SA Mining May/June 2024

The

Cloud

TDIGITISATION IS THE FUTURE OF MINING

True digital transformation in the mining sector will bring about a step-change in mines’ decision-making abilities, cost efficiencies, and productivity.

Rodney Weidemann

here can be little doubt that the implementation of digital technologies in mines – including the current hot topic, artificial intelligence – can play a big part in driving productivity, improving safety, and ensuring environmental stewardship.

In our main story, we look at digitisation’s potential to enhance decision making, and how real-time data allows for the swi identification and rectification of operational ine iciencies. This, in turn, leads to cost savings and increased production rates, while the use of predictive analytics to anticipate equipment failures before they occur reduces downtime and maintenance costs.

At the same time, such entities also need to be well aware of the dangers of cyberattacks – including phishing, ransomware, malware, and financial scams – meaning that cybersecurity today is also a significant concern for global mining operations.

On a similar note, water infrastructure managers who want e icient and sustainable operations, and end-to-end views of their operations, are finding that cloud technologies can help them to reach these goals. Leveraging the cloud – a key aspect of digital transformation – allows them to optimise operations and ensure potable water, through predictive maintenance, real-time alerts, and remote management.

Another ongoing concern in the industry is that of environmental, social and governance (ESG) implementation and execution, particularly in light of the fact that the European Commission’s adoption of the Corporate Sustainability Reporting Directive (CSRD) is likely to impact the local mining sector in ESG terms.

The CSRD’s objective is to establish consistent and congruent ESG reporting, and requires extensive and detailed disclosures about how sustainability issues a ect a company’s business, as well as the impact of its activities on society

and the environment. This is something mines that do business with European customers will certainly need to take cognisance of.

In a related vein, sustainable financing is critical to Africa’s economic and social development, as it can be the driver of global decarbonisation solutions, while also providing clean energy investments on the continent. Moreover, overlaying sustainable financing with traditional financing requirements can serve as a mechanism to increase mining companies’ access to capital.

Speaking of clean energy, we also feature a Q&A with John Ciganek, MD of Vanadium Resources (VR8), about the value of this metal, both to the steel alloy industry, and as a key metal in the growing battery storage market.

Meanwhile, the latest World Gold Council report indicates rising demand for gold, stimulated by emerging market – rather than developed world –purchases. This is interesting, as in the past, prices were generally determined by traders in the US and Europe. This latest report demonstrates that emerging markets are clearly playing a larger role in driving the gold price than in past years.

From an African perspective, there was a drop-o in mergers and acquisitions (M&As) activity in 2023. This was attributed, at least in part, to regulatory uncertainty on the continent, which has hindered M&As in the mining sector. The good news is that analysts’ expectations are that 2024 will see an upward trend.

Finally, in our cover story, we consider a key imperative of mines, which is to ensure the availability, reliability and operability of capital equipment assets. Komatsu Mining Corp. points out how mechanical failure in mining equipment leads to downtime that impacts profits, and how maintenance contracts are designed to help mines avoid such challenges. Happy reading!

EDITOR

Rodney Weidemann

Tel: 062 447 7803

Email: rodneyw@samining.co.za

ONLINE EDITOR

Stacey Visser

Email: vissers@businessmediamags.co.za

ART DIRECTOR

Shailendra Bhagwandin

Tel: 011 280 5946

Email: bhagwandinsh@arena.africa

ADVERTISING CONSULTANTS

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Email: neeshak@sahomeowner.co.za

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Andrea Bryce

BUSINESS MANAGER

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ZAMBIAN LEAD POISONING CLAIMANTS APPEAL CLASS ACTION AGAINST ANGLO AMERICAN

The Johannesburg High Court has granted permission to appeal an earlier ruling denying class action certifi cation for 140 000 women and children in Kabwe, Zambia.

Recently, in a crucial step towards achieving justice for the 140 000 children and women who alleged lead poisoning caused by a former Anglo American operation in Kabwe, Zambia, the Johannesburg High Court granted permission to appeal an earlier judgment that dismissed certification of the class action.

In granting permission, Justice Leonie Wendell found that an appeal against her earlier judgment had “reasonable prospects of success on at least one ground of appeal” and that there were “compelling reasons to grant the appeal, as class action law is still being developed in South Africa”.

The judge added that there were “current matters of law of public importance which directly implicate constitutional rights”. The Kabwe claimants will now take their case against Anglo American South Africa (AASA) before the Supreme Court of Appeal of South Africa later this year.

This is a major step forward in the longstanding lead poisoning class action claim against AASA, a wholly owned subsidiary of London-headquartered Anglo American Plc. The December judgment e ectively blocked access to justice for the people of Kabwe.

Kabwe was an Anglo American mine from 1925 to 1974. The evidence submitted to the court by the claimants in support of this

claim is clear. From the early 1970s, reports by the mine doctors showed that several children had died of lead poisoning from the mine, and many children in the local communities were su ering from massive blood lead levels.

There were compelling reasons to grant the appeal, as class action law is still being developed in South Africa. “ “

Experts for the claimants also contend that the stability of lead in the environment was well known by the 1960s, and that the risk of lead poisoning to future generations should have been foreseen by AASA if the environment was cleaned up. The claimants allege that on economic grounds, AASA failed to heed advice from international experts in 1970 that the topsoil should be replaced. However, AASA argues that it adhered to

standards that were acceptable in the 1970s, that the risk to future generations were not foreseeable, and that the company was therefore not liable to current inhabitants of Kabwe.

The class action was filed in South Africa, as it would not have been possible for the claimants to obtain access to justice in Zambia. Amnesty International and numerous United Nations (UN) agencies intervened at the certification hearing, to argue that AASA’s opposition to the class action was contrary to the UN Guiding Principles on Business and Human Rights, AASA’s own human rights policy, and publicly stated human rights commitments.

The Kabwe claimants are represented by law firm Mbuyisa Moleele Attorneys, with Leigh Day acting as consultants. In a joint statement, Leigh Day partner Richard Meeran and Mbuyisa Moleele founding partner Zanele Mbuyisa said: “Anglo American’s arguments refuting its responsibility indicate a shocking indi erence to the tremendous and ongoing harm caused to generations of the Kabwe communities by its operations.

“This is a concerning stance from a company that claims to be ‘re-imagining mining to improve people’s lives’ through its FutureSmart Mining initiative. It is also in stark contrast to the human rights principles to which AASA claims to subscribe, as set out in their group policies.”

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MINING MATTERS TO ALL SOUTH AFRICANS

Minerals Council SA highlights the relevance and impact of mining to the economy, employees and communities, both now and into the future.

South Africa’s mining industry matters for its employees and their families, communities and the country. It is a vital cog in the South African economy, and it can deliver greater positive shi s and grow its impact at home and abroad.

“Its benefits are seen through the national economic gain from taxes and royalties, the social impact through the provision of jobs, wages and benefits, investments in education and training to employees and communities, and the development of social projects and infrastructure. And in the provision of the critical minerals to supplement our health and wellbeing.

“In fact, the mining industry consistently upholds its side of the social bargain and plays a meaningful, and at times an unappreciated, role in our economy,” says Mzila Mthenjane, Minerals Council South Africa (MCSA) CEO.

Launching its information-sharing initiative, #MiningMatters, he noted that the mining industry, over 130 years old, still had much to o er as a good corporate citizen, and in playing its part in the just and green transition to a low-carbon future.

Members of the council and the wider mining industry are actively involved in their host communities to improve lives and livelihoods primarily through their social and labour plans. These include investment and developments in schools, healthcare facilities and infrastructure projects, bursaries, and directing procurement spending to new entrants and suppliers, to establish start-up businesses and to spread mining’s economic benefits.

SOCIAL DEVELOPMENT

A survey of one year of reports from 12 MCSA members, across five commodities

– gold, PGMs, coal, diamonds and iron ore – and representing about 60% of formal employment in the mining industry, indicates these players spent R2.3-billion on socio-economic development, focused largely on education and health.

In addition, the companies surveyed spent R5.1-bn on training and development in a single financial year, with an estimated value of between R13 500 and R21 700 per full-time employee across the various sectors.

The mining industry consistently upholds its side of the social bargain and plays a meaningful, and at times an unappreciated, role in our economy. “ “

The mining industry was also one of the few formal sectors to grow employment in 2023, adding more than 7 500 jobs, while wages increased by R12bn to R186.5bn, supporting the lives and livelihoods of employees and their families in a di icult economic climate.

Based on the survey, the assessed companies employed 36 480 women, representing 19% of full-time sta , with coal,

iron ore and diamond producers having the largest numbers of women (29%, 26% and 24% respectively). Women employed by the gold and PGM companies in the survey accounted for 18% of the workforce.

This survey infers that the industry as a whole employed 90 630 women in 2023, comprising 19% of the total full-time workforce, a noteworthy progression from the previous 15% in prior years. According to the survey, women accounted for 25% of management in the companies assessed.

LONG-TERM INVESTMENT

The sector increased total taxes (company tax paid, royalties and PAYE by mining employees) by R9bn, or 7%, to R135bn for the intended benefit of all citizens. The MCSA’s initiative highlights the industry’s contribution to the country, to employees, and to communities.

“Mining is a long-term investment play, through market and economic cycles. It is imperative that there is a stable and predictable environment in relation to factors that can be controlled, such as legislation and critical and enabling infrastructure. Within such an operating environment in SA, mining is a growth industry that can perform to deliver on many expected areas of society.

“Our industry’s future, and its ability to continue to ensure that #MiningMatters to all of us, depends on the willingness and commitment of the people of Mzansi – including government, employees, communities and mining companies – to collaborate.

“We need to create a conducive policy, legislative and operating environment, which will shi the economic potential of the mining sector to performance and delivery for the benefit of all South Africans,” says Mthenjane.

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CUTTING DOWN

ON DOWNTIME

Mechanical failure in mining equipment leads to downtime that impacts profi ts. This is why maintenance contracts – especially outsourced ones – are so critical.

There is little doubt that a key imperative for mines is to ensure the availability, reliability and operability of capital equipment assets, through the implementation of e ective maintenance methods and strategies.

The nature of these operations is such that mechanical failure in equipment leads to downtime that can ill be a orded in today’s economy. This is why maintenance – and in particular, the outsourcing of this function –has become more crucial than ever.

The mining industry has certainly undergone numerous changes in the past three decades, when it comes to outsourced maintenance, suggests Ryan Gaylard, marketing, sales and service director at Komatsu Mining Corp. (KMC).

“The outsourced maintenance concept really began in the late 1990s, when early adopters of the concept found that by handing over the maintenance function of mining equipment to the manufacturers, they were able to focus on their core

business activities instead,” he explains.

“Today the focus has evolved and is now placed on asset management, which is essentially the management of the capital asset over its complete life cycle, from procurement – or even design, as in KMC’s case – through to disposal. This process includes critical elements such as remote monitoring and productivity improvement.”

REMOTE MANAGEMENT

When it comes to the concept of life cycle management (LCM), Gaylard says such agreements can take on various forms, from simple technical assistance when required, all the way to a full LCM agreement in which the outsourcer takes over all the asset management functions.

“The simplest form of agreement is onsite technical assistance, which is merely supplementing the customer’s maintenance capability. This usually occurs when the customer already has well-established equipment management systems, processes and teams.”

Another common agreement is one in which KMC conducts the scheduled, planned and preventive maintenance, with the customer only having responsibility for unscheduled repairs, he says. “At the other end of the spectrum, there is the full maintenance contract, in which KMC performs all equipment management duties.”

To this end, he continues, KMC is a world leader in real-time remote asset monitoring, thanks to its Joy Smart Services Centre. He explains that not only are machine parameters monitored in real time around the clock, but also safety criteria such as dust and methane, along with production metrics.

“This gives our smart services team unique insight into the various elements that impact production, safety and reliability, all of which form part of KMC’s agreements. Moreover, in order to provide cost predictability, these agreements can be costed on a ‘cost per tonne’ basis, thereby aligning both parties’ objectives.”

Joy continuous miner loading Joy shuttle car.

Your mining operation is unique. By opting for Joy equipment, our team of experts and engineers will work closely with you to customise its design according to your specific needs and applications. We provide comprehensive support throughout the entire lifecycle of your machine through on-demand field service, remote monitoring and condition monitoring programs. We aim to help you transform and enhance efficiency and responsiveness to changes and challenges within the mining sector.

SKILLS AND TRAINING

Mining and maintenance requires people with unique skills, although the reality is that these skills are in short supply, across both the industry and the globe. Without these skills, mining simply cannot be as e icient as it needs to be in order to remain cost-competitive.

Komatsu has invested hugely in this space, notes the company’s Ryan Gaylard, both in terms of technical skills and operator and productivity training.

Joy continuous miner.

Technology is a critical lever in moving operations forward, and the insights these maintenance programmes provide are invaluable. “ “

MACHINE REBUILDS

Even the best mining machines in the world need to be rebuilt periodically, notes Gaylard, pointing out that KMC follows an asset management strategy that incorporates these periodic rebuilds. The challenge, he says, is knowing when to perform the work and how to manage the costs of the rebuild.

“KMC’s strategy is to perform lower-cost interventions between major rebuilds, as this keeps the machine’s mean-time between failure up. On scheduled rebuilds, a condition-based approach is followed, meaning that only those items that need to be replaced are actually replaced.”

A reliable machine is a safe machine, he says, and limiting the amount of work required to keep a machine running “limits the number of man-hours spent working on the machines, which naturally reduces risk further”.

KMC also rebuilds back to its own standards, and one of its major strengths is that its engineering and development is done in-country. Rebuilds are performed right next to the company’s manufacturing facility, so any design or safety matters can be addressed in real time by engineers who are familiar with relevant conditions.

KMC was one of the first original equipment manufacturers (OEMs) to develop remote monitoring technologies in the underground coal mining space, he says. The company has since invested heavily in this area, with a state-of-the-art monitoring facility, which supervises the fleet around the clock.

“The machine’s health is recorded in real time, and pertinent data is monitored, along with extremely important safety data, such as dust and methane. In a case where the set parameters are breached, customers are notified immediately.”

EQUIPMENT HEALTH

“We also monitor a lot of production data. KMC has dedicated teams constantly developing and refining how to use this information, in order to provide not just detailed reports, but also specific advice on maintenance and productivity issues.”

He says knowing the health of the equipment gives customers an extremely valuable commodity – namely time to take action to correct an issue before something catastrophic happens. This kind of proactive action can also greatly reduce or eliminate downtime. Furthermore, measuring safety parameters in real time leads to a safer workforce.

“All of this insight, along with technical expertise, is brought to bear in our Good To Excellence programmes. Here, we work with our customers to improve specific aspects of their operations – be this reducing downtime, optimising cutting, or any other area of concern.”

The key to a successful outsourced maintenance agreement, he says, is to partner with a supplier that understands your business and is willing to mould a solution to your requirements. Too o en, suppliers have solutions that are looking for problems, forcing customers to make decisions based on what is available, rather than what fits their business strategies.

“Technology is a critical lever in moving operations forward, and the insights these maintenance programmes provide are invaluable. For KMC, however, the key is to remember that this is ultimately a business of people. Our role, then, is to ensure that the right people have access to the right information, at the right time, and can leverage suitable training and experience to do the right thing with it.”

In conclusion, Simon Andrews, the company’s VP for So Rock (Africa), notes

“We have a comprehensive training facility with actual machine systems that allows for the simulation of these systems and potential faults, all of which is facilitator-led. Komatsu has also invested in a mobile technical training van, which is fully equipped to provide hands-on training on our customers’ sites, thereby reducing the cost of training.”

He says training needs can be determined by a means of skills assessments, and doing this means that training can be carefully targeted, rather than the traditional scattered approach, which brings down costs and increases e ectiveness.

“Finally, operator training is done by means of simulators, and virtual reality is the ideal solution to improve training in this space, as this technology adds greater levels of realism to the training,” he says.

that Komatsu Joy is committed to supporting its customers in achieving the lowest cost to mine, safely.

“This is paramount, if our industry is to succeed in an ever changing and challenging environment. We will be working with all stakeholders to ensure that all parties’ requirements and ambitions are met. We believe in using technology, as well as our inherent knowledge – not only of our products, but of the industry as a whole – to provide meaningful input that makes our customers’ business more e icient. This translates to mining at the lowest cost.”

On-site customer training.

WILL 2024 SEE AN UPWARD TREND IN AFRICAN M&A ACTIVITY?

Following a drop-off in mergers and acquisitions activity in 2023, expectations are that 2024 will see an upward trend.

With the uncertainty in global markets and rising cost of capital, investors have become increasingly cautious when it comes to what deals they do, and the terms of such deals. Furthermore, increased caution and risk aversion has led to deals taking longer to close, as due diligence and negotiations have become protracted in most cases.

According to global law firm Herbert Smith Freehills (HSF), the big secular themes continuing to drive mergers and acquisitions (M&A) in the medium term are no less pressing: the need for capital investment in infrastructure; digital transformation; energy transition and the attention on critical minerals; and the environmental, social and governance (ESG) imperative.

According to Rudolph du Plessis, a partner at HSF, M&A activity in Africa experienced a sharp decline in 2023 when compared to 2022. Key factors that contributed to the slowdown in M&A activity in 2023 included rising inflation, the increased cost of capital, and the major geopolitical events and general uncertainty a ecting global markets. These factors have impacted M&A globally, with Africa being no exception.

“This has definitely impacted Africa negatively. Due to inflation, many private

equity investors find they have less capacity for transactions due to both cost and the simple fact that transactions on the continent tend to take longer to complete, as more time is generally spent on due diligence,” he says.

“These conditions apply to the African mining sector in the same way as they do in others, although the regulatory uncertainty that hobbles the continent makes investors more wary of committing major investment to these markets.

“While mining companies tend to operate in emerging markets, and thus are generally more robust, investors still want to know what the conditions will be when they push for a deal, so regulatory uncertainty has certainly hindered M&As in this sector.”

OUTLOOK FOR 2024

In the second half of 2023, inflation started cooling. The hopes are that in 2024, inflation will continue to ease and stabilise. In South Africa, the SA Reserve Bank raised the repurchase rate (repo rate), being the rate at which private sector banks borrow rands from the SA Reserve Bank, by 1.25% (from 7%-8.25%) over the course of 2023, in order to combat inflation.

This was a continuation of the rate hikes experienced in 2022 and in aggregate means the repo rate has increased by 4.5% since the

2023 HIGHLIGHTS

In South Africa, some highlight transactions for 2023 included:

■ Bunge’s acquisition of a 50% stake in Viterra from Glencore, with Glencore taking a 15% stake in the merged Bunge entity, with an estimated deal value of US$4.1-billion.

■ Tempur Sealy’s acquisition of a 45% economic interest in Mattress Firm from Steinho International for an estimated deal value of US$4bn.

■ The ABSA and CSI and Sta Trusts black economic empowerment transaction with an estimated deal value of US$11bn.

beginning of 2022 (from 3.75% to 8.25%).

There are hopes that there will be a cooling of inflation, along with rate cuts in 2024, which would then create a more favourable environment for investment and more market and M&A activity.

“The expectation is for an upward trend in 2024, and there is strong potential for M&As to take place on the continent driven by African-led investments – such as SAbased companies investing in other African countries – and a number of provident and wealth funds which may also play a role in driving this trend upward.

“It is also worth noting that an increasing number of businesses are seeking opportunities in the renewable energy space, or from an ESG perspective, adding to the factors that may drive an improvement in 2024,” says Du Plessis.

ALPHA RESOURCES

TACKLES THE CHALLENGE OF GOING GREEN

Despite focusing on the coal sector as its core business, Alpha Resources has recognised the need for – and begun moving towards – a more environmentally friendly approach.

As a company with a core focus on coal procurement and mining project development and services in South Africa, Alpha Resources actively acquires coal exploration rights in strategic South African coalfields. The company is also continuously identifying and assessing potential coal projects, with a view to investing in these.

Beyond leveraging its highly skilled team’s collective experience and expertise in the coal mining industry, it has established partnerships with innovative beneficiation plants. This allows the business to properly handle coal to meet industry standards, while enhancing the quality of the coal extracted, ensuring superior e iciency across an array of industries and markets.

Naturally, being a coal-focused entity, Alpha Resources has some pertinent views on the global shi towards renewable energy, according to its founder and CEO, Selim Kaymak.

“The growing focus on going green and eliminating fossil fuels from the global energy basket is obviously a hot topic of discussion among coal miners. As one of

the entities in this space, Alpha Resources acknowledges the global shi and increasing growth in renewable sources, but also notes that coal remains a strong player in the global energy landscape,” he says.

TRADITION VS TRANSITION

Kaymak says in 2023, coal formed around 38% of the global power generation mix, and remains the largest single source of generation capacity. Its local impact is even greater, as the South African energy sector remains predominantly coal-focused. The country’s need for a ordable and reliable generation, which is crucial for economic development, continues to be unambiguously linked to coal.

“While much is happening globally in terms of energy transition, South Africa remains dependent on coal not only from the perspective of energy, but also socioeconomically. Remember that there are around 90 000 people directly employed by the coal industry in the country.

“Thus, although renewable energy is the desired goal, the actual transition to this phase is a process that needs to be properly

managed – and while this is happening, the use of coal and its attendant socioeconomic challenges must be carefully considered.”

Historically, Kaymak explains that SA produces around 300 million tonnes of coal per annum, with some 85 million to 100 million tonnes going to the export market. He says SA coal is one of Europe’s desired coal sources, and that the country has established itself as a supplier of consistent quality to these global markets.

“However, as Europe has begun to focus on renewable energy implementation and regulation, so suppliers like Alpha Resources have had to find other markets for their products.

“Since SA coal exports are based on global market requirements, and as Europe has focused on renewables and e orts to reduce fossil fuel use, there has been a significant drop in supply to this particular market. To overcome this challenge, we have focused on market diversification.”

He says there are six or seven regions demanding SA coal, so although Europe’s demand has been reduced, there are other

South Africa remains dependent on coal not only from the perspective of energy, but also socio-economically. “ “

developing markets that still have high coal requirements. These include India, the Middle East and South East Asia, which can help to replace the shortfall from the Western market.

In these new markets, he says, coal o ers reliability of energy supply, and SA’s coal is of a consistent and excellent quality.

Kutay Kuter, Alpha Resources’ general manager for SA, says new markets and new opportunities especially are the company’s route to continued success.

“For us, it is about adapting to new demands, and the requirements of these new markets, so that we can best serve these regions. Alpha Resources is always actively looking for new ventures, and remains focused on providing the best quality products to its clients, wherever in the world they are.”

THE CARBON CHALLENGE

Kaymak says one way to overcome the challenge of being a fossil fuel supplier in an increasingly environmentally focused world is to implement carbon credits.

“This is a key development in global trade markets, one which o ers financial incentives to help organisations to reduce their greenhouse impacts, based on their emission levels. Essentially, it is about reducing our carbon footprint while still operating in the coal segment.

“There is also a strong focus on carbon capture projects, which are means by which we can help mitigate greenhouse gas emissions. This is done by allowing businesses to invest in alternative projects that are considered green, or to undertake projects that capture carbon from the atmosphere.”

Alpha Resources makes e orts to

WHAT ARE CARBON CREDITS AND OFFSETS?

Essentially, the aim of carbon credits is to limit the emission of greenhouse gases into the atmosphere. Those businesses that pollute are awarded credits that allow them to continue to pollute up to a certain limit, which is reduced periodically.

At the same time, the organisation can sell unneeded credits to another company that may need them. This means the private sector is doubly incentivised to reduce greenhouse emissions, as they need to spend money on extra credits if their emissions exceed the cap, while they can simultaneously make money by reducing their emissions and selling their excess allowances.

Those in favour of such a system say it leads to measurable, verifiable emission reductions from certified climate action projects, and that these projects reduce, remove, or avoid greenhouse gas emissions.

Carbon credits have risen in popularity so much that late last year, the Johannesburg Stock Exchange (JSE) launched the JSE Ventures Carbon Market. This is a trading platform that enables the buying or selling of carbon credits and renewable energy certificates held in local or global registries.

invest in projects such as renewable energy implementations, energy e iciency improvements, and even carbon capture and storage projects – such as reforesting e orts – to o set its carbon footprint and help contribute towards climate action.

“It is essential for credible entities to develop strong regulatory frameworks, overseen by international and local authorities, to ensure the legitimacy of these operations. In order to enhance transparency, accountability and trust, it is vital to establish a framework for inclusive, green growth,” he says.

“This in turn will require closer

We are also looking into other markets, such as mining the various base metals and battery commodities associated with the renewables sector. “ “

cooperation between local and international authorities, and as more nations begin to participate e ectively in this approach, so we can continue to strengthen it further.”

As a coal business, notes Kaymak, the company will have to focus and strategise short-, medium- and long-term plans around this. Alpha understands that as a fossil fuel business, the company is under the spotlight in terms of what it does.

“To this end, we need to redesign the future of the organisation – here we have the advantage of being a business that sits under the mining banner, but also falls within the energy sector.

“Therefore, while we remain focused on maintaining our coal presence, we are also looking into other markets, such as mining the various base metals and battery commodities associated with the renewables sector.

“Furthermore, on the energy side, we are looking at a variety of renewable energy investments. These will potentially be in the solar space, although we are also considering independent power producer-type investments.”

He points out that the world is changing rapidly, and that traditional business practices also have to evolve. Since coal mining is a traditional business, it too has to evolve to deal with changing technologies and increasing environmental concerns. He feels that Alpha needs to be more innovative, in order to maintain and sustain its business, while at the same time expanding into new areas of diversification.

“From an operations perspective, we remain a responsible mining house that consistently works to be top of its game. This means building e iciency into our operations, while at the same time trying to limit our environmental impact, by investigating any innovation we can adapt into our business model to reduce this.

“Alpha Resources takes these environmental concerns seriously, to the extent that we understand the importance of diversifying into greener industries. This is a future that is closer than we think, which is why we are determined to drive a strong focus on the green energy sector –

CARBON CAPTURE SOLUTIONS

Carbon sinks: These are vast spaces where the natural habitats capture CO2 from the atmosphere. These include forests, oceans, grasslands and wetlands. It has been recognised that the preservation and cultivation of carbon sinks could increase the amount of carbon taken from our atmosphere in the shortest space of time.

Underground storage: This involves capturing excess CO2 and storing it underground in natural structures of porous rock, such as deep saline reservoirs, basalt, or depleted oil or gas wells. This is called carbon capture and sequestration, and CO2 can be injected into these and stored permanently. In fact, saline aquifers have the largest identified storage potential among all other forms of engineered carbon capture solutions. Giant air filters: China has developed experimental commercial air filters –huge towers designed to clean air of pollutants on a massive scale. A tower in Xian has reportedly been cleaning more than 353 million cubic feet of air each day. These giant air towers purify air by drawing it into glass rooms, which are heated using solar power creating a greenhouse e ect. This hot air is pushed up the tower through a series of filters, before being released back into the atmosphere as clean air.

– Source: www.nationalgrid.com

via renewable investments and carbon capture solutions – in order to ensure our business remains strong, through all the industry vagaries, well into the future,” says Kaymak.

THE RISE AND RISE OF VANADIUM

SA Mining talks to John Ciganek, MD of Vanadium Resources (VR8) about the value of this metal, both to the steel alloy industry, and as a key metal in the growing battery storage market.

Q: WHY IS VANADIUM SUCH AN IMPORTANT METAL, AND WHY DOES ITS SCARCITY IN NATURE MAKE IT SO VALUABLE?

A: Vanadium is a vital element driving sustainable advancements in various industries, including making steel alloys of particular strength for the creation of tools, axels, piston rods and girders in construction equipment.

Recently, there has been a push to use vanadium in battery storage. Vanadium has unique oxidative states that make the metal amenable as an electrolyte, without other compounds being required in the chemistry of the battery. This helps with reusing the electrolyte multiple times over, even if the battery infrastructure has deteriorated.

The vanadium redox flow battery (VRFB) is a type of rechargeable flow battery that employs vanadium ions as charge carriers. For several reasons, specifically their large capacity and depth of drawdown, VRFBs are primarily used for grid-scale energy storage, where they are attached to power plants and electrical grids.

Q: WHAT ARE SOME OF THE CHALLENGES FACED IN MINING THIS METAL, AND WHAT’S THE CURRENT STATE OF THE INDUSTRY IN SOUTH AFRICA?

A: Historically, one of the main challenges for vanadium has been the price volatility and it being largely usable as part of an alloy to lend strength to steel, which changed with the advent of VRFBs.

Going forward, commodity analysts are forecasting a substantial demand for vanadium pentoxide as VRFBs gain popularity. For now, the demand sits at 200 000 tonnes per annum (of vanadium pentoxide equivalent), with the forecast expected to reach 300 000 tonnes by 2033, based on demand from VRFB production. Vanadium Resources Limited (VR8) is well on track to be in full production by 2027, and will be ready to service this expected upli in market demand.

Q: SOUTH AFRICA IS KNOWN TO HAVE A SIGNIFICANT AMOUNT OF VANADIUM. HOW MIGHT THE COUNTRY BEST LEVERAGE THIS ABUNDANCE TO BOOST ITS ECONOMY?

A: South Africa is the third largest producer overall, but is the largest primary producer of vanadium. In other words, SA produces vanadium as a primary objective, and not as a result of the production of steel. The reason for this is that SA’s Bushveld Complex is probably the largest and highest-grade vanadium endowment on Earth.

As highlighted earlier, SA is facing an electricity crisis due to the underinvestment in electrical infrastructure. South Africa’s Integrated

Resource Plan of 2019 aims to transition to renewable energy, including battery energy storage systems, in order to limit carbon emissions. VRFBs could present a solution to this crisis.

VR8 is striving to become a world-class producer of vanadium pentoxide, and is on track to achieve this ambition. Our immediate goal will be to develop the initial mine, concentrator and salt roast leach (SRL) processing operations to produce vanadium pentoxide, which will be sold into the steel and VRFB sectors. We will then aim to expand the operations to produce a range of other products such as ferrovanadium, titanium dioxide, ilmenite, vanadium electrolyte and other related products.

We also plan to investigate the potential to build renewable solar power generation and VRFB facilities on each of our sites, such that we may potentially be self-sustaining from a power perspective. Ultimately, we envisage that VR8 will become a vertically integrated operation from mining, processing of vanadium, through battery manufacturing and renewable energy generation and storage.

Q: WHAT IMPACT CAN VANADIUM FLOW BATTERIES HAVE ON THE LOCAL VANADIUM MARKET, AND WHAT’S THE ADDITIONAL IMPACT IT MIGHT HAVE ON SA TO NOT ONLY SUPPLY THE METAL, BUT TO BEGIN MANUFACTURING VANADIUM FLOW BATTERIES ITSELF?

A: The South African vanadium industry has the opportunity to play a major role in the global transition from fossil fuel to renewable energy generation and storage, through the production of vanadium for use in the manufacture of VRFBs. This will also greatly assist with development of a home-grown renewable energy generation and storage industry, which could become an increasingly important part of SA’s base load power generation and may ultimately improve power reliability within the country.

Similarly, given that SA has vast resources of in-ground resources of vanadium, it will make more economic sense to develop these battery manufacturing facilities in SA, which will reduce the cost of transportation and shipping of vanadium. This will mean that SA battery manufacturing facilities will have relatively lower costs when compared to similar manufacturing facilities located in other parts of the world, which would rely on imported vanadium. As a result, SA has the potential to become a major exporter and world leader in the VRFB manufacturing sector.

The views expressed are the author’s own and do not necessarily reflect SA Mining’s editorial policy.

John Ciganek

GLOBAL DEMAND FOR GOLD INCREASES

The latest World Gold Council report indicates rising demand for gold, stimulated by emerging market – rather than developed world – purchases.

Gold experienced its strongest first quarter since 2016, according to the World Gold Council’s (WGC) Q1 2024  Gold Demand Trends report. This revealed that total global gold demand –including over-the-counter (OTC) purchases – was up 3% year-on-year to 1 238 tonnes.

Among the key drivers for this were healthy investment from the OTC market, persistent central bank buying – particularly from the People’s Bank of China – and generally higher demand from Asian buyers. These factors combined to drive the gold price to a record quarterly average of US$2 070/oz – some 10% higher year-on-year and 5% higher quarter-on-quarter.

According to John Reade, WGC senior market strategist, Europe and Asia, this significant move in the gold price was slightly surprising, as it exceeded the council’s expectations.

“In fact, it performed better than it had under any of the scenarios we focused on. When we compiled the report, a lot of attention was paid to the United States (US) economy, its monetary policy, and expected inflation, but none of these factors appear to have had a major impact,” he says.

“Gold increased despite high inflation

and a reduced expectation for interest rate cuts, and once we took into consideration the make-up of the demand for the metal – with significant interest shown from emerging markets – it demonstrated that these buyers of gold have been more important in setting the gold price than in the past.

“Whereas previously prices were still generally determined by traders in the US and Europe, these emerging markets are clearly playing a larger role in driving the gold price today.”

Reade suggests that this could mean market indicators from the developed world are becoming less important. He notes that there is a distinct divergence between emerging market buyers and the holders or buyers of gold in western markets, pointing to strong buying of physical coins and gold bars from China, India, and Turkey, compared to the west, where demand from Western Europe and the US was down 49% year-on-year, and down by some 67% on the first quarter of 2022.

Christiaan Bothma, investment analyst at Sanlam Private Wealth agrees, saying central bank buying by the likes of China, Turkey and Russia appears to be the primary reason behind last year’s rise in the gold price.

“This has been an ongoing trend over the past decade, as these nations no longer

RECYCLED GOLD

Gold recycling in Q1 rose to 351 tonnes (+12% q/q and y/y) in response to higher gold prices. This was the strongest first quarter volume of recycling supply since 2014, and the strongest quarterly performance since Q3 of 2020. Increases were seen in almost all markets and regions, with higher gold prices the common theme. This upturn should come as no surprise to followers of the gold market – rapidly rising prices are usually accompanied by increased volumes of gold recycling, primarily in the form of jewellery. However, the increase in volumes has been more modest than some may have been expecting, given the gold price ascent.

feel secure in holding US dollars as foreign currency. More recently, there have also been reports of increased retail interest from Chinese individuals – as other asset classes like property and equities struggle,” says Bothma.

Regarding the impact of conflicts around the globe – particularly Russia’s invasion of Ukraine and Israel’s war on Gaza – Reade says while such wars have had short-term impact on a number of occasions, they have not been a major driver of the current gold price rise. This despite risk and uncertainty generally contributing to an increase in gold investment.

IMPROVED MINE SUPPLY

Total supply rose 3% in Q1 due to record mine production and higher recycling.

Q1 mine production increased 4% y/y to a record level for the first quarter.

Gold recycling volumes rose by 12% y/y as the gold price increased.

Central bank buying by the likes of China, Turkey and Russia appears to be the primary reason behind the rise in the gold price last year. – Bothma “ “

RECORD HIGHS

“Mine supply is expected to beat the previous record high set in 2018 on expansions and ramp-ups,” he says, quoting the report.

“Around two-thirds of this growth is likely to come from Canada, China and Ghana, although a mild Northern Hemisphere winter has helped Q1 o to a good start.

“On the supply side, mine production increased 4% year-on-year to 893 tonnes, which was a record for the first quarter. Recycling also reached the highest level since Q3 2020, jumping 12% year-on-year to 351 tonnes, as some investors saw the high price as an opportunity to take profits.”

Last year was a bit of a disappointment in respect of mine production. However, the first quarter of this year saw mine production hit a new record.

“In fact, expectations based on partners’ metals forecasts for the year are that global production should hit an all-time high this year. However, we must take cognisance of the fact that a lot of mining projects were put on hold in the 2013-15 period, and this slowdown in expenditure will reflect in an impact in production in the longer term.”

This is because of the lengthy nature of mine projects, and the shortage in new projects and expansions during this period

will soon be more seriously felt by the industry, he says.

Bothma says mine supply is unlikely to grow much over the next decade, but this is not so important in setting the gold price.

“This is because there is an estimated stock of more than 200 000 tonnes above ground in either central bank or investor vaults, or in the form of jewellery. This compares to just below 5 000 tonnes mined last year.

“Thus, given the ample available stock above ground, new mine supply is not very relevant in setting the price for gold, as every tonne of gold ever mined can again be a source of future supply into the market. An example of this might be individuals selling their inherited Kruger Rands,” he says.

LOOKING AHEAD

The most interesting takeaway, notes Reade, is the clear shi in behaviour trends from Eastern and Western investors. Typically, investors in Eastern markets are more responsive to the price, waiting for a dip to buy, whereas Western investors have historically been attracted to a rising price, tending to buy into the rally.

In Q1, he says, those roles were reversed, with investment demand in markets such as

Mine production looks set to reach a new record in 2024, while higher prices may encourage more – but limited – recycling.

In Africa, Ghana saw production up 15% y/y due to the recovery in production at the Ahafo mine. Operations had been impacted by the failure of a conveyor to the primary crusher and damage to the semiautogenous grinding mill.

China and India growing considerably as the gold price surged.

“Looking ahead, 2024 is likely to produce a much stronger return for gold than we anticipated at the beginning of the year, based on its recent performance. Should the price level o in the coming months, some price-sensitive buyers may re-enter the market, and investors will continue to look to gold for a safe haven asset as they seek clarity around rate cuts and election results.

“For the balance of 2024, we anticipate a stronger return for gold compared to the outlook in December 2023. We also expect further emerging market retail investments, despite weaker visible western investment, although if there is an interest rate cut in these developed markets, we might yet see improvement in western investment demand this year,” he says.

IDIGGING DEEPER INTO MINING CYBERSECURITY CONCERNS

The digitalisation of mining organisations has expanded the attack surface for cyberthreats, turning cybersecurity into a signifi cant concern for global mining operations.

n today’s digital era, the internet’s evolution and technologies like the internet of things (IoT) have equalised the cybersecurity landscape. No industry, including the mining sector, is exempt from cyberthreats such as phishing, ransomware, malware, and financial scams.

In fact, cybersecurity has become a significant concern for global mining operations, with organisations including Alamos Gold, Freeport and others recently grappling with the a ere ects of some type of cyberattack.

HIGH RISK, WHY RISK?

By Kyle Pillay Security Operations Centre (SOC) Manager at Datacentrix

The digitalisation of mining organisations has expanded the attack surface for cyberthreats. For instance, cyberattackers might exploit IoT vulnerabilities to manipulate machinery on assembly lines, altering programmable logic controllers that manage various electro-mechanical processes. Such tampering could endanger workers, halt production lines, or even threaten lives, as in cases where heating, ventilation and air conditioning system shutdowns occur due to attacks. Moreover, the the and exposure of data – where sensitive employee information is leaked onto the dark web – highlights the severe consequences of cyberattacks. Depending on regional regulations like South Africa’s Protection of Personal Information Act or the European Union’s General Data Protection Regulation, businesses could face significant fines or even imprisonment for lacking adequate cybersecurity measures.

OT VERSUS IT

Operational technology (OT) that is typically used in mines to monitor and control industrial processes is generally manufactured to have a long lifespan. However, today we’re finding that these systems, built to last 20 to 30 years and always operated in segregation, are now being increasingly targeted by cybercriminals.

IT, with its broader attack surface, and the ongoing emergence of new, more sophisticated cyberthreats.

EXPLORING CYBERSECURITY OPTIONS

To enhance their defence against cyberthreats, mining organisations can explore various cybersecurity solutions.

Managing the OT stack with dedicated so ware can provide some protection and highlight areas for improvement, through key performance indicators. Virtual patching and implementing a web application firewall can protect application layers while maintaining network segmentation, thus reducing IT risks.

From a data protection point of view, there are several solutions and processes that could be rolled out by mining organisations to assist with the safe gathering and analysing of data from equipment out in the field. For instance, identity access and management (IAM) is key.

An IAM solution would ensure that only the right people have access to devices and are able to bring data back into the environment for analysis. Multi-factor authentication is also critical here, to ensure that users are not being spoofed – where an unknown source poses as a known, trusted source – or impersonated by a cybercriminal.

Cybersecurity has become a significant concern for mining operations, with multiple global organisations recently grappling with the a ere ects of some type of cyberattack. “ “

Historically, the OT environment has used the Purdue model – a structural framework for industrial control system (ICS) security that concerns the segmentation of physical processes, sensors, supervisory controls, operations and logistics – to protect OT equipment from malware and other attacks.

However, this model, developed in the 1990s, does not address some of the more modern challenges and requirements of ICS environments, such as the growing interconnectedness of OT and

In addition, safeguarding against insider threats is another critical area to be investigated. Here, data loss prevention (DLP) is critical to circumventing threats from within the business, motivated potentially by greed or malice, or even just attributed to carelessness.

DLP assists with data classification. This type of solution helps to determine data classification – identifying and helping to prevent the unsafe or inappropriate sharing, transfer or use of sensitive data. For example, DLP can determine whether a user is allowed only to upload information to a database, or if they may also email such data.

In this ongoing battle for digital resilience, it is critical to choose an experienced partner that o ers comprehensive services and solutions designed to navigate the complexities of modern mining operations. Talking to experts in the cybersecurity field will help these organisations to confront the cybersecurity challenges of today and emerge stronger, more secure, and better prepared for the challenges of tomorrow.

THE IMPORTANCE OF UNDERSTANDING THE MHSA

The Mine Health and Safety Act of 1996 imposes obligations on all mining operations. It is vital that mines both understand and meet these obligations, says law fi rm ENS.

The obligation imposed on an employer by the Mine Health and Safety Act of 1996 (MHSA) to provide and maintain, as far as is reasonably practicable, a working environment that’s safe and without risk to the health of employees, is extensive.

While the measures to be taken to achieve this vary, depending on the nature of the particular operation, it’s important that such an obligation is not underestimated by the employer, especially when dealing with small-scale operations.

Tyla Foster, an executive at law firm ENS’s Mine and Occupational Health and Safety Department, says when considering economic, social and government requirements, specifically focusing on the social element relevant to business, mining companies must be in a position to confidently state to other stakeholders that it provides a safe working environment as prescribed by the MHSA.

“Of importance is that the obligation of providing a safe environment does not only apply to employees working in or at a mine, but also applies to the communities neighbouring the mine, to the extent that they may be directly a ected by the activities at the mine,” she says.

“Of course, it must be remembered that the operations that constitute a mine are broadly defined in the MHSA. The MHSA does not distinguish between a large-scale mining operation and a small-scale mining operation. Ultimately, there are general obligations that fall on every employer,

and then there are specific obligations depending on the activities performed at the mine.”

Foster says the activities performed in an underground mine vs opencast pit vs prospecting-related activities generally di er, and so attract di erent health and safety obligations. So all employers in these di erent types of operations will have a general obligation to ensure that

– Foster “ “

The obligation of providing a safe environment does not only apply to employees working in

or

at a mine, but also applies

to the communities neighbouring

the mine, to the

extent

that they may be directly a ected by the activities at the mine.

the working environment is safe and without risk to employees’ health.

However, where mining operations make use of railbound equipment, the employer is required to ensure compliance with the provisions of the MHSA regulating the safe use of such equipment; similarly with

trackless mobile machinery, among others.

Where mining operations don’t use such equipment, then that obligation is not applicable to that operation.

This is why it is imperative that mining companies consider the provisions of the MHSA, in order to properly note what is applicable to their own operations, and to ensure that measures are put in place to ensure compliance with the MHSA.

IMPORTANT OBLIGATIONS

“While there is a general obligation to provide a safe working environment, this further encompasses other related obligations. These include the requirement to provide health and safety training to employees, to provide employees with the necessary health and equipment (including personal protective equipment), and to conduct regular risk assessments, among others.

“The MHSA does not prescribe, for instance, what employees must be trained in. The obligation is to provide employees with, among others, information and training that is necessary to enable them to perform their work safely and without risk to health.

“Here, the content of the training provided to employees is determined by the employer, as the employer is best placed to make the exact determination around the risks that are most relevant to their specific operations and the measures needed to address such identified risks.”

It’s up to the individual company to establish a health and safety management system that encompasses not only employee

If production is halted for extended periods of time, there will obviously be an impact on the company’s profitability, while safety-related challenges may also reflect poorly on a company’s reputation. – Foster “ “

training, but also the appointment of trained, competent managerial and supervisory personnel, implementation of standards and procedures, audits, inspections and followups, ensuring it meets MHSA obligations.

“This is necessary to make sure there is compliance not only with the mining company’s own requirements, but also those of the act itself,” says Foster.

FAILURE TO COMPLY

The key to successfully complying with the MHSA, and ensuring the obligations imposed by the act are not underestimated, lies in properly considering the activities the mine undertakes, and the risks associated with such activities. And then determining what measures need to be put in place in order to eliminate, control or minimise the identified risks.

“It is also worth warning newcomers to the industry, and junior miners too, that the obligations under discussion apply equally to them. An operation that is newly established, or potentially small in scale, does not absolve the employer of its responsibility to meet the health and safety obligations imposed by the MHSA,” she says.

The aim of implementing the measures outlined in the MHSA is to, among others, minimise injuries and prevent deaths in the workplace.

“In addition, the MHSA gives certain powers to inspectors employed by the regulatory body (Department of Mineral Resources and Energy) to visit the operation. Under certain circumstances they can issue a

compliance notice or a closure notice.

“A compliance notice is where the employer is instructed to implement measures within a prescribed timeframe to rectify non-compliance observed with the MHSA. A closure notice is where the operations or portions thereof are stopped until instructions issued to protect the health and safety of persons at the mine are complied with.”

The challenge here, she says, is one of potential financial and reputational harm for the a ected organisation. “If production is halted for extended periods of time, there will obviously be an impact on the company’s profitability, while safety-related challenges may also reflect poorly on a company’s reputation.”

So it’s vital to implement a health and safety management system, along with continual monitoring thereof, to ensure it remains successful, she says.

COMMUNITY WELFARE

The MHSA further provides that the employer must ensure, as far as is reasonably practicable, that people who are not employees, but who may be directly a ected by the mine activities, are not exposed to any hazards to their health and safety.

“Meeting these obligations requires active engagement with community leaders, and constant communication and awareness. It is also about ensuring e ective warning signage, and securing the mine property e ectively, to prevent accidental – and potentially hazardous – intrusions by

THE ENS DIFFERENCE

As a law firm, ENS is not just an expert in the law. What sets the business apart is its deep knowledge and understanding of mining and heavy industry, including complex technical issues such as rock engineering, geology, seismology, construction, and general engineering.

ENS o ers specialists with extensive experience advising international mining houses and multinational corporates on compliance with Mine and Occupational Health and Safety (MOHS) law, including South Africa’s Mine Health and Safety Act, Occupational Health and Safety Act, and legislation regarding compensation for work-related deaths, injuries and diseases.

The company is known for regularly commenting on amendments to MOHS legislation in the country, and has been holding indepth annual MOHS seminars for its clients for over 25 years.

community members,” she says.

Ultimately, mining companies must be familiar with the obligations imposed by the MHSA, and employ trained and competent employees who understand the mining operations, to assist the employer with identifying and mitigating hazards and risks involved with the operation.

“ENS believes it is very much about getting the right people in the right positions to be able to quickly determine the measures to be taken to ensure a safe working environment. Whether you employ the right people or obtain the services of a third-party consultant, it is ultimately a cost that you will have to expend in order to provide a safe working environment.

“This is because the consequences of failing to comply are far greater – both in terms of potential injury or loss of life, and also the possible financial implications and reputational damage.

“That’s why ENS recommends that companies focus from the outset on achieving compliance with the provisions of the MHSA, promoting a culture of health and safety among employees, and together working towards creating working environments that are healthy and safe.”

SUSTAINABLE FINANCING THE FUTURE OF MINING

Sustainable fi nancing is critical to Africa’s economic and social development, can be the heart of the global decarbonisation solution, and can provide clean energy investments on the continent.

In the modern mining environment, sustainability is an important principle, because mining must be done in a manner that gives due consideration to communities and the environment. Sustainable financing is one method by which mines are more easily able to meet and maintain their sustainability targets across operations.

Sustainable financing is a type of funding that allows borrowers to measure their performance against a set of predetermined key performance indicators (KPIs).

Depending on the level of performance achieved against those KPIs, the borrower can obtain a financial benefit, such as a margin reduction or access to additional funding for which that borrower may otherwise not be eligible, says Natasha Pather, partner at Webber Wentzel.

“Naturally, this arrangement requires detailed and accurate information to be delivered timeously to, and verified by, the funders. Suitable KPIs are usually determined with reference to the nature and extent of the business of the borrower or its group, its operational requirements, and what is achievable and sustainable, without compromising on the business’s product,” she says.

“This type of funding typically takes the form of a loan instrument, rather than a bond, commercial paper or other securities, as the number of funders is generally limited – and thus the borrower is more easily able

to manage these information requirements with a smaller pool of funders.”

Depending on the nature of the business of the borrower, continues Pather, its creditworthiness and various other factors, other financial institutions may also not be able to participate in the instrument, which would limit uptake in the broader market.

CLIMATE CHALLENGES

Ben April, associate director: ESG, climate and financial risk management at KPMG SA, points out that the mining industry accounts for about 4%-7% of global greenhouse gases, based on the sum of their Scope 1 and Scope 2 emissions.

“Addressing the threat posed by climate change will need significant e ort from various sectors worldwide, including metals and mining. Iron and steel, aluminium, and coal value chains within the mining sector are the key contributors to emissions, because of the high production volumes and associated high emission intensities,” he notes.

“The metals and mining industry is crucial in transitioning to a low-carbon economy. Mining and metals – such as lithium, cobalt, copper, aluminium, rare-earth elements, and even steel – are integral components that go into clean energy technology.”

Examples include lithium-ion batteries, electric vehicles, wind turbines, and solar photo-voltaic (PV) panels, he says. “The metals and mining sector anticipates

significant capacity expansion to meet growing demand.”

From a climate finance perspective, suggests April, South Africa must increase this at least three- to fivefold from the current annual average of R131-billion. The Presidential Climate Commission estimates that SA requires on average R334bn a year to meet its net zero goal by 2050, and R535bn a year to meet its nationally determined contribution (NDC) target by 2030. Domestic sources account for 91% of tracked climate finance, while international sources account for 9%.

“Africa as a whole will require $277bn annually between 2020 and 2030 to implement its NDCs under the Paris Agreement. Yet the annual climate finance flows into Africa are only around $29.5bn.”

A BETTER FIT

Pather suggests that sustainable financing is typically a better fit for larger corporates who already have their own corporate social responsibility programmes, particularly one geared towards one or more environmental, social and governance (ESG) objectives.

“Furthermore, such organisations would also have the relevant information and verification systems and relationships in place, as well as the requisite financial resources to implement these,” she says.

“Funders may be willing to accept preexisting KPIs, determined by the borrower, where it can be shown that adequate

consideration and objective assessment has gone into determining these KPIs. However, they may wish to set their own KPI targets or verify that the proposed targets are su iciently ambitious.”

In the UK and European markets, she continues, there appears to be an emerging trend of requiring more aggressive KPI targets, both upfront and year-on-year, to avoid allegations of greenwashing.

“The basis for these allegations within the funding space specifically seems to be that the funders’ intervention has not caused the ‘good behaviour’ for which both these corporates and funders are being rewarded through financial incentives.

“We may see a similar trend for more aggressive KPI targets in future in the SA market, and perhaps more punitive margin ratchets and structuring.”

BETTER MECHANISMS

Essentially, sustainable finance includes ESG considerations in investment decisions, something that leads to more investment in sustainable projects and activities in the long term, says April.

“Overlaying sustainable financing with traditional financing requirements can serve as a mechanism to increase mining companies’ access to capital. It is not just pulling in your traditional investors by meeting their ESG thresholds in terms of assessment, but also pulling in your impact investors and development finance

institutions with more specific ESG mandates to uphold.

“Sustainable financing can be seen as a mainstream lever that mining companies can use to adopt sustainable business practices. This will help them to preserve and grow their operations, as well as mitigate environmental and social risks that emanate from those operations, and promote good governance.”

The type of sustainable finance products that are available to mining companies, he says, include the “use of proceeds” for use in eligible green and social projects or initiatives. The second option is a sustainability-linked financing structure.

“Sustainability-linked financing comprises more forward-looking performance-based instruments. These aim to incentivise the borrower’s achievement of predefined and ambitious sustainability performance targets, associated with material key performance indicators measured at milestone dates.”

It should be noted, says April, that sustainability-linked structures don’t have any limitations in terms of the use of proceeds and in determining material key performance indicators.

“A third option is transition financing. Transition financing helps mining companies attract financing that would otherwise not typically fit into your traditional green or sustainability-linked structures.

“The aim of transition financing is where

This type of funding typically takes the form of a loan instrument, rather than a bond, commercial paper or other securities, as the number of funders is generally limited. – Pather “ “

BENEFITS AND RISKS OF A SUSTAINABLE FINANCING ARRANGEMENT

BENEFITS:

Save on its interest costs (and o en in circumstances where it is already complying or aligning with its own internal objectives).

Potentially access additional funding that it may otherwise not be eligible to access.

RISKS:

Failure to comply could result in an increased interest cost.

If the KPI targets are not set at appropriate levels, one could potentially face allegations of greenwashing.

the financing raised is used to support projects and initiatives that will deliver a long-term strategic reduction in greenhouse gas emissions that are aligned with the company’s decarbonisation strategy or transition plan.

“Ultimately, Africa is an excellent opportunity for capital providers to invest in mining and renewable energy projects. Moreover, these will be critical to Africa’s economic and social development, can be the heart of the global decarbonisation solution, and can provide clean energy investments on the continent,” he says.

ISTOCK –Napuri

Bridging Gaps With Innovative IT Solutions

Enterprise Outsourcing’s Solutions Drive Industry Competitiveness with Unmatched IT Expertise

The mining industry is undergoing a transformative shift driven by technological innovation, aiming to optimise operations, enhance safety and reduce environmental impact. With over two decades of experience, Enterprise Outsourcing emerges as a key IT partner dedicated to revolutionising mining operations through cutting-edge solutions tailored to industry-specific challenges, while understanding the importance of maintaining safety, efficiency and productivity in successful mining operations.

Leading Digital Transformation for Operational Excellence in Mining

In today's fast-paced mining industry, continuous innovation is the key to staying ahead. Enterprise Outsourcing leads with innovation, revolutionising mining operations with state-of-the-art IT solutions. Their established history and comprehensive expertise spanning multiple sectors, notably the African mining industry, makes them the preferred option for mining companies seeking success in the digital era. The company offers comprehensive services including AI, cyber security, cloud computing, data analytics, telecoms, IT support and application development. Providing these to various industries drives operational excellence and keeps businesses competitive.

In order to protect mining operations and ensure uptime, Enterprise Outsourcing has been able to offer mining houses solutions that can predict equipment failures, optimise drill and blast patterns and automate machinery operations for optimal resource allocation. This strategic use not only boosts productivity but also minimises human exposure to hazards and refines the safe use of explosives.

IoT technology plays a crucial role in transforming the mining industry by enhancing real-time data collection and transmission, improving decision-making processes. Sensors monitor conditions like air quality and structural stability, boosting safety and environmental compliance. This revolution drives energy-efficient mining, waste reduction and shifts towards high-tech roles, aligning with sustainability goals.

Innovative Solutions for Enhanced Efficiency

Enterprise Outsourcing provides comprehensive IT support for mining operations, ensuring uninterrupted functionality and safety through software/hardware management, real-time blast monitoring and data analytics. Their services optimise resource extraction, enhance safety and offer secure cloud infrastructure with backups and disaster recovery plans to mitigate cyber threats and ensure reliable operations.

Understanding the dynamic cyber risk landscape and emerging threats posed by advancing technologies is crucial to ensuring reliable and robust operations. As mining operations transition into the digital era, they face increased cyber risks. However, solutions such as advanced firewalls, antivirus software and real-time threat monitoring ensure uninterrupted operations and protection against potential cyber threats.

Fortifying Cyber Defence in Organisations

In mining operations, where handling explosives and hazardous materials is routine, maintaining virus-free computer systems is crucial. Enterprise Outsourcing’s antivirus solutions protect these systems from malware that could potentially disrupt critical operations, thereby supporting the safe and efficient continuation of mining activities.

Committed to Excellence And Reliability

Regarding data management and security, Enterprise Outsourcing's cloud services offer a secure infrastructure for mining operations data. This ensures operational continuity with secure backups and disaster recovery plans. In today's digital age, the mining and metals sector, along with other asset-intensive industries, face escalating and fast-evolving cyber threats.

The African mining and energy sectors urgently need stronger cyber security measures against escalating threats like hacking, data breaches and malware. These risks threaten critical infrastructure, data security and overall operational continuity, leading to costly downtime, production losses, regulatory fines, and reputational damage. Robust protection against viruses, malware and ransomware is crucial, with Security Information and Event Management (SIEM) solutions playing an important role.

Strengthening Global Mining Networks With Tailored Solutions

Tailored cyber security solutions, such as those from Enterprise Outsourcing, offer comprehensive defense against evolving threats. As mining operations enter the digital era, they face increased cyber risks, but solutions like advanced firewalls, antivirus software and real-time threat monitoring ensure uninterrupted operations and protection against any potential cyber threats.

As a leading innovator, Enterprise Outsourcing is transforming mining operations through cutting-edge IT solutions. While the mining industry faces evolving technological advancements and rising cyber threats, their commitment to excellence and tailored expertise becomes invaluable. Their range of IT services empowers mining firms for peak efficiency, reliability and operational excellence, streamlining processes, boosting productivity and enhancing cybersecurity defences. With Enterprise Outsourcing's solutions, mining businesses confidently navigate the digital age, gaining a strategic edge in the competitive landscape. Its dedication to delivering excellence positions the company as the preferred partner for ensuring uninterrupted operations and safeguarding critical assets amid evolving cyber risks, leading the industry's transformation while setting new standards for innovation and reliability.

Navigating You Through Challenging Times

TEMBRACING INTELLIGENCE IN UNDERGROUND DRILLING

The world of underground drilling technology is undergoing a signifi cant transformation that promises enhanced precision and productivity along with a wealth of detailed operational data.

he world of underground drilling technology is undergoing a significant transformation. This evolution promises not only enhanced precision and productivity, but also a wealth of detailed operational data. Moreover, it o ers the potential for safer drilling practices through remote control.

As key players in this space o er a wide range of underground drill rigs and bolters, so customers are progressively embracing intelligent drilling, with a growing interest in battery electric models for the future.

One must, however, understand that integrating intelligent technology into drilling operations is not without its challenges. Sandvik’s own response to this is to collaborate closely with customers during this transformative phase, o ering training and support.

By Khomotso Duiker

Business Line Manager for Underground Drills at Sandvik Mining and Rock Solutions

The key is to bring experts in the equipment in, as they can play a vital role in facilitating the introduction of cutting-edge machines. Ideally, your equipment partner should also o er an in-house training department, in order to ensure that operators and maintenance teams receive the necessary guidance.

will allow drilling operations to be controlled from the surface, provided there is su icient on-site network infrastructure.

Monitoring equipment performance has become critical for mining operations, so modern drill rigs should come equipped with the ability to gather valuable data, such as advance speed, penetration rate and cycle times. This data can then be leveraged to optimise work cycles and improve the drill and blast excavation process, through targeted reports and analysis.

Of course, data connectivity is essential, and it goes without saying that most mines are already addressing this requirement. Today, operators can track rig performance from a control room, identifying signs of under-performance or potential failures in real-time.

This data empowers mines to make any necessary improvements, be these in relation to operator behaviour, or something to do with the machine’s condition. Such improvements are all aimed at increasing productivity and uptime.

Understanding the full potential of automated functions is crucial for operators. These functions not only enhance safety but also boost productivity. The level of automation can vary from individual machines to entire fleets, with some machines capable of completing development ends without any operator intervention.

Sandvik’s intelligent machine models, for example, o er the ability to download the mine’s drill plan for development ends and execute drilling precisely according to that plan. This optimisation leads to more e ective blasting, eliminating issues like underbreak or overbreak.

The level of automation can vary from individual machines to entire fleets, with some machines capable of completing development ends without any operator intervention “ “

Remote control capabilities are also key. A tele-remote function

It is also worth noting that from a sustainability point of view, Sandvik’s dedication to sustainability is such that it extends this to supporting small, medium and micro enterprises (SMMEs) in South Africa. This is done by actively facilitating the extraction of carbide buttons from its drill bits in partnership with SMMEs, fostering entrepreneurship and job creation.

The aim of this initiative is to contribute to a circular economy by recycling tungsten carbide buttons from drill bits, reducing energy consumption by 70% and cutting carbon dioxide emissions by 64% when manufacturing tools. This demonstrates that while embedding intelligence into underground drilling is vital for present-day mines, focusing equally on the principles of sustainability and environmental responsibility is vital to the future of not just mining, but the planet as a whole.

The views expressed are the author’s own and do not necessarily reflect SA Mining’s editorial policy.

DRIVING MINING INTO A DIGITAL FUTURE

The implementation of digital technologies in mines – including the current hot topic, artifi cial intelligence – can drive productivity, improve safety, and ensure environmental stewardship.

By Rodney Weidemann

According to a 2023 PwC survey, 100% of mining CEOs in South Africa are now committed to transitioning to digital technologies, including integrating these technologies into their environmental, social and governance (ESG) programmes.

Despite these advancements, the survey reports a consensus among these CEOs that although there has been development in the use and understanding of technology within the mining sector, there is much room for improvement.

Lesley Hutchins, managing executive for mining industrial at BCX, says it must be remembered that legacy systems aren’t easily retrofitted, making e orts costly and challenging calculations around return on investment (ROI).

“If the lifespan of a mine is short, less than seven years, digitisation and achieving ROI is almost impossible in this already labourand capital-intensive industry. However, digitisation is nevertheless proceeding across

the value chain – from finding and mining through processing and trading,” she says.

THE

DIGITAL

TRANSFORMATION OF MINES

Digital tools can drive productivity, improve safety, and ensure environmental stewardship. Automated drilling and hauling systems, internet of things (IoT) sensors monitoring mine conditions, drones for surveying, and data analytics for operational e iciency are just some technological possibilities, she says.

“These solutions all depend on extracting value from data – finding, organising, and analysing it, at speed. By centralising operational data, mine operators are able to use the information to improve the condition and functionality of their assets, allow for remote work, and ensure that processes run e iciently.

“Digitisation’s potential to enhance decision making cannot be understated. Real-time data allows for the swi identification and rectification of operational

ine iciencies, leading to cost savings and increased production rates.

“Mine operators can use predictive analytics to anticipate equipment failures before they occur, reducing downtime and maintenance costs.”

Centralising data management, applying master data management strategies, and using model-driven processes, says Hutchins, allows for better planning, taking advantage of market prices, and improving ore recovery forecasts.

Currently, digitisation e orts are clustered in processing areas of the business, and in logistics, planning and supply chain management. In these, small improvements make a big impact on the bottom line.

“In these areas, simply by digitising work, the mining, mineral processing, and metals industry (MMM) has a quick win in collaboration, productivity, and e iciency. Digital work can be done from anywhere in the plant, from various sites, or remotely. This means that people can accomplish more.

THE VIRTUAL TWIN

Numerous players in the mining industry have been adopting, adapting, and even developing technology to improve aspects related to safety, productivity and sustainability.

By centralising operational data, mine operators are able to use the information to improve the condition and functionality of their assets, allow for remote work, and ensure that processes run e iciently. – Hutchins “ “

“Safety is of course a key issue in the MMM sector, and digitisation o ers remarkable tools to protect workers. Technologies such as wearables that alert systems to hazardous conditions can significantly reduce workplace accidents.

“Labour unions, integral stakeholders in the industry, have also noted that digital technology is vital for improving health and safety, and plays a significant role in communication,” she says.

TECHNOLOGY CHALLENGES

Gustavo Pilger, worldwide GEOVIA R&D strategy and management director at Dassault Systèmes, says to overcome the technology challenges mines face, they need to recognise that many industries parallel to mining have gone through similar digital transformation journeys.

“I think we need to learn and leverage as much as possible from them. I o en hear people saying that mining is di erent, so technologies and processes successfully adopted across other industries cannot

simply be adopted in mining.

“Sure, the mining industry has its peculiarities and particularities, but other industries have them too. Connectivity within and across sites is one that immediately comes to mind,” he says.

“However, in my view it is more like a capital investment problem than one of technology. What I mean is that there are technologies capable of connecting sites in many parts of the world that are today lagging behind cloud adoption, for instance. Of course, there are connectivity blindspots around the world, but I think it’s a matter of time and investment to close them.”

Beyond connectivity, notes Pilger, other key challenges to solve include closing the information technology-operational technology loop to ensure that the mining IoT works as intended or designed.

“Associated to this are challenges related to standards for interoperability, including defining ontologies and semantic dictionaries so that machines, devices and algorithms can ‘talk’ the same language. This

Many examples come to mind, but more frequently than not, these are invariably point solutions that aim at improving specific parts of processes in isolation. Examples of applied technologies include sensors and internet of things (IoT), robotics and automation, virtual and augmented reality, digital photogrammetry and light detection and ranging (LiDAR), and data analytics and artificial intelligence, to name a few.

E orts to master and improve applications of these technologies across mining processes must not be understated, but there is more to be done in terms of connecting the dots between them. Once these technologies and the data they interact with are connected and “converse” with one another, then significant levers – those that transform businesses – can start to be pulled.

The ultimate target is to make the mine operate like an automated factory within the framework of a virtual twin. This framework provides a live virtual replication of the real world in which processes – or systems – are interlinked and associated with one another, with the underlying data that informs and describes those processes.

It is this data associativity, combined with smart methods and algorithms, that allows one to constantly chase value while in operation, adjusting to uncertainty and unplanned events, being of technical, mechanic, or market nature.

The virtual twin framework allows closing of the loop between information technology and operational technology, while leveraging AI algorithms, cloud and edge computing, within an environment that is cybersecure by design.

It allows miners to think out the box and virtually test ideas before physically implementing them. So, the virtual twin aggregates a range of technologies as described above within a dynamic, live, and scientifically accurate system-ofsystems framework.

will allow them to exchange the right data for informing adjacent processes.

“Also related to this is the role of artificial intelligence (AI) in the technology mix, including aspects about regulation and data ownership to train, build, and use predictive models, for example.”

Another challenge, or opportunity, he says, is to rationalise, connect, digitalise, and integrate supply chains for further agility and productivity gains.

“As mining operations become increasingly digitised and connected, the risk of cyberattacks grows – from hacking to data breaches and operational disruption – all with potentially severe consequences. So, this is another ongoing and increasing challenge that needs to be overcome,” he says.

AI AND AUTOMATION

Alana de Wet, connected industrial ecosystems business development executive for mining at iOCO, indicates that mine startups using AI and automation technologies would have an enormous strategic advantage on their legacy competitors.

“Of course, there is a downside, in that having to make the upfront investment in the infrastructure required for a properly digitised mine would be costly. However, it would also mean not having to worry about integrating legacy systems. Integration is something that many older organisations struggle with, when trying to transform into a more digital business.

“It is worth mentioning that digitising also requires the right organisational culture, and this is where leadership needs to come to the fore. When we speak of AI, we talk of augmented human capability – so it is not about replacing humans, but using the technology to improve their capabilities,” says De Wet.

Ultimately, she says, it is leadership’s role to empower and excite workers by

When it comes to AI, mines should be thinking along the lines of ‘How do I empower my people with this technology?’ rather than ‘Can we use it to fully automate our business?’ – Abrahams

demonstrating use cases for AI, and to also ensure proper training and skills development for their people. After all, AI doesn’t work properly without human involvement.

Callan Abrahams, principal AI consultant at iOCO, says while mines speak of becoming fully automated, we really need to think about what automation means, because it is still vital to have people in the loop. She says technology can always suffer technical difficulties, so people still need to be a part of the system, to ensure it works properly at all times.

“Working with AI means thinking of it as an extended colleague, rather than a replacement. Ultimately, the technology is costly and needs to be properly managed, so people will remain part of the mix for the foreseeable future.

“In fact, mines need to accept the concept of using AI to augment human capability, rather than fully automating their operations. In my opinion, they should be thinking along the lines of ‘How do I empower my people with this technology?’ rather than ‘Can we use it to fully automate our business?’,” says Abrahams.

THE MINE OF THE FUTURE

Pilger believes that technology development and its adoption will play a key role in the mine of the future. Navigating through the

challenges outlined above will be essential to eventually realise the vision of an automated mine.

“The vision is one in which a mine would be a data-driven, fully automated and simulated, electrified system-of-systems operation, functioning continuously and reliably. It would adjust on the fly as conditions shift and plans change, based on continuous updates and input from intelligent sensors as well as human decision making. This should take place in a fully integrated industrial internet of things ecosystem,” he says.

These and future technologies – and the efficiencies promoted by their application – could open up new spaces of opportunity, says Pilger. For example, it can help to conceive new innovative mining methods; ones that improve resource efficiency, minimise waste, and ultimately reduce the environmental footprint of a typical mine.

“Digital technologies can help us to develop and implement innovative advanced mineral processing methods, capable of higher recoveries at minimal environmental impacts. It is my opinion that in future, we will be working in tandem with technology and derivative devices to enhance human potential and foster creativity. Moreover, by doing so, we will transform the way we traditionally mine and run a mining operation,” he says.

BME UNVEILS CENTRALISED BLASTING SYSTEM IN AXXIS RANGE

Safer, more accurate and fully programmable blast technology unveiled for general and specialised underground mining environments.

Omnia company BME has added another string to its technology bow, filling out its popular AXXIS electronic detonation range with the AXXIS Centralised Electronic Blasting System (CEBS).

According to Ralf Hennecke, managing director at BME: “AXXIS CEBS is a premium digital detonator system for initiating explosives, augmenting the popular AXXIS Titanium system for large deep-hole surface operations, and AXXIS Silver for smaller blasting operations. It also represents the safest initiation technology available globally.”

He says the AXXIS CEBS initiation system was designed for use in both general and specialised underground mining environments, being fully programmable, accurate and easy to use.

Andries Posthumus, BME’s AXXIS Global Electronic Initiation Systems development manager, says the AXXIS CEBS system allows for two-way communication to take place in real time, with an electronic device initiating each blast by means of an electronic starter.

“The system compromises a blast controller on the surface that monitors and reports all data and activities quickly and transparently. AXXIS CEBS includes a logging device which is used underground at the blasting face to log the detonators and conduct the necessary test functions,” he says.

“Information from the logger is transferred to a blasting box and on to the control box, which manages the entire blasting process from the surface. AXXIS CEBS is designed for enhanced control, precision and safe blasting – with enhanced safety, ease of use and flexibility.”

WILL THE EU’S CSRD PUT MORE PRESSURE ON THE MINING INDUSTRY?

The European Commission’s adoption of the Corporate Sustainability Reporting Directive (CSRD) is likely to impact the local mining sector.

Dr Andries van der Linde, PhD, Head of Renewable Energy at SSC Group

The term “from cradle to grave” has never been more applicable and had more of an impact on how business is conducted than it currently does in the mining sector. So much so, in fact, that in some cases it can become a company’s death knell if not taken into consideration, especially if a South African business entity wants to export to Europe.

The European Commission announced the adoption of the Corporate Sustainability Reporting Directive (CSRD), which will take e ect in 2026. It may sound and seem like it is something completely new, but it is merely more of the same with a new cloak.

The CSRD’s objective is to establish a consistent and congruent environmental, social and governance (ESG) implementation and execution. Reporting requires extensive and detailed disclosures about how sustainability issues a ect a company’s business, as well as the impact of its activities on society and the environment.

Reporting on sustainability is becoming increasingly important for investors and stakeholders, their decision making and assessments on how value is created for the company, and for society. This is applicable to more than 50 000 businesses operating in the European Union (EU), regardless of where they’re based, and it a ects all those who do business with Europe equally. Such reporting

requires all-encompassing disclosures on how sustainability matters a ect a company’s business, as well as the e ect of its activities from an ESG perspective.

The immediate reaction would be that this is Europe and not South Africa. However, coupled to this is the Carbon Border Adjustment Mechanism (CBAM), which will place a carbon price/tax on some of the most emissions-intensive industrial goods imported into Europe.

CBAM REPORTS

This adds an additional emphasis on the “E” in ESG, with the climate change component coming to the fore. The application will be in the form of a price adjustment via purchasing certificates – where one CBAM certificate equates to one tonne CO2 equivalent. This means that although the apparent reference is only to carbon, it applies to the full spectrum of greenhouse gas emissions (GHG).

Therefore, importers will need to submit a CBAM report to the European Commission, declaring the total GHG embedded in a consignment, including emissions released during mining and manufacturing (direct emissions), certain upstream emissions and indirect emissions such as transport.

How does it a ect South Africa and the local mining industry? From July 2024, using default values rather than primary

data will result in fines. SA faces significant vulnerability due to CBAM. In the short term, approximately R52.4-billion of South African exports are at risk, with energy-intensive products specifically targeted. Steel is likely to be the most a ected.

The only way to mitigate this is to implement GHG mitigation measures. Although mines are expected to implement such measures, it is not that simple, because at the end of the day it is all about cash flow. And although it will have a direct impact on products landed in the EU, the ripple e ects will be felt throughout the value chain. If SA products become uncompetitive because of the additional cost resulting from CBAM, the mining industry will be equally a ected.

When considering steel as a prime example, its carbon footprint follows it every step of the way. Calculating a product’s carbon footprint can be extremely complex and the variables can be endless, depending only on the attention to detail and accuracy. When it comes to mining, the carbon footprint mainly comes from energy; and in this regard, electricity and diesel are the main contributors.

In 2023, the Minerals Council South Africa’s estimates on carbon tax paid by the mining sector were between R3.7bn and R4.6bn, and are expected to be R4.34bn to R11.65bn by 2030. Then there is carbon tax every step of the way until the final product.

These are already not insignificant amounts, and now the CBAM will be added to the final product.

In South Africa, the steel industry exhibits two main processes to produce steel. Depending on the source, approximately 60%-80% of the steel is manufactured using the blast furnace-basic oxygen furnace process, where steel is produced using iron ore and coking coal as raw materials.

The balance is produced by employing electric arc furnaces, where scrap steel is the main component, and the Corex process, where normal coal is used together with iron ore. As a result of the blast furnacebasic oxygen furnace route – raw materials being iron ore and coking coal – its carbon footprint is 1.987 tonnes of CO2 per tonne of steel produced. This as opposed to 0.357 tonnes of CO2 per tonne of steel with the electric arc furnace route, where recycled steel makes up most of the input. Meanwhile, the Corex process’s carbon footprint is 1.2 tonnes of CO2 per tonne of steel produced.

THE COAL CONUNDRUM

As for the biggest contributor to steel products’ carbon footprint, it should be remembered that most of the coking coal used in SA is imported from Australia, the US and Canada, which dominate metallurgical coal markets.

However, once developed, the Makhado

The CSRD’s objective is to establish a consistent and congruent environmental, social and governance (ESG) implementation and execution. “ “

mine in Limpopo will be the only significant hard coking coal mine in the country, and is poised to play a prominent role in the steel manufacturing industry.

However, back to the CSRD. The only solution is to reduce the carbon footprint of products exported to Europe. For steel, the following options are available:

■ The industry must reduce its dependence on Eskom and reduce energy consumption and/or move to renewable energy sources.

■ Move from diesel vehicles to electric vehicles, green hydrogen- or renewable energy-charged batteries. Implement green steel processes.

However, this is a double-edged sword,

because this will have a direct impact on the coke coal mine in Limpopo, as well as mines that supply normal coal to smelters employing the Corex process. Unfortunately, with emissions targets of 45% by 2030 and net zero by 2050, the pressure is on and to achieve those goals.

In the end, the main losers in achieving these targets would be the producers of fossil fuels. However, there are still those who are fossil fuel-dependent, whether manufacturer or miner, and for these players, adaptation will be critical to survive.

Ultimately, it will take a concerted e ort from all industries in the value chain, which will have to work together if they hope to remain in line with the CSRD legislation.

ENHANCING WATER MANAGEMENT WITH CLOUD TECHNOLOGIES

The

Wcloud is water management’s future; how can water managers ensure they get the best outcomes?

ater infrastructure managers want e icient and sustainable operations. They need to see what is happening across their sites.

Yet this is challenging because old so ware and obsolete data analytics deliver underwhelming operational visibility.

Cloud technologies can help managers reach those goals, optimising operations and ensuring potable water. When managers want predictive maintenance, real-time alerts, or remote management, the best results are almost exclusively through the cloud.

Nonetheless, they have many questions – using the cloud can create new risks, while there are concerns about security, data control, and other potential problems.

By Chetan Mistry Strategy and Marketing Manager at Xylem Africa

Many water managers are not sure if they should use cloud technologies. There are also numerous myths and misconceptions about the cloud, which is a pity, because cloud systems enhance and modernise water operations. People should try to understand the cloud and challenge these misconceptions, but we can’t blame them for being reluctant because they are the ones sticking their necks out to bring the cloud in.

What are the fundamentals of the cloud, and why are cloud solutions well-suited for water infrastructure management?

THE CLOUD, DATA AND SECURITY

The cloud radically increases returns while reducing upfront investment costs. Through the inventive use of modern so ware, cloud systems combine and scale multiple servers to deliver cutting-edge digital, data and artificial intelligence services across the internet, at very competitive costs. Traditional IT cannot do this without incurring enormous expenses and upfront investment.

Typically, a site would purchase so ware and long-term user licences, and purchase and maintain the hardware and human skills that run that so ware. However, this traditional approach has considerable drawbacks.

Foremost, it takes time, money and skills to maintain the hardware. In addition, there are costs incurred for so ware maintenance, updates, and patches. Thirdly, the so ware is isolated to a specific location, meaning people must be on-site to use it. And lastly, the so ware has no natural ability to scale cost-e ectively. Water sites are stuck with what they bought and have to “sweat” the so ware, even if it’s outdated and lacking new features.

month or pay-per-use subscription model. The cloud service provider owns and runs the servers hosting the so ware. Patches and updates are applied proactively and at no extra cost to customers.

As the cloud is a native internet technology, cloud so ware is remotely accessible. Cloud business models use platforms that scale, so the cloud service can shrink or expand as needs and budgets change. Cloud so ware also increases security, because while customers must continue to create healthy security practices, cloud providers invest extensively in security features, industrystandard frameworks, and data protection standards such as ISO 27001 and SOC 2 Type II. The cloud derisks so ware usage, lowers associated costs, and provides more flexibility, yet site managers don’t lose any control. They still manage their data, compliance, and security, but they can let go of the cost and management elements holding them back. Instead, these are passed to their cloud partners, which have serious resource, skills and innovation capacities.

CHOOSING THE RIGHT PARTNER

The cloud can relieve water management from outdated systems and technology stagnation. Trust is the cloud’s currency; water sites should focus on selecting partners that will stick with them.

When managers want predictive maintenance, realtime alerts, or remote management, the best results are almost exclusively through the cloud. “ “

If a cloud company is primarily trying to sell a product to you, walk away. You are not buying a product, you are buying into a relationship. They need to demonstrate that they listen and can assess your needs for proactive solutions. They must also demonstrate that they know your sector and they continually invest in their systems for your benefit.

Xylem knows that cloud computing is a game-changer for water management, but also appreciates that there are concerns about risks such as control, security, maintenance, and cost management.

To answer these needs for customers, the company develops and maintains policies, skills and partnerships to counter risks and boost value. Whether the concern is about data breaches, data sovereignty, cloud skills, or aligning cloud technologies with water strategies, the right partner does the heavy li ing, so that water sites can focus on their core priorities.

Cloud computing turns this approach on its head. Sites don’t need to purchase so ware or licences; instead, they access on a pay-per-

Cloud computing is about flexibility and focused solutions without capital expenditure burdens. The best partners listen and respond, as although technology makes it possible, it is the partnership and trust that ultimately makes it happen.

C.I.S INDUSTRIAL STRUCTURES

Fabricators of industrial structures

C.I.S Industrial Structures was formed in 2018-19 as a separate division of C.I.S Engineering, with the focus on fabrication of industrial structures for the mining, mineral beneficiation, petrochemical and chemical, water and wastewater industries.

Products include:

Building structures, Process support structures, Process tanks and vats, Mechanical equipment structures, Piping and ducting. This division is housed in the C.I.S Engineering complex and the plant houses modern automated and semi-automated steel processing equipment for welding, fabrication, bending, rolling, beam drilling, and angle working.

C.I.S Industrial Structures has full access to laser- and plasma-cutting facilities, and hosts one of the most advanced computer numerical

PRESTANK

Suppliers of fully customisable, high-quality water-storage solutions

Prestank, manufactured by Structa Technology, is a brand of sectional water storage tanks that is hygienically safe and cost-effective, and a reliable way to store water for the commercial or private sector, or even for personalised storage. Pre-manufactured storage facilities can be provided for a vast variety of applications, and are used extensively by the mining industry and municipal authorities. They range from 1 500 litres to 4.2 million litres. Choose from temporary or permanent installations.

Prestank tanks are fully customisable, high-quality water-storage solutions that are manufactured according to SANS guidelines and meet South African hot-dipped galvanising requirements. A major advantage is that these tanks facilitate easier handling and transportation over long distances to remote areas.

control (CNC) fibre laser-cutting facilities in South Africa. A full complement of associated design services, including draughting, computer-aided design modelling and structural analysis, are offered. The division operates under the C.I.S Engineering Quality system, which is certified to ISO 9001:2015 and is Level 1 BBBEE-compliant. C.I.S Engineering is part of the Structa Group of Companies.

CONTACT:

Tel: +27 (0)16 986 1135

Email: info@cisindustrialstructures.co.za

Web: www.cisindustrialstructures.co.za

8 Firestone Street, Vanderbijlpark, Gauteng

Assembly on-site is quickly achieved without the need for sophisticated tooling methods. Minimum maintenance is required because the galvanised steel panels resist weathering from the elements, while maintaining the integrity of the water within from contamination of most forms.

Structa Technology is a Level 1 BBBEE contributor.

CONTACT:

Tel: +27 (0)16 362 9100 / +27 (0)79 035 6997

Email: contracts@structatech.co.za/ watertanks1@structatech.co.za

Web: www.prestank.co.za/ www.structatech.co.za

2 Dutton Road, Meyerton, Gauteng

STRUCTA PROFILE

Profile cutting and material processing

Structa Profile was established in 2009 as an internal plasma profile cutting service centre within the Structa Group. Through the years, the business expanded its offerings to all customers, and now also boasts the following state-of-the-art equipment:

• 3 x CNC laser machines with a cutting bed of 12m x 3m that can process mild steel and carbon steel up to 70mm, stainless steel up to 50mm, and aluminium up to 30mm.

• 3 x HD Plasma Cutters with a combined bed size of 54m x 3.2m which can cut stainless and carbon steels up to 35mm thick with a tolerance of +2mm or less. Oxy-fuel cutting options are available up to 300mm thick.

The company is housed adjacent to its sister company C.I.S Engineering. This allows Structa Profile to offer a one-stop metals processing service from advanced designing and engineering up to the final product. Services also include bending, welding, assembly, beam drilling, angle punching and cropping.

CONTACT:

Tel: +27 (0)16 986 1135

Email: info@structaprofile.co.za

Web: www.structaprofile.co.za

8 Firestone Street, Vanderbijlpark, Gauteng

AKS LINING SYSTEMS

Specialist manufacturer of geomembrane and corrosion protection liners Based in Cape Town, AKS Lining Systems, has been manufacturing quality thermoplastic products and operates within a very specialised, yet expanding market in manufacturing quality Corrosion Protection Liners (CPLs) and geomembrane liners. Supplying the entire SADC region, and exporting to more than 30 countries worldwide, its products are installed in diverse applications, including mining, water and waste treatment, landfill, ponds, dams, construction and general infrastructure.  Geomembrane can be manufactured according to GRI-GM 13 (HDPE), GRI-GM17 (LLDPE) and the SA industry standard, SANS 1526. As an ISO 9001:2015 certified company, AKS follows a strict code of conduct to ensure top-quality products and custom solutions for clients.

CONTACT:

Tel: +27(0)21 983 2700

Email: aksmarketing@aks.co.za

Web: www.aks.co.za

ENVASS GROUP OF COMPANIES

Your partner in environmental solutions

The ENVASS Group of Companies is an environmental consultancy organisation with more than 80 years of combined experience.

ENVASS provides a comprehensive range of environmental consulting and compliance services to large and small to medium businesses, local authorities, and investment groups.

ENVASS aims to support its clients to secure environmental compliance, and reduce and mitigate imminent and potable environmental risk.

ENVASS’s services divisions include: environmental authorisations; compliance audits; compliance monitoring; specialist studies; mine closure and liability; ISO 14001 EMS; and wetland and aquatic studies

CONTACT:

Tel: +27 12 460 9768

Email: info@envass.co.za

Web: www.envass.co.za

GRINDING TECHNIQUES

Grinding Techniques locally manufactures a comprehensive range of abrasive products, suited to various applications in the mining environment.

The Superflex range boasts exceptional grinding products, perfectly suited to applications of harder materials such as wear parts and tips.

Providing excellent stock removal on high alloys, chrome and other heat-sensitive metals, these products ensure reduced heat on application, superior longevity, and the benefit of reducing potential cracking and deformation of the work piece.

Superflex – Durable | Dependable| Different

CONTACT:

Tel: +27 11 271 6400

Email: info@grindtech.com

Web: www.grindtech.com

FLOW SYSTEMS

Established in 1975, Flow Systems Manufacturers (Pty) Ltd designed the first locally manufactured turnstile in South Africa for the South African mining environment. Today, the company manufactures and installs an extensive range of high-quality access control barriers from revolving doors and high-security booths to robust industrial turnstiles. It also manufactures a range of vehicle access control barriers – namely manual and automatic boom barriers, with and without spike control, as well as fixed and movable bollards. For the mines, they also supply Alcohol Detection Turnstiles, Biometric Quarter Lock Turnstiles, Sanitiser Turnstiles, etc.

CONTACT:

Tel: 011 762 2453

Email: info@flowsystems.co.za

Web: www.flowsystems.co.za

INVINCIBLE VALVES

40 years of service excellence to our esteemed customers around the globe

Invincible Valves offers a wide range of industrial valves locally manufactured and or imported, including the Inval range and ancillary equipment, as per client requirements.  In conjunction with the new valve sales, we also offer in-house rubber lining and reconditioning of all valve types.

As a Level 1 BBBEE service provider with our head office in Germiston, Gauteng, we have satellite offices and/or agents countrywide. We also ship globally to mining, petro-chemical, power generation and all other industrial sites.

CONTACT:

Tel: 011 822 1777

Email: sales@invalve.co.za

Web: www.invalve.co.za

SPECIALISED MAINTENANCE PRODUCTS

SMP Industrial specialises in a cost-effective, quality range of cleaning, maintenance and safety products. These range from specialised industrial degreasers, solvents and lubricants, to general housekeeping, kitchen and laundry products – and more recently a range of workwear and personal protective equipment.

SMP’s national stock holding and distribution footprint enables it to provide fast and efficient service to its customer-specific solutions throughout Southern Africa.

CONTACT: Tel: 011 552 8403

Email: chris@smp.co.za

Web: www.hyvest.co.za

● ADDED VALUE/EXPOSURE TO YOUR BUSINESS VIA ONLINE CONTENT.

● Help build/strengthen your company’s brand.

● DRIVE TRAFFIC TO YOUR COMPANY’S WEBSITE.

● Expand your reach with various packaged o erings suited to your company’s needs, such as bundling your advertising with news/corporate pro les and/or a video online.

SA Mining, South Africa’s oldest mining magazine, has been providing insight into the local, Southern African and African mining space for 125 years.

SAFETY AND OPERATIONAL EXCELLENCE GO HAND IN HAND

It isn’t one or the other when it comes to safety and operational excellence – the two are one and the same.

By Arjen de Bruin, Group CEO at

OIM

Consulting

In the past and across certain industries, there was o en a misconception that an organisation could either operate in complete adherence to safety regulations, or smash its targets. Health and safety were o en, and rather unfairly, seen as “red tape”; a form of bureaucracy that overcomplicated issues and slowed down operations.

But the two are far from mutually exclusive, and this is something that the mining and manufacturing industries know more viscerally than most. But it hasn’t always been like that.

Flash back to a couple of decades ago, to when mines were notorious for being a dangerous environment to work in. In 2007, the issue of safety in mines first rose to the fore when over 220 fatalities were recorded that year. At the time, National Union of Mineworkers general secretary Frans Baleni was reported as saying: “Miners are losing their lives and limbs, while the majority of accidents are preventable.”

I don’t think this was because people didn’t care. There just didn’t seem to be a consistent view on how to adhere to, or apply, safety processes and protocols. In addition, mines – especially underground ones – are treacherous territory. Together, these two issues created a perfect storm for disaster.

However, the tide started to shi , as we learnt our lessons. The public and private sectors were galvanised to prioritise health and safety within mines, and new safety programmes, protocols, and procedures – as

well as manuals and other toolkits – were developed and widely rolled out.

In 2021, the Minerals Council South Africa, in partnership with government and organised labour, introduced the Fall of Ground Action Plan – an investment to the tune of R46-million – to address mining incidents. This decisive action has paid o , and the number of deaths has steadily declined each year. In 2023, 54 fatalities were recorded.

Has this increased emphasis on safety impacted output? Only for the better. Thus the idea that “If you want more production, you’ll need to sacrifice safety” is a complete misnomer.

Ultimately, injuries and incidents result in downtime, which equates to a loss for the mine. According to Mining Industry Occupational Safety and Health: “Many mines have experienced closure of sections, sha s, or even the mine itself through Section 54 notifications, issued by the Department of Mineral Resources and Energy (DMRE).

“This o en results in considerable loss in production and profit for a mine, sometimes threatening its very existence, with social repercussions such as loss of jobs. It is conservatively estimated that, on average, one fatal accident costs a company about R2.7-million. This is an expense that comes directly from the profits of a company.

“In fact, it has recently been indicated that losses of R500 000 or more per day may be su ered by mines for stoppages for any

reasons, and that mines have been stopped by the DMRE for as many as five to 10 days. These stoppages inevitably follow fatalities, including rock-related fatalities.”

OIM Consulting’s Supervisory Development Programme has been developed based on the principle that operations and safety are interwoven, with a human-first approach that delivers on productivity.

The programme includes a deep assessment to understand an organisation’s risk profile, and then the development of a safety leadership action plan. We work to instil situational awareness in individuals, helping them understand what constitutes an unsafe act that might lead to injury or fatality. We also help them evaluate their own behaviour and the possible consequences thereof.

An important component of this is the championing of a code of conduct, so individuals understand their responsibility to themselves and their team. There is also on-the-ground coaching, to embed this behaviour into the workforce. The aim is to remove all chance from the equation, helping to make people’s actions as safe as possible.

The fact is that safety and operational excellence are intrinsically linked. It is not one or the other – the two are one and the same. You cannot have operational excellence if your people are unsafe. This is because an e ective mine is one that is equally good at meeting its targets and safeguarding its people.

GATES INTRODUCES CLEAN MASTER PLUS PRESSURE WASH HOSE

Lighter, more fl exible high-pressure hose improves ergonomics, productivity and safety.

Gates, a global manufacturer of highly engineered power transmission and fluid power solutions, has announced the launch of the Clean Master Plus hose range. This is the newest addition to Gates’s industrial hose lineup, built for high-pressure washing applications in demanding industrial environments.

Clean Master Plus leverages innovation in advanced materials and wire reinforcement technology to operate at extremely high pressures of up to 42 Mpa (420 bar - 6000psi).

This next-generation hose construction also stands out for being 22% lighter and 50% more flexible on average, compared to existing 42 Mpa hoses. This improves ergonomics and safety, reduces worker fatigue, and boosts productivity.

FEATURES AND BENEFITS OF CLEAN MASTER PLUS INCLUDE:

■ Smooth cover for exceptional manoeuvrability on rough surfaces

■ Higher operating temperature (up to +150°C) compared to existing version

■ Flexible and lightweight construction for easy handling

■ Compact design reduces space requirements for storage

■ Compatible with MegaCrimp couplings and Gates Crimpers

■ REACH compliant, ozone and abrasion resistant cover, for lasting performance in tough environments

“We know industrial cleaning is a tough job, and designed Clean Master Plus to last longer, operate at higher pressures, and be easier to use. This hose platform leverages the latest in our advanced materials and wire reinforcement technology to withstand the toughest conditions in construction, marine, general manufacturing, public works, mining, and commercial property maintenance applications,” says Tom Pitstick, president: Asia Pacific and Global Strategy.

“Gates has a long history of innovating and pushing boundaries to engineer

our life cycle.”

products that exceed our customers’ expectations, while also helping to reduce their environmental impacts through the life cycle.”

NPI Clean Master coupling.

ADVERTISING

Ilonka Moolman

011 280 3120

moolmani@samining.co.za

Tshepo Monyamane 011 280 3110

tshepom@samining.co.za

IN CASE YOU MISSED OUR INTERVIEW!

Business Spotlight – Enaex Africa’s plans to embrace artificial intelligence

Gary Alfonso speaks to CEO of Enaex Africa, Francisco Baudrand, about the company’s plans to embrace artificial intelligence, while also looking into incorporating sustainability within the organisation’s strategic objective. https://youtu.be/2U0RMa_6bko

APPLICATIONS

• Nip Guards improve worker safety around head, tail, and drive pulleys and prevents worker exposure to conveyor pulley nip points and pinch point hazards.

FEATURES

• Easy installation.

• Low maintenance.

• Simple design.

• Operates in all conditions.

• Manufactured according to SABS, CEMA, Australian and PROK mounting standards.

• Unique adjustable guard maintains a constant gap between the conveyor belt and guard, even when the conveyor belt is tensioned.

• Robust construction for longer life.

• Can be installed on bi-directional conveyor belts.

WE CAN HANDLE THE PRESSURE. GUARANTEED.