Page 1





BLANKET GOLD MINE Africa’s lowest-cost gold producer

IVANHOE’S PLATREEF SA’s biggest mechanised mine?

GREEN GOLD Latest tech for artisanal mining

Redbore 90 deployed at Mindola in Zambia

REDPATH MINING SA ISSN 1999-8872 • R50.00 (incl. VAT) • Vol. 7 • No. 3 • March 2014

We define performance the way you do.

Uptime and Reliability Metso crushing solutions are focused on the bottom line It comes down to reaching your goals. And we’re here to help you do that – by overcoming everyday operational challenges, delivering the industry’s best technology, and doing it all with a focus on sustainability. When you partner with Metso, you can expect results. BEE Ownership Compliant – email: email:








March 2014



BLANKET GOLD MINE Africa’s lowest-cost gold producer

IVANHOE’S PLATREEF SA’s biggest mechanised mine?


Blanket coverage




R Redpath Mining SA has d deployed its Redbore 90 rraise drill at Mopani’s M Mindola project in Zambia.

Indaba issues



GREEN GOLD Latest tech for artisanal mining

Shale gas hots up globally, but is it sustainable?


12 Redbore 90 deployed at Mindola in Zambia

Latest mining news from the continent

GOLD AND PGM ISSN 1999-8872 • R50.00 (incl. VAT) • Vol. 7 • No. 3 • March 2014


Blanket gold mine


Randgold Resources


AngloGold Ashanti


Spotlight on illegal mining


UMP enters the gold sector


Pump and Abrasion Technologies at Bulyanhulu


MDM Engineering in Africa


Ivanhoe Mines’ Platreef project



Anglo on mining’s reputation


35 Aspasa on ‘green’ regulations EQUIPMENT

36 Screening efficiency EARTHMOVING

38 Barloworld launches EMSolutions 40 Babcock’s latest range 22


42 Simulation training 44 Underground loader 46 Trends in mechanisation TRANSMISSION AND GEARS


55 Mining trailers 42

56 Heavy mover IN SID E M IN IN G 0 3 | 2014


IMPOSING OURSELVES on the Southern African mining and quarrying industries

It’s not for nothing that NHL mining and quarrying dump trucks have an 80% market share in China. These vehicles are tough, powerful, reliable and easy to operate. And to cap it all they are supported and serviced countrywide by Ever Star Industries, the distributors of the renowned Powerstar range of trucks.

Highway Business Park, 103 Park Avenue North, Rooihuiskraal, Centurion • Tel + 27 12 940 1780/50


Publisher Elizabeth Shorten Editor Gerhard Hope Head of design Frédérick Danton Senior designer Hayley Mendelow Designer Kirsty Galloway Chief sub-editor Claire Nozaïc

Blanket coverage

Sub-editor Beatrix Knopjes 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 ___________________________________


No. 4 5th Avenue, Rivonia 2191 PO Box 92026, Norwood 2117 Tel: +27 (0)11 233 2600 Fax: +27 (0)11 234 7274/5 ___________________________________ Annual subscription:

South Africa: R550.00 (incl VAT & postage) African countries: US$80 Foreign: US$100 Email: 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 me on Twitter and have your say.

@mining_news pages/Mining-News


ITH GOLD mining facing a slew of problems from vacillating commodity prices to perennial labour issues, it is always a pleasure to report some good news from this industry. In this issue we speak to the CEO and president of Caledonia, Stefan Hayden, about the Canadian company’s Blanket gold mine in Zimbabwe. Blanket has emerged as one of the lowest-cost gold producers in Africa. It is also seen as a model employer in Zimbabwe and has established an effective dialogue with the government. Hayden adds that Blanket’s success has attracted an increasing number of highlyskilled expatriates back to the country. Blanket is a relatively shallow mine, with the deepest tramming level at 750 m below surface. The mine is dry, with very little water coming from rock strata. All the water which is underground is introduced for drilling purposes. This water is recycled and an excess of 200 m3 is pumped to surface daily. The ventilation system is mainly dependent on natural ventilation pressure with few booster fans which are located at strategic positions in order to enhance the system. The underground temperatures are moderate, which means there is no need for refrigeration plants that are common in deep-level gold mines in South Africa. Blanket also features a uniquely effective skip loading system, in addition to a tweaked metallurgical plant that delivered an average recovery rate in 2013 of 93.4%. Caledonia also operates a procurement and supply chain that is based in South Africa. However, it is on the labour front where Blanket truly comes to the fore as a benchmark gold mine. It employs 950 Zimbabweans, who are all highly skilled and educated. The labour force is also highly efficient and productive, producing 40 t per employee versus the South African average of about 24 t per employee, and 150 g of gold per employee versus the South African average of about 100 g of gold per employee. While the labour force in Zimbabwe is also unionised, Hayden notes that the yearly wage negotiations are well structured and remarkably conflict-free. This is largely due to the high unemployment rate in Zimbabwe. In this issue we also look at the issue of illegal gold mining in South Africa, which came

under the spotlight recently following the well-publicised plight of trapped illegal miners having to be rescued from a disused mine shaft in Johannesburg. In the wake of this tragedy, Mineral Resources Minister Susan Shabangu has called for more sustainable methods for the closure of open holes and shafts, as well as tunnels underground, to prevent illegal miners from reopening sealed access points. The Department of Mineral Resources, through the Council of Geoscience, has sealed 130 holes and shafts to date, with the remaining 51 sealed by mines operating in the area. “As more holes and open shafts are discovered, they are sealed, but we need better, more sustainable methods which will close these openings permanently,” said Minister Shabangu. It is estimated that over 6 000 illegal miners are operating in Gauteng, mostly foreign nationals lured by the prospect of easy wealth. It is also estimated that illegal mining costs the country R6 billion a year. One company targeting the artisanal mining sector in particular is UMP, which has custom designed and built a modular, portable gold concentrator plant. The OEM has already enjoyed some success in Africa and as far afield as South America. We also take a closer look at some of the largest gold-mining projects in Africa at the moment, from Randgold Resources’ Kibali in the Democratic Republic of the Congo to the mechanisation being pioneered by AngloGold Ashanti and Gold Fields. Gerhard Hope Editor

IN SID E M IN IN G 0 3 | 2014



Indaba issues Pieter Colyn, a director and joint head in the Mine and Occupational Health and Safety business area at ENSafrica, looks back at this year’s Mining Indaba.


further encourage best practice relating to HE MINING INDABA provides their employees to ensure that effective the impact that mining activities have on an excellent deal-making plathazard identification and risk assessment the health and safety of mine workers and form for the various stakeholdexercises are conducted before employees affected communities. ers in the mining industry. It can safely return to their working places The MHSA complies with international also provides a spotlight on how Africa after the cessation of such strike action. standards and is a good piece of legislacontinues to have various unique, as well As far as the positive and negative take tion, but certain of the proposed amendas attractive and excellent, investment outs of the Mining Indaba are concerned, ments may, however, be perceived as very opportunities, with a special focus on most delegates used the opportunity to onerous. There are, for instance stricter reSouth Africa. interact with representatives of other quirements relating to the training of emThis year the focus at the Mining Indarole players in the mining industry, which ployees. Previously the MHSA proba was on investment in Africa, in vided that an employer must, as terms of which companies had to It is clear that there are many far as reasonably practicable, train really commit themselves to be in challenges which confront employees to perform their work Africa for Africa. There was also an safely and without risk to health. increased focus to explore successthe mining industry, and it In terms of the new proposed ful ways to integrate the sustainis from this perspective that amendment, employers are now able social and economic developthere is a definite need for the required to provide such training ment of persons and communities in all instances and not as far as into the corporate agenda of minMining Indaba reasonably practicable. The proing companies. posed provision also provides that Criticism was, however, levelled all work-related training must be properly by certain commentators against the noproved to be very fruitful. It is important structured and ‘assessable’. table absence of community and trade unto note that delegates had to actively use ion leaders at the Mining Indaba. This may the platform and market themselves by have created a perception of the absence of ensuring the required interface with other Training requirements a collaborative approach at the Mining Inrole players in the mining industry, otherThis requirement loses sight of the fact daba. Furthermore, during the time of the wise the attendance at the Mining Indaba that very often informal on-the-job trainMining Indaba, strike action took place in may be perceived as negative, and viewed ing is best suited to the training requirethe mining industry, which created one of (as some commentators put it) as another ments. As far as penalties for criminal conthe biggest legal issues for mining compaexpensive junket, where those who attend traventions of the MHSA is concerned, it nies and trade unions to deal with during it are just in Cape Town for a paid holiday. is now proposed, in the case of an employthe relevant period. One of the highlights of the Mining Inder which is a company, that the fine must Strike action creates a number of chalaba was the official welcome by the Minisbe an amount not exceeding 10% of the lenges for mining companies, in that their ter of Mineral Resources, Susan Shabangu. company’s annual turnover for the period mining operations, which are conducted during which the company has failed to in terms of mining cycles, are severely comply with the relevant provision. Such Regulatory regime disrupted. The stoppage of operations in fines will be excessive. Shabangu also gave an assurance that working places may, for instance, cause It is clear that there are many challengthe Mineral and Petroleum Resources time-dependent deterioration of the cones which confront the mining industry, Development (MPRDA) Bill will not creditions in such working places. and it is from this perspective that there ate an uncertain regulatory regime, and is a definite need for the Mining Indaba. that the streamlined and integrated minIt provides an excellent and vibrant plating, environmental and water authoriRelationship form to address current issues relating to sation processes committed the governFurthermore, the relationship between the mining industry. It is, however, imporment to certain fixed time periods to employers and their employees are also tant to use the Mining Indaba as a starting process applications. being tested, which can potentially create point and not necessarily as a platform to She explained that the Mine Health and an environment where mine standards are attempt to conclusively deal with burning Safety Act (MHSA) is in the process of benot being adhered to. This places substanissues in the mining industry. ing amended to strengthen provisions that tial pressure on mining companies and

IN SID E M IN IN G 0 3 | 2014



Raise boring


INS I DE MI NI NG 0 3 | 2 0 1 4


record Gerhard Hope talks to Redpath Mining South Africa’s (RMSA) MD Ockert Douglas about the raise boring record being achieved by RMSA at Mopani Copper Mine’s Mindola project in Zambia.


HE MINDOLA Project represents the South African based Canadian company’s maiden raise drilling project in Africa. Lawrence Schultz, RMSA operations director, comments: “This is particularly auspicious because it is the first equipped shaft to be raise drilled to a depth of 2 000 m.” Douglas explains that the raise drilling is being carried out in four legs of about 500 m each. “Once we have done the pilot holing, we then ream the shaft to its final diameter of 6.1 m from the bottom legs up,” he says. It is envisaged that the shaft will be handed over to the client in Q3 2016. Bennie Burger, RMSA general manager of mining, says the company began mobilising on-site in Q4 2013, with work on the project commencing in early December 2013. At present the company’s Redbore 90 raise drill is busy with the pilot drilling of the first leg of the shaft, which is 485  m deep. Once the Redbore 90 completes the first leg, it will be dismantled and will be taken underground to begin drilling the next leg. “In terms of our decline and development, we are on schedule,” confirms Douglas. The Redbore 90 raise drill, which is designed and manufactured by the Redpath group, headquartered in Canada, is capable of meeting the demand for wider-diameter raises of between 4.5  m to 6  m, depending on ground conditions, and can reach depths of up to 600  m. The advantage of the Redbore 90 is its low profile height of 5.5  m. This allows

clients a cost-effective method for boring large-diameter raises underground, while minimising the costs associated with underground excavations. The Redbore 90 ensures substantial savings on operational space, which is at a premium underground, explains Johan Davel, RMSA raise drilling manager. “What is more, the machine can be easily dismantled and reassembled, ultimately ensuring safer and more efficient equipment mobilisation.” Davel adds: “The Redbore 90 was designed and built to limit direct interaction between operators and the machinery, so the whole process of installing the drill rods is fully mechanised.” Although the Redbore 90 was imported fully from Canada, Davel says that the machine is being maintained, supported and operated by South African raise drilling

TABLE 1 Redbore 90 technical specifications

Dimensions Extended height Retracted height Transport length Transport width* Transport height* Transport weight*

5.56 m 4.2 m 4.12 m 2.18 m 2.28 m 34 754.5 kg

*excluding base plates/pipe loader/erector

Thrust system Hydraulic Type cylinders Maximum pilot 667.2 kN hole force Maximum reaming 8 896.4 kN force Operating pressure 310.26 bars Rotation system 2 x 200 HP Type electric motors Pilot hole rpm 0–45 variable Pilot hole torque 48.6 Nm Reaming rpm 0–5.75 variable Reaming Torque 454.5 kNm Drill string Raise angle range 60° to vertical Pilot hole diameter 349 mm Drill pipe diameter * 327 mm Drill pipe length 1 524 mm s/s

The Redbore 90 ensures substantial savings on operational space, which is at a premium underground

OPPOSITE The Redbore 90 raise drill is capable of meeting the demand for wider diameter rises RIGHT A view of the Redbore 90 control centre

IN SID E M IN IN G 0 3 | 2014



The Redbore 90 is imported fully from Canada

specialists. In addition, RMSA Canadian raise drilling experts are working on-site at the Mindola project to assist with skills transfer to local operators. Schultz comments that ground conditions always pose a challenge on any

mining project. “We know we will encounter ground-condition challenges, but these will only be determined once you are onsite. RMSA is well-versed in mitigating these risks and reacting to these specific challenges. What is more, the remote location of the Mindola project presents logistical challenges that need to be managed closely on a daily basis.” Overall, Schultz says that Mindola is a varied project. “The project encapsulates all aspects of mining, not solely development. It cleverly integrates sinking, raise drilling, equipping, infrastructure and access provision.” Looking to the future, Douglas reveals that the company is bringing the Redbore 100 to Africa to work on a related project at Mopani copper mine. The Redbore 100

was manufactured in 2009, whereafter it was commissioned for projects in Canada and Australia. It will be used to sink a shaft at Mopani Copper Mine’s Synclinorium project, which is in close proximity to the Mindola shaft. The Synclinorium shaft is expected to extend the lifespan of the mine by 25 to 30 years, and is set to be commissioned in Q1 2017. Davel says the design approach and functionality of the Redbore 100 is similar to that of the Redbore 90. However, it boasts double the torque, enabling it to drill larger-diameter holes to greater depths. In addition to the Mindola project, globally the Redpath group is currently working on 117 projects on 77 sites in 19 countries and six continents, encompassing eight different languages.

IN THE WORDS OF MD OCKERT DOUGLAS … On Redpath (South Africa): I see RMSA as a growing African company with a huge global reputation. We have just added to our value proposition for our clients by including a raise drilling capability. We will continue to focus on adding value to our clients’ projects. At the moment we are carrying out projects that involve disciplines including sinking, development, mechanised mining and raise drilling.

… On the current mining market: I think you grow within your potential and you make sure that you leverage off market conditions. As contractors, we need to able to expand into a growth market and consolidate in the downturn. The industry is currently experiencing something of a downturn, and it is at times such as these that I believe you focus particularly on what you do well, with an emphasis on areas such as safety, quality and cost. In doing so, you position yourself in such in a way that the moment the market


INS I DE MI NI NG 0 3 | 2 0 1 4

starts to turn, whether it turns slowly or quickly, you can maximise the opportunities it will present.

… On raise drilling Raise drilling adds an exciting new dimension to our business. It allows us to significantly expand our service offering to our clients, and because it is often the frontrunner of a project, we hope to leverage our entry into this aspect of the contracting industry. We already have the technology and expertise internally and the support of our Canadian parent company as we expand into this market.

… On mechanisation: It is an interesting question. I recently presented a methodology to a client on high-speed development where you use fewer, but more highly skilled, people. I stressed to the client that the benefit did not lie in avoiding labour disruptions, but that this methodology was proven to be more safe, efficient and cost effective in operations being run by our sister companies all over

the world. Put simply, the more skilled people are, the more efficiently they operate. The more efficiently people operate, the more effective you become and the fewer people you require. The fewer people you expose to the underground environment, the lower your safety risk. Mechanisation is something we need to embrace if we want to remain globally competitive. We are part of a global company; we need to ensure that we keep up with industry trends and standards.

… On growth in Africa: Expanding the business up into Africa is definitely a strategy. We do have our South African base and it remains fundamentally important to us. That said, exciting opportunities are opening up north of the Limpopo, and we are looking to expand our presence in Africa.

… On skills development: Redpath has a great reputation. This means that there are huge expectations

in terms of delivery and product quality that is a challenge. We believe that the quality of our training determines the quality of our people. The quality of our people determines the safety of our operations and the quality of the product we deliver to our clients. It is a business imperative, and is treated as such. We have recently commissioned a training centre at our head office which uses state-of-the-art technology. Site training is done in collaboration with our clients and with particular reference to site requirements, but always meeting our local and international standards.

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


Shale gas T

hots up South Africa is one of 10 ‘hot countries’ for shale gas projects, with the MPRDA Amendment Bill aimed at augmenting the regulatory regime. By Gerhard Hope

10 INSI DE MI NI NG 0 3 | 2 0 1 4

HIS IS ONE of the outcomes of the International Guide to Shale Gas, published by Baker & McKenzie as a resource for companies looking at global shale opportunities. In addition to providing a regional examination of shale gas operations, the guide offers a unique analysis of local law and key contractual issues in the 10 hot countries for shale gas projects. Morné van der Merwe, a partner in Baker & McKenzie’s Johannesburg practice, says natural gas comprises only a small share of South Africa’s energy mix, leading to a reliance on coal for most of the country’s energy needs. “However, Energy Information Administration (EIA) estimates indicate that South Africa has 390 tcf (trillion cubic feet) of technically recoverable shale gas resources,” says Van der Merwe. “This has been good news for South Africa, given our limited amounts of conventional hydrocarbon supplies. Since South Africa imports around 70% of its crude oil needs, shale resource discoveries could help it supply its own energy demand and reindustrialise the South African economy.”


Game changer According to President Jacob Zuma, the development of shale gas exploration in the Karoo was set to be a game changer for the South African economy. Delivering his State of the Nation address, President Zuma said: “The development of petroleum, especially shale gas, will be a game changer for the Karoo region and the South African economy.” He added: “Having evaluated the risks and opportunities, the final regulations will be released soon and will be followed by the processing and granting of licences.” In October 2013, the government gazetted draft technical regulations on petroleum exploration and exploitation by means of hydraulic fracturing, or fracking. Speaking at the time, Mineral Resources Minister Susan Shabangu said that the potential of shale gas exploration and exploitation provided an opportunity for South Africa to begin exploring the production of its own fuel, and could provide huge impetus for the industrialisation of the economy.

Draft regulations She added that the draft regulations prescribed international industry practices and standards to enhance safe exploration and production of shale gas, and would ensure that fracking was conducted “in a socially and environmentally balanced manner”. Hydraulic fracturing involves the extraction of gas trapped underground by using pressurised liquid to fracture rock. Opponents of the process argue that the economic benefits of accessing previously unavailable energy sources are outweighed by the potential environmental impacts, including contamination of ground water. The environmental issues surrounding hydraulic fracturing or ‘fracking’ and the produced water associated with it have become a subject of intense debate within the US, as well as other parts of the world

According to petroleum industry estimates, 2.5 million hydraulic fracturing jobs had been performed on oil and gas wells worldwide by 2012, more than one  million of them in the US. According to recent estimates by the US Department of Energy, South Africa has the eighth-largest shale gas reserves in the world.

for the co-existence of shale gas exploitation and the Square Kilometre Array (SKA) project. “We have a responsibility as government to ensure security of energy supply for the country, and to explore energy sources that will improve the country’s energy mix, grow the economy and contribute to job creation,” argued Shabangu.


Exploration licences

Shabangu said the government was satisfied that the regulations had sufficiently addressed the recommendations contained in a report on an investigation into the social and environmental impacts of hydraulic fracturing that was conducted by a technical task team in 2012. The report had recommended measures to mitigate the environmental impact of fracking, the main recommendation being to ensure that the country’s

Shabangu expects to issue exploration licences for shale gas in the first quarter of this year. Meanwhile the Mineral and Petroleum Resources Development Act (MPRDA) Amendment Bill, passed controversially by the National Assembly on 12 March, allows the government to control a 20% stake in new mining and petroleum ventures. However, the shale gas revolution is unlikely to go global quickly. This is the view of BHP Billiton CEO Andrew Mac“We have a responsibility as Kenzie, speaking at CERAWeek 2014 government to explore energy in Houston, Texas. sources that will improve the Looking to 2030, it country’s energy mix.” is anticipated that over 70% of the Mineral Resources Minister Susan Shabangu world’s energy will still be supplied by oil, coal and gas. regulatory framework was robust enough “Cost and security of supply mean most to ensure that any negative impacts places will favour the use of local resourcwould be mitigated. es to meet their energy requirements. The An interdepartmental committee had fastest-growing Asian economies have been set up to strengthen the regulaeasier access to large coal reserves than tions, and a comprehensive international they have to cheap gas. benchmarking exercise of well-developed “The cost of generating electricity from jurisdictions that had begun shale gas exgas in Asia is more than double the cost of ploitation had been undertaken. coal. Coal will remain the region’s primary source of affordable energy and the basis Hydraulic fracturing of its energy security,” said Mackenzie. “We believe, as government, that we While renewables are likely to be a have acted in the best possible way, in rapidly growing energy source in the the interests of the South African econobid to reduce carbon emissions, “we will my and its citizens, and we will continue only be able to rely on them when largeto do so as we traverse this journey of hyscale and cost-effective energy storage draulic fracturing for the production of becomes available”. shale gas,” affirmed Shabangu. Nuclear energy, on the other hand, can Among other things, the draft reguprovide low carbon base load, but faces lations provide mechanisms for the asstrong public resistance in many counsessment of the potential environmental tries post-Fukushima, which is likely to impact of any proposed activities, for the retard its growth for some time. protection of fresh water resources and

390 trillion

cubic feet of technically recoverable shale gas resources in South Africa


of South Africa’s crude oil needs are imported

IN SID E M IN IN G 0 3 | 2014 11



from around the world

in associaƟon with BOTSWANA A Canadian think tank has put Botswana in first place in Africa in terms of attractiveness for mining and exploration. The Fraser Institute published the result in its latest 2013 Survey of Mining Companies, designed to assess the attractiveness of policies to encourage investment in mining exploration and production. Botswana scores 74.2 points on the Policy Perception Index (PPI), the comprehensive assessment of the attractiveness of mining policies, down from 78.1 points in 2012. Botswana is again the highest ranked jurisdiction in Africa, ranked 25th of 112 political jurisdictions surveyed across the world in 2013 and down from 17th of 96 in 2012. CHINA China’s Long March Capital, which partners with Citic Group Corp, is considering buying South African platinum assets after their value was depressed by strikes, managing partner Clement Kwong told Bloomberg. In March last year it partnered with Citic unit Baiyin Non-Ferrous Metal Group and the China-Africa Development Fund to complete its buy-out of Perth-based Gold One International and Sibanye Gold. DEMOCRATIC REPUBLIC OF THE CONGO Africa’s largest copper producer has told miners to

12 INS I DE MI NI NG 0 3 | 2 0 1 4

halt any project expansion requiring more power amid a shortage that will take years to resolve, according to government documents. The country is instituting an electricity-rationing programme for miners, while its state-owned power company must stop signing new contracts, Congolese Prime Minister Augustin Matata Ponyo said in a January letter to the ministers of Mines and Energy. Glencore Xstrata Mutanda and Katanga Mining projects and Freeport-McMoRan Copper & Gold’s Tenke Fungurume mine are Congo’s top copper producers. Katanga Mining is scheduled to expand production to almost 300 000 t by the end of the year. Tenke plans to add a second sulphuric acid plant by 2016.

FRANCE France plans to invest up to €400 million (R6 billion) in a new stateowned mining company called Compagnie National des Mines de France (CMF), reports The investment, which will be spread out over five to seven years, marks the establishment of the European nation’s first new state-owned industrial enterprise in 20 years. CMF will be built around the same model as Japan’s Oil, Gas and Metals National Corporation (JOGMEC), which was created a decade ago on 29 February 2004, with an annual budget of US$150 million. France’s Bureau of Geological and

Mining Research (BRGM) and the Agency for State Participation (EPA) will also be shareholders in CMF. CMF’s exploration activities will focus on specialty metals, including lithium, germanium, tungsten, antimony and rare earths inside France and around the globe, including former colonies in Africa and South America.

INDIA The Department of Trade and Industry (DTI) is to team up with Indian stateowned company Coal India to explore opportunities in the South African mining industry value chain, according to the DTI. The agreement to explore mutual prospects in South Africa’s coal sector was reached after a meeting between DTI officials and Coal India representatives on the sidelines of the African Mining Indaba in Cape Town. “Coal of India is in the business of mining and exporting low-grade thermal coal and has been mapping the South African coal mining industry, with the interest of acquiring mining concessions and information on how best to exploit coal deposits in a way that serves the best interest of all stakeholders,” the DTI said in a statement. MALAWI A truck carrying uranium oxide in Malawi toppled while negotiating a curve in the road and spilled a small quantity of uranium oxide concentrate (UOC) in

early February, Paladin Energy said in statement. The shipping contractor was part of a truck convoy that was transporting UOC from Paladin’s Kayelekera mine in northern Malawi to the Port of Walvis Bay in Namibia. The driver was not injured. The co-driver suffered minor injuries and was treated at the scene. Personnel recovered the UOC as well as contaminated soil, which was taken to Kayelekera’s tailing facility. The remaining four trucks resumed the trip to Walvis Bay without incident. The company said the country’s regulatory authorities were informed.

MOROCCO A group of Moroccan activists, living on an occupation camp 5 000 feet high in the Atlas Mountains, to oppose the most productive silver mine in Africa, are reportedly ready to negotiate a settlement. The ongoing occupation was in the spotlight again after The New York Times published an in-depth feature on Imiter, home to the poorest people in the African country. Since August 2011 they have been blocking some of the main wells supplying water for Imiter Metallurgic Company’s operation. They claim the mine, in operation since 1969, is drawing more than its fair share of water and polluting what it uses. Imiter Metallurgic is a sister group of Managem, which is indirectly controlled by a holding belonging to Morocco’s royal family.


NIGER Nuclear energy company Areva and the Niger government have again missed the deadline to reach an agreement over extraction contracts, adding to negotiations that have dragged on for two years already, reports The Guardian. Areva’s 10-year uranium mining contract expired at the end of last year. The major stumbling block is the government’s wish to increase Areva’s royalty payments to between 12% and 15%, as per a 2006 mining law, from which Areva believes it should be exempt. NORWAY Norway, which owes

much of its wealth to oil, is reconsidering its investments in the mining industry due to environmental concerns. Through its US$840 billion sovereign fund, known as the Government Pension Fund Global (GPFG), it has cut gold and coal investments and “will review the entire mining sector this year”, Reuters reported. “We are concentrating our investments on the companies that we think are continuing this activity in a more sustainable way,” said Yngva Slyngstad, the fund’s CEO.

SENEGAL French public and private institutions have pledged about US$7.8 billion

to boost the Senegalese economy, Reuters has reported. The funds will be used to boost a variety of industries, including mining. Speaking at the World Economic Forum in Switzerland last month, Senegalese President Macky Sall said he wants mining industry to drive his country’s economy and help expand it by about 7% over the next decade. Sall has also called for joint ventures between Chinese and Senegalese companies. Senegal, one of the most stable African countries according to the World Bank, is a major exporter of phosphate, but is also looking to develop its iron ore, gold and oil industries. France has a

strong interest in Africa’s natural resources, with nuclear power giant Areva obtaining 40% of its uranium from Niger.

SOUTH AFRICA Anglo American Platinum, Impala Platinum Holdings and Lonmin say they have lost R4.4 billion of revenue due to a four-week strike by about 70 000 workers. The platinum workers are demanding that monthly wages for the lowest-paid underground labourers be more than doubled to R12 500 a month. The Association of Mineworkers and Construction Union has rejected a 9% increase offer. IN SID E M IN IN G 0 3 | 2014 13


28 - 29 April 2014 Mist Gardens, Kitwe Zambia

A new leading trade expo and conference powered by Electra Mining Here’s why you should visit: • Gain knowledge about the latest in supplies, machinery and equipment • Engage with recognised leading brand names • )UHHWHFKQLFDOZRUNVKRSVRQWKHH[KLELWLRQÁRRU To pre-register visit our website Platinum sponsor:

Bronze sponsors:


Participating operator:

Official partner:

Organised by:


Blanket gold mine

Caledonia’s Blanket is the lowest-cost gold producer in Africa. Gerhard Hope speaks to CEO Stefan Hayden.

14 INS I DE MI NI NG 0 3 | 2 0 1 4



says Hayden. “From our perspective, beproblems. I think it really revolves around HE 100-YEAR-OLD Blanket in cause we are a very successful mine, we an over familiarity with the work they are Zimbabwe is one of the most pay a slight premium over the going rate. doing and that then unfortunately leads venerable and productive gold The size of the premium varies according to them taking short cuts. It was unnecmines in Africa. “It has been to grade, but our workers do tend to get essary. What we did do in response was under reasonable stewardship for quite a paid more than the basic rate. On top of we ran all our management through the long time,” Caledonia Mining's CEO and that they get a production bonus, and NOSA training course again, and they all president Stefan Hayden comments about because they also have got a 10% equity came through that with flying colours. its long history. stake in the business, admittedly with a Mining is inherently a dangerous practice. “That is the point. It has been owned by bit of vendor financing, they then also get The safety measures we take, not only unpeople who have had the capital and big some profit share.” derground but in the plant as well and on mine mentality to make sure it has been This has meant that Blanket is regarded our tailings, are there to minimise risk – developed in a big mine way, although it as a model employer in the Zimbabwean risk to people, risk to the environment,” is small. That stands out when you see mining industry and always has a line of says Hayden. the place,” says Mark Learmonth, VP work seekers at the mine gate. Hayden Blanket is a relatively shallow gold mine business  development. adds that even any management posiby South African standards. “We are minBlanket employs 950 mineworkers, all tions are at a premium, as these are espeing 750 m below surface and are just busy Zimbabwean locals. “From top to bottom, cially favoured by professionals seeking sinking to 1 000 m.” A feature of the mine they are highly skilled and well educated,” to return to Zimbabwe post-2009. “It is is its automated skip-loading system. says Hayden. This is critical for the inculcanot surprising given the way the world is Ore mined above the 750 Level passes tion of safe working practices. “What is althrough grizzlies ways a challenge in Africa and then drops into is getting people to accept the hoppers below, higher safety standards feeding an underat work than they would ground crushing sysdo in their personal lives. tem installed 765  m Your starting position is below surface. much better if they can The oversize is read and write and undercrushed from minus stand what they are doing 300 mm down to and why.” 150 mm. The fines Hayden adds that Blanand crushed ore then ket runs over a 1  000 go into an ore pass, training courses a year for which feeds one of its workforce. “Our staff two measuring flasks. turnover rate is very low. Those measuring We are able to retain skills, flasks take 6 t of ore. admittedly against a very Every 2.3 minutes, high unemployment rate “A general problem of developing 6  t of ore is hoisted in Zimbabwe, which has from 789, which is to be over 90% now. It is a medium- to long-term strategy in the loading level, to the retention of skills in Zimbabwe is the fact that policy keeps surface and automatZimbabwe that is critical on changing.” Caledonia Mining CEO Stefan Hayden ically tipped into the and that is also one of the headgear bins. biggest cost drivers.” (right) with Blanket general manager Caxton Mangezi “The reason for crushing underProductivity ground is to increase the skip factors,” says going. South Africa is getting harder and Blanket effectively “employs fewer people Hayden. He adds that this entire operation Australia is having some tough times,” to produce more gold”. Learmonth says is run by the winder driver. “Once again it says Learmonth. it produces about 50 oz per employee a impacts on our costs. Previously we were Blanket also boasts health and safety year, whereas the South African average is using 14 people to run that operation; now standards that are higher than any compaabout 40 oz to 45 oz per employee a year. we use one.” The automated skip loading rable underground gold mine in South AfHayden notes that “a lot of the other gold system was commissioned successfully in rica. It had its first fatality in four years in producers in Zimbabwe are relatively high August 2010 and has been running withAugust 2013, when a portion of the longcost, and have had to either close down or out any hiccups since. hole stope collapsed and killed a mineintroduce 30% to 35% wage cuts”. worker who did not have a safety harness The mining industry workforce in Zimbaon at the time. bwe is unionised, but yearly wage negotiaRecovery rate tions are carried out relatively peacefully, When Caledonia assumed ownership of Blanket, it also invested considerable Health and safety expertise and funding in upgrading the “We monitor things like near misses beOPPOSITE Blanket employs 950 mineworkers, mainly all Zimbabwean locals metallurgical plant, where the recovery cause they are indicative of potential IN SID E M IN IN G 0 3 | 2014 15


adds that, where possible, supplies are in point is the recent decision to no longer rate has improved from 70% at the outprocured locally, such as PPE, while minallow the royalty rate to be deductible set to 93.4% at present. “We designed ing essentials such as drill steels, cyanide for tax. If you do not pay tax, that does the agitators, we put baffles into our CIL and explosives are by necessity procured matter, but if you do, it effectively means tanks and we installed a liquid cyanide from South Africa. “We try and buy whatyour effective royalty rate has increased dosing and storage system that reduced ever we can locally, provided the cost and from 7% to 9.3%, which takes US$1 milour consumption of cyanide from 3 kg a quality are competitive.” lion (R10.87 million) off your earnings.” tonne to 770  g a tonne.” Blanket is also Additional factors the only signatory to that complicate such the Cyanide ConvenBlanket produces about 50 oz per long-term planning tion in Africa, meanemployee a year, whereas the South include changing the ing “we put less than export mechanism. 30 parts per milAfrican average is about 40 oz to 45 oz “Under the new govlion of cyanide onto per employee a year ernment, it seems to our tailings dump,” be much more open, says Hayden. and we do spend a In terms of logislot of time talking to tic challenges, Learthem. The problem month notes that is once a policy decitransfer pricing is a sion has been made sensitive issue for and announced, the Zimbabwean politically it is difgovernment. “We ficult to back track procure supplies on it. That is the here and then send it fundamental issue. to Zimbabwe, where It is important that the landed price is we continue to talk 28% to 30% cheapto the government er than what it can to ensure it is fully be procured locally. aware of the realiThis means we conties of the problems we face, before they trol the entire supply chain. We procure Power supply make the policy decisions,” says Hayden. here, consolidate the loads at our wareIn terms of power supply, Blanket pays Blanket’s main exploration activity at house and are then very efficient at geta premium rate of 13.8 c/kWh for unthe moment is on the existing mine footting the supplies through the border onto interrupted power to the Zimbabwean print at below 750 m. “That is where we the mine. electricity utility ZESA, while also havare spending most of our time and mon“As we load, we check our bills of lading 10 MW of standby diesel generators. ey. We know we have a resource; we are ing, which are then couriered up to the “When we put the gensets in, we were exjust trying to increase that resource base border for pre-clearance. All that is reperiencing up to a 41% loss of available and improve the confidence level.” quired at the border then is inspection of power, which equates to about 10 hours At the GG satellite development, Calethe contents of the truck, which is 100% a day. You cannot run an operation like donia has sunk a shaft to 120 m. “We are correct because we double-checked it that under those conditions, and neither as loaded.” can you afford the safety risks of trying Blanket itself is a mere 190 km from to run such an operation,” says Hayden. ABOVE A lot of other gold producers Beit Bridge, which means that if “we need Looking at future development of its in Zimbabwe are relatively high-cost, to get something or somebody there to satellite properties, Hayden says: “A gencompared to Blanket mend something quickly, we can do so releral problem of developing a medium- to BELOW Blanket has been developed with a atively quickly”. The turnaround for such long-term strategy in Zimbabwe is the big mine mentality in mind, even though it an emergency courier is 12 hours. Hayden fact that policy keeps on changing. A case is relatively small

16 INS I DE MI NI NG 0 3 | 2 0 1 4


carrying out development on 60, 90 and 120 m levels. We are in the process of assessing what that development looks like, because all of this has to be done in terms of what our geological resource is. “All our capex is subject to ongoing review. We are committed to grow the business; we have got to grow it in order to continue to be successful,” says Learmonth. The latest development at Blanket is the No 6 Winze project, a doublecompartment sub-vertical shaft down to just below 1 000 m. “That will allow us to access a deeper resource base,” says Learmonth. “We do not think the marginal costs of mining the deeper ore will be significantly different from mining the shallower ore.” This is due to the fact that the orebody is unlikely to require ventilation or cooling at the increased depth. “We are specifying the new shaft to handle at least 600 t/day.” In terms of costs, Blanket is the lowestcost gold producer in Africa. It has a very high fixed cost base, with something like two thirds of its costs being fixed. “We anticipate that as we continue to increase production, those fixed costs will not increase significantly.” Learmonth reiterates that “all of the current investment at Blanket is funded by current production, with money left over to pay dividends for the benefit of all shareholders. We want

to grow the business so we can boost the cash generation.” A London media report that Blanket was exposed to a significant write-down in its resource base due to the lower gold price “is just not true,” asserts Learmonth. “The affect of a lower gold price on Blanket’s resources is negligible. It is fair to say that, in light of the lower gold price environment, plus some of the recent regulatory changes in Zimbabwe, we have and continue to reconsider our capex programme, but that is only a question of taking out discretionary items. It is not cutting into the core capex to grow the business. There is no change in our fundamental growth proposition.”

Sustained capex “We are not like other gold producers who need to reduce their capex because their cash costs are so high. If they cannot use debt, they have no other sources of funding. Our cash costs are so low that the only reason we reduce capex is to maintain dividend flows, particularly for our Zimbabwean shareholders.” Blanket’s indigenisation agreement, concluded successfully in September, has been a “lived reality” for 14 months. “It has been working as designed. We gave 10% to the local community, sold 10% to a workers’ trust, 15% to a consortium of local business people, one of whom is now

Increasing production by 90% over the next three years involves extending an existing sub-vertical shaft from 750 m below ground to 1 000 m, and minor tweaks to the crushing plant

the chairman of Blanket and only 16% was sold to the government.” The transaction, valued at just over US$30 million, was vendor-financed. “The effect of indigenisation is actually to incentivise the growth of the business. Really by involving the community, the workers’ trust and the government fund, we have secured the social license to operate in Zimbabwe, and that is very important,” says Hayden. “That is why South African companies struggle. It does not matter if a prominent black South African owns a big stake in a platinum mine. If the locals do not get any benefit from the mining activities, you do not have the support of the local community. That is why in terms of Zimbabwe it really is a unique model, which a lot of people have now started to follow.” Commenting on Caledonia’s further expansion into Africa, Learmonth concludes: “We will look at things on their merits. We have got cash, and that is a rare commodity among small mining companies. We are not going to say anything more than that.” IN SID E M IN IN G 0 3 | 2014 17


The lion

of African mining “The extractive industry constantly needs to replace the raw materials it consumes. Africa, without a doubt, cannot do this on its own. It needs to attract direct fixed investment and therefore should do more to make investors feel welcome.” Bristow argues that “partnerships for prosperity” are the only way forward in Africa. “After 10 years of a bull market, the gold price turned down, dropping some 17% last year, leaving the industry floundering in its wake. Having failed to create real value when the going was good, our industry is now under real pressure, and it is responding by cancelling projects and cutting exploration budgets.” According to the Fraser Institute of Canada’s Policy Potential Index (PPI) rating, which measures the overall attractiveness of 100 mining jurisdictions for investors, Africa’s overall PPI score decreased again last year, continuing a five-year downward trend. Respondents cited growing uncertainty about the regulatory environment and the tax regime as key factors derailing confidence in the continent. “The mining code reviews of the last few years, and currently under way in a number of African countries, have no doubt aggravated the uncertainty by creating the impression that the governments of these countries not only want a bigger slice of the pie, but they want to take that before even the pie is baked. “Our experience has also shown that, despite stresses on both sides, mutually beneficial partnerships between miners and governments are still possible.” Bristow points to Randgold’s development of Tongon in the Ivory Coast. “We held onto Tongon through a long and complex political crisis and started building the mine as soon as things calmed down. Just as we were in the throes of commissioning, a disputed election produced another period of strife. “Tongon nevertheless delivered a bottom-line profit in its first quarter of operation. That is because all the way along this rocky road, we engaged with all parties, persuading the government that the mine transcended political considerations and was critical to the economy. “Taking the long view, we also retained our confidence in the Ivory Coast as a good mining country. It is highly prospective but relatively unexplored and has one of the best infrastructures in West Africa. The trust and understanding we developed with our local stakeholders has served us well. We worked with the government in its review of the country’s investor-friendly mining code. We are also involved in a public-private initiative to expand the region’s power grid.”

The success of Kibali proves it is possible to discover and develop profitable projects in Africa, says Mark Bristow. By Gerhard Hope


ESPITE THE MYRIAD problems confronting Africa in general, and mining in general, it still remains an attractive industry for investors. The answer as to why this is so is very simple, says Bristow, who is the Randgold Resources chief executive. “If you want to hunt elephants, you go to elephant country. If you want to find multimillion ounce gold deposits, Africa is a very good place indeed to look.” From the Ivory Coast to Mali and the Democratic Republic of the Congo (DRC), Randgold’s mines confirm that “despite the challenges, it is possible to discover and develop profitable mines in Africa”. Bristow comments: “One of the factors that have given us the edge over other mining companies is that we did not rush into Africa when the gold price started running. We have been there a long time – more than 17 years. “In fact, we invested in the development of the Morila mine when the gold price was at a historic low. Once Morila was commissioned, we were able to deliver gold into a rapidly rising market for all stakeholders, from the government of Mali to our shareholders, workers and the communities around our mines.” Bristow argues that Randgold’s experience in Mali demonstrates the value of long-term commitment and mutually beneficial partnerships. “It is really motivating to see how positive people still are in the mining industry. Developers of assets, investors and governments will have to work together in understanding that their interests are closely aligned.

18 INS I DE MI NI NG 0 3 | 2 0 1 4


ABOVE The latest progress in construction of the Kibali plant has seen commissioning of the sulphide circuit OPPOSITE Mark Bristow and other Randgold Resources directors inspect progress of the decline development for the underground mine

Commenting on the DRC, Bristow says there is a dual perception of this country. “On the one hand, it is portrayed as Africa’s treasure chest; on the other, as the continent’s dark heart. The fact is that since the reasonably democratic elections in 2006, followed by another, the DRC has proved quite stable politically, with a government that has been, at least until now, investor-friendly. Government support was one of the factors that allowed us to deliver Kibali, one of Africa’s largest gold mines, on time and in line with budget estimates last year.” Bristow adds: “Building a mine of this size in what is even, by Congolese standards, a remote and undeveloped area has been an enormous logistical and technical challenge. In human terms, it was even more daunting. We had to relocate 14 dwellings and more than 4 000 families from the mine site to a new town. The success of this exercise was also attributable to spirit of cooperation among all concerned.” Bristow notes that the DRC has also embarked on a review of its mining code. “Again it is going to have to be wary of the danger of killing the golden goose. Up to now the review process has been rather confused, and I hope there will be a high-level government intervention to ensure that the investor platform that the DRC has created is not now damaged or reversed.” Mali is another country that “has demonstrated the benefits of a committed partnership and what it can deliver. Randgold has been in Mali for almost 20 years, and while dealing with its share of challenges, it has grown to a major contributor to the Mali economy. “Our Loulo-Gounkoto complex there is one of the largest in Africa and has helped Mali become Africa’s third-largest gold producer. “Since we started in Mali there have been three mining codes, each of which have been respected by other governments. Each has also had a stability clause, entitling us to continue operating our projects in terms of the code under which they were conceived. We were involved in each version, and it is in the same spirit we are currently working with the tax authorities to resolve longstanding tax disputes,” says Bristow. I N S I D E M I N I N G 0 3 | 2 0 1 4 19

LATEST DEVELOPMENTS AT KIBALI Commissioning of the sulphide circuit at the Kibali gold mine in the Democratic Republic of the Congo is under way, according to Randgold Resources chief executive Mark Bristow. Kibali started production from its open pit through its oxide circuit in September 2013. Completion of the sulphide circuit will significantly advance its development as a world-class gold-mining complex. Speaking at the BMO Global Metals and Mining Conference, Bristow described Kibali as a work-in-progress. “While the plant processes ore from the open pit mine, the underground mine is still being developed and has just accessed the first underground ore,” he said. Randgold is developing and operating Kibali, in which it has a 45% stake. Bristow noted that, like all the other mines Randgold has developed, Kibali posted a bottom-line profit in its first quarter of operation, the three months to December. It is on track to meet its production guidance of 550 000 ounces for 2014.


Tropicana and Kibali shine

In September 2013, AngloGold Ashanti saw two key new assets come on-line. By Gerhard Hope


ESCRIBING THE two new mines as “key assets”, AngloGold Ashanti CEO Srinivasan Venkatakrishnan (Venkat) says both Tropicana and Kibali were commissioned ahead of schedule and on budget. The two mines are expected to product 550 000  oz to 600 000 oz in 2014, at a cash cost of under US$700/oz (R7 538/oz). “Our message is simple: to bring the business back to basics. During these tough times we have a strong team that will see AngloGold Ashanti through its challenges. Our main focus is on improving our safety and sustainability record. “We have decisively handled any risks around our balance sheet. The two new mines

that have come on-stream improve the quality of our portfolio and help strip out of some of the loss-making ounces. We are focused on the longer term,” says Venkat. The successful commissioning of Tropicana and Kibali, combined with reduced spending, resulted in the gold producer being able to report that all-in sustaining costs improved in 2103, with annual production increasing for the first time in almost a decade. Production in 2013 was 4.105  Moz, exceeding guidance, compared to 3.944 Moz in 2012, the first time yearly production increased since 2005. Additional, profitable production growth is anticipated in 2014. “We are ahead of plan on our cost savings. We are intensifying our drive to achieve additional

“Thanks to our investment made in prior years, we are starting to reverse nearly a decade of shrinking production.” S. Venkatakrishnan (Venkat), CEO of AngloGold Ashanti

20 INS I DE MI NI NG 0 3 | 2 0 1 4


efficiencies this year,” said Ron Largent, chief operating officer: international. All-in sustaining costs (AISC) for the year were US$1  174/oz, down from US$1  251/oz the previous year. By the fourth quarter, AISC had fallen sharply to US$1  015/oz as cost-saving, efficiency improvements and capital reductions started to bear fruit.

Attributable production Tropicana and Kibali delivered 106 000  oz of attributable production in the fourth quarter, at an average cash cost of US$532/oz. This provides the flexibility to further rationalise marginal production while the group continues to focus on overhead and operating costs. “Thanks to our investment made in prior years, we are starting to reverse nearly a decade of shrinking production. This gives us the flexibility to remove marginal production without compromising our base, which sets us apart in a sector that generally continues to shrink,” says Venkat. AngloGold Ashanti took decisive action to counter the sharp drop in the

STAKE IN NAVACHAB SOLD AngloGold Ashanti has signed a binding agreement to sell its entire interest in AngloGold Ashanti Namibia, a wholly owned subsidiary that owns the Navachab Gold Mine, to a wholly owned subsidiary of QKR Corporation. The agreement provides for an upfront consideration based on an enterprise value of US$110 million. The transaction is subject to Namibian and South African regulatory and third-party approvals, which are expected to be obtained over the next several months. “We are executing on our strategy to focus our efforts on assets of scale that drive value in the business,” said Charles Carter, AngloGold Ashanti’s executive vice president of strategy and business development. “We are pleased to have reached agreement to sell Navachab for fair value in the midst of a difficult market – we believe that QKR is the right group to take Navachab forward.”

Realising possibilities...

gold price in 2013, with key initiatives to enhance revenue and reduce overhead and operating costs while maintaining the long-term optionality of the business. The company has more than halved corporate costs and cut exploration spending by focusing on three core regions, while the completion of its two flagship projects are expected to result in a drop in capital investment. “We continue to refocus the entire business to give us sustainable free cash flow,” notes Venkat.

Strong improvement The gold producer saw strong quarterly improvements throughout the year across almost every metric. Earnings before interest, tax, depreciation and amortisation rose to US$544 million in the three months to 31 December, a 66% improvement on the third quarter’s US$327 million. Adjusted headline earnings normalised for various items, rose to US$164 million, from US$110 million in the third quarter. Production for the fourth quarter rose 18% to 1.229 Moz compared to the third quarter, while total cash costs improved 8% to US$748/oz. AISC were US$1  015/oz in the fourth quarter, down 12% from US$1  155/oz in the third quarter. The strong cost reduction reflects better-than-anticipated outcomes from the companies Project 500 initiative to realise US$500  million of operating cost savings between mid-2013 and the end of 2014. The fourth-quarter and annual production improvement was achieved alongside a record safety performance for the group, which saw 80% of the operations setting new safety records, and overall safety trends reaching their best levels in the company’s history. Tragically, eight fatalities were recorded during the year, compared with 18 in 2012. Further improvements are anticipated in 2014. Production is expected to rise to between 4.2 Moz and 4.5 Moz at a total cash cost of US$750/oz to US$790/oz. AISC, a measure designed using the World Gold Council framework to represent all of the cost and capital expenditure required to produce an ounce of gold, is also expected to improve further, to between US$1 025/oz and US$1 075/oz. Capital expenditure, which includes deferred stripping charges and investment in new projects, is anticipated to be between US$1.3 billion and US$1.45 billion.

...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.




I N S I D E M I N I N G 0 3 | 2 0 1 4 21

Mining & Mine Development





Spotlight on illegal mining The recent plight of trapped illegal miners having to be rescued has focused the spotlight on this shady sector. By Gerhard Hope

22 INS I DE MI NI NG 0 3 | 2 0 1 4


INERAL RESOURCES Minister Susan Shabangu has called for more sustainable methods for the closure of open holes and shafts, as well as tunnels underground, to prevent illegal miners from reopening sealed access points. This follows the rescue of 12 illegal miners by emergency services after being trapped in an abandoned gold mine shaft in Benoni, Johannesburg, in mid-February. A crane had reportedly be used to shift a large concrete slab blocking the shaft. Chinese-owned bullion producer Gold One has prospecting rights to the gold mine, but is currently not working it. Gold One spokesman Grant Stuart told Reuters that the miners had been trapped in the New Kleinfontein 6 ventilation shaft. “The illegal miners dug a tunnel right next to it to access the shaft and it collapsed behind them,� explained Grant. This followed heavy rains in the area. Those brought to the surface were

I N S I D E M IN IN G 0 3 | 2 0 1 4 23



the remaining 51 sealed NUM BLAMES SYNDICATES by mines operating in the FOR ILLEGAL MINING area. “As more holes and Well-organised and armed syndicates are behind open shafts are discovthriving illegal mining in South Africa, according ered, they are sealed, but to the National Union of Mineworkers (NUM). we need better, more susNUM general secretainable methods to close tary Frans Baleni (picthese openings permatured left) told a menently,” said Shabangu. dia briefing in JohanA number of hotspots nesburg that a major have been identified by network was running the forum, and these illegal mining in the are receiving attention. country. If left unchecked, this had the potential “Illegal mining has ecoto result in a major mining disaster. nomic implications and Baleni commented that the syndicates were long-term rehabilitation “brazen and armed”, with a wide network of reimplications, and this is cruits throughout the region. These even includwhy we must continue to ed geologists. fight it from all angles,” He urged the government to take immediate said Shabangu. action to expose the syndicates and dismantle This includes tougher their command structure. “We have been urging the Ministers of Police and Mineral Resources to charges and sentencing improve on their intelligence side.” for illegal miners who Illegal mining not only costs South Africa about have been arrested. In this R6 billion in economic losses every year, but also regard, the department leads to deaths. In March 2012, at least 20 illewill continue to work with gal miners were buried alive after a rockfall hit a the government’s security closed gold mine in Gauteng. cluster. The forum was established by the minister in 2012 to address chal“Illegal mining lenges faced by the minindustry in respect of has economic ing illegal mining. implications It is chaired by the DMR and reports to the Nationand long-term al Coordination Strategic rehabilitation Management Team on ilimplications, legal mining, led by the Directorate for Priority and this is Crimes and Investigations, why we must continue to the Hawks. fight it from all angles.” The forum is comprised of: the DMR, the Department Mineral Resources Minister Susan Shabangu of Home Affairs, the South African Police Service, the National Prosecuting Authority, mining checked by medics and then handed over companies, local government, organised to the police. There were no immediate labour and liquidators. reports of deaths or injuries. Shabangu has said that more than Shabangu appealed to members of the 6  000 illegal miners are believed to newly-formed Gauteng Illegal Mining be operating in Gauteng. Most of the Stakeholders’ Forum to strengthen efculprits are believed to be foreign naforts to deal with illegal mining in the tionals. Furthermore, it is estimated province, most specifically in the East that Illegal mining costs the country Rand and West Rand. Since Sunday 16 R6 billion annually. This is in addiFebruary, 25 illegal miners have been tion to the adverse environmental imrescued from the now defunct New pact. “We might be dealing with 6  000 Kleinfointein Gold Mine No 6 shaft. people who are underground doing The Department of Mineral Resources illegal mining. It is quite clear that it (DMR), through the Council of Geosciis huge. We feel that we have to act ence, has sealed 130 holes and shafts with speed.” since they have been identified, with

Born and bred right here - Bell is Africa’s very own global equipment supplier. With support from our strategic partners we deliver a full range of premium machines. All built tough for our harsh environment. All supported by Africa’s most comprehensive network of people dedicated to your success. Best of all, while you are creating infrastructure and jobs, so are we. Choose Bell as your equipment partner and enjoy the pride of knowing you’re not just boosting your business but helping make Africa a better place too. Tel: +27 (0)11 928 9700 E-mail:


Green gold UMP director Trevor Carolin tells Gerhard Hope about the company’s locally designed and manufactured mobile gold concentrator plant.


LLUVIAL GOLD MINING is a major global sector, from Africa to South America, and one company looking to make major inroads here is UMP of Edenvale, Johannesburg. “We have, in partnership with PET Mining, developed, designed and built a proprietary gold concentrator plant mainly geared towards alluvial gold mining,” says Carolin. “We have machines that have been operating in remote locations like Zimbabwe, Mozambique, Botswana, Zambia and even as far north as South Sudan. The machine has gone through a development phase of well over 10 years to develop it and get the technology to function.” UMP is better known as a polyurethane moulding specialist and is one of

“Our separate polyurethane division has been going since 1974, and is the oldest division of the company. We started with a little bit of light fabrication in-house about 10 years ago and are now committed to building a fully fledged engineering works and machine shop.

Niche market Diversification

“We do fly wheels for motor generator and pump sets and a variety of related components. It has worked out well and has given us a bit more flexibility and diversified the company somewhat. With the new products we will be launching, this is critical,” explains Carolin. The major attraction of the joint venture’s gold concentrator plant is that it does not use any toxic chemicals. Environmental pollution from cyanide and mercury poisoning related to gold mining is a major concern globally. “The beauty of this is that it is a clean process as it does not use any chemicals. You can capture your coarse gold and fine gold, and there is no mercury or cyanide involved in the recovery of that gold. That is a big A side view of the locally-designed and manufactured gold thing these days,” comconcentrator plant ments Carolin. “Globally, there are huge issues with mercury poisoning in gold-mining the largest urethane pipelining compaareas, from South America to Indonesia nies on the continent, with more than and Africa.” 200 km of urethane-lined pipes supplied Carolin says that UMP has traditionally to the market since 1980. However, the played a role in the mining industry as a company also offers medium to light manufacturer for other OEMs. “With proengineering services, in its bid to diprietary technology, you can take your versify further in the base metals, gold, own product into that market and control coal, diamonds, platinum and power it a bit better, as we have done with our generation sectors.

24 INS I DE MI NI NG 0 3 | 2 0 1 4

pipeline technology.” When casting components for other OEMs, UMP is competing with a plethora of moulding specialists, while the new gold concentrator plant opens up an entirely new market for the company.

Still, UMP is not operating in the same league as those OEMs who typically manufacture plants in the R100 million price range. “We are in the R3 million to R10 million range; it is kind of niche,” says Carolin. The major advantage of the new gold concentrator is that it is fully portable. “It is mounted on a trailer, so you can hitch it up to your Toyota Hilux and cruise into the middle of the bush.” The new technology is likely to have a positive impact on the alluvial gold mining sector. “I think it is positive. It certainly is of a scale that can empower communities. We are involved in South America at the moment where various communities have banded together to buy the machines. It is affordable for small communities or artisanal miners,” says Carolin. “Major mining houses are not necessarily focused on empowering communities, as their main aim is to mine as much as possible. Big mines on this scale have a typical lifespan of 10 to 15 years, while artisanal miners are often active for 30 years. Granted the returns are not nearly on the same scale, but at least we are providing artisanal miners with the technology to be able to operate effectively and benefit their communities,” says Carolin. The gold concentrator plant is fully patented and, depending on the size, retails from R850  000 to R1.3  million. “We are busy with an upgrade now that will enable it to process hard-rock gold as well,” reveals Carolin. This plant will be supplied complete with a trailer-mounted


Customers viewing field trials

crusher, mill and concentrator to allow it to be relocated effortlessly.

are also very easy to maintain. The biggest wear items are obviously the V-belt drives, while the rest is very low wear.”


African expansion

Looking at the process involved, Carolin explains: “Essentially, we are just using water to differentiate material densities. In a typical recovery process, the ore is washed and screened, and then it goes into a patented jigging plant. The fines from the jigging plant will go through a fine particle cyclone system to recover any ultra-fine gold.” The entire process is “fairly simple and self-contained. It is a batch process, with the bin being able to hold a maximum quantity of 38 kg, which is a substantial amount at the current gold price. If the operator processes a grade of 10 g/t, the plant will be paid off in less than three months, while it only requires four people to run it,” notes Carolin. The plant processes 4 tph, with artisanal miners traditionally operating at 1 tph or below. “We have a bigger version of the gold concentrator plant destined for a tailings retreatment project in South America that will be able to process 20 tph.” There are eight machines in the market at present, “so we are quite confident that any teething problems have been sorted out. When I say ‘out in the market’, the plants are running 100% in the middle of the bush. They have their own generator for power and very simple electronics. They

Africa is proving to be a particuTrevor larly lucrative market for the technology, with UMP currently having received enquiries from Sierra Leone, the Democratic Republic of the Congo, Mozambique and Tanzania. Even a country like South Sudan presents potential opportunities if the political situation stabilises, says Carolin. The gold concentrator plant is simply shipped in a container to its final destination. It has the same track width as a normal bakkie and weighs just 2 t dry weight, so it can be transported easily. It has standard 4WD-type tyres. “It has been designed to go into really difficult remote areas.” The future plan is to start building and selling gold concentrator plants from stock, says Carolin. “The bigger versions, with separate crushers and mills, will obviously be bespoke and take about six weeks to commission.”

“Artisanal gold mining is a different kind of niche market that has not been traditionally serviced.”

Other applications Potential applications include reclamation of platinum tailings or even smelter slag. “It can even go be used in the computerrecycling industry to separate metal from plastic. There you have a fairly good density, so you just need to crush to a fairly

Carolin, director at UMP fine particle size of probably minus 1 mm, and process this in the plant to separate any copper, gold or silver particles from the plastics. We actually have a foundry that is quite interested in using the plant to reclaim brass from the sand used in the casting process. At the moment though artisanal gold mining is the most profitable arena for us,” says Carolin. “We also have a small 1 tph jigging plant. This is a small portable hand-fed unit that would typically replace the traditional pantype artisanal mining. It has its own diesel motor to run it and can process 1  tph. If this is done by hand, they will be lucky to process 2 t to 3 t a day.” The environmental benefits of the gold concentrator plant extend beyond being chemical-free to the inclusion of a tailings disposal system that allows this material to be pumped back underground for backfill, or it can be bagged for easy environmentally safe disposal. Looking at the company’s continued involvement in South America, Carolin reveals that UMP is looking at setting up a company there. IN SID E M IN IN G 0 3 | 2014 25


ct r se ate e w a in th rn Af ric ut he ence ce c ll tee oof So ut l ex nssttit itu IIn ona er e s si es W at prof e of th e ing in mot l m ag az ia Pro

tiofrn a a t i an A ic Th e T

&S r e t Wa Com

p le t


er wat





of fic

at stew

an er m




DOW er Wat

fect -per

ATER TEW s WAS WWTW t a s S ving y sa LINE g E r e IP En DP nes ipeli S AN PIPE g bulk p agin Man


es are gas. A cess MEDI io nt pro tion of b es .2 at atme 9 No enera lder Associ Vol s tre g d 00 • li e R50. ice bioso for th miny of Go r pr d d e n ve 7 • Co odifi eunis Du ter a a m -885 w 90 g te 19 in d Th SN Wast • IS ly be rk an 2014 pril asing van Nieke ch/A Mar ré incree nd

Dr A


3S Med M Media’s dia’s iia’s AWARD WINNING G MAGAZINES AWARD-WINNING keep you informed

• 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


Bulyanhulu expansion project African Barrick’s Bulyanhulu expansion project is the first major Tanzanian project for Pump and Abrasion Technologies’ BattleMax range.


HE CIL EXPANSION PROJECT, which is expected to add about 40,000 oz of gold a year for the first six years of operation, remains on track for completion at the end of Q1 2014, with commissioning continuing through Q2 2014, AngloGold Ashanti reported in its 2013 financial results. There is about US$50  million (R546.2  million) of remaining capital expenditure to be incurred in 2014. In addition, there are about US$15  million of payments to be made in H1 2014 that were accrued during 2013. In addition, the revised feasibility study for the Upper East Zone will be completed shortly and presented to the board. Pump and Abrasion Technologies’ BattleMax range was rolled out to the Zambian market in November 2013. Plans put into place last year are taking effect, and with them a surety that this is the year that Pump and Abrasion makes its mark. On the clients and projects side, the company is aiming to be heavily involved with several projects for high-profile mines, with pilot testing of its pumps at a major coal producer in the Highveld commencing in March. “This is one of our biggest prospects for this year, along with the full site audit we carried out at a copper mine in Zambia,” says James Pienaar,

Pump and Abrasion’s marketing director. “We have done a full site audit for them and really assisted in solving major operational issues. This will get the sales of the pumps and spares going as we have now proved we are technically capable of assisting plants.” The compay will also be targeting additional sites in Zambia and Ghana, notes Pienaar. “We will be focusing on the Zambian side and on the Ghana side to get our African footprint established. Also in terms of our running contracts with big mining houses, we want to continue servicing these contracts and keep on growing our contract base in the market.” Apart from Bulyanhulu, Pump and Abrasion has also been called upon to supply Jindal Mining’s new development in Chirodzi, Mozambique, through Enprotec and to the Kangala Colliery in Delmas through MRD. Pienaar is optimistic about these projects and about the possibilities that lie ahead. “This year we will be targeting Ghana together with Tri-Pump and the DRC to do massive rollouts of our products in these regions.” Pump and Abrasion’s overall goals for the year is will be to expand the company’s reach in the African market and to prove that BattleMax is not a mere mid-line product being pushed into the market or a

MINE PLAN CHANGES Following the changes to the mine plan as a result of moving to a higher proportion of mechanised mining and a revised gold-price assumption, the underground reserves base at Bulyanhulu now stands at 9 Moz at a grade of 9.5 grams a tonne, with another 0.3 Moz at a grade of 1.23 grams per tonne attributable to surface tailings. For the full year 2013, gold production of 198 286 oz at Bulyanhulu was 16% lower than the prior year, mainly due to lower tonnes mined as a result of reduced equipment availability and staff shortages noted in the first half of the year. This was further impacted by a 3% decrease in grade due to paste fill delays in the first half of 2013 impacting on the availability of high-grade stopes. This has since been addressed, and paste filling has recovered to expected levels. Gold ounces sold for the year of 195 304 oz were 17% below that of the prior year mainly due to the lower production base. For the full year, copper production of 4.9 million pounds was 20% lower than the prior year’s production of 6.1 million poundsdue to the reduced throughput and grade profile.

product that is around for the short term. “We will prove that we are here for the long term through the relationships being built with clients. There will be extensive focus from our side to strengthen the Battlemax identity and to make it a known brand in the mining industry,” Pienaar explains. “With all the projects that we worked on – both recently and currently – we have proven that the technical background of the company is sound and that we are willing to help our client’s save costs on the technical side and on the supply side of the company.” Pump and Abrasion will be embarking on a massive sales and marketing drive in an effort to increase its client base to ensure that it gains the majority share of the market in South Africa and Africa. Bulyanhulu’s revised mine plan includes increased mechanised mining

IN SID E M IN IN G 0 3 | 2014 27


African projects

buoy group

MDM Engineering Group, a minerals process and project-management company focused on the mining industry, produced solid results for the six months ended September 2013. By Gerhard Hope


HIS WAS DESPITE the industry margin of 24.0% for the full year ending timed to peak during the next half year, and the lower workload since 31 March having experienced a difficult 31 March 2013. MDM recorded a profit year, according to CEO Martin before tax of US$5 million (R54.6  mil2013 following the completion of the Smith. “We have a high-qualilion) for the first half of FY2014, which Tharisa 3.6  Mtpa chrome and platinum project in FY2013. ty order book continuing through from represents a 38% decrease from the FY2013 into FY2014, with large projects comparable period’s profit before tax of The cash balance, since year end, rein execution, contributing to revenue and US$8.1 million. duced by US$2.6  million to US$32  milassociated profits.” The flagship project for lion, mainly associated with the moveMDM in FY2014 is African Barrick Gold’s ment of working capital between debtBulyanhulu and Tharisa Bulyanhulu project in Tanzania, which ors and creditors and the full year 2013 This decrease is mainly a result of cash is due for completion in the first quarter dividend payment. The MDM board flow from the Bulyanhulu project being 2014 calendar year. continues to believe that the During the first half of FY2014, company has a robust business HIGHLIGHTS: MDM saw a continuous demand model, generates strong cash • strong cash position of US$32.0 million (2012: for its services through multiple flow from operations and is US$20.1 million) with negligible gearing enquiries for study work and well-positioned, with a growing • revenue of US$53.6 million (2012: US$78.9 million) smaller brown-fields execution project pipeline during the 2014 • pre-tax profit of US$5.0 million (2012: US$8.1 million) financial year. projects, with a high success rate • basic earnings per share of US8.70 cents per share in securing these opportunities. The MDM board is declared (2012: US 15.94 cents) • interim dividend of US4.35 cents per share (2012: US an interim cash dividend of Its safety record remains a high 8.00 cents) US8.00  cents per share, which priority for MDM, which has • special dividend of US3.65 cents per share (2012: Nil) included the special dividend achieved a Lost Time Injury Freover and above the interim dividend of US3.65  cents per share payquency Rate (LTIFR) of 0.15, well • continued commitment to pay 50% of after-tax profable on 22 January 2014 to all below the industry norm of 0.25. its as a dividend to shareholders shareholders on the register on The gross profit margin for the • strong pipeline for continued growth at both feasi13 December 2013. The spefirst half was 19.9%, which was bility and project levels. cial dividend was as a result of 4.1% lower than the gross profit

28 INS I DE MI NI NG 0 3 | 2 0 1 4

“The current subdued commodities market and the weak gold price have resulted in a reduction of capital spending on new projects and rather optimising current operations”

MDM’s strong cash position and the anticipated increase in the forward project pipeline.

Namoya and Kalagadi Umtu In the first half of FY2014, MDM continued to carry out four projects that it had secured in FY2013. These were Bulyanhulu, the Namoya gold project for Banro in the Democratic Republic of the Congo, the Kalagadi Umtu manganese project for Kalahari Resources in South Africa and the DSF phosphate project for Foskor, also in South Africa. These projects are scheduled for

completion in calendar year 2014. MDM has also been successful in securing the execution of the GoGold Resources silver and gold tailings project in Parral, Mexico. Currently it has commenced with earthworks on-site, with most of the engineering and procurement under way. “This project is very important for MDM as it demonstrates the company’s capability outside of Africa,” commented Smith. MDM expects, upon completion of this project in 2014, to enter into more project negotiations in this region. MDM has also completed studies that it anticipates will result in ongoing work that may lead to early execution projects, including the Gold One Sibanye West Rand tailings retreatment gold project. Its latest success has seen it awarded the definitive feasibility study for Royal Bafokeng Platinum’s (RBPlat) 250  000  tpm Merensky upgrade at its Bafokeng Rasimone platinum mine (BRPM).

BPRM concentrator The BRPM concentrator is a joint venture platinum operation between RBPlat and Anglo American Platinum, and was initially designed to treat 200 000 tpm of Merensky ore. MDM has also been awarded a second DFS for the standalone 100 000 tpm Merensky concentrator, which is to be erected adjacent to the existing BRPM concentrator. Jeff Stevens, MDM principal study manager, says: “MDM is thrilled to be working on yet another PGM project after the successful construction and commissioning of the Tharisa expansion project in South Africa in 2012. MDM’s PGM execution and study experience will bring a large body of knowledge to the BRPM projects. We look forward to building on our strong working relationship with the stakeholders of these projects.” The outlook for the second half of FY2014 is expected to be profitable and in-line with market expectations, with some of the larger projects due for completion before year-end. I N S I D E M I N I N G 0 3 | 2 0 1 4 29



+2711 823 6842 •



is better Ivanhoe Mines’ Platreef project in the Limpopo Province is destined to become the largest platinum mine in the world. By Gerhard Hope


HE PLATREEF PROJECT is 90%-owned by Ivanhoe Mines, with the remaining 10% held by a Japanese consortium comprising Itochu Corporation; the Japan Oil, Gas and Metals National Corporation (JOGMEC); and JGC Corporation. The Japanese consortium’s stake in the project was acquired in two tranches for a total investment of US$290 million (R3.17  billion), according to Ivanhoe Mines CEO Robert Friedland. He says the Japanese buy-in into the project is critical due to Japan’s increasing demand for quality PGM, as well as the potential technology transfer. Friedland says the Platreef Project represents Ivanhoe Mines’ first foray in the South African mining industry after a 19-year presence on the continent. Latest developments include tapping into potential opportunities in Gabon. “We worked

30 INSI DE MI NI NG 0 3 | 2 0 1 4

in your country very steadily and quietly, and we found something new, hidden right under everybody’s nose, which gives you an idea of the enormous mineral potential in South Africa.” Typical reef mining in South Africa is constrained at an average of about 1  m, which means the mining process is labour-intensive. For example, there are about 2  000 mineworkers at Marikana’s working face, notes Friedland. “This is going to have to change for many reasons,” he adds, not least of which are the ongoing labour issues troubling the sector.

Unique orebody “There are a lot of unique things about this orebody, and we do not really want to divulge our secrets. It has a very high base metals endowment. There is enough nickel and copper to cover all of the costs of mining the precious metals,” says Friedland.

The Platreef Project includes a recently discovered underground deposit of thick PGE-nickel-copper mineralisation, dubbed the Flatreef Discovery. It is located in the Northern Limb of the Bushveld Complex, about 280 km north-east of Johannesburg. This mineralised sequence is traced more than 30 km along strike. The project hosts the southern sector of the Platreef on three contiguous properties, namely Turfspruit, Macalacaskop and Rietfontein. The northernmost property, Turfspruit, is contiguous with, and along strike from, Anglo Platinum’s Mogalakwena group of properties and mining operations.

Mineral resource The Flatreef mineral resource, with a strike length of 6 km, lies mainly within a flat to gently dipping portion of the Platreef mineralised belt at relatively shallow depths of about 700 m to 1 100  m below surface. The deposit is characterised by its very large vertical thickness of high-grade mineralisation and a platinum-to-palladium ratio of about 1:1, which is significantly higher than other PGMs discoveries on the Northern Limb of the Bushveld. The grade shells used to constrain mineralisation in the Flatreef indicated resource area have average true thickness of about 24  m at a 2  g/t 3PE (platinum-palladium-gold) cut-off grade. As of March 2013, Flatreef’s NI 43-101 compliant indicated mineral resources total 214 Mt grading 4.1 g/t platinum, palladium, gold and rhodium (4PE), 0.34% nickel and 0.17% copper at a 2.0 g/t 4PE cut-off grade, containing an estimated 28.5  Moz of platinum, palladium, gold and rhodium, 1.61 billion pounds of nickel and 794 million pounds of copper. Beyond the current mineral resources, the Flatreef mineralisation is open to expansion to the south and west. Various OPPOSITE Exploration drilling at the Platreef project BELOW Platreef is Ivanhoe’s first foray into the South African mining industry


FIGURE 1 Platreef is a mineralised sequence traced ±30 km along the strike

exploration targets have been identified. Target 1 is based on results from three step-out holes released on 12 November 2012. It is estimated to contain up to an additional 31 to 62 Mt grading 3.36 to 5.03 g/t 4PE, 0.26% to 0.38% nickel and 0.13% to 0.19% copper over an area of 2.5 km2.

Target 2 Target 2 surrounds the declared mineral resources and contains an estimated additional 50 to 220 Mt grading 2.9 to 4.1  g/t 4PE, 0.24% to 0.32% nickel and 0.12% to 0.16% copper over an area of 7.6  km2. The deposit is open for expansion beyond Targets 1 and 2 over an area of approximately 37.5 km2. These exploration targets are conceptual in nature, notes Ivanhoe Mines, and there has not been sufficient exploration to define them as mineral resources. It is uncertain whether further exploration will result in these targets being delineated as mineral resources, it adds. In October 2013, an unprecedented 90 m intersection of 4.51 g/t 4PE plus 0.37% nickel and 0.20% copper at Flatreef was announced. The combined grade and thickness of the PGMs and base metals mineralisation in this hole far exceeds those previously encountered at Platreef.

R818 million Shaft #1 Shaft #1, including some initial lateral underground development work, is expected to cost US$80 million, which is fully funded from the about US$180 million in dedicated funds remaining in Ivanhoe Mines’ treasury from the US$280 million received in 2011 for the sale of an 8% interest in the Platreef Project to the Japanese consortium. In June 2013, Ivanhoe Mines filed a Mining Right Application (MRA) with the Department of Mineral Resources. In conjunction with the MRA, and in compliance with South African ownership requirements under the Mining Charter, Ivanhoe Mines also announced that the Platreef ownership structure will be modified to

include a BBBEE partner that represents local communities, women, children and employees.

BEE partner “We have included a very broad-based BEE partner that represents local communities, women, children and our workers, which will own 26% of the asset and leave Ivanhoe Mines with 64%,” says Friedland. He comments that this “unprecedented” transaction will benefit over 300 000 people in 17 communities and is anticipated to set a new benchmark for empowerment in the South African mining industry. In conjunction with the Japanese consortium, Ivanhoe Mines is working on a scoping study based on a mining

operation of up to 12 Mtpa with multiple shafts. The study is expected to be completed early this year. DRA Mineral Projects, in consultation with Stantec, SRK, Geotail, Golder Associates and Digby Wells, is continuing with the pre-feasibility  study. “When we are mining, it is going to be highly mechanised underground mining. Our mine will have operators in air conditioned equipment, zero fatalities and the workers are going to be highly trained and paid accordingly. There are going to be well paid jobs underground. It is going to be quite a transformation for the South African mining industry,” says Friedland.

Expansion plan

He adds: “We carry twice as much metal as any competitive discovery and 15 times the industry “It is going to be highlyaverage. It will be at a minmechanised underground imum producing 500 000 oz a year of PGM, and we actumining. It is going to be quite have plans to expand it a transformation for the South ally more than a million ounces African mining industry.” of PGM a year. This should become the largest platiRobert Friedland, CEO of Ivanhoe Mines num mine in the world. So it is a completely clean sheet of paper; the orebody has broad shoulders.” Looking at Africa as a whole, Friedland says it is the world’s fastest-growing continent. “I do not have the words to tell you how bullish I am about Africa. This is the beginning of Africa’s break-out decade. Seven of the fastest-growing countries in the world for the next four years are located in Africa.” I N SID E M IN IN G 0 3 | 2014 31


Mining’s poor Anglo American executive director Khanyisile Kweyama comments on the reasons for mining’s poor reputation, and reevaluates both its economic and social impact.


NE OF THE WORLD’S bestkept secrets is that, while our sector disturbs less than 1% of the earth’s surface, we contribute towards more than 40% of its economic activity. To say this is an impressive or remarkable feat is an understatement, especially when you consider that minerals and metals are key to so many of the services and so much of the infrastructure that is used by contemporary society. So whether we realise it or not, mining is essential and links to every aspect of our daily lives. Given our contribution, why is it that so many do not trust our industry; we continually feel under siege because the positive and essential contribution that we bring is not fully recognised. I want to address this issue: of mining’s poor reputation. We have to do better… far better, in eliminating the things we do that damage our reputation. But we also need to do far better at ensuring all our stakeholders – and society as a whole – realise the relevance of what we do and the positive contribution we make. For centuries, mining has been indispensable to our world. And that has never been more so than in the current era, where rapid economic growth in China, India and Africa, which together account for more than half the world’s population, is increasing demand for infrastructure, energy, and more and better quality consumer goods, food and housing.

environment – such as the role of PGMs in producing auto-catalysts to limit carbon emissions from the growing number of motor vehicles, particularly in the developing world, and in fuel cells. The work we do is an indispensable part of the world economy from another angle too. It is estimated that mining directly represents around 11% of the world’s economic activity. Payments to service and support industries account for another 10.5%. If we then count the contribution our products make to the productive capacity of other industries – including fertilisers for agriculture, fuel for energy and transportation, carbon and iron for steel and manufacturing and other products for construction – we find that mining is at the root of more than 40% of the world’s economy. It is wrong, too, to describe our industry as merely an ‘extractives’ industry. Yes, our business is extracting minerals, but it is also about so much more. We provide jobs; we build all manner of physical and social infrastructure – roads, railways, harbours and power, and also health and education. And we, or our partners and customers, where it makes financial sense, add value to the minerals we mine in the countries we mine – beneficiation, as we call it. In some countries, our work has kick-started economic development, making a significant – even dominant – contribution to the fiscus and to foreignexchange earnings.

Essential development The materials that the mining sector produces are essential for the world’s ongoing development, including the minerals necessary to preserve the world’s

32 INS I DE MI NI NG 0 3 | 2 0 1 4



of mining revenues are spent on research and development.


reputation We operate according to stringent environmental and social laws, supplemented, in the case of most of the larger companies, by our own progressive policies. We know that we have no right to do harm to our stakeholders. And we know that they are entitled to benefit from our success.

Attractive returns As we say at Anglo American: Shareholders own the business… and are entitled to attractive returns reflecting the risks they take in funding the business; employees are the business… and must be treated with care and respect and compensated fairly for their work – and that goes for contractors too, who are entitled to the same standards as permanent employees, especially when it comes to safety. Our other stakeholders – communities, governments, suppliers and the like – are partners in the business… they are fundamental to sustainability and are entitled to fair compensation for their contribution to business success. And yet mining has a poor reputation. For many people, it means environmental degradation and/or plunderer of the resources of defenceless, poor countries. The industry is often accused of extracting resources, sending the minerals elsewhere for processing – and further profits – and leaving little behind other than polluted water, dust, worn-out infrastructure, a hole in the ground and an unemployed – and often unemployable – community of former employees. There are various sources of our “reputational degradation”. EIGHT MAJOR CHALLENGES FACING In the first place, we need to acMINING IN AFRICA knowledge that mining has left • greater depths and more remote locations many unwelcome environmen• declining ore grades and waning ore deposits tal and health legacies for many • declining productivity and skills gaps communities and employees – • operating models years behind other industries admittedly, in the main, from • rapidly rising costs of energy, water, fuel and machinery the years when regulation was • more rigorous permitting/licensing requirements less rigorous and when we all for new projects knew far less than we do today. • rising taxes/royalties as governments everywhere In addition, if we are honest seek a bigger share of the mining pie with ourselves, there are min• our ability to meet long-term demand needing ing companies out there that to be rebalanced against returns to shareholders. still operate with less care than

they should. We also need to acknowledge that, even for those of us that do operate with the best of intentions, we don’t always get it right.

Engage honestly We may not always feel comfortable acknowledging these things. It is difficult for me to be saying it here today. But we need to engage honestly and openly if we are to be credible in the eyes of our critics and society at large. We need to be seen as being credible if we are to be an effective part of the dialogue that shapes the industry’s reputation. We need that credibility if we are to be believed when we tell the other aspects of the story, such as the developmental role of mining. When we talk about the centrality of mining to continued human progress. When we talk about its positive impact on society. And when we try to convince our critics of the seriousness with which most of us take our social and environmental responsibilities, both to do no harm and to contribute to good. We have a positive story. We need this story to be told. And not only by us. Crucially, we need independent thinkers outside the industry to be telling the story. We also need to work towards a situation where even our adversaries, and those who have set themselves up as watchdogs over our industry, begin to moderate their negative critiques with some balanced acknowledgement of the positives. If we don’t do our utmost to achieve this, we are failing in our duty to earn the reputation we deserve. A tarnished reputation affects regulatory and tax regimes, our ability to develop new mines and our ability to attract the very best talent. It also affects, directly and indirectly, the ability of mining companies to attract capital and investment. Wholesale change is essential: in how we operate our mines day to day, how we think about ourselves and our role in society, how we manage our reputation in the battle for ‘hearts and minds’ and how we build shared growth with and for our myriad of stakeholders. IN SID E M IN IN G 0 3 | 2014 33


How green is your quarry? Carefully planned and well-managed aggregate quarries should leave little negative impact on the environment. By Nico Pienaar, director of Aspasa


ITH VAST KNOWLEDGE built up over centuries of quarrying, the quarrying industry has exhaustive references and frameworks within which to operate and minimise the negative effects on the environment. Strict legislation also places a heavy onus on operators to comply with all requirements – or face the wrath of the law. All too often, however, even environmentally conscientious companies fall foul of these guidelines and requirements, mostly due to the sheer administrative intensity of managing environmental systems. The Aggregate and Sand Producers Association of Southern Africa (Aspasa) has taken proactive steps to help member quarries to more easily comply with requirements through the publication of easy-to-use environmental management guidelines. Environmental Management of Quarries: Development, Operation and Rehabilitation Guidelines for Southern African quarries assists in the management of the environment surrounding quarries. It serves as either a supplement to member’s own environmental procedures and programmes, or to assist in the fulfilment of site-specific legal requirements as set out in the

approved Environmental Management Plan (EMP). The application of the guidelines to all phases of the quarry (or sand mine) will improve the environmental performance of the operation and reduce the associated risks of non-compliance with some legal requirements, as well as reduce the overall cost of environmental management and rehabilitation and the total costs of the operation. Aspasa has made it easier for our quarries to be environmentally responsible and comply with legal requirements, as well as our own strict membership requirements. We have also worked closely with the association’s own environmental programme auditor, Alan Cluett, to ensure that the guidelines are practical to implement and are in line with current and future statutory requirements. It is a misconception that environmental management costs money. In fact, the opposite is true. Legal environmental requirements coupled with the adoption and implementation of sound management practices to all aspects and levels of management ensure the maximum profits over the life of the mine. Since introducing compulsory environmental audits as part of its membership criteria nearly seven years ago, Aspasa is confident that members are ready to move beyond Guidelines exist for each mere compliance issues to the phase of the operation from next level of management. construction, operational Major environmental issues on participating quarries have to decommissioning and either been addressed or are bepost-closure ing carefully managed to avoid

ASPASA HAS FORMULATED GUIDELINES FOR THE FOLLOWING AREAS: • obtaining mining permits and mining licenses • requirements for the issue of a mining permit or mining license • site planning and development • general site issues • access and transport • aesthetics • preservation of vegetation • drainage and erosion control • dust, noise, light management • oil storage and separation • waste handling • site excavation • rehabilitation – concurrent and closure • post-closure maintenance.

unnecessary damage to the environment. During the same time, companies that were unwilling to change their ways have been pressurised and, as a result, only environmentally responsible companies hold current membership of the association. Having reached such a high level of compliance, we are now able to introduce a new system of audits that builds upon our previous success and expands the programme to address the finer details of environmental management. Our audits will become more thorough and the kind of feedback we give to quarries will allow management to take decisive action and address individual points on a one-onone basis. Contact Aspasa at +27 (0)11 791 3327, Fax 086 647 8034, email:, IN SID E M IN IN G 0 3 | 2014 35


Screening efficiency While the actual screening media represents about 2% of the total capital cost of a mining solution, it plays a critical role in optimising beneficiation.


HE EFFICIENCY of the screen is totally dependent on the screening media and how it performs in terms of the feed envelopes that render downstream beneficiation processes optimally and efficiently. “The real spend comes into play on the opex side where replacement and maintenance of screening media and the support sub-frame surfaces constitute the major operational costs,” argues Rhodes Nelson, newly appointed MD of Multotec Manufacturing. “Allied to this is that the deteriorating quality of today’s orebodies requires us to optimise screening media performance on a continual basis. While screens are originally specified for a certain grade of ore, as the grade changes over time and invariably deteriorates so the screen performance must be adjusted and improved. “In a sense, the interaction of a screening media supplier with the customer is never-ending, so we need to develop a The injection-moulded polyurethane TeePee screen panel complete with Saddle Top frame

36 INS I DE MI NI NG 0 3 | 2 0 1 4

The innovative Multotec TeePee screen panel which increased open area and drainage

sound understanding of each customer’s applications as the run-of-mine feedstocks continuously vary over the life of mine,” says Nelson.

Solution providers “In addition, as a result of the depletion of skill sets on the mines, screening media OEMs like ourselves are now called upon to be the solution providers and are being

held accountable for the equipment we supply. Therefore, as the technological complexity of our products escalates, we are increasingly being measured on performance.” Building on a platform of robust growth in the African market that has positioned it as the market leader, Multotec is now focusing on replicating its local successes to become the leading screening media solutions provider in the international arena. Nelson comments that, over the past four decades, the company’s screening media activities have been key to its growth. Nelson has worked within Multotec Manufacturing for the past 15 years and over the past four years was deployed in various operational roles in preparation to take on this leadership role.

Screening-media technology “Our vision is quite simple. We want to become the No 1 screening media technology solutions provider for the mineralsprocessing industry worldwide within a five- to ten-year period,” says Nelson. “We intend to accomplish this by drawing on our substantial industry experience to establish structures that will appropriately service our overseas customers. “This development will be expedited by the fact that today there is a high level of connectedness in the global mining industry in terms of technology. Whether through industry forums, movement of personnel between companies, or communication through social media, mining industry players know what’s out there and aspire to keep pace with technological advancements.” In 2003, Multotec embarked on the first leg of the journey to internationalise the company in a way that would allow it to participate in the global knowledge economy, increase the skills and experience of its personnel and identify new markets and applications.


Global customer base “Today this is being advanced by harnessing the company’s global customer base to leverage design innovation. Partnerships with customers are an important component of this initiative, allowing Multotec to become far more integrated in a knowledge economy that is moving forward at a rapid rate. “Many of our screening media personnel have been with Multotec for decades, and so we have accumulated almost a generation of wisdom and learning that has resulted in a keen understanding of market trends and the requirements of these markets, especially in the minerals processing and beneficiation arena,” notes Nelson. “We recognise that it is imperative to document this knowledge and incorporate it into systems and support structures that will take the company forward into its next growth phase.

“Screening media OEMs like ourselves are now called upon to be the solution providers, and are being held accountable for the equipment we supply.” Rhodes Nelson, MD of Multotec Manufacturing

“At the same time, we are putting a lot of emphasis on developing and retaining the critical technical talent among our newer staff members and setting them on a path to develop the levels of technical capability necessary to service global customers. In line with the majority market we’ve secured in the African

The Multotec Saddle Top frame, which offers a unique pinless panel fastening system that is growing in demand worldwide

region, this represents a new chapter for Multotec, as we move forward in terms of succession planning and sustainability. As a maturing operation, we are now looking at the bigger picture and at the longer term and believe the development of these skills will also boost the country’s economic sector in general,” says Nelson. He adds that, as customers come under increasing pressure to extract maximum value from their existing assets, the screening media market is evolving from being purely a buying market to one that demands added value. IN SID E M IN IN G 0 3 | 2014 37


Keeping tabs A comprehensive remote monitoring and asset management service is being offered by Barloworld Equipment. Inside Mining attended the official launch.


FFERED OVER five levels, Cat EMSolutions meets every operational scope requirement, from plant hire and construction fleets to full-scale mine sites. The levels available range from information access to full service and maintenance support options. Barloworld’s Equipment Monitoring Bureau (EMB), which has officially come onstream, automatically connecting to and interacting with a diverse construction

and mining Cat machine population spread across South Africa. This diverse machine population is Product Link-ready, communicating via GSM or satellite technology to a dedicated control room at the Barloworld Condition Monitoring Centre in Boksburg, Johannesburg. Product Link is Caterpillar’s on-board transmitting hardware, while the system is known as Cat EMSolutions. Barloworld Equipment is the Cat dealer for Southern Africa.

GSM technology An ongoing roll-out will extend to include coverage across the Southern African region during 2014 as successive machines are ‘switched on’. GSM technology coverage is available throughout Southern Africa, with satellite catering for remote connections outside the cellular grid. GSM provides the best platform for near real-time tracking, providing immediate and/or hourly reporting on machine health, location and utilisation, whereas satellite is generally limited to daily reports. “The introduction of Cat EMSolutions places Caterpillar at the forefront of original equipment manufacturers in the field of advanced conditioning monitoring,” argues Barloworld Equipment Bureau manager JP Briggs. “Research confirms that customers are seeking consistency and standardisation, areas where Cat EMSolutions is designed to deliver.”

Vision Link Product Link’s intuitive web-based browser interface is Vision Link, accessed via a PC or through smartphones, making it easy for users to zoom in from any location globally for a detailed look at individual assets.

LEFT An EMSolutions SOS laboratory technician BELOW EMSolutions quality control

38 INS I DE MI NI NG 0 3 | 2 0 1 4


RIGHT EMSolutions engine maintenance INSET VisionLink mobile home screen

Supporting tools include Cat SOS Services fuel and oil analysis programmes, housed at the Barloworld Conditioning Monitoring Centre, which are, in turn, accessible via Vision Link and optional or inclusive on all Cat EMSolutions options (depending on the level selected). Cat SOS Services are an essential component in machine life cycle costing and predictive and preventative maintenance strategies. Key EMSolutions features include near real-time fuel level information, machine filtering by job site/ geographical location, multiple machine tracking, payload displays on medium and large wheel loaders and geofencing capabilities.

Electronic Control Module Meanwhile, at EMB, a dedicated Barloworld Equipment team tracks individual machine data feeds downloaded via their onboard ECM (Electronic Control Module) computers. Alerts received via the EMB provide location and utilisation updates, with more detailed information transmitted depending on the Cat EMSolutions level selected. Alerts sent via Cat ECM systems notify fleet owners when standard protocols

CAT EMSOLUTIONS’ FIVE LEVELS Level 1: Enables users to access the Vision Link portal to know where their equipment is and what it’s doing with remote, near real-time information. Level 2: Enables users to manage equipment health and utilisation trends compared to benchmarks via automated reporting. These reports show a range of parameters such as fuel burn trends by machine and site application, fault codes that indicate a

have been exceeded. Examples of typical alerts are ‘engine over speed’, ‘high torque converter oil temperature’, ‘machine abuse’ and ‘implement hydraulic oil temperature high’. There are degrees of alerts, depending on the severity of the

“The introduction of Cat EMSolutions places Caterpillar at the forefront of OEMs in the field of advanced conditioning monitoring.” JP Briggs of Barloworld Equipment

need for operator training or repairs, the amount of time units spend idling as opposed to earning, and confirmation on individual machine hours recorded in order to schedule prescribed maintenance. The Equipment Monitoring Bureau generates a monthly fleet summary report for the customer, highlighting areas for potential improvement. Level 3: The package moves beyond pure reporting to include expert dealer recommendations. A Barloworld

outcome. A Red ‘Level 3’ alert status, for example, would indicate the need for an immediate mechanical shut-down and service support. “Planned and well-managed maintenance programmes provide the best assurance of high machine availability within budget, which is where routine use of Cat SOS Services provides a high degree of certainty,” comments Briggs. All SOS sample results and reports for each machine are easily accessible via Vision Link. The five Cat EMSolutions packaged options are Level 1 (Access), Level 2 (Inform), Level 3 (Advise), Level 4 (Support) and Level 5 (Manage). “Level 3 offers the best overall advantage for fleet owners seeking the benefits of mutualmonitoring, SOS analysis and constant on-line remote tracking and reporting by Barloworld’s Equipment Monitoring Bureau,” adds Briggs.

Equipment condition monitoring adviser provides valuable advice about maintenance, utilisation and repair, drawing from the data trend analysis generated. These recommendations work handin-hand with a conditioning monitoring programme that can include in-field machine inspections, and fluid analysis via the Cat SOS Services programme. Level 4: Builds on Level 3 and caters for larger fleet owners, entailing the outsourcing of

fleet maintenance, parts or repairs to a dedicated Barloworld Equipment technical services team, backed by the full EMSolutions and SOS suite, plus a dedicated conditioning monitoring adviser. Level 5: For mining customers, this is, in turn, a negotiated maintenance and repair contract option where Barloworld Equipment has sole responsibility within predetermined maintenance pricing structures for agreed machine rolling availability targets.

IN SID E M IN IN G 0 3 | 2014 39


Branding a new era This year will herald a new era for the SDLG brand in Southern Africa, with a significant investment planned.


HE INVESTMENT will be aimed “The Babcock mantra is trusted to deat gearing up all activities asliver, so the aim is to ensure that no masociated with this value-added chine will have unnecessary downtime, as range of wheel loaders, graders Babcock is able to offer 100% parts supply and vibratory rollers, according to Grant to ensure the customers’ SDLG machines Sheppard, Babcock’s newly appointed return to work in the shortest possible GM: SDLG. time. The strength of any brand is built Babcock has been the exclusive distribon customer satisfaction and, in our case, utor of SDLG construction machinery in this translates into operating uptime,” Southern Africa since early 2012. With explains Sheppard. the focus on aftermarket support for “There are more than 150 the SDLG product range, sales of these units, mostly wheel loaders, machines across the already at work across region have exceeded Southern Africa.” Grant Sheppard, expectations. “SDLG equipment Babcock GM: SDLG is recognised worldwide as high-quality, value-added products. In Southern AfriSDLG service enhancement plans inca, it is backed by an FTSE 100-listed UK clude increasing sales and service personcompany and a comprehensive network of nel across the region. The strategy is to local support centres,” says Sheppard. ensure that each Babcock/SDLG centre is SDLG is characterised by its simplicigeared fully to service the expanding range ty, cost-effectiveness and fit-for-purpose of equipment being sold across Southern design, making these machines ideal Africa. This includes a comprehensive for applications in the rehandling, constockholding of spare parts. struction, quarrying, agricultural and In addition to the popular LG918, aggregate industries. They offer exLG938, LG958 and LG978 wheel loadtended trouble-free operation and are ers, recent introductions to the SDLG very maintenance-friendly, since they range include a 16  t LG9190 grader are fitted with basic electronics and and a 12  t RS7120 hydrostatic comstandard components. pact roller. In conjunction with the new

40 INS I DE MI NI NG 0 3 | 2 0 1 4

grader, the hydrostatic compact roller is ideal for municipal activities and general roadwork. The LG9190 grader, launched at bauma Africa 2013, is currently being field-tested at a number of customers to establish comparative performance against existing equipment. SDLG machines are fitted with either fuel-efficient Cummins or Deutz diesel engines, and feature quiet, ergonomically designed cabs that are air conditioned as standard and ROPS/FOPS certified, ensuring that the SDLG range meets with internationally accepted safety standards. “There are more than 150 units, mostly wheel loaders, already at work across Southern Africa, and Babcock intends to double this during 2014,” reveals Sheppard. “With the planned addition of new personnel, enhanced service capabilities and new SDLG models, we will be well-positioned to penetrate every corner of our target market. “Customers in this market segment are rapidly recognising that the SDLG range comprises well-supported, well-priced products, and it is attracting particular attention where the requirement is for value versus premium brands,” concludes Sheppard.


Simple, automatic lubrication


HE TLSD SERIES lubricator is an electro-mechanical, single-point automatic lubricator providing direct or remote lubrication. SKF has launched the new SKF SYSTEM 24 TLSD series of electro-mechanical automatic lubricators. The new lubricators are reliable, simple to fit and are suitable for a wide range of lubrication applications, for use on equipment ranging from pumps, fans and blowers to conveyors, escalators and cranes. The robust construction of the new TLSD lubricator is especially suitable for use in applications with high levels of vibration or fluctuating operating temperatures; a special version is also available for use in cold temperatures. In each case the product offers an effective solution for the lubrication of bearings, shafts and spindles, helping

dispense lubricant in various monthly setto extend machine operating life and retings. Connection to each machine is via duce maintenance costs. either a direct mount or a feed “The TLSD lubricator is a reliable and line, each terminating with a easy-to-use product. The transparent standard G1/4 thread. reservoir makes it quick to check the The reservoir can be status at a glance, supplied in two sizes while the program(125 mℓ and 250 mℓ), filled mable drive unit with SKF-specified highoffers more options performance oils or greases. and greater flexiMaximum operating presbility, with a much sure is five bar. The drive unit clearer LED display, uses a simple rotary switch, than competing protected by a clear plastic devices,” says Guus cap, enabling the TLSD to Willems, product be programmed to dispense development engilubricant in intervals of neer at SKF. The new SKF SYSTEM 24 TLSD series choice. Additionally, a The TLSD series provides simple automatic lubrication green-amber-red traffic is a stand-alone light LED display, visible device, consistfrom all angles, clearly shows the operating of a lubricant reservoir and a battery ing status of the device. powered unit that can be programmed to IN SID E M IN IN G 0 3 | 2014 41

SKF South Africa - Celebrating 100 Years of Innovative Solutions

Mining Industry Solutions Harsh operating and market conditions make the mining industry a tough customer. SKF’s advanced range of products and services in the SKF Life Cycle Management approach - SKF’s proven approach for reducing Total Cost of Ownership for machinery at every stage, from specification and design to operation and maintenance, can help! SKF solutions assist with increased productivity and profitability, improved worker safety, reduced environmental impact, cutting energy consumption and reducing unplanned downtime.

SKF South Africa is celebrating 100 years of innovative solutions during 2014. Drawing on five areas of competence and application-specific expertise (bearings and units, seals, lubrication systems, mechatronics and a wide range of services), SKF brings innovative solutions to OEMs and production facilities in every major industry worldwide.

The Power of Knowledge Engineering SKF South Africa (Pty) Limited Tel: +27 11 821 3500, Fax: +27 11 821 3501 Email:, Web:


Tracklessmining training ABOVE Instead of applying typical simulator directed training that moves from theory to a practical component and then to deployment in the field, Murray & Roberts Cementation introduced e-learning components based on the OEM information LEFT Simulators in use at Murray & Roberts Cementation’s Training Academy at Bentley Park impact the visual, aural and haptic senses

pre-employment screening, learner diagnostic assessment, accident/incident reconciliation, enhancement of psychomotor skills, operator proficiency charting and engineering design. “As part of our long-term strategy, we intend to include simulation to support mine design and to use it to role-play incidents and accidents that have occurred in the past in the workplace to ensure that we continue mining by lessons learned,” says Pretorius.

Learner proficiencies

The Murray & Roberts Cementation Training Academy near Carletonville is using simulation to train operators in trackless mining.


ITH SIMULATION recognised as a powerful tool to enhance the competency of operators, the training academy has taken the use of simulation combined with the use of other supporting technology to the next level. Underpinned by a battery of learner support programmes, learner trackless mining machine operators are able to progress from a novice status

42 INS I DE MI NI NG 0 3 | 2 0 1 4

through a series of carefully designed stages that culminate towards operator applied competence. “We recognise that simulation has significant potential beyond what it is typically used for, and we intend to fully exploit this potential,” says Tony Pretorius, risk manager at the Murray & Roberts Cementation Training Academy. Beyond purely training, the training academy makes use of simulation for

The training academy accurately tests learner proficiencies across three areas, namely health and safety, productivity enhancement and machine appreciation, in that the associated examples test reflexive competencies through the simulation of common workplace and work-related hazards and risks in a virtual environment at a fraction of conventional training-related costs. Learner training begins with a PCbased e-learning programme developed from OEM information relating to specific machinery and actual video footage of this machinery in action. This combination of literature, diagrams and video imagery lays down the first level of foundational competence, namely knowledge and understanding.


“We intend to include simulation to support mine design and to use it to roleplay incidents and accidents that have occurred in the past in the workplace to ensure that we continue mining by lessons learned.” Tony Pretorius of Murray & Roberts The learner then proceeds to the next level, which comprises a series of visualbased training modules. It is here that the learner is taught that every action has a consequence. The aim is to impart consequential thinking, which ensures that once in the field, the candidate will take the correct course of action to prevent a negative reaction. For example, the health and safety modules focus on issues such as pedestrians, fire and brake failure by testing the learner’s reactions in a ‘what if ’ scenario.

Virtual environment Thereafter the learner is introduced to the virtual environment by engaging in video-type games relating to the theme of machinery operation. These games, highlighting tasks such as load hauling, drilling and dumping, expose the learner to the concept of what his/her future job will entail. The next stage is the ‘pre-simulation’ environment, where the learner observes the experiences of other operators on the simulator. “The aim here is to psychologically desensitise the learner in order to remove any fear of operating the simulation equipment,” explains Pretorius. Ultimately this process minimises time wasting on the simulator, because by the time the learner gets to this point, he/she has a very good idea of what to expect. Thus instead of applying typical simulator-directed training that moves from theory to a practical component and then to deployment in the field, the training academy has introduced e-learning components based on OEM information in the form of modules, to which end support coaching is provided by an SME [small to medium enterprise]

to ensure the necessary concepts are conveyed successfully.

Visual-based training Coupled to that leg, visual-based training is provided, together with a coach, to achieve reflexive competency. Gaming and pre-simulation precede simulator training. The simulator impacts the visual, aural and haptic senses, so the learner actually experiences the tension of the controls and the yaw, pitch and roll of the machine – therefore it is truly an actual ‘look and feel’ of the machine in work mode. This dynamic combination of practical and simulator training ultimately leads to everyday competency. In terms of workplace proficiency, it is ensured that the learner is able to perform the task at hand within the required parameters. Training therefore includes elements such as pre-use inspection, pre-start and start procedures,

brake testing, tramming, operation and end-of-shift procedures, which are broken down into tasks. These tasks are sequenced, whereafter a time-and-motion study is implemented for each of these tasks, which the learner must perfect before entering the workplace to gain hands-on experience. “This network of training pathways is more than the average training centre follows, and this is what differentiates us as a leader in the industry, with the overriding objective of achieving high levels of proficiency and safety,” argues Pretorius.

Learner trackless mining machine operators at Murray and Roberts Cementation’s Training Academy are able to progress from novice status to operator applied competence using state-of-the-art simulation equipment

IN SID E M IN IN G 0 3 | 2014 43


Get a load of this Atlas Copco is launching a new 18 t capacity underground loader for large operations, including development work, as well as production mining.


HRISTENED THE Scooptram ST18, the new loader is expected to be the most productive LHD (load-haul-dump) on the market. Designed to match the successful 60 t capacity Minetruck MT6020, the new Scooptram ST18 completes Atlas Copco’s range of underground loaders in this segment. “We know that this loader is longawaited by the market,” says Ben Thompson, product manager at Atlas Copco. “The optimised bucket means better muck pile penetration, faster acceleration and faster dumping. The result is a better load factor on the truck and – in the end – a higher tonnage per month.”

TECHNICAL SPECIFICATIONS Capacities Tramming capacity 18 000 kg Breakout force (hydraulic) 28 500 kg Breakout force (mechanical) 26 000 kg Motion times Boom raising 7.2 s Boom lowering 4 s Dumping 2.8 s Weights (standard equipped vehicle) Approximate weight 51 000 kg Axle load, front end 24 000 kg Axle load, rear end 27 000

44 INS I DE MI NI NG 0 3 | 2 0 1 4

In addition, the ST18 and the MT6020 share many common parts and control system components, which can reduce total cost of ownership substantially. The bucket and the unique boom design, combined with variable displacement pumps, provide safe and efficient operations. This, together with the proven Atlas Copco rig-control system, which monitors, supports and controls all aspects of the operation, results in superior muck pile penetration, less wear and tear on the machine and an overall faster and more productive loading cycle. The operator sits in a spacious FOPS/ ROPS-approved, air-conditioned cab and has extra leg room thanks to the unique Atlas Copco footbox. The layout of the controls is ergonomically optimised, and visibility is the best in its class, even towards the rear, thanks to the sloping design and shorter power frame structure. All of this contributes to an outstanding operator experience and improved productivity. The Scooptram ST18 has an abundance of safety features, such as automatic brake test, protection guards, a three-point access system, redundant steering system, ABOVE The new 18 t capacity Atlas Copco Scooptram ST18 underground loader for large operations

FEATURES OF THE SCOOPTRAM ST18 • Optimised bucket and unique boom design with load-sensing hydraulics and variable displacement pumps increase both capacity and speed. • The computerised Atlas Copco Rig Control System (RCS) monitors, supports and controls all aspects of the operation. • The operator sits in a FOPS/ROPS approved cabin with air conditioning and extra leg room thanks to the clever Atlas Copco footbox. This contributes to an outstanding operator experience and improved productivity. • The many standard safety features that contribute to a safe operation and which help to protect your investment include protection guards, three-point access system, safety latches, boom lock-up, fire suppression systems, automatic brake test and a machine protection system monitoring the engine, transmission and hydraulics. • It can be equipped to run semiautonomously or by radio remote control.

safety latches, boom lock up, fire suppression systems, a machine protection system and more. Furthermore, it can be equipped to run semi-autonomously or by radio remote control. Beyond this, the new loader offers many sustainable solutions that contribute to maximised uptime and a long service life. For example, automatic ride control and automatic declutch to increase the lifespan of the equipment and to reduce spillage from the bucket. Automatic traction control reduces tyre wear and fuel consumption while the addition of soft stops on the boom, bucket and steering reduce wear and tear.


Building for the future Atlas Copco House is a new purpose-built, multi-faceted facility for Atlas Copco South Africa. Inside Mining attended the opening of this impressive building.


UCH A STRATEGIC move centralises the business areas and divisions of this global industrial group for the sustainable and streamlined delivery of end-to-end product and service solutions to South African and Southern African mining and industry. The world-class, state-of-the-art facility occupies a total land area of 78  000  m2 and is strategically located in Jet Park, east of Johannesburg, within close proximity to OR Tambo International Airport. South Africa was the group’s first foray onto the African continent in the mid1920s. Expansion into other African

countries commenced in the 1950s and today the group’s extensive African footprint includes operations across the continent. “As a specialist supplier of compressors, construction and mining equipment, power tools and assembly systems, the successful growth and development of Atlas Copco South Africa meant that we outgrew our old Witfield head office, which simply became too small to accommodate all our business areas and divisions,” says Atlas Copco South Africa’s vice president Bernie Hanaray. Atlas Copco House will help build synergies between the four business areas: Mining and Rock Excavation Technique,

Construction Technique, Compressor Technique and Industrial Tools, as well as Atlas Copco Business Services and Atlas Copco Holdings. “We are exceptionally proud of Atlas Copco House, which reflects Atlas Copco’s values of innovation, interaction and commitment. With customers always at the centre of our attention, we will use all the capabilities offered by our new facility to full capacity to deliver world-class product and service solutions for sustainable productivity. The move makes 2014 a pinnacle year for Atlas Copco South Africa, and we look to the future with great confidence and optimism,” concludes Hanaray. IN SID E M IN IN G 0 3 | 2014 45

Delivering a world of expertise to the African mining industry

Western Limb, Bushveld Complex, Limpopo Province, South Africa

18 Industrie Road , Isando Ext 2 Kempton Park, 1600, Republic of South Africa

that have an unwavering commitment to maintaining

Tel: +27 (0)11 570 4300 Fax: +27 (0)11 974 2075 email:

Infrastructure Development, Design and Construction, Shaft Sinking, Mechanised Mining and Raiseboring






“Safety – First, Last and Always”








Deep-level A mining Both AngloGold Ashanti and Gold Fields are refining the latest developments in underground mining to improve efficiencies at their operations. By Gerhard Hope

NGLOGOLD ASHANTI’S Technology Innovation Consortium has made considerable progress in prototype development of the key technologies intended to establish the basis for a safe, automated mining method intended for use at its deep-level underground mining operations. In the fourth quarter of 2013, three 660  mm single-pass holes were drilled with the newly designed Atlantis reamer. The last hole, hole 17, was of critical importance to the project as it was aimed at proving the technical viability of drilling holes that are immediately adjacent to one another (skin-to-skin) in order to ensure maximum orebody extraction. This was done successfully, reports AngloGold Ashanti. The next holes will be drilled skin-toskin to verify the results obtained in the first test, after which the overlapping drilling configuration will be tested. The newly designed Atlantis 660  mm reamer performed well in testing in terms of penetration rates and speed, and also produced cuttings of constant size. This reamer delivered much improved size cuttings and significantly reduced the amount of vibrations on the drilling machine. The average time taken to complete the holes was 3.5 days, which compared favourably with the Atlantis single pass 540  mm hole, despite the bigger diameter. During the fourth quarter of 2013, site equipping, opening up and development of the future production sites progressed according to schedule, with the exception of the TauTona mine VCR site. A fire that occurred on 75 Level at TauTona mine led to the site establishment work being halted in the 67 Level VCR production site until safe ventilation conditions can be re-established. An alternative site that will accommodate the rig intended for this site has already been identified at the Moab Khotsong mine, with the planning for site

AngloGold’s TauTona: 1 250 oz have been extracted in an 18-hole R&D site

46 INS I DE MI NI NG 0 3 | 2 0 1 4


establishment having been concluded. The first production site, which is a TauTona Carbon Leader Reef site, is on schedule to start in April 2014. The design of a machine for medium reefs (width 40 cm to 80 cm) and the machine design for narrow reefs (width 0 cm to 40 cm) were concluded, and the orders for manufacturing have been placed. Enhancements to the batch mixing process progressed well, increasing the mix volumes and reducing the preparation time of the UHSB. A replica of the underground production site mixers has been constructed on surface for testing to ensure operational readiness. Construction of the underground backfill plant commenced in December 2013 and is scheduled to coincide with the start-up of the first production site in April 2014. Stress monitoring instrumentation installed within the filled holes is producing real-time data. Early monitoring has indicated that the performance and effectiveness of the UHSB is satisfactory and that the effect of reef boring extraction on the surrounding rock mass has been minimised. Mechanisation and large-scale mining offers the most suitable solution to mine a deposit the size of the one at South Deep, the last remaining asset Gold Fields has in South Africa after it unbundled three deep-level mines into the newly listed Sibanye Gold. Mechanisation is key to both safety improvements and operational performance for a mine the size and depth of South Deep. The developing operation sprawls over more than 3  500  ha of continuous mineral rights, 50  km south-west of Johannesburg. Its orebody comprises two thick reefs, namely the stacked Upper Elsburg conglomerates and the Ventersdorp Contact Reef. The Upper Elsburg reefs account for more than 90% of the mine’s mineral reserves. Miners access the orebody through two shaft systems: the older South Shaft complex and, 3.5  km away, the Twin Shafts complex, which opened in 2005. The main shaft at the newer complex is one of the world’s deepest single-drop shafts at 2 995 m – which is the equivalent of turning the Eiffel Tower upside down and stacking it one on top of another nine times. The steelwork in the shaft also weighs more than the entire French tower. The mine’s immediate focus is to open the orebody to enable that extra production,



andvik has been a supplier of underground equipment to South Deep for more than a decade. It commissioned the first DS210L-M, the only fully mechanised rock bolter in the South African mining industry, in February 2012. The one-man electrohydraulic low-profile rig enables installation of several rows of bolts without moving the machine. Sandvik also supplies jumbos and LHDs to the mine, and assists in classroom and simulator training for operators and mechanics. Sandvik Mining has supplied much of the mine’s trackless equipment, including 14 LH514 LHDs and five TORO 1400 LHDs, the oldest of which is still in production after 23 000 hours. South Deep also operates three Sandvik DS210L-M rock bolters. The one-man electrohydraulic low-profile rig enables installation of several rows of bolts without moving the machine and is the only fully mechanised rock bolter in South Africa. “We are using some high-tech equipment, and we believe we are much more advanced in support at depth with the mechanised bolter than other mining companies,” said Sarel Ferreira, senior manager of operations at South Deep’s South Shaft. “We are very proud to have this relationship with Sandvik at this point in time, with the new type of technology equipment that they bring in, especially in the old areas where we are going to open up again.” As part of its Vision 2015, South Deep completed a state-of-the-art mechanised training centre in December 2012. The centre accommodates more than 60 students daily and features four lecture rooms and an engineering workshop for basic maintenance training. South Deep holds classroom and simulator training to introduce equipment operators to the trackless mining environment before they make their way underground. The centre takes miners who are accustomed to conventional methods and trains them for mechanised mining within six months. “Our relationship with Sandvik is that they assist us with initial training, which consists of the theory component and also the practical components,” said Eddie Stonehouse, training superintendent at South Deep. “On the theory component side they make use of our lecture rooms and we make use of their training material. They have qualified trainers and assessors come to our site and do the initial training.” Eben van Dyk, engineering manager for Twin Shafts, looks after the mechanised fleet, including planned maintenance, breakdowns and commissioning new machines. “We started working with Sandvik to introduce various systems and controls at Twin Shafts two years ago in trying to improve our machine availabilities.”

THE SANDVIK FLEET AT SOUTH DEEP South Shaft 4 LH514 LHDs 2 TORO 1400 LHDs 2 DS210L-M rock bolters 1 DS311 rock bolter 1 DD321-40 twin-boom jumbo drill rig 1 DD210 jumbo drill rig

Twin Shafts 10 LH514 LHDs 3 TORO 1400 LHDs 1 DS210L-M rock bolter

Total 14 LH514 LHDs 5 TORO 1400 LHDs 3 DS210L-M rock bolters 1 DS311 rock bolter 1 DD321-40 twin-boom jumbo drill rig 1 DD210 jumbo drill rig

IN SID E M IN IN G 0 3 | 2014 47


AngloGold's TauTona in South Africa

which requires increasing the rate of mechanised destressing, an innovative mining method critical for countering rock stress at extreme depths. Destressing at South Deep means mining-out select cuts some 2.2 m high and 5 m wide in order to relieve pressure above or below stopes. In addition, backfilling the cavities with mined material increases stability. “We are the only mining company in South Africa that’s currently doing this type of destress at such a deep level. We are basically fooling the rock into thinking that we’re mining at 1  200  m, instead of

three kilometres underground,” says Sarel Ferreira, senior manager of operations at South Deep’s South Shaft. The majority of ore is extracted by longhole stoping. Drilled and blasted ore is transported to internal orepasses using LHDs, hoisted to the surface through an expanded ventilation shaft and processed at a recently expanded central metallurgical plant. South Deep’s Vision 2015 aims for a production rate of 330  000 reef tonnes per month, which would enable the mine to achieve its target production of 700 000 oz of gold per year in a few years’ time – a rate it expects to maintain until 2057, with mine closure projected for 2080. As Gold Fields works to position South Deep as one of the world’s safest and most efficient mines, the company believes building up to full production may also require increasing the number of ore passes from six to nine by July 2014, to help

reduce underground ore accumulations and increase mill yield. “We have cracked deep-level bulk mining at this depth with our mechanised equipment,” says Ferreira. “We are really now focusing on implementation best practices, especially on the mechanised operation, to enable us to become more efficient with our machinery.” South Deep has reserves of 39 Moz and resources of 79  Moz. Gold Fields CEO Nick Holland says the mine will come into steady-state production of between 650 000 oz and 700 000 oz in 2018 at an all-in cost of US$900/oz (R9  649/oz), a year later than planned. To date, Gold Fields has spent US$4 billion, including the initial purchase of the mine. Its capital expenditure to 2019 will total a further US$1.05 billion, making it the world’s most expensive underground mine, according to Peter Major from Cadiz Corporate Solutions. An Australian team has been brought in to assist. Garry Mills, former GM at Gold Fields’ Agnew mine in Australia, has been appointed as GM.

48 INS I DE MI NI NG 0 3 | 2 0 1 4


From dump trucks to bulldozers, wagon tipplers to mills, DCD Venco has the capacity to fabricate and manufacture components of up to 50 tons. DCD Venco is a world-class specialist manufacturer of attachments for opencast mining, using OEM and custom designs. Serving renowned OEMs our manufacturing extends to industrial markets including drum reclaimers, ship to shore and roller gantry cranes. DCD Venco proudly supports SA infrastructure build by providing competitive local content.

t: +27 (0) 34 328 2700 e:


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:


Greener mining Winners of the 2013 PneuDrive competition officially received their certificates at a special awards ceremony hosted in Johannesburg by the event sponsors and organisers, SEW-Eurodrive and Pneumax.


HE AIM OF the PneuDrive competition is to provide mechanical, electrical and mechatronic engineering students with the opportunity to combine engineering theory with the latest drive engineering and pneumatics technology, while solving business problems in a controlled environment where they gain realworld experience. The theme for the 2013 challenge was greener mining. The two-man team from Cape Peninsula University of Technology (CPUT) won with their ‘Waste Granite to Cobble Machine’, designed for breaking large pieces of granite in abandoned mines and converting them to cobbles, which could be used to pave dirt roads and improve living standards in impoverished communities. SEW-Eurodrive’s GM: Marketing and Communications, Rene Rose, explains that the winners received a 10-day all expenses paid trip to Germany and Italy, where they were hosted by the head offices of the sponsor companies. Furthermore, CPUT also receives R100 000 worth of products from SEW-Eurodrive and Pneumax, while each participating university is entitled to R40 000 worth of products for completing the competition. Competing CPUT student Gareth Hardman comments that the project required dedication and hard work. “One of the toughest aspects of this project was committing a lot of time and work to a prototype, only to realise you have hit a deadend and you cannot go any further. You have to learn from it and, in some cases, start again from the beginning.” His partner, Christian Mpiana, observes that he had to overcome several challenges while working on the project. “The toughest challenges included thinking like an engineer, self-questioning, time management and staying objective when working on an idea. In terms of the learning

CPUT Engineering Project and Innovation Centre manager Francois Hoffman

process, it is good to question yourself before making decisions.” CPUT Engineering Project and Innovation Centre manager Francois Hoffman guided Hardman and Mpiana through this project, which he believes was a valuable learning experience for his students. “There is that lightbulb moment where you realise that you have been asking the wrong questions and trying to solve the wrong problem. You have to flip the problem on its head. It is not the solution that is the problem, but the problem itself.” He adds that Hardman and Mpiana were struggling to move the granite block from station to station in their design, before realising that they did not need to move the block; rather the machine could move while the block remained stationary. Hardman and Mpiana agree that the PneuDrive competition was a rewarding experience that has placed them in good standing for the future. Rose adds: “The sponsors of the 2014 competition, SEW-Eurodrive and Pneumax, recognise the importance of businesses partnering with higher education institutions to help address the enormous pressures that they are under, and to prepare skilled engineering students for the labour market. The 2014 competition aims to bridge that gap.”

One of the lecturers in attendance commented that the PneuDrive competition can be easily incorporated into his third-year design course. “I am in a good position to incorporate the competition into the course. One of the course requirements is a team project, and the competition can work perfectly to fulfil that requirement.” Pneumax MD Adrian Buddingh reveals that there are numerous steps in place to assist the students with the competition, which commences with a roadshow that clearly defines the rules, processes, theme and benefits of submitting an entry. “Past experience has taught us that there are gaps between the learning and working experience of engineering students. Workshops have been arranged to ensure that students can also meet with experienced engineering experts to receive feedback on their design proposals,” says Buddingh. In addition to the roadshow and workshops, information on the competition is online at, which serves as an information portal. Winning CPUT team: Gareth Hardman (left) and Christian Mpiana

IN SID E M IN IN G 0 3 | 2014 51


Global player With WEG of Brazil now having 100% shareholding in Zest Electric Motors, the local company is now firmly entrenched in the global group and is an integral part of its global strategy. By Gerhard Hope


EST BEGAN distributing WEG products in 1980 and quickly became a significant player in this market, says group sales and marketing director Gary Daines. “In mid-2010, WEG acquired a controlling share of Zest and by the end of last year had a 100% shareholding. It has really become part of the greater group, which is the global strategy moving forward.” Zest’s overall strategy is still predicated on top-class products and service reliability, and “drawing it all together to give our customers a synergistic solution.” While that may seem relatively straightforward, Daines notes that “you can offer your customer the greatest solution, but if there is one component that fails, it will not work. It is really important that we work together continuously as a group, in developing our solutions and offerings, in the way we engineer it, in the way we sell it and finally in the way we deliver it. It is not something to be underestimated.” An example of Zest’s proactive approach to technology, innovation and customer service is its mobile substations for

52 INS I DE MI NI NG 0 3 | 2 0 1 4

Eskom. “We have put a lot of R&D into this, and we are also taking a lot of technology from Brazil, where WEG is a market leader in this sector.” Daines notes that while the technical specifications differ in South Africa, the fundamental requirements remain the same, such as ensuring that the transformer can be transported easily without incurring any damage. “It has been a great project for us, certainly to be able to work with WEG on this. In terms of Eskom, we have had great success, and they have been really pleased with the results.”

Sourcing technology In addition to sourcing technology from WEG, Zest has also embarked on a localisation strategy. The latest development in this regard is the incorporation of Shaw Controls, a manufacturing facility in Robertsham, Johannesburg, that employs 200 people. This is a specialised MCC manufacturer focusing mainly on mining projects, from Zambia to Burkina Faso, Ghana and the Democratic Republic of the Congo.

“This was the first step in our localisation strategy. Shaw Controls works predominantly with the major mining consultancies and is therefore very integral to a lot of our projects. It is totally vertically integrated, so basically we just have to buy sheet steel wire and electrical components and then build the MCCs from there.” The company has CNC bending brakes and punching machines. In addition to manufacturing, Zest can also assist with installation and commissioning. September last year saw the establishment of WEG Transformers Africa. “This was a big step for us,” notes Daines. “From a WEG perspective, we wanted to increase our localisation base, and we saw the opportunity with transformers. We import the larger transformers from WEG in Brazil. We have an Eskom contract that has been going now for six years and saw the opportunity to increase our competitive position on smaller transformers. Hence we saw the opportunity to acquire a factory. Obviously from an Eskom perspective, they have also been very much driving us to increase our local content. It has taken


time to find the right facility, and we are very excited at the latest development. We are now busy with the technology transfer from WEG Brazil in terms of process and design. There is a serious investment plan over the next five years to grow this into a fully fledged facility.”

Big vision: WEG 2020 Daines says that “the WEG 2020 vision is bigger than just the South African or even African market. WEG as an organisation has, over the last seven years, focused on increasing its manufacturing base around the world. It is growing globally by

ABOVE LEFT WEG motors in operation at Twangiza mine ABOVE RIGHT “Hidden Power” Silo 1 business and residential building, backup power solution RIGHT A 48 MW multi-extraction condensing steam turbo generator set during installation at Mondi’s Richards Bay operation

in terms of product. Ultimately it will be a fully integrated WEG product, and we would then derive the benefit of group R&D moving forward.” Daines adds that Zest’s customers have been “undoubtedly supportive” of the developments at the company. “I think that certainly in “It is really the beginning, as we startimportant that ed the strategy, there was we work together undoubtedly an element of continuously as a scepticism, but the proof is in the pudding. It was up to group, in us to establish the benchmark. We have paid some developing our school fees along the way, solutions and especially in Africa. You offerings.” Gary Daines, Zest WEG Group can send a truck up now sales and marketing director and it will take two weeks, or you can send a truck up a day later and have a totally different result. It is that kind of learning optimising the labour/exchange rate posicurve we have had to be very conscious tions of the various countries in which it of,” says Daines. “Overall we find that our operates. Now that we have a factory in customers like the concept; we get apSouth Africa, we can compete on that levproached continuously about it. I think it el. The WEG 2020 vision was established has been very successful for us.” in 2012, and focuses on growing the global business fourfold by the year 2020. “Our WEG offices around the world can Support and training draw on that facility for their markets globDaines explains that after-sales support ally. Certainly our first target is Australasia and training are two critical components

A 48 MW multi-extraction condensing steam turbo generator set during installation at Mondi’s Richards Bay operation

in terms of Zest’s continued success. “We have a large customer service team. It has always been a strength of Zest. We are very much focused on 24/7 support, but at the same time we focus on customer training. You can avert a lot by just putting in the right training at the beginning. We have a dedicated training facility and training officer to provide training on our various products. Our courses are CPD-rated and thus add value to all skill levels, from engineer to artisan. We also have a learnership programme.” Daines explains that clients are encouraged to incorporate their operational staff in the commissioning process in order to maximise the training opportunities of having the Zest team on-site. “It also helps us to build long-term relationships with the operational team of the plant.” It is initiatives such as these that have resulted in Zest enjoying another successful year in 2013. “Most of our clients are repeat clients; they enjoy working with us and they know how to interface with us. It is a long-term business.” IN SID E M IN IN G 0 3 | 2014 53


Heavy mover

Paul Nutzfahrzeuge Special Trucks & Chassis of Germany has developed a three-axle heavyload giant heavy mover that is ideal for remote mine sites.


HE HEAVY MOVER is a three-axle transport giant that can accommodate a payload of up to 220 t at 250  t gross combination weight in semi-trailer and towed-trailer configuration. It has an empty weight of 27  t and a remarkable permissible gross weight of 80  t. The heavy mover is suitable for transporting materials, flatbed trucks and equipment attachments in heavy off-road operations. The vehicle is said to set a new benchmark, in mining in particular, with its impressive dimensions of a 3.5  m width and a compact length of 12.3  m. The heavy mover drew heads at the 2013 Bauma trade fair in Munich. This is the first full in-house development at the German company, which has decades of experience in the conversion of special vehicles, chassis extensions and customised vehicle concepts. The basic powertrain, chassis and widebody cab of the heavy mover are derived

The heavy mover from Paul Nutzfahrzeuge is a giant off-road vehicle ideal for remote mine sites in Africa

ground clearance is provided by the three driven planetary axles with lockable transverse differential, as well as the man-sized tyres. In addition to the standard 29.5 R25 from the Mercedes-Benz Actros, which entyres, size 875/65R29 tyres are also an opsures a high level of riding and operating tion for both rear axles. comfort. Two different Euro 3 and Euro 5 For heavy-duty tasks such as material engines are available. The standard opand special transport of oversized compotion is a V8 turbo diesel engine (OM 502 nents such as concrete pillars or pipeline LA with 571  hp segments, the or 609  hp at heavy mover proThe heavy mover 1  080  rpm. Amvides a balanced ple traction is axle-load distriis said to set a provided by a bution of 20 t on new benchmark, in high torque of the steered front 2  400  Nm to axle, and up to mining in particular, 3  000  Nm, to30  t respectively with its impressive gether with the on the two rigfully automatic id rear axles. In dimensions 16-speed Poweraddition, heavyShift transmisduty type 56E sion and a Viab turbo clutch. couplings with up to 170 t of trailer load, The heavy mover can achieve speeds of or alternatively heavy-duty fifth wheel up to 65 km/h through rough terrain, with couplings shouldering up to 36 t of verti6x6 all-wheel drive as standard. Thanks cal load, can be mounted. The heavy movto the low overhang at the front and rear, er is retarded by means of drum brakes it features convenient approach and deequipped all-round with disconnectaparture angles of about 30  degrees. High ble ABS. IN SID E M IN IN G 0 3 | 2014 55


Trailers for opencast mines Martin Trailers has designed and produced three new mining trailers specifically for opencast mines around the world.


INING TRAILERS need to be designed and built so that they can operate successful in the harsh condition of opencast mining. “We ensure that all our trailers are custom built to meet the exact requirements of the mine and are durable and versatile,” says Kieron Gore, director at Martin Trailers. The newly designed trailers will aid in moving tracked machines, dead machines, haul trucks as well as drill rigs,

shovels, excavators and dozers. “Transport solutions for the mining industry can be costly and complicated. Each mine has unique requirements and considerations as a result of location, accessibility, budget, timing and the nature of the operation,” comments Gore. Martin Trailers has also developed an entry-level trailer catering specifically for smaller machines. The undercarriage and frames have been uprated allowing for an on road capacity of 100 t to 120 t on-site.

Being able to provide customised solutions and the widest range of low-bed mining trailers has seen Martin Trailers become one of the leading global manufacturers of mining trailers over the past 30 years. Gore concludes: “We are proud to be able to provide mines across Africa and the rest of the globe with a proven design methodology, technical expertise, fast lead times and experience that will suite any mine’s individual requirements and carrying capacity.”

Komatsu Southern Africa

SEW Eurodrive

50 41

INDEX TO ADVERTISERS AMEC Minproc Babcock International Group

34 IBC


Metso Minerals


SKF South Africa


Tenova Bateman Technologies

Bell Equipment


Model Maker Systems

Booyco Electronics


Powerstar NHL


Copperbelt Mining


Redpath Mining




DCD Mining & Energy


Sandvik Mining


Zest WEG Group


56 INS I DE MI NI NG 0 3 | 2 0 1 4


ThyssenKrupp Resource Technology 37

uppe marketing A10228

So that you can focus on the job at hand. Not only does Komatsu manufacture and sell new equipment and machinery around the world, we also offer a wide range of remanufactured components. Furthermore, our highly trained technicians are always at your service to get the job done timeously, minimising downtime and reducing costs. Add to this our reliable after-sales maintenance programme and genuine parts, and it goes without saying ... your Komatsu will go on performing at its best ... year after year.

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

Inside Mining March 2014  

The March 2014 edition of Inside Mining