the financial and reputa-tional damage resulting from m a workplace fatality.

Safety measures neglected Even this may not be the he end of the matter, with commpanies facing heavy fines and individual directors rs even subject to imprisonnment if investigations reveal eal

54 INS I DE MI NI NG 0 6 | 2 0 1 4

that safety measures required by local or international law were in any way neglected. BS 2915:1990 is the key regulation in the UK but there are many local regulations too.

The risk is illustrated by several well-documented cases, such as an incident in Virginia, USA, in 2002, when a fine-coal transfer pump, which had been left standing for two days was started without gland-service water and quickly overheated. The pump was stopped by an operator, but the gland-service water then entered the red-hot all-metal casing, rapidly creating a build-up of steam which caused the pump to explode. The operative lost his life.

To combat these kinds of risks and to help maximise pump life, a variety of technologies have been developed over the years designed to shut off operation before pressure within the pump reaches a level where it is prone to fail.

and 110 kW in duty has shown that there is frequently no relationship between the current change and the size of the pump, or the speed or duty of the motor, making this type of technology of questionable value in many applications.

An alternative is the use of pressure sensing equipment, although once again, a question arises as to the relationship between pressure at immediate delivery before and after valve closures or the occurrence of blockages.

Furthermore, any rise in pressure is only likely to be detectable at the point when the fluid starts to boil, which is by definition too close to the point at which the pump may explode. Meanwhile, any probes used with this equipment are likely to have their effectiveness hampered by the presence of chemicals and slurries, while these systems are generally considered an expensive option.

Temperature monitoring equipment

The same issue also has the potential to cause issues with temperature monitoring equipment. While usually a more reliable option than pressure sensing as the temperature increases immediately when valves are closed, this option is again expensive as probes or thermocouples not only have to be hard-wired to the breaker but are also subject to the effects of slurry build-up, again impacting on their perforCurrent detection equipment mance and ability to provide the rapid, reAmong these technologies is the use of liable data needed to trigger a shutdown. current detection equipment, the sucStrain gauges are a further option for cess of which is based ce specifi ers and system designers, but on the premise that o again are not always found to be reliable, current drops when c as fusible plugs are reliant on the same pump valves are closed. pu technology as temperature and pressure However, research on Ho sensing and so do not overcome the ismotors between 2 kW m sues associated with these technologies. Meanwhile, Centrifugal pumps pressure relief valves again add to cost while their presare widely utilised ence may compromise the in most types leak-tightness of the whole system and they may not reof mining act quickly enough to relieve

PIPES, PUMPS & VALVES

OPPOSITE The effective, contiued operation of centrifugal pumps is key ABOVE Morgan Advanced Materials offers high-specification engineered products

a rapid pressure build-up.

And while most pumps are fitted as a matter of course with safety valves, these components require regular testing and maintenance to ensure they will come into action at the desired pressure. Indeed, the issue of maintenance is a key one given that many mines operate a continuous shift pattern, meaning that downtime for routine maintenance to pumps and associated components has to be minimised.

Effectiveness, cost of technology Concerns over the effectiveness and cost of these technologies, as well as the need for a truly maintenance-free solution, led to the development of the first bursting discs or rupture discs. A rupture disc is a sacrificial part containing a domed membrane which fails instantly – within milliseconds – at a pre-determined pressure and cannot reseal itself. This is ideal in scenarios where pressure may be subject to rapid build-up and other forms of pressure relief may be unable to respond quickly enough.

Many of the early discs were made from foil; in many ways an ideal material but one which is relatively delicate and can therefore be susceptible to damage such as bending and scratching, which is most likely to occur when the disc is inserted into its holder.

In these instances, the performance of the disc may be compromised, with the most likely scenario being that it will ‘burst’ at too low a pressure, resulting in unnecessary downtime and the cost of

a replacement. This cost is by no means insignificant – around £400 per unit is typical, depending on the application – while ancillary items ,such as the specialist holder, raise purchase costs further, meaning that foil discs represent an expensive option given their relative fragility.

The issues with foil discs drove leading materials companies to seek a more cost-effective and practical solution using a more robust material which did not require a specialist holder, and which was less prone to damage during the installation process and so to premature failure resulting from accidental alterations to the disc’s shape or surface profile.

The solution came in the late 1980s in the form of the first graphite discs. These were (and still are) designed to fit between the bolts within the standard ANSI flanges found on most pumps, eliminating the need for a separate holder and easing installation. Furthermore, with graphite being a harder and tougher material, the discs can withstand a certain amount of scratching with no compromise to their burst pressure, and can operate at a broad range of temperatures (between -50ºC and 250ºC). The use of a PTFE material bonded to the disc optimises resistance to any alkalis present and ensures their presence does not impact on the disc’s service life or performance.

Flexibility, versatility of graphite The flexibility and versatility of graphite as a material enables the production of discs to very precise customer parameters

MORGAN ADVANCED MATERIALS Morgan Advanced Materials is a global materials engineering company that offers a range of high-specification engineered products with extraordinary properties. From an extensive range of advanced materials we engineer components, assemblies and systems that deliver significantly enhanced performance for our customers’ products or processes. Most are produced to very high tolerances and many are designed for use in extreme environments. Morgan Advanced Materials has a global presence with over 10 000 employees across 50 countries serving specialist markets in the energy, transport, healthcare, electronics, petrochemical and industrial sectors.

– indeed, there are very few, if any, ‘standard’ products on the market. Rather than relying on calculations using pump casing pressures, burst pressure is typically calculated by taking the working pressure and adding 75%, meaning a pump with a working pressure of 1 bar will require a disc with a burst pressure of 1.75 bar. Physical destructive testing of sample discs from individual batches before they leave the facility guarantees that the discs will operate to the agreed customer parameters.

Modern techniques The sophistication of modern manufacturing techniques even allows the production of discs which can cope with negative or vacuum pressure. For these applications, for example where the system is subject to hydraulic back pressure, discs can be manufactured with a vacuum bar inside the orifice, meaning they will still operate effectively in the presence of any vacuum ‘pull’.

Discs can be manufactured in diameters of between 0.5 and 16 inches in a variety of thicknesses for any application.

The latest development has seen the introduction of ‘centreline’ discs to negate the issue of scratch damage. The versatility and cost-effectiveness of graphite discs has seen them tested against other methods specified by leading mining companies as the preferred system for protecting pumps from excess pressure build-up.

BS 2915:1990

The key specification in the UK

IN SID E M IN IN G 0 6 | 2014 55

PIPES, PUMPS & VALVES

Improved froth pump Extensive test work initiated about 18 months ago by Weir Minerals Africa has resulted in vastly improved efficiencies of the Warman AHF froth pump.

C

OUPLED WITH A fundamental change in the design layout associated with implementing AHF pumps, such as feed tanks, orientation and footprint, these pump design improvements have resulted in enhanced, revitalised and corrected concentration froth-handling, effectively positioning Weir Minerals as the market leader in this technology.

The heavy-duty Warman AHF froth pump – while based on, and interchangeable with, the well-known Warman AH and L pumps – has been modified to handle difficult froth slurry. Key to the unique froth-pump design is a significantly larger-than-normal inlet diameter, with a unique impeller inducer blade

able to handle heavy froth and higher-viscosity dense slurries with ease.

This larger inlet, with a correspondingly larger inlet volume, allows the handling of significantly greater expanded air volumes without air binding, with less surging, therefore making it possible to install a smaller pump.

Local test work Weir Minerals Africa has conducted local test work based on findings drawn from research conducted in North America and Europe over the past seven years.

Rui Gomes, product manager: slurry pumps, Weir Minerals Africa says this research allowed his team to understand the variability that takes place at different plants, and how the AHF pump can be adjusted to respond to these irregularities.

“Being able to tap into the latest proven methods and apply them to local operations is one of the benefits of being part of a large, multinational organisation,” says Gomes.

The mining industry is

The Warman AHF pump awaiting inspection at Weir Mineral Africa’s manufacturing facility in Alrode

plagued by froth and high-viscosity problems and, in the process of recovering minerals from the ore, the slurry is often floated by utilising strong flotation agents. The hydrophobic bubbles carry the concentrate to be recovered and further processed.

This can create complications within standard slurry pumps. The typical consequence is that conventional sumps are prone to overflowing, leading to spillage and loss of valuable concentrate, as well as posing a risk to the environment. This in turn often results in the selection of overly large and inefficient pumps.

Small and efficient The Warman AHF froth pump is small and efficient. The inducer impeller and oversized inlet are very effective in assuring that froth or viscous slurries enter the impeller, allowing the pump to transport it to the next destination.

Lower power costs, reliable operation, greatly reduced surging and feed-tank overflow make this pump extremely user-friendly.

“When it comes to concentration froth, there’s no ‘copy and paste’ solution, as was the theory in the past, because individual applications vary over a broad spectrum,” Gomes concludes. “We therefore continue to collaborate with customers to conduct on-going test work that guides the application of this pump technology to suit their unique processes.”

INDEX TO ADVERTISERS Babcock Barloworld Equipment

IBC 7

Komatsu Southern Africa M&J Engineering

2 23

Becker Mining

37

Metso

Electra Mining Africa

32

Polypipe

50

SEW EURODRIVE

38

FLSmidth

56 INS I DE MI NI NG 0 6 | 2 0 1 4

OBC

Verder Pumps South Africa

53

Weir Minerals

IFC

WorleyParsons

13

4

WorkSafe: Total SHEQ Management 35

One Source

Many Solutions

FLSmidth is your One Source for crushing, grinding, classifying, thickening, clarifying, slurry handling, flotation, mine shaft systems, pyroprocessing, material handling, automation, screens, centrifuges and complementary products, engineering, metallurgical testing and modernisation services. FLSmidth offers you a complete line of equipment and services with proven reliability and enhancing performance from the leading brand names of ABON, Buffalo, CEntry, Conveyor Engineering, Dawson Metallurgical Laboratories, Decanter Machine, Dorr-Oliver, EIMCO, ESSA, FFE, Fuller-Traylor, KOCH, Knelson, Krebs, Ludowici, Maag Gear, Mayer, Meshcape, MIE, Möller, MVT, PERI, Phillips Kiln Services, Pneumapress, RAHCO, Raptor, Roymec, Shriver, Summit Valley, Technequip and WEMCO. Enjoy increased recoveries while saving time and money on your next project! Let us help you tackle your specific requirements.

For more information contact us : Tel no. +27 (0)11 247 4600 krebsafrica@flsmidth.com s www.flsmidth.com