MEDIA ISSN 1999-8872 • R35.00 (incl. VAT) • Vol. 5 • No. 5• May 2012 Highly commended 2011 PICA Cover of the Year - B2B Publishing ining www.miningne. ws MEDUPI’S MASSIVE STOCKYARD DIAMONDS A sparkling sensation PANEL DISCUSSION ICT – optimising critical information pathways PYROMETALLURGY The old, and the new ThyssenKrupp Materials Handling Snowden Technologies’ GM Nic Pollock beds down his strategy to mature the business HOT SEAT THE KNOWLEDGE YOU NEED FROM THE INDUSTRY EXPERTS
Highly commended 2011 PICA Cover of the Year - B2B Publishing
iningwww.miningne.ws
Medupi’s Massive
stockyard
DIAMONDSA sparkling sensation
PANEL DISCUSSIONICT – optimising
critical information pathways
PYROMETALLURGYThe old, and the new
ThyssenKrupp Materials Handling
Snowden Technologies’ GM Nic Pollock beds down his strategy to mature the business
HOT SEAT
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
HUSQVARNA CONSTRUCTION PRODUCTS
The K 970 Chain can make 390 mm cuts from one side. It can make openings as small as 11 cm x 11 cm, so it is perfect for irregularly shaped openings. The power-to-weight ratio is first rate and features SmartCarb™, a built-in automatic filter compensation and a highly efficient vibration dampening system. The K 970 Chain is also equipped with an X-TORQ® engine, which reduces emissions up to 75 % and lowers fuel consumption by 20 % and DuraStarter™, a dust-sealed starter that boosts reliability and product life. Air Purge and a decompression valve make it very easy to start.
HUSQVARNA K 970 CHAIN94 cc - 4.8 kW - Bar 350 mm - cutting depth 390 mm, weight excl. fuel and cutting equipment 9.4 kg
ICT PANEL DISCUSSION3737 Mining’s information technology providers
ELECTRICAL AND INSTRUMENTATION4646 Wade Walker’s electric new strategy
4848 ENI’s aspirations to increase market share
PYROMETALLURGY5050 Verref – rich in refractories
5353 Energy effi ciency – it’s all in the ‘tweak’
TRANSPORT AND LOGISTICS5656 A mega manganese transport contract
5858 Botswana carries the load
PROJECT DELIVERY6060 The latest on equipment components and
essential services
CETERUM CENSEO6464 SA mining needs state intervention
20
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1Ins ide Mining 05 /2012
3Ins ide Mining 05 /2012
Editor’s comment
It is common knowledge that decades of exploration and sampling have revealed that while there may be thousands upon thousands of kimberlite pipes across the globe, only a ‘handful’ of them are viable to mine.
Today, well over two centuries since the fi rst dia-monds were discovered and mined, many of those pipes have been depleted of their carats.
All of South Africa’s known diamond-rich pipes are in operation and ramping up to deliver the same quantities as they once did in their prime.
De Beers Consolidated Mines (DBCM) is set to invest billions in converting its opencast Venetia mine into an underground operation, for example, enabling it to deliver the same number of carats as it has already produced since it started production.
Nevertheless, one fact remains dominant in every diamond producer and, hopefully, consumers’ minds – when will the carats run out? Are there any new pipes left to discover, particularly in South Africa? According to DBCM CEO, Phillip Barton, the answer is yes! Although he declines to say where, he con-fi rms that they are looking. And if anyone can fi nd a new kimberlite, it’s De Beers!
Considering geographical constraints are no longer constraints, the world and its oceans have already become new exploratory zones. Diamonds are being mined along the Namibian coast success-fully, begging the question – what exactly can we extract from our sea beds? How much is really out there? We have only tapped into a tiny percentage of the possibilities.
But why stop with our oceans when we have an en-tire solar system within reach?
An American company called Planetary Resources, constituted largely with space exploration scientists from NASA (National Aeronautics and Space Ad-ministration), has announced its intention to mine nearby orbiting asteroids for natural resources, spe-cifi cally PGMs, iron ore, nickel and water.
I am still struggling to deal with the reality of this possibility – but this is no joke, the world is evolv-ing and technology really is taking us to the stars. According to the company’s co-chairmen, Eric An-derson, who pioneered commercial spacefl ight, and
Peter Diamandis, an international pioneer in the commercial space arena, there are almost 9 000 as-teroids to explore and that is just the starting point. Th ey say there is more platinum in one asteroid than all the platinum that has been mined in our history. If they are confi dent enough to say that, then their aspiration to mine asteroids is more than just a dream.
Considering the company has gathered together a host of ‘new generation’ risk-tolerant investors, such as CEO of Google, Larry Page, and James Cam-eron; the company is fi nancially ready to bring the solar system’s resources to our doorsteps. And they are not talking about the distant future, but intend to make this a reality in theirs, and our lifetimes. Th is is ground-breaking news – and will change the world forever.
Asteroids aside, our cover story this month – the massive coal stockyard for the new Medupi power station – is not only fascinating to read about, but is even more fascinating to see, which I had the enor-mous pleasure of doing. And I have the safety jacket
and hard hat to prove it, as you can see. A huge thanks to Th yssen-Krupp Materials Handling for
hosting me on site and allowing me to appreciate the scale
of the stockyard, and the enormous machines they are supplying on
site to ensure it runs like clockwork. Watch this space for updates of the
project over the rest of the year.
Laura Cornish
MINING
South Africa’s diamond sector is overflowing with expansion and optimisation projects, driven primarily by escalating prices, but more importantly by the fact that there are almost no more economical pipes left in the world to mine, raising the value of diamonds as they become increasingly rare.
To our avid readers, be sure to sign up and get the latest updates and inside scoop from the mining industry. Check out what we are talking about on our Facebook page or follow me on Twitter and have your say.
@mining_news
www.facebook.com/pages/Mining-News
compiled by Ameerah Griffin
4
Mining newswww.miningne.ws
Ins ide Mining 04 /2012
Top mining stories headlining this month
AUSTRALIA Platsearch announces JV with Thomson Resources
Source: www.miningne.ws
Australia-based resource company PlatSearch has entered into two joint venture agreements with Australian exploration company Thomson Re-sources. The agreements cover fi ve exploration tenements, wholly-owned by PlatSearch, over the Ghostrider and Achilles projects – located within the Cobar region of central-west New South Wales. Thomson can earn up to 80% interest in each with exploration expenditure of US$1 million (R7.8 million) over fi ve years on each project. PlatSearch will maintain a 20% ‘free-carried’ interest up to Defi nitive Mine Feasibility stage.
Both projects are considered high quality and will add value to the exploration portfolio of Thomson, a company that PlatSearch helped conceive and bring to IPO. PlatSearch currently holds a 25.6% interest in Thomson. Since listing on the Australian Securities Exchange in De-cember 2010, Thomson has conducted signifi cant exploration within the Thomson Fold Belt, which includes the projected northern extension of the Cobar Basin, one of Australia’s important mining districts. Thomson Resources is the largest ground holder in the region and much of Thom-son’s recent work has focused on exploring rock units believed to be equivalent to those found within the Cobar Basin. Thomson has built up considerable expertise in exploring for Cobar-style deposits and will bring this capability to the joint venture.
Thomson Resources is an active explorer
| SOUTH AFRICA |
IDC launches a major new PGM ventureSource www.miningne.ws
The Industrial Development Corporation (IDC) of South Africa, together with Pallinghurst, an-nounced a major investment in the platinum mining and benefi -ciation industry that will see the creation of a signifi cant platinum group metals company in the North West province of South Africa. NewCo has the potential to create up to 9 000 direct and permanent jobs, and produce up to 1.1 Moz/pa of PGMS in the next fi ve years.
The DC has made a R3.24 billion investment for a 16.2% interest in the consolidated entity, which provides the foundation for a large, shallow and low-cost mining complex, with long life – in excess of 30 years.
The venture has a promising strong growth profi le. NewCo’s resource base is approximately 70 Moz of 4 PGM and the major-ity of these ounces are shallower than 600 m.
“This consolidation has been almost fi ve years in the making and represents an exciting devel-opment for all stakeholders. The IDC’s equity investment will allow NewCo to remain debt-free with a strong balance sheet, thereby providing fi nancial security to
execute our unique growth oppor-tunities. Our benefi ciation partner-ship with the IDC has the potential to transform the PGM smelting industry and to provide third-party juniors access to cost-effi cient con-centrate processing,” says CEO of Pallinghurst, Arne Frandsen.
| SIERRA LEONE |
Stellar Diamonds announc-es high diamond grades for Lion-5 KimberliteSource: www.miningne.ws
Stellar Diamonds has provided fi nal bulk sampling diamond grades and diamond values from its Lion-5 kimberlite dyke at its 87 km² Kono diamond licence in eastern Sierra Leone.
“The fi nal results from the fi rst phase of evaluation of the Lion-5 kimberlite prove that the body is of both high-grade and high-quality diamond. Based on these results, the company is planning a resource defi nition drilling cam-paign over Lion-5, as well as the nearby Pol-K kimberlite, to estab-lish a signifi cant maiden resource for the Kono project,” says chief executive, Karl Smithson.
Over $US19 million (R148.4 mil-lion) has been invested to date on the Kono licences by Stellar and its former joint venture partners. This has resulted in the systematic exploration of the dyke swarm, including a high-resolution geo-physical survey and a number of
test shafts being sunk to up to 85 m depth for bulk sampling. Smithson believes that the Kono project can substantially add to the 3.1 million carat resource base recently established from the Tongo (0.66 million carats) in Sierra Leone and Droujba (2.5 million carats) in Guinea, kimberlite pro-jects, both of which will also be expanded as Stellar continues to grow its respective resources.
| NORTH AMERICA |
Mining chief resigns as part of deal with Rio TintoSource: www.nytimes.com
Robert Friedland, one of Cana-da’s most prominent mining devel-opers, resigned as chief executive
of Ivanhoe Mines, as part of a $US 1.8 bil-lion (R14.1 bil-lion) eq-uity fi nancing agreement with Rio Tinto, the company’s major share-holder. Along with Friedland, six other directors and four executives at the company also resigned. They will all be replaced by Rio Tinto appointees.
The agreement signals the ap-parent end to a long-running battle between Friedland and Rio Tinto, which brought its stake in Ivanhoe up to 51% in January.
Rio Tinto former CEO, Robert
Friedland
For explosives, think BME.
Ins ide Mining 05 /20126
Cover story: materials handling
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A mighty BIG contractIn November 2009, Eskom awarded Thys-senKrupp Materials Handling (TKMH), a division of ThyssenKrupp PDNA Engineer-ing, with the turnkey contract to design, manufacture, construct and commission the coal stockyard, which serves as the ‘coal pit stop’ between the colliery and the de-veloping Medupi power station.
“The contract also includes all of the conveyors in the stockyard, as well as two elevated conveyors linking the north and south silos, seven transfer houses, two drum reclaimers and two stackers,” says
Jim Hoy, project manager. The second drum reclaimer, which is due to be com-pleted in May 2013, will provide redundan-cy in the system.
Despite Eskom announcing that the first unit of its new Lephalale-based power sta-tion is behind target, TKMH retained its Eskom-specified deadline: to be ready to receive its first coal in May.
Activity on site a month prior to the dead-line was a hive of activity – revealing the stockyard development to be far advanced and the final stages of completing both the first stacker and reclaimer well under way.
“Two of the transfer houses are almost complete and the remaining five are far advanced as well. The kilometres of con-veyors, including an elevated portion feeding the silos, all show significant pro-gress,” assistant marketing manager, Mat-thias Göing pointed out during a site visit in April.
In addition to meeting its deadline target, Göing adds that the massive bi-directional drum reclaimer is the biggest drum reclaim-er in the world, measuring 43.4 m in width.
Th e diameter of the drum shell alone is 4.7 m, with a 7.2 m cutting circle, and
FEEDING MEDUPI
A stockyard of substantial proportionsMay signifi es a milestone event for materials handling experts ThyssenKrupp
Materials Handling as its largest contract awarded to date – the Medupi power
station coal stockyard – moves into operation, writes Laura Cornish.
7Ins ide Mining 05 /2012
Cover story: materials handling
weighs just under 200 t. Th e mass of the en-tire machine is about 500 t. “It alone is capa-ble of recovering enough coal to feed all six boilers at full operational capacity – deliver-ing 4 788 MW of power,” he says.
“Our drum reclaimers are selected for their high blending effi ciency and reliability. Th ey are stable and long-lasting in operation and have a low total cost of ownership,” Göing continues. Both stacker and reclaimer are automated and are designed to operate re-motely from a central control room.
“Until the coal is ready to feed the fi rst boil-er (boiler 6), our stacker, drum reclaimer and conveyors will stand ready,” Hoy points out.
Th e stockyard itself will comprise four 80 000 t working stockpiles and an ad-ditional two seasonal stockpiles, ensur-ing that the power station will have a continuous supply of coal in the event of an interruption in supply from the mine.
TKMH retained its Eskom-specified deadline: to be ready to receive its first coal in May
BELOW Side view of the stacker with by-pass tripper and the drum reclaimer
RIGHT Belt conveyor leading to transfer house
Ins ide Mining 05 /20128
One conveyor belt will feed a maximum of 4 000 tph of coal from the Grootegeluk mine to the stockyard, while one of two conveyors will feed 3 400 tph from the stockyard to the two 1 000 t silos, which in turn will feed the boiler lines.
Unparalleled valuesAlthough part of a global organisation, TKMH is ‘truly South African’. All design work, man-ufacture and part sourcing is executed locally. “Our mandate was to achieve 92% local skills and supply content for our Medupi contract,
which we exceeded. We believe in developing and uplifting local skills and retaining them in the country,” says Göing.
The company embraced local initiatives established to alleviate unemployment and promote small enterprises, such as AsgiSA (Accelerated and Shared Growth Initiative for South Africa).
Says Hoy: “We found numerous BEE companies, including black women-owned businesses and small/medium enterprises in Gauteng and the surrounding areas of Lephalale, that were properly qualified and we would like to use again in the future. The challenge was securing those who were not already extremely busy and flooded with work. There were also many who were not qualified and Eskom-compliant. De-spite such challenges, we were successful in sourcing and securing the right companies. This is in line with our philosophy to inject and recirculate money into the country and the economy, and help develop a long-term profitable South Africa.”
“The massive bi-directional drum reclaimer is the biggest drum reclaimer in the world, measuring 43.4 m in width.” Assistant marketing manager, Matthias Göing
Eskom – a valuable client
Eskom has for years been one of TKMH’s most valuable and longest-standing clients. There are few Eskom plants in South Africa that are operating without some piece of TKMH equipment.
One of the company’s most recent projects included the supply of an ash handling facility, including shiftable conveyor systems and two 1 200 tph spreaders to handle all ash for Eskom’s Majuba power station in Mpumalanga.
Looking forward, TKMH will take its materials handling skills to Eskom’s second new power station, Kusile, whose contract includes three drum reclaimers and two stackers.
Cover story: materials handling
Close-up view of the drum reclaimer
Matthias Göing, standing on the stacker on site
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Ins ide Mining 05 /201210
Hot seat: ICT
A lthough only joining the com-pany in February this year, min-ing ICT veteran Nic Pollock is al-ready well under way with a new
business model and strategy aimed at grow-ing the technology division further and de-livering it to the market as a mature and commercial software solutions provider.
His position sees him join Snowden’s sen-ior management team and although based in Perth, Australia, he will carry out his role in South Africa and across the globe.
“Snowden Technologies has reached the 10-year mark and is ready to adapt its
premium brand market reputation to a more mainstream market,” Pollock explains.
When Snowden CEO Craig Morley found-ed the division, his vision was to build technologies to strengthen the company’s consulting force. Today, it is recongised for its ability to develop unique and cus-tomised software solution tools, often ex-clusively for blue-chip mining clients. This however has seen some of its more lead-ing innovative products become industry standard practice.
“Snowden Technologies has turned 10 years old and the appointment of Pollock
coincides with a need for us to mature this important line of our business. Pollock’s experience, particularly with his achieve-ments at previous companies Gemcom and Mincom, gives us the direction we need for future growth,” says Morley.
Says Pollock: “As the mining technology market begins to mature more rapidly, de-mand will dictate a more simplified and off-the-shelf product suite landscape. My intention is to develop our product suite along this avenue – making our tools com-mercially available. Thanks to Snowden Technologies’ foundations, it is uniquely
Maturity brings new growthMining information systems solutions provider Snowden Technologies, a division
of global mining consultant Snowden, is undergoing significant transformation
as newly appointed group GM Nic Pollock beds down his strategy to mature the
business, writes Laura Cornish.
11Ins ide Mining 05 /2012
Hot seat: ICT
positioned to walk on both sides of the street. We have a large and experienced team of software development profession-als and over 160 senior mining profession-als providing valuable guidance to mining clients all over the world. We walk the talk in our understanding of the full value chain and can identify where the gaps lie in the software offerings out there.”
As a mature software technology house, standards will be put in place to sell prod-ucts across a wider market. In addition to maintaining its suite of current software solutions, the company will continue to fulfill its role as a ‘technology incubator’, and it will focus on creating new prod-ucts to fulfil an identified gap in existing solutions that can be roled out on larger, broader platforms.
The case in pointSnowden’s Reconciler software solution, originally designed as a consulting product, has become one of the company’s most suc-cessful commercial systems.
It captures and reconciles information from resource/reserve estimates, grade control, truck dispatch, survey pick-up and plant production systems.
“We have customised this particular so-lution for many mining clients, including BHP Billiton, Rio Tinto and Kumba Iron Ore,” says Pollock.
The intention is to stop releasing cus-tomer-specific versions of the product and standardise it as an off-the-shelf package beginning with Version 7, due out later this year.
Snowden is also evaluating the best distri-bution channels for other popular software tools including Evaluator and Supervisor.
Evaluator is a strategic optimisation tool, also originally designed for the consulting business. Today there are more than 50 projects using it. “We are looking at our
options for taking this product to market – either ourselves, or through a vendour.”
The Supervisor suite of applications pro-vides an efficient, robust and easy-to-use toolset for practical geological data analysis. Initially developed for use by Snowden’s consultants, the application has been adopted by clients throughout the world and is now regarded as a benchmark by the mining and resources industry.
It has an extensive track record of provid-ing business value to the resources industry,
Pollock’s background
Pollock joins Snowden with 20 years of experience in the enterprise software and services markets globally, commencing in 1992 with Natwest Bank in London and then Oracle in Sydney. Since leaving Oracle to set up Viewlocity in Australia, Pollock has gained significant experience in running Asia-Pacific operations. Since moving back to Perth in 2004, almost half of his career has been spent servicing the mining and resources sector for software companies Gemcom and Mincom.
with 300 sites around the world actively using the software suite across most commod-ity types, including bauxite, chrome, diamonds, iron ore, m a n g a n e s e , nickel, sil-ver, uranium, coal, copper, gold, lead, mineral
sands, platinum, tantalum, zinc and more. “We are open to ensuring we secure the best distribution channels for this prod-uct,” Pollock adds.
“As the mining technology market begins to mature more rapidly, demand will dictate a more simplified and off-the-shelf product suite landscape.” Nic Pollock
Hot topic: coal
Ins ide Mining 05 /201212
I t is common practise in the mining industry to change or disengage min-ing contractors; this could happen for for many reasons, including lack
of performance. Unfortunately, when Wescoal Mining
took this route with Sutha Civils, the situa-tion turned nasty.
Sutha Civils attempt to liquidate Wescoal Mining, the mining arm of coal trading and processing company, Wescoal Holdings, based on unsubstantiated claims that the company was selling inferior quality coal to Eskom. It turned out to be completely false.
WESCOAL FORGETS THE PAST
And creates a bigger, brighter futureDespite undergoing almost a year of legal battles and court proceedings with
its opencast contractor Sutha Civils (and BSM Mining), Wescoal Mining has
emerged victorious and has wasted no time in re-implementing a significant
growth strategy aimed at realising an annual coal production of between 2 and
4 Mtpa in the next three years, CEO Andre Boje tells Laura Cornish.
“Although damaging to our reputation, we have put this period behind us, and are returning our attention back to our priority: growing our mining business,” says Boje.
“We have now issued a resource statement for a variety of properties we own and will either mine, sell or relinquish them back to the state. We don’t want to be a prospec-tor; we want to be recognised as a serious player in the junior coal mining space. We remain active and driven by our focus to supply Eskom and elevate overall margins within the company to a higher level.”
The company acquired a significant 51% stake in a greenfields prospect – Pegasus – late last year. It remains under cautionary, however, regarding an asset swap, as well as the potential sale of the remaining 49% stake in Pegasus, which is owned through Wescoal chairperson, Robinson Ramaite.
Boje believes the coal market in particular is back to a pre-recession boom. The com-pany wants to benefit from current prices and so is keen to move its new asset into production as quickly as possible.
ABOVE AND OPPOSITE Aerial views of Khanyisa colliery
Hot topic: coal
13Ins ide Mining 05 /2012
Looking back over 2011, its single operat-ing mine, Khanyisa returned to full produc-tion in April, despite production diffi culties.
For 2012, its Vlakvarkfontein asset is expected to move into production after the mining right is granted, which at the time of writing was expected at the end of March.
“Although Khanyisa only has another year of operational life, it should deliver on its annual target of 1 Mtpa. Our 18-month to two-year lifespan Vlakvarkfontein project will be accelerated into production without hesitation following receipt of our mining licence,” Boje states.
Pegasus: the crown jewelLate last year, Wescoal Holdings announced it had acquired 51% of the Pegasus pro-ject, which includes 919 ha of the Geluk 276 farm and a further 250 ha of surface
rights in relation to portion 2 of the farm. Previously owned by BHP Billiton Energy Coal South Africa, Pegasus is an unde-veloped metallurgical and export quality thermal coal deposit with a 15 Mt meas-ured resource. It is situated 10 km from eMalahleni and is contiguous to Exxaro’s Inyanda colliery.
The deposit is shallow, with an aver-age stripping ratio of 1.46, and comprises Witbank coal field No. 2 Upper coal seam, No. 2 Lower coal seam and No. 1 coal seam. The ultra-low stripping ratio means the operation will be a low-cost opencast mining operation.
“The acquisition is in line with Wescoal’s stated goals of securing high-quality coal resources that can be mined by the open-cast method to increase production and sustainability,” Boje points out.
The intention is to move Pegasus into production at the end of 2013, after which it will remain operational for between eight and 10 years.
The Pegasus product is a low phospho-rus coal, which will be sold into the met-allurgical industry. Coal not meeting the required metallurgical specifications or
Mining resource statement
Portion Size Actions/future plans
Portion 16 of Vlakvarkfontein 213 IR
238 000 t of Eskom-grade coal
• Mining right application submitted to DMR (December 2010)
• Additional prospecting work being carried out
Portion 12 of Vlarkvarkfontein 213 IR
1.9 Mtpa of high-grade thermal coal
• Mining right application submitted to DMR (December 2010)
• Mining right application submitted to DMR (June 2011)
• Additional prospecting work being carried out
Silverbank 611 IR excluding portions 1,10, 12 & 14 district of Sanderton
3 925 ha24.5 Mtpa of Eskom and thermal coal
• Mining right application submitted to DMR (August 2011)
• Additional prospecting work being carried out
Verblyden 387 IS excluding portions 18 & 35
2 266 ha37 Mtpa of Eskom and thermal coal
• Mining right application submitted to DMR (August 2011)
Portions 8, 9 & 10 of Mooiplaats165 IR
Insufficient for additional comment
• Application for renewal of Prospecting Rights with DMR
Portions 1, 3,4, 6, 14, 23, 30-36, 40 and 62 of Elandspruit 291 JS district Middleburg
2 946 ha5.1 Mtpa of high-grade thermal coal
• Application for renewal of Prospecting Rights with DMR
Following preliminary prospecting it was determined that the following two resources are not economically viable and the Prospecting Rights will be allowed to lapse
Portions 4, 5,23, 23, 28, 42, 48 & 69-74 of Keerom 374 JS district of Middleburg
6 828 haInsufficient for additional comment
Portion 10 of the farm Bankfontein216 IR
5.1 Mtpa of high-grade thermal coal
matching export prices will be sold into the export market.
“There was intense competition from lo-cal and international mining companies to secure the Pegasus project as the reserve is recognised by the industry as one of the last great coal resources available in the Witbank and Middelburg coal fields,” says Boje.
An independent valuation of Pegasus is be-ing conducted by Mineral Corporation Con-sultancy. “Once a partner is on-board, we will move Pegasus forward rapidly. It will also require its own plant,” Boje notes.
With Pegasus in production, Wescoal will reach its 2 Mtpa mark by the end of 2014 and with an additional asset, it will achieve the 4 Mtpa mark by the end of 2015.
The intention is to move Pegasus into production at the end of 2013, after which it will remain operational for between eight and 10 years
Precious stones – diamonds
Ins ide Mining 05 /201214
DIAMOND DELIVERANCE
Rockwell rocks its turnaround strategy
Mid-tier TSX/JSE listed diamond mining company
Rockwell Diamonds has been undergoing a
dramatic business turnaround since James
Campbell took the position of CEO in June last
year, writes Laura Cornish.
In the space of a year, Campbell has im-plemented strategic milestones aimed at sustaining and growing the company’s production profi le and has already start-
ed meeting some of them. Smaller initiatives include placing all of the Northern Cape as-sets on CONTOPS (continuous operation) – with full implementation by the 2013 fi scal year – and ‘sweating the assets’ through opti-mal use of existing equipment. All resources and reserve estimates are 43-101 compliant.
Not only has the CEO appointed a new leadership team with the credentials to ‘un-lock and deliver Rockwell’s potential’, but has further resolved the company’s BEE ‘dif-fi culties’, acquiring a new diamond property in the process. He has also introduced a new technological innovation to its traditional al-luvial process aimed at extracting large car-ats. “When I joined Rockwell, the company was struggling to extract the maximum value from its operations. Each of our 74% owned assets required attention. We now have dedi-cated teams in place for each mine and they are already delivering on returning our mines to their full potential,” says Campbell.
In addition to the company’s three operat-ing mines – Saxendrift, Klipdam and Tirisano – it has a pipeline of high-potential projects that it will bring on stream to help grow its production profi le. Its target is to grow its an-nual carat production from 20 000 in 2012 (fi scal) to about 90 000 in 2016. And Rock-well’s timing could not be better – diamond demand for carats is forecast to grow at 6% per annum to 2020, outpacing annual supply growth of 2.8%.
THE OPERATING MINESSaxendrift – Middle Orange River (south bank): 0.5 carats/m³Acquired in 2008, the Saxendrift opera-tion’s value lies in the size and quality of its stones. The bulk of its diamonds are more than 3 ct/stone and, in the last two years, 83 diamonds larger than 20 ct/stone were recovered.
105 carat Saxendrift stone forms one of pair of exceptional round brilliant cut DIF diamonds,
measuring some 35 carats each In-fi eld screen at Klipdam
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While the mine’s remaining lifespan is short, Rockwell is investing substantial capital into the mine and is looking to increase its life through a number of initiatives. “We have commissioned a fit-for-purpose in-field screen and have im-plemented a bulk X-Ray (Bivitec) sorting machine that effec-tively concentrates and recovers diamonds in a single step,” explains Campbell.
The 200 tph machine commenced with tailings material testing in April and based on its success, will start processing run-of-mine (ROM) material afterwards. The machine will likely increase the frequency of recovering large diamonds (from 200 to 650 carats). The ultimate target is to lift Sax-endrift’s monthly production volumes to 150 000 m³/month (from 130 000 m³) by 2013, which equates its remaining lifespan to 3.7 years.
While adding inferred resources (6 million m3) could in-crease its lifespan, the company’s recent deal restructure with BEE partner African Vanguard Resources saw its acquire the Jasper property, which is contiguous to Saxendrift and holds massive potential to increase the overall project lifes-pan, with limited investment.
Preliminary estimates indicate that the past producing Jasper mine, which is a brownfield opportunity, has re-maining diamond-bearing deposits that are easily accessi-ble to the infrastructure at Saxendrift and could extend its life considerably.
Tirisano – North West province: 1.7 carats/m³The 10 806 ha property was acquired in September 2011, and although it had been placed on care and maintenance in 2008, its potential is significant with grades five times higher than Rockwell’s Northern Cape properties. The company has invested substantial capital into the project, including the construction of a new process plant capable of processing the
Strategic beneficiation partnerships
Rockwell holds a 20% stake in internationally recognised diamond sales and marketing facility, Flawless Diamond Trading House. The company uses it as a platform to market, sell and leverage Rockwell carat production.
The company further has a JV agreement with Steinmetz Diamond Group (started in 2007) for rough diamond with a weight of more than 2.8 carats. The stones are sold to Steinmetz at market price and Rockwell benefits from a 50% share in the profits on the ultimate sale of the polished stones.
The company has realised revenue of $US8.5 million (R68.2 million) in fiscal years 2009 to 2011 from 6 182 carats beneficiated through this channel.
Ins ide Mining 05 /201216
Precious stones – diamonds
mine’s high clay content material. It is also hosted in a unique geological environment comprising sinkholes.
“Today we are on track to have Tirisano running at full production – 90 000 m³/month by June,” Campbell states.
Plans are also under way to install a wet front end to mitigate the effect of rain and its effects on the ore before the next rainy season. This, however, is only the begin-ning of the mine’s projected future. SRK Consulting and Tacmin have developed a preliminary mine plan with a processing rate of 180 000 m³/month for 17 years.
An ongoing geotechnical study and pit optimisation programme is under way to increase Tirisano’s life further, extending the pits from a 90 m depth to 100 m. The ore body also remains open at depth.
Klipdam – Barkly West district, Northern Cape: 0.9 carats/m³The Klipdam property, together with the Holpan property (on care and maintenance) covers an area of 4 202 ha.
Rockwell is currently evalu-ating initiatives to consoli-date the two properties to process the remaining deposit pockets profitably. The inten-tion is to retain its process-ing capacity at 90 000 m³/month and determine the
best initiatives to extend its remaining two year lifespan, such as increasing its throughput expansion.
EXPLORATION AND DEVELOPMENT PROPERTIESWouterspan and Niewejaarskraal – Northern CapeBoth projects, expected to be operational around 2014, hold the key to expanding Rockwell’s longer-term growth strategy.
A preliminary assessment of the Wout-erspan project was commissioned by Rockwell in late 2010. A high-volume/low-cost production plant with a capacity of 340 000 m³/month is planned. The higher capacity of the new proposed Wouterspan
plant is expected to result in a significant reduction in cash operating costs, once the facility is operating at full capacity. Other anticipated benefits include more stable grades and a higher frequency of excep-tional stones.
The capital expenditure for the new plant at current prices is estimated to be $US17.4 million (R139.7 million), which includes the plant and all associated infra-structure. It will take one year to construct and the project will commence once fund-ing has been secured.
A new plant is also proposed for Niewejaar-skraal, intended to lift its monthly capacity from 40 000 to 340 000 m³. It will likely con-tribute to production from 2015.
Diamond demand for carats is forecast to grow at 6% per annum to 2020, outpacing annual supply growth of 2.8%
ABOVE Bivitec X-Ray machine, and below, preparation for the X-Ray machine prior
to installation MIDDLE AND RIGHT
Rockwell Diamonds commissioned at new plant at Tirisano
Yellow carats extracted from Saxendrift
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Ins ide Mining 05 /201218
A PIPE OF PROSPERITY
LACEd with potentialIt has been a long time coming, but JSE/AIM-listed junior diamond company
DiamondCorp recently emerged with its optimised development plan for its Free
State-based Lace kimberlite mine, aimed at advancing its status to ‘producer’ and
ultimately delivering 550 000 carats per annum, MD Paul Loudon tells Laura Cornish.
Lace – it will be a producing mine againIt has been fi ve years since DiamondCorp ac-quired its 74% stake in Lace and, ever since, the market has been waiting to see if life could be injected into a mine that last delivered pro-duction carats in 1931.
And while the company has endured more than its fair share of diffi culties, a global re-cession included, Loudon’s confi dence in the project has been unwavering. “Th ere is no doubt that this project has great potential and even off ers very rare intense lilac and
Precious stones – diamonds
The 1.2 Mtpa Lace processing plant BELOW An aerial view of Lace including the process plant and pit prior to dewatering
Precious stones – diamonds
19Ins ide Mining 05 /2012
pink stones. We will do our best to ensure Lace emerges as a successful producing mine, which will grow on the back of strengthening diamond prices.”
Th e company is presently retreating old tail-ings material at its 200 tph dense media sepa-ration plant and spent last year evaluating a large bulk sample from the main Lace pipe.
Having engaged SRK Consulting to com-plete an independent engineers report on its development plan for the 2.5 ha Lace pipe late last year, the report was released in March 2012 and concluded the project to be economically viable.
“Th e report outlines our plans for the mine, which supports a 1.2 Mtpa project with a pro-duction rate expected to ultimately exceed 550 000 carats a year,” says Loudon.
While the underground decline currently extends to about 250 m below surface (which DiamondCorp extended from 100 m between 2010 and May 2011), the strategy is to de-velop a low-cost continuous trough block cave ‘production’ level at a depth of 470 m (47 Level).
47 Level Block Cave
CapEx: R384 million ($US50 million)Revenue during development: R406 million ($US53 million)Max drawdown: R285 million ($US37 million)
Cash flow from kimberlite: 18 monthsFull production: 43 monthsCash flow positive: 25 monthsLife of mine: +25 yearsMining rate: 1.2 Mtpa (4 000 tpd by conveyor)Peak production: 550 000 carats per annumRevenues: up to $US80 million per annumOperating margin: >50%IRR: 64.7%
“Our development strategy requires a twin decline system, which means extending the cur-rent decline from 250 m and building a second decline to surface as well,” Loudon explains. Th is will take about 12 months to complete.
One of the declines will be used to convey material to surface.
Loudon explains that even though it will take 43 months to complete the entire de-velopment plan for the mine, the tunnelled material, a doming (second) level and the 600 000 t of ore removed to establish the trough (third level) will be processed for car-ats, which will inject cash into the project – this is expected after 25 months.
An initial anti-socket level will initially be developed fi rst, through kimberlite mate-rial to complete the footprint delineation of the kimberlite pipe at the 47 Level. Th is will allow the fi nal cave design to be com-pleted. Diamonds will be recovered from this development as well, but will not be sold initially as they will be used for stone evaluation purposes.
According to the SRK report: “Diamond-Corp expects total revenue of $US55 mil-lion (R433 million) from stones recovered during construction.”
“While the overall development plan re-quires R384 million, we only need to raise about R285 million thanks to the cash we will generate as the project progresses. We are hoping to secure the required fi nance by the end of June,” Loudon adds.
On surface, very little work is required ex-cept for the installation of an additional re-crushing circuit on the plant to handle the unusually hard rock material.
“What makes Lace so exciting is that is grade increases at depth. While our average
grade at 470 m below surface is 40 cpht, it will increase signifi cantly below this level, to between 50 and 60 cpht,” Loudon mentions.
Th rough its underground mining contrac-tor, Lesedi, the mine has been drilled to a depth of 855 m.
At full production, DiamondCorp will employ 219 people, who will be fully re-sponsible for all mining activity as well as plant operation.
Outside of LaceEven though DiamondCorp has relinquished its Botswana-based project (Jwaneng South), after it revealed disappointing results last year, the company remains active in seeking new projects.
“We are looking at other kimberlite projects in Southern Africa and have a preference for ad-vanced exploration projects,” Loudon explains.
“It is my intention that our development ac-tion at Lace will see our reputation emerge as the potential kimberlite developer of choice – with the ability to move and advance pro-jects quickly.”
TOP LEFT Diamonds from the 250 m level bulk test including a 1 carat lilac pink
LEFT Larger stones from the 250 m level bulk test
LEFT Decline developed undertaken by DiamondCorp's own underground
mining fl eetRIGHT Decline develpment waste is
trucked to surface
Ins ide Mining 05 /201220
Precious stones – diamonds
FROM RAGS TO RICHES
Capitalising on world-class kimberlitesThe saying, ‘one man’s rags are another man’s riches’ couldn’t be more true when
looking at the turnaround and growth pipeline of LSE-premium listed diamond miner
Petra Diamonds’ project portfolio. Not only has it brought its mines back to life, but it is
investing signifi cantly in growing its production volumes – a strategy perfectly aligned
with the world’s growing demand for carats, CEO Johan Dippenaar tells Laura Cornish.
P etra Diamonds (Petra) has in-terest in five operating ‘classic’ kimberlite pipe mines (Cullinan, Finsch, Williamson, Koffiefon-
tein and Kimberley Underground) as well as three carat-producing fissure mines (Helam, Sedibeng and Star).
“Our intention is to grow annual carat production from within our current port-folio from just over 2 million carats this year (expected) to above 5 million carats by 2019,” says Dippenaar.
Since acquiring its first major mine in 2007, Koffiefontein, Petra has reinjected life into its assets and revitalised and ex-tended its legacies to last well into the fu-ture. Such a substantial growth target is admirable considering its core assets (ac-quired from De Beers) were either recov-ered from care and maintenance or faced the possibility of closure.
“Our goals are more than reachable,” says Dippenaar. “The programme across all our mines is to deepen them and establish new block caves, thereby providing access to fresh, undiluted ore in higher grade areas. The result will be higher revenue per tonne and increased margins.”
Connected to this is the company’s focus on operational efficiencies and optimising plant processing, with a focus on ‘value’ and not ‘volume’ production.
Dippenaar explains that the company’s significant growth strategy is aligned with the “compelling fundamentals of the dia-mond market”, where demand is shifting from West to East.
While the United States currently con-sumes the majority of diamonds (about
LEFT Long hole drilling rig in action underground at Cullinan
21Ins ide Mining 05 /2012
Precious stones – diamonds
38%), the rise of the Chinese and Indian middle class is set to increase and shift the demand dynamics over the next 10 or 20 years.
“We classify ourselves as a luxury goods product, not a commodity. A single 500 carat stone for example is equivalent to hundreds of kilograms of gold. The same consumers who are spending more on items such as make-up, shoes and hand-bags are looking to diamonds as a sign of their growing wealth status.”
The organic growth and efficiency improvement programmesTh e C-Cut expansion programme at Cullinan includes the development of a new block cave on the western side of the ore body, which will increase production to 2 million carats per year by 2019, supplemented by an additional 0.4 million carats per year of tailings. Th is project sees the shaft bottom extending from 580 to 930 m, with a new production level between 810 and 850 m.
The grade is expected to increase substan-tially, from circa 35 cpht to circa 50 cpht once the new cave is established – a real-istic target based on resource estimates. There are also higher incidences of larger white and blue diamonds in the western ar-eas of the pipe, which bodes well for future recoveries of ‘large, high-value diamonds’.
Cullinan’s 16-year initial mine plan will only exploit 21% of the C-Cut resource to 1 073 m, leaving extensive resources for fu-ture development as the ore body remains open ended at depth.
Petra has also put in place a bright fu-ture for the Finsch mine, acquired from De Beers. The company is now working to complete the mining of Block 4 by 2014, while simultaneously opening up a new Block 5, which will maintain production
levels at approximately 3.2 Mtpa, ramp-ing up to around 3.5 Mtpa by FY 2018 once the Block 5 cave is fully operational. It will further extract about 3.5 Mtpa from the mine’s pre-1979 historic tailings dams until 2015. Thereafter tailings from later mining operations remain available for treatment until 2020.
New production levels are also being es-tablished at Koffiefontein, at the 680 m Level, together with a new sub-level cave
RIGHT Johan Dippenaar holding the 507 carat Cullinan Heritage diamond
RIGHT Koffi efontein kimberlites pipe and plant
BELOW Transportation of ore by locomotion at Kimberley Underground
BOTTOM Kimberley pipes
Precious stones – diamonds
that will be established between the 560 and 600 m levels, which will enable the mine to deliver over 100 000 carats every year by 2017.
Koffiefontein’s current mine plan is 14 years, although the ore body also remains open at depth.
Petra’s plan at Kimberley Underground is aimed at increasing production from 57 000 carats a year to 120 000 carats by 2013. The investigation of additional re-sources at depth is also under way, which could potentially extend the current mine plan of 11 years.
Production from the fissures will be ramped up from 87 000 carats per annum to 140 000 carats by 2015.
Williamson mine in Tanzania is Petra’s only opencast mine. The company has just finished a substantial rebuild of the exist-ing 3 Mtpa plant and was expected to be fully operational in Q4 of Petra’s current financial year.
The longer-term expansion plan for the mine is close to 600 000 carats a year, which requires the construction of a new plant. Timing on this is still to be confirmed, un-til the company receives confirmation of secure electricity supply.
LEFT Underground at Finsch – an employee observing a drawpoint in the
block cave on 630m level
An emerging market of new consumers
• Urbanisation trend: by 2025 there will be 221 Chinese cities with >1 million population (versus 107 cities in Europe, Japan and United State combined).
• The number of middle income consumers is expected to increase by >800 million by 2030 (half of these consumers will be in China and India).
• Diamond consumption per capita in emerging regions is currently far below mature markets.
Ins ide Mining 05 /201224
Precious stones – diamonds
Osborn product manager, Emile Oosthuyzen, explains that the screens will be employed at Pe-tra Diamonds’ Cullinan opera-
tion, where a new tailings reclamation plant is being set up. Th is order comprises six Osborn IFE Screens – two 12" x 24" double deck screens and four 12" x 24" single decks – as well as one 3" x 16" Osborn Obex single deck screen.
“Osborn netted this order based on its competitive pricing, as well as its long-es-tablished reputation as a supplier of robust, high-quality products,” Oosthuyzen says. He adds that Petra Diamonds currently has a wide range of Osborn machines in operation at Cullinan, including vibrating grizzly feed-ers, screens, scrubbers and crushers.
Outlining the benefi ts of Osborn’s IFE Screens, he notes that they are designed for heavy-duty to extra-heavy-duty screening, and feature a gearbox drive that is driven via a cardan shaft from an electric motor, to generate more G-force for the weight of the machine.
Over the years, these tough, hard-wearing screens have made their mark at operations like Kleinkopje Colliery, Iscor Sishen, Zim-babwe’s Wankie Colliery, Empresa Minera Copper Mine in Chile and Namakwa Sands,
CULLINAN’S NEW TAILINGS RECLAMATION PLANT
Screening for diamondsElandsfontein-based bulk materials handling and minerals processing specialist,
Osborn, has secured an order for seven screens from leading independent
diamond mining group, Petra Diamonds.
refl ecting the diverse applications of this range of screens in prod-ucts ranging from coal and copper to iron ore, heavy mineral sands and diamonds.
IFE Screens use fi nite element analysis to provide optimum per-formance and structural strength. Th e Exciter Driven Unit is designed to handle high amplitude vibra-tions without decreasing life ex-pectancy. Th e screen consists of a sturdy soundproof housing made of cast metal. Th is contains two shafts that are synchronised with gears and are mounted in heavy-duty roller bearings designed for use with vibrating equipment. Lubrication of the bearings and gears is eff ected by a combina-tion of oil bath and oil mist. Eccentric weights are attached to both ends of the shaft. While stationary, adding or removing steel or lead weights can change the unbalanced mass. Th is consequently alters the strength of the unbalanced exciter force and the oscillation amplitude of the vibratory equipment. Over-size bearings provide long life expectancy, low maintenance and low noise emission. Th e unit also off ers easy access to the drive unit, which can be removed by undoing just four bolts.
“IFE Exciter Driven Vibrating Screens are available in a range of sizes to meet custom-ers’ specifi c requirements.
Complementing the large, heavy-duty IFE Screens that will be employed at Cullinan as primary screens is an Osborn Obex Screen that will be utilised in the fi nal recovery stage. Oosthuyzen elaborates: “Driven by out of balance electric motors, the Obex screen is designed for medium- to heavy-duty applica-tions, and its size and design features make it an ideal fi nal recovery screen. It is much longer than it is wide, achieving maximum screening effi ciency when working with the lower tonnages in the fi nal recovery stage, when the raw ore has been processed down to concentrate.”
Osborn Obex Screens are locally designed and built to meet the demands of Southern African mining and quarrying operating con-ditions. Th e extensive range has been tested and proven in ongoing programmes of inten-sive fi eld research, through years of use in mines and industry throughout Southern Af-rica. Two vibrating motors rotate in opposite directions, synchronise and impart a vibrat-ing force in a longitudinal direction. Th is lifts the material and carries it forward on each rotation, providing a constant feed rate. Th e amplitude can be varied by adjusting the out-of-balance weights on the vibrating motors to the required stroke. The 165 Mt tailings deposit at Cullinan
ABOVE Screens for Petra Diamonds
Ins ide Mining 05 /201226
The result of De Beers Consolidated Mines’ (DBCM’s) strategy imple-mentation to only operate mines that meet its global criteria is a much
smaller company, but one that remains heavi-ly invested in its three mines – which still pro-duce almost 70% of South Africa’s diamonds. Taking this into account, the company has no intentions of exiting the country.
DE BEERS CONSOLIDATED MINES
Tidy house, neat businessThe South African arm of diamond major De Beers, De Beers Consolidated Mines,
is ‘getting its house in order’ as it focuses on strategies and initiatives to extend
the lifespan of its remaining local assets and grow its resource base further, CEO
Phillip Barton tells Laura Cornish.
Between 2007 and 2011, it sold its capital consuming late-life mines – Koffi efontein, Cullinan, Kimberley Underground and Finsch operations – to Petra Diamonds-led empow-erment consortia to release capital for more sustainable investment in other operations, says Barton. De Beers is also currently in the process of selling its Namaqualand Mines (with 10 million carats still in reserve) to
an empowered subsidiary of Trans Hex for R225 million.
Appointed as CEO of DBCM in Septem-ber 2010, Barton has brought the company through the tail-end of the economic recession and has devoted a considerable portion of his time to revising the company’s business mod-el. “I have introduced a strategy aimed at se-curing the future of DBCM in South Africa. I
Venetia Mine
Precious stones – diamondsPi
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27Ins ide Mining 05 /2012
Precious stones – diamonds
developed a concept symbolically represented by a ‘house’ to illustrate how we are going to build a robust business and thereby secure our future in the country. Th e strategy serves several purposes; it has reassured government of our intention to remain a major diamond miner in the country. It further promises to provide security to our employees and looks to ensure we mine in a safe and environmentally responsible manner. Naturally, the model also aims to optimise our assets and achieve overall resource growth,” Barton outlines. Th e strate-gy is also aligned with that of De Beers, as well as with the diamond business strategy of soon-to-be majority shareholder, Anglo American.
DBCM currently operates two mines – Vo-orspoed and Venetia – and is also reprocess-ing tailings from Kimberley Mines operations over the last century at its increasingly effi -cient Kimberley-based processing plant.
Th e ‘house’ strategy focuses on four key pil-lars which in combination will drive the busi-ness forward. Th ey are:• People – the implementation of retention
mechanisms to ensure DBCM retains its personnel and its skills.
• Continuous business improvement – achieving rapid results by making improve-ments daily in all aspects of the business.
• Disciplined execution – planning well to ex-ecute eff ectively.
• Asset optimisation – ensuring that all key equipment and plant on site is running op-timally to deliver required and targeted pro-duction rates.
Mine plans have been implemented with challenging targets on waste stripping so as to be prepared for the rise in diamond de-mand and to improve kimberlite extraction and operational performance over the life of the mines. Indications in early 2012 show that the corrective technical actions taken in mining and ore treatment bring the desired production results.
About 45 Mt of waste stripping has been targeted for 2012 between Voorspoed and Venetia, together with 6 Mtpa of Kimberley tailings material.
“By correcting our waste stripping ratios, we will successfully ramp up our carat out-put for this year, expected to be between 4 and 4.5 million carats, to between 6 and 6.5 million carats in 2013.”
Optimisation plans in motion
Venetia - LimpopoDBCM’s Venetia operation is the ‘star attrac-tion’ in its portfolio. Th e company completed a two year feasibility study in February 2012 to convert the open-pit operation to an un-derground mine. Th e feasibility study for
the proposed R18 billion investment to con-vert Venetia will be submitted to the DBCM Board for consideration in May and the De Beers Group Board towards the end of the year. Th e remaining opencast operations will run to 2021 and the conversion to under-ground mining, which will take about eight years, is expected to extend the life of mine by 21 years to 2042.
“We will likely deliver more than 100 million carats from the underground mine, which will equate to the number of carats it has pro-duced as an open-pit operation since 1992,” Barton reveals.
Even though the project will only be granted approval towards the end of the
Voorspoed
year, DBCM is prepared having already signed binding contracts with EPCM con-tractor, TWP Projects, and Murray & Rob-erts for the development of the shaft. Both companies were extensively involved during feasibility stages. Th e contracts are only non-binding should the project not be granted approval.
Precious stones – diamonds
Kimberley Tailings Operations: Combined treatment plant – inside the DMS
(Dense Media separation) plant at the CTP
Voorspoed – Free State provinceWhile the current mine plan – to Cut 3 – will carry Voorspoed until 2018 as an opencast operation, DBCM is evaluating the potential of Cut 4 or an economical, safe and effi cient method of mining underground.
“I believe we can add an another six to eight years onto the life of Voorspoed if we successfully fi nd the best method of taking a small portion of this mine underground,” Barton notes.
KimberleyDBCM is producing diamonds in Kimberley, and the carats it is extracting from its tailings
resource are a signifi cant contributor to its overall production volumes.
“While the lifespan of the resource only runs until 2018, we are looking at ways to extend the life of mine, and lowering our costs by fi nding less expensive transport methods of moving the tailings material to the processing plant. We are looking at the viability of adding another tailings re-source to the overall project, which will add another 12 years onto the current lifespan,” explains Barton.
ExplorationDBCM is investing on the back of a robust business in its people, time and money in ‘resource growth’ and Barton believes South Africa remains a prospective coun-try for new diamond projects. “We have stepped up our exploration programme in target areas where the turnaround time of our exploration colleagues is fast in evalu-ating and decision making. We need to move with the speed necessary to find the elusive next diamond mine for South Afri-ca. Until recently, we were only looking for diamonds in our exploration areas off the Atlantic coastline, but now we are in a joint venture with AngloGold Ashanti to search for gold, diamonds and other minerals,” Barton explains.
Barton adds that this new project is still at an exploration phase and may only be economical if gold and diamonds are ex-tracted and processed simultaneously.
“Our strategy leads to an efficient com-pany; a tidy house and a neat business we hope will last for a very long time.”
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Materials handling
29Ins ide Mining 05 /2012
D-dayThe Medupi coal supply and offtake agree-ment became unconditional and binding on Exxaro and Eskom in June 2010. In that agreement, Eskom’s mandate speci-fied that Exxaro be ready to supply the first coal this month.
Th e expansion of Grootegeluk – referred to as the Grootegeluk Medupi Expansion Pro-ject (GMEP) – will see it supply 14.6 Mtpa of coal (at nameplate capacity) to the new Medupi power station for 40 years.
“The R9.5 billion project entails mining considerably larger volumes of coal from the open pit, as well as the construction of
GROOTEGELUK MEDUPI EXPANSION PROJECT
Moving massive amounts of coal
South Africa’s largest coal operation, Grootegeluk, has undergone a massive
expansion that will enable it to supply coal to Eskom’s new Lephalale-based Medupi
power station. Despite the enormity of this project, it has taken owner Exxaro less
than two years to complete. The plant may supply the fi rst coal in May, though the
power station’s fi rst boiler is not ready to burn coal, writes Laura Cornish.
two new beneficiation plants whose pur-pose will be to treat coal exclusively for Medupi,” explains Ernst Venter, business growth executive GM.
The addition of two beneficiation plants (Grootegeluk 7 and 8 (GG7 and GG8)), including a complex screening facility, in-creases the number of plants on site to eight, effectively making it the larg-est beneficiation complex in the world, with a 14 000 tph capacity. Bearing this in mind, the entire complex will be au-tomated with one central control room, making it easy to operate and monitor.Despite the enormity of the project, Exxaro
was able to meet its deadline mandate, sup-plying coal to the stockyard where it will stand ready to be transferred to the boilers. Its ramp up to nameplate capacity will occur between 2013 and 2015 as all the Medupi boilers come online. Although the Medupi supply contract is substantial, it is by no means the mine’s only offtake contract. Grootegeluk already supplies 15 Mtpa of coal to Eskom’s nearby Matimba power sta-tion (since its start-up in the 1980s), and
ABOVE The expansion of Grootegeluk will make it one of the biggest collieries
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“We have 12 dif-ferent benches, of which only two are waste.”
Th e supply of 14.6 Mtpa to Medupi eff ectively increases Grootege-luk’s total coal out-put supply by 75%.
Th is equates to nearly 35 Mtpa of coal every year, which it is capable of doing well beyond the Medupi con-tract. “Th e mine has access to resources in excess of 100 years of supply,” Venter adds.
And while the power station is still not ready to receive coal, the new silo and con-veyor feeding coal from the mine to the silo went ‘live’ as scheduled.
Committed to the environmentEven more impressive than the sheer size and speed of the project is Exxaro’s com-mitment to ensuring that the GMEP’s car-bon footprint is as minimal as possible.
“The zero effluent beneficiation complex will not require a tailings dam facility, the result of using dry screens to screen out <4 mm material and using it directly in the product,” Venter points out.
The yield will be further optimised by beneficiating the larger fractions through larcodems (large coal dense media separa-tors) and large diameter cyclones, and by using press filters to dry ultra-fines com-ing from the beneficiation process.
The entire project will also be energy efficient, owing largely to the use of variable speed drive electric motors and conveyor drives.
Exxaro has also invested in the devel-opment of 950 new eco-friendly hous-ing units for its employees, all featuring solar-powered geysers, water-saving and recycling, gas stoves and evaporative air conditioning units.
The project was commended in Ned-bank’s Green Mining Awards last year.
Impressive innovationsOnce the larger Grootegeluk pit (about 4 x 5 km, and 130 m deep) is in full production,
The main contracts:
Process plants engineering: Aveng E+PCCivil/structural engineering: ArupMaterials handling and stockyard: LSL Tekpro Scheduling: AmrecPlanning and cost engineering: PaCEProject management skills: MAC Consulting and UMPQuantity surveying: PCCME&I: Wade Walker
millions of tonnes of various coal products to ArcelorMittal, Saldanha Steel, the local market and a considerable portion to the ex-port market as well – hence the necessity for many diff erent benefi ciation plants on site, each of which treat a specifi c size and qual-ity product for a specifi c client or market.
ave 12 dif-benches,ch only waste.”
supply 6 Mtpa to i eff ectively es Grootege-
otal coal out-ply by 75%.
equates to35 Mtpa of coal year, which it is
of doing well the Medupi con-
Th e mine has accessurces in excess of
“The mine has access to resources in excess of 100 years of supply.” Ernst Venter
its advancement rate will increase from about 120 m a year to about 210 m.
“Our rehabilitation procedure is to move and back-fill our mined-out areas from July 2013 as we progress,” Venter notes. “We will ensure our faster production rates are maintained through the use of two semi-mobile tips and crushers, which will follow the pit as it moves. They will be moved about once every three years. Un-til now, all the coal has been hauled out using trucks.
With the introduction of the conveyors and semi-mobile tips and crushers, the trucks will not leave the pit, but transport the ore to the tips where it will move to the plants by conveyors.”
In addition to the expanded pit and new GG7 and GG8 beneficiation plants (with an exceptionally compact footprint), the GMEP also entails the construction of run-of-mine (ROM) and discard bunkers, the 430 000 t capacity blending and load-out stockyard (refer to ThyssenKrupp Ma-terials Handling story on page 6) which will feed the coal to an Eskom silo that
will link directly to the Medupi boilers.Venter adds that the new plants will un-likely standby unused once complete, but could be used to alleviate pressure during maintenance procedures with the older plants, while the Eskom Medupi power sta-tion gets to full burn capacity.
ABOVE The GMEP will supply 14.6 Mtpa of coal to the new Medupi power station. The addition of two benefi ciation plants, GG7 and GG8, increases the number of
plants on site to eight, effectively making it the largest benefi ciation company in
the world
Materials handling
Materials handling specialist Taggart LSL Consulting, a company under the Taggart Global umbrella, has secured a substantial materials handling detail design contract for Exxaro’s Grootegeluk Medupi Expansion Project (GMEP) project, which started in April 2009. It is one of the compa-ny’s largest contracts to date and will show-case its skills and ability to the industry.
“Our contract includes all the detailed me-chanical, structural, civil and electrical, and control design work for numerous out-of-plant material handling aspects of the GMEP
LOADS OF CONVEYORS
project, which includes almost 28 separate conveyors,” says Jan Gerber, Taggart LSL Consulting project manager. More specifi cal-ly, the contract includes the design for the in-pit run-of-mine (ROM) conveyors to the new GG7 and GG8 plants (due to start shortly), the feed conveyors to the ROM bunkers (con-struction 90% complete), the ROM bunkers and the reclaim conveyors to the raw coal si-los (construction is more than halfway done).
“We are, in addition to this, providing de-tailed design for the blending beds in the stockyard, the overland export conveyors
to the Medupi power station silo, assizing plant and discard handling system including the discard bunker, bunker feed and reclaim conveyors,” says Gerber.
Over and above the out-plant materials handling designs, Taggart LSL also complet-ed 42 in-plant conveyor designs (mechanical and structural) as sub-consultants to the En-gineering and Projects Company.
Th e company will complete the entire de-sign portion of the project in May 2012, valued just below R200 million, and will fur-ther provide implementation support to the Exxaro construction management team in all disciplines until the end of the fi rst half of 2013.
Th e biggest challenge for Taggart LSL Engi-neering, was meeting all of Exxaro’s schedule deadlines, along with the design of the ROM and discard bunkers, (reputedly the largest of its type in the southern hemisphere), Ger-ber points out.
Taggart LSL is assisted in the designs by Arup (civil and infrastructure designs), En-gineering and Projects Company (electrical and control designs) and Professional Cost Consultants (quantity surveying).
GMEP DOCUMENT CONTROL – FOLLOWING THE PAPER TRAIL
Document control specialist Allscan Trading, originally contracted to evaluate Grootegeluk Medupi Expan-sion Project (GMEP) document processes and add value where required, contributed signifi cantly to the project.
Having established shortcomings in the process-to-control document, the company took the task upon itself to resolve the problem. “Because of our unique skills within Allscan, it was easy for us to see the shortcomings in the document con-trol processes that were followed, enabling us to identify future problems that may become issues down the line and address them properly,” explains Chris Botha, Allscan MD.
Allscan’s GMEP contract first started in April 2010, where its contract grew to include the control of all vendor, com-mercial and technical drawings to and from different vendors/contractors/design consultants.
The company currently has 15 full-time document control-lers on the project, with certain members located on site. Allscan also assisted with the implementation of an electron-ic document management system at a very late phase in the project, which Botha believes will be of great value for future Exxaro projects.
The movement of drawings between the design consultants and the contractor on site were very difficult at times Botha explains. “It is clear that embracing technology is still difficult in a mining environment, because of the lack of infrastructure support like Telkom lines and 3G access or stability.” Most of the drawings issued on the project were still done in hard copy, meaning that sometimes 100 000 pages per week were being printed. “Our turnaround times from receiving a drawing to having it on site in Lephalale was very tight – often within three working days – which was challenging, especially consid-ering that we still had to maintain the full audit trail for each drawing. Many extra hours were worked to ensure that draw-ings were ready for the contractor on site when he needed it.”
Allscan has subsequently been contracted to continue with Exxaro on one of its next mega projects: the Grootegeluk Dis-card In-pit Project. “We are honoured to be part of such an amazing team and project,” says Botha.
“Because of all the lessons learned on the GMEP project, which we will complete at the end of 2014, we are in the fortunate posi-tion to understand the processes that need to be followed to en-sure the unrivalled outcome that every mining company should aim for. Our focus area will always be document control. We have built sound relationships with many of the other consultants on the project, which I believe will stand us in good stead for fu-
ture business.”
Ins ide Mining 05 /201234
Materials handling
Conveyor equipment manufactur-er, Melco, a wholly-owned sub-sidiary of Italian bulk handling components company Rulmeca
since 2006, has grown its motorised pulley installation base in Southern Africa to 181 since it first introduced the product locally four years ago.
Last year alone it sold and installed 48, ranging from 3 kW to 250 kW. “Our cli-ent base includes some of the industry’s distinguished blue-chip customers such as BHP Billiton, Anglo American Thermal Coal, Anglo American Platinum, Samancor Chrome, Optimum Coal, Sasol, Harmony, Xstrata and Debswana,” says Melco MD, Gavin Hall.
In addition to these mining companies, Melco has close working relationships with all engineering and project houses operating in Southern Africa. “The inter-nally powered motorised pulley offers sub-stantial benefits to operators of conveyor
MOTORISED PULLEYS
Conveying an EFFICIENT solutionThe motorised pulley is internationally recognised as an effi cient belt
conveyor drive solution. The product’s installation base across Southern
Africa may be small, but it is steadily growing as local mining players gain
understanding and appreciation of the product’s immediate and long-term
benefi ts, writes Laura Cornish.
systems, both underground and on sur-face,” he notes.
According to Hall, in many applications, the motorised pulley can have a lower energy consumption when compared to conventional drive units, greater efficien-cies, reduced noise output, saves space, is lighter in weight, and is also al-most maintenance-free – all features contribute signifi-cantly to reducing opera-tion downtime, and operat-ing costs over the life of the motorised pulley.
As energy restraints escalate and new mining operations emerge in more remote locations across the con-tinent, the attraction of the motorised pul-ley becomes increasingly evident.
“Test results indicate that motorised pulleys may use less energy (unloaded and loaded) than a comparable geared motor drive. Motor-ised pulleys have fewer frictional losses and a
higher efficiency
than con-ventional drives,
which normally trans-fer approximately 75% of
their mechanical effi ciency to the belt, compared to the motorised
pulley that transfers substantially more than that.” Hall reveals.
“Th e advantage this product off ers is di-rectly a result of its design, which encloses the drive and gearbox inside the drive pul-ley. Enclosing all drive components within the pulley shell makes the unit compact,” Hall states.
Internal and external views of the motorised pulley
Materials handling
MC AMember
Rulmeca’s motorised pulley (RMP) was first developed shortly af-ter the first industrial version was designed in the early 1950s and has spread across the globe. The RMP specific design includes an IP67 sealing system, a Rulmeca hermetic seal and uses synthetic oil. It incorporates a range of powers and speeds, as well as option-al features such as variable frequency inverters and soft starters, built-in mechanical backstops, anti-condensation heaters (for use in cold climate conditions), labyrinth seals and electro-mechani-cal brakes.
Design advantages for an RMP
• Gears and bearings continuously and automatically splash lubricated, which lowers maintenance requirements.
• The circulating oil transfers heatfrom the motors through the pulley shell and into the conveyor belt.
• The RMP dissipates heat by utilising the conveyor belt as an infinite heat sink.
• Electromechanical components (motor, gearbox and bearings) are sealed to IP67 standard within the steel pulley shell, increasing reliability, minimising drive size, improving personnel safety, reducing personnel guarding requirements, providing even drive weight distribution to the conveyor structure and decreasing noise.
• Redundant enclosures, such as cast iron motor frames and steel coupling guards are eliminated, decreasing drive weight.
• Only the shell of the RMP moves when installed, which makes it an extremely safe design.
• Because of its compact design, the RMP is often less expensive than conventional drives, and is much quicker and easier to install.
• RMPs require no routine maintenance other than the recommended oil change every 20 000 hours and an oil seal change every 30 000 hours. If synthetic oil is used, oil changes can be extended to every 50 000 hours.
• RMP’s are more efficient than conventional drive systems, the more important reasons for this being:
– no elastic or hydraulic coupling present (every clutch lowers the efficiency factor)
– all bearings and gear wheels run in oil and parts of the electric motors as well
– all axles of the power train are parallel; no 90 degrees change of direction as is with most conventional gear motor drives.
BELOW The company boasts a state-of-the art manufacturing facility and a work force of more than 400 employees
sarens
Sarens South Africa(Pty) Ltd
GLOBAL HEAVY LIFTING SOLUTION GROUPPROJECTS & MOBILE CRANE HIRE
A lthough the product is already popular in the mining sector, ad-ditional applications have been included to further enhance its
core product performance.
Sage ERP X3 – such a successAlthough two of Sage MMD Africa’s core software products, Sage Accpac and Sage ERP X3, are popular software solution packages for the mining industry, they were not originally designed for one spe-cific sector.
“Despite this, the products have celebrat-ed major successes across the mining in-dustry, with hundreds of installed systems in place,” Fenner begins.
While the Sage ERP Accpac modular soft-ware targets the lower-to-mid market com-panies, it is the company’s full-blown Sage ERP X3 system that continues to gain mo-mentum in the industry.
“Sage ERP X3 is aimed at the mid-to-upper-end mining company, and it is
Sage ERP X3 now exclusively for mining
SOFTLINE ACCPAC
Software solutions company, Softline Accpac, part of the Sage Group, will soon
launch a mining-specific version of its global industry enterprise resource
and Sage MMD Africa sales vice-president, tells Laura Cornish.
designed to streamline all operating and processing aspects of single or multiple mining operations,” Fenner describes.
In essence, the product is a complete web-based integrated management suite, covering all operational needs in terms of production management, distribution, logistics, asset maintenance, finance and human resources.
It is a multi-legislation, multi-lingual and multi-currency solution, and can be adapted to suit the specific elements and legal requirements of each country. It also guarantees optimum management of mid-size and large companies, on both national and international scales.
The product has shown such promise in fact, that Deloitte Consulting division, De-loitte Mining Shared Services (DMSS), has chosen to partner with Sage and Softline Accpac to distribute the X3 system across Africa. The DMSS platform provides cost-effective back office process support to mining companies allowing more focus on
core business operations and creating a low, fixed-cost overhead structure.
This service delivery model allows min-ing companies to co-source and/or out-source transactional and knowledge pro-cesses and take advantage of the cost ben-efits offered by consolidating and stream-lining back office processes. ERP business systems are an important component of this service.
“Sage ERP X3 serves as a very cost-ef-fective enabler for Deloitte to deliver our Mining Shared Services Division’s cost-saving efficiency model to our clients,” says Johan Botes, CEO of DMSS.
“The product is ideally suited to the mid-to-upper mining sector, for mining com-panies looking for a capable ERP solution that is not too big and too complex. It fits
Panel discussion: ICT
BELOW The new Sage ERP X3 mining edition can handle all the various mining
processes in mid-to-upper tier operations
perfectly in between the Accpac (modu-lar) solution and Tier 1 ERP systems,” Botes continues.
Botes adds that the system has all the necessary functionality requirements of an ERP solution, and is ‘cost effective’ in terms of implementation and main-tenance. “It is also very easy to use,” he mentions.
Since announcing the partnership be-tween the two companies in September 2011, DMSS has already installed one full system, will go live with another in the next two months and is under way with nu-merous due diligence projects.
The next step for ERP X3Sage MMD Africa, with the assistance of DMSS, will soon launch a vertical ‘Indus-try Solution for Mining’ version of its Sage ERP X3 software.
“We have added mining-focused features and configuration to the core product which will enhance the performance of the software when used in mining-specific ap-plications,” Fenner explains.
“Once this system is fully positioned and ready for the mining market specifically, we expect it to take off even more dramatically in the industry. It is already viewed by in-dustry analysts as the third most effective
“The products have celebrated major successes across the mining industry, with hundreds of installed systems in place.” Keith Fenner
ERP solution,” Botes points out.
He mentions four specific areas that have been supplemented:• Enterprise asset management – this
tool provides an equipment master file enabling all capital equipment items to be monitored in real time. “It offers enough functionality to enable proper equipment asset monitoring and maintenance.”
• Internal requisition – enabling the requisition of stock to certain areas or certain functions at certain times. This ensures that associated costs can be monitored properly, at the relevant time. This removes the possibility of having to source unaccounted for costs.
• Purchasing – incorporated functionality enabling multiple requests for quotations simultaneously and efficiently, this is an-other tool which will benefit cost control and monitoring.
• Operational Budgets – the ability to manage and view fi nancial and operational budgets in a single real-time view ensuring a single version of the truth and instant pinpointing of off -plan activities.
thatmore thanscratch the
surface
Specialisedmining
solutions
BELOW Monitoring equipment performance in real time is an addition benefi t of the
new Sage ERP X3 mining edition
Ins ide Mining 05 /201240
GEMECS
Helping juniors climb the ladderA geological consulting business, Gemecs new mining service is aimed at fi lling
a gap in the early-stage development cycle of junior exploration/BEE company
prospects. While contributing to the longer-term future of this industry, the new
service is also expected to deliver strong growth for the company, administration
and fi nance MD Coenie van Niekerk tells Laura Cornish.
V an Niekerk attributes Gemecs’ ongoing success since its es-tablishment 21 years ago to its ‘different mindset’ approach
to business.“While we have a small component of
permanent staff, the industry recognises us largely for the number of independent geologist associates with decades of expe-rience in the mining industry who work and operate under the Gemecs umbrella,” he explains.
Gemecs employees also work remotely and are spread across the country, mostly positioned close to active mining areas. Gemecs has a Johannesburg-based head
Panel discussion: ICT
41Ins ide Mining 05 /2012
office, which is seldom frequented, while the Middelburg site office is growing rap-idly to accommodate new coal clients.
Gemecs’ business model allows the com-pany to keep its overhead costs low while offering its existing and growing client
base a vast pool of skills and knowledge on tap.
It is this alternative business thought process that enabled Gemecs to identify a growing gap in the market which it will play a direct role in fulfilling.
“Start-up and developing junior/BEE mining companies rarely have enough cash to employ full-time geologists and pur-chase the necessary software to plan and develop a resource model, and the cost of employing a large consulting practise to do this is financially impossible. We are offering ourselves to the market as an af-fordable geological consultancy firm, with the necessary software tools to develop a resource model for the client, including exploration management, the update and maintenance of the borehole database and take it further to mine design and reserve modelling. This service is providing juniors
with economically viable options to ad-vance their projects to concept study and beyond,” Van Niekerk outlines.
In line with this objective, Gemecs, and HF Projects, which specialised in mine design and scheduling, “joined hands” to-
wards the end of 2009 to improve its ser-vice offering in line with its new strategic objective. The two companies merged in March 2012 and now provide these addi-tional services to clients.
Gemecs’ preferred modelling software that is used for consulting is Gemcem MinexTM – geology and mine planning for coal/stratified deposits – which is market-ed and sold by international mining soft-ware company, Gemcom.
“We have an exclusive agreement with Gemcom to train mining clients on how to use the Minex software and also pro-vide all technical product support,” says Van Niekerk. Naturally, all of Gemecs’s geological modelling is executed using the Minex software.
Gemcom recently upgraded the Minex mine design and scheduling software mod-ules for both underground and opencast
The full service offering
Gemecs has vastly extended its geological service offering over the years, from the initial basic geological modelling and resource estimation to the full complement of services today, including target generation, prospecting permit applications, exploration management, drilling core description, core sampling, underground and surface mapping, geological databases, geological resource estimations and orebody modelling mine design and scheduling.
“Although our core focus ends prior to the start of concept and feasibility studies and so on, we often remain on the project management team as advisors,” Van Niekerk notes.
In addition to Gemcom’s Minex software, Gemecs’ additional software tools include:• SABLE Data Works – geological database services for gold, PGMs, chrome and coal• Micromine Geobank (previously GBIS) – geological borehole service (coal and other commodities)
• XPAC from Runge – mine planning• Planet GIS – geographical system used for various plans and target generation.
mines, which will further facilitate Gemecs’ extensive service roll-out to the junior in-dustry. Its working relationship with blue-chip, major mining houses is, however, also extensive and includes Exxaro, BHP Billi-ton Coal South Africa, Xstrata Coal South Africa, Xstrata Alloys, Glencore, Optimum Coal and Eskom.
And while the company is targeting the junior industry, it is already working exten-sively with numerous juniors in the coun-try, including Kuyasa Investments (Delmas Colliery), Universal Coal plc, Continental Coal, Umcebo Mining (now part of Shandu-ka Coal), Forbes Coal, Zululand Anthracite Colliery, Xceed Resources, African Energy Resources, Global Coal Management, War-rior Coal, Shanduka Coal, Boynton Plati-num and Hodges Resources.
“Our next step is to grow beyond South African borders, rolling out our services together with the Minex software to South-ern African countries. Our footprint in Africa already includes Tanzania, Malawi, Mozambique and Botswana, where we are working on numerous projects.”
Start-up and developing junior/BEE mining companies rarely have enough cash to employ full-time geologists and purchase the necessary software to plan and develop a resource model
Panel discussion: ICT
Ins ide Mining 05 /201242
Profile: ICT
Working with massive, diverse datasets is never easy. Anton van der Walt,
technology business manager at MineRP, an international mining technology and
consulting firm, explains.
Working with mining data
M ining managers are often re-quired to query and combine diverse datasets and extract relevant information accu-
rately and swiftly for analysis and report-ing. While this may sound simple enough to the uninitiated, major stumbling blocks exist. These include:• Data availability: On a typical mine the
data you may be looking for is rarely eas-ily accessible and available, either from a physical location or format point of view.
• Data meaning: When data is combined in central databases, the specific mining-related data types used by source systems are often not supported, which results in a loss of critical business meaning.
• Data context: Mining takes place in a real three-dimensional (3D) world, not on a projected two-dimensional
platform. Solutions that do not cater for 3D visualisation of infor-
mation cause further loss of business context.• Data migration: Migrating
data into spatially enabled 3D databases from many propri-
etary formats easily turns into a nightmare.
Sharing dataTo satisfy the demand for real-time, inter-operable solu-tions for data
sharing, vendors of expert software (such as
geological data management systems, mine planning and scheduling tools, and survey applications) typically only provide simple data import/
export mechanisms.
The problem with these import/export mechanisms is that data remains unavail-able to the larger enterprise and is focused on unique functions and disciplines (expert use only), resulting in mere duplication and further removal from the actual platform where the data was created.
In a recent case study done by MineRP during a spatial implementation, it was found that the same datasets existed more than a thousand times in various formats and versions, introducing obvious risks of confusion, concurrency, security, etc. In many cases, simply reformatting the data from one propriety format to another re-sults in so much loss of actual business meaning that the final dataset has little use beyond mere visualisation.
Centrally storing is not sharing!The concept of enterprise data sharing is often confused with centralised storage and document management. In reality, a document management system (DMS) and
MineRP
43Ins ide Mining 05 /2012
Profile: ICT
an enterprise mining database could not be further apart. With a DMS, the content of the files collected and stored centrally remains in its propriety format, leaving it unavailable to external systems, whereas true enterprise data stores provide a stand-ard for information storage, management and reporting that is open and available to all potential users thereof.
A central, spatially enabled database is needed to effectively share mining data – a concept requiring intimate understanding of mining as a business, as well as best prac-tice in spatial information management.
Moving datasets into a 3D spatially enabled enterprise worldIndustry evidence points to poor track re-cords for most data migration projects. 67% of data migrations projects are not delivered on time, with 40% of the projects experienc-ing budget overrun. (Source: Bloor Research, Sep 2007, Data Migration in Global 2000)
The high failure rate in data migration is primarily due to a lack of attention on
data definition, poor consistency and low quality of existing data. For data migra-tions to be successful, there must be an understanding of the underlying business processes, the actual format and content of the proprietary datasets, as well as the required result to be obtained.
The MineRP DifferenceMineRP has a dual strategy of remaining at the forefront of creating expert min-ing tools for the domain-specific require-ments of mining professionals such as ge-ologists, mining engineers and surveyors, as well as leading the world in the field of enterprise solutions for mining technical information integration. This means that the company actively partners with clients and traditional competitors alike to de-liver on the promise of integrating mining technical solutions.
Over the past five years, MineRP has in-vested more than any other mining techni-cal solutions developer in the development of standardised processes, methodologies
and conventions for mining, and has cap-tured these in a truly groundbreaking piece of technology called SpatialDBTM. When combined with MineRP’s SpatialDashTM and SpatialAnalyzerTM, the web-based solutions used to analyse and visualise centralised mining data, mining companies now have the freedom to choose the expert mining tools of their choice, while leaving the task of data integration and sharing to the real experts – MineRP.
With partnerships with the majority of global mining technical solutions suppliers either formally in place or being established, the company is poised to revolutionise the way that mines think about their data.
For more information about SpatialDB and our partnership programmes, please contact Empie Strydom, VP of marketing, or visit www.minerpsolutions.com.
BELOW Moving data from expert systems to enterprise datasets such as
MineRP's SpatialDB
Panel discussion: ICT
Ins ide Mining 05 /201244
Revenue increase = big expansion
MICROMINE Mining and exploration
software provider
Micromine could be set
to increase international
market share after it
revealed a 64% increase
in revenue in 2011.
M icromine COO, Kevin Fitzpatrick, believes this success can be largely attrib-uted to the rising demand
for the company’s flagship software pack-age, Micromine – a toolbox of solutions that enables the user to capture, manage and interpret critical mining and explora-tion data.
Micromine made a concerted effort during 2011 to promote the new-and-improved Micromine 2012 software pack-age, with enhanced 3D capabilities, GIS, GPS and grid data compatibility, up-graded binary fields and a new Scheduler module, which is a user-friendly alterna-tive to generic spreadsheet and project management applications.
“Emerging markets such as China and Mongolia have proven to be the top-per-forming divisions in terms of worldwide sales and revenues, followed closely by Af-rica, Russia and Kazakhstan. Due to this unprecedented success, we have set some aggressive budgets for 2012 and, to date, are tracking about 52% up on last year,” he adds.
Newly appointed regional manager, Marc Ramsay, notes that investment into African mining continues to increase at a consistent rate and believes that there is enormous growth potential for Micromine within the region. “Mining in Africa is in a healthy state at the moment, and more companies are undertaking exploration projects, which has ultimately resulted in a spike in our Micromine product range in particular.”
As this demand continues to rise, Mi-cromine Africa will focus on increasing its customer support capabilities through an extended network across Africa. “We want to make our support network a priority. During the past few years, the Micromine
Panel discussion: ICT
Africa support and consulting team has doubled, and I am confident that this number will be doubled again within the next four years.
“Our Geobank data management soft-ware solution has also been gaining popu-larity on an international level, following a major upgrade in 2011. The final prod-uct is expected to be fully-completed in October 2012,” Fitzpatrick continues.
Micromine is furthermore excited about its mine production and maintenance so-lution, Pitram, which records, manages and processes mine site data in real-time,
and provides the tools needed to increase production and efficiencies, reduce costs, and improve safety and business intelli-gence capabilities.
Looking to the future, Fitzpatrick notes that Micromine main focus will be growth. “Micromine will aim to grow its service of-ferings to provide a comprehensive and holistic solution across the entire mining spectrum. Th is strategy has proven to be highly-successful over the past 12 months, with new offi ces being opened in Denver, USA; Santiago, Chile; and Belo Horizonte in Brazil. With an anticipated boom across
“Mining in Africa is in a healthy state at the moment, and more companies are undertaking exploration projects, which has ultimately resulted in a spike in our Micromine product range in particular.” Mark Ramsey
emerging economies in Africa and Asia in particular, I expect this growth trend to con-tinue well into 2012 and beyond,” Fitzpat-rick concludes.
Ins ide Mining 05 /201246
Electrical, instrumentation and control
Electrical, instrumentation and con-trol company Wade Walker is now an integral component of the En-gineering Africa Platform, and the
benefi ts are re-energising.
The platformAs a cohesive group entity, the Engineer-ing Africa Platform comprises EPC projects implementer, Murray & Roberts Projects; structural steel fabrication and machining company, Genrec; and integrated structural, mechanical, platework and piping contractor, Concor Engineering.
Although a predominant focus is for the Platform to off er value to the industry as a single, unifi ed force, showcasing the numer-ous benefi ts it can off er its clients, Wake-fi eld adds that each company will retain its individuality, and continue working exclu-sively in its electrical and instrumentation discipline as before if mutually benefi cial to the client. “We will always retain our core
The last six months have seen Murray & Roberts Group undergo a significant
transition. The group moved from the concept of ‘business clusters’ to focused
operating platforms with similar types of work and core competencies, capable
of enhancing project delivery by maximising on synergies between their various
fields, MD Tim Wakefield, tells Laura Cornish.
AN ELECTRIC NEW STRATEGY
Establishing platforms
identity and continue building relationships with both large and smaller clients.
“Th e Platform provides the opportunity for a wider range of off erings in project work, and the opportunity to take on larger con-tracts as well,” Wakefi eld explains.
“More clients are showing interest in award-ing civil, mechanical, electrical and instrumen-tation contracts as part of a larger package.”
Because all the companies have worked together in the past, the knowledge trans-fer between the leadership teams is going smoothly. Wade Walker is, in fact, under way with the boiler instrumentation contract in an arrangement with Actom for the Medupi power station, and can draw on experience and assistance from its sister platform com-pany Murray & Roberts Projects, as well as
Genrec, which is also active on site. “We will maximise on synergistic opportunities wher-ever possible. Career progression between the companies, and training and skills devel-opment are such area.”
Th e benefi t of integrating company ser-vice off erings into a single, larger solution
The platforms
The Engineering Africa Platform is one of five within the Murray & Roberts Group, the others include:
Construction Africa and Middle East• Murray & Roberts Construction• Murray & Roberts Marine• Murray & Roberts Middle East• Murray & Roberts Concessions• Tolcon
Construction Global Underground Mining• Murray & Roberts Cementation• Cementation Canada• RUC Cementation• Cementation Sudamerica
Construction Australasia Oil & Gas and Minerals• Clough• Forge
Construction Products Africa• Hall Longmore• Murray & Roberts• Building Products• Much Asphalt• Rocla• UCW
ABOVE Instrumentation installation and hook-ups in progress at the South Deep
Backfi ll ProjectRIGHT Skills development and training ensures employees progress upwards.
off ering can be signifi cant – we can now present a single interface for multiple construction disciplines, delivering larger project pack-ages to the client. Th is alleviates project management skills shortage pressures, provides improved continuity between the various project aspects, allows for more effi cient upfront planning and reduces the overall risk to the client and its project,” Wakefi eld outlines.
Th e platform has already commenced with project tenders on this basis and anticipates the award of new projects, and the chance to prove its value as a new cohesive entity.
Enhancing its services and local presence abroadWade Walker’s footprint has always been extensive across Africa, and while the company’s present short-term workload is substantial, the volume of new tenders and contracts coming through is small.
“Although the medium-term pipeline for new work is positive, short-term work is scarce and we are looking at alternative value adding methods of attaining new and additional business. More specifi cally, we are looking at value-add services through strategic associations with specialist subcontractors,” Wakefi eld continues.
Th e company is also altering its employment model to include more permanent employees, especially in African countries where local employment promotes sustainability, for the company and the country.
“Employing local skills shows long-term commitment to the coun-tries in which we work, where clients are also showing greater prefer-ences for working with locally sustainable businesses.”
“More clients are showing interest in awarding civil, mechanical, electrical and instrumentation contracts as part of a larger package.” Tim Wakefi eld
BELOW A 30 tier top entry Motor Control Centre complete with BUS trunking
Ins ide Mining 05 /201248
Electrical, instrumentation and control
Both Naudé and Drake acknowl-edge that while most of the com-pany’s potential growth opportu-nities lie beyond South African
borders, the company will continue to lev-erage its reputation in South Africa. “Our
intention is to capture a bigger piece of the electrical and instrumentation pie – esti-mated to be worth in excess of R2 billion annually,” says Naudé.
The company’s African strategy is per-fectly aligned with Brazilian motor manu-facturer WEG, whose purpose in acquiring Zest was to gain significant footholds in
An electrifying strategy
INCREASING MARKET SHARE
Electrical and instrumentation specialist and Zest WEG Group subsidiary
EnI Electrical is aiming to grow its market share by targeting larger project
opportunities in Africa, including in South Africa, sales and marketing manager,
Trevor Naudé and engineering manager, Russell Drake, tell Laura Cornish.
countries across the African continent. Considering that the company is work-ing towards the completion of one of its largest and most important contracts to date – the entire electrical and instru-mentation contract for Zambia’s Konkola
North copper project, in Zambia – the mo-mentum for its growth strategy is already under way.
The project is located in the Chili-labombwe District in the Copperbelt Prov-ince. Copper extraction is expected in 2012, and full production in 2013. EnI Electrical accessed the site in August 2011 and is due
to complete its contract for the Konkola project between the third and fourth quar-ter of 2012. The scope includes all electri-cal infrastructure, including the substa-tion (utility), through to all instrumenta-tion and control, with an 11 kV overhead line linking all project components.
“A project of this size has given us the credi-bility to take on larger projects worth millions of dollars with greater frequency, together with large international mining houses, into countries across Africa,” Naudé reveals.
Because a large portion of ENI’s work is generated through its local branch subsidi-aries, including Zambia, it will look to open new branches as opportunities arise.
ZambiaIn addition to the Konkola project, ENI Electrical recently completed the electri-cal and instrumentation work for a smelter upgrade project and has just commenced with another.
“These projects are indication that we are already growing our market share, and we are hoping to secure further copper benefi-ciation and smelter projects in the coun-try,” Drake explains.
ENI Electrical’s Zambian branch is its largest to date and has been in operation for six years.
Mozambique“Thanks to the coal and infrastructure de-velopment boom in the country, we have been intimately involved with port and coal handling projects over the last two years, placing the company as one of the preferred electrical, instrumentation and
LEFT Experienced technical teams ensure quality workmanship across the borderRIGHT Lights being fi tted on a plant by
EnI Electrical
“Our intention is to capture a bigger piece of the electrical and instrumentation pie – estimated to be worth in excess of R2 billion annually.” Trevor Naudé
49Ins ide Mining 05 /2012
Electrical, instrumentation and control
construction companies in the country,” Naudé enthuses. The company estab-lished a local presence in Mozambique five years ago.
Ghana“Our foray into Ghana started many years ago with the Gold Fields’ Tarkwa project, which since its inception has undergone a number of brownfield expansions. We have been involved in every single expansion,” Drake notes.
Having established a local presence eight years ago, the company is using its Ghana-ian base as a springboard into the entire West African region, including Burkina Faso, Nigeria, Mali, Senegal, the Ivory Coast and Togo.
“Together with our parent company, Zest WEG, we recently embarked on a roadshow across Ghana to increase the local min-ing industry’s awareness of our product
services, capabilities and expertise across the group of companies, individually and collectively,” Naudé outlines.
Looking forward, Drake adds that the company is continually investigating op-portunities in gold, as well as oil projects.
TanzaniaENI Electrical has its sights set on estab-lishing a branch in Tanzania next. “Our
objective is to support the construction sites of four different major gold projects being developed in the country, through a local subsidiary,” Naudé explains. “The gold opportunities alone in this country are ample.”
The company has already had its employ-ees permanently stationed in Tanzania for the past 18 months, undertaking a variety of projects.
EnI Electrical is set on establishing a branch in Tanzania to support the construction on four major gold projects
LEFT An EnI Electrical team pulling cable on site in Mozambique
RIGHT Cable racking being installed by EnI Electrical
Ins ide Mining 05 /201250
Pyrometallurgy
E stablished almost 130 years ago, the company has grown to be-come one of the largest leading manufacturers of refractories and
providers of solutions to the pyrometallur-gical, chemical and manufacturing indus-tries in Africa, with a robust technical de-velopment programme ensuring it remains at the forefront of customer requirements.
Verref produces a large and diverse range of refractories, which includes ba-sic and aluminosilicates, both in shaped and unshaped formats, from three plants in Vereeniging and two in Springs, ena-bling the company to provide the solu-tions that are required by today’s industry players. The company also manages min-ing operations in Zeerust, Hammanskraal and Rietfontein.
Verref obtains its raw materials locally and sources its minerals locally, but im-ports when necessary. The ownership and use of local materials gives Verref a unique advantage in developing South African so-lutions for South African challenges.
“Our team of experienced refractory engineers, metallurgists and technicians can assist with problem identification, areas for improvement and training. We are focused on building long-term part-nerships, adding value to our partner’s businesses from product specification to product disposal.”
The local commodity industries served include, among others, platinum, copper, nickel, steel, ferro-alloy and foundries both locally and in the neighbouring SADC countries. Most of these industries ex-ploiting the mineral richness of Southern Africa, have had, or still have a direct rela-tionship with Verref in one way or another.
Because these industries are continually evolving, new technologies are constant-ly utilised, and to cater for this, Verref
RICH IN REFRACTORIES
Can you stand the heat?Vereeniging Refractories, known in the industry as Verref, has a rich and diverse
history in the South African pyrometallurgical industries sector. As the local
industry has developed, so too has Verref.
BY GRAHAM HOLLOWAY*
maintains a technical centre on site at the Vereeniging plant.
Comprehensively equipped and staffed, this facility operates independently and provides research and development for Verref and also an outsourcing option
for customers requiring test-work or re-search. Verref maintains a close relation-ship with the leading furnace designers and furnace suppliers worldwide, with the view to offering the latest lining technologies. Exports play an increasing
51Ins ide Mining 05 /2012
Pyrometallurgy
REFERENCE LIST OF PROJECTS AWARDED IN THE BASE METALS INDUSTRY, IRON AND STEEL AND POWER GENERATION(Projects marked * were full re-lines or new furnaces)
NICKEL, COPPER, COBALT AND PLATINUM INDUSTRIESMaterials: magnesia, magchrome, chromag, chrome alumina and alumina-silicate brick and monolithics.
DATE PLANT FURNACE COMMENT 2003 KCM Smelterco No. 4 Reverb Repair2004 Amplats Union Section Six in Line Side and end walls2005 * Amplats Waterval Section No. 2 Six in Line Complete rebuild2006 Amplats Union Section Six in Line End walls2007 * BCL Botswana Electric Slag Cleaner #2 Complete rebuild2010 * Rand Refinery Electric Furnace Spare lining
FERROALLOYS INDUSTRYMaterials: aluminosilicate, magnesia and chromag brick and aluminosilicate monolithics.
DATE PLANT FURNACE COMMENT 2002 * Zimbabwe Alloys A3 Furnace Complete rebuild2002 Assmang Chrome Cato Ridge Wall repair2004 * Xstrata Lydenburg A Furnace Complete rebuild2005 * Rand Carbide D Furnace Complete rebuild2006 * Assmang Chrome Machadodorp No. 3 Full reline2007 Xstrata Rustenburg No. 1 Furnace Hearth2009 Assmang Chrome Machadodorp No. 2 Partial IRON AND STEEL(Highveld steel and vanadium only)Materials: magchrome, chrome alumina and aluminosilicate brick and aluminosilicate monolithics.
DATE PLANT FURNACE COMMENT 1993 * HSVC No. 4 Sub Arc, Elkem All but Sub Hearth1996 * HSVC No. 3 Sub Arc, Elkem All but Sub Hearth1999 * HSVC No. 7 Sub Arc, Demag All but Sub Hearth2002 * HSVC No. 2 Sub Arc, Elkem All but Sub Hearth2005 * HSVC No. 5 Open Arc, Elkem All but Sub Hearth – conversion2006 * HSVC No. 6 Open Arc, Elkem All but Sub Hearth – conversion2007 * HSVC No. 1 Open Arc, Elkem All but Sub Hearth – conversion2008 * HSVC Ajax Induction Mixer New Induction Super Heater
POWER GENERATION AND CHEMICALAcid-resistant bricks were supplied for the ESKOM power station stacks which are approximately 285 m high. The concrete windshields contain 3 x 7 m diameter flues constructed of approximately 3 000 t of Verref Stackline Fawn acid resistant brick.
STATION / PLANT• Matla • Duvha • Van Eck • Lethabo No. 1 and No. 2 • Matimba • Kendal No. 2 • Majuba No. 1 & No. 2 • Sasol 2 • Sasol 3 • Hong Kong – 2 Stacks • Ergo • Camden repair • Majuba No. 2 repair
Acid-resistant bricks are also supplied for sulphuric acid plants towers and flooring and bund walls in chemical plants.
role in the ongoing development of the Verref brand. Major furnace contracts have been successfully concluded, which has given the company highly valuable ex-perience in this most demanding of time-critical and deadline-run businesses.
Verref is a fully owned South African company and provides local employment to over 600 people in the various refrac-tory and mining divisions.
* Graham Holloway is sales manager at Verref
Established almost 130 years ago, Verref has grown to become one of the largest leading manufacturers of refractories
The Pyro Metallurgy Industries in South Africa has seen rapid growth over the last few decades.
Verref has been a major partner in this growth and development providing solutions and products.
We are proud to have been a part of this expansion; indeed we have expanded ourselves over the
last 130 years, so that now we are the largest South African owned manufacturer on the continent.
Vereeniging Refractories
Contact us … You’ll see… we’ll listen.
Web: www.verref.co.zaTel: +27 (0)16 450 6111
A South African Manufacturing Company
53Ins ide Mining 05 /2012
Pyrometallurgy
Evaluating ore types a necessity“The basic pyrometallurgy process princi-pals have been embedded in the industry for decades, but because it is so energy intensive, it is essential to adapt the tech-nology to make it as energy efficient as possible. And there are definite options and solutions worth considering that will tweak the process,” explains Johannes Nell, Hatch pyrometallurgy practice lead.
The root source enabling this to hap-pen is first to evaluate and properly un-derstand the characteristics of the ore and then identify alternative process-ing routes. “No two ore types are exactly
AN ENERGY-EFFICIENT PYROMETALLURGICAL PROCESS
It’s all in the ‘tweak’
the same, and each will respond differently to processing mechanisms.”
Nell’s case in point is illustrated in a project Hatch is currently working on. “We are devel-oping a concept study for a prospective man-ganese project in Indonesia, looking at the best form of pyrometallurgical treatment.”
“Using a South African ferromanganese slag composition would be an obvious
benchmark in developing a process for smelt-ing the Indonesian ore, but we determined that by smelting the ore without adding a modifi er, we can achieve the same result us-ing about 30% less energy,” Nell reveals.
In some instances it is possible to modify the furnace operation for greater overall process efficiency. In the ferroalloy indus-try, furnaces have traditionally operated
Pyrometallurgical process
technology may be one of the
oldest and most developed
in the industry, yet it
remains one of the most
highly intensive energy
consuming processes
as well. The need to adapt
and streamline the process is
high as energy resources grow
increasingly scarce and
more expensive,
writes Laura Cornish.
No two ore types are exactly the same, and each will respond differently to processing mechanisms
Pyrometallurgy
Ins ide Mining 05 /201254
with a deep cover of raw materials, but this is not necessarily the most efficient mode of operation. Furnaces that have converted to an operation with a partial cover of raw materials on the bath have benefitted from improved metal recoveries, lower electrode consumption and the ability to use cheaper reductants – another valuable resource in the pyrometallurgical industry. This mode of operation is particularly efficient at high furnace operating loads. “By removing such typical constraints, the entire process be-comes more streamlined and efficient,” Nell sums up.
Cogeneration is not always the more viable energy-saving alternativeA lot of furnace operators are looking to co-generation to save on energy costs.
The process of cogeneration captures un-used energy in furnace off-gas and uses it to generate electricity. The overall conver-sion efficiency is relatively low, but at most only about 30% of the total energy content of the gas is utilised in this way.
“While this process enables companies to benefit from the energy in waste gas, companies could potentially achieve even
greater benefits by using the gas to dry, preheat or even reduce raw materials be-fore smelting.”
The real key, Nell continues, to reducing electrical energy consumption during the pyrometallurgical process, is to preheat or reduce the raw materials before smelt-ing, ideally with the off-gas generated during smelting.
The electrical energy that is required to smelt the material thereafter could be substantially less, potentially by as much as 50%.
“Xstrata’s Lion Ferrochrome plant in Steelpoort uses a pre-reduction process, which is recognised for its clean, energy-conservative footprint,” Nell adds.
“Ultimately, finding the right balance and solution for every ore type is the key to im-plementing procedures to ‘tweak’ the pyro-metallurgical process.”
“Xstrata’s Lion Ferrochrome plant in Steelpoort uses a pre-reduction process, which is recognised for its clean, energy-conservative footprint.” Johannes Nell
16 - 19 July 2012Johannesburg, South Africa
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Ins ide Mining 05 /201256
Transport and logistics
MANGANESE MINE CONTRACT OPENS DOORS
A mega manganese fuel contract Specialist logistics service provider Crossroads recently entered into a contract for
the distribution and on-site provision of fuel with Tshipi E’ Ntle, a manganese mine
in the Northern Cape. Crossroads has been waiting for an opportunity to enter the
manganese mining market and this new contract is the perfect foot in the door.
The Tshipi E’ Ntle manganese mine is a recent development that seeks to have an annual output of 2.4 Mt for the next 60 years, with
the hopes of pushing this number to 5 Mt, provided economic circumstances allow for such growth.
The contract with Crossroads involves the provision of on-site fuel delivered from the Kroonstad terminal to a storage facility on the mine. As the mine is open-cast, which requires a lot of earth moving equipment, it will use a lot more fuel than any conventional underground mining operation, making the provision of fuel more strategic.
Crossroads is expected to transport up to 1.5 Mℓ of fuel per month. The manage-ment is confident that its commitment and experience in fuel transportation will enable them to manage the contract into a strategic partnership.
“South Africa has 80% of the world’s known manganese deposits, which is why we
are excited to enter this market,” says Ger-hard van der Horst, CEO of Crossroads. “It is a fast-developing industry in this country and we look forward to growing our business
in this area as the Tshipi mine increases its output in the years to come.”
“Our work in the fuel sector is second to none. Our safety standards, driver training, and track record in previous contracts with Chevron, played a big role in this award.”
Th e contract was not awarded through a tender, but rather through an exemplary recommendation from fuel giant Chevron. Crossroads and Chevron have worked to-gether in the past and, in July 2011, Cross-roads was contracted by Chevron to trans-port jet fuel to Cape
Town International Airport at a rate of 260 Mℓ per annum.
“In addition to the standard dangerous goods training we give our drivers every year,
they also undergo mine safety and medical inspections and are equipped with the right technology. We also carry out individual risk assessments to ensure that we comply with all mine regulations,” says Van der Horst.
“We are thrilled to have one client rec-ommend us to another,” he adds. “It is the ultimate proof that if one looks after the customer properly, the business looks af-ter itself.”
Our safety standards, driver training and track record in previous contracts with Chevron played a big role in this award
Ins ide Mining 05 /201258
Botswana’s service and supply chain management company Transport Holdings believes it has a bright future as Botswana’s
mining industry continues to show devel-opment promise. It is because of this that the company is ensuring it retains its po-sition as a market leader to the mining industry in Botswana, while expanding into servicing the industry across the rest of Africa.
“Transport Holdings provides holistic lo-gistic solutions primarily between South Africa and Botswana. As the current con-solidation and transportation services provider for the greater part of the mining industry, as well as cross-border consoli-dation and fast-moving consumer goods (FMCG) distribution in Botswana, we have an intimate understanding of the critical requirements for our clients. We do not believe in the ‘one size fits all’ approach as every client’s requirements are unique. Our aim is always to find a way to meet those unique requirements,” says Rudi Nagel, Transport Holdings business development manager. “What we offer our clients is good customer service, at very competitive rates,” he continues.
Thanks to the mining industry’s active role in Botswana, it has become a critical component of the entire country’s econo-my, and the same can be said for the trans-port suppliers based in Botswana. Trans-port Holdings has with numerous mining projects under way at present and most recently completed its contract for Deb-swana’s Jwaneng Cut 8 expansion project.
Transport and logistics
CARRYING THE LOAD
Botswana does it in style
“We were the main transport contractor for the Jwaneng Cut 8 project,” Transport Holdings MD, Anthony Lee explains. “The largest part of this was performing the full logistics function for a shipment of 48 km of 600 mm steel pipes, imported from Tur-key. Our performance was recognised by Debswana, and we received a letter of com-mendation from the chief project engineer as a testimony of our service levels and lack of incident and damages.”
Lee continues: “We have recently been awarded a contract from African Copper for transportation of 70 000 tpm of ore from its Thakadu mine site to its Mowana mine site, a distance of 160 km. Beyond this, we have a pipeline of interesting projects we are working on.”
Both Nagel and Lee agree that the min-ing industry in Botswana is becoming in-creasingly focused on safety, standards, an integrated solution and service levels. This requires higher levels of investment and more demands on execution.
“With the support of our valued custom-ers and our experience in the past, we are extremely excited about what the future of the mining, as well as the transport in-dustries in Botswana holds, and are ready to meet their changing needs,” Nagel adds. This is coupled with the challenge of find-ing skilled and experienced drivers, and retaining them. “Botswana has a shortage of these skills, and it takes time to train people, and for them to gain experience.”
Speaking of industry-associated risks, Nagel says there are always risks that need to be constantly managed. “We try our best
to proactively stay on top of all those risks. With constant vehicle tracking to manage turnaround times, and proper systems to manage fraud, you’re half way there. The other half is to continually challenge what you are doing and reinventing your systems as you go along.”
The Transport Holdings service
Transport Holdings is passionate about service and supply chain management and provides as much of both as its clients allow. The major requirements for the mining sector, within landlocked countries such as Botswana, include: warehousing and consolidation, and then transportation of equipment to and from the mines, to and from suppliers, as well as the transportation of the mine’s products to its customers. In addition, the company provides abnormal transport services.“We offer something we like to call ‘a courier service for mining equipment’ due to the fact that we are able to deliver to our clients within the same time as it would take to courier anything. We are proud of achieving quick turnaround times with general cargo and other commodities,” Nagel explains.
Introducing - a new flameproof underground overbelt magnet
Mineral process solutions provider Multotec is in the final stages of developing a flameproof air-cooled overbelt magnet for underground tramp iron removal. The company is poised for the go-ahead to manufacture and supply this innovative new product as soon as it receives certification from Mining And Surface Certification, a company endorsed by the Department of Mineral Resources to act as a certification authority on the standards applicable to this project.
Multotec’s Ernst Maritz says: “In line with our company’s commitment to innovation and safety in the mining industry, we took a decision about two years ago to embark on the development of a flameproof air-cooled overbelt magnet. We expect to receive the required certification some time this year. The certification confirms that the product complies with SANS 10108 Edition 5, which refers to flameproof equipment used underground.”
An illustration of the Multotec fl ameproof air-cooled
overbelt magnet
Dedicated to riggingMobile crane hire company Johnson Crane Hire has established a dedicated in-house rigging department manned by three qualified riggers and supported by a team of experienced rigging assistants. The
Kathu’s karmaTechnology engineering group Sandvik has hit the ground running at its newly established branch in Kathu, which is on track to achieve a significant budget for the area and is confident of doubling this by 2015.
The branch opened in August 2011 and is manned by 15 branch personnel specialising in surface drilling equipment and applications, underground mining equipment and applications, ground engaging tools, technical support for Sandvik equipment and logistical support. It also has 40 people deployed on customer sites for rock tool contracts, 12 field service technicians and 85 performance contract personnel. The Kathu branch includes a warehouse that currently holds about R15 million in spares and tooling.
The Kathu branch’s first major contracts were placed by Assmang for ground engaging tools at its Khumani iron ore mine and for maintenance of on-site Sandvik drill rigs. This was followed by orders for the supply of drill rigs at Khumani and at Assmang’s Bruce and King mining sites, for Bluechip Mining and Drilling, mining contractor, Aveng Moolmans, as well as the supply of crushers and ground engaging tools to various customers.
“We recently received an order from Petra Diamonds’ Finsch mine for the first fleet of equipment to do the post block for development,” Grobler says.
The Sandvik DR 540 drill rigdepartment is managed by Danie Earle, a qualified rigger with more than 15 years’ experience under his belt, 13 of which were spent in the heavy-lift crane industry. A variety of certified rigging equipment is available through the new department, including heavy-lift spreader beams and slings.
In addition, the rigging team is capable of manufacturing and certifying rigging equipment and man cages for specialised jobs, and designing and manufacturing transport cradles drawing on in-house expertise.
Earle says: “The rigging division’s services are tailored to each client’s specific needs, including load testing and certification of equipment, design of lifting equipment, cranage, rigging and placing of equipment. We also undertake route studies, lift assessments, rigging studies and CAD drawings.”
Rigging and lifting of a locomotive in Witbank
Extreme cleaningThe Hydro-Clean system from global screening, washing and pelletising solution specialists, Haver & Tyler Southern Africa, meets the technological and environmental challenge for the effective cleaning of extracted raw material mixtures with particle sizes of between 0 and 80 mm, with substantial savings on energy and water consumption.
“The Hydro-Clean is extremely economical, consuming only 0.12 to 0.30 m3 of circulation
water to clean 1 t of dirt or clay-contaminated material with an energy requirement of only 0.3 to 0.5 kWh”, confirms Joachim Hoppe, operations manager, Haver Southern Africa.
This fl exible high-pressure cleaning system is suited for production rates of 50 to 400 t of output material per hour. “The operating pressure of 40 to 200 bars interacts intensively with the contaminated material, cleaning the particles of stubborn dirt and breaking up the agglomerates.
Hydro Clean offers substantial water and energy savings
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5th & 6th June 2012 | Turbine Hall, The Forum, Johannesburg, South Africa
Focus on Southern Africa
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� Examining the Kell process for the recovery of PGMs
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Horne chairs Mongolian mineHorne Conveyance Safety, the Canadian subsidiary of the Horne Group, has installed Levelok chairing and emergency braking systems on a cage earmarked for Ivanhoe Mines’ Oyu Tolgoi Shaft Number One in Mongolia.
The cage will be used to lower personnel and equipment down the shaft and bring them back to surface.
Horne’s order was manufactured by the group’s Johannesburg factory in just six weeks and shipped to North America for supervised installation on the Canadian-manufactured mine cage.
Oyu Tolgoi is an opencast and underground project in Mongo-lia’s south Gobi desert. The site is being developed as a joint
venture between Ivanhoe Mines, Rio Tinto and the government of Mongolia. Commercial produc-tion is scheduled to begin in the
fi rst half of 2013. The Horne Levelok system was chosen
because it provides controlled decelera-
tion when operating on the steel shaft guides
being used on this project. Addi-tionally, Mongolian mining regu-lations require an emergency braking system that can arrest the fall of a mine cage carrying personnel under conditions of rope failure.
Levelok satisfi es both stipula-tions and further provides a chairing function to overcome the challenge of stretch in the winder rope when heavy materi-als are loaded.
Palabora’s fabulous forkliftsCriterion Equipment, exclusive distributors in Southern Africa for TCM forklifts and reach trucks, supplied Palabora Mining Company (PMC) with a range of robust equipment, designed to cope with demanding materials handling tasks on the mines. “These forklift trucks, which are used by PMC to lift, carry and position raw materials and end products, have been modifi ed by Criterion Equipment to meet exact handling requirements at the mine,” says Brenton Kemp, MD of Criterion Equipment, a wholly-owned subsidiary of Invicta Holdings. “These special modifi cations include TCM’s AMS 2000 management system – with a driver identifi cation tag and bump sensor alert. A lock-out switch cuts off all power supplies, which is an important safety feature if people are working on the machine. Other modifi cations include a jump-start receptacle and anti-corrosion paint for enhanced protection in arduous conditions. Other special features include an epoxy seal on electrical connections for greater protection, belly plates, safety doors and light emitting diode (LED) lights.”
These machines can be fi tted with various attachments for diff erent tasks, including rotating clamps, tyre handlers, fork extension sleeves, hinged and long forks, as well as load grabs.
Levelok clamp
Levelok power pack
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Ins ide Mining 05 /201264
Ceterum censeo
SA Mining needs state intervention?
Africa Mining Congress 55
All Scan 28
Barloworld Equipment 2
BME 4
Booyco Electronics 15
Caterpillar South Africa OBC
Crossroads Distribution 57
DRA Mining 22
Gemecs 39
Global Platinum 2012 61
Graphic Mine Solutions International 42-43
Husqvarna IFC
Komatsu Southern Africa 9
Lexis Nexis 62
Ludowici Meshcape 47
M&J Engineering 31
MELCO Conveyor Equipment 35
MicroMine Intuitive Mining Solutions 45
Multotec Group 30
Osborn Engineered Products SA 23
Pilot Crushtec IBC
Sandvik 25
Sarens SA 36
Snowden 10-11
Softline ACCPAC 38
Taggart Global/LSL Tekpro 32
Thyssen Krupp OFC
Transport Holdings Limited 59
Vereeniging Refractories 52
Veyance Technologies SA 33
Zest Electric Motors - Shaw Controls 17
INDEX TO ADVERTISERS
BY WILLEM SMUTS
Hardly are we rid of young Julius Malema and his nationalisation agenda than we have the next threat to South Af-rica’s mining industry – this time from someone within govern-ment itself. Last month, Deputy President Kgaleme Motlanthe told the ninth International Min-ing History Congress in Johan-nesburg that the recent global fi nancial crisis has shown that more state intervention is need-ed in the economy and therefore the mining industry. Motlanthe said it was not sustainable to have a mining industry that used national resources almost exclu-sively to enrich a small minority. Th e government wanted to see industry transformation, which included increasing employment in mining and related industries.
Does South Africa need more state intervention in mining? Like an axe in the head! It certainly was not state inter-vention in the economy or the mining industry that has made South Africa the biggest econo-my in Africa…
In suggesting that the state is more capable than the private sector of conducting mining operations, so as to address our social problems, one must assume that Motlanthe was informed that the state’s only experiment into mining to date – Alexkor – does not actually ‘count’ in this regard.
Alexkor meanwhile, entirely unfazed by its rather sad his-tory, seeks more taxpayer money to look for diamond assets in Angola, Zimbabwe and the DRC of all places! For these forays it has asked govern-ment to fork out in the region of R250 million of taxpayers’ hard-earned money! Not exactly small change.
Diamond and dust – some good newsLatest in the Zimbabwean dia-mond saga is that traditional leaders attributed the low rain-fall experienced in some parts of the country to the disregard of local cultures and beliefs by mining institutions. A local
environmental organisation was quick to jump on this op-portunity to kick up some dust, claiming: “Th e mining sector is still governed by archaic laws that are restricting the growth of the sector… [there are] no provisions regarding community
rights, environmental rights and general transparency.”
The government recently announced that it would fi-nalise the long-awaited Mines and Minerals Amendment Bill when Parliament resumes sit-ting in May, while the prom-ulgation of a diamonds policy is expected to be completed in the second half of the year.
Apparently small local busi-nesses that were aff ected by mining operations in the Ma-range area have also started
to receive compensation from Chiadzwa Community Develop-ment Trust. Th e business own-ers had to be asked to open bank accounts to enable the company to deposit their monies. By late last year, more than 500 fami-lies from Chiadzwa diamond
fi elds had been relocated to new houses built in a relocation vil-lage some 24 km from Mutare.
Just to keep things interesting on the political front, the United States government wants Zim-babwe’s Minister of Mines and Mining Development, Obert Mpofu, and his delegation to at-tend the Kimberly Process Certi-fi cation Scheme meeting set for June this year – one wonders if the US wants to make Mpofu an off er he can’t refuse... Willem Smuts
It certainly was not state intervention in the economy or the mining industry that has made South Africa the biggest economy in Africa
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