ining www.miningne. ws MEDIA Highly commended 2012 PICA Cover of the Year - B2B Publishing ISSN 1999-8872 • R40.00 (incl. VAT) • Vol. 6 • No. 3 • March 2013 Thabazimbi’s iron warriors HOT SEAT THE KNOWLEDGE YOU NEED FROM THE INDUSTRY EXPERTS PRECIOUS METALS Juniors take centre stage MINERALS PROCESSING Technical expertise delivers IT AND COMMUNICATION Making operations more efficient and productive Capital Star Steel executive director Gwendolyn Mahuma on the company’s big entrance into the mining sector. P8
Transcript
iningwww.miningne.ws
MEDIA
Highly commended 2012 PICA Cover of the Year - B2B Publishing
T H E K N O W L E D G E Y O U N E E D F R O M T H E I N D U S T R Y E X P E R T S
PRECIOUS METALSJuniors take centre stage
MINERALS PROCESSING
Technical expertise delivers
IT AND COMMUNICATION
Making operations more efficient and productive
Capital Star Steel executive director Gwendolyn Mahuma on the company’s big entrance into the mining sector. P8
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KOKKOKOKOKOOOOOOOKOKOOOKOKKOOKOKOKOKOKOMAMAMAMAMAMMAMAMAMMAMAMAMAMAMAMAMAMAMAMAMAMAMAMAMAAMAATSTSTTTSTSTSTSTSTSTSTSTSTSTSTSTSTSTSTSTSTSTSTTSTSTSTSTST UUUUUUUUUUUUUUUUUUUUUUUUUUUWWWABWABWAWABWABWABWAABWABWABCO CO COCOOCO CO COCOOOCO 17017011701701701707170117017070DSDSDSDSDSDSDSDSDSDDSD
HOT SEATS
T H E K N O W L E D G E Y O U N E E D F R O M T H E I N D U S T R Y E X P E R T S
PRECIOUS METALSJuniors take centre stage
MINERALS PROCESSING
Technical expertise delivers
IT AND COMMUNICATION
Making operations more efficient and productive
TT
T H E K N O W L E D G E Y O U N E E D F R O M T H E I N D U S T R Y E X P E R T ST H E K N O W L E D G E Y O U N E E D F R O M T H E I N D U S T R Y E X P E R T S
Capital Star Steel executive director Gwendolyn Mahuma on the company’s big entrance into the mining sector. P8
T H E K N O W L E D G E Y O U N E E D F R O M T H E I N D U S T R Y E X P E R T S
iningN O W L E D G E Y O U N E E D F R O
March 2013March 2013CONTENTSKomatsu Wabco 170Ds – Thabazimbi’s iron warriors
P4P4A remarkable fl eet of Komatsu Wabco 170D dump trucks is at the heart of Kumba Iron Ore Thabazimbi’s transformation from a limited underground operation to a thriving opencast surface mine.
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EDITOR’S COMMENT33 Gold history in the making – remembering the
old and celebrating the new
HOT SEAT88 Capital Star Steel’s world-class piping
performance
HOT TOPIC1010 EnI Electrical’s new MD ensures the legacy
Copyright 2013. All rights reserved.___________________________________
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protected and may not be reproduced either
in whole or in part without the prior written
permission of the publisher. The views of
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of the publishers.
Remembering the old, celebrating the new
GOLD HISTORY IN THE MAKING
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Editor’s comment
South Africa is famous for its gold. For decades the country produced more than any oth-er country and today we mine it at deeper levels than anywhere else in the world.
Today, our gold industry is undergoing revolutionary changes, which mark the begin-ning of a new South African gold era. Even so, I find it comforting to know there are still small pockets of our landscape filled with history that remain largely untouched.
As such, this issue pays tribute to two aspects of the industry: retaining and sustaining his-torical value, and the rise of the South Africa- focused gold junior.
Caledonia’s Blanket mine, now over 100 years old, has delivered more than 1 Moz of gold over its lifespan. Despite its age, the company remains commit-ted to the mine and plans to see it realise its full po-tential in years to come – yes, it’s possible. Caledonia is proving that even the oldest mines hold open-ended potential and, as such, are fully committed to the project without question.
A recent visit to Pilgrim’s Rest reminded me that our greatest gold heritage remains a sa-cred place.
The TGME project, located around the towns of Pilgrims Rest and Sabie in Mpumalan-ga province (one of South Africa’s oldest gold mining districts), has exchanged hands many times since it was first discovered. Today, its owner, Stonewall Resources, remains dedicated to extracting gold from the mountains. I have my sights set on this story; I’ll be sure to keep you posted.
Looking at the juniors, it is easy to see why their prospects are improving. The days of the few dominant gold mining majors are coming to an end; they are on the precipice of chang-ing form and diluting their direct South African asset shareholding. This is attributable to a number of factors, which most are aware of by now.
The result is the rise of new companies that are intent on creating opportunities from remaining resources and ensuring the gold sector remains healthy and vibrant. Junior gold company Wits Gold has stakes to some of the only remaining untouched Witwatersrand gold land and has significant plans for it. The same can be said for Sibanye Gold, the new owner of Gold Fields’ oldest deep level South African mines, as well as Pan African Resources, which recently completed the acquisition of Evander Gold Mines from Harmony. Considering the age of this mine, the potential it still holds is almost difficult to comprehend. Read the story on page 16 if you don’t believe me.
Gold aside, this edition contains a rich and interesting miner-als processing feature, delves into the latest IT and communica-tions trends and who is ‘shaking and moving’ in the earthmov-ing and transport sector. Personally, I couldn’t think or recom-mend anything better to read.
gold. Forany oth-r levels
nggin-n so, Ismallstory
pectsg his-frica-
yearsgold over its
mains commit-se its full po-ble. Caledoniad open-ended
Cover story
The trucks have moved more than 350 Mt of material in order to ac-cess high-quality, uncontaminated iron ore buried deep beneath the
surface of the town’s aptly named Ysterberg (iron mountain) range. Th e trucks’ rugged ability fast-tracked operations on top of the surrounding mountains, where the initial rudimentary tracks would have stopped lesser machines.
Since converting the mine to a surface mined operation in 1997, the main burden of work has fallen on the nearly 40-year-old forerunners of the modern-day Komatsu haul trucks. With each truck on the mine having logged over 180 000 hours of ser-
vice, their hard-working ability continues to earn them the respect of
technical experts on the mine. Th e trucks’
legendary reliability and productivity even helped form the basis of the mine’s decision to gradually replace them with the equally reliable Komatsu 730E dump truck, a deriv-ative of the Wabco 170D.
Distinguished serviceTh abazimbi’s Wabco haul trucks have a long history. Th ey were originally purchased and delivered to Sishen iron ore mine in 1976 where they formed the backbone of the massive mining operation for over 20 years. By 1997, the trucks had registered more than 100 000 hours and were eventually retired and replaced by the larger and more modern Komatsu 730E trucks.
“Th ey stayed in service far beyond the original specifi cation of 50 000 service hours and the decision was made to scrap them as they were deemed to be beyond
their serviceable lifespan. One was turned into an open-air museum at the entrance to Kathu in acknowledgement of the trucks’ contribution to the development of Sish-en and the town; the others were sold off as scrap,” says Komatsu Southern Africa’s mining business manager, Frikkie Booyens.
Around the same time, the mine manage-ment at Th abazimbi had concluded feasibil-ity studies and made the decision to begin opencast mining. Th e availability of the scrapped Wabcos was an unexpected wind-fall and 22 of the original fl eet were bought and shipped straight to Th abazimbi to be-gin operations immediately.
Downhill after retirementThere was not to be a peaceful retire-ment for the giants of yesteryear. The mine’s technical service team, headed by
KOMATSU WABCO 170DS
Thabazimbi’s iron warriorsA remarkable fleet of Wabco 170D dump trucks is at the heart of Kumba Iron Ore Thabazimbi’s transformation from a limited underground operation to a thriving opencast surface mine.
Ins ide Mining 03 /20134
(iron mountain) range. Th e trucks’ ruggedability fast-tracked operations on top of thesurrounding mountains, where the initialrudimentary tracks would have stoppedlesser machines.
Since converting the mine to a surfacemiined dddddddddd opopopopoppppopoopoppperererererererratataataatattion in 1997, the main burdenof work has fallen on the neararaaaararrlylylylyyyyyyyy 444444440-0000000 yeyeyeyeyyeyeyeyyear-oldforerunners of the modern-day Komatsuhaul trucks. With each truck on the minehaving logged over 180 000 hours of ser-
vice, their hard-working ability continuesto earn them the respect of
technical experts on themine. Th e trucks’
Distinguished serviceTh abazimbi’s Wabco haul trucks have a longhistory. Th ey were originally purchased and delivered to Sishen iron ore mine in 1976 where they formed the backbone of themassive mining operation for over 20 years.By 1997, the trucks had registered morethththhhthhhhhhananannnnn 1111111000000000000000000000 00000000000 hours and were eventuallyretired and replaced by ththhththhhthhe lalalalalalalalalaaaaargrgrgrgrgrgrgrgrrgrgrgggerererererereeeerrr aaaaaandndndnd moremodern Komatsu 730E trucks.
“Th ey stayed in service far beb yoyoyyondndndn theoriginal specifi cation of 50 000 servicehours and the decision was made to scrapthem as they were deemed to be beyond
as scrap,” says Komatsu Southern Africa’smining business manager, Frikkie Booyens.
Around the same time, the mine manage-ment at Th abazimbi had concluded feasibil-ity studies and made the decision to beginopencast mining. Th e availability of thescrapped Wabcos was an unexpected wind-fall and 22 of the original fl eet were bought and shipped straight to Th abazimbi to be-gin operations immediately.
Downhill after retiremenenenenenennnnnttttttttThere was nononnnnnnotttt totototoo bbbe a peaceful retire-ment forrr tthe gggiants of yesteryear. TTTTTTTTThehhehehehehmine’s technical service team, hheadedd d ddd byyyyyy
Cover story
5Ins ide Mining 03 /2013
general engineering supervisor Francois Steyl, recalls that the trucks were put straight to work on the mountainous haul roads of the mine from the beginning. It was backbreaking work on top of the mountains, with road surfaces which are extremely bumpy.
Unlike most other opencast mines, the hauls at Thabazimbi are downhill, and operators carrying 150 t of material needed nerves of steel and tremendous trust in the equipment to bring them down the steep gradients safely. In ad-dition, many of the Wabco trucks reg-ularly carried loads far in excess of the manufacturer’s specifications.
But despite these challenges, the trucks remain productive, boasting overall availa-bility of more than 85%, which has enabled them to move ‘a mountain’ of mate-rial that would easily fill
Wabco history and 170D specifications
• Wabco entered a joint venture with Komatsu and Dresser in 1988 until 1994 when Komatsu took ownership of the entire operation
• The 170D model was introduced in 1965 and delivered to Sishen in 1976
• 50 ℓ Cummins diesel power plant rated at 1 600 hp
• General Electric 776 wheel motors rated at 300 kW output each
• Payload of 150 t• Weight: 100 t
an area of 1 km x 1 km x 100 m over a haul distance of between 12 and 14 km.
Secrets of successIn the case of Th abazimbi, the partnership between man and machine is an important one. Th e mine’s technical team carefully maintains each piece of equipment on the mine and are able to get the best out of them as a result. Th e longevity of the ma-chines bears testament to the treatment they were aff orded previously by techni-cians at Sishen and currently by the team at Th abazimbi.
“As long as the trucks are maintained properly, they give very few problems and the frames are still in good condition,
Mining the mountains of Thabazimbi requires a unique breed of man and machine that can adapt and thrive in some of the toughest mining conditions in the country
and operators carrying 150 t of materialneeded nerves of steel and tremendous trust in the equipment to bring themdown the steep gradients safely. In ad-dition, many of the Wabco trucks reg-ularly carried loads far in excess of the manufacturer’s specifications.
But despite these challenges, the trucksremain productive, boasting overall availa-bility of more than 85%, which has enabledthem to move ‘a mountain’ of mate-rial that would easily fill
1 600 hp• General Electric 776 wheel motors rated at300 kW output each
• Payload of 150 t• Weight: 100 t
them as a result. Th e longevity of the ma-chines bears testament to the treatmentthey were aff orded previously by techni-cians at Sishen and currently by the teamat Th abazimbi.
“As long as the trucks are maintainedproperly, they give very few problemsand the frames are still in good condition,
Ins ide Mining 03 /20136
Cover story
despite their age. Th e main reason why we plan to withdraw them in future is because the technology has aged and safety require-ments have become far stricter. If it wasn’t for the dated technology and lack of roll-over protection systems (ROPS) and fall on protection systems (FOPS) for the cabs, I am sure that our crew could keep the trucks running for another 20 years,” laughs Steyl.
Th e fi rst major work done on the trucks was to remove the electric trolley-assist couplings, which were not required on the mine. Th ereafter the PLC management sys-tem was upgraded from Statex 1 to Statex 2 spec- ifi cations, which allowed far
greater management of the vehicles’
performance and dynamic braking abilities. Th e PLC upgrade proved to be the most important modifi cation to the truck and dramatically reduced downtime due to mi-nor relay related problems. Other modifi ca-tions, including suspension upgrades, were made to compensate for the mine’s initially rough haul roads. In later years the mine also transformed the road system inside
Kumba Thabazimbi mine facts
• the mine has been operating since 1931 • it produces primarily high-grade haematite ore (more than 62% iron content)
• it is situated in the Limpopo province • mining takes place in three pits using conventional opencast methods (including blasting, drilling, loading and hauling)
• ore is particularly low in contaminants• total production in 2011: 0.9 Mt.
the mine to further reduce tyre and engine maintenance on all machines in the mine.
Well-liked machineIt doesn’t matter how good a piece of equipment is if you can’t maintain it. Wab-co trucks were designed and built by peo-ple that understand how a workshop oper-ates. They are easy to service in the work-shop or, if need be, to maintain out in the field. Like their Komatsu “big brothers”, the Wabco 170D are properly engineered machines that are built tough and reliable to last for decades.
Like their Komatsu “big brothers”, the Wabco 170D are properly engineered machines that are built tough and reliable to last for decades
In each issue, Inside Mining offers advertisers the opportunity to promote their company’s products and services to the appropriate audience by booking the prime position of the front cover, which includes a two-page feature article. The magazine offers advertisers an ideal platform to ensure the maximum exposure of their brand. Please call +27(0)11 465 5452 to secure your booking.
Our vision is to continue to build our precious
metals mining business in Africaby remaining focused on:
People Action ResultsMaking it happen, motion, movement, response to name but a few synonyms. People who have a sense of belonging and ownership make things happen. Action requires proper planning, leading, organising and controlling. These are the basic principles of any business. We at Pan African Resources believe in getting things done the right way.
“With the right attitude, human beings can move mountains. With the wrong attitude, they can be crushed by the smallest of grains.”
A group of people who have entered into a positive relationship and who believe in having a positive attitude towards any challenge that they are faced with, inevitably leads to achieving the planned/desired results. Achieving our targets is beneficial to all. We will continue to strive towards achieving all of our targets set without compromising the safety and health of our employees.
“In the real world ... it’s the relationships – the formal and informal networks of people – that really govern how the organisation runs and how value is created”. Michael Schrage – Wall Street Journal – March 1990.
We believe that our People – their inside and not their outside – are our most valuable asset. Pan African Resources believes in fostering these relationships by walking the talk with regards to integrity and honesty. Our employees must share in the wealth created by the team and hence we strive to improve compensation and the standards of living.
The African Focused Precious Metals Producer
GrowthStakeholderSustainableProfitable
Achieving this through
Hot seat
Ins ide Mining 03 /20138
Good business acumen could be considered the primary contrib-utor to the company’s success, which is impressive considering
it was only offi cially established in the mid-dle of July 2009. Th e company’s growth has doubled every year since its inception.
Proudly AfricanWith a BBBEE Level 4 status and 51% black women ownership, Capital Star Steel’s Afri-can business approach could be considered unique – while its head offi ce is based in Rivo-nia, South Africa, its world-class, large-scale piping manufacturing facility is situated in Maputo, Mozambique; it also has numer-ous global sales and distribution centres. Its
position within the SADC region ensures that the man-ufacturing plant supports the surrounding regions’ eco-nomic and social-economic agendas, thereby increasing the competitiveness in the region as a whole in relation to the world economy.
“Th ere are numerous rea-sons for choosing Mozam-bique as our manufactur-ing hub,” explains the MD, Kennith van Rooyen. “We are able to source the lowest cost raw materials, without compromising on quality. Our cost-competitive stance is further improved as a result of the country’s free trade zone status. We have access to a vibrant pool of cost-eff ective, highly skilled labour and we benefi t from cheaper electric-ity rates. We are also perfectly situated near the Maputo port and the main arterial road lines that lead to South Africa, Botswana, Angola, Zimbabwe, Zambia and Tanzania. Our combined functionality enables us to deliver on time and at the most competitive rates to any project – in Africa or anywhere on the globe.”
Th e Mozambique subsidiary, Capital Star Steel SA, employs 200 people and averages an
85% local labour ratio. It also has the largest manufacturing capacity across the entire Af-rican continent: 200 000 tph of steel piping.
A third of its production goes off shore, a third into Africa and a third into South Af-rica. Th e immediate focus for the company remains the African continent. So much so that the company is setting up an offi ce in Kenya, on the back of the oil and gas indus-try, but Van Rooyen has no doubt it will grow into a mining supply business for the East African rim as well.
To date, Capital Star Steel has worked in Nigeria, Eritrea, Kenya, Mozambique, Bot-swana, South Africa, Swaziland, Lesotho, Namibia, Zambia (on the copper belt) and
CAPITAL STAR STEEL
World-class piping Having established a solid reputation in the oil, water, gas and petroleum industry in just fi ve years, carbon steel piping specialist Capital Star Steel has every intention of developing a similar reputation in the mining sector. And it’s well on its way.
Company timelines
Beginning 2008 Capital Africa Steel approaches the Mo-zambique government to start negotia-tions to set up the production facility
2009 Commissioning of 100 000 m² plantAugust 2009 ISO accreditationMarch 2010 API accreditationEnd 2010 First expansion of plant by 15 000 m² Beginning 2011 Introduction of RFID system – electronic
barcoding to track pipesEnd 2011 BEE acquisition of CSS by Mahuma In-
vestment HoldingsMid 2012 Level 4 BBBEE status acquiredAugust 2012 OSHAS 18001 accreditation2012/2013 Second plant expansion to 20 000 m²
MD Kenneth van Rooyen and executive director Gwendolyn Mahuma at their
Mining Indaba stand
unusual pipe size. To accommodate the client, we bought size rolls and rolling sys-tems specifi cally for that specifi cation,” explains Mahuma.
“We went the extra mile to meet Harmony’s sizing specifi cations, providing a long-last-ing solution while saving them money. It took us only fi ve months to complete the project, from the date of order through to delivery completion.”
Th e company is also supplying all the pip-ing for Gold One International’s Cooke plant, which is currently being upgraded to accom-modate an expansion.
“Good project references are starting to spread in the industry and we are develop-ing a solid reputation. It’s hard to be the ‘new kid on the block’, but we won’t be for much longer,” Van Rooyen concludes.
Hot seat
9Ins ide Mining 03 /2013
the Democratic Republic of the Congo. “Th e establishment of a Kenyan subsidiary repre-sents the exact model we intend to replicate across the continent: establishing local facil-ities that are capable of delivering signifi cant business to the country and its neighbours. Our preference is to partner with locals, which delivers enormous downstream value in the country in terms of job employment, local procurement, etc.” states Van Rooyen.
International recognitionCapital Star Steel’s major objectives focus on annual improvements, creating a brand that is synonymous with service excellence, quality and deliverables. Th e company is heavily invested in gaining internationally recognised accreditations and certifi cates. To this end, it has been awarded API 5L and 5CT from the American Petroleum Insti-tute, as well as ISO 9001:2008. It has also just completed its ISO 18000 accreditation. “Combined, the accreditations provide a backbone for the company’s continuous improvement strategy and assist in pro-moting its ability to undertake and com-plete high-profi le, high-value projects,” says Van Rooyen.
The true attraction of miningWhile Capital Star Steel has and continues to supply its product to mines via distrib-utors, its focus for the future is to develop relationships directly with mining compa-nies, which it anticipates will lead to direct supply orders. “It is a growing market trend that we intend to deliver on. Relationship
development enables us to understand the demands of mining companies so we can meet their needs and provide technological know-how on our products to support the mining sector,” says Gwendolyn Mahuma, executive director.
“Our participation in the Mining Indaba 2013 is a strategic decision to introduce ourselves to the mining sector,” she adds. Th e company still believes, however, that distributors have a role to play in value add-ing and will continue to partner with them as well.
Th e company has already established a local stockyard to facilitate convenience and quick delivery. “Th e mining sector is very important to us and at any given stage contributes between 30 and 50% to our business.”
The case study (Harmony Gold’s St Helena project)“We recently supplied 22 km of piping, with cement mortar lining, for a new tailings dam slurry line at the St Helena gold mine in the Free State. Th e client (through a dis-tributor) had designed the system using an
performance Capital Star Steel in a nutshell
• world-class manufacturing facilities• lowest cost raw materials• low-cost logistics (globally)• situated near the harbour – improves importing and exporting timeframes
• dollar-based business – well suited to trading with international firms in Africa
• Mozambique facility is situated in a free trade zone• access to vibrant pool of cost-effective, highly skilled labour
• access to cost-competitive electricity rates• comprises an experienced management team• uncompromising on quality.
“Relationship development enables us to understand the demands of mining companies so we can meet their needs and provide technological know-how on our products to support the mining sector.” Gwendolyn Mahuma
Hot topic
Ins ide Mining 03 /201310
H aving worked within the Zest WEG Group for 10 years, in-cluding the past two years at EnI Electrical, Naude brings a
vast amount of experience and expertise to the company and his new position. Re-placing former MD Richard Miller – one of the company’s founding members, who he has worked with closely – his path to suc-cess is an inevitable one.
“I have fulfi lled a variety of diff erent roles and functions during my time with the group, from sales engineer and sales manag-er to business development manager, sales and marketing manager, and now MD. I attribute my growth in the company to my passion to perform and the great mentors I have worked with: former Zest WEG Group chairman, James Blakemore; current group CEO, Louis Meiring; and Zest WEG Group sales and marketing director, Gary Daines. Th ey identifi ed my potential, opened doors and allowed me to shine,” says Naude.
Both Miller brothers, Richard and Rob-ert, will remain part of the organisation for the remainder of 2013 to facilitate the full handover process. Th ey will also remain active board members. “Th e Millers built this organisa-tion around electrical and instrumentation construc-tion, largely in the mining sector, and I plan to ensure this company legacy lives
on. Why change what is already an extreme-ly successful business model?”
Strategically, Naude’s appointment was al-ways part of the company’s succession plan. “Since joining the company, I have been groomed and developed to sell and market all the group brands. Th e diversity we off er, in terms of products and services, drives me. Considering EnI works closely with all of its sister companies, I have no doubt that to-gether, the business synergies will continue to deliver growth, individually and for the group as a whole.”
70% of EnI Electrical’s current workload dovetails with Zest WEG Group’s contracts at present, Naude notes. Coming together regularly, the group off ers clients packages, whichs result in multiple advantages, includ-ing competitive pricing, on-site synergies between the contract companies and im-proved time frames.
The proof is in the puddingIn December last year, the Zest WEG Group, including EnI Electrical and subsid-iary Shaw Controls, successfully completed
an extensive contract, worth in excess of R200 million, at Lubambe Copper’s Konko-la North project in Zambia.
This is the single biggest project of its kind that the Zest WEG Group has man-aged from a perspective of involvement from all group companies. EnI Electrical was instrumental in mitigating any delays in the construction phase, covering all electrical equipment and instrumentation, and ensuring the project came in on time and within budget.
The scope of the Zest WEG Group’s con-tract, awarded in 2011, covered the sup-ply of all electrical and instrumentation elements for the expansion infrastructure and wet plant. This includes MV and LV electric motors, MV variable speed drives (VSDs), phase shift transformers and all motor control centres (MCCs), both con-tainerised and free-standing, required for the entire facility.
EnI Electrical was responsible for the installation of all electrical infrastructure from the main utility substation to the consumer substation and the main motor
ENI ELECTRICAL’S NEW MD
Ensuring the legacy lives onIn January this year a new, but very familiar leader took the helm at Zest WEG Group’s subsidiary EnI Electrical. Former sales and marketing manager Trevor Naude aims to excel in his new position as MD, attributing his current and ongoing list of accomplishments to ‘great Zest mentors’, writes Laura Cornish.
ss. Th ey will also remainbers. “Th eganisa-cal and
onstruc-mining
o ensurey lives
RIGHT Trevor Naude, newly
appointed MD of EnI Electrical
FAR RIGHT The early days at EnI
Electrical, from left: Richard Miller, Mike Kelly, Robert Miller
and Dave Vink
11Ins ide Mining 03 /2013
control centres (MCCs), as well as the sup-ply of all electrical equipment, including cables, racking and instrument cables. The electrical and instrument reticulation in-cluded fibre optic communications from the MCCs to the plant motors.
This work package included 11 kV over-head line reticulation in and around the plant, all lighting and small power, includ-ing six scissor high masts, electrical retic-ulation to all the ventilation shafts, five individual substations and the supply of all electrical cables and equipment for the un-derground portion of the project.
The Konkola North copper project, a 50:50 joint venture between African Rain-bow Minerals (ARM) and Brazilian min-ing company Vale and project-managed by DRA, is located near the town of Chil-ilabombwe, adjacent to the Democratic Republic of the Congo’s border and north of the Konkola copper mine. The mine is designed for a peak production of 2.5 Mtpa of ore and 0.6 Mtpa of waste rock.
“Zest WEG Group companies have suc-cessfully completed projects individually or in combination for both ARM and Vale in the past,” says David Claassen, group busi-ness development manager at Zest WEG Group. “The Konkola North project repre-sents a significant milestone for our group because all our companies contributed.
“Effectively, one company took responsi-bility for a host of financial and technical solutions, and we will continue to harness this capability, reflecting our strategy to add value by integrating Zest WEG Group companies where products and services are complementary.”
Succeeding in a tough financial climate“Looking back over the past year, we have experienced an extremely successful 2012, with even more growth than anticipated, de-spite the tough fi nancial climate. Th is comes off the back of increasing mining activities in Africa, which we aim to gain further market share in years to come,” says Naude.
In 2012, EnI Electrical had 417 employ-ees in various African countries at its peak contracts period. “We are also already in the process of signing signifi cant contracts for 2013, with seven contracts fl owing over from last year.”
A lot of the company’s achievements in Af-rica can be attributed to the strong EnI Elec-trical team operating in the region. To date, EnI Electrical has completed work in Zambia, Tanzania, Mali, Ghana, Burkina Faso, Mo-zambique, Uganda, Namibia and Zimbabwe. “We have managed to secure a signifi cant
Recent and current EnI Electrical contracts
• Zambia: Konkola North copper mine (African Rainbow Minerals and Vale SA joint venture)
• Burkina Faso: Perkoa zinc mine (Nantou Mining)• Beira port ship loading facility: 100% complete• Tanzania: three large brownfield projects (African Barrick Gold)
• Ghana: Tarkwa (Gold Fields)• South Africa: Tswelopele chrome fines plant
(Merafe/Xstrata Chrome joint venture)• Zimbabwe: Hwange power station (Zimbabwe
Power Company)• Mali: Loulo-Gounkoto complex (Randgold
Resources)
portion of the electrical construction mar-ket in 2011/12 and we’re well positioned to consolidate this position in the future,” he confi rms.
Th e company is currently in the process of establishing local business entities in Tanza-nia and the Democratic Republic of the Con-go, where it has substantial workloads.
For this year, Naude anticipates that Afri-ca will be the greatest growth contributor to the company.
Signifi cant growth does not mean compro-mising in other business areas; the company has an “impeccable safety record” – particu-larly over the past few years, which Naude attributes to adherence to policies and high standards in the construction industry.
Before ZestNaude’s professional career started in the mining industry. After completing his na-tional diploma in electrical engineering and a management diploma from Wits busi-ness school, he was employed as a junior engineer at Palabora Mining Company. He joined Zest in 2003 as a sales engineer.
ABOVE EnI Electrical construction team at Konkola North Copper mine in Zambia
Ins ide Mining 03 /201312
Precious metals
Following the successful comple-tion of its indigenisation deals in September last year, Caledonia has now finalised its plans to ex-
pand the mine. “Our intention to do this has been planned for a long time but we had to wait for the right timing, which was entirely dependent on completion of the mine’s indigenisation,” explains Mark Learmonth, corporate development vice president for Caledonia.
As a fully indigenised entity, Blanket can now develop and implement its long-term growth strategy. The mine’s newly recon-stituted board of directors, which includes the various indigenous Zimbabwean share-holder representatives, has approved an expansion budget for 2013 and strategic plan that covers the period 2013 to 2017.
“The combination of robust infrastruc-ture and an operation that has been
developed properly by Caledonia and its previous owners has given us the confi-dence, and the perfect platform, to invest in the project and improve and expand it further,” says Learmonth. An impressive statement considering the mine is over 100 years old and already delivered over 1 Moz of gold.
Increasing production so dramatically, by 90% over the next three years, includes extending an existing sub-vertical shaft from 750 m to below 1 000 m, while si-multaneously making minor upgrades to the crushing plant as well. “This is proof of our commitment to Blanket and Zimba-bwe. Despite the numerous challenges we have experienced over the years, we believe in this mine and believe it still has plenty of value to offer, bearing in mind that we already have the track record of having in-creased production by 256% since 2010.”
UNVEILED
Blanket’s true potentialAfrica-focused gold mining company Caledonia Mining Corporation has developed an operational model aimed at increasing gold production at its Zimbabwe gold mine, Blanket, from 40 000 ozpa in 2013 to 76 000 ozpa by 2016. And that is just the beginning, writes Laura Cornish.
13Ins ide Mining 03 /2013
Precious metals
Learmonth describes Blanket as a ‘pleas-ure’ to operate. “Because it is shallow, com-pared to South African gold mines, cooling is not required, neither is pumping. The rock is competent and the 800 strong la-bour force, comprising entirely of Zimba-bwe locals, is well-educated and hard work-ing. The mine’s major crisis of a few years ago – no power – is entirely resolved fol-lowing the installation of 10 MW of stand-by diesel power and the negotiation of a re-vised power supply agreement. Blanket is generating cash, which we are reinvesting into the operation and into the country.”
Based on current resource fi gures, the mine has a 14-year lifespan, which could be considerably lengthened should it s ongoing exploration deliver favourable results. Blan-ket has 18 satellite properties in its portfo-lio, the fi rst two of which are expected to start producing in the last quarter of 2013. Any additional ounces produced from these projects will be over and above the compa-ny’s targeted production increase.
Surplus capacity to accommodate increased productionCaledonia has already invested substantial-ly in improving the efficiency of Blanket’s metallurgical plant after it was acquired from Kinross in 2006. Blanket now has surplus capacity (particularly for hoisting and in the carbon-in-leach (CIL) circuit) to accommodate future mine expansions. “As a result of this upfront, early-stage invest-ment, very little capital is required now to see the mine and plant achieve our bigger production targets.”
While Blanket’s current gold production of approximately 40 000 ozpa equates to a throughput of 1 000 tpd, its current
total hoisting capacity is 3 000 tpd and its CIL circuit capacity 3 800 tpd – indi-cating its status for scaling up on produc-tion immediately. “Minor amendments to the plant’s milling circuits will see its capacity increase to 3 000 tpd as well,” Learmonth adds.
Expanding the mineDevelopment of the existing ore resources above and below the current lowest min-ing level (750 m) at Blanket’s No 4 Shaft has commenced and is planned to produce an additional 36 000 ozpa of gold by 2016: • an additional 8 000 ozpa of gold will be
achieved from the start of 2014 from de-velopment at the mine above the 750 m level and a further 4 000 ozpa will be achieved from early 2015
• 24 000 ozpa is planned to start from the last quarter of 2015 from the No 6 Winze project below the 750 m level.
No 6 WinzeThe deepening of the No 6 Winze from 750 to 1 080 m level will allow rapid access to the Blanket ore body below 750 m. The pre-production investment in this project is estimated to be US$3 million. Produc-tion is scheduled to start in Q4 of 2015 and will progressively increase to about 600 tpd, which will give rise to incremental gold production of 24 000 ozpa. “This pro-ject is of extreme significance to us, which will allow us to continue following the gold reef at deeper levels.”
510 and 630 Level haulagesThese projects will open up new mining ar-eas on known resources at AR South and Lima, and will allow a 200 tpd increase in ore production from Q1, 2014, increasing to 300 tpd in 2015 and should result in gold production of approximately 8 000 oz in 2014 and a further 4 000 oz in 2015.
750 Level haulageTh is project will connect the No 4 Shaft with the known ore bodies at Eroica and Lima on 22 Level (750 m below surface) and will pro-vide access for mining at Eroica and Lima be-tween 630 and 750 m below surface. Cross-cuts from the 750 Level haulage will provide platforms for further exploration of the ex-isting ore bodies above and below 750 m.
It is envisaged that the 750 Level haulage and related exploration will be completed by 2016. Budgeted investment on project and related exploration drilling for 2013 is US$669 000 and US$261 000 respective-ly. Projected further investment between 2014 and 2017 is US$2.2 million. No guid-ance as to future production arising from
ABOVE Caxton Mangezi, Blanket general manager, and Stefan Hayden,
Caledonia CEO BELOW An aerial view of Blanket
Ins ide Mining 03 /201314
Precious metals
this project can be provided until the ex-ploration work and subsequent feasibility study have been completed.
The satellite properties – short-term brownfield potentialBlanket holds 18 licensed satellite explora-tion properties, the furthest being 42 km from Blanket’s plant, on which there has been some small-scale historic gold mining activity. Any ore mined from the satellite properties will be crushed and transported to the metallurgical plant.
“Th ree satellite properties, in particular, GG, Mascot and Eagle Vulture, are currently undergoing exploration and underground de-velopment work. We anticipate these projects will deliver further upside potential to the Blanket operation,” Learmonth reiterates.
Th e GG project is 7 km from Blanket, con-nected by an existing unpaved road, and was previously a small, shallow, surface op-eration. “We commenced with shaft sinking work to 120 m in 2012, which will be used for underground exploration, development and production.” The shaft has currently been sunk to a depth of 75 m and work has commenced on mining the first station and development level 60 m below sur-face. Further stations will be developed at the 90 and 120 m levels. In the process of sinking the shaft, gold mineralisation has been intersected between 45 and 60 m be-low surface with grab-sample gold grades of between 6.0 and over 10 g/t. Budgeted pre-production investment at GG for 2013 is about US$422 000.
The Mascot project is 42 km from Blan-
ket, mostly connected by a paved road, and was previously mined down to 300 m below surface. Drilling under-taken by Blanket indi-cated the existence of two mineralised zones 50 to 70 m on either side of the mined-out area, with gold grades of between 3.5 and 4.6 g/t.
The existing shaft at Mascot has now been re-accessed down to 180 m below surface and has been found to be in good condi-tion. Development work has commenced towards the two identified mineralised zones. Budgeted pre-production invest-ment at Mascot for 2013 is US$366 000.
The Eagle Vulture project is 40 km from Blanket, mostly connected by a paved road, and was previously mined down to 70 m below surface. Surface exploration work undertaken by Blanket indicated the existence of two extensive, unmined mineralised zones on either side of the old mine working zone. Development has commenced towards the identified mineralised zones.
Budgeted and projected pre-production investment at Eagle Vulture is US$702 000.
GG and Mascot are expected to com-mence production in Q4, 2013, while pro-duction at Eagle Venture is anticipated to commence in early 2015. The eventual pro-duction rate from GG, Mascot and Eagle Vulture and their lifespans will be deter-mined once exploration and development work and metallurgical test work on the mined mineralisation has been completed and a resource base has been identified.
Two further satellite properties have been identified for near-term develop-ment: Abercorn, which is approximately 20 km from Blanket, and Sabiwa, which is adjacent to Blanket but is not connected to Blanket’s underground infrastructure. The combined budgeted investment at Sabiwa and Abercorn in 2013 is US$1.3 million, with further investment of US$4.5 million projected for 2014 to 2017.
Increasing production by 90% over the next three years includes extending an existing sub-vertical shaft from 750 m to below 1 000 m, while making minor upgrades to the crushing plant
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Ins ide Mining 03 /201316
EVANDER – HARMONY’S RAGS
Pan African’s riches
The saying, ‘one man’s rags are another man’s riches’ couldn’t be more true for precious metals producer Pan African Resources. Its acquisition of Harmony Gold subsidiary Evander Gold Mines, now unconditional, is the perfect example, writes Laura Cornish.
On 28 February 2013, Pan Afri-can Resources (PAR) took con-trol of the subsidiary – nine months after the R1.5 billion
deal was first announced. The deal encom-passes all the operational and non-opera-tional Evander shafts, its process plant and all tailings material.
While the Evander-based, semi-deep lev-el gold mine sat comfortably in Harmony’s portfolio for years and was a significant cash contributor to the group, the com-pany’s cash interests today lie with new (Wafi-Golpu) and priority projects. “Un-der Pan African’s umbrella, Evander will prosper. The mine needs an owner that can invest not only in its organic projects but also ensure that its long-term (brownfield) potential will be realised,” says Jan Nelson, former PAR CEO.
Nelson announced his resignation on the last day of February. It became effective on 1 March 2013. COO and CFO, Ron Hold-ings and Cobus Loots will fulfil Nelson’s role in the interim, and ensure Evander de-livers on all its promises.
“We are delighted to finally take full con-trol of the mine,” Nelson continues, “A world-class ore body with an exceptional team of people will ensure that Pan Afri-can continues to deliver profitable, sus-tainable stakeholder growth. In addition to its 100 000 oz of annual gold produc-tion, Evander provides Pan African with a healthy project pipeline that provides for significant growth possibilities and flexi-bility,” he continues.
All cash and profits generatedby Evander from 1 April 2012 onwards go to PAR. “For a company of our size, averaging about
95 000 ozpa of gold, Evander immediate-ly doubles our yearly output to almost 200 000 ozpa and reduces the risks asso-
ciated with being a single mine operator.It also increases our employee head count from 2 000 to 5 000.”
The mine also increases the PAR’s reserve base dramatically, from 1 to 9 Moz at a
Evander’s final contribution to Harmony
Evander’s generated production profit, as published by Harmony, for the full year ended 30 June 2012 was £52 million (R711.88 million), before tax and other charges, up from £16.7 million for the previous year. This was mainly the result of Harmony investing approximately £21 million to upgrade and improve the underground rock handling and ventilation infrastructure at the mine.
Precious metals
17Ins ide Mining 03 /2013
grade of 7.7 g/t, and increases its overall resource base from 3 to 35 Moz at a grade of 8.16 g/t. “But it is the mine’s brownfield potential that excites us the most.”
In the short to medium term“Th e upfront focus is to increase the grade and reduce the operating costs at Evander’s single operating No 8 Shaft,” Nelson ex-plains. Th is will be achieved if PAR success-fully implements a mining model that sees a split between reef and waste. Th is should take about 24 months to achieve, Nelson notes. Th e entire 100 000 ozpa production from Evander is delivered via this single shaft, which alone has another 10 opera-tional years left.
One of the most exciting prospects lies not in the mine itself, but in its tailings. Th ere is approximately 203 Mt of tailings material on-site, which PAR has started evaluating internally. “We are aiming to make a deci-sion on how to maximise on the potential opportunities the tailings may off er within the next 12 months. We have already re-defi ned its purpose by changing its name from Harmony’s Mini Libra to the Evander Tailings Reclamation Project (ETRP). We believe a plant capable of processing around
240 000 tpm at a grade of no more than 0.4 g/t is a defi nite possibility.”
Over the past two years, PAR’s tailings re-processing expertise has risen substantial-ly, following the successful delivery of its Phoenix platinum-recovery-from-chrome project and the imminent start-up of its Barberton Tailings Reclamation Plant pro-ject. Considering this project has a healthy and sustainable future on the back of just 12 Mt, the potential for Evander’s tailings is enormous.
In the medium to long termNo 7 Shaft has all the necessary infrastruc-ture for mining in the old areas, and we will consider reopening some of these old mining sections. Th ere is also the 2010 pay Channel to the north-east of 7 Shaft where
we need to explore where the reef lies, but this is something we will look at further down the line.
“No 9 Shaft is currently on care and main-tenance. It is lower in grade, but we will evaluate the viability of reopening this shaft as well.”
Evander South and Poplar require a pre-feasibility study to determine how best to develop them. “Th e two projects comprise a 15 Moz resource and could deliver up to 200 000 ozpa, but require a strategic partner to help fund their development. PAR is al-ready engaging with Chinese investors about possible partnerships for the projects.”
Rolspruit, an extension of No 8 Shaft, is a high-grade operation (14 g/t) starting at depths of about 2 800 m. Th e ore body has been drilled and contains 10 Moz.
OPPOSITE A view of No 7 Shaft headgear in the foreground, with No 8
Shaft in the backgroundRIGHT The mills inside the process plant
BELOW The Evander plant produces 100 000 ozpa of gold
Precious metals
Ins ide Mining 03 /201318
Like most juniors, regardless of com-modity focus, taking an asset from exploration through to production is always the primary priority. En-
suring its Free State-based DBM project becomes operational as quickly as possible is undoubtedly Wits Gold’s priority, but is just one of a few the company is work-ing on to change from exploration status to production.
Exploration and the development of DBM“The combination of our assets positions us as the world’s fifth largest gold resource holder, which in total equates to 157.2 Moz of gold and 271 Mlb of uranium oxide, in what is still considered the premier gold location in South Africa,” outlines Wits Gold’s CEO, Philip Kotze. The company has
8.5 Moz of probable gold reserves defined within these resources.
Wits Gold’s four assets – DBM, Bloem-hoek, Robijn and Beisa – are in the heart of South Africa’s gold mining territory and are surrounded by numerous operating mines, including Harmony’s Joel, Mer-riespruit, Bambanani and Unisel mines, as well as Gold Fields spin-off Sibanye Gold’s Beatrix mine. “The synergistic opportuni-ties for us in the near future will be huge,” Kotze states.
DBMDBM is Wits Gold’s most advanced project and is progressing well towards construc-tion start-up, planned for next year. It com-prises a triangular block measuring some 22 km², located between the main Welkom
goldfi eld to the north, and the Beatrix and Joel gold mines to the south. Th e project area contains four gold-bearing conglomer-ates. Th ese comprise the Beatrix, Kalkoenk-rans, B and Leader reefs, all of which occur at the relatively shallow depths of between 480 and 1 250 m below surface – and all well understood as a result of previous mining within the region.
Following the completion of the
WITS GOLD
A junior with some major aspirationsA junior mining company with exploration assets aspires to one thing: to become a producer as quickly as possible. South African gold company Wits Gold intends to do just that with its DBM project and is working to achieve production and growth quickly, writes Laura Cornish.
The three-tiered approach
Exploration: commercialise the exploration base through asset sale or joint venture partnerships to advance projects up the value curve.Project development: focus on shallow projects (less than 1 000 m depths) and establish strategic partnerships for deeper projects (more than 1 000 m depths).Acquisitions: focus on gold mines with a turnaround potential; industry consolidation will provide further opportunities.
From beginning to end, any project needs critical attention
to detail. Our sound governance, monitoring, control
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prefeasibility study (PFS) in July 2012, international consultants Royal HaskoningDHV (RHDHV) (formerly Turgis Mining Consult-ants) and MDM Engineering (MDM) were appointed to complete the fi nal feasibility study for DBM. RHDHV is responsible for the detailed mine and associated infrastructure designs, while MDM will focus on the metallurgical plant and related design aspects. Th e detailed study is expected to be completed during the third quarter of 2013.
DBM will be a shallow underground mine comprising a vertical twin shaft system to 660 m – “extremely shallow in South African gold mining terms” – with average gold production expected to be 200 000 ozpa over an 18-year life of mine (LOM). Production is expected to peak at 246 777 oz at 5.5 g/t during year nine and fi rst gold production is expected 47 months after shaft sinking com-mences. Th e PFS estimates production cash costs of US$628/oz (R5 526.34/oz) with peak capital funding of R2.37 billion.
Th e fi nal feasibility study will refi ne certain aspects identifi ed in the PFS, aiming to improve mining effi ciencies by introducing safer, semi-mechanised mining equipment and down-dip mining methodologies. Th e PFS indicates that the semi-mechanised op-tion will be the most cost-eff ective mining method for DBM.
Th e project has a total indicated resource of 7.5 Moz, which in-cludes an indicated resource of 5 Moz at an average grade of 5.8 g/t from a high-grade, shallow zone that includes 3.1 Moz in total re-serves to a depth of 1000 m below surface.
“If our expectations go according to plan, we will commence with shaft sinking and underground development in the fi rst quarter of 2014 and the construction of the metallurgical plant two years lat-er. We want to deliver fi rst gold in 2018.” Th e company has already applied for the necessary mining right, which it is hopeful of being granted before middle of 2013.
Bloemhoek“Th e Bloemhoek area constitutes what we believe to be a signifi cant continuation of Beatrix mine’s reefs, indicating signifi cant synergy
Key statistics of Bloemhoek:
Reserve 31.6 Mt at 5.34 g/t (5.4 Moz)Total resource 63.1 Mt at 6.9 g/t (14 Moz)Average production 224 000 ozpaLOM 23 yearsPeak funding R4.7 billionLOM capex R9.9 billionAverage cash costs US$675/ozMine establishment period five years plus a two-year ramp-up
OPPOSITE Wits Gold’s most advanced exploration asset is the DBM project
ABOVE The fi nal feasibility study for the project is under way
Precious metals
Ins ide Mining 03 /201320
and collaboration potential. Th is is a long LOM project containing the same reefs as its adjacent neighbours, and at similar depths and grades.”
Th e mine was declared economically viable in October 2009 following the completion of a PFS. It will be a ‘medium depth’ operation, of between 1 300 and 2 400 m. Wits Gold acquired additional properties in December 2011, which extends the southern high-grade resource channel at the Bloemhoek project.
An acquisitionIt is no secret that Wits Gold is on the acqui-sition trail and the unsuccessful completion of purchasing Evander from Harmony Gold has not been a deterrent. “Th e market does not ascribe full value to our large resource base and we remain dependent on capital raising exercises from our shareholders for cash fl ow. A producing mine can assist us in funding our exploration pipeline, and as a
producer, our shares will be rerated and in-crease in price accordingly.”
“We believe there are numerous acquisition opportunities in the market and right now we are looking at Great Basin Gold’s Burnstone operation, which is currently on care and maintenance,” explains Kotze.
Controversy regarding the reasons for Burnstone’s failure continues to circulate in the market – and its use of mechanised min-ing is at the forefront. Kotze, however, says the mine is aligned with Wits Gold’s strate-gy – owning and developing shallow mines in South Africa. “We understand the mine and we understand mechanised mining, and we believe that no company will be able to oper-ate this mine as successfully as we will.” Kotze served on the board of Great Basin Gold for a short period of time and therefore has good insight into the property.
Th e acquisition of Burnstone would imme-diately change Wits Gold’s status – from ex-plorer to producer – while raising its overall gold ounce targets. “We have good manage-ment capacity with a proven track record and
have access to funding (US$100 million) to ramp the mine up to full production. How-ever, we will not overpay for the asset, and have entered the bidding process set up by the owners of Burnstone. Our bid, based on a detailed due diligence currently in progress, will be based on getting the best returns for our shareholders.”
Burnstone (figures previously published by Great Basin Gold)
• shallow, semi-mechanised mine• reefs start at 358 m below surface• proven and probable reserves – 6.4 Moz• measured and indicated resources – 12.2 Moz
• average annual gold production of 160 000 oz at cash costs of US$650 over 25 years
• 80% of capital spent to date – production ramp-up imminent
• all mining licences secured• 100% ownership by Great Basin Gold at present
Unbundling – it’s a realityGold Fields has taken the step towards unbun-dling its South African assets from its inter-national assets and the other gold majors are expected to follow suit, based on comments by international institutional investors. Th is means that the cash produced locally will have to be re-invested in local operations, and in so doing, extending their lives, instead of being used to fund off -shore growth.
“It is only a matter of time before all the majors sell off their non-core assets. Th is will lead to substantial restructuring where remaining farm boundaries will be removed to take advantage of local infrastructure,” Kotze explains.
“Th is means the revival of single operations that are smaller, but more effi cient and prof-itable without signifi cant overhead costs. Th e result? A new listed mid-tier gold sector with vast investor opportunity – and Wits Gold is poised to be an active participant.”
At the opposite end of the scale, Wits Gold could sell certain of its exploration assets to the majors who may be looking to extend their mine’s lifespans, as the company’s pro-ject areas are strategically located adjacent to operating mines.
At the end of the day“In the long term, we want to be a mid-cap producer. Th e successful acquisition of Burn-stone could be the start of this process for us. Unlike other juniors and developers, we have a multi-tiered approach to our growth plan and, as far as I am concerned, we are covering all areas through our focused strategy .”
Shaft sinking is expected to start at DBM in Q1, 2014
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Precious metals
Ins ide Mining 03 /201322
South African mining company Sibanye Gold, formed as a result of multinational gold miner Gold Fields unbundling all but one of its South African assets, listed primarily on the Johannesburg Stock Exchange on 11 February, writes Reggie Sikhakhane.
SIBANYE GOLD
A symbol of new beginnings for SA’s gold sector
Precious metals
23Ins ide Mining 03 /2013
Signalling the offi cial listing of the company with the JSE’s traditional Kudu horn, Sibanye Gold’s CEO, Neal Froneman (former CEO of Gold One
International), commented on the impor-tance of the occasion: “Th e listing of Sibanye Gold is signifi cant. Th e company has world-class assets and is proudly South African.”
Froneman said that Sibanye Gold would try to remain leveraged to the gold price while generating free cash fl ow, admitting that there were certain changes needed to achieve this. “Changing the way we operate will be important as it will help us reduce costs, reduce our margins and optimise our balance sheet.”
Because cash generation is Sibanye Gold’s immediate focus, it will inject its energy into achieving its 2013 production target of 1.4 Moz, which requires optimising extrac-tion at its KDC Complex and Beatrix mine.
While local gold mines continue to grow deeper, and operational, wage and electric-ity costs escalate, more ‘Sibanye Golds’ are predicated for the near-term future. Majors are considering unbundling their local assets from their international ones in an attempt to help ensure their sustainability.
Amid instability in labour relations, Frone-man indicated that the company took the crippling situation of illegal strike action in South Africa’s mining sector seriously. “Pre-Marikana, not enough was done to contain the situation and we intend to do more. “We have about 45 000 employees and if everyone can behave in the right manner
and obey the law, then we can assure our workforce of fi ve to 10 more years of employ-ment,” he says.
“It is critical for all stakeholders in the min-ing sector to fi nd sustainable solutions to address the social issues brought about by the migrant labour system. Within the ar-ray of solutions, it is key to foster a strong alignment between the interests of the com-pany and those of its workforce. Continued existence of the social issues and commer-cial misalignment provides fertile ground for further division and strife in the sector, while it is also important for management
to develop a constructive and trusting direct working relationship with the workforce,” Sibanye Gold’s chairperson, Matthews Sello Moloko, explains.
OutlookDespite trading in the bottom half on the day it was listed, Moloko states that he is opti-mistic about the company’s future and that
not too m uch should be read into its fi rst day of trading on the JSE.
“Markets often respond to views, news and events with extreme optimism or pessimism. Th e opening price is not a refl ection of the
ABOVE The KDC operation is expected to drive signifi cant ounces towards
Sibanye’s portfolioLEFT Beatrix mine consists of four
operating shaftsBELOW CEO Neal Froneman, with
chairperson Matthews Sello Moloko
Sibanye Gold will inject its energy into achieving its 2013 production target of 1.4 Moz, which requires optimising extraction at its KDC Complex and Beatrix mine
“Our focus is to manage this business and demonstrate the creation of value in the me-dium to long term. We are optimistic about the prospects of this business and we believe,
given the strength of our as-sets and strategic plans, in-vestors will be well rewarded in the next few years.” With positive feedback from in-vestors during the company’s roadshow, as well as the inter-est created in the unbundling of Gold Fields and listing of Sibanye Gold, Moloko is bull-ish about future prospects.
“Th e objective of undertak-ing the roadshow was to artic-ulate the vision and plans for Sibanye Gold. To this end, the feedback from the roadshow
was largely positive,” he concludes. Sibanye Gold was trading at around R13/share on the day of its JSE listing, giving it a market capitalisation of about R10 billion. Th e end
of the fi rst week of trading already saw its share price climb to R16.20/share.
Speculation is rife, how-ever, as investors wait for Froneman to unveil his plans for the company’s assets. Both KDC and Be-atrix have relatively short lifespans remaining.
Under a separate entity, their futures appear a little brighter as Sibanye Gold’s
entire focus is to maximise the remaining po-tential for these operations.
We have about 45 000 employees. If everyone can behave in the right manner, then we can assure our workforce of five to 10 more years of employment
fundamental value of Sibanye Gold, but an-ticipation of sell-off by some of the off shore players. One should not attach too much to one day on the exchange.”
Kloof headgear (part of the KDC complex)
KDC complex East Shaft
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M ine design, mine scheduling, cut-off grade and blending, stockpiling and the linking of these to fl exible elements
of the metallurgical recovery processes are all evaluated together. Transport or sale of intermediate products and the requirements of the product metal markets can also be considered. Experience shows that the net present value (NPV) can be increased by 5 to 35%, usually even before the expendi-ture of significant amounts of project capital.
The case studies included:• An existing operation with
multiple open pits and PGM concentrators linked to
off-site downstream processing facili-ties, with infrastructure constraints for which the scheduling of current opera-tions and the potential for expansion were investigated.
• An existing operation with an integrat-ed portfolio of mines, concentrators, smelter and refinery for which the var-ious possible sources of ore for process-ing were prioritised to match the down-stream process plant constraints and the product markets.
• An underground operation in Zimbabwe for which the optimum mining width was calculated and expansion plans were evaluated.
• An underground mine with many sepa-rate mining sections for which a revised schedule was developed aiming to keep the shaft system and processing plant filled with the highest net value material
CASE STUDIES OF SIMULTANEOUS MINING AND MINERAL PROCESSING
Optimisation applied to platinum and nickel operationsOptimisation techniques can be used to increase the value of mining businesses by enabling better long-term planning decisions.By Steve Burks, Whittle Consulting
Figure 1: The generic mining enterprise value chain
27Ins ide Mining 03 /2013
Professionally speaking
available at any time throughout the life of mine.
This abridged paper presents only the first of these cases.
Simultaneous optimisation aims to ad-dress all steps in the value chain and all assets in the enterprise portfolio togeth-er and does this while also considering all time periods of the planned operation. This is a crucial additional complexity dif-ferentiating mining from other business-es. An ore body is a depleting resource; when we decide what to mine and process in one period, we constrain the available options for all future periods.
Figure 1 illustrates the point. There is little or nothing that any enterprise can do to improve the resource in the ground or the in-ternational market for the products, but all the other steps illustrated in the figure can potential-ly be optimised.
Enterprise optimisa-tion concentrates on optimising the NPV of businesses. NPV is the sum of discounted cash flows, normally calculat-ed or forecast annually. It reflects the time value of money and is consid-ered to be a metric for planning and measuring the performance of any business that will be understood and appreci-ated by executive man-agement, shareholders and other investors, and all stakeholders.
Case study 1As in the other cases, the entire value chain of a typical platinum group metal (PGM) operation was considered, compris-ing mining, beneficia-tion, smelting and refin-ing of multiple products for sale. The optimum production schedules took account of the con-straints, costs and recov-ery efficiencies of all of these steps.
This work related mainly to one specific
operating mine with seven open pits, all within approximately 15 km of each other. Opencast mining is carried out using con-ventional blasting, load and haul methods, and ore and waste are both transported out of the pits using large dump trucks. The ore is crushed and can then be trans-ported and fed to either of the two milling and flotation plants. The flotation concen-trate containing PGM and base metals is transported to one of a number of possible smelters for further processing.
The main objectives set for this enterprise optimisation study were to facilitate defer-ral or minimisation of capital expenditure for the next 3 to 5 years and to evaluate the
merits and potential added value of several alternative operating strategies.
A base case optimisation was prepared using Whittle Consulting’s proprietary Prober software. This was compared with the operation’s current business plan and recent operational results. Several of the input parameters were corrected in an iter-ative process. The NPVs of all other cases generated were compared to this base case.
In the first phase of the work, approxi-mately 30 Prober runs were completed over
Figure 2 Typical production charts from optimised mining and
processing operations
Professionally speaking
The Southern African Institute of Mining & Metallurgy has given permission to republish the paper titled Case studies of simultaneous mining and mineral processing optimisation applied to platinum and nickel operations by S Burks, which was first presented at their Fifth International Platinum Conference, ‘A Catalyst for Change’, held from 18 to 21 September 2012 at Sun City.
Figure 3: Discounted cash fl ow comparison
a six-week period; the output of each run consisted of over 50 tables and 70 charts illustrating trends in the key operating pa-rameters of the mining and beneficiation operations on-site, as well as providing an overall financial analysis of the effect of changes in the input settings. A few typical charts are illustrated in Figure 2, which is taken from two of the runs completed.
In the other two phases of work, the
downstream smelting and refining con-straints were taken into consideration, resulting in very different mining and beneficiation schedules to generate maximum NPV.
In total, the three phases of work on this study took over five months to complete with over 70 Prober runs being complet-ed. A cumulative cash flow chart from one of the interim reports is produced above in Figure 3, with the monetary scale in-tentionally omitted. This illustrates the
typical profile of enterprise optimisation study results with significant cash flow im-provements in the first years and a much flatter profile later.
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Ins ide Mining 03 /201330
company in Africa capable of offering a complete end-to-end gold solution, drawn from in-house technology.
“Our part of the FLSmidth group spe-cialises in individual components, but we also have world-class capabilities in terms of combining these components into cus-tomer-specific integrated gold room and plant packages,” Summit Valley’s equip-ment specialist, Cameron Barton, said during a recent visit to South Africa. “We lead the world in gold electrolysis and mer-cury vacuum distillation, and are among the top global companies offering indirect fired rotary kilns and packaged carbon strip systems.”
Electrowinning cellsFLSmidth offers a patented new electrow-inning cell basketless cathode designed to decrease operator service time and de-crease gold inventory in the cells, while providing the continued high cell efficien-cies characteristic of Summit Valley cells.
Gold sludge servicing is performed in the cell by washing precious metal sludge from the cathodes with a pressure sprayer and the sludge is pumped from the bottom of the cell via the sludge outlet flange to a sludge filter.
Since the cathodes are serviced in the cell, less cathode handling is required during ser-vicing and this minimises operator exposure
Precious metals
INNOVATIVE PRECIOUS METALS EXTRACTION
New solutions attract increasing FLSmidth is fielding an increasing number of enquiries from the local mining sector for its comprehensive and innovative range of precious metals extraction solutions.
I ts offering in this arena was signif-icantly enhanced in 2009 when the company acquired Utah-based Summit Valley, specialists in the design and
fabrication of modular plants and equip-ment for the extraction of gold and silver. This technology includes the industry’s highest capacity electrowinning cell used in precious metals recovery.
The Summit Valley speciality product range is known worldwide, having been used in 24 countries on six continents over the past 18 years. This equipment and know-how has significantly strength-ened FLSmidth’s offering in precious met-als processing, positioning it as the only
Precious metals
attentionto toxic metals when metals such as mercu-ry, arsenic and cadmium are present in elec-trowinning solutions. Th e new electrodes eliminate the need for cathode baskets.
FLSmidth’s patented innovative split Za-dra carbon elution process harnesses vari-able valve timing, and an additional strip vessel boosts production levels by as much as 30% on existing plants and reduces the cost of a new plant by the same percentage.
Carbon regeneration kilnsFLSmidth designs and manufactures indi-rect heated carbon regeneration kilns and calciners from half a tonne per day and
larger. These kilns and calciners can be fuel gas, oil or electric, and are skid mounted, pre-wired and pre-piped. The company’s patented bellows kiln seal has proved ef-fective in eliminating air ingress and pro-
cess gas egress, and can be retrofitted to kilns from other manufacturers.
FLSmidth holds the world record for the lowest emissions on a carbon plant.
Merrill Crowe plantsThe company’s Merrill Crowe plant capac-ities range from skid-mounted 3.4 m³/h modular plants to full size 2 100 m³/h.
The range of supply for plants includes clarification filters, de-aeration towers, vacuum pumps, zinc dust feeders, lead nitrate feeders and zinc cones, precipitate filter feed pumps, filter pre-coat and body
feed systems, as well as precipitate filters used by refinery and smelting facilities to produce gold bullion.
These plants incorporate proprietary zinc dust/lead nitrate feeder and mixing cone systems. The company offers individ-ual plant components, and partial or com-plete plant equipment packages, together with total plant design.
This equipment and know-how has significantly strengthened FLSmidth’s offering in precious metals processing
Many SolutionsFLSmidth is your One Source for crushing, grinding, classifying, thickening,
clarifying, slurry handling, flotation, mine shaft systems, pyroprocessing, material
handling, automation, screens, centrifuges and complementary products,
engineering, metallurgical testing and modernisation services. FLSmidth offers
you a complete line of equipment and services with proven reliability and
enhancing performance from the leading brand names of ABON, Buffalo, CEntry,
Platinum award-winning idlersA multimillion rand order for conveyor idlers for Northam Platinum’s new Booysendal platinum mine in Limpopo reflects the long-standing reputation for long life, low maintenance and minimum downtime that Osborn’s SABS-approved conveyor idlers enjoys.
O sborn’s conveyor products sales manager, Donovan Bale-ta, explains that it was the quality and competitive pric-
ing of Osborn’s products that secured this order for idler bases, rolls and anti-run back rolls for Booysendal.
“We are delighted to have this opportunity to work with long-standing customer DRA Mineral Projects, the EPCM contractor on the project, as well as with Northam Plati-num,” he adds. Standard Osborn idlers have been supplied for this project, with convey-or belt sizes ranging from 900 to 1 500 mm.
A stage-by-stage quality controlled man-ufacturing programme ensures that Os-born idlers and associated products are of the highest quality and provide customers with all the benefits they seek.
Manufactured from steel and high- density polyethylene (HDPE), Osborn idlers are available in suspended, garland and standard designs. Deep-groove ball bearing or taper roller-bearing designs are available, and clients can choose from a
Complete range of idlersOsborn offers a complete range of stand-ard and custom-designed idlers, which it has provided to thousands of cus-tomers in underground, overland and in-plant conveying applications across various industries.
The company’s achievements in this area date back more than four decades and in-clude installation of conveyor systems dur-ing the 1960s and 1970s at the Blinkpan and Usutu power station collieries, as well as at Anglo American’s rapid load out ter-minal near Witbank.
Osborn secured the order to supply conveyor idlers for Booysendal
Precious metals
Booysendal’s key facts and statistics
• Ownership: Wholly owned by Northam Platinum.
• Location: On the eastern limb of the Bushveld Complex in Mpumalanga, adjacent to the Everest and Mototolo operations
• Access and infrastructure: Tarred road access from Mashishing (formerly Lydenburg); private road across Der Brochen property. 5 MW of power is available for construction; permanent power is currently being installed. 5 MW of self-generation power in place. Water use has been secured
• Project extent: 15 151 ha; strike length of 14.5 km and dip approximately 10° to the west
• Reserves: 3 Moz
• Resources: 103.3 Moz
• Life of mine: 50 years and beyond
• Project status: 5 000 development metres completed; reverse declines have intersected the reef declines. Reef stockpile of 180 000 t on surface; concentrator plant nearing completion; ongoing rehabilitation
• Operations: The UG2 North mine is being developed as a mechanised room and pillar operation underground operations will be serviced by a cluster of four declines (three on reef and one in the footwall) and are accessed by a reverse decline system
• F2012 capex: R1.7 billion
• F2013 capex: R1.3 billion
selection of roll diameters (102, 127, 152, 165 and 178 mm) and roll shell thickness-es (from 3.8 to 6 mm).
High-Impact Torsion systemA sought-after option supplied by Osborn for all conveyor systems – both new and existing installations – is the High-Impact
Torsion (HIT) system. Replacing impact beds and skid beds, this system is fitted under the chutes and in high-impact areas, explains Baleta.
It absorbs impact in these areas and of-fers significant benefits, including longer belt life and longer idler life. “The impact is absorbed in the product’s torsion bar,” he explains. “The result is less impact on the belt and the reduced likelihood of broken or bent frames.”
The HIT system can be fitted onto any new or existing installation. “No modifi-cation to the installation is necessary and the system uses standard SABS-approved rollers,” Baleta stresses.
Renowned for ruggednessWith one of the largest manufacturing facilities in South Africa, Osborn offers commissioning, spares and after-sales service on all idler products. The entire Osborn range of idlers is renowned for ruggedness and represents years of de-sign improvements and field experience gleaned from various installations around the world. The idlers also boast ISO 9008 accreditation.
Tega Industries (South Africa) Pty LtdP.O Box 17260, Benoni West, 1503, South Africa,
Tega offers value added consultancy services and solutions TOTAL : Solution
With focus on core engineering applications in the Mining and Mineral Processing Industry, Steel plants, Power, Port and Cement Industries.
in Mineral Beneficiation, Bulk Solids handling, Wear andAbrasion customised to suit specific applications.
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Minerals processing
Ins ide Mining 03 /201336
Fluor has been active in Africa’s mining sector for the past 50 years, but its project volume could be considered relatively small. Th is is
set to change following the implementation and commencement of a strategy aimed at growing this specifi c business unit and its mining work in Africa.
Driving the strategy is the newly appoint-ed Fluor SA Mining & Metals general man-ager, Russell Ayres, who will oversee the im-plementation of a greater mining team and a growing mining project portfolio.
Ayres, who has been with Fluor for 12 years, joined the South African company at the beginning of this year and is already putting plans into action. “My primary fo-cus is to build, grow and develop a core set of team members who will facilitate and specialise in the small- to medium-sized project area in the range of US$200 mil-lion to US$300 million, which continues to
fl ourish in current economic conditions,” explains Ayres.
“Ultimately, the intention is to take on a multitude of projects of this scope and broaden our overall workload, in addition to tendering on the few big projects advancing to the execution phase. By remaining active and continuously gaining more experience, we will position ourselves to take on more mega projects as they re-emerge.”
Fluor – and Ayres in particular – has al-ready proved this concept successful, having spent 10 years in China implementing it. “It took only three years to convert the concept from idea to reality. I believe it is the most successful route to better establishing your-self and gaining greater industry recogni-tion,” he continues.
Ayres’ connection and understanding of China’s industrial sectors has multiple ben-efi ts for Fluor’s African business. “Th ere are so many similarities between China and
SMALL, MEDIUM AND LARGE PROJECTS
Fluor has it coveredNew large-scale mining projects may be few and far between at present, while small- and medium-sized developments remain on the rise. Global engineering firm Fluor is adapting its local mining and metals business model to cater to this current economic environment, writes Laura Cornish.
Jwaneng’s Cut 8 new main treatment plant conveyors and secondary crusher silo
Minerals processing
37Ins ide Mining 03 /2013
ServiTrade acquisition
In November last year, Fluor’s integrated mobile equipment and tool solutions unit, AMECO, acquired ServiTrade, a Mozambique-based construction equipment rental and project services company. ServiTrade provides fully operated and maintained equipment, camp services, transportation and batch plant services to the infrastructure, mining, natural gas and power industries with an execution model aligned with AMECO’s.
“One of our strategic growth initiatives has been to increase our presence in Africa, so AMECO took this approach to expand in the market and position early in this high growth region,” Gary Bernardez, president of AMECO said when the acquisition was announced. “ServiTrade’s long-term presence and high level of activity with AMECO’s global accounts, stable economic factors and the desire to establish a sustainable presence in sub-Saharan and Eastern Africa further solidified our decision.”
Founded in 1998, ServiTrade is one of East Africa’s premier project services companies for projects throughout the region. ServiTrade is based in Maputo, Mozambique, with additional locations throughout the country.
“The acquisition has made us the biggest mining equipment hiring company in Mozambique and is another arm of our strategy to increase, grow and expand our mining presence in Africa,” Ayres adds.
Africa, particularly with regards to major challenges, such as a lack of infrastructure, language barriers and cultural diversity. Th ese are challenges I have learnt to over-come with great success and this under-standing and experience that I bring to the South African and African subsidiaries will carry us forward into the most remote Afri-can regions with ease.”
Fluor also has a team of 300 based in Chi-na that specialises in procurement and ser-
vices the entire global Fluor entity. Th is has major benefi ts for clients, particularly with regards to pricing and lead times, especially where these can not be met locally. “Th anks to our strict pre-qualifi cation process, we are able to source the best equipment, at the best price and best delivery time frames, here and in China.”
High profile projectsFollowing the successful completion of three major mining projects over the past few years, Fluor is currently tender-ing on three mining projects and is un-der way with a pre-feasibility study for a new treatment plant at Debswana’s Letl-hakane diamond mine, north of Botswana’s capital, Gaborone.
Its fl agship project to date is the work it undertook for the Jwaneng diamond mine
Cut 8 expansion project in Botswana as well, which was completed in September 2012. Th e company’s responsibilities in-cluded relocating and rebuilding portions of the mine infrastructure aff ected by the pit expansion. Th e scope included earthworks, civil construction, pilings, structural steel erection and electrical installation.
Th e Jwaneng opencast diamond mine is the largest (by value) in the world. Its expansion facilitates greater ac-
cess to kimberlite ore. Th e expansion ena-bles the removal of overburden to allow the mine to access 91 Mt of ore that will yield about 102 million carats and extends the mine’s life to 2028.
Fluor (through its Botswana subsidiary) was also involved in the Phase 1 expansion of the Morupule coal mine, increasing pro-duction to 3.2 Mtpa. Th e coal supplies Bot-swana Power Corporations’ Morupule power station. Fluor managed the engineering, pro-curement and construction management for the project, which started in 2010. Th e main target was to complete the relevant facilities to support meeting the ‘fi rst coal’ milestone by mid-November 2011, which the company achieved two weeks ahead of schedule.
Completion of the infrastructure por-tion of the project was achieved in mid- July 2012.
LEFT Morupule ROM stockpile feed conveyor (Photo by Sebastian Rosochack)i
included earthworks,ilings,
ection tion.ncastthehen
c-
“My primary focus is to build, grow and develop a core set of team members who will facilitate and specialise in the small- to medium-sized project area in the range of US$200 million to US$300 million.” Russell Ayres
Minerals processing
Ins ide Mining 03 /201338
T ypical to the cyclical nature and evolution of the mining industry, its approach to the design and development of new projects, is
the same.“While most mining companies have
shown a preference for the EPCM model over recent years, the level of interest in the EPC turnkey model is growing rapid-ly,” Smith point outs. And despite its rep-utation for being successful for ensuring bankability on small- and medium-sized projects, Smith says large-scale projects being developed by mid-tier and majors are also being delivered as EPC contracts.
FORGE-ING INTO AFRICA
The merits of EPC contractsGlobal and multidisciplinary EPC company Forge Group believes the lump sum turnkey approach to mining projects is regaining popularity – on a larger scale as well, COO Brett Smith tells Laura Cornish.
Forge Group is already seeing evidence of this in its work in the power and in-frastructure, mineral and resources and oil and gas sectors in geographies where it operates.
Majors such as BHP Billiton, Rio Tinto and Xstrata are all revaluating the benefits of EPC contracts. “The EPC model miti-gates client risk, and requires the contrac-tor to deliver according to an agreed time frame , budget and operational perfor-mance requirements.”
Primarily situated in Australasia and West Africa, with an office in South Afri-ca, Forge Group is proving that large-scale
mining EPC contracts can be an optimal, cost-effective option. “To be successful, certain upfront requirements are essen-tial – including a close client relationship. Our integrated approach, with full multi-disciplinary engineering and construction capability, enables us to understand our clients’ needs. Supporting this approach in Africa we back this capability with a team that fully understands the country they are working in and the commodity they are working with.”
Tarkwa gold mine – Ghana, West Africa
Minerals processing
Are you looking for cost-effective size-reduction and classification of ores, industrial minerals and concentrates? Contact Loesche SA to find out the advantages of the Loesche Grinding System for your beneficiation process.
EVERY DAYE V E N 1 0 0 Y E A R S O F B E I N G A N I N N O V AT O R A N D M A R K E T L E A D E R D O E S N O T K E E P U S
Considering these elements are Forge Group’s primary focus points and strengths, its success in the mining in-dustry is easy to understand. Its mining portfolio includes major EPC contracts, with values of at least AU$400 million (R3.66 billion). And while the company has an established presence in West Africa, it is focusing on other major African mining territories, in particular Mozambique, the Democratic Republic of the Congo, Mali, Sierra Leone and Ghana.
The company is currently providing the civils, structural, mechanical, piping, elec-trical and instrumentation works for the upgrade of ore processing facilities for An-gloGold Ashanti’s Obuasi mine in Ghana.
It is also under way with the project man-agement, supervision, labour and equip-ment for the structural, mechanical and piping, and electrical and instrumenta-tion works associate with Phase 1 of Lon-don Mining’s Marampa iron ore project in Sierra Leone.
“Our commodity strengths in general in-clude gold, base metals and iron ore, and also expand beyond minerals processing
plants. Forge has developed a strong rep-utation in the power and construction in-dustries, additional strengths that could prove useful to the mining industry.”
The majority of mining projects in Africa are dependent on ancillary infrastructure and power. So much so that they can influ-
ence the viability of a project in its entire-ty. Forge’s expertise in the power sector is substantial, bolstered by the acquisition of CTEC during 2012, which now operates as Forge Group Power following a restructur-ing of the group at the end of last year.
“We are currently constructing an inde-pendent combined cycle power station for
Diamantina Power Station in Australia. We are also completing EPC contracts for the Cape Lambert and West Angelas power sta-tions for Rio Tinto Iron Ore.”
Such prestigious clients and projects are sufficient evidence that the company can deliver on the capabilities it promises.
“Ultimately, we will remain a global enti-ty with a strong presence in Australia, but we want Africa to constitute between 20% and 30% of the entire Forge Group’s busi-ness. Because our strengths are aligned with the industry’s growing needs and re-quirements, we are confident of achieving this,” Smith concludes.
LEFT Obuasi gold mine – Ghana, West Africa
MIDDLE Chirano gold mine – Ghana, West Africa
RIGHT Marampa iron ore project – Lunsar, Sierra Leone
Majors such as BHP Billiton, Rio Tinto and Xstrata are all revaluating the benefits of EPC contracts
Ins ide Mining 03 /201340
Minerals processing
This follows Kumba Iron Ore and Exxaro Resources’ joint devel-opment agreement (announced in April 2012) to commercialise
the ultra-high dense medium separation (UHDMS) technology concept developed by Exxaro. The contract was awarded to the integrated minerals processing technology provider in September 2012 and is on track to be commissioned and handed over by the end of May 2013.
The plant will be used to demonstrate the commercial feasibility of separating iron ore at operating densities above 4.2 g/cm³ using the cyclone-based UHDMS technol-ogy. Should the demonstration prove suc-cessful, this would offer Kumba Iron Ore
the opportunity to improve separation ef-ficiencies in certain particle size fractions above that of the jigging technology.
Following Exxaro’s determination of the rheology of the ferrosilicon medium, spe-cific applications will be demonstrated, including the use of UHDMS technology to process jig discard and low-grade ore. The ferrosilicon is also produced at Exxa-ro’s ferroalloys production facility, which boasts a superior gas atomised product with unique properties that complement the technology.
Should the UHDMS plant demonstrate the commercial ability to operate at antici-pated high cut densities, it will achieve sig-nificantly higher yields of the same product
grades as conventional jigging technology – due to superior separation efficiencies. The potential to process lower grades of iron ore will also be an option. This is in line with plans for future expansions and optimisation of production, through pro-cess optimisation of low-grade material at Sishen and Kumba Iron Ore’s other mines.
An Exxaro team has been developing and piloting this technology over many years and believes that the technology is supe-rior to current beneficiation technologies for processing these types of ores.
Operating at high densities and process-ing ore that has a high percentage of near- density material was not possible until Exx-aro successfully piloted a 30 tph plant that was able to processt his type of ore.
For many years, DMS plants have been successfully designed using washability data, but the data was restricted to low-er density applications. Exxaro has also developed the capability to characterise ores at high densities, which could not be done previously, but has now enabled
ULTRA-HIGH DENSE MEDIUM SEPARATION TECHNOLOGY
Groundbreaking technology for SishenIron ore major Kumba Iron Ore has awarded Tenova Bateman Technologies’ modular business unit an LSTK contract to supply a 50 tph modular benefi ciation plant to its Sishen mine in the Northern Cape.
Minerals processing
quantification of the potential and value of the UHDMS technology.
The Tenova Bateman Technologies’ mod-ular plant, complete with feed and prod-uct/waste handling arrangements, will be fully equipped with instrumentation and control systems as required for demonstra-
tion purposes as well as for data gathering needs. The plant will be designed to accom-modate the higher density material being processed and will include pumps designed to pump the ferrosilicon medium at the re-quired densities and volume.
Tenova Bateman Technologies is com-mitted to investigating, developing and
acquiring novel technologies that will op-timise clients’ return on investment, as
well as making possible the processing and beneficiation of ores that were previously not feasible or practical using convention-al technologies. A number of alternative technologies using UHDMS for high-den-sity bulk materials are being developed by Tenova Bateman Technologies and are nearing commercial applica tion.
ABOVE UHDMS site from feed reception elevation at 50% civil completion
RIGHT Trial erection of DMS building at Rowans Fabricators
Exxaro has also developed the capability to characterise ores at high densities, which could not be done previously
Ins ide Mining 03 /201342
I t is common knowledge that China, the world’s largest rare earths produc-er and supplier, is no longer export-ing the majority of its product, but is
instead keeping it for its own use. This has resulted in the rebirth of the rare earths industry outside of China, which was last active in the 1970s.
Rare earths are a group of 17 elements that are being increasingly used in the shift to cleaner energy sources, such as magnets in wind turbines, hybrid vehicle batteries and catalysts to reduce automo-bile exhaust emissions.
The rest of the world is taking a stance against the Chinese monopoly, and is sourcing and se-curing its
own supply, resulting in a more price competitive mar-ket. Indian Rare Earths, Australia’s Lynas Corporation and US-based Molycorp alone provide plenty of rare earth mate-rial and Africa wants its piece of the rare earths pie.
“While producing a rare earth concen-trate is the easy part, the secondary refin-ing process separating the rare earths into their individual components is the chal-lenge. And for those who have succeeded in conceiving a working formula, they are
highly unlikely to share it,” explains Mint-ek’s chief scientist, Olga Yahorava.
This is a challenge for Africa-focused rare earth mining companies, which have emerged in South Africa’s Western Cape as well as in Namibia, Tanzania and Malawi. Because every rare earth deposit has its own unique gangue mineralogy, each de-posit also requires its own flow sheet to understand its processing options. As a re-sult, we have been developing processing sheets for numerous clients targeting pro-duction of a high-grade rare earth oxide concentrate,” says Marthie Kotze. senior
hydrometallurgist at Mintek.
In the past two years, Mint-
ek has had major rare earth project enquiries, based on relatively low-grade ores that are difficult to upgrade physi-cally. But due to the current high value of rare earths, more options have become available to treat low-grade materials, Kotze continues.
While this alone indicates the significant role Mintek is playing in the development and progression of the African rare earths sector, the government-funded organisa-tion may hold the pivotal key to unlock-ing the real potential that the African
continent has to offer to meet its own needs – and global demand.
“The Department of Energy has allo-cated a portion of its medium-term ex-penditure framework funding to Mintek, enabling us to develop rare earth refining technologies over the next two years. The
long-term view and in-
tention, based on our findings, is
to develop a centralised rare earth refin-ery to service the African continent’s rare earths miners. Considering the lack of rare earth consultants, particularly with regards to refining, we believe our role is an essential one,” Kotze announces.
For those companies looking to take their rare earths fully downstream, a cen-tral refinery will ensure their viability. “It is not viable to build a refinery with less than 20 000/30 000 tpa, with a lifespan of between 15 and 20 years. A lot of compa-nies won’t be able to mine or process those quantities meaning a central refinery is the perfect solution.”
RARE EARTH REFINING IN AFRICA
Mintek’s possible breakthroughThe rare earths industry in Africa is growing. Companies are buying up assets and determining their contained value, but giving less attention to the downstream process flow sheets necessary to prove their viability, writes Laura Cornish
Minerals processing
Minerals processing
The target, Yahorava continues, is to demonstrate Mintek’s ability to produce specific pure rare earths by April 2014, including lanthanum, cerium, praseodym-ium, neodymium, middle rare earths or samarium, europium and gadolinium (the
latter three are collectively referred to as SEG or heavy rare earths). These specif-ic metals have been targeted upfront as they make up 80% of South Africa’s rare earth deposits..
“There is no technology in South Africa that can develop the design criteria for all the rare earths to produce concentrates and refine them afterwards. It is like we are starting from scratch,” Kotze notes.
Mintek has already purchased 90% of the equipment it requires to estab-lish a pilot plant for the rare earths
refining test work. It will be fully auto-mated and demonstrate the metallurgical behaviour of individual rare earths and separation capabilities.
“Our study will also examine how to remove thorium and uranium before the
refining stage and will be more cost-ef-fective than the typical flow sheets that Chinese companies use, as far as we un-derstand. It is essential to note that while China’s rare earths industry may be more mature, it has not evolved or been im-proved for the past 30 years, making it ineffective and unfriendly towards the environment,” Yahorava outlines.
Mintek is also working with numerous international rare earth clients, particu-larly in South America, which is also lack-ing expertise in this particular field.
The Department of Energy has allocated a portion of its medium-term expenditure framework funding to Mintek
Minerals processing
While the global aspirations of its India-based parent company, Tega Industries, have always been global
growth, the company has more recently set its sights on expanding its presence in Af-rica. The company’s first entrance into Af-rica was Ghana in 1999, where it remains active today. The company caters to five different market sectors, including ports, power, steel and cement, with the mining sector as its largest revenue contributor. “It has only been in the past eight to 10
years that the company’s growth strategy has become streamlined and today focuses largely on generating business and long-term contract opportunities in sustainable mining countries. Today these are primarily on the Af-rican, Eu-ropean, Aus-tralian and South American continents. Our ap-proach is to provide our clients with local
content and a local business approach,” Monteiro explains.
In 2006, the Indian major acquired South Africa-based Beruc, which added mill lin-ings and wear applications to its mining
TEGA INDUSTRIES
Positioned for great growthMinerals processing and industrial mining components company Tega Industries South Africa has major growth aspirations for the future and is taking fundamental steps to achieve them, MD Fernando Monteiro tells Laura Cornish.
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Minerals processing
portfolio. The local company has been based on the former Beruc property in Benoni Industrial, Gauteng, ever since.
Tega Industries’ mill linings and conveyor components businesses are well established and recognised in the industry. Its Spill-Ex univer-sal support system effectively controls spillage at loading points and thus im-proves the performance of the skirt board sealing system.
The support system is universal, mak-ing it fully adjustable to suit different belt widths, trough angles and conveyor pro-files encountered at different materials handling sites. The entire Tega product suite also includes conveyor components, screens and other industrial products.
A necessary expansion“Our property has become inadequate and is unable to facilitate further growth. It is also very fragmented. In August 2011, we purchased a large-scale manufacturing fa-cility in Vulcania, Brakpan, which we are hoping to relocate to within the next six months,” Monteiro describes.
The move will expand the company’s premises space from its current 3 300 m² to 44 000 m². “Not only will it allow us to improve and streamline our workflow pro-cesses, but will also enable us to increase capacity, leaving potential for future ex-pansions further down the line as well.
Facilitating strategic growthMonteiro joined the company (as MD) in June 2012. “My appointment was a strate-gic one – to assist with growing Tega fur-ther into African markets and expand our product range. This means looking at intro-ducing complementary products into the
Tega portfolio, primarily in minerals pro-cessing, over the next one to three years.” Monteiro’s ‘forte’ is in the minerals pro-cessing sector, having been involved in the industry for 26 years.
“In addition to developing and growing the company’s mineral processing exper-tise, my overall long-term goal is to change the peripheral perception of what we are – a holistic solutions provider.”
Tega Industries has already celebrated numerous minerals processing successes, primarily in the copper, gold, platinum and diamond sectors.
It has an office in Chingola, Zambia, and is in the process of opening up a new branch in Kolwezi, in the Democratic Re-public of the Congo.
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Advertorial: IT & Communications
Ins ide Mining 03 /201346
The lack of agreement about the processes and activities that make up the business of mining has long been a major cause for the
breakdown of interdisciplinary discussions about information management in the mining industry.
Th e development of the EM Model started in 2008 with the coming together of several parties with an interest in mining and pro-cess mapping as the basis for information management. MineRP is proud to have con-tributed throughout the process, with robust debates among the members facilitated in South Africa by RealIRM’s Sarina Viljoen.
Led by Mike Woodhall, MineRP’s vice pre-cident: Mining Enterprise, MineRP’s contri-bution covered several aspects of the mining value chain and is underpinned by decades of experience in the development and imple-mentation of multidisciplinary mining tech-nical solutions.
Having a common reference model that stands up to scrutiny in multiple mining en-vironments allowed MineRP to express its proprietary value chain and process models in a way that is globally relevant and usa-ble. Applying the thinking in this model to software development has aided MineRP to create a software framework for enterprise
integration, transcending previous informa-tion fl ow boundaries introduced by diff erent mining types, geologies and multiple dis-ciplines. Th is has culminated in enterprise integration solutions such as MineRP’s Spa-tialDB, SpatialDash and SpatialAnayzer.
For more information about MineRP, or its con-tribution to the EM Model, please contact Mike Woodhall at [email protected], or visit the website at www.minerpsolutions.com.
GLOBAL STANDARD PUBLISHED
Mining business process reference modelThe Open Group, a vendor- and technology-neutral consortium, has approved the Exploration and Mining Business Reference Model (EM Model) as an Open Group Technical Standard. This is the fi rst approved standard for the natural resources industry developed by the Exploration, Mining, Metals and Minerals (EMMM) Forum, a forum of The Open Group.
EMMM Member Organisations
Establish: All the activities necessary to create a mining environment (the full infrastructure).At a strategic level: creating the mine, beneficiation plant, environment, supporting facilities & communities, plus financing. At a tactical level: ensuring mid-term continuity and viability of the mining operation. Typically funded by capital expenditure; e.g., sinking a new shaft, planning and building of extensions to an existing mine. At an operational level: creation of further access to the ore body with all the associated supporting engineering infrastructure. Funded by operational fund (opex).
Discover: The process by which an exploration target and/or a mineral resource is articulated and defined for acquisition purposes. The process includes: evaluation of grade and tonnes, pre-feasibility phase, examining the production options, and acquisition of the necessary rights. At a strategic level: the exploration strategy and associated activities to find new deposits. At a tactical level: focus on the evaluation of existing mineral deposits. At an operational level: day-to-day enhancement of the level of confidence in the geological model.
Exploit: For a given mine type, rock type, and mining method, this process includes the breaking and removal of 'rock'. Rock is a generic term to describe all types of mineral resource host material. It also includes the transport of the broken rock and waste from working place to plant and/or stockpile.
Beneficiate: This process focuses on the processing of ores for the purpose of:• Regulating the size of a desired product, removing unwanted constituents, and improving the quality, purity, or assay grade of a desired product.• Concentration or other preparation of ore for smelting by, for example,drying, flotation, or magnetic separation and improvement of the grade of ores by milling, flotation, sintering, gravity concentration, or other processes.
Sell: This process focuses on dealing with customers in order to dispose of the product and attain revenue. This process also includes product marketing.
Rehabilitate: This process focuses on returning the mining site to a desired 'improved' state concurrently with or after the primary mining and associated activities.Planning for rehabilitation is now a key deliverable of any exploration or mining plan and must generally be approved before any exploration or mining tasks can be undertaken.
Produce Engineering Infrastructure AnalysisProduce Beneficiation
Analysis
Consider Economic Options
Produce Costing modelExamine Financial
Alternatives
Complete Business Analysis
Confirm Acquisition Scope
Secure Rights
Rep
ort
Con
trol
Mea
sure
Pla
n
Rep
ort
Con
trol
Mea
sure
Plan
Manage Enterprise Strategy
Manage Finances Manage Information Technology
Manage Human Resources
Manage Assets Manage Risk
Handle Product
Store Product
Classify Product
Blend Product
Package Product
Refine MaterialSmelt Material
Refine Material
Treat MaterialPrepare Material
Concentrate Material
Engage CustomerFollow Up Leads
Manage Customer Relationship
Handle OrderTake Order
Bill and Collect
Ship and DistributeManage Demand
Process Financial Transaction
Capture Data
Handle MaterialClassify Material
Blend Material
Store Material
Initiate Rehabilitation
Prepare Rehabilitation Proposal
Obtain Approvals for Rehabilitation
Execute Rehabilitation
Obtain Stakeholder Acceptance
Implement Costed Plan
Initiate Establishment
Approve the Project
Finance the Project
Resource the Project
Commission
Run Pilot Operation
Handover to Operations
Remove RockClassify Rock
Move Rock
Stockpile Ore or Waste
Break RockCreate Access
Mine Ore Body
Extend Infrastructure
Manage Corporate Relations
Manage MaterialManage Health, Safety, and Environment
Design RehabilitationCollect Rehabilitation
Design Criteria
Produce Final Rehabilitation Designs
Deliver Costed Plan
Manage Logistics
Construct
Develop Operational Capability
Build Mineral Extraction Capability
Build Facilities
Deploy Utilities
Build Beneficiation Capability
Engineering DesignCollect Engineering Design
CriteriaProduce Conceptual Engineering Designs
Select Final Engineering Designs
Plan Distribution
Ship Order
Review & Approve Transaction
Support Product Marketing
Define Market Strategy and Policy
Articulate Product Portfolio
Prepare Communications and Promotion
Underground
Hard SoftTabular CoalMassive Solution
Other
Surface
Hard SoftOpen Pit Open PitGlory Hole Placer
The Open Group® is a registered trademark and EMMM™ Forum is a trademark of The Open Group in the United States and other countries.
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IT & communications
Ins ide Mining 03 /201348
M ining companies are break-ing up into smaller entities to try and alleviate esca-lating operational costs, a
trend we see growing further in the local sector. Labour relations and power hikes are affecting overall production, which has a severe impact on revenue and profits,” says Keith Fenner, senior vice president for sales at software solutions company Sage ERP Africa.
According to Fenner, Sage ERP Africa’s recognised software solutions, which have proved to be a success over recent years, can offer significant assistance in reducing costs and mitigating losses. “By offering ERP products that cover financial, distribu-tion, costing, scheduling, maintenance and production, we are able to deliver solutions and guarantee results in a timely manner.”
Fenner reveals that the company recently
THE NEED FOR EFFICIENCY SOLUTIONS
A potential gold mine for software specialistsThe increased demand for solutions capable of assisting mining houses reduce their operating and related costs could prove profitable for established business management software companies, writes Reggie Sikhakhane.
‘went live’ with a midmarket gold miner, as well as a midmarket platinum producer. “The companies are already achieving bet-ter reporting and cost results as a result of the partnerships we have established.”
Rebranding from Softline, following the acquisition of the company by the Sage Group in February this year, Sage ERP Afri-ca says the name change has been received well by its business partners, clients and the market.
“We conducted a market survey and anal-ysis before we implemented the rebrand-ing and received a lot of positive feedback from all stakeholders. It was no secret – rebrand ing made business sense,” ex-plains Fenner. He points out that the name change has already had a positive impact on the mining industry – it alleviates con-fusion that results from having too many names. “The name change augurs well
with our plans to target African countries and, in doing so, present the company and its products under one global brand.”
“Softline has been part of the Sage Group for many years and over this time we have continued to grow in prominence. We believe that it is now time to leverage the global power of the Sage Group and align ourselves fully with the brand,” said
IT & communications
49Ins ide Mining 03 /2013
Ivan Epstein, Softline co-founder and CEO of Sage AAMEA, following the name change announcement.
The company’s name change has result-ed in name changes across all divisions,
Sage ERP Africa
Sage ERP Africa recently opened its offices in West Africa – in Lagos, Nigeria, and in Nairobi, Kenya – as it seeks to further its interest on the African continent. “The opening of these offices is an indication of our intent to continue with our aggressive expansion into the African market,” Fenner outlines. He attributes the success of Sage ERP Africa in African markets to its established, competent, partner channels, such as Deloitte. “Our partnership with Deloitte has helped us to understand what the midmarket players in Africa need and we have had lots of success thus far.”
Fenner says that the company has not experienced any challenges in Africa owing to its well-established distribution networks, adding that the company is well-positioned to penetrate the regions that it operates in. The company says that business looks promising in the future and has a number of projects in the pipeline.
“Innovation remains at the forefront of the entire Sage Group’s identity.” Keith Fenner,
senior vice president – sales, Sage ERP Africa
including Sage VIP (formerly Softline VIP), Sage ERP Africa (Formerly Softline ACCPAC) and Sage Pastel (formerly Soft-line Pastel), with Alchemex to be known as Sage Alchemex.
“Our current and future customers will continue to enjoy the benefits of our lo-cally and globally developed products that they have come to know and trust, while this alignment creates further opportuni-ties to leverage global insights and collab-orations,” Epstein noted.
Fenner continues: “Innovation remains at the forefront of the entire Sage Group’s identity. Sage ERP X3 offers the option for a decentralised approach to improv-ing our products for the mining industry, including the ability to use the software in offline mode. Connectivity, especial-ly in some areas in Africa where mines
are situated, can be both expen-sive and incon-sistent, which is why we have integrated an option to work offline with our Sage ERP X3 product.”
51Ins ide Mining 03 /2013
Advertorial: IT & communications
Software development company Adroit Technologies provides solutions to the mining industry that include supervisory control
and data acquisition (SCADA), business in-telligence software for the process control market (SCADA intelligence), MIS func-tionality (performance indication around exception-based information) and .NET integration portal and development envi-ronment/platform (collating information into a single centralised view).
According to the company, its software is world class and in line with the latest mar-ket trends. Adroit Technologies is the ob-vious choice for process control solutions, thanks to its proven track record of relia-bility, excellent service and unparalleled solutions, which are all “open” enough to provide unique turnkey solutions.
Some of the company’s clients in Africa
and South Africa include BHP Billiton, PPC Cement and Exxaro. Most of its clients’ fa-cilities have a dedicated process LAN net-work, which poses the challenge of making information on the process network avail-able to the admin LAN network. Each net-work structure and setup is unique to cus-tomer needs, making it a challenge worth meeting on every project.
According to Adroit Technologies, future development trends for process control in the mining sector that would assist in over-coming this challenge include:• increased visibility of production• safety and reclamation processes that
use best-of-breed technologies, allowing mining projects to be profitable, operate according to safe and secure guidelines, and become better global citizens in terms of environmental responsibility.
Advantages of Adroit’s process control
solutions include visibility from control room to boardroom, with products that provide valuable information to each man-agement level: • Adroit Smart SCADA has been developed
with information security in mind, im-plementing security end points and safe-guards at every level of the product.
• Adroit Report Suite is an open and exten-sible information system that is based on process data logged and presented in the form of web-based reporting.
• Adroit SCADA Intelligence is a dashboard approach for collating information from various sources into a single centralised view for easy decision-making across the entire enterprise.
ADROIT TECHNOLOGIES
Providing mining IT solutions for over two decades
Mining has become a competitive, regulated and crucial contributor to the world’s economy. Ensuring world-class competitiveness, safety compliance and profitable production output demands state-of-the-art process control technology to ensure mining objectives are never compromised.
“Inside Mining would like to apologise for the incorrect information about Adroit Technologies in the October 2012 issue published by the editor at the time.”
IT & communications
T his time-saving functionality enables clients to gain rap-id interpretation of a mineral’s properties while in the field, meaning geologists don’t have to wait for lab assay results to know what they are working with.
Geobank is compatible with most leading XRF models and ac-cepts XRF data in the popular .csv format. It can also be config-ured to the user’s specific XRF requirements.
Steve Bastick, Geobank operations manager, explains: “Infor-mation generated by the XRF machine can be seamlessly com-municated to Geobank, which provides the ideal tool to manage
SEAMLESS XRF COMMUNICATION
Taking exploration to the next levelMining software solutions provider Micromine has released new functionality specific to its geological data management product Geobank. The functionality will help exploration companies improve productivity and cost efficiencies through the establishment of a data connection between Geobank and portable geochemical analyser XRF machines.
and make sense of the vast quantity of data generated. Ge-obank brings all the benefits of laborato-ry-style QA/QC to the XRF machine and allows users to maximise their investment in the XRF”.
Geobank’s charting and graphic re-porting capabilities also provide a rapid visualisation of the XRF data. Addition-ally, the centralisation of data ensures that XRF results can be compared quickly and efficiently with the actual assay results once they are returned from the lab.
Micromine and Olympus, manufacturer of the Innov-X Delta XRF machine, have collaboratively developed a ‘Geobank Export Template’ specific to Innov-X Delta XRF machines. This template simplifies the configuration process, saving time and effort.
Todd Houlahan, director: International Mining Group, analyt-ical division, Olympus NDT, explains: “Olympus and Micromine have been working towards the integration of our offerings for some time now. Because portable XRF machines allow explora-tion and mining companies to collect far more geochemical data than traditional laboratory techniques, the effective manage-ment of this data is vitally important.”
Ins ide Mining 03 /201354
IT & communications
Our service includes unbeatably fast bandwidth for custom-ers, with highly competitive airtime packages and compre-
hensive customer support. Our existing Ku-Band and newly launched C-Band VSAT networks mean that we are able to provide broadband speeds of up to 8 MB even in the remotest locations,” says Peter Crafter, global sales director at NSSLGlobal.
According to Crafter, the company’s products are geared to enhance the qual-ity of life and living conditions in mining locations. High broadband speeds and sig-nal, which are more resistant to weather conditions such as rain fade, mean that people on-site are able to stay connected. This leads to greater overall efficiency and improved productivity.
NSSLGlobal’s latest offering, the Broad-IP FlyAway, is a portable satellite that can be aligned via a smartphone app and phone. It is focused on delivering portable connectivity and is easy to carry in its case, unpack and set up. “We really see this type of offering as the way forward for those looking for a more temporary or flexible option,” Crafter notes.
As the mining sector is one of the mul-tiple key industries for the company, it
remains a core focus going forward.
The future“We are always looking to advance our services
and technology, which means enhancing cov-
erage, connectivity and hard-ware to
best suit the mining industry’s
needs. So expect to see fur-ther developments to our
service and hardware packages. The recent expansion of our C-Band network to offer truly global coverage is a prime example of what we’re doing.”
The new C-Band network expansion utilises three satellites to provide global coverage: NSS9, Intelsat 902 and SES 4. The bandwidth’s high resistance to weath-er and broad coverage footprint makes it a popular option for customers who have a need for truly global high-speed broad-band, particularly those in areas affected by “rain fade”.
Th e new C-Band service is off ered along-side NSSLGlobal’s existing Ku-Band Broad-IP service. Th is includes NSSLGlobal’s ‘Ser-vice Assurance’ package, which will now feature seamless failover between C- and Ku-Band services alongside an L-Band ser-vice, to provide customers with high speeds, an ample coverage footprint for those work-ing across the globe and extra peace of mind through two levels of redundancy.
REMOTE REGIONS
Mines CAN stay connectedMining in remote areas is becoming more common as the world’s ‘known’ reserves deplete. This equates to a greater demand for connectivity from these regions to the outside world. NSSLGlobal provides communication systems that enable telephone and internet connection across Africa.
ABOVE New mines are being established in very remote regions
RIGHT Peter Crafter, global sales director at NSSLGlobal
Earthmoving & transport
Ins ide Mining 03 /201356
B asil Read Mining’s (BRM) major contract – Debswana’ Jwaneng Cut-8 mining contract Phase 1 project in Botswana – may have
come to an end in 2012, but it will carry the company’s reputation forwards for its achievements on-site.
“I have no doubt that our reputation for managing mining operations on behalf of some of the world’s most prestigious min-ing clients will carry our name forward in the industry and ensure we continue to secure significant mining contracts going forwards, particularly across the SADC re-gion,” explains BRM’s MD, Antonie Fourie.
To date, the company has three significant contracts in place, is negotiating to extend a third
MOVING EARTH ACROSS AFRICA
The relevance of reputationContract miner Basil Read Mining is not deterred by the general project slowdown in the mining sector, particularly in South Africa. The company is focused on broadening its horizons across the SADC region and is working to secure a milestone long-term contract, writes Laura Cornish.
Earthmoving at Jwaneng site
Ins ide Mining 03 /201356
, p ygion,” explains BRM’s MD, Antonie Fourie.
To date, the company has threesignificant contracts in place, isnegotiating to extend a third
gand is working to secure a milestone long-term contract, writes Laura Cornish.
Earthmoving atJwaneng site
and is tendering on a seven-year mining contract, which, if secured, will represent its longest and largest contract to date.
Botswana“We are currently approaching year two of a five-year multibillion rand contract on Debswana’s Cut-8 Phase 2 services project. Through our mining joint venture compa-ny, Majwe, established specifically for this project, our contract includes mine sched-uling, drill and blast, truck and shovel waste removal and limited ore mining. We will move a staggering 156 million cubic
metres of material over the full term of the Jwaneng contract, which com-
menced in June 2011.”Fourie says the three-tiered
joint venture is working
well and adds that the company’s overall process has sped up since its start.
BRM has, more recently, expanded its mining portfolio in Botswana outside of diamonds, having secured a mining agree-ment with Discovery Metals to assist in-crease production rates at its Boseto copper project with two excavators and ten 100 t trucks on-site. Outside of South Africa, the majority of the company’s work is generat-ed from Botswana mining projects.
“Broadly speaking, there are a few oppor-tunities for additional work in Botswana.
We are currently assisting with tender pric-ing and estimates for some of them.”
The company’s drilling business has a well-established footprint in Botswana as well. All of its drill rigs are in opera-tion in the country, including Debswana’s Jwaneng and Orapa mines, both lasting until 2014.
South AfricaThe beginning of 2012 saw BRM award-ed a three-year opencast mining contract at Northern Cape-based Beeshoek mine,
Earthmoving & transport
57Ins ide Mining 03 /2013
We will move a staggering 156 million cubic metres of material over the full term of the Jwaneng contract
BRM projects 2013DATE ORGANISATION PROJECT DESCRIPTION PLACE STATUS
January2013
Mpule Kwelagobe
Back-To-SchoolMajwe Mining handed out shoes and socks to all school-going children at the Mpule Kwelagobe Orphanage centre under our Back-To-School Initiative.Back-To-School is our company’s new initiative that aims at assisting the unprivileged children of our society with school related needs. This project is also a contribution towards the Vision 2016 pillars of a Compassionate and Caring nation and that of an Educated and Informed nation.Majwe Mining will also hand over a cheque to the centre. The money is sponsorship towards the centre’s tutoring programme meant to address the children’s educational challenges, to enhance their competency and learning skills thereby enabling them to perform better at schools.
Jwaneng Completed
January 2013
All Jwaneng primary and junior secondary scho ols
Majwe has come up with an idea of introducing Academic Excellence Awards. On 11 January 2013 Majwe engaged head teachers from all Jwaneng primary and secondary schools (inclusive of Mogale CJSS from Maokane) to discuss the initiative. The awards are meant:• to motivate learners on their education• to encourage healthy educational competition among the schools• improve end of year examination results in Jwaneng and Maokane
Jwaneng and Maokane
Discussions ongoing
January 2013
District youth On 22 January 2013 Majwe Mining engaged Botswana National Youth Council Coordinator and District Youth Officers with the possibility of hosting a District Youth Empowerment Exposition. The exposition is meant to expose the youth to financial and business management. Business experts, financial institutions and other facilitators will be invited to the exposition. The youth will have the chance to showcase their projects.
District Discussions ongoing
chance to show
which is co-owned by Assore (through Assmang) and African Rainbow Minerals.
“We were awarded the project in joint venture with Murray & Roberts’ Concor Mining, and we moved on-site and commenced with mining during the middle of February,” says Fourie.
“The timing could not have been better. With Rössing coming to an end, we were able to relocate the machines from Namibia, which includes four excavators and 16 trucks, to our new site. We have been on-site for a year now and are making great progress. This project represents a milestone for the company, it’s our first iron ore project and we have made great inroads into understand-ing the requirements of hard rock applications.” The company has moved 15 Mt to date and will move 48 Mt in total.
BRM subsidiary B&E has the percussion drilling contract at De Beers Consolidated Mine’s Venetia mine, which was extended an-other three years. The majority of its drill and blast fleet (13 drill rigs and two pit vipers) is based and operational at Venetia.
The company is also in negotiation with the client to extend its load and haul contract at the mine. It was awarded a bench cleaning contract at Venetia, together with a small portion of the waste stripping late in 2011. “The expansion to the pit requires a significant amount of cleaning of the existing benches, and we also need to make sure that it is still secure for the mine to op-erate in the bottom of the pit as well as prepare it for the under-ground expansion.”
B&E is tendering on numerous work in the Northern Cape on the smaller fleet of drill rigs. “The company complements our mining business nicely and diversifies our service offering well.”
The way forwardWhile the company achieved its turnover and profit targets for 2012, Fourie admits that it needs new contracts to keep the fleet running. “We want to secure longer term contracts of at least five years or more. We always target growth in the year, but expect to spend 2013 getting our house in order to prepare for a project influx in 2014.
“We need to explore the greater SADC region and are working hard to secure the right teams to do the work properly.”
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“We need to explore the greater SADC region and are working hard to secure the right teams to do the work properly”
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across Africa, forging alliances with the biggest players in the industry. Our drilling and blasting
activities, housed in our subsidiary, B&E, is the largest company of its kind in the region. And our
recent merger with TWP could see Basil Read getting even more involved in the mining sector in the
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Jwaneng Cut 8 Diamond Mine - Botswana
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Earthmoving & transport
In a project typically perceived to take three months, heavy lifting and trans-port company Vanguard managed to plan and execute the move in only three
weeks, despite poor infrastructure and the challenge of a steep mountain pass.
Vanguard confi gured an 18-axle trail-er to a Mercedes-Benz 4150 Actros with a gooseneck, which was ideal for crossing the majority of the 27 en-route bridges. “For bridges not rigid enough to support the transformer’s 130 t load, we worked with BKS and WBHO to construct temporary low-lying bypasses from sand and gravel,” says Vanguard’s MD, Bryan Hodgkinson.
Ins ide Mining 03 /201360
Th e fi nal stretch of the journey took the cargo up the Songa Mountain pass, which features a 35% gradient in certain places and sharp S-bends. “Th e 49 m trailer and prime mover combination was too long to get around the bends, so we transloaded the transformer at the base of the pass, recon-fi gured the trailer into a more manoeuvrable seven axles and hauled the load cautiously up the fi nal climb,” says Hodgkinson.
A number of contractors were hired by the project’s main consultancy firm, BKS Group Mozambique, to complete the relo-cation before the start of the rainy season – which would have severely impacted on
MOVING MOUNTAINS
Making the miles
An emergency replacement transformer was recently transported
2 300 km from Johannesburg to the Cahora Bassa power station in north-western Mozambique in
record time after one of the main transformers broke down.
the construction of the temporary bypass-es. Subcontractors included WBHO, which assisted with the civil construction of the bypasses; Calmark Solutions, which han-dled the border crossings from South Af-rica to Zimbabwe and from Zimbabwe into Mozambique; and ALC, who handled the route survey.
ABOVE The 130 t transformer on its fi nal climb through the Songo Mountain pass
BELOW The transformer crossing one of the specially constructed low-lying
MINING AND QUARRYING DIVISION:• Static & Mobile Crushers• Static & Mobile Screens• Tracked Washing Systems (TWS)• Tracked Telescopic Conveyor Systems• V.S.I. Crushers• Trommel Screens• Rock Drills• Hydraulic Breakers• Optical Belt Scales• Minerals Processing Systems• Modular Plants• Heavy Duty Static & Mobile Rotary Barrel Screens• Screener-crusher Buckets• Excavator Attachments• Blockmakers• Recycling Systems
Earthmoving & transport
W e see this as an exciting op-portunity to expand into the mining sector,” comments Imperial Distribution’s MD,
Heinrich Strauss. He explains that Joy Global Mining’s distribution network com-prises two components. “On the one side, there is an abnormals company, which transports the heavy machines, while the other element – and the contract we have secured – is the distribution network for spares and parts replenishment to the mines, as well as the breakdown service.”
TIP-TOP TRANSPORT
The joyful edgeMining equipment manufacturer Joy Global Mining has awarded the outsource contract for its distribution service to Imperial Distribution, part of the Imperial Logistics Group. The three-and-a-half year contract, which was won on open tender, represents the company’s first in the mining industry.
Imperial Distribution diff erentiated itself from its competitors with a full distribution service off ering. “As a distribution expert, we do much more than just provide trucks,” Strauss stresses. “We off er planning and transport management systems, proof-of-de-livery management, proof-of-delivery auto-mation, as well as exceptional responsive-ness on the breakdown service.” Th e latter is critical, he notes, since the breakdown service demands an extremely high level of service and very short turnaround time, in order to minimise the costly repercussions of
downtime at a mine. “Th e breakdown side of the distribution contract is very dynamic and very intense, with 24/7 service.” Th e spares and parts replenishment distribution runs according to a daily plan and Imperial Distri-bution is already adding value for the client by optimising routes and planning.
A dedicated staff complement of 15 drivers and three management staff have been allo-cated to Joy Global Mining and will operate from the company’s Wadeville premises. Up to 10 additional fl exitime employees are on hand to assist when needed.
Imperial Distribution will run a dedicated fl eet of seven breakdown vehicles for Joy Global Mining, along with six vehicles for stock replenishment. “One of the advantages that our client will gain – and which we have already been able to leverage – is our ability to call on Imperial Truck Rental to supply ex-cess capacity when more trucks are needed,” Strauss adds.
Driving costs down, while maintaining crit-ical service levels – particularly on the break-down side – is what Strauss sees as Imperial Distribution’s greatest challenge on this new contract. Th e company is also committed to providing Joy Global Mining with optimal administration services, he concludes.
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Earthmoving & transport
The new system is currently on trial at a coal mine in Mpumalanga and
the commericial roll-out imminent. Lourens says both the collision warning system (CWS) and colli-sion avoidance systems (CAS) are required in the mining industry, depending on the nature of the application.
“From our ongoing dialogue with the De-partment of Mineral Resources, we gather that some form of legislation focusing on the installation of CWS technology is immi-nent. Th e mining industry will therefore be obliged to introduce this technology at all operations and I would caution these com-panies to properly evaluate all CWS systems available by verifying customer references to confi rm that these systems actually live up to their claims,” Lourens points out.
A CWS consists of a sensing device that de-tects the presence of an object, an interface that provides an audible and/or visual alarm to the equipment operator and the wiring between the two.
Th ese systems warn both vehicle opera-tors and pedestrians of potential collisions and danger. Sensor technologies include ul-trasonic echo detection, infrared refl ection,
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STATE-OF-THE-ART COLLISION INTERVENTION SYSTEM
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radar (radio detection and ranging), video cameras and radio frequency iden-tifi cation (RFID) systems and are deployed depend-ing on the specifi c applica-tion. RFID is proven as the only successful technology for underground CWS.
A CAS is a system of sensors that is placed within a vehicle to detect potential collisions with objects or personnel. Th is technology is able to inter-act with the mobile equipment or vehicle’s brakes and bring it rapidly to a complete and safe stop.
“What diff erentiates our CWS technolo-gy is the fact that it works equally well on electrically driven and diesel-powered vehi-cles. We are the fi rst to have achieved this capability and, with more than half of the trackless or mechanised mining equipment presently in use in the industry being diesel powered, this is a critical requirement.
“Having the biggest market share in the CWS arena has allowed us to gather custom-er input from across the full spectrum of mining operations in and around South Afri-ca, and we’ve applied this valuable feedback to the design of the next generation CWS 900 with a very exciting result. It is eff ec-tively a CWS that can be applied as a CAS.”
Electronic safety equipment specialist Booyco Electronics will soon introduce a new generation state-of-the-art collision warning system, which will take the technology and application to a whole new level, according to MD Anton Lourens.
Booyco Electronics’ new third-generation CWS system showing
the cap lamp and tag
Amec Minproc 2Atlas Copco 45Basil Read Mining 59Basil Read Matomo 29Bell Equipment Co SA 64BLC Plant Company 62Booyco Electronics 58Capital Star Steel 8ELB Equipment 61FLSmidth 36Kaytech 21Komatsu Southern Africa OFCLoesche SA 39Metso Minerals 24Micromine 35MineRP 47MN Cranes 63
Model Maker Systems 52NSSL Global 55Osborn Engineered Products SA 34Pan African Resources 7Pilot Crushtec 53Watertec Africa and Pumps Valves & Pipe 2013 43Softline Accpac (Sage) 50Tega Industries 35Tenova Bateman Technologies IFCThe Dickinson Group OBCTrollope Mining Services 41TWP 19Voith Grindex 28Whittle Consulting Africa 25Zest WEG Group IBC
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