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ISSUE 3, 2018

HEALTH:

TB in Mining Economies of Southern Africa SA Mining & Energy Review Issue 1 2018

KOEBERG: Safety comes first.

BIGEN:

Doing good while doing business.


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SA Mining & Energy Review Issue 1 2018


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SA Mining & Energy Review Issue 1 2018

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From the

EDITOR

I

n a communique issued by Vusi Mabena, Executive Secretary, Mining Industry Association of Southern Africa on February 4, the association pledges support and collaboration with stakeholders in helping efforts aimed at developing the mining industry in southern Africa. What caught my attention the most is when one of the principles stated that MIASA calls for “Governments and the mining industry . . . to co-create a common vision by subscribing to and implementing the national development plans”. Of interest to investors and stakeholders in the sector has been the Mining Charter 2017 issued by the Department of Minerals and Energy under Minister Zwane. The Preamble opens by boldly stating that “The systematic marginalization of the majority of South Africans, facilitated by exclusionary policies of the apartheid regime, prevented Black Persons, as defined herein, from owning the means of production and from meaningful participation in the mainstream economy”. The document goes in detail to look at issues such as ownership, procurement, employment equity, beneficiation, human resource development, mine community development, and housing and living conditions. Zimbabwe’s Indigenization and Economic Empowerment Act is one other initiatives investors have also been wary of when it comes to investment in the mining sector in Southern Africa. There has been a change of guard in Zimbabwe and the new President Emmerson Dambudzo Munangagwa’s government has reversed some legislation in a bid to attract investment in the mining sector. The 51% - local and 49% foreign approach as called for by the act has now been reversed and set aside for key minerals one of which is platinum. I suppose stakeholders in the industry will continue to play-fair when investing in the industry but also taking time to consider the environment they are working to make money from. The year is so promising. The mining indaba promises exciting opportunities again. The 2018 edition of the Investing in African Mining- traditionally known as the Mining Indaba stands as a drawcard on the business calendar. Be part of the exciting developments by taking advantage of our editorial and advertising opportunities. Get in touch with our editorial and marketing team for exciting ad innovative packages on offer. I am looking forward to the next instalment of the Southern Africa Mining & Energy Review. Until next time,

Grivin grivin@primediazw.com

Wide Open Media 262 Voortrekker Road, Cape Town, South Africa Tel: +27 21 829 0259 Email: info@miningenergyreview.com

CONTRIBUTORS Warren Beech, Jessica Black Livingston, Nkosi Makoko DESIGN & LAYOUT Pixel Resolution MANAGING EDITOR Grivin Ngongula

ADVERTISING SALES EXECUTIVES: Matshona Tshabalala, William Lambert, Crishelda Peters COPY EDITOR Anne Kruger

Web: www.miningenergyreview.com Southern Africa Mining & Energy Review is a publication by Wide Open Media (PTY) Ltd {Incorporated in South Africa}. Although persons and companies mentioned herein are believed to be reputable, neither Wide Open Media (PTY) Ltd {Incorporated in South Africa}, nor any of its employees, advertising sales executives or contributors accept any responsibility whatsoever for such persons’ and companies’ activities. While every effort has been made to ensure that information is correct at the time of going to print, Wide Open Media (PTY) Ltd cannot be held responsible for the outcome of any action or decision based on the information contained in this publication. The publishers or authors do not give any warranty for the completeness or accuracy for this publication’s content, explanation or opinion. It is advisable that prospective investors consult their attorney/s and/ or financial investor/s prior to following pursuing any business opportunity or entering into any investments. Nothing in this publication should be taken as a recommendation to buy, sell, hold or trade any listed securities, or other financial instrument or asset. No part of this publication and/or website may be reproduced, stored in a retrieval system or transmitted in any form without prior written permission of the Publisher. Permission is only deemed valid if approval is in writing. © Wide Open Media (PTY) Ltd {Incorporated in South Africa}. All rights reserved

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Southern Africa Mining & Energy Review


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SA Mining & Energy Review Issue 1 2018


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Applications to: The Registry Department, Zimbabwe School of Mines Box 2745, Bulawayo registry@zsm.co.zw; dlc@zsm.co.zw

Tel.: 263-9-290596-8, 291598, 290602, 291247; Fax: 263-9-291246, 772 177 480-1 E-mail: corpaffairs@zsm.co.zw; adminsec@zsm.co.zw; Website: www.zsm.ac.zw


CONTENTS Editor’s Letter . . . . . . . . . . . . . . . . . . . . 4 Contents . . . . . . . . . . . . . . . . . . . . . . . . 7 A Journey towards transformation – in, of and for Africa . . . . . . . . . . . . . 10 Is the African Continent mining and natural resources sector becoming uninvestable? . . . . . . . . . . . . . . . . . . . 16 The economic impact of TB on the Mining industry and Southern African Economies . . . . . . . . . . . . . . . . . . . . . 22 US$2.1 Billion mining project runs on Candy from CCS . . . . . . . . . . . . . . . . . 28

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Caterpillar presents broad range of machines, technology and services to support African mining . . . . . . . . . . . 36 New optimism in the mining sector sees leading suppliers sign up for West Africa’s premier expo . . . . . . . . . . . . . 40 Prioritize Power Utilities’’ Interconnectivity for a Stable Energy Situation in Southern Africa . . . . . . . 46

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IoT innovation in solar powered milling . . . . . . . . . . . . . . . . . . . . . . . . . 54 Koeberg is a responsible citizen where safety comes first . . . . . . . . . . . . . . . . 60 Southern Africa Mining & Energy Review

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SA Mining & Energy Review Issue 1 2018


THE GREATER DEVELOPMENT CHALLENGE: ENGINEERING WITH A CONSCIENCE TO CREATE SUSTAINABLE IMPACT

T

he Bigen Group, a leading infrastructure development activist with an influential presence in Africa, recently launched its enhanced brand as a socio-economic development impact organisation. We caught up with the group’s Executive Chairperson, Dr Snowy Khoza, to find out what this means for the company and for infrastructure development in Africa. Internationally acclaimed as an astute business professional and the recipient of numerous prestigious local and international awards, Dr Snowy Khoza is also a self-proclaimed development activist and benefactor to the disadvantaged. Her board-appointment as Bigen’s executive chair in 2016 follows a five-year tenure as the company’s CEO and attests to the success with which she spearheaded Bigen’s repositioning as an infrastructure development impact activist in deliberate pursuit of improving livelihoods for the people of Africa.

What is the context for the launch of the new Bigen Group brand? “Bigen’s infrastructure development footprint in Africa spans more than 46 years. During much of that time, we focused on delivering cost-effective, client-specified infrastructure. In recent years, the imperative of meeting the 2030 global sustainable development goals has highlighted the need for greater inclusivity and beneficiation for the people and communities on the Southern Africa Mining & Energy Review

periphery of our infrastructure development projects, to align project outcomes with Africa’s sustainable development goals. “This ‘social conscience’ takes infrastructure development beyond commercial gain and poverty alleviation, to addressing vulnerability, unemployment, exclusion and the lack of basic services. It is a philosophy that informed our Vision 2021 strategy and gave impetus to the group’s recent transformation from an engineering and management consultancy to an infrastructure development activist in deliberate pursuit of social betterment. This philosophy has become ingrained in Bigen’s corporate culture as the essence of what we do: building a better quality of life for Africa’s people by doing good while doing business.” “The launch of the new Bigen brand more accurately reflects this philosophy and the repositioning of our core capabilities to serve the transportation, energy and health sectors, in addition to our traditional involvement in the water and sanitation as well as real estate sectors.” “The new brand emphasises our role in empowering local communities through economic inclusion, skills development, employment and procurement opportunities as a critical component of all our infrastructure development services. It


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Southern Africa Mining & Energy Review


also give us the opportunity to share Bigen’s social conscience stories to give substance to our positioning as a development impact activist.”

How is socio-economic development reflected in Bigen’s strategy and its role in infrastructure development in Africa? “The infrastructure development industry has a pivotal role to play in socio-economic development and transformation in Africa. Delivering infrastructure projects beyond commercial demand requires a commitment to community beneficiation through ownership, management control, job creation, preferSouthern Africa Mining & Energy Review

ential procurement and supplier development.” “Creating socio-economic development impact is at the heart of our Vision 2021 strategy. It is the golden thread that runs through all our activities and is aligned with the Batho Pele principle of putting people first. This means that inclusivity, localisation, indigenisation and beneficiation are linked inextricably to project planning, design and execution. It enables us to create employment, training and skills development opportunities for individuals,

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service suppliers and entrepreneurs in the communities where initial investment of R70 million, to create a pipeline of bankable we work.” infrastructure projects. We will invest R650 million over the next “For instance, when a water reservoir is built for a mine, the 10 years and expect the AIPF to unlock more than R6 billion in surrounding community benefits from potable water, while the capital projects. mine processes the grey water. When a municipality commissions a bridge, we create a multi-purpose structure with cycle As a woman and non-engineer, how did you give paths, pedestrian walk-ways and lanes wide enough for donsubstance to your role at Bigen, first as its CEO and key-carts. Local contractors benefit from building schools and currently as the executive chairperson? hospitals with government support by including these struc“My appointment as Bigen’s CEO in 2010 came with the dubious tures in the initial infrastructure development planning.” distinction at the time of being the first female, non-engineer to “Our participation in major power generation projects in the steer the company in its 40-year history. Given my background, proximity of local townships include also providing everyone I envisioned the true essence of the company as that of an inin those townships with access to electricity. In the Sol Plaatje frastructure development impact activist – leading by example community on the West Rand in Gauteng for example, Bigen’s – rather than continuing as just another engineering firm. The role in a major electrification project ensured that the entire emphasis needed to be on translating economic benefits to socommunity benefitted from access to electricity. This providcietal well-being, especially for the indigent and disadvantaged ed scholars with online access, reduced the crime rate in the communities. community and enabled local entrepreneurs to start their own “My first challenge was to instil a social conscience into the businesses. Bigen culture and introduce engineers and other professionals “Pursuing socio-economic development impact also entails to the concepts of socio-economic development, transforsupport for African governments to mation, inclusivity and beneficiation achieve their sustainable development for the people and communities where MY APPOINTMENT goals by 2030. In instances where a lack infrastructure development projects AS BIGEN’S CEO IN 2010 of funds prohibits the construction of are implemented. This required a deep CAME WITH THE DUBIOUS interrogation of Bigen’s corporate strategy, critically needed infrastructure, Bigen facilitates funding through authentic partbusiness models and approaches, policies, DISTINCTION AT THE nerships or access to one of the Bigen’s 22 processes, and thinking at the time. TIME OF BEING THE FIRST From this we developed our Vision 2016 development finance partners.” FEMALE, NON-ENGINEER TO strategy which I led as the CEO to emHow does Bigen use partnerships bed our full value-chain of infrastructure to create socio-economic develop- STEER THE COMPANY IN ITS development activism approach and our ment impact? commitment to doing good while doing 40-YEAR HISTORY. “In line with Bigen’s Vision 2021 strategy, business. This led to Bigen being able to partnering is integral to revenue generaenter new countries and markets on the tion and project delivery. Our partnering continent. Our delivery approach led us to approach is fundamental to presenting our unique, one-stop being recognized through more than 30 awards between 2011 African infrastructure ‘supermarket’ and Rubix project portfolio and 2016 in business excellence, engineering and as the infraplatform, which combine our capabilities with those of our structure company of the year, and empowering and mentoring partners to provide clients with comprehensive and bespoke in- company of the year for example.” frastructure service solutions, while enabling skills development, “Currently, as executive chair, I continue to work with the capacity building and SMME empowerment.” Bigen leadership team to further position the company as an “Our international partnerships include a range of European, influential contributor to socio-economic development impact Scandinavian and Canadian infrastructure development firms in Africa. I am also involved in the strategic positioning of the with access to donor and development finance solutions. We group as brand ambassador and spokeswoman. I thoroughly also join forces with local and in-country partners to position enjoy the extension of my association with Bigen and its expanthe business as a regional partner of choice and honour our sion into the continent. Our transformed capital structure, with commitment to localisation and beneficiation.” head offices in South Africa and Mauritius, and especially our “Through our strategic partnerships we can fast-track project social conscience focus, provide an effective springboard for our objectives and sector-specific interventions. Our partners must determined drive towards becoming one comply with our indigenisation policy and have the welfare of of the top-five socio-economic impact the country in which we work at heart, with a sincere interest in activist in Africa by 2021. I welcome the its economic and social growth. Only then can all project role opportunity of being part of that journey.” players contribute proactively to societal upliftment.” “Our Vision 2021 strategy also steers the company and our investment partners towards a common goal of doubling the enterprise value by 2021. One of the mechanisms in this regard is the establishment of the African Investment Preparation For more information please visit: Facility (AIPF), in which Bigen is the founder member with an www.bigengroup.com

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IS THE AFRICAN MINING AND NATURAL RESOURCES SECTOR BECOMING UNINVESTABLE?

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Southern Africa Mining & Energy Review


BY WARREN BEECH, GLOBAL HEAD, MINING SUBSECTOR, HOGAN LOVELLS, JOHANNESBURG & JESSICA BLACK LIVINGSTON, DEPUTY, MINING SUBSECTOR, HOGAN LOVELLS, DENVER.

A

t the recent Africa Forum hosted by Hogan Lovells, in London, a number of common, positive themes came through: Africa is a continent of endless possibilities and opportunities; Africa has significant natural and human resources which can be unlocked for the benefit of all Africans; and the investability of many African countries has improved, for various reasons, including mature banking, finance and legal institutions, investment-friendly policies and regulatory frameworks, and national development plans which demonstrate governmental support for sustainable infrastructure and development. Why then, within the context of a mostly positive view of investment in Africa, is the question posed whether the African Mining and Natural Resources Sector, is becoming uninvestable? Firstly, positive views of investment in Africa don’t always extend to the Mining and Naturals Resources Sector. While it is often acknowledged by stakeholders that the mining and natural resources of a country can contribute meaningfully to growth, development and transformation, there is a growing questioning of the impact of mining on aspects such as the environment, host communities, social structures, tourism, and industries such as agriculture, versus the benefits that often flow from mining and beneficiation operations. As the voices of concern increase and develop, the benefits that flow from mining and beneficiation operations are likely to be questioned, even further. Secondly, the recent mining policy and regulatory changes in Tanzania and South Africa have brought into sharp focus the fragility of investment decisions relating to so-called “frontier markets”, such as Tanzania, and emerging markets, such as South Africa. With a decrease in the number of investable frontier markets (equity and bond markets which are typically smaller than emerging markets and where there is less liquidity) and Southern Africa Mining & Energy Review

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investment instability in emerging markets, such as South Africa, the recent events in these two countries are more concerning. Tanzanian President John Magufuli signed into law the Natural Wealth and Resources Bill 2017, and the Natural Wealth and Resources Contracts Bill, 2017, on 3 July 2017. These laws, which were fast-tracked though the Tanzanian Parliament, in a matter of weeks, have far-reaching consequences for foreign companies with investments in Tanzania. Tanzania is one of Africa’s largest gold producers (depending on the figures used, Tanzania is either the third or fourth largest gold producer in Africa). There has been extensive investment in Tanzania’s gold mining industry, with a large percentage of the investment, focused on prospecting operations, which are of course critical in the creation of a pipeline that can be converted into mines, in the future. Many of these investors are listed in Australia, and the Australian Stock Exchange took the drastic step of suspending trading of various junior mining companies, following the announcement of the enactment of the laws, by President Magufuli. The uncertainties flowing from the new laws are likely to impact on these junior mining companies, who are focused on exploration, quite dramatically and it will make

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capital raising exercises, extremely difficult, if not impossible – where ownership of mining assets in a company are put at risk, this is likely to scare off would-be investors, and make existing investors exercise extreme caution. Key changes brought about by the new legislation in Tanzania include the following:  The Tanzanian government is given the right to re-negotiate or dissolve current mining contracts with multi-national companies;  The State will be required to own at least 16 percent of mining projects;  Export royalties have been increased;  The Tanzanian government can reject a mining company’s valuation where the government believes that the transfer price is too low, and the Tanzanian government is entitled to purchase the consignment of the minerals, at the price declared by the mining company;  The right to international arbitration is removed.  The Tanzanian government is also pushing for compulsory listing of mining companies on the Dar es Salaam Stock Exchange, with the complexities that this will bring, particularly


Various South African mining companies have recently announced proposals for further job losses, which may exceed 20 000 direct jobs. because of the potentially small pool of investors who can take up the public offerings. While multi-national mining companies with investments in Tanzania continue to engage with the Tanzanian government, some of the multi-national companies have declared disputes with the Tanzanian government and are referring these disputes to arbitration. None of this is good for the Tanzanian mining sector. On 15 June 2017 the South African Minister of Minerals, Mosebenzi Zwane published the “Reviewed Broad-Based Black Economic Empowerment Charter for the South African Mining and Minerals Industry, 2016”, (“Mining Charter 3”). The response was immediate, dramatic, and far reaching. It is estimated that mining stocks lost approximately R50 billion in value, following the announcement, with the rand losing

ground, and the Chamber of Mines, the body that represents the majority of the mining companies, launching legal proceedings against Minister Zwane. The grounds of challenge go to the heart of the Minister’s powers and functions under the mining legislation and the Constitutionality of Mining Charter 3. While Minister Zwane has labelled the legal challenge as being anti-transformation, the Chamber of Mines and other bodies representing mining interests have consistently expressed the position that the industry is committed to transformation, that the industry has demonstrated its commitment, through the implementation of appropriate programmes of transformation including in respect of the host communities through the social and labour plans which are a requirement under the Mining Laws, but that the targets in the Mining Charter must be achievable, sustainable, and the timeframe should take into account the reality that the mining industry finds itself in, with the spector of significant, further job losses in the near future (while figures vary, the suggestion is that in excess of 80 000 direct jobs have been lost, in the industry, over the last three to five years. Various South African mining companies have recently announced proposals for further job losses, which may exceed 20 000 direct jobs).

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Mining Charter 3 made significant amendments to the skills. transformation requirements under the previous versions of the There were glimmers of hope when, following negotiations Mining Charter. Key changes include the following: between the Chamber of Mines and Minister Zwane, Minister  Holders of new prospecting rights must have a minimum of Zwane agreed to suspend Mining Charter 3 pending the 50 percent plus 1 Black person shareholding; outcome of the legal challenge initiated by the Chamber  A holder of a new mining right must have a minimum of 30 of Mines. However, the following week, Minister Zwane percent Black person shareholding (up from the previous 26 published his intention to issue a notice placing a moratorium percent); on all applications for new prospecting and mining rights,  The 30% Black person shareholding in new mining rights renewals of prospecting and mining rights, and Ministerial must be distributed amongst three beneficiaries, namely Consents in terms of Section 11 of the Mineral and Petroleum a minimum of 8% for employee share ownership plans, Resources Development Act, No. 28 of 2002 (“MPRDA”) a minimum of 8% for mine communities to be held in a (in summary where a right or an interest in a right is to community trust, and a minimum of 14% to Black Economic be transferred or there is a change of control, Ministerial Empowerment Entrepreneurs; Consent is required). The Minister indicated his intention to  For employee share ownership plans, a minimum of 8% issue the moratorium notice under Section 49 of the MPRDA for mine communities to be held in a community trust, which vests the Minister with the authority to issue a notice and a minimum of 14% to Black Economic Empowerment prohibiting prospecting or mining in respect of certain Entrepreneurs; geographical areas or certain minerals for a particular period,  A holder of a new mining right must pay a minimum of having regard to the national interest, the strategic nature 1% of its annual turnover in any given financial year to the of the mineral in question and the need to promote the Black Person shareholders prior to, and over and above, any sustainable development of the nation’s mineral resources. distributions to the shareholders of the holder; The widely expressed view was that the  While there is limited recognition of the Minister had exceeded his powers under Various South “once empowered, always empowered” Section 49 of the MPRDA by intending African mining principle, unless the Historical Black Economic to issue a blanket notice. Litigation was companies have Empowerment Transaction achieved 26% Black again initiated, and as at the date that shareholding or more, the historical transaction recently announced this newsletter is being sent out, there is proposals for further uncertainty regarding the status of the is not recognised;  Where a Historical Black Economic moratorium notice. job losses, which Empowerment Transaction is recognised, the On a positive note, stakeholders across the may exceed holder is required to top up the Black person spectrum, including the largest, recognised 20 000 direct shareholding from the existing level to a trade unions in the mining industry, have jobs minimum of 30% Black person shareholding spoken out against the actions of Minister within twelve months; Zwane, and there have been widespread calls  Even where a holder of a mining right maintained a minimum for his resignation or sacking. of 26 percent Black person shareholding as at 15 June 2017, the But this of course does not remedy the turmoil which the holder is required to top up its Black person shareholding to a South African Mining sector finds itself in, and large scale job minimum of 30 percent within twelve months from the date of losses loom. publication of Mining Charter 3; While the South African and Tanzanian mining sectors are in  Minimum requirements are specified in relation to turmoil, this does not mean that Africa is uninvestable. procurement, supplier and enterprise development. A holder Africa has a significant and, often, thriving mining and is required to spend a minimum of 70 percent of total mining minerals industry, providing millions of jobs and opportunities. goods procurement spend on South African Manufactured It is also a source of significant foreign direct investment, and Goods, with the 70 percent, being broken down into specified the Mining sector remains a substantial contributor to the GDP requirements. A minimum of 80 percent of total spend on of many African countries with the benefits that this brings to services must be sources from South African based companies, the growth of those economies. with the 80 percent, being broken down, into specified It is likely that demand for certain precious metals will requirements; continue to grow, and that the demand for the so-called  A Foreign Supplier (a foreign controlled and registered “battery metals” will grow exponentially. All of this creates company, supplying the South African mining and minerals opportunities for investors, provided that the investors have a industry with mining goods and services, which does not proper understanding of the various risks that are faced in have at least a Level 4 DTI Code BEE Status, and 25 percent these investment opportunities. plus 1 vote Black ownership) must contribute a minimum The investability of Africa is likely to depend, significantly, on of 1 percent of its annual turnover generated from local balancing the growing need for mineral resources while mining companies towards the Mining Transformation and at the same time, addressing concerns that multi-national Development Agency; companies extract value without returning benefits for the  Employment equity targets are increased, and there are host countries, and ensuring that the vast socio-economic specified requirements from Board level, to core and critical benefits that can flow from mining operations, materialise.

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THE ECONOMIC IMPACT OF TB ON THE MINING INDUSTRY AND SOUTHERN AFRICAN ECONOMIES

I

n a May, 2013 briefing on the economy, President Jacob Zuma stated that, “Our country needs a stable and growing mining industry. Mining has been a key feature of this country’s economy for more than 130 years.” Unfortunately, the tuberculosis (TB) epidemic in the mines of Southern Africa is wreaking havoc on the health of mine workers and reducing productivity, threatening the long-term viability of the region’s mining industry and hampering its ability to remain competitive in the global market. TB case notification among South African miners is more than 10-fold higher than the general population. A significant number of miners are migrants, travelling between their rural homes in neighbouring

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countries and densely populated mining communities in South Africa, enabling the spread of this contagion far and wide. The extraordinary TB burden among miners in Southern Africa is fuelling a broader epidemic of more than 760,000 cases per year throughout the Southern African region. This complex interconnection between health, migration and worker rights is having an enormous impact on the region’s socioeconomic condition. Annual direct TB patient care (treatment and hospitalization) costs the South African government $141 million and costs the mining industry $253 million. The South African mining industry loses $568 million per year in productivity and training due to TB.4 Miners lose $320 million Southern Africa Mining & Energy Review


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per year in lost wages due to TB morbidity. The severity of the TB epidemic and the annual losses of hundreds of millions of dollars highlight the unsustainable future of the mining industry in Southern Africa as well as the dire economic prospects facing the individual mine workers. With mining serving as a regional economic pillar the business case for action is clear. Multisectoral Commitment to Address TB in the Mines Acknowledging the gravity of the TB crisis in the mines, in 2012 the heads of state of the Southern African Development Community (SADC) member countries pledged to confront the epidemic by signing on to the Declaration on TB in the Mining Sector, committing all appropriate legislative and regulatory authority and public health resources to protect miners in Southern Africa from the threat of TB and other occupational diseases. Initiating more appropriate disease surveillance, treatment, and care programs is an essential first step to reducing the harm done by TB to the health and economic wellbeing of the Southern African region. "e SADC Declaration should be applauded for bringing together governments, the mining industry, civil society groups and multilateral institutions to address this regional emergency. However, this effort will not be sufficient in reducing the transmission of TB unless we support the development of better vaccines, drugs and diagnostics for TB. Current Tools are Inadequate for Controlling the TB Epidemic: Research & Development Urgently Needed in a Comprehensive Approach to Address TB in the Mines "e medical tools to combat TB are decades old and have not been effective in curbing the TB epidemic. "e SADC heads of state have been visionary in highlighting their commitment to moving towards zero TB infections, zero TB deaths and zero TB stigma. However, this vision cannot be realized without the development of better technologies to address the epidemic. "e current state of the TB epidemic has become more complex with the spread of drug resistant TB and TB-HIV co-infection, making the public-health risk of unchecked disease an economic and environmental concern as well as a social and moral one. In Lesotho, about 30% of multidrug-resistant (MDR) and extremely drug-resistant (XDR) TB cases are in miners or ex-miners from South Africa. However, these figures likely understate the true burden of MDR-TB as less than one in four cases were detected in 2012 (WHO TB Surveillance Report, 2012). Most worryingly, MDR-TB has gone from being the result of poor adherence to frontline drugs to resulting from primary transmission in a significant proportion of cases in high burden settings. Current treatment options are woefully inadequate in dealing with drug resistant TB – treatment is very costly and takes two years to complete with numerous unpleasant side effects (such as deafness in patients). Current TB R&D efforts include development of point of care diagnostics, regimens that are shorter and effective against resistant forms of the disease, and new TB vaccines that will protect against all forms of TB and be safe for use in people infected with HIV. Increased Investments in TB R&D: A Comprehensive Approach to Combat TB & Increase Economic Viability of the Mining Sector in Southern African Increased prioritization and investments in TB R&D today can accelerate the development and introduction of new vaccines, drugs, and diagnostics, maximizing their public health impact and the benefits that such new technologies can

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accrue to the socio-economic development of the southern Africa region, including ensuring the viability of the mining industry. In addition, there are numerous ancillary but substantial benefits to investing in TB R&D: — New vaccines, drugs and diagnostics are being tested in clinical trials in endemic countries in collaboration with local partners. "ese partnerships build local research capacity by training staff in clinical research and establishing infrastructure needed for international regulatory standard clinical trials. Scientists and research institutions in Southern Africa are playing a lead role in advancing the knowledge and innovation in TB R&D. — TB epidemiology studies, conducted in preparation for clinical trials, increase the diagnosis of TB in communities and gather much needed data on the current state of the epidemic, which in turn helps with the treatment and control of TB and health sector strengthening. — Extensive community engagement in the communities where clinical trials take place through community health education outreach and counseling services lead to increased community awareness and education about TB and TB-HIV in families, schools, and health clinics. SADC governments must prioritize TB R&D in the Declaration on TB in the Mining Sector. "e vision of zero infections and zero deaths can only be realized through a comprehensive approach to combat TB that includes the deployment of current TB treatment and control e#orts as well as prioritization of R&D to develop improved vaccines, drugs and diagnostics.

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Governments in the region must create an enabling and supportive environment through prioritization of TB R&D in national and regional policies as well as through support for R&D e#orts that are currently underway in the region. SADC governments, the mining industry, and civil society groups all have an important role to play in advancing the TB R&D agenda and contributing to a long term solution to TB that can help prevent sickness, save lives, and sustain the economic viability of the Southern African mining sector. Core competencies of the mining industry and the research sector must be leveraged through partnerships to advance the testing of new technologies to combat TB. Mining companies can also collaborate with multilateral institutions and civil society to advocate for TB R&D as a policy priority among national governments in SADC countries. Ultimately, the true bene!t of such commitments is the prospect of contributing to a healthier future for all. For Southern Africa’s mining sector, a healthy, productive workforce free of TB could mean the di#erence between ensuring a competitive industry for years to come or a scenario where cost-prohibitive mining operations lead to the loss of billions in GDP and thousands of jobs. Cross-sector collaboration and public-private partnerships working towards the development of new vaccines, drugs and diagnostics for TB would save millions of lives, improve perceptions regarding the mining industry’s role in the global community, and facilitate economic growth and prosperity for the region. Southern Africa Mining & Energy Review


INVINCIBLE VALVES (PTY) LTD Invincible Valves (Pty) Ltd was established in 1982 and since has grown to a medium sized enterprise located in Knights, Germiston. Invincible Valves prides itself on service excellence and flexibility by striving to enhance our customer’s bottom line.

Valve Sales, Reconditioning & Rubber Lining Stockists of the Inval Range, Babbit, Cla-Val, Insamcor & Saunders

Our 6,500m² facility in Knights is made up of 4,500m² under roof being our stores and workshop. The facility is fully equipped to offer a one-stop resource for valves and ancillary equipment which we transport globally. As an approved supplier to all major industries within South Africa, we maintain expertise and experience across a broad spectrum of industries and applications with a wide range of products. We are Africa’s largest stockist of Saunders & Insamcor products. We offer a comprehensive range of local and imported valves and accessories for the mining, petro-chemical, power generation, water, sewerage and general industries. We have agents in all major centres around the country and service all four corners of the globe. We offer an in-house rubber lining service for valves, pipes, fittings and vessels which is utilized by many of the country’s major valve manufacturers. In addition we offer complete service, repair and valve reconditioning services for all types of valves.

Our Core Values:

We believe in treating our customers with respect. We grow through creativity, invention and innovation. We integrate honesty, integrity and business ethics into all aspects of our business functioning.

Our Mission Statement:

Build long term relationships with our customers and clients, to provide exceptional customer services by pursuing business through innovation and advanced technology.

Our Purpose: P.O. Box 2149, PRIMROSE 1416 Tel: 011 822 1777 / 011 027 1831 Fax: 011 822 3666 Sales: enquiries@invalve.co.za Management: pamdp@invalve.co.za

To be a leader in the Valve Industry by providing enhanced services, customer service and profitability.

Our Vision:

To provide a quality service that exceeds the expectations of our esteemed customers. Invincible Valves is a proud supplier of quality valve products and ancillary equipment backed by service excellence around the globe. It is the combination of these values that allows us to form lasting business relationships.

© Creamer Media 061115CG

33 Shaft Rd, KNIGHTS Germiston

www.invalve.co.za SA Mining & Energy Review Issue 1 2018

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TEL: +27 (0) 11 822 1777 | FAX: +27 (0) 11 822 3666 | EMAIL: enquiries@invalve.co.za | WEB: www.invalve.co.za


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US$ 2.1 BILLION MINING PROJECT RUNS ON CANDY FROM CCS

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he De Beers Group started excavation work on an underground extension to its Venetia Mine in South Africa in 2013. The new development is expected to extend the life of the mine to 2046 and deliver about 96 million carats in diamonds. The US 2.1 billion project is the biggest investment in the South African diamond mining industry in decades and is expected to be in full production in 2025. Around 1500 jobs have already been created in construction. The Company currently operates an open pit mine employing 3731 of whom 1411 are DBCM employees and 2320 are full time contractors providing specific services and skills. The underground project will include employees who transfer from the open pit to the underground mining systems while the future mine will use the current plant to process ore. A project of this scope requires experienced and reliable partners and De Beers assigned the Quantity Surveying and Contract Management to Professional Cost Consultants (PCC), with Murray & Roberts Cementation as the contractor. Similarly, a multi-year endeavour like this requires tight control of costs and all the equipment, parts and labour required through the various phases of the project. To accomplish these goals, Organisations need a reliable and proven project management platform able to effectively and transparently deal with every aspect of the project and provide in-depth reports. For the Venetia project, the Candy Estimating & Project Control Software from CCS Mining & Industrial was chosen. CCSMI is a distributor of Candy to the mining industry and a part of the EOH Group of companies. The software is a multi-faceted, all-inclusive project control solution which caters for different scenar-

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ios and industries. It is also able to integrate and exchange data with a host of common business applications. Joe de Klerk, Managing Director at CCS Mining & Industrial, explains that clients use CCSMI’s software for the full project life cycle, from the feasibility study through to project estimates, project planning and management, right through to completion. It is a 32-bit Windows application and runs on all modern Windows operating systems, either in stand-alone or networked mode, as well as on Windows Terminal Services and Citrix.

Simplified control of complex projects Murray & Roberts Cementation’s Allan Widlake says Candy is a “fantastic estimating tool for large and complicated projects”, as it contains and controls all aspects of the project, saving all parties involved time and avoiding the frustrating miscommunications one often sees on large projects. “Candy is a norm for us,” says Widlake. “There is no job that goes out of this office where Candy is not used. What’s also nice is that Candy has a good record keeping facility that records every change that is made. This assists us to understand changes made to estimates over time and to see who was responsible.” Prenesh Reddy, also with Murray & Roberts Cementation, adds that Candy is a great valuation tool. “We use it for forecasting revenues; it is a very accurate and detailed way of getting that

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done.”

A single platform for the entire project De Beers’ Mining Engineer, Mervin Smit, adds that since all the contractors on the Venetia project were using Candy, De Beers followed suit to ensure everyone was on the same standardised platform. This made project estimation control much easier. Candy can export and import data from many applications, including Excel. Another benefit, attributed to Candy is the speed of the application and the detailed data one can extract from the platform for interrogation and analysis. Detail and transparency was the selling point for PCC says Kyle Kemp, Associate at PCC. As the contract manager, PCC needed a system that offered seamless integration and speedy access to relevant information to ensure everything was on track. Candy is a repository of all project-related information and the designers made it simple to access whatever information is required. Time savings are also impressive in Candy. “We used to spend twice as long checking information as compared to measuring it before we used Candy. Now these times are reversed and PCC is able to spend more time servicing the client constructively rather than checking information. “


The ATNS Aviation Training Academy Delivering world-class courses, producing top aviation graduates

Air Traffic and Navigation Services SOC Limited (ATNS) provides a full range of Air Traffic Services, engineering training, technical support and related training through the ATNS Aviation Training Academy (ATA). Committed to world-best practice, the ATNS ATA uses renowned international and local instructors to deliver the best practical and theoretical knowledge. The ATNS ATA offers a range of courses tailored to suit the needs of ATNS, as well as a series of courses designed for external clients including: • Air Traffic Services o Area Radar Control Rating Course o Approach Radar Control Rating Course o OJTI Course o Train the trainer • Engineering o Introduction to satellite communication systems o Networking o VSAT II: Communication – equipment o DVOR: Thales 432 – equipment • IATA courses o Customer service o Human factors in aviation o Security, risk and crisis management o In-flight security • Long-distance learning through IATA

The ATNS ATA was awarded IATA’s Worldwide Top Regional Training Partner for a fifth consecutive year and is an IATA Premier Circle member.

The ATNS ATA is: • ISO 9001:2008 accredited • Registered on the National Qualifications Framework • Accredited by the Transport Education and Training Authority • The IATA regional training provider for the AFI region • An ICAO Trainair Plus Full Member • An ICAO Regional Training Centre of Excellence

Lesoba 16274

To find out more about the ATNS ATA and for a schedule of all available courses call us on +27 11 570 0400 or visit www.atns.com/ATA. Who is ATNS? Air Traffic and Navigation Services SOC Limited (ATNS) provides air traffic, navigation, training and associated services within South Africa. ATNS is also responsible for Air Traffic Control throughout the African Indian Ocean (AFI) region, comprising approximately 10% of the world’s airspace. ATNS operates from nine ACSA and 12 other aerodromes. As a globally competitive employer of choice, ATNS is committed to diversity and has achieved ranking within the top 10 companies in South Africa with regards to female representation at executive levels.

ATNS IS AN ENTITY OF THE NATIONAL DEPARTMENT OF TRANSPORT

Tel: 0860 286 726

Web: www.atns.com

Email: marketing@atns.co.za


What would have taken me a day or two now takes a maximum of four hours with Candy,” Reddy notes. The Venetia project is one of the bigger more complicated projects around, so I can’t imagine how I would be able to manage it to the same level of detail and with the same speed and accuracy if I didn’t have Candy. Saving time and money A benefit of Candy is that it saves you time, which translates into cost savings at the end of the day. Reddy says that because the Venetia project is so complex, there are four sub-projects in JD Edwards, Murray & Roberts’ financial system. With all the data in Candy correctly coded to the right sub-project, the information is right there and easily available. This is also an example of Candy’s integration capabilities. While the platform provides one reporting framework for the full project, the data is easily split into the four sub-projects, which are then seamlessly loaded into JD Edwards. It is similarly just as easy to take output from JD Edwards and transfer it into Candy. “What would have taken me a day or two now takes a maximum of four hours with Candy,” Reddy notes. The Venetia project is one of the bigger more complicated projects around, so I can’t imagine how I would be able to manage it to the same level of detail and with the same speed and accuracy if I didn’t have Candy.” Added to that, he says the flexibility of the system ensures it can deal with almost any situation and environment. This ability to adapt is crucial in large projects where costs and labour need to be strictly controlled from day one. Data consistency is also something Widlake appreciates. “There is standardisation in the processes within Candy in that you can load something once in terms of worksheets, data files, labour and so on. The system then makes sure that the changes are reflected globally so that everyone is working off the same information immediately. The time saved in this feature alone is incredible when one considers the number of people in different locations using the system daily.” This is only one of the competitive advantages Candy delivers. Widlake adds that another is the ability to provide concise information when queries come through. When asked for clarification after sending an account, for example, Candy empowers Murray & Roberts Cementation to answer quickly and in detail, because Candy stores all the data relating to each step of the project. The Venetia underground project is a complex, multi-year project that incorporates different companies working on different phases at the same time. Using Candy as the main Project Estimating tool (the estimation is a significant portion of the expansion capital) not only assists in producing clear Project goals and helping the management team to not just adhere to them, but to achieve them more accurately and efficiently with more control. It also saves time when it comes to generating accurate reports and keeping administrative chores on track.

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CATERPILLAR PRESENTS BROAD RANGE OF MACHINES, TECHNOLOGY AND SERVICES TO SUPPORT AFRICAN MINING

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SA Mining & Energy Review Issue 1 2018


C

aterpillar will present its unmatched range of innovative technologies and services at Mining Indaba, February 5-8 in Cape Town, South Africa. With a focus on optimizing operations, whether surface or underground, large or small, Caterpillar and Cat® dealers are dedicated to working with mining companies to resolve the issues that are most important to their success. The Caterpillar exhibit will feature digital displays of electric power generation systems, surface and underground mining equipment, and Cat MineStar™ technology capabilities – ranging from vehicle safety systems such as object detection to production systems using semi-autonomous and autonomous machine operation. “Caterpillar is a Gold Sponsor of Mining Indaba, because we and our regional Cat dealers are invested in the African mining industry,” said Michael Latham, region manager for Caterpillar’s mining business in southern Africa. “Our mission is to help our customers succeed by partnering with them to meet the challenges that they face. Through the use of Cat technologies, equipment and support services we can help customers boost safety and productivity while driving down costs.” Barloworld Equipment, the Cat dealer in southern Africa, and Caterpillar will staff the Mining Indaba exhibit with experienced personnel able to provide both technical information and practical insights. Additionally, Cat Financial personnel will be on hand to discuss customized finance – for both projects and equipment – and extended protection solutions designed to keep business moving forward.

Underground mining developments Caterpillar recently announced a number of milestones as new underground mining machines are deployed, a mine development system using leading edge rock cutting technology is tested, and development of a battery-electric underground loader progresses. “Over the past few months we have delivered the first AD22 articulated underground trucks – three of them to Glencore’s Mopani Copper Mines in Kitwe, Zambia,” said David Rea, global director of sales and product support for Caterpillar’s Underground Mining Division. “At 22 tonnes capacity, the AD22 is the smallest underground truck in the Cat line, yet it offers greater payload than competitors’ trucks in the size class. It’s a robust and maneuverable design that will serve well in smaller underground areas.” Regional Cat dealers also recently delivered a number of new R1700 underground loaders, the first of the next generation of Cat LHDs. The new loader is designed to help customers lower cost per ton through increased payload, improved pile penetration and greater breakout force. As a safe and productive alternative to in-cab operation, Cat Command technology enables teleremote and semi-autonomous operation of the new LHD and others in the Cat line. “Caterpillar continues to invest in research and development to address the needs that mining customers voice to us,” Rea said. “For example, testing work continues on our RH55 Rockheader, which is designed to deliver rapid, cost effective mine development using our proprietary rock cutting SA Mining & Energy Review Issue 1 2018

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Our mission is to help our customers succeed by partnering with them to meet the challenges that they face. Through the use of Cat technologies, equipment and support services we can help customers boost safety and productivity while driving down costs. technology. And we recently took our proof of concept battery-electric LHD underground for testing. We are driving forward with new technologies.”

Surface mining technology The extensive line of Cat surface mining machines and technologies continues to evolve as automation grows. Cat MineStar Command now includes systems for autonomous operation of large mining trucks and semi-autonomous operation of dozers and rotary drills. These systems enhance safety, boost production and lower cost per ton. The latest model in the surface mining line is the MD6250 Drill, which is designed for both down-the-hole drilling in hard rock and rotary drilling in softer rock. The blasthole drill does single-pass drilling and multi pass, as well as angle drilling. The versatile drill features proven Cat components and robust design for superior reliability and durability. The MD6250 is also autonomous-ready with MineStar options ranging from remote control to semi-autonomous drilling. Cat Terrain for drilling provides precision guidance that helps operator’s complete patterns accurately and productively. It pays other dividends, too, by improving safety, reducing costs and recording data about drilled strata to aid in planning. Terrain for drilling uses precision satellite guidance to increase pattern accuracy by up to four times. Command for drilling automates the drilling cycle, allowing an operator to manage as many as

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three drills simultaneously.

Power generation When a mining operation needs reliable, continuous power, temporary power, or a combined heat and power solution, Cat generators can deliver. Trusted by the largest mining operations down to the smallest quarries, the Cat team customizes and installs systems for every phase of mining. The generators are engineered to keep mining operations running efficiently, while protecting personnel and the environment. Caterpillar offers the industry’s widest range of diesel, gas and dual fuel generator sets; automatic transfer switches, and switchgear for seamless integration. A recent development is the Cat Microgrid. Cat Microgrids are fully integrated power systems which utilize solar panels, energy storage, monitoring and control systems, in conjunction with any configuration of Cat gen sets, switchgear, and ATS necessary to provide cost-effective power for on- and off-grid applications. Caterpillar and Barloworld are currently installing a 7 MW solar power system at B2Gold Corporation’s Otjikoto Mine in Namibia. The full system, including Cat photovoltaic solar modules and the Cat microgrid master controller, will be used to reduce reliance on a heavy fuel oil power plant currently used to power the mining facility. Barloworld is supplying engineering, procurement and construction services for the project. Southern Africa Mining & Energy Review


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NEW OPTIMISM IN THE MINING SECTOR SEES LEADING SUPPLIERS SIGN UP FOR WEST AFRICA’S PREMIER EXPO

W

BY OUR CORRESPONDENT

AMPEX will be a key focus in 2018 for mining growth across the region followingrenewed commitment from governments and increasing levels of investment Top suppliers have already signed up to be part of next year’s premier mining expo for West Africa, WAMPEX 2018, which is celebrating its 24th year. Following the turnaround in mining commitment from both governments and mine owners over the past 12 months, the expo already looks set to attract a record number of exhibitors. “We are pleased to see that some of the biggest suppliers have already agreed to be part of WAMPEX 2018 and we believe this reflects the increased investment agenda across West Africa,” said Brad Hook, Commercial Director at dmg-ems Africa, the organiser of WAMPEX. “West Africa offers huge opportunities for suppliers as we see the mining sector emerge from three years of reorganisation and streamlining.” WAMPEX 2018 will be held from May 30 to June 1, in Accra,

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Ghana, offering easy accessibility and great facilities for exhibitors and show visitors interested in West African mining “We are forecasting more than 1,400 buyers and decision makers will attend the expo – an increase over our last show,” says Hook. Exhibitor Sunbabsco Ltd is a leading supplier of pump, motor and valves to the sector and has confirmed it will exhibit at WAMPEX 2018, as well as KSB, a worldwide exporter of pumps and dredgers. Mantech Mining Services, one of world’s leading suppliers of hydraulic drills, crawler drills, drilling rigs, drilling bits and pipes, will also be at WAMPEX as will Servaco PPS, whose supply list

West Africa offers huge opportunities for suppliers as we see the mining sector emerge from three years of reorganisation and streamlining.


Company Profile

TRANSNET NATIONAL PORTS AUTHORITY

Transnet National Ports Authority (TNPA) is one of five operating divisions of Transnet SOC Ltd. TNPA is responsible for the safe, effective and efficient economic functioning of the national port system, which it manages in a landlord capacity. Transnet National Ports Authority provides port infrastructure and marine services at the eight South African commercial seaports and operates within a legislative and regulatory environment created by the National Ports Act 2005 (Act No. 12 of 2005). In line with the provisions of the National Ports Act, the core functions of the national ports authority are as follows: • To plan, provide, maintain and improve port infrastructure; • to provide or arrange marine-related services; • to ensure the provision of port services, including the management of port activities and the port regulatory function at all south African ports; and • to provide aids to navigation and assistance to the

manoeuvring of vessels within port limits and along the coast. TNPA’s service offering is targeted at mainly port users (which include terminal operators, shipping lines, ship agents, cargo owners and clearing & forwarding agents). As such, it manages the eight commercial seaports along South Africa’s 2 954-km coastline. These ports are Richards Bay, Durban, East London, Ngqura, Port Elizabeth, Mossel Bay, Cape Town and Saldanha. TNPA’s service offering is divided mainly in two categories: • the provision of port infrastructure; and • the provision of maritime services. Maritime services include dredging, aids to navigation, ship repairs and marine operations. OPERATION PHAKISA In August 2013, the South African president, Mr. Jacob Zuma, undertook a state visit to Malaysia.


includes power transmission gearboxes, generators, invertors as well as products and expertise in grinding, welding and power tools. Former Ghanaian exporter of the year Interplast will show its uPVC & HDPE pipe solutions in Accra and Nezo will be at the show as well with its unique range of services for the mining and oil & gas sectors, from procurement to consultancy, training to logistics as well as its import/export expertise. The African mining sector has seen three years of change but as world commodity prices came out of their slump this year, governments are recognising that mining is a key to future income. For example, in Nigeria, where oil has dominated foreign investment for a decade, its government last month reaffirmed its intention to seek new international partners to boost its under-developed mining sector. WAMPEX 2018 runs alongside the West African Mining &

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The African mining sector has seen three years of change but as world commodity prices came out of their slump this year, governments are recognising that mining is a key to future income. Power Conference, WAMPOC, where senior government and industry heads and influencers discuss policy, legislation, challenges and market developments. The event is endorsed by The Ghana Chamber of Mines, The Ghana Ministry of Lands & Natural Resources, The Minerals Commission of Ghana and The Energy Commission of Ghana. WAMPEX 2018 runs from Wednesday May 30 to June 1 at the


Accra International Conference Centre, Accra, Ghana. After 24 years WAMPEX has become a major forum for the international mining and power industries, a showcase for those exhibitors who will meet key figures from the mining and power sectors, as well as senior government ministers. More details www. wampexghana.com The WAMPOC 2018 conference is organised by dmg-ems Africa in partnership with Events & Projects International (EPI). WAMPEX was acquired in 2016 by dmg events Middle East, Asia & Africa, a wholly owned subsidiary of Daily Mail & General Trust (DMGT), run by dmg-ems Africa. dmg events Middle East, Asia & Africa was founded in 1989 and has operated in the Middle East since 1995 and owns some the region’s biggest shows including The Hotel Show and The Big 5. Headquartered in Dubai, UAE and with satellite offices in India, South Africa and the UK, dmg events Middle East, Asia & Africa

organises more than 80 events across the Middle East, Africa, Asia, North America and Europe. The events attract more than 250,000 customers every year and provide opportunities for trade professionals to do business, network and learn. For more information visit www.dmgeventsme.com DMGT manages a balanced multinational portfolio of entrepreneurial companies, with total revenues of almost $3bn, that provide a diverse range of businesses and consumers with compelling information, analysis, insight, news and entertainment. The company employs more than 10,000 people and is listed on the London Stock Exchange. DMGT aims to provide the highest quality information, insight and services to attractive growth markets in innovative ways, building on a track record of earnings and dividend growth. For more information visit www.dmgt.com

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West Africa offers huge opportunities for suppliers as we see the mining sector emerge from three years of reorganisation and streamlining.

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Southern Africa Mining & Energy Review


PRIORITIZE POWER UTILITIES’’ INTERCONNECTIVITY FOR A STABLE ENERGY SITUATION IN SOUTHERN AFRICA

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Southern Africa Mining & Energy Review


Southern Africa needs to raise its electricity supply significantly to enhance energy access for its growing population and provide the necessary energy for economic growth. Currently, many Southern African nations suffer from unreliable power supply, and the economic cost of power outages is high.

BY BRIAN MUREVERWI

E

fficient and affordable energy infrastructure is a critical input for reducing transaction costs for industry and trade, as well as for improving the economic and social wellbeing of society� The region has great domestic renewable energy potential, which could be used to provide much needed energy in an affordable and secure manner, and to contribute to universal access to modern energy while avoiding negative environmental impacts. A long-term vision is needed to make optimal use of available domestic resources, given the longlasting nature of energy infrastructure. Since different power supply technologies have different operational characteristics that could complement each other, the deployment of renewable technologies cannot be planned in isolation from the rest of the power system, but rather needs to be looked at from the perspective of their integration into the system. Energy projects, by their nature require huge capital outlay, and take a fairly long period to bear fruit. Interconnectivity provides quick solutions. Efficient and affordable energy infrastructure is a critical input for reducing transaction costs for industry and trade, as well as for improving the economic and social wellbeing of society. There is no doubt that energy is vital to development in Southern Africa. Beyond its use in daily life, fuel and electricity catalyze infrastructure projects that drive both regional integration and economic growth. As the SADC region industrializes on its path to improved human development, energy production and distribution will only increase in importance. Recognizing the fundamental role of energy in accomplishing its goals, SADC passed the Protocol on Energy in 1996, which provides a framework for cooperation on energy policy among SADC Member States. The Protocol on Energy acknowledges the importance of energy in pursuit of the vision of SADC of economic well-being and poverty eradication in Southern Africa. In order to best achieve these ends, the Protocol on Energy invites member states to cooperate on energy development, harmonizing policies, strategies, and procedures throughout the region. It also advises that these policies ensure the security, reliability, and sustainability of the energy supply, with member states Southern Africa Mining & Energy Review

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cooperating on research and development of low-cost energy sources applicable to Southern Africa. The region is inundated significant challenges in energy development and usage, as indicated by the following examples: • Only 5% of rural areas in the region have any access to electricity; • SADC falls behind other Regional Economic Communities in Africa regarding access to electricity. While 24 % of the region’s residents have access, 36% of the Eastern Africa Power Pool area’s residents are connected, as are 44 % of the Western African Power Pool’s residents; • The region has been experiencing electricity shortage since 2007. Although this shortage is expected to be corrected by towards the end of 2018, projects intended to address the shortage lag behind deadline due to lack of funding; • Low tariffs, poor project preparation, issues with Power Purchase Agreements, and absent regulatory frameworks stunt investment and financing in the energy sector; • Coal supplies over 60% of power generation in Southern Africa, yet it is considered a contributing factor to global warming; • Weak infrastructure and foreign commitments inhibit use of the region’s abundant petroleum and natural gas resources; and • Pricing and infrastructure hurdles such as grid connections, manufacturing, and quality testing impede development of the region’s renewable energy potential. These factors requires governments in Southern Africa to act promptly, and catch with the rest of Africa. However, there is an emerging challenge to the efforts by governments in supplying affordable and clean energy. That is, over 60% of installed energy capacity is from coal, and this source of energy is famous for its capabilities of emitting greenhouse gases. Climate change continues to be a threat to all forms of livelihoods and economic activities around the world. This refers to on-going trend of changes in the earth’s weather conditions because of an average rise in the temperature of the earth’s surface often referred to as global warming. This rise in the global temperature is due, primarily to increased concentration of gases known as greenhouse gases (GHG) that are emitted through anthropogenic activities. The Southern Africa region is extremely vulnerable, and indicated by the statistics below on installed energy sources:

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The South Africa’s system is dominant in the region, accounting for 80% of the capacity. Country level data by power generating capacity and energy source is as follows: Existing Power Generating Capacity (MW)

SAPP members consist of the national electricity companies from the countries that are members of the Southern African Development Community (SADC). The SADC, operates via a number of legally binding protocols aimed at achieving regional integration and eradicating poverty within the Southern African region. One of the many protocols is on Energy, with the goal, amongst others, for the members of SAPP to create a common power grid between their countries and a common market for electricity in the SADC region. Source: International Renewable Energy Agency

Key figures and facts indicate that Southern Africa installed a total of 15 468MW of new generation capacity in the last 12 years, which gives an annual average of 1 289MW of new generation. Almost all countries will be commissioning new generation plants in the next seven years with a total of 32 479MW new generation capacity. However, the following numbers continues to pose challenges in terms of demand for electricity and generation capacity: • Electricity demand increased by 2.8% in 2016; • Southern Africa Power Pool (SAPP) installed capacity is 61 894MW and operating capacity stands at 46 959MW, against a demand of 52 542M; • Taking into account the generation capacity reserve requirements, the generation capacity shortfall in 5 583MW; and • However, up to 32 695MW is planned to be commissioned between 2016 and 2022, as indicated by the table below. Committed Generation Projects Planned from 2016 to 2022

Southern Africa Mining & Energy Review


As the SADC region industrializes on its path to improved human development, energy production and distribution will only increase in importance

Southern Africa Mining & Energy Review

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It is regrettable to note that only 34% of the available electricity was traded between the SAPP’s member states during 2016, this owing to the lack of transmission and distribution capacity in the region. The challenge is to focus on strengthening the transmission interconnections between the various countries in the region to allow the sharing of the available power. The governments of the Democratic Republic of Congo (DRC), Mozambique and Zambia have received a total of $3.88 million in grants to help fund full feasibility studies, including detailed design and tender documents of two proposed HVDC 330/400-kV transmission lines. The projects have already attracted downstream financing interest from donors in the region and other financial institutions. The two interconnectors are key to developments within the Southern Africa Power Pool (SAPP) network architecture. The table below gives a full picture of the state of play with respect to interconnectivity, both planned and completed. New Cross-Border Transmission Project

The interconnectors will help to create an enabling environment for private-sector participation by assuring a ready regional offtake of power generated. The immediate environmental benefit would emanate from increased use of existing hydropower plants over fossil fuels, crowding out fossil fuels to a large extent, along with increased efficiencies in generation. By helping to direct power from cleaner sources to deficit states, the projects will mitigate risks from climate change-induced droughts as these droughts triggers power deficits and force countries to seek short-term carbon-intensive solutions. The projects directly support the African Union’s Programme for Infrastructure Development in Africa (PIDA). As countries develop plans for achieving electricity self-sufficiency, there is a need to direct more effort and resources to utility interconnectivity as a short-term measure to mitigate further load shedding. About the author: Brian Mureverwi is a Zimbabwean based economist, and can be conducted for comment on brianmureverwi@gmail.com

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Southern Africa Mining & Energy Review


Linatex® hoses Cavex® hydrocyclones Enduron® vibrating screens

Linatex® rubber lining Warman® slurry pumps

We offer you the lowest cost of ownership Weir Minerals is the world leader in the design and manufacture of mine dewatering solutions, slurry pumps, hydrocyclones, valves, screens, centrifuges, crushers, feeders, washers, conveyers, rubber lining, hoses and wearresistant linings for the global mining and mineral processing, sand and aggregate, the power and general industrial sectors. For more information contact us on +27 (0)11 9292600

Minerals weirminerals.com

Copyright © 2015, Weir Slurry Group, Inc.. All rights reserved. WARMAN is a registered trademark of Weir Minerals Australia Ltd.

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Efficient and affordable energy infrastructure is a critical input for reducing transaction costs

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Southern Africa Mining & Energy Review


INVINCIBLE VALVES (PTY) LTD Invincible Valves (Pty) Ltd was established in 1982 and since has grown to a medium sized enterprise located in Knights, Germiston. Invincible Valves prides itself on service excellence and flexibility by striving to enhance our customer’s bottom line.

Valve Sales, Reconditioning & Rubber Lining Stockists of the Inval Range, Babbit, Cla-Val, Insamcor & Saunders

Our 6,500m² facility in Knights is made up of 4,500m² under roof being our stores and workshop. The facility is fully equipped to offer a one-stop resource for valves and ancillary equipment which we transport globally. As an approved supplier to all major industries within South Africa, we maintain expertise and experience across a broad spectrum of industries and applications with a wide range of products. We are Africa’s largest stockist of Saunders & Insamcor products. We offer a comprehensive range of local and imported valves and accessories for the mining, petro-chemical, power generation, water, sewerage and general industries. We have agents in all major centres around the country and service all four corners of the globe. We offer an in-house rubber lining service for valves, pipes, fittings and vessels which is utilized by many of the country’s major valve manufacturers. In addition we offer complete service, repair and valve reconditioning services for all types of valves.

Our Core Values:

We believe in treating our customers with respect. We grow through creativity, invention and innovation. We integrate honesty, integrity and business ethics into all aspects of our business functioning.

Our Mission Statement:

Build long term relationships with our customers and clients, to provide exceptional customer services by pursuing business through innovation and advanced technology.

Our Purpose: P.O. Box 2149, PRIMROSE 1416 Tel: 011 822 1777 / 011 027 1831 Fax: 011 822 3666 Sales: enquiries@invalve.co.za Management: pamdp@invalve.co.za

www.invalve.co.za

To be a leader in the Valve Industry by providing enhanced services, customer service and profitability.

Our Vision:

To provide a quality service that exceeds the expectations of our esteemed customers. Invincible Valves is a proud supplier of quality valve products and ancillary equipment backed by service excellence around the globe. It is the combination of these values that allows us to form lasting business relationships.

© Creamer Media 061115CG

33 Shaft Rd, KNIGHTS Germiston

TEL: +27 (0) 11 822 1777 | FAX: +27 (0) 11 822 3666 | EMAIL: enquiries@invalve.co.za | WEB: www.invalve.co.za


IOT INNOVATION IN SOLAR POWERED MILLING Providing energy to help save 100 billion hours of labour every year for the world’s most vulnerable communities 54


V

illage Infrastructure Angels (VIA) exists to provide rural villages in developing countries with the infrastructure they need to reduce poverty and improve living standards. This includes helping people access electricity for the first time. Eseye, IoT M2M connectivity specialist, has helped VIA to use technology to open a new chapter on how Pay-as-you-go solar technology can be applied in several instances across Africa. We are excited to have such a valuable case study to use as a benchmark and example of the power of our technology solutions. VIA turned to Eseye to deliver highly secure and reliable global cellular network data through its AnyNet Secure™ SIM. The AnyNet technology provides automatic routing onto up to 440 cellular operators in 190 countries and links seamlessly to the AWS Cloud. Smartly designed, technology, finance and IoT also has the capacity to supply power to an entire micro-energy infrastructure, including community assets such as mills. Jeremy Potgieter, Eseye, Regional Head, SADC, says that the VIA project is an excellent example of what can be achieved in Africa, using the same approach: “Pay-as-you-go solar

technology can be applied in several instances across Africa. These kinds of labour saving assets have the potential to free 300 million women worldwide from one hour each day in processing crops, fetching water and collecting firewood. Those collective 100 billion hours every year could be used to generate additional income or to give more attention to other activities such as children’s health and education. “We are now able to measure the daily power generation from solar panels and the daily power consumption via customers. This gives us a complete understanding of whether the service is being over or under-utilised, so we can provision the system accordingly,” says Stewart Craine, Managing Director at Village Infrastructure Angels. VIA, in partnership with the International Renewable Energy Agency (IRENA), and grant support of the GSMA Mobile for Development Utilities Innovation Fund began building projects in Vanuatu in the South Pacific – an area which is often overlooked due to its small size. The mission of the local government is to provide universal access to electricity and communication by 2020, and it relies on initiatives such as the projects built by VIA.

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One such project is the development of solar agro-mills for the country’s main crops, which cannot be eaten without processing. Agro-milling enables women in the area to reduce manual labour through cleaner, simpler, safer and quieter solarpowered micro-milling technology. The mills are leased to local female entrepreneurs using pay-as-you-go financial technology to create an affordable finance package. A mill therefore not only serves the needs of the wider community, it also becomes the entrepreneur’s livelihood. To deliver what the entrepreneur needs to run her business, it is essential that the system includes technology, which effectively measures the DC energy being consumed. Without

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this data, VIA cannot design the system to correctly charge the batteries to work for the length of time required. The system therefore needs connectivity – which is where the power of the Internet of Things (IoT) becomes imperative. Using a SIM card, the data can be automatically collected and sent directly to VIA. Vanuatu has several mobile network operators. A SIM could therefore be used from any local operator, and if the device is being used in an area which has coverage, it will work. The problem however is that no one operator covers the whole area. This means entrepreneurs leasing mills cannot be assured of their connectivity. With Eseye’s help, VIA has used this valuable

Southern Africa Mining & Energy Review


technology to open a new chapter on how pay-as-you-go solar technology can be applied in rural villages. “Devices for any type of business need to be operational 100 percent of the time, without the concerns or barriers caused by data, roaming, billing, management, or support. For organisations such as Village Infrastructure Angels, which is working on projects that can change the lives of some of the most deprived people in the world, this becomes critical,” says Paul Marshall, Chief Customer Officer, from Eseye. The SIM’s enhanced features also enable IoT devices to remotely and securely activate, provision, authenticate and certify devices or ‘things’, in field, over-the-air. Integration with AWS Cloud Services,

further simplifies project set up and deployment by reducing the need for investment in specialist inhouse infrastructure and development resources. By adding AWS’ software tools and cloud the business establishes the means to simply and quickly analyse data and to scale instantly and securely, on demand. “Eseye was tested amongst 15 suppliers – from the UK, to as far afield as Finland, Australia and China. We chose Eseye because it not only had the technical performance, but it was also cost effective. With the Eseye AnyNet solution, all that is required is one single SIM and connectivity to any network is available. This is especially important as we start to deploy the technology in other areas of the world,” concludes Craine.

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“ As part of its safety protocols, Koeberg has an emergency plan, which is tested by means of emergency exercises throughout the year. Emergency teams from Eskom, the local authorities and other emergency services are on 24-hour standby on a continual basis to handle any emergency at the station�

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KOEBERG IS A RESPONSIBLE CITIZEN WHERE SAFETY COMES FIRST

K

oeberg Nuclear Power Station is the only nuclear power plant in Eskom’s fleet of power stations. Located on the West Coast, approximately 30km from Cape Town, Koeberg keeps the South African national electricity grid stable, quietly generating approximately 1860 megawatts day and night. It is the only base load power station in the southern part of South Africa, as the other base load power stations are coal-fired, and closer to the coal mines in the north of the country. The station is the only commercial nuclear power station on the African continent, and is only one of four in the southern hemisphere. Construction of the twin-unit pressurised water reactor (PWR) plant began in 1976, with Unit 1 synchronised to the national electricity grid on 4 April 1984, and Unit 2 following suit 15 months later on 25 July 1985. With the station being in operation for more than 30 years, Eskom has embarked on implementing strategic modifications to ensure its continued safe operation beyond the current 40-year lifespan. Koeberg ranks amongst the safest of the world’s top ranking PWRs of its vintage. The station has received accolades from local and international oversight bodies, amongst others, it’s 18th NOSCAR - the grading of the National Occupational

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Safety Association (NOSA) for safety performance which is in acknowledgment of excellence in Occupational Safety Health Environment and Quality (SHEQ) – and in 2017 the station attained its best peer review rating yet from the World Association of Nuclear Operators (WANO). At the helm of this Koeberg power station is Mr Velaphi Ntuli leading a team of approximately 1500 employees. Velaphi holds a Bachelor of Engineering degree in Electrical from the University of Pretoria, an MBA degree from University of Stellenbosch and a Postgraduate Diploma in Science (Physics, Engineering and Safety of Nuclear Power Reactors) from the

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University of Witwatersrand. He is registered as a Professional Engineer with the Engineering Council of South Africa. He has over 15 years of experience in the nuclear power industry and currently holds the position of General Manager Koeberg Power Station. The National Nuclear Regulator (NNR) provides oversight over Koeberg and ensures the safe operation of the power station by means of inspections and monitoring for adherence to license requirements. The NNR’s main responsibility is to ensure the safety of people, property, and the environment against nuclear damage. To ensure transparency, and to provide members


The station is the only commercial nuclear power station on the African continent, and is only one of four in the southern hemisphere. of the public with confidence in its operations, the station hosts a quarterly Koeberg Public Safety Information Forum (PSIF), which is a platform for Eskom, the NNR, and other key stakeholders, to provide relevant information regarding nuclear safety and Koeberg’s emergency preparedness to residents living within the municipal boundary of Koeberg Nuclear Power

Station. Here, residents may receive and ask for nuclear-related information from the facility. As part of its safety protocols, Koeberg has an emergency plan, which is tested by means of emergency exercises throughout the year. Emergency teams from Eskom, the local authorities and other emergency services are on 24-hour standby on a continual basis to handle any emergency at the station. The nuclear industry is governed by an international body, namely the International Atomic Energy Association (IAEA). South Africa is a member state of the IAEA, which means that Koeberg adopts the IAEA safety standards and practices as applicable and relevant. It is a dynamic environment and its members strive for continuous improvement, driven by institutions such as WANO and the Institute for Nuclear Plant Operators (INPO). Eskom benefits in sharing operating experience of and with the nuclear industry, and participates in peer reviews, training, and technical support missions. Koeberg is an active participant in these programmes, and frequent peer reviews are performed at Koeberg. Major events such as nuclear accidents compel the industry to reassess its current design, plant status, and practices, and realign to include lessons learnt. Koeberg also has mandated a programme of realignment following the Fukushima Dai-ichi incident. Several regulations of the NNR are founded on those of the United States National Regulatory Commission (USNRC), and South Africa therefore compares favourably with international best practice. Koeberg’s performance is top class by any standards - by 31 December 2017, Koeberg Unit 1 had been online for 424 days since returning from a 42-day refuelling outage on 2 November 2016. Koeberg Unit 2 had been online for 221 days since returning from a 37-day refuelling outage on 24 May 2017. Koeberg’s longest synchronised runs (from one outage to the next) is 474 days for Unit 1 from 2 June 2015 until 19 September 2016, and Unit 2 had 492 days from 12 December 2015 until 17 April 2017. By 31 December 2017, Koeberg’s Unit 1 had generated 203 940 gigawatts, and Unit 2 had generated 197 227 gigawatts since first synchronising to the national grid in 1984 and 1985, respectively. The nuclear professionals working at Koeberg are passionate about nuclear safety. They reflect the face of the nation in terms of diversity, with transformation being a driver to ensuring that suitably qualified people are matched with vacant positions following due recruitment processes. The operator pipeline project, also known as Project 100 saw more than 90 people from across South Africa join the ranks of the nuclear professionals working at the station. They are undergoing a comprehensive training programme which will ensure that they are fully qualified to perform all the duties expected of them. The station also recently appointed its first female Senior Shift Supervisor (SSS), who oversees and manages the reactor operators on duty. 2017 also saw the appointment of the first female Koeberg Emergency Controller, who is responsible for the direction of all facets of the on-site emergency response in case of an emergency at Koeberg.

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As part of its safety protocols, Koeberg has an emergency plan, which is tested by means of emergency exercises throughout the year. Emergency teams from Eskom, the local authorities and other emergency services are on 24hour standby on a continual basis to handle any emergency at the station The Western Cape is currently facing its worst drought in 100 years. Koeberg requires an off-site water supply of adequate quality and quantity to ensure that the plant can be operated, and for the reactors to be maintained in a safe configuration with adequate inventory and cooling. It uses water from the cold Atlantic Ocean for cooling, saving billions of litres of fresh water. The station receives all its potable water used on site from the City of Cape Town. As a result of low rainfall over the recent winter seasons, the decreased dam levels can result in the quality of the water worsening, which could potentially make the water unsuitable for use on the station, even before the reserves are actually depleted. Without adequate water supplies, Koeberg will not be able to operate normally, and the plant will have to shut down. With the station requiring vast amounts of water, and in order to alleviate the pressure on the City of Cape Town’s supply of water to its citizens, the need for the construction of a desalination plant at Koeberg was identified in light of the current water crisis being faced by the region. However, as this is a long-term project, and in order to mitigate the risk, Koeberg instituted a project to convert ground water to water suitable for use on the station. Koeberg recognises that an alternative water supply does not eliminate the need to save our precious water resources, and as such, has implemented a water saving strategy which includes the reduction of water use, water storage, and emergency response (which includes trucking in water from other areas). Koeberg’s total water usage has reduced significantly and the water savings are monitored on a weekly basis. These savings provide confidence in Koeberg’s ability to achieve efficiency in water usage, and to be prepared when the City of Cape Town cannot supply water. Koeberg Power Station is run by South Africans from all walks of life, races, and socio-economic backgrounds, which creates the desired socio-economic dividend for South Africa. Koeberg’s support for localisation is evident in its procurement processes and local spending. Koeberg has proven its value to the South African economy several times over. Not only does the power station ensure security of supply to the Western Cape, powering the businesses in the region, but by supporting supplier development and localisation (SD&L), it ensures that nuclear skills are transferred to South African individuals and businesses. Furthermore, by investing in community projects which promote Mathematics and Science, it is ensuring that there is an interest and skills base for the growth and development of the country. Koeberg has been contributing to the Western Cape’s (and subsequently to the South African) industry and economy for

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Velaphi Ntuli Koeberg Nuclear Power Station Manager. over 30 years. The electricity produced by the power station supplies 50% of the Western Cape, and supports various industries, including manufacturing companies. The net current effect on our country is the low cost of production with a very high gearing on the job economy, as well as the economy in general. Koeberg has contributed to job creation, infrastructure development, community development, and transformation. As a responsible corporate citizen, Corporate Social Investment is a focus area for Koeberg, with numerous projects being undertaken in and for the benefit of the communities surrounding the power station. With plans on track for additional nuclear power stations to be built, Koeberg’s nuclear professionals are proudly waving the flag for the country’s nuclear ambitions. Additionally, people living around the power station and visitors to the Western Cape are able to enjoy walks, rides and picnics at the Koeberg Nature reserve. Koeberg meets South Africa’s socio-economic needs in a sustainable manner. Southern Africa Mining & Energy Review


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Southern Africa Mining & Energy Review  

The publication offers timely, intelligent and relevant information Mining, Energy and Construction in the Africa. Africa provides interesti...

Southern Africa Mining & Energy Review  

The publication offers timely, intelligent and relevant information Mining, Energy and Construction in the Africa. Africa provides interesti...

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