African Mining News issue 12 by Aveng Media

ISSUE 12

East African countries deploying clean energy projects

IT BEGINS

New forecasts from latest STAT E O F A F RI CAN E NE RG Y OUT LO O K

WITH PEOPLE

IMMENSE POTENTIAL

O I M CO N S U LTING C E O A RJEN D E BRUI N

Africa’s natural gas sector is building momentum

Equipping front-line leaders with the required skillset, toolset and mindset for success

How Africa can benefit from its

CRITICAL MINERALS

RSA R45.00

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bounty

UPCOMING EVENTS

COMPANY PROFILES

WHO'S ON THE COVER?

Engineering solutions for the designing, installation and upgrade of new state-of-the-art equipment and existing plant constructions. For LOESCHE, CO2 and energy consumption reduction is a priority we can achieve the most significant impact through our technological solutions, on-site technical support and optimized solution engineering by optimizing existing plant equipment. As the largest OEM in our industry, we developed software solutions through constant Visualisation, prediction, optimisation with fully integrated AI for your process. PLANT ENGINEERING SOLUTIONS FOR ANY MISSION *CO2 Emission reduction * less water usage * lower energy consumption * Higher throughput

Loesche GmbH has been the market leader in vertical roller mill technology since 1906 and is synonymous with quality, service, and solution Engineering. It is a well-known fact that the only constant in the global plant environment is change, and Loesche recognised the challenges in the field with skills shortages, fast evolving technology, and remote working, to name only a few. We believe in working smarter and not harder, and our engineered software solution was developed keeping the most pressing concerns and obstacles our customers face daily in mind. Through the company’s business unit, Loesche Automation - the integrator of state-of-the-art machine technology and intelligent process control – it can combine cutting edge machine technology and intelligent process control for optimum and efficient plant operation. Loesche also realized that the inherited “fear of the unknown“, that people from all walks of life have, can be eliminated by removing the “unknown”. By utilizing self-learning artificial intelligence, the time and effort required to reach a state where a mill performs optimally with predictive maintenance and reliability as constants, can be drastically reduced. This "ideal state" can be achieved

LET 'S T ALK : Janie Scholtz jscholtz@loeschesa.co.za +27 (0)66 113 9297

DID YOU KNOW?

HARDWARE FAILURES CAUSE 45% OF TOTAL UNPLANNED MAINTENANCE. THIS WAS REDUCED BY MORE THAN 35% AFTER DALOG MACHINE SURVEILLAN without spending a fortune on personnel training, and it can reach maturity traditionally only found after extended experience and cost - mostly measured in years instead of months.. Working in collaboration with experienced engineers and specialists in the field, we developed the software solutions to address all concerns obtained from our customer feedback. We pride ourselves on the fact that we provide a non-vendor specific solution by taking digital measurements and control signals already installed in your plant to our software, which then uses non-intrusive big data processing algorithms and artificial intelligence, to not only give all the predictive maintenance features expected with automated systems, but also to increase output, optimize your process and prolong the lifetime of your equipment, whilst significantly reducing energy consumption and emissions. The Loesche Digital software solution consists of 2 packages that can assist any plant to become fully digital ready for the future, as part of Industry 4.0, or it can have huge impacts as individual solutions addressing specific shortfalls and/or capitalize on easy cost saving software. The digital packages are: The Plant Pilot powered by aixprocess is the innovative digital real-time optimiser (RTO). With state- of-the art statistical and machine learning algorithms. The Plant Pilot continuously monitors and optimise the entire range of information from different data silos: process control system, laboratory values, additional optical or vibration sensors, environmental data such as weather conditions and electricity prices. Digitising your process gives you full control on reliability, safety as well as significant savings . Some examples of real time installation have proven : • 23% Increase in Sales value of production • 27% Increase in equipment utilization • 18% Production cost reduction CMS powered by DALOG is a combined machine Surveillance Software and enables permanent machine monitoring and prediction of mechanical failures and their consequences. A clear dashboard provides you with a plant-wide overview of the opening states of all monitored machines with CMS by DALOG.

THE NATIONAL GEOSCIENCE DATA PORTAL ENABLING INNOVATION IN EXPLORATION The field of the geosciences has witnessed remarkable advancements in technology. At the forefront of this digital revolution are geoscience mapping portals that allow scientists, researchers and the public to explore a wealth of information produced by geoscience organisations. The Council for Geoscience (CGS) was legislatively established as the custodian of geoscientific knowledge and information in the Republic of South Africa. It is tasked with the statutory responsibility of managing and disseminating geoscience knowledge and information. To give effect to this, the organisation has developed a geoscience data portal with a view to achieving this objective in the most efficient and cost-effective manner, as well as to support new participants in the geoscience sector. This portal serves as a centralised repository for a diverse range of geoscience data types, including geological maps, geophysical surveys, borehole records, geochemical data and more. The portal provides convenient search functions, allowing users to locate specific datasets based on their requirements. Notwithstanding, the CGS also developed a data policy that provides for protection of proprietary rights of classified information submitted in accordance with the Geoscience Regulations as part of protecting the sanctity of investments. Since its launch in June 2021, the portal has seen significant growth and success. To date, the feedback received has been overwhelmingly positive, particularly regarding the 1:50 000-scale maps produced as part of the organisation’s integrated and multidisciplinary geoscience mapping programme. Thus far, 255 of these maps covering areas of mineral importance in South Africa, have been uploaded and are available for download.

National Borehole Core Depository.

Exploration and discovery One of the most compelling aspects of the mapping portal is its interactive nature. Users can engage with the data seamlessly, transitioning from global views down to highly detailed regional perspectives. This approach empowers users to explore remote or inaccessible locations, enabling them to uncover hidden geological features, such as fault lines. By examining various layers of information in depth, it is possible to identify geological patterns, establish correlations, and locate areas of high resource potential. This capability of the portal is therefore instrumental in facilitating more sustainable and efficient planning for extraction and utilisation. National Seismograph Network In addition, the CGS also manages the South African National Seismograph Network (SANSN), which consists of a vast network of seismic stations strategically placed across the country. These stations monitor ground movements using seismographs which record vibrations caused by seismic activities. A Seismic Catalogue Verified National Network dashboard, available on the data portal, plays a crucial role in facilitating the visualisation of seismic patterns. By analysing historical events, monitoring the real-time cluster network, and utilising advanced seismic modelling techniques, the portal dashboard provides valuable insights for assessing risk and for developing effective strategies for earthquake preparedness and potential impacts. National Borehole Core Depository Moreover, as part of the CGS digital migration programme, the organisation has made investments in its National

Hyperspectral scanner.

hosts strategically selected intervals from boreholes that were previously scanned using the hyperspectral scanner. These intervals will undergo non-destructive XRF scanning. This pilot project aims to integrate two complementary datasets — mineralogy and chemical assays — to better understand trends associated with mineralisation in different deposits.

Dashboard of the South African National Seismograph Network (SANSN).

Borehole Core Depository (NBCD), including the installation of a hyperspectral scanner. The primary objective being to scan all available drill core amounting to approximately 800 km, using the hyperspectral scanner. This ambitious undertaking will enable the CGS to create a ‘Virtual Core Library”. To date, 10% of the archived drill core has been scanned. In future, this library will allow the public real-time access to high-resolution photographs, mineral maps and previous results of core analyses under CGS custodianship. This valuable resource will assist CGS stakeholders to make informed decisions regarding their specific needs from the facility, such as accessing physical borehole portions or providing information for geoscience research and the exploration for economic minerals. The depository aims to make available information that accurately represents the nation’s geology and lithostratigraphy. In alignment with the organisation’s Geoscience Technical Programme (GTP), the depository

www.geoscience.org.za I Tel: +27(0)12 841 1911 I

Notable core deposited at the National Borehole Core Depository includes borehole core from the CGS Karoo Deep Drilling (KDD) Programme, the Carbon Capture Utilisation and Storage (CCUS) Programme and core from the ICDP Moodies BASE Project in the Barberton Mountainland. The core library serves as a reference archive for the Republic of South Africa, containing a curated collection of borehole core, cuttings and geochemical soil samples representing the country’s major lithologies. Researchers and the public alike have access to view, sample and perform hyperspectral scanning on these materials. Due to the positive feedback and popularity of its products and services, the CGS will continue to foster collaboration, exploration and innovation within the geosciences. As the portal expands with the addition of more data, the potential for new discoveries and advancements in exploration will surely continue to grow. For more information, please visit https://maps.geoscience. org.za or email portaladmin@geoscience.org.za.

@CGS_RSA I

CONTENTS ISSUE #12

14 ON THE COVER REFINING LIVES, RELEASING VALUE From its early roots in cross-cultural mediation to becoming one of the leading business improvement consultancies in Africa, the story of OIM Consulting is an extraordinary one. Now OIM is considered the go-to consultancy for supervisory efficiency, with an established track record for driving profitable and sustainable change with giants such as Gold Fields, Anglo American and De Beers, among others.

REGULARS 10 FROM THE EDITOR

Bright and promising future

12 EVENTS

Conferences and meetings for the African mining industry

African mining news

Issue 12

CONTENTS

ISSUE #12

FEATURES

40 FORECAST

Revised outlook highlights continued importance of strong capital expenditures in African oil & gas

46 IN FOCUS

Senegal’s small-scale gold miners still use poisonous mercury: how to reduce the harm

52 THOUGHT LEADERSHIP

The legacy of migrant labour, and the challenges of illegal mining and legalising artisanal mining

58 NEW DEVELOPMENTS

Sub-Saharan Africa: Top 5 service contracts awarded to European companies over the past 12-month period

64 CRITICAL MINERALS

How Africa can benefit from its critical minerals bounty

72 CRITICAL MINERALS

How recycling could solve the shortage of minerals essential to clean energy

78 OIL

Uganda will soon be exporting oil; an energy economist outlines 3 keys to success

84 GAS

Africa’s natural gas sector is building momentum in 2024

88 MINERALS/GEMS

Most pink diamonds were birthed by a disintegrating supercontinent. Where can we find more?

94 CLEAN ENERGY

East African countries adopt a diversified resource development strategy

98 INVESTMENT

Enhancing the attractiveness of Africa's energy sector to European investors

African mining news

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Pragmatic solutions to real world challenges

www.ukwazi.com

CONTENTS

106

ISSUE #12

106 ECONOMY

The pivotal role that partnerships play in unlocking economic prosperity and energy security across the continent

112 FINANCING

European Investment Bank Global presents the first Just Resilience and Just Transition approach to meet the needs of the most vulnerable

116 ARTISANAL MINING

New project addresses corruption in Democratic Republic of Congo’s artisanal cobalt sector

122 FUTURE OF MINING

NASA’s robotic prospectors are helping scientists understand what asteroids are made of—setting the stage for miners to follow someday

130 REGULATORY

How African–European partnerships are shaping oil & gas regulations

136 TECHNOLOGY

OndoSense expands its portfolio of high-performance and reliable industrial sensors

142 SKILLS DEVELOPMENT

The case for South African training companies as local partners

148 SAFETY

Ensuring the safety of autonomous mining to minimise risk and downtime

156 INTERNATIONAL

Cleaning up Australia’s 80 000 disused mines is a huge job—but the payoffs can outweigh the costs

162 HUMAN RIGHTS

Industrial mining of cobalt and copper for rechargeable batteries is leading to grievous human rights abuses in the DRC

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from the editor

DISRUPTION AHEAD!

ike the beckoning of the siren's song from ancient Greek lore, 2024 has lured us into its bosom. Whether to WITH PEOPLE ruin or riches, this tale will knit a formidable tapestry before the year is out. All we can say for certain is that it will be an exciting journey once again. As the backbone of our economy, South Africa's mining industry stands as a testament to the nation's geological richness and economic resilience. From the glittering allure of gold and diamonds to the practicality of coal, the industry has shaped the country's past and continues to mould its future. As South Africa navigates the challenges of sustainable development, the mining sector remains a vital force—contributing not only to the country's prosperity but also to the global mineral landscape. But, of course, you know that, and the important role mining plays on the world stage. Why else would you make the trip to Africa’s southernmost point to attend the Mining Indaba in Cape Town? As always, players of all sizes in the mining industry are gathering to rub shoulders, compare notes and gather information for the year ahead. With the 2024 theme: “Embracing the power of positive disruption: A bold new future for African mining”, there is sure to be plenty discussion around how to change the industry for the better. The South African mining industry is already benefiting from the advancements in technology, health & safety, environment and exploration, among others—and now is the time for new investments that lead to new opportunities.

deploying clean energy projects

New forecasts from latest STATE OF AFRICAN ENERGY OUTLOOK

IMMENSE POTENTIAL

RJEN DE BRUIN

Africa’s natural gas sector is building momentum

Equipping front-line leaders with the required skillset, toolset and mindset for success

How Africa can benefit from its

RSA R45.00

africanminingnews.co.za

East African countries

IT BEGINS O I M CO N S U L T I N G C E O A

ISSUE 12

CRITICAL MINERALS

UPCOMING EVENTS

COMPANY PROFILES

bounty

THE AFRICAN MINING NEWS TEAM PUBLISHER: Donovan Abrahams EDITOR: Ashley van Schalkwyk (ashley@avengmedia.co.za) COPY-EDITOR (PRINT & ONLINE): Tania Griffin DESIGN: Kauthar Renamé & Shadon Carsten

WHO'S ON THE COVER?

EDITORIAL SOURCES: TheConversation.com, Energy Capital & Power, NJ Ayuk/African Energy Chamber, European Investment Bank, Amnesty International, IMPACT, Sunday Mabaso, Jacques Farmer, Marcello Sanchez IMAGES: Adobe Stock, Courtesy images PROJECT MANAGER: Viwe Ncapai ADVERTISING EXECUTIVES: Viwe Ncapai, Lunga Ziwele, Charlton Peters, Andre Evans, Mpumzi Njovana, Denver Chidazembe ONLINE CO-ORDINATORS: Majdah Rogers, Ashley van Schalkwyk, Tharwuah Slemang IT & SOCIAL MEDIA: Tharwuah Slemang ACCOUNTS: Benita Abrahams, Bianca Alfos HUMAN RESOURCES MANAGER: Colin Samuels CLIENT LIAISON: Majdah Rogers PRINTER: Novus Print DISTRIBUTION: www.africanminingnews.co.za, www.issuu.com DIRECTORS: Donovan Abrahams, Colin Samuels PUBLISHED BY: Aveng Media

Boland Bank Building, 5th Floor 18 Lower Burg Street Cape Town, 8000

ashley@avengmedia.co.za

African mining news

Issue 12

Tel: 021 418 3090 Fax: 021 418 3064 Email: ashley@avengmedia.co.za Website: www.avengmedia.co.za

DISCLAIMER: © 2024 African Mining News magazine is published by Aveng Media (Pty) Ltd. The Publisher and Editor are not responsible for any unsolicited material. All information correct at time of print.

Africa

Fuelling Efficiency See us at:

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Cape Town | Stand R48 5-8 February 2024

and low-emission. Drive sustainability forward with Bergen Engines.

We have the power. A Langley Holdings company.

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19/12/2023 14:36

events

MEET UP Rub shoulders and conduct business with high-flIers in the African mining industry 5 TO 8 FEBRUARY

INVESTING IN AFRICAN MINING INDABA 2024

121 MINING INVESTMENT CAPE TOWN

5 & 6 FEBRUARY

miningindaba.com

The Welgemeend, Gardens, Cape Town, South Africa

www.weare121.com/121mininginvestment-cape-town The event will bring together over 110 mining companies and 650+ investors in the grounds of a beautiful manor house, for two days of curated 1-21 meetings and in-depth industry insights from leading funds and analysts. Whether you are an investor looking for exciting new projects, or a mining company hoping to raise capital and make new connections, 121 Mining Investment is the premier forum to make it happen.

This year's theme, “Embracing the power of positive disruption: A bold new future for African mining” will encourage and support the needed change and disruption the African mining industry needs to move forward. With the industry being in the early onset of disruption, with advancements in technology, health & safety, environment and exploration to name a few, we believe it is time to put the real issues on the agenda—outlining the true investment inhibitors and how these ultimately feed into new opportunities.

5 TO 7 MARCH Cape Town International Convention Centre energyindaba.co.za

The Africa Energy Indaba is the definitive energy conference for Africa, providing an annual programme that shapes energy policy for the African continent. The conference will discuss, debate and seek solutions to enable adequate energy generation across the continent. Delegates, drawn from all continents, represent an unrivalled combination of industry experts, project developers, financiers, energy users, government officials and manufacturers.

SOUTHERN AFRICAN PYROMETALLURGY CONFERENCE 2024

THE JUNIOR INDABA 2024

12 TO 14 MARCH

28 & 29 MAY

Misty Hills Conference Centre, Johannesburg, South Africa

The Country Club Johannesburg, Auckland Park, South Africa

This conference covers crucial aspects of the continually evolving and exciting field toward sustainable pyrometallurgy. Contributions to the programme are anticipated from operating plants, universities, research organisations and engineering companies, so that the full spectrum of pyrometallurgical activities can be covered with a special focus on decarbonisation, energy and resource efficiency and cleaner processes.

The Junior Indaba is a popular meeting place for junior miners and is enjoyed by all for its incisive, informative and frank discussions tackling the challenges and opportunities for exploration and development for junior mining companies in South Africa and elsewhere on the continent.

www.saimm.co.za

AFRICA ENERGY INDABA

Cape Town International Convention Centre

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www.juniorindaba.com

Operating in a wide variety of industries Hargreaves Industrial Services are Operating in a wide variety Industrial are materials handling experts withofanindustries exemplaryHargreaves track record in healthServices and safety materials handling experts with an exemplary track record in health and safety performance. performance. We specialise in the rationalisation of multiple contracts with seamless transition, whilst We specialise the rationalisation of multiple contractsthrough with seamless transition, whilst driving processin change management and innovation technology and software. driving process change management and innovation through technology and software.

South Africa Office: South Africa Office: 3 Nobel Boulevard, CapeBoulevard, Gate, 3 Nobel NE3, Vanderbijlpark, Cape Gate, Gauteng  NE3, ben.vandermerwe@hsgplc.co.uk Vanderbijlpark, Gauteng 060 542 1729 / 016 980 2163  ben.vandermerwe@hsgplc.co.uk  060 542 1729 / 016 980 2163

UK Office: UK Office: Unit 2, Wordsworth Business Park, Barugh Barnsley, S75 1FJ, UK Unit 2,Green, Wordsworth Business Park,  hisenquiries@hsgplc.co.uk Barugh Green, Barnsley, S75 1FJ, UK  hisenquiries@hsgplc.co.uk

cover profile

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cover profile

REFINING LIVES, RELEASING VALUE OIM’s journey to becoming a leader in equipping supervisors for operational excellence

rom its early roots in cross-cultural mediation to becoming one of the leading business improvement consultancies in Africa, the story of OIM Consulting is an extraordinary one. Now OIM is considered the goto consultancy for supervisory efficiency, with an established track record for driving profitable and sustainable change with giants such as Gold Fields, Anglo American and De Beers, among others.

The test of time

Since 1985, OIM’s journey has been marked by transformative shifts, and the invaluable lessons learnt over the years have led to it becoming the consultancy it is today.

The precursor to OIM Consulting emerged in 1974 as a non-profit organisation, dedicated to conflict resolution, managementunion relationships, and the establishment of a cross-culture development programme that aimed to bridge racial divides. Just over a decade later, the commercial consultancy arm was established, which ultimately evolved into the present-day OIM. CEO Arjen de Bruin explains, “As time progressed, the commercial arm shifted its focus from mediation and facilitation to spearheading an integrated, people-centric approach to performance improvement that has been successfully implemented in numerous industries and has stood the test of time.”

It starts with your people

While OIM’s approach has evolved over the years, De Bruin asserts that the company has remained anchored in creating value through capacitating individuals. “OIM has always focused on the link between the individual and business success. In fact, one of the OIM founders maintained that people—regardless of race and background—all want the same thing: the best for their family and future. "So, ultimately, people actively contributing toward a common goal is directly linked to company success and their own goal of a better life.”

cover profile

De Bruin says that OIM still defines itself as a people-focused business, as opposed to a digital or process-centric business, and this has been key to its success. “Mechanisation alone will not boost a mine’s output, nor will machines ever be able to replicate the judgment of a person; motivate and inspire a team; or solve operational obstacles. “All these things—technology, processes, automation—are important, but we have seen over and over that no matter how solid the process or transformative the technology, if your people aren’t capacitated and you don’t have their buy-in and support, you’re dead in the water. “It has to begin with your people; and your front-line leaders in particular,” he asserts.

Skillsets, toolsets, mindsets

Over the past 12 years the company has worked extensively in the mining industry and built a solid reputation for developing the people who manage your daily operational environment – supervisors. OIM targets their competency and productivity levels, while addressing the wider organisational challenges, to improve business results. What you want is for operational excellence to become ‘business as usual’. “All businesses will tell you that the supervisor is the hub of the wheel and that they are the ones who make strategy happen. Whatever targets you have set and whatever culture you want, the supervisor is pivotal to ensuring these are achieved,” De Bruin explains. “But company after company will also admit that the supervisory level is where they need the most help. We have

African mining news

found that 91% of supervisors follow an unstructured and reactive approach to job execution and only 17% have the required competencies for their role.” The company’s signature Supervisory Development Programme (SDP) has been designed to equip front-line leaders with the required skillsets and toolsets, and affect mindsets to drive sustainable success. In essence, the intervention encompasses baseline competency and role assessments, followed by interactive classroom learning, and finally, extensive measurable on-the-floor coaching. It is this coaching, says De Bruin, which is the key differentiator. “You cannot only go broad in your approach—you need to go deep as well. Coaching offers the necessary ‘depth’ for operational excellence. By reinforcing the reallife application of the principles learnt in the classroom, and introducing customised tools for the environment, we can embed

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new habits and practices into the supervisor’s day, ensuring they are consistently applied. “Our intervention has an 80% focus on this type of operational coaching to unlock productivity benefits. It’s a hands-on, daily thing. We literally go underground, in the pits, or stand in the plants with the supervisor to observe and understand what needs to be executed, how the leader executes and manages his/her team, and what the broader, cross-functional interaction looks like.” And the stats speak for themselves. Upon completion of its SDP, OIM typically sees up to a 39% improvement in competency levels and an 84% enhancement in role execution, while 52% of supervisors adopt a more structured approach to their work. As a result, there is also a significant positive impact on productivity. “One of our mining clients reported a remarkable 41% upsurge in gold production and an 86% increase in tonnes per rig,”

cover profile

“IT HAS TO BEGIN WITH YOUR PEOPLE; AND YOUR FRONT-LINE LEADERS IN PARTICULAR.”

says De Bruin. Sustainability is created through building internal capacity among direct managers, integrating the new way of doing into all core processes, and establishing regular audits for ongoing measurement. “It’s about creating competent leaders, instilling efficient processes, and fostering highperforming cultures.”

safety in the same way it does the rest of its offerings: people first. “Research shows that 80% of safety incidents are born out of a poor safety mindset, which leads to unsafe practices and behaviour. You can have the most thorough safety handbook or processes in the world, but if a safety mindset is not cultivated in your workforce, you’re going to run into problems. “And so, we approach safety through a combination of diagnostics, training and operational coaching to guide supervisors and their teams to proactively regulate their safety behaviours—which is congruent with our philosophy.”

Refining lives, A safety mindset releasing value De Bruin highlights that the SDP has evolved over the past few months to encompass a more intentional focus on safety. “If your environment is unsafe or your people are behaving in a risky manner, your lost-time injuries increase, which will affect your output and ultimately hinder your journey toward operational excellence. A structured environment is generally a safer environment.” He adds that OIM approaches

De Bruin says OIM’s ultimate purpose is to better the lives of those who participate in the programme which, in turn, creates value—value for the individual, for the company and, ultimately, for communities. It is this purpose that has informed the company’s new pay-off line: Refining Lives. Releasing Value. “We capacitate leaders and their teams by equipping them with tools, sharpening their skills and positively influencing their mindsets. That potential can then

transform companies and extend to the respective communities, as many of the skills we impart transcend the work environment. “Upon leaving a client, we want each person we’ve taught to know how to set direction, plan, problem-solve and lead and inspire teams effectively. These are the kinds of transferable skills that not only help them at work but also in their homes and communities. “We strive to make a meaningful contribution to the prosperity of our clients and consultants; and to make a difference in the lives of the individuals and communities we engage every day,” he adds.

What’s next for OIM?

De Bruin says the next chapter in OIM’s journey is to use its learnings and proven methodologies to solve challenges in other markets. “Wherever we go, whether it is a conference in the Americas or Australia, it seems that our solution to the supervisory challenge resonates with people.” And so, at the end of 2023, he headed Down Under to get OIM Consulting’s new Australian operation off the ground. “Each market is different and nuanced. And we have always maintained there is no one-size-fits-all approach. So, we are adapting our programme to the unique needs and challenges of the Australian mining sector. “However, we maintain that regardless of market, real change will always start with your people, and we’re excited to take our people-centric approach to operational excellence into new international territories.” For more information, visit oimconsulting.com.

company profile

FOR THE GOOD OF HUMANITY İX Engineers is playing

an instrumental role in solving South Africa's energy and water challenges

proudly South African engineering design and consulting firm, iX engineers focuses on five key market sectors: Energy; Water and Sanitation; Transport; Development Services; and Mining Services. The company's passion is to design and advise on infrastructure development projects that have a direct and positive impact on humanity. African Mining News spoke with CEO Lebo Leshabane about the firm's work in the South African mining sector and what it takes for a woman to lead in a predominantly male-dominated environment. In terms of iX engineers' participation in the mining sector, Leshabane explains that the firm provides a number of water solutions, particularly around water balance, water management and treatment, as well as energy solutions. “The water-energy nexus presents opportunities for iX to develop innovative solutions

African mining news

iX engineers CEO Lebo Lebashane

that reduce operating cost and improve operational efficiency for mining companies, through reduced water consumption and improved energy efficiency. “Various mining companies have undertaken significant developments in renewable energy solutions, which create

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opportunities for iX to support in ensuring solutions reach bankable feasibility stage and are sustainable. "Renewables also create opportunities for energy storage solutions to produce baseload power for the mining operations, which is also an area of expertise for iX through its diverse solutions of BESS (battery energy storage systems) and GESS (gravity energy storage systems),” she says. As a private company, iX engineers believes blended financed structure and publicprivate partnerships (PPPs) are the future of infrastructure

company profile

“PUBLIC-PRIVATE PARTNERSHIPS ARE THE FUTURE OF INFRASTRUCTURE SOLUTIONS IN THIS COUNTRY.” development in Africa. Comments Leshabane, “We have witnessed a shrinking fiscus in recent years and the infrastructure demands escalating exponentially due to the ageing infrastructure, population growth and other factors, therefore the most beneficial approach is for the public sector to leverage its grant funding through a blended finance structure for all sectors.” One area where she believes iX

engineers can make a difference is in transport infrastructure. “Road and rail infrastructure in South Africa needs to be refurbished. There have been great efforts to address the ageing road infrastructure; however, more effort is required to address the railway infrastructure that the mining sector relies on to boost exports of commodities," she says, adding that iX engineers is well

equipped with railway expertise to support the development of railway solutions. Leshabane reveals that iX engineers completed a greenfield airport project, St Helena Airport, worth approximately R6 billion about four years ago. Currently, the company has been awarded the bid for the engineering supervision and monitoring of a major interchange

company profile

worth approximately R5 billion with the South African National Roads Agency Limited on the N3/N2 EB Cloete Interchange in Durban. Bridges are being upgraded (including a transformation of a four-level bridge) to create a free-flow interchange and eliminate previous traffic congestions. As a design engineering company, iX engineers specifies products for use by contractors in projects. Thus, iX engineers are highly conscious of the environmental friendliness and sustainability of their solutions. This involves integrating green materials into their solutions and considering the environmental impact of their projects, says Leshabane. Sustainability also means engaging the surrounding communities to ensure their interests are protected, and that all the companies working on a specific project are aligned to the needs to the communities. “iX has a good corporate governance structure to which the organisation adheres, so we follow the principles of King IV to ensure the projects are well-governed, free from any form of inferred, perceived or actual corruption. It is crucial to maintain proper governance and transparency in the implementation of projects," says Leshabane. “Also, what is key to operations is the ESG [environmental, social and governance] principles, as iX seriously considers ESG in design engineering development and preference on proposed solutions to strive for Net-Zero." It is also important for iX engineers that its projects deliver value for money. “There should be value for money to the clients, therefore value engineering is imperative for iX solutions—big or small. Therefore, the larger the project, more value is realised. iX makes extra effort to find the

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company profile

least cost to implement projects without compromising on quality.” One way in which to ensure value for money is by utilising the latest technologies to plan and carry out functions, and to make sure projects are fit for the future. “The journey of technology integration in iX solutions commenced seven years ago, post a management buyout of WorleyParsons RSA infrastructure business to create iX engineers,” notes Leshabane. iX is working on solutions to digitise the sector and enable real-time decision-making with little human intervention. It has sometimes been tough for Leshabane to work in the typically male-dominated world of engineering, infrastructure and mining. But this determined lady did not simply sit back. “I was very clear and I stood my ground for what I believed in, in a respectful manner. So, I challenged my superiors from when I was very young to do thing differently. When I was unfairly treated, I would speak up to address the matter, and in all instances people’s mindsets shifted." And she has big plans for iX engineers. “In the next three years, iX will be playing an instrumental role in solving the energy challenges and integrating technology in the solutions." Leshabane also sees iX engineers playing a huge role in solving South Africa's water problems: firstly, by ensuring there is sustainability in water supply; secondly, that there is quality water being supplied to residents; and thirdly, reducing water losses (non-revenue water). “iX engineers is well poised to provide sustainable water and energy solutions for the African continent to boost the economies and improve the quality of life,” she concludes. For more information, visit www.ixengineers.co.za.

And still have time for your family Your business has something special to offer and our job is to give your customers a way to discover you and your brand online.

We help you develop your story and your voice and connect with the clients who want to do business with you. We like to talk about your business as much as you enjoy sharing it with others. That means we treat your business like it’s our own. We get down to the nitty gritty and find out as much as we can in an initial free consultation with you where you let us in on the journey you’ve taken up to this point and the goals you have, moving forward. We’ll be actively by your side all the way because your success is our success.

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A WIN-WIN MINDSET Palabora Mining Company is more than just a mine—together with its stakeholders, it is building a sustainable future

alabora Mining Company (PMC) is a copper mine, smelter and refinery complex located in the town of Phalaborwa, in South Africa’s Limpopo Province. The mine owes its origins to a unique rock formation in the region known as the Palabora Igneous Complex. The mine is located directly adjacent to the world-renowned ecotourism attraction, the Kruger National Park, where several on-site wildlife management programmes are co-ordinated as part of its ongoing sustainability drive. The mining company takes pride in being one of the rare breeds of community-based and values-driven companies working

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closer to nature and Mother Earth in a socially and environmentally responsible manner. The company is a certified ISO 14001 business that subscribes to world-leading practices. Employing more than 2 800 employees directly and an additional 4 300 indirectly through contractors, PMC collaborates closely with various communities in the Ba-Phalaborwa region to boost economic development and alleviate poverty through its Socio-Economic Development and Enterprise and Supplier Development programmes. PMC’s trading history and reputation is evident in its processing and selling of high-quality products such as

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refined copper rod, magnetite, nickel and vermiculite. The company operates a successful underground block-cave mine, producing 50 000 tonnes of copper ore per annum. This block-cave mine is a benchmark for integrated design, as no other block-cave mine has been put into a competent orebody. The block height of the cave reaches a record 450 metres in the centre, increasing up to 700m on the periphery—rendering Palabora a world-class mine. PMC recently commissioned Murray & Roberts cementation shaft-sinking team to deliver a new ventilation shaft that forms part of the mining company's Lift II project that aims to extend life of mine beyond 2040. In 2023, PMC finally reached the milestone of the 800m mark, which represents two-thirds of the shaft’s final depth of 1 184m. The success of this project was owed to the innovation and collaboration between the two parties, which was completed within record time without any material safety incidents. PMC’s goal of having zero safety injuries for such a major project was reached, after world-class safety measures were put in place throughout the duration of the project. Lift II brings with it a bright future, and with this future a brand-new identity that reflects its status as a forward-moving and modern company that will continue to build on its corporate and industry reputation, by remaining positive, simple, honest and focused on service, quality and reliability. The success of Lift II has ensured dependability of product supply and a sustainable business into the future. On 9 January 2024, the last blast was conducted at an event to signify the project’s completion and to celebrate the partnership that was core to its success—and the hope that this project will

company profile

bring, not only to employees but Palabora’s host communities as well. The extended life of the mine not only brings forth exciting possibilities for PMC but for Phalaborwa and South Africa as a whole, through benefits of new job creation, further development, continued contribution to the economy, and the preservation of wildlife and nature. Palabora aims to continue contributing positively to the national and global mining industry. Over the years, PMC has dedicated hundreds of millions of rands to improving the lives of the vulnerable in the mine’s local communities within the BaPhalaborwa municipality. With the assistance of local stakeholders and the government, the mining giant has been able to construct and repair roads in areas throughout the local townships and villages—and invest in infrastructure-related projects in education, roads and sanitation. Some of the projects that have been completed in the last 24 months include: • Funding the construction of Mosubutjana Primary School, which aims to deliver quality education to approximately 500 learners in Mashishimale village. • Providing a sterling 153 full tertiary study bursaries to high achievers in the Limpopo Province to study at accredited institutions of their choice for the 2023 academic year until completion of their three- or four-year degrees. • Construction of tar roads in various local communities. • Bursaries for adult education and training as well as adult matric improvement education to employees and community members. • Constructing ablutions and fully functional kitchens at various primary schools in Makhushane village.

• Pothole repair project in Phalaborwa town, adjoining villages and townships. • Selwana village 6km road construction (still in progress with the remaining 3km). • Clean-up campaign to support the Ba-Phalaborwa Municipality's efforts to keep the town clean, by donating a dump truck and 30 skip bins. PMC enjoys a good relationship with the local communities and traditional leaders through consultations and engagement, which has been instrumental in the implementation and success of these projects—underpinned and guided by the core values of integrity, teamwork, courage, caring and accountability. PMC has taken smart decisions along the way and has recently added superior beneficiation knowledge and expertise to longstanding mining expertise. Skills investment has led to numerous accolades being awarded to the mine in 2023. One of PMC’s greatest accomplishments has been the accolade of Top Employer, with certified excellence in employee conditions, by the Global Top Employer Institute in 2023 and 2024 respectively. This prestigious honour as a top employer is a true testament of the evident rate of change observed across the

business. PMC's applied human resources strategies and policies go beyond compliance and satisfy the requirements for accreditation focused on HR best practices, diversity, inclusion, digitalisation, people and competitiveness. PMC was recently recognised and awarded three safety awards by the Southern African International Metal and Metallurgy Mine Safe Awards to mark the company’s past year dedicated to safe mine practices. The awards include CEO Award— Best Improved Safety Award; Magnetite Division—Best Safety Performance in Class; and Best Safety Performance. These awards are testament to the effectiveness of the safety campaigns that have been impactful in changing employee mindsets, changing behaviour, influencing innovative thinking and visibly felt leadership. True to its business values of "Caring and Integrity", as well as its business objective: "To be a leader in the mining industry", PMC business leaders are responding to the call toward transformation and the creation of a conducive workplace by collaborating with the workforce: sharing the responsibilities—with a win-win mindset. For more information, visit www.palabora.com.

company profile

RELENTLESS PURSUIT OF EXCELLENCE MetSoP is in a prime position to lead the way in shaping the future of metallurgical engineering

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company profile

etSoP, or Metallurgical Solutions & Products, was founded in 2019. It has since solidified its position as a cornerstone in metallurgical engineering for the mining sector. Offering flotation-reagent based solutions, and providing test work services and consultancy, the company has evolved into a goto partner for mining enterprises worldwide. Its history is marked by a commitment to continuous improvement and sustainable practices, contributing to its esteemed reputation. To realise the best performance possible, MetSoP works closely with customers to understand both the environment and the application in which its chemicals are being used, and how the environment changes over time. To support this process, the company has developed a broad range of services to help customers optimise their performance potential. MetSoP's team of field and laboratory technical experts have a deep understanding of both the chemistry and processes the company uses. Their depth of expertise enables MetSoP to get to the root of customers’ problems and realise step changes in performance. African Mining News spoke with operations director Ipfi Manenzhe to find out more.

What does your role at MetSop entail? How has your background (qualifications, career) equipped you for this role?

In my capacity as the operations director, my career trajectory in metallurgical engineering has equipped me with a nuanced understanding of the intricacies of this field. This includes proficiency in flotation reagent optimisation and process performance improvement, enabling me to spearhead initiatives at MetSoP which involve collaborating with various mining companies— ultimately contributing to the company's overarching success.

What do you believe lies ahead for the South African mining industry? Is it, indeed, a 'sunset industry' as so many commentators have said?

While acknowledging challenges, the South African mining industry is far from a 'sunset industry'. Technological advancements, coupled with strategic investments in sustainable practices, paint a promising future. MetSoP anticipates and actively engages with these changes, positioning itself as a catalyst for positive transformation in the industry.

How does MetSoP's metallurgical engineering expertise compare to that of companies abroad?

MetSoP's metallurgical engineering prowess not only matches but often exceeds international standards. The company's differentiation lies in its relentless pursuit of excellence in providing customised products to our clients, leveraging cutting-edge technologies and proprietary

company profile

methodologies. This places MetSoP in a prime position to lead the way in shaping the future of metallurgical engineering.

How important is it to MetSoP to 'go local', making use of the services of local workers, manufacturers, suppliers etc.?

MetSoP's commitment to 'going local' extends beyond a mere business strategy. It is a holistic approach aimed at fostering sustainable growth in the communities in which it operates. By engaging local workers, supporting local manufacturers, and establishing robust relationships with suppliers, MetSoP actively contributes to

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the socio-economic fabric of the regions it serves.

What does 'sustainability' mean to MetSoP? What is the company doing in terms of ESG priorities?

Sustainability, for MetSoP, is a core value manifested through a multifaceted strategy. This includes stringent adherence to environmental standards, active participation in community development programmes, and prioritising governance practices that ensure transparency and ethical conduct. Noteworthy initiatives such as ongoing research & development activities in bioflotation exemplify MetSoP's commitment to being an environmentally and socially

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responsible corporate entity.

How is MetSoP embracing the changes brought about by the 4th Industrial Revolution? MetSoP's approach to the 4th Industrial Revolution goes beyond mere integration of technologies. It involves a cultural shift, embracing a mindset of continuous improvement and adaptability. Through the implementation of data analysis and data science tools in decision-making, MetSoP not only enhances operational efficiency but also empowers its workforce to thrive in an era of rapid technological advancements. For more information, visit metsop.com.

company profile

Metsop offers a spectrum of specialty flotation products designed to enhance metallurgical performance, including: • Xanthates • Xanthate blends • DTCs • Dithiophosphates • Dispersants • Speciality frothers

company profile

HOLISTIC APPROACH Colliery Training College is skilling mining industry students and employees to ensure they are future-proof

olliery Training College (CTC) was established in 1965 to address the skills development needs of the mining sector. Over the years, it has evolved to provide training not only for mining (coal mining—underground and opencast training, including mineral processing) but also artisan skills across various industries, diversifying its focus. The college is accredited by the Quality Council for Trades and Occupations as a skills development provider, and as a trade test centre. African Mining News spoke with acting CEO Khulile Shoba about skills development in South Africa, and how the CTC is playing a role in skilling students and futureproofing them for their respective industries. Shoba has been acting CEO since March 2023, overseeing and controlling all strategic and business aspects of the company. “I am responsible for providing strategic direction and creating a vision for success, and also overseeing the business performance. While I am a caretaker until the new CEO is appointed, we continue

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to implement CTC's strategic objectives.” With her background in human resources, she feels she possesses a combination of strategic thinking and strong leadership abilities, with effective communication skills. “So this equipped me with the ability to handle this role effectively and to be able to execute the strategic objectives. And also, because of my people skills background, I am able to motivate the teams to achieve the exceptional results we have had in 2023.” She explains that the company's strategic pillars are to improve and grow the current business,

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and to diversify. “Improving means improving the current curriculum and our offerings. In terms of growing, we are introducing courses to address customer needs—customer-specific programmes to address customer challenges.” The CTC has a footprint throughout South Africa, as well as beyond its borders in Botswana and Swaziland. The college's biggest clients are also its shareholder partners: Seriti, Thungela, Exxaro, Glencore and Kangra Coal. “We also have customers outside the coal mining space, like Eskom.” Regarding skills development, Shoba says it is very crucial for the sustainable growth and competitiveness of South Africa's mining sector. “We know the mining sector plays a significant role in our country’s economy, and a skilled workforce is very essential to ensure safe, efficient and responsible mining practices.” However, she feels the country still has much work to do in terms of advancing skills development, especially with the changes taking place in the technological space. “We need to make sure we don’t lag behind. It is important that we develop new skills in order to ensure we catch up with the developed technologies in the mining industry. “In terms of technical skills, we are comparable in terms

“A SKILLED WORKFORCE IS VERY ESSENTIAL TO ENSURE SAFE, EFFICIENT AND RESPONSIBLE MINING PRACTICES”

company profile of the artisans we develop in South Africa, who are then recruited internationally, and the qualification is recognised internationally. But in terms of technology, we really need to up our digital skills,” she says. The advent of the 4th Industrial Revolution has meant that both students and teaching professionals at the CTC have to develop new skills in order to be future-proof. The college engages intensively with technology research centres, institutions of higher learning and the various employers on technology and skills requirements in the digitisation of mining. “We have also established— and continue to establish—links with various original equipment manufacturers (OEMs) so that we are able to train students on the latest technologies emerging in the industry,” says Shoba. “Having the OEMs and the industry’s research and development organisations as strategic partners enables us, an industrial skills structure, to gain insights and overcome the delay of waiting for regulators to approve a qualification.” In order to facilitate learning, the college is looking at using digital technology to augment its training. Shoba explains that 30% of learning is classroom-based, while practical learning constitutes the other 70%. The latter takes place at the respective employers' sites, but these are generally busy and under pressures (time, budget etc.). So, in order to provide effective training for the students, the CTC aims to develop its own 'workplaces' by turning the physical mockups that the employers currently use into digital replicas of the workplace environment so that students can access those at the college. “In this way, the work environment is digitised so that students get the same experience. Which means that even before they

get to physically be at the work environment, they are already familiar with that environment through digital means.” On the engineering side, the CTC offers artisan training programmes in auto electrical, boiler making, diesel making, electrical fitting, fitting and turning, metal machining, using heavy earth-moving equipment, instrumentation, millwrighting, rigging and welding. On the mining side, it offers an underground coal blasting certificate, and an open-cast coal blasting certificate including mineral processing. Also in terms of mining skills, the CTC operates an underground training centre where students mine coal as they train, teaching them to mine safely and profitably, regardless of the conditions. “Our underground training centre has been in operation for the better of 30 years in the underground coal section in Greenside Colliery. This has been cemented into the culture and the growth over the years of the coal miners. So, the culture has become the baseline for all miners, shift overseers, mine overseers, mine managers and most general managers in the coal mining sector,” says Shoba proudly. She is equally proud of the underground training centre's safety performance, noting “we have 21 years' lost-time injury-free. Remember, this is an environment where 90% of the mining and training is done by learners with little to no skill or experience in the mining or underground environment.” It is not only the students who benefit from training; their

employers will reap the gains of newfound knowledge, too. Their productivity will increase/improve by having better skilled workers who are more efficient and effective in performing tasks; these upskilled workers will also have the necessary expertise to handle complex technical processes. In addition, says Shoba, the artisans will be able to excel at fault finding and problem solving, meaning there will be less downtime and more quality output. She adds, “Within the rapidly evolving industry, technically skilled workers can easily adapt to new technologies and tools, which will ensure companies remain competitive and embrace technological advancements.” At the CTC, it is not only about ensuring students get the best in knowledge transfer; the college also ensures their basic needs are met by providing affordable accommodation, well-balanced meals (instead of take-aways) and sporting facilities for their physical well-being. After all, as the adage goes, a healthy body is a healthy mind. These extra services also allow for accessibility. “Many learners come from different regions and distant locations, so we really assist them when we provide them with accommodation so that they don’t have the stress of distractions by having to travel long distances or look for a place to stay,” says Shoba. “It also assists with time management, as the students can spend more time studying and doing their practicals instead of commuting.” Ultimately, she says, “it promotes community building because the students get to collaborate in their learning and studying, and address practical concerns, which contributes to the holistic approach to their education and learning.” For more information on courses, visit www.ctctraining.org.

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STEADFAST COMMITMENT B5 Plus Limited has become the leading steel manufacturing, pre-engineering fabrication and trading company in Ghana under the leadership of Mukesh Thakwani

5 Plus Limited is a certified ISO 9001:2015 quality management system company located in Ghana. It was started in 2002 by its founding chairperson Mukesh Thakwani (“Mr Mike”), with the vision and mission to become the world’s most recognised steel industry business through the excellence of its employees, its innovative approach and its overall conduct. The company’s mission is underpinned by its steadfast commitment to realise high growth in all spheres in which it operates. The indomitable spirit of this steel company stays buoyed with its focused vision and relentless efforts of its employees under the astute guidance of Thakwani, who has been at the company’s helm from its inception and has carried it forward to its present position of prominence. Governed by Thakwani, one of the best business visionaries

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endowed with an enterprising spirit and the ability to discern future trends, the company has grown by leaps and bounds within a short span of time.

The market

B5 Plus has become the leading steel manufacturing, preengineering fabrication and trading company in Ghana, with a complete range of steel products suitable for construction from small-scale projects to huge ones like mining, shipping engineering, automobile and real estate projects. We also deal in chemical products, thanks to our expertise in sales, distribution and, most importantly, our unwavering passion to deliver reliable products. B5 Plus is the largest of all its kind, not only in Ghana but in the entire West Africa. We create value for our customers by ensuring we are always well-stocked, maintaining the most extensive footprint of facilities and bolstering our market leadership position in all the segments we serve. The

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company boasts a manufacturing and trading facility in Ghana and other neighbouring countries in West Africa. Our services extend to the corporate sector, traders, construction and mining, and to end consumers in the Economic Community of West African States. We have constructed one of the largest, strategic, state-of-theart steel manufacturing plants in Africa at Larkpleku Village, Prampram, under the 1D1F (One District One Factory) programme— in line with the Ugandan government's mission to promote “Made in Ghana” products. We have procured 642 acres of land under the 1D1F. The first phase of the plant comprises a steel melting shop, a rolling mill with a production capacity of 550 000MT per annum, and a prefab manufacturing plant with a production capacity of 60 000MT per annum. We will be producing 1.5 million MT in different phases. In the second phase, B5 Plus will be manufacturing steel profiles and aluminium products. The third phase will be the manufacturing of cold rolled products. The steel factory at Tema is nestled in a sprawling 85 acres of continuous land amid a heavy industrial area, criss-crossed with inland roads and reinforced concrete storage areas. The facility includes factory blocks, warehouses, engineering stores, an automobile workshop equipped with state-of-theart facilities, weighing scales and several auxiliary offices. To facilitate logistics and transport, the company has ultra-modern, world-class material-handling machines and equipment. B5 Plus has also initiated a Research & Development department for project reengineering and continuous development to help reduce the dependency on imported spares and increase the production capacity with respect to local

advertorial conditions. The company always endeavours to produce higher quality products with the aid of advanced machines. We are locally purchasing scrap to feed our plant, as these significant raw materials are used in the manufacturing of iron and steel products, required for running our operations smoothly without any bottlenecks and are key for sustainable growth. Based on current operations, we require approximately 40 000MT of scrap per month, which we will procure partly locally; our requirement will go up in the near future once we augment our production. B5 Plus is in the process of building a ship-breaking factory, which will support our steel industry. Dismantled ships also generate quality reusable steel scraps, which serves as input for our steel melting shop. We will be manufacturing aluminium ingots, steel balls etc. in different phases.

The network

B5 Plus has the largest network of wholesalers, dealers and distributors in Ghana, Togo, Burkina Faso, Niger, Nigeria, Benin, Freetown, Liberia, Ivory Coast, Guinea and Mali. Ghana used to be an importer of steel material from neighbouring countries in West Africa, but now it has become a net exporter due to the concerted efforts of B5 Plus. The wholesale distribution centres in Accra, Kumasi, Takoradi, Tamale, Kasoa and Agloboshie, as well as the manufacturing centres and distribution centres in 25 branches across West Africa provide extended credit and prompt service to our customers all over the region.

The supply

As a supplier, we give priority to ensuring quality as well as security of supply. Our integrated supply chain helps us maintain a high standard of the quality of

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the product, as well as prompt and safe delivery. This reduces the potential need for rework, increases reliability of service and saves customers valuable time and money.

The social contribution

B5 Plus has created employment for 15 000 people direct and indirectly. It has also contributed vitally to the development of shipping, banking, transport & logistics, real estate, mining, oil, gas, fabrication the and automobile industry as a customer or supplier. The vision of B5 Plus is to accomplish the benchmark not only in the quality of its products but also in corporate citizenship through the excellence of its people. The employees who join the company as novices get transformed into full-fledged stalwarts who become proficient in their respective fields. The progress of employees is closely monitored, analysed and assessed by exposing them to a battery of in-house training and seminars conducted by expert. The philosophy of B5 Plus has been to give back to society generously by creating ample opportunities for everyone. There is a direct relationship between sustainability of business, wellbeing and the development of the society. B5 Plus is actively involved in corporate social responsibility activities through the B5 Plus Care Foundation. This charitable

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organisation takes care of underprivileged children in Ghana by providing them with basic needs including free education and basic medical care. The foundation organises blood donation camps and free health check-ups every year. In line with the corporate belief that capacity building is quintessential for long-term development and growth, B5 Plus has promoted a world-renowned school in Tema, DPS International (DPSI), which is a centre of excellence in learning and all-round development of children in Ghana and its neighbouring countries. Tanya Thakwani, a shareholder of B5 Plus, is actively involved in the running of operations at DPSI Ghana. Her aim is to impart quality education—the hallmark of the institution—in order for the DPSI to carve out a niche for itself on the map of West Africa. She is a true educationist who envisages building capacities of the spirit of inquiry, creativity, entrepreneurial and moral leadership among students. The Duke of Edinburgh’s International Award association has honoured Thakwani for his generous contribution toward the socioeconomic development of Ghana. The expertise of B5 Plus, its reputation for best quality, market know-how and timely delivery of service to meet the requirements of huge construction projects and the regional market have paved the way for the company becoming the premier steel industry business. For more information, visit www.b5plus.com.

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SUSTAINABLE SERVICES GNF1 is keen to bring about positive change to the South Africa mining industry

NF1 is a 100% black woman and youth owned company established in 2013, based in Witbank, Emalahleni (Mpumalanga) with an expanded footprint in other provinces like the Northern Cape and Limpopo. It is a Level 1 BBBEE rated business under the leadership of managing director, Fortune Naledi. Its service offering includes engineering, consulting, construction and logistics. Being a youth and black woman owned company brought along challenges working in predominantly male-dominated spaces. But GNF1 overcame this challenge by diversifying its workforce. “Another challenge was the barrier to entry, especially due to lack of a track record and references,” says Naledi, “which resulted in clients not quite trusting that we could do the job. Fortunately, we managed to overcome this challenge by timely delivery of projects, backed by consistent results. "We eventually built up a list of references who were willing to back us up on the work that we do. “GNF1 celebrated its 10th year anniversary in 2023, which is a great success for an SMME [small, medium & micro enterprise]—

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indicative of our tenacity, ability to go from strength to strength, solidifying our position as a progressive business in the market.” The company's policy is to provide the best services to the mining industry by employing the best expertise to deliver consistent results, thereby expanding and giving employment to the local community. GNF1 is also a keen partner to other well-established businesses, helping to deliver the required positive change to the mining industry. Past clients have included Exxaro, South32, HCI Coal, Seriti, Eskom, Silica Quartz, Kudumane Manganese Resources, Wescoal, Minopex, WBHO and Glencore, among others. Some of the key projects in which GNF1 has been involved include the supply and delivery of washed filtered sand for development of an ash dam facility to increase ash-dumping capacity. GNF1 has also been appointed as a preferred mechanical plant maintenance service provider for a number of big mining operations. It has done construction of concrete works for a processing plant of a manganese mining company in the Northern Cape, as well as for processing plants for a number of mining companies in Mpumalanga. Naledi shares, “GNF1 is looking into expanding into the South African Development Community, where it will collaborate and partner with mining companies in the supply of critical equipment, engineering and construction services.” She reveals that the COVID-19 pandemic was a big challenge, in that operations were halted which impacted the company's projects. It was faced with a huge operational challenge, but in the process it opened up for diversification.

GNF1’S POLICY IS TO OPERATE L O C A L LY A S MUCH AS POSSIBLE, EMPLOYING LOCAL YOUTH AND WOMEN The logistics leg of GNF1 was born out of the reduced demand on engineering and construction services. The company ventured into the logistics space with a side-tipper truck, and has since increased its fleet to more than 10 trucks. Currently, there are plans in place to double the fleet size in 2024. GNF1’s policy is to operate locally as much as possible, employing local youth and women, as this assists in poverty eradication, youth employment and the upliftment of local SMMEs. It partners with local suppliers to help shine a light on local products and providers. The company currently employs 76 people, of whom 98% are black youth. Training and development is a focus area for people employed by GNF1.

“Ubuntu is the driving force behind the company's corporate social investment initiatives,” states Naledi. “GNF1 is passionate about playing a part within local communities, ensuring South Africa becomes better at community building; this will impact how the country grows into a balanced economy.” GNF1 is driven by the community in which it operates, which is why the company continuously supports initiatives that boost the local people, such as issuing school shoes to selected communities in need. “We believe that the future of the community is in its children, and therefore support them as much as we can. We also have a programme that provides sanitary towels for those in need at schools. Both these programmes are active year on year and whenever we are invited to assist,” adds Naledi. GNF1 is also deliberate about operating in a sustainable way, with most activities offered in a way that minimises impact on the environment and adds value to the community. Comments Naledi, “One other way we do this is by sourcing, as much as possible, environmentally friendly products. Recycling of used products such as used oil is a key focus for us as a business.” The company is embracing the 4th Industrial Revolution by using advanced systems to track its trucks and ensure these vehicles do not deviate from their intended routes, which could result in theft. “This is important in bringing comfort to our clients, who can be sure that their products are safe from pickup to final delivery point. This initiative is also aligned to our ESG [environmental, social and governance] drive to ensure we deliver sustainable services,” explains Naledi. For more information, visit gnf1.com. 013 692 3052

forecast

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forecast

STILL SOME GOOD NEWS Revised outlook highlights continued importance of strong capital expenditures in African oil & gas

forecast

hen the African Energy Chamber (AEC) published its African Energy Outlook for 2023, there was ample reason for optimism that Senegal was just months away from becoming a producer of both crude oil and natural gas. On the one hand, Australia’s Woodside Energy was talking confidently about bringing Sangomar, an oil-bearing offshore block, online before the end of 2023. On the other hand, the British giant BP and its United States partner Kosmos Energy were gearing up to start extracting gas from Greater Tortue Ahmeyim, an offshore block shared with neighbouring Senegal, in the third quarter of 2023 and then processing it into liquefied natural gas (LNG) in the final quarter of the year. By mid-year, though, those plans had been derailed. Woodside said in July last year that it had pushed the target date for first oil at Sangomar back to mid-2024 (t.ly/KaVXZ) after discovering problems during the construction of a floating production, storage and offloading unit that had forced it to raise its budget. Then in November, BP also announced a delay (t.ly/fjMHW), saying that GTA would begin gas production in Q2 2024. Its decision appears to have been the result of similar problems—that is, cost overruns and the late delivery of the floating LNG vessel needed to realise BP’s vision.

Revised capital expenditure forecast

As a result of these recent developments, Senegal looks set to enter 2024 still waiting for its domestic oil & gas industry to gain

African mining news

CAPEX LEVELS WILL RISE MORE O R L E S S S T E A D I LY F R O M 2 0 2 3 T O 2029 BEFORE LEVELLING OUT IN THE LAST YEAR OF THE DECADE. the momentum it needs to take off. In a somewhat similar fashion, Africa’s oil & gas industry looked a bit flat as it reached the final quarter of 2023. That is, as AEC details in its newly released 2024 African Energy Outlook, capital expenditure (CAPEX) on upstream projects is still rising, but it is on a relatively slow upward trajectory— and it is moving up more slowly than we had predicted in 2022 because of changes in the timeline of certain African upstream projects. That’s the bad news. There is good news, though.

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For one thing, we do not expect cumulative CAPEX to go down in the long term, even if it starts out by rising more slowly. We do expect the rate of increase to be lower than previously projected during the 2023–2026 period, but we are no longer expecting CAPEX to drop from 2026 to 2027 before resuming its climb until the end of the decade. Instead, we are forecasting that CAPEX levels will rise more or less steadily from 2023 to 2029 before levelling out in the last year of the decade. We are also projecting that overall potential cumulative CAPEX in Africa’s upstream sector

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forecast

will approach US$450 billion, and that number is unchanged from the 2022 forecast.

specific goals (such as, say, netzero carbon dioxide emissions by 2050), actual spending could drop to an even local share of total spending coming from African upstream projects by the end of the decade. This would, of course, have a significant negative impact on the African oil & gas industry.

Actual spending falls in line with ‘mean’ climate scenario Lower CAPEX would be detrimental for African oil & gas There are likely to be some shifts within that figure of US$450 billion, though. The AEC is expecting the share of actual spending—that is, all of the spending coming from upstream projects with breakeven prices less than forecasted brent crude prices—in total spending to average about 60% over the 2024–2030 period. But the figure will not remain constant. Instead, it will drop from around 95% in 2024 to less than 40% in 2030. What’s more, this drop will make actual spending levels fall fairly closely into line with estimated spending levels under a 'mean' climate change scenario that limits global temperature shifts to +2°C. The implication of this is that if efforts are made to limit global temperature shifts even further (say, to +1.5°C) or to achieve

African mining news

And by extension, the drop in spending would have a significant negative impact on many African countries and African people. In an economic sense, it would complicate efforts to attract investment from companies that have the funding, the technology and the experience needed to create jobs and provide African workers with new skills and training. It would frustrate efforts to establish and expand local businesses that can support oil and gas operations. It would deny national and regional African governments new sources of tax revenue.

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And in a socio-economic sense, it would leave hundreds of millions of Africans in a position of continued dependence on traditional biomass fuels—wood, charcoal and/or dung—while they wait for renewable energy solutions that are not yet available in mass quantities or in remote communities. This is an unacceptable health hazard, given the pollution and dangerous emissions that such fuels are known to produce. It is also avoidable, given that multiple African countries possess natural gas that could be used to fire power plants to produce electricity for local markets or processed into liquid petroleum gas (cooking gas) for local consumption. Despite these concerns, though, it is too early for pessimism about African oil & gas CAPEX. There are encouraging signs, such as the steady number of high-impact wells scheduled for drilling through the end of 2024 and the recovery of rig demand to pre-COVID levels. To learn more, download the 2024 African Energy Outlook at t.ly/ GnqIq. NJ Ayuk Executive Chairperson African Energy Chamber energychamber.org

in focus

I N T E RVEN TIO N R E QUIRED Senegal’s small-scale gold miners still use poisonous mercury: how to reduce the harm

African mining news

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in focus

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African mining news

in focus

“

Do not fish in these waters.” “Contains high levels of mercury.” These warnings are shown at thousands of lakes and rivers globally, as well as on numerous fish products. But eating mercury-laden fish is not the only source of mercury exposure. Even more dangerous is the inhalation of mercury vapours, which are released as mercury is used in the extraction of another trace element: gold. Miners inhaling mercury vapour can experience the same toxic effects as people eating mercury-laden food: limb tremors, blurred vision, loss of limb functionality, and even death. Globally, between 10 million and 19 million people work in artisanal and small-scale gold mining (t.ly/ZAcCb).

I have studied the impact of mercury on the environment globally for the past eight years. My recent research (t.ly/8zx_Z) has found an effective way to reduce mercury emissions from artisanal and small-scale gold mining in Senegal through education and equipment distribution. We conducted educational sessions on the dangers of mercury and on the use of equipment to reduce mercury emissions and exposure. The sessions were held by trusted community members, in local languages, using simple graphics. Communities also received equipment: retorts (mercurycapture devices) produced by local metalworkers using locally available materials. They made

the items available for purchase in local stores.

Mercury use in artisanal and small-scale gold mining

Artisanal and small-scale gold mining produces about 20% of all the gold sold on the world market (t.ly/PLAv5). The process is far from environmentally friendly. Large areas of forest are cleared to make way for mining equipment. Soil or sediment is extracted from pits or rivers. And then mercury is mixed into the sediment. Mercury is used in the extraction of gold because it is cheap,

MERCURY IS USED IN THE EXTRACTION OF GOLD BECAUSE IT IS CHEAP, EASY TO OBTAIN, AND EFFICIENT AT SEPARATING GOLD.

African mining news

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in focus

easy to obtain, and efficient at separating gold. It forms a coating around the gold, creating a mercury-gold amalgam. This amalgam is then burnt, leaving behind gold that can be sold for large profits. In the process, huge amounts of mercury are released into the atmosphere. Artisanal and small-scale gold mining is the largest source of mercury pollution globally, emitting more mercury than coal combustion (t.ly/_GfOv). It occurs in over 70 countries, most of them in sub-Saharan Africa, southeast Asia and South America (t.ly/ ktKVy). The United Nations Environmental Programme’s Minamata Convention on Mercury (minamataconvention.org) went into effect in 2017 to reduce the production, trade and use of mercury globally. Article 7 specifically deals with mercury in artisanal and small-scale gold mining.

Strategies to reduce mercury emissions from gold mining

Despite the convention, there has been little success in reducing mercury use and emissions from artisanal and small-scale gold mining. Many researchers and organisations have sought to train people about the dangers of mercury, or have introduced mercury-free technologies. These interventions sometimes succeed in reducing mercury use at first, but new practices do not always continue. Public health interventions teach us that knowledge does not always lead to behaviour change. For example, we know that smoking is dangerous, yet many people continue to smoke.

African mining news

And mercury-free technologies are often expensive, produced with materials that cannot be sourced locally, and highly technical.

Intervention in Senegal

In a recent study (t.ly/8zx_Z), I worked with collaborators in Senegal to reduce the emissions of mercury from artisanal and smallscale gold mining. Together, we paired an educational campaign with equipment distribution over the course of six months. Through surveys before and after the intervention, we found it was highly successful in increasing knowledge about the dangers of mercury and increasing the use of improved technologies. Trusted community members conducted educational sessions in local languages. Visuals were created with feedback from local Senegalese collaborators to ensure cultural appropriateness. Local people were trained to present the information to miners and community members and to answer questions. They were paid for attending this training. Trainers then led formal sessions to discuss these topics. Additional informal educational sessions happened over tea in their communities in local languages. The sessions emphasised the dangers of mercury and advised on the use of retorts and personal protective equipment to reduce mercury emissions and exposure. Village chiefs, imams, elected officials, miners, vendors, women’s groups and youth were all targeted for the educational sessions. Information was also spread through local radio, an effective technique for reaching a wider audience in Senegal. Equipment was distributed to local stores, making the items

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available for purchase. The goal was to increase access to equipment that can reduce mercury exposure, while still requiring people to pay for it, thereby reducing reliance on outside organisations for continuity of the programme. Equipment distribution focused on retorts, devices that act like a lid on a pot. In traditional methods over open flames, the mercurygold amalgam releases mercury directly into the air. In a retort, the mercury that is released condenses on the retort lid and is passed down a tube to a bucket of water, where it can be collected. This reduces the emission of mercury into the air and the mercury can be reused. Retorts were made using locally available equipment by a local metal worker. The design attended to the needs of miners and incorporated their feedback. The first set of equipment was provided free of charge to stores, and they purchased equipment restock with the profits from selling the first set. Retorts were sold for 15 000 CFA (about US$24.70).

Implications of this intervention

Artisanal gold mining is an important livelihood for many people in Senegal and globally (t.ly/MAkKq). Given the dangers of mercury toxicity, it is necessary to reduce the high exposure of miners and their communities. Our study provides one mechanism to achieve this. It has seen a positive reaction, suggesting that similar interventions could be effective in other countries with artisanal and small-scale gold mining. Jacqueline Gerson Assistant Professor: Earth and Environmental Sciences Michigan State University

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opinion

DIGGING FOR SOLUTIONS the legacy of migrant labour, and the challenges of illegal mining and legalising artisanal mining 52

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opinion

outh Africa’s mining industry, gold mining in particular, has over a century developed into a major source of this country’s economy—and thus the southern African sub-region has attracted young and strong migrant labourers for economic opportunities over decades. These migrant labourers provided much-needed cheap labour against the South African men who were defiant to exploitation by capitalists to maximise profits by paying pittance for arduous work in dangerous underground working conditions. The migrant labour system was used for cheap labour in mining towns and cities to entrench apartheid by sourcing workers from rural and neighbouring countries to counteract local workers who fought for living wages. In time, this became synonymous with ethnic violence and supported the apartheid regime through divide-and-rule ideology. The mining companies, owned mostly by white foreigners, derived massive wealth from mining gold and diamonds among other minerals, while leaving surrounding communities living in squalor. The discovery of diamonds and gold on surface rocks meant that minerals were easily accessible from outcrops, thus it attracted diggers in large numbers for employment and aspiring small entrepreneurs for business opportunities from these mining activities. From the start of commercial mining, black diggers were barred by the government regime from gaining advantage from these discoveries through legislation designed to prevent them acquiring digging (mining) permits. Over decades, minerals became inaccessible from the surface, thereby requiring intensive capital

opinion

to develop shafts to access underground mineralisation— enabling the formation of a few large conglomerates with financial muscle to access, and thus monopolise, the underground resources in the South African (gold, in particular) mining industry. The advent of democracy in 1994 introduced strict regulatory requirements for the safety of miners through the Mine Health and Safety Act, and the Minerals and Petroleum Resources Development Act (MPRDA) to enforce mine closures, as well as transformational objectives for mine community empowerment of particularly historically disadvantaged South Africans. Though arguably so, certain industry players claim these developments led to overregulation of the industry, resulting in the unprecedented closure of mines, particularly in the gold sector—thereby leaving surrounding communities with mass unemployment due to retrenchments and environmental liabilities leading to past and current social challenges. Mining has created billionaire magnates from the natural resources; in turn, this motivated both gold mafias/syndicates and young men to find ways to access the remnants mineralisation as a lucrative business to derive economic opportunities to escape unemployment and poverty. These men designed creative ways to access the remnant resources left deep underground despite the dangers associated with unsafe working conditions—due to lack of support and ventilation—in pursuit of economic survival. The promulgation of the MPRDA in 2002 made provision for aspiring small-scale miners to gain mining permits through section 27 of the said act to formalise their mining operations; however, due to strict requirements for obtaining such

African mining news

mining licences/permits, the country has experienced a rapid rise in illegal miners circumventing the application process, citing that the process is cumbersome with multiple barriers for povertystricken and unemployed individuals living nearby closed mines. Media reports that a vast number of the men arrested in these illicit mining activities are illegal migrants from neighbouring southern African countries without the requisite permits to work in South Africa. The Minerals Council South Africa states that illegal mining costs this country over R7 billion annually from sophisticated illicit cash flows and mostly illegitimate mining operations. The fact that these miners are mostly illegal migrants without the requisite documentation to work in this country means that curbing this scourge needs to start with effective border management to control entry points. Recent videos circulating on social media indicate they are heavily armed with unlicensed armaments, terrorising communities and sabotaging policing efforts to eradicate their illegal mining activities. Infighting among rival gangs often spills over to surrounding innocent communities. Deadly shootings witnessed in Gauteng and Free State, among others, suggest that authorities are unable to manage the scourge of illegal mining in the country. Initially, illegal miners used old mine shafts and opencast voids left unrehabilitated or unattended to access residual gold reserves and mostly pillars left underground for stabilising underground workings. The illegal mining scourge, with minimal regulatory intervention, has grown to such a level where these illegal miners have now managed to access operating mines alongside

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legitimate workers, posing safety and security concerns to mine employees working underground— with reports of underground shootings between mine security officials and illegal miners. The fact that the economy is not growing at an expected pace to create meaningful employment opportunities provides an opportunity for creative, mostly illegal means for the destitute to survive economically. South Africa is viewed as the economic hub of Africa, with expectation for economic opportunities. Lack of clarity on the authorities’ responsibility to eradicate illegal mining between the Department of Mineral Resources & Energy (DMRE) and the South African Police Service (SAPS) remains a major concern, considering that DMRE officials are not trained to deal with illegal foreigners and guns, while SAPS officials do not fully understand mining legislations.

Is formalising artisanalscale mining a sustainable solution?

Research from various countries experiencing similar challenges indicates that artisanal mining can provide opportunities for individuals looking for economic gains in areas with easily accessible minerals from outcrop mineralisation. As a result, the DMRE has conducted research in countries with formalised artisanal mining permits, which has led to the development of the Artisanal Scale Mining Policy in response to pleas from the public to provide economic opportunities for those interested in mining remnants left by closed mines.

Locally Manufactured in South Africa

opinion

This option can only succeed if there is effective control over individuals applying for such permits, and gun and armament control to ensure everyone’s safety; and operating with transparency, paired with the police’s capacity to intervene in case of conflicts. A major challenge is that remnant reserves in South African gold mines have been exhausted from surface outcrops, currently concentrated in deep underground pockets not safe for humans due to accumulation of toxic gases, hence the regulator does not allow entry. Furthermore, the DMRE does not have capacity to enforce compliance with regulatory requirements in underground areas deemed unsafe, making it a no-go for human beings in terms of prevailing health and safety legislation. Public and investor sentiments blame the decline of the mining industry on the government, particularly the DMRE, for poor administration and regulation that has resulted in failure to attract foreign investment that would effectively grow the formal and informal economies in creating much-needed employment through the country’s mineral endowment. Artisanal mining permits can possibly be a viable option for digging minerals accessible from surface outcrops; unfortunately, these residual minerals are depleted through extensive mining over the years. The noise often heard by communities, of people working underground, suggests the illegal miners are breaking the pillars left in-situ to support underground tunnels, which poses a substantial risk of massive subsidence of surface structures from the collapse of these shallow tunnels. Formalising artisanal mining as proposed by various individuals

African mining news

THE PROPOSED ARTISANAL MINING POLICY WILL NEED A PROACTIVE APPROACH THAT INCLUDES ALL RELEVANT AUTHORITIES AND ENFORCEMENT AGENCIES

and community associations will not bring the envisaged calm and prosperity to communities living under terror and unsustainable economic growth unless other driving factors of the economic value chain are put in place, such as strict border control and strict gun laws to ensure only citizens and legitimate foreigners benefit from the artisanal mining opportunities. Mining captains argue that Section 27 of the MPRDA provides for formalised small-scale mining, therefore they see no need for further degrading this provision to artisanal level, which will further disrupt the mining sector due to lack of capacity from the government to effectively regulate and enforce compliance.

Proposed solutions

Notwithstanding the government’s intervention through the National Co-ordination and

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Strategic Management Team— which includes the DMRE, SAPS (including intelligence services) and Department of Home Affairs (DHA)—this is clearly a reactive initiative, hence illegal mining continues unabated. The proposed artisanal mining policy will need a proactive approach that includes all relevant authorities and enforcement agencies, from the permitting stage through to the implementation stage, to successfully benefit South Africans while eradicating illegal mining. It is therefore recommended that all relevant departments including SAPS, DHA and law enforcement agencies (such as the Johannesburg Metropolitan Police Department and Ekurhuleni Metropolitan Municipality Police Department), and others at all government levels form part of committees that decide on the granting of artisanal mining permits within their jurisdictions to ensure all enforcement authorities are well trained and understand the terms and conditions of these artisanal mining permits to avoid reactive blame shifting. A committee led by the DMRE as a competent authority including the above-mentioned departments would be more effective and give responsibilities to each participating authority in the issuing, monitoring and enforcement of the Artisanal Policy, with specific condition giving South Africans the priority followed by foreigners with legal documentations to invest in this country. This will benefit South Africans without discriminating against foreign investment at an artisanal scale. Sunday Mabaso Founder Vahlengwe Mining Advisory and Consulting vahlengweadvisory.co.za

new developments

FROM SEA 58

African mining news

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new developments

TO SHORE Sub-Saharan Africa: Top 5 service contracts awarded to European companies over the past 12-month period Issue 12

African mining news

new developments

ew offshore projects in Ivory Coast, Angola and the Republic of the Congo (ROC) have created lucrative opportunities for European service providers that offer the latest technologies in drilling, engineering and subsea services. As a result, large-scale contracts have been awarded in the past 12 months to support oil and gas exploration activities across the continent. Below are the top five service contracts by value awarded to European companies in subSaharan Africa in 2023:

Saipem, Ivory Coast: Multimilliondollar contract

In September last year, Italian multinational Saipem was awarded a $400-million contract (t.ly/3zaaU) for subsea umbilicals, risers and flowlines, as part of the Baleine Phase 2 Project operated by Eni and Petroci offshore Ivory Coast. The contract involves the engineering, procurement, construction and installation of approximately 20 kilometres

African mining news

of rigid lines, 10km of flexible risers and jumpers, and 15km of umbilicals. Saipem's modern vessels, including the Deep Value Driller, will conduct the installation works in 2024. The contract follows Saipem's contributions to Baleine Phase 1, which utilised the Saipem 10000 and Saipem 12000 vessels for drilling activities and fast-track mode contracts.

TechnipFMC, Angola: $75–$250 million

French service company TechnipFMC secured a significant contract in February 2023 for the Girassol Life Extension Project (t.ly/ v0n-F), led by TotalEnergies and its Block 17 partners. The development marks the first subsea life extension project in the region. Under the contract, TechnipFMC will be responsible for the engineering, procurement and supply of flexible pipes and connectors for the offshore Girassol field. The flexible pipes will extend the life of the field by bypassing rigid pipe bundles previously installed in 2001.

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TechnipFMC, Angola: $75–$250 million

TechnipFMC bagged a second Angola contract in June with Azule Energy for subsea production systems in the Block 18 infills development offshore (t.ly/ a1ZHA). This marks TechnipFMC's first subsea production systems contract with Azule Energy, following a previous announcement for a flexible pipe supply contract. The project involves reconfiguring the existing field layout to accommodate new equipment supporting Azule's production increase plan. TechnipFMC will provide subsea trees, a manifold, subsea distribution equipment, topside controls, jumpers, flowlines and umbilicals.

Saipem, CongoBrazzaville: $100 million

Last August, Saipem secured a $100-million contract with

M84 GEOTECH: SAFETY FIRST M84 Geotech is a 100% black-owned South African company offering geohazards mitigation and rope access solutions for African’s open-pit operations. Our speciality is in the installation and supply of rockfall protection, rockfall barriers, rock scaling, slope stabilisation and slope monitors solutions. We are one of the few contractors accredited to install slope stabilisation and rockfall mitigation systems for open-pit mines. We are an accredited member of The Institute for Work at Heights. We have the right equipment, as well as trained and experienced personnel to carry out any slope support or rock-scaling project. With us, it doesn’t matter how deep the pit is or how rocky the slope is—we will always find the safest way to support or clean any open-pit high wall. We are in the business of safety, more specifically in the mining space. Our job is to ensure mining can take place without miners or contractors being worried about their safety from any rockfall hazard. As a company, we take the safety of our technicians and that of our clients very seriously. We use only the best rope access kit for the safety of our technicians and we have the best and most robust slope support solutions to guarantee safety for open-cast operations. The TECCO system we use for slope protection and stabilisation is well tested to protect open cast from any disintegrated stones and blocks or any loose rocks from breaking out. Most mines use the TECCO system because it has proven to be the most robust and easy to install on high walls. Depending on the requirements and specifications of the project, we can either use a passive system such as a draped system to control the movement of the loose rocks, or we can use an active system such as a pinned mesh, which is designed to retain masses and prevent landslide or erosion. Draped nets are also used for controlled rockfall protection as a temporary solution.

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new developments

Eni Congo (t.ly/Ar2Rh) for the conversion of the Scarabeo 5 semi-submersible drilling unit into a floating production unit (FPU), as part of the Congo LNG Project. The FPU will function as a semisubmersible production platform, separating gas from liquids and boosting the gas to supply a nearby floating LNG unit. The contract covers engineering, procurement, construction, transportation and commissioning of the FPU, with offshore installation off the coast of ROC scheduled for completion by Q4 2025. The Congo LNG Project will have an LNG production capacity of three million tonnes per year.

Petrofac, Ivory Coast: Multimilliondollar contract

International energy services company Petrofac secured a multimillion-dollar integrated services contract in July 2023 with CNR International (t.ly/Fxh7Z) for the floating production storage and offloading (FPSO) vessel Espoir Ivoirien offshore Ivory Coast. The three-year deal involves Petrofac's Asset Solutions business delivering integrated services for the FPSO, which was sold by BW Offshore to CNR in June for $20 million. Approximately 110 personnel, both on- and offshore, will transition from BW Offshore to Petrofac as part of the agreement. The move enhances Petrofac's presence in Africa, aligning with its expanding portfolio of service contracts across the continent. Energy Capital & Power energycapitalpower.com

African mining news

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critical minerals

TIME TO END THE MINING ONLY MINDSET How Africa can benefit from its critical minerals bounty

o meet their green agendas, the European Union, United States and China are engaged in the modern-day equivalent of a gold rush. This time, though, fortune seekers are not panning for shiny nuggets in Canada, America or Australia. Instead, all eyes are on the critical minerals of Africa: cobalt, graphite, lithium and others—raw materials essential to the production of clean technology, including electric

African mining news

vehicles (EVs). To say that Africa is generously endowed in this regard seems almost like an understatement. Africa holds more than half of the world’s reserves of cobalt, 46% of its manganese and 21% of its graphite, all used in EV batteries; and about a quarter of its bauxite, which is required for solar photovoltaic technologies. Beyond reserves, mining and production are already in full swing in a number of countries: Nearly 70% of all cobalt produced

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critical minerals

globally comes from the Democratic Republic of Congo (DRC) and that country is tied with Peru as number two behind Chile in the mining of copper, a key component in electric wiring. Lithium, which has applications in everything from EV batteries to the lubricants that help wind turbines spin, is also being mined in the DRC, as well as in Zimbabwe and Namibia, while Ghana and Mali have lithium deposits that are not being exploited yet. Namibia is also the world’s second-largest producer of uranium, which is used in nuclear energy. Given the urgency of the energy transition, it is no surprise that the market for critical minerals and rare earth elements (a group of 17 light and heavy metals and alloys integral to the performance and efficiency of motors and turbines; there are 100 rare earth element deposit sites in Africa) is strong and growing. For example, the International Energy Agency (IEA) predicts that as the world moves away from fossil fuels, manufacturers of clean energy technologies will require exponentially more critical minerals than they do today. Specifically, the IEA says that, by 2040, demand for lithium will be more than 40 times what it is now; over the same period, the need for graphite and cobalt will be 20 to 25 times higher (shorturl.at/ekzZ1). As far as copper is concerned, the expected expansion of the electric grid over the next 17 years means demand will likely double. In short, opportunity abounds for Africa, especially considering the shortage of critical minerals nearly everywhere else—if we can only harness it. If we are going to be honest, we must admit that Africa does not always have the best track record when it comes to turning resource wealth into actual wealth for our people. But I believe we can break away from that pattern.

African mining news

GIVEN THE URGENCY OF THE ENERGY TRANSITION, IT IS NO SURPRISE THAT THE MARKET FOR CRITICAL MINERALS AND RARE EARTH ELEMENTS IS STRONG AND GROWING.

Out of our hands

For too long, for lack of will and domestic policy, we have allowed our raw materials, including oil and natural gas, to be exported— meaning we have had no hand in the processes that happen next or the sale of finished goods. As a result, we have missed out on the job creation, industrialisation and economic diversification that downstream development represents, not to mention the money that comes with it: It is just an economic fact of life that processed materials command a premium price compared to raw materials. Consider the DRC’s massive cobalt and copper mine, Tenke Fungurume, which has been in production since 2009 and is projected to have 32 years’ worth of reserves. China Molybdenum Co. (CMOC), the world’s largest cobalt producer, owns 80% of the mine (shorturl.at/abcB4), with Gécamines (shorturl.at/jDSX5), the DCR’s state-owned mining firm, holding the remaining 20% stake. As if controlling the mine’s

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output—some 125 387 tonnes of copper and 10 465 tonnes of cobalt in the first half of 2022 alone—was not enough, CMOC also controls 72% of the refining capacity for the mine’s output. But CMOC does not refine those minerals in Africa; instead, it transports unprocessed minerals to ports in Durban, South Africa and Dar-es-Salaam, Tanzania for overseas export. That is a lot of potential revenue—a lot of potential, period— that we have let leave our shores. To take full advantage of the critical minerals beneath our feet, we must break free from our 'mining-only' mindset. The value chain does not have to stop with extraction. Yes, I understand the argument that minerals should be manufactured into products closer to where they will be used, and that Africa lacks, for example, both the manufacturing capacity to turn cobalt into EV batteries, and the market for EV cars. (Young African entrepreneurs have taken aim at this deficit, as you will read in a moment.)

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critical minerals

But with sufficient investment and collaboration, we can build capabilities and catalyse the market. The good news is that we are seeing progress in that direction. In April 2022, the DRC and Zambia signed a co-operation agreement (shorturl.at/hipxA) to make EV batteries in Katanga province, the mineral-rich region where Tenke Fungurume is located. That was followed in December by the United States entering into a trilateral memorandum of understanding with those countries (shorturl.at/ cflK0) to develop a complete value chain around EV batteries, “from extraction to the assembly line”. To move the deal along, last year the African Export-Import Bank (Afreximbank) and the United Nations Economic Commission for Africa (UNECA) helped the DRC and Zambia form special economic zones for the production of battery precursors, batteries and EVs (bit.ly/3tGVi29). According to the UN, “the Afreximbank (www.afreximbank. com) and UNECA (www.uneca. org) will play a central facilitating role, acting as the project’s financial and technical partners respectively. The two institutions will lead the establishment of an operating company in consortium with investors (both public and private) from DRC and Zambia, as well as international investors such as Afreximbank’s impact fund subsidiary, the Fund for Export Development in Africa (www.fedagroup.org).” Both the DRC and Zambia, along with Mozambique, Namibia and Tanzania, attended the Minerals Security Partnership (MSP) meeting (bit.ly/48KIvKR) in October last year to discuss how to improve mineral supply chains and ensure countries can benefit economically from their critical mineral resources. The US, United Kingdom, Australia, Canada,

African mining news

France and Japan were among the MSP partners who participated in the event. The goals of the MSP are to attract public and private investment, increase transparency and promote environmental, social and governance standards in critical mineral supply chains. In addition to Toyota setting up shop in Durban, South Africa to assemble hybrid EVs from 'semi-knocked down' imported vehicles, and Uganda’s Kiira Motors (www.kiiramotors.com) converting internal combustion engine-powered buses into EVs, a small industry of EV motorcycle manufacturers has cropped up in Rwanda, Nigeria, Uganda, Kenya and South Africa—potentially accelerating the growth of a much-needed domestic market and circumventing the need for the expensive, grid-scale charging infrastructure that four-wheeled vehicles require. These companies are building EV motorcycles from the ground up and subbing EV motors for conventional ones in existing bikes. As Dr Marit Kitaw, interim director of the African Minerals Development Centre (AMDC), notes, this is evidence that “the continent’s technical and manufacturing capabilities can be scaled up with supportive policies, skill-building programmes, infrastructure development and a favourable investment climate.” The AMDC (au.int/en/amdc)— which the African Union established in 2013—has developed the African Green Minerals Strategy (AGMS) to help African nations make the most of their extractive resources, participate more fully, and do it sustainably. According to Dr Kitaw, the objectives of the AGMS are to accelerate local manufacturing of inputs for mining and processing strategic green minerals; build more processing facilities on the continent, which would enable African countries to capture

Issue 12

a greater share of the value chain; and expand Africa’s technical expertise and to increase resources for research, development and innovation. This is what progress looks like.

Work to be done

Still, obstacles remain. And we have to proceed with caution. While agreements like those between DRC and Zambia are a start, our nations must collaborate more closely, especially when it comes to issues like establishing a common external tariff. That would serve to avoid a patchwork approach to imports and make it easier for African countries to do business across borders. We have to build up our energy infrastructure so we can support processing and refining. We have to ensure our governments are stable and our streets are not pocked with violence, which turn potential investors away in droves. We must avoid the human rights violations that have plagued other extractive industries in Africa, ensuring workplaces are safe; indigenous people are not at risk; workers’ living conditions meet universally accepted standards; the physical environment is protected; and children are not put to work when they should be in school. As the world pivots to a lowcarbon future, Africa has a chance to change where we sit on the critical minerals value chain and, in turn, to change our destiny. But there is tremendous work to be done, and it has to be done right. With the right partners and support, within our continent and worldwide, it will be. NJ Ayuk Executive Chairperson African Energy Chamber energychamber.org

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critical minerals

THE WAY FORWARD How recycling could solve the shortage of minerals essential to clean energy

African mining news

Issue 12

critical minerals

hat do silver, silicon and gallium have in common? These expensive raw materials are essential components of our various solar energy technologies. What about neodymium, praseodymium and dysprosium? These rare earth metals are used to build the powerful magnets in wind turbines. Keeping our planet liveable requires accelerated clean energy transitions by governments (shorturl.at/fjwRT): global carbon emissions must halve by 2030 and achieve netzero by 2050 (shorturl.at/yBCE4). But a more ambitious clean energy transition requires more of the metals and minerals used to build clean energy technologies. As the global energy sector shifts from fossil fuels to clean energy, the demand of precious metals— known as critical minerals—is increasing. A striking example is lithium, a metal used in electric vehicle (EV) batteries. Between 2018 and 2022, the demand for lithium increased by 25% per year (shorturl.at/dfpxC). Under a netzero scenario, lithium demand by 2040 could be over 40 times what it was in 2020 (shorturl.at/bdsD0).

Supply and demand

The current challenge lies in a supply and demand mismatch. The projected demand for critical minerals exceeds the available supply. Basic principles of economics dictate higher prices for these minerals. In addition, critical minerals have a geographically concentrated supply. These

critical minerals

metals are only extracted from a handful of countries and are overwhelmingly processed in China. China, for example, extracts 60% and processes 90% of all rare earth elements (shorturl.at/ bG147). In comparison, the top oil-producing country—the United States—accounts for only 18% of the extraction and 20% of the processing of the whole industry (t.ly/VxyTh). The geographical concentration may result in additional supply constraints. Indonesia, the world’s first nickel producer, has progressively banned the export of nickel ore overseas in an attempt to strengthen domestic processing (t.ly/y6ZOi). The lack of geographical diversity in supply can increase price volatility. Lithium prices rose more than 400% in 2022, before dropping again by 65% in 2023 (t.ly/IThUI). Copper prices soared in Peru following social unrest and mine blockades (t.ly/OSxOc). China, which controls 98% of the gallium supply, created a 40% spike in 2023 on gallium prices by setting severe restriction on exports due to “national security reasons” (t.ly/XwUo0). If supply constraints continue, the prices of critical minerals could become too high. Installing clean energy could become too expensive, and governments may find it hard to reach their clean energy targets. The demand and supply balance must be restored by one of two ways: either by decreasing the demand for critical materials or increasing their supply.

Restoring balance

The most obvious way to restore the balance between supply and demand—more mining—is tricky. Mining is environmentally destructive and damages

African mining news

DECOMMISSIONED SOLAR PANELS MAY NO LONGER PRODUCE ENERGY, BUT CAN BE A VALUABLE S O U R C E O F S I LVE R O R S I L I CO N .

The current production rates of critical metals are likely to be inadequate to satisfy future demand. (International Monetary Fund)

ecosystems and communities. Plans for opening new mines in France, Serbia and Portugal have seen massive social opposition, leaving their future uncertain.

Share of top producing countries in the extraction of selected minerals and fossil fuels. (IEA)

Opening a new mine can take more than 15 years on average, so projects started today may arrive too late. While some capacity can be built quicker by reopening old mines, and some projects are already underway, supply imbalances are expected to be inevitable by 2030.

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critical minerals

Beyond mining, two alternative practical approaches exist. The first is to reduce the demand for critical minerals by clean energy technologies. With innovation and research and development, clean energy products can be redesigned to use less material in each generation. The silver content in solar cells dropped by 80% in one decade (t.ly/zrDjx). Likewise, the cathodes in new EV batteries contain up to six times less cobalt than older models (t.ly/PQbJi). The second alternative is to increase the supply of critical minerals by recovering them from older and used clean technology products via advanced recycling. Decommissioned solar panels may no longer produce energy, but can be a valuable source of silver or silicon. Our past research has shown that discarded solar panels could outweigh new installations by the next decade (t.ly/yJWDE) as installers seek to replace older panels with newer, more efficient ones (t.ly/ZXokO). By recovering critical minerals from this waste in a process known as urban mining (t.ly/x1E-K), we could cover the demand for the materials needed for future energy installations.

Recycling is the way forward

Our recent research with our colleague Luk Van Wassenhove (t.ly/rSH53) compares the economic consequences of these two alternative approaches. If the scarcity of critical minerals is not extreme, reducing the critical material content of clean energy products would be the way to go. However, unintended consequences can be expected akin to the rebound effect or Jevon’s paradox (t.ly/VWUWj): By improving the efficiency of usage

African mining news

Share of top producing countries in total processing of selected minerals and fossil fuels. (IEA)

of critical minerals, producers can end up consuming more of it. As clean energy products use less critical material, their improved profitability could increase production even more. As a result, decreasing the material usage per product will not necessarily lead to a decrease in critical material demand overall. In contrast, our research suggests that recycling decommissioned products is not subject to such a rebound effect. A steady stream of recycled materials from end-of-life products protects producers from volatile commodity prices and better facilitates the critical energy transition. Setting up a recycling ecosystem requires greater effort than marginally changing a product’s design. Firms need a cost-efficient reverse logistics system, recycling plants and infrastructure to get enough end-of-use products back and to process them. Sizeable initial capital investments will take time to recover, and require firms and policymakers to adopt a longterm mindset. But there is room for optimism.

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The startup ROSI Solar opened its first recycling plant in 2023, making France a pioneer in recovering high-purity silicon, silver and copper from end-of-use solar panels (t.ly/bm9g1). Likewise, the United States– based SOLARCYCLE (www. solarcycle.us) can recycle 95% of valuable materials in solar panels. Many electric vehicle makers like Tesla, Renault and Nissan have started projects to recycle batteries and ensure a riskless cobalt, nickel and lithium supply (t.ly/dH0FV). Recycling may indeed be the path to affordable clean energy. Serasu Duran Assistant Professor Operations and Supply Chain Management Haskayne School of Business University of Calgary Atalay Atasu Professor Technology and Operations Management Clara Carrera PhD Candidate: Technology and Operations Management INSEAD

oil

IN THE PIPELINE Uganda will soon be exporting oil; an energy economist outlines 3 keys to success

African mining news

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oil

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African mining news

oil

ganda entered into agreements in 2012 with two foreign oil entities to exploit its oil resources: Total Energies holds 56.67% of the joint venture partnership and China National Oil Offshore Company (CNOOC) has 28.33%. Through Uganda National Oil Company, the government owns the remaining 15% (shorturl.at/ couRW). Production is due to start in 2025 (shorturl.at/aKRUY). As part of the production-sharing agreement (shorturl.at/kAOSZ), the production licences are valid for 25 years upon extracting the first oil. To secure the best possible outcome for Uganda, the government needs to focus on three issues: the productionsharing agreement, completion of the development stage, and export timing. My co-authors and I identified these areas of crucial concern in a paper (shorturl.at/kln89) based on my PhD thesis: “Four essays on oil price uncertainty, optimal investment strategies and cost

African mining news

transmission of an oil price shock” (shorturl.at/dhKY7).

The context

Uganda joined the list of prospective oil-producing countries in 2006, with six billion barrels of proven oil reserves in the Albertine Graben, part of the western arm of the east African rift valley. Out of this discovery, 1.4 billion barrels are economically viable for extraction. The peak production is projected to be between 200 000 and 250 000 barrels of oil per day (bit. ly/3tJtXMD), and the extraction is expected to last 25 years. The cost of extracting oil over this period will amount to about US$19 billion in capital expenditures and operating expenses. Before this production stage, the development of infrastructure (bit.ly/48gpyzT), operation facilities and production wells will cost around US$12.5 billion to US$15 billion. The annual revenues from oil production are expected to be

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US$1.5 billion to US$2 billion. The oil revenues have the potential to stimulate Uganda’s economic growth and real household incomes. But, like many resource-rich sub-Saharan countries, Uganda has limited capacity to solely finance and operate immense complex oil projects (bit. ly/4aFMjie). Hence, the current production-sharing agreement.

Productionsharing agreement

The interests and strategic investment decisions of foreign companies are bound to be in conflict with Uganda’s. That is why they need an effective agreement. Uganda’s final investment decision was initially expected in 2015, but was delayed for another seven years (bit.ly/41LUXb7). The reasons included tax disputes, negotiations among contract partners, the compensation

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CTICC, Cape Town, South Africa

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oil

and relocation of communities affected by the oil project, and oil price volatility. An effective production-sharing agreement is one that maximises returns for both the government and the companies. In my PhD thesis, I examined the implications of the agreement, given the risk factors that influence the project. The agreement sets out how the government and the foreign companies will share risks and revenues throughout the project’s lifespan. The foreign companies carry the cost of exploration, development of the oil fields and crude oil pipeline, and oil production. The government supplies other infrastructure for the oil project, including roads and the Hoima International Airport. The foreign companies are allowed to claim up to 60% of their net field revenues as cost. Whatever remains after royalties and cost recovery is the 'profit oil' shared between the foreign companies and the government. The foreign companies pay royalties to the government based on the daily production. They also pay corporate income tax on their share of the profit oil. So Uganda earns revenues from royalties, profit oil and income tax.

The roadmap to the first oil production

Being a landlocked country, Uganda has to get its crude oil to a regional seaport. It needs a pipeline through Tanzania or Kenya. In February 2022, Total Energies and CNOOC signed the decision to develop the oil fields and construct the East Africa crude oil export pipeline (bit.ly/3S7osRo). The pipeline, costing an estimated

African mining news

US$3.5 billion to US$5 billion, is scheduled to be completed in time for oil production in 2025. It will take the oil to the port of Tanga in Tanzania. A pipeline company with shareholding from the Uganda National Oil Company (15%), the Tanzania Petroleum Development Corporation (15%), Total Energies (62%) and CNOOC (8%) operates the East African pipeline project.

Exports timing

It is important that Uganda’s oil gets to the global market at profitable terms. The slump in oil prices between 2014 and 2016 resulted in the foreign companies drastically trimming their local workforce and cutting their investment budgets by 20% to 30%. The drop in oil prices due to the COVID-19 pandemic and the ensuing lockdowns in Uganda also created uncertainty about when the oil would be ready to sell. The uncertainties about the completion of the development stage and crude oil price volatility still prevail. This has raised concerns about whether the project can generate returns for the government and foreign companies. In my PhD thesis, I focused on estimating the influence of these uncertainties on the value of Uganda’s oil project, taking into account the design of the production-sharing agreement. I found the following: For the development stage to start, the global crude oil price must be equal to or higher than US$63 a barrel. The crude prices, which fell below US$25 per barrel in 2020, have recovered to sell above US$80 now. The required prices to start oil production differed among the parties. It was US$18 for the government and US$42 for the foreign companies. This suggests

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conflicting interests. I further found that when crude oil prices are highly volatile, the government prefers to delay production. The foreign companies prefer the opposite. I found that as the oil price rises and the project becomes profitable, the government’s revenue share rises faster than that of the foreign companies. But the oil price volatility exposes the government to revenue losses when the prices fall.

What next?

The development of the oil fields and pipeline has resumed in Uganda after the COVID-19 period lull. The government needs to design production-sharing agreements to allow for options that encourage investments by foreign companies while stabilising government revenues from the oil sector. One option could be delaying investment until oil prices are favourable. My results indicate that the government’s revenue share is more sensitive to oil price shocks than the foreign companies’ share. These shocks may translate into fluctuations in government oil revenues and, ultimately, macro-economic instability. The government must consider these shocks when designing and negotiating oil agreements. Uganda also needs to manage its petroleum fund effectively. It could learn a lesson from how Norway manages its oil fund. Some share of its oil revenues should be put aside for the period when oil earnings begin to decline. This would counteract the macroeconomic instability arising from sudden government oil revenue changes. Micah Lucy Abigaba Lecturer: Energy Economics Makerere University

gas

IMMENSE POTENTIAL Africa’s natural gas sector is building momentum in 2024

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gas

he recently signed liquefied natural gas (LNG) development project in South Africa’s Mpumalanga province (bit. ly/41NWH3k) is a promising step on the long road to Africa’s just energy transition. The project, being jointly developed by Kinetiko Energy (www.kinetiko.com.au) of Australia and the Industrial Development Corporation of South Africa (www.idc.co.za), a national development finance institution, will capitalise on Kinetiko Energy’s recent 3.1 billion cubic feet natural gas discovery in Amersfoort, Mpumalanga. The project is expected to produce 50 megawatts of equivalent energy and eventually expand to 500MW. The project, which Kinetiko Energy describes as South Africa’s largest onshore LNG project, exemplifies the potential of natural gas to grow the country’s economy and meet domestic energy needs. This all comes about as South Africa works to expand its oil and gas operations in order to curb its

reliance on coal and help pave the way to eventual decarbonisation. South Africa is not alone. As the African Energy Chamber (AEC) covers in its recently released “The State of African Energy 2024 Outlook Report” (bit. ly/47trZ0T), natural gas production is on the rise both globally and in Africa. Even more promising, the report notes that “upstream operators are now revising their strategies and aligning their future investments more in line with energy transition, and natural gas is being looked at as transition fuel.”

Gas—a logical transition fuel

I find it heartening that, despite calls by environmental organisations and wealthy countries to cease investment in African oil and gas projects, many of the companies actually operating in Africa appear to recognise the value of natural gas as a transition fuel. Too long has the solution to the

climate crisis been oversimplified: Decarbonisation is not a goal that can be reached overnight, nor without first building up the infrastructure required to support development of renewables. Such a task is relatively simple for Western countries, which have spent centuries building their economies and infrastructure off the backs of fossil fuels. The same cannot be said for African states, which have long lacked these same development opportunities and must now play catch-up at an accelerated pace. Even worse, we are told to play this game of catch-up with our hands tied: to leave our natural resources in the ground while the developed nations of the world continue to exploit their natural non-renewable wealth. We are expected to jump straight to building wind farms, solar farms and hydroelectric dams while hundreds of millions of Africans are still living without access to electricity. Where will the capital for such a miraculous development come from?

gas

Who will build the foundational infrastructure needed to support it? Developed nations are quick to promise, “We will!” but reticent to follow through on their promises. What’s more, their foreign 'aid' has frequently focused more on alleviating the symptoms of Africa’s economic and energy poverty rather than resolving the source. With all this in mind, it is clear to me who must provide the lion’s share of capital and build the infrastructure: Africans ourselves. And we cannot do that without tapping our own natural resources, natural gas being the most vital among them. Its properties that burn cleaner than oil and coal, its abundance, its ease of storage and transport, and its applications in manufacturing and synthesis make natural gas the best option for Africans to establish energy security and achieve decarbonisation.

Companies leading the way So, again, it is encouraging to see that the AEC is not alone in its stance that natural gas production makes sense for Africa—and for energy companies. More and more energy companies describe policies that call for pursuing energy transition measures for tomorrow while providing the natural gas to power the world today. Look at French major TotalEnergies (totalenergies. com), which is responsible for much of the upstream activity on our continent. Following the discovery of two huge gas fields in South Africa in 2019 and 2020, TotalEnergies is continuing its exploration and production efforts there, despite environmentalists’ efforts to block further activity. TotalEnergies also is driving the Mozambique LNG project (mzlng.

African mining news

totalenergies.co.mz), considered one of Africa’s most important hydrocarbon developments. Then there’s German independent Wintershall Dea, which is increasing its participation in the Reggane Nord natural gas project in Algeria by 4.5% (shorturl.at/kuCT8). The company is acquiring interest from Italian utility company Edison (www.edison.it) in the project. Wintershall Dea, which has a strong presence in North Africa, also announced first gas with its partners—Cheiron Energy (cheironenergy.com), INA (www.ina.hr) and the Egyptian Gas Holding Company (www.egas. com.eg)—at the East Damanhur block in the onshore Nile Delta last year (shorturl.at/kEPT2). I love what Wintershall Dea’s CEO and chief operating officer Dawn Summers wrote about natural gas in a November opinion piece (shorturl.at/BIS58), released just before the 2023 Climate Change Conference (COP28): “At first glance, it would seem that the gas and oil industry is merely part of the climate problem—but it will also be part of the solution. If gas were used instead of coal, CO2 emissions would immediately go down—by almost half. Already today, we are decreasing the environmental impact of our activities worldwide by drastically reducing our methane emissions. In addition, with technologies such as CO2 storage and H2 production, we are helping other sectors to decarbonise, and we aim to harness our expertise to ensure the future energy system is more sustainable. In short, the oil and gas industry can, must and will be part of the solution to the climate problem.” Well said! Africa’s gas industry is part of the solution as well. And, as the AEC report notes, the forecast for continued natural gas projects on our continent is looking good.

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Africa’s tremendous natural gas potential

The report finds that Africa continues to hold immense natural gas potential and is positioned to not only increase its outputs but also capitalise on the underserved LNG market and meet Europe's ongoing demand. AEC estimates show an increase from Africa’s 2023 natural gas output of about 265 billion cubic metres (bcm) to over 280 bcm by 2025. North Africa currently drives the majority of the continent’s output, although its production is expected to remain flat throughout the rest of the 2020s. Production ramp-up is expected through the second half of this decade as Mozambique increases its LNG output. As new-gas startups across the rest of the continent come online, this trend in increased output will become further pronounced. Nigeria and Algeria, meanwhile, are expected to drive an increased focus on LNG exports, with additional flows coming from Egypt, Equatorial Guinea, Mozambique and waters off Senegal-Mauritania. Africa’s natural gas sector stands poised to prepare the entire continent for eventual decarbonisation, as do many of the companies operating here. The goal of a continent fuelled by renewable power cannot be achieved, however, unless the developed world also recognises this and allows African states to transition on their own schedule, not one imposed on it by others. NJ Ayuk Executive Chairperson African Energy Chamber energychamber.org

minerals

TIME CAPSULES FROM THE DEPTHS OF OUR PLANET Most pink diamonds were birthed by a disintegrating supercontinent. Where can we find more? 88

African mining news

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minerals

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African mining news

minerals

here is nothing quite like a diamond. For many they are the ultimate 'I love you' gift, and jewellers will tell you the ultra-hard stones have unmatched 'fire' and 'brilliance'. The sentimental and aesthetic value of the gems is matched by their price, which can run to tens of thousand dollars per carat—and even more for coloured diamonds, especially if they are blue, green, violet, orange, red or pink. But why are diamonds so expensive? How do they form? Do we really find diamonds in volcanoes? What is the link to supercontinents and ancient lifeforms? In new research published in Nature Communications (t.ly/ qTCu1), we answer some of these questions by studying the world’s largest diamond deposit, Argyle in Western Australia—the source of more than 90% of pink diamonds. We found that at Argyle, diamonds crystallised deep in Earth’s interior were brought to the surface when the supercontinent Nuna began to break apart. As continents break up, their edges stretch, allowing small pockets of diamond-rich magma to rise to the surface.

Why are pink diamonds so special?

Only about 20% of mined diamonds are of gemstone quality. If you think of diamonds as cars, 80 of every 100 on the road would be old, beat-up rides and 20 would be luxury cars. One in every 10 000 would be the equivalent of a supercar: a rare and precious coloured diamond. However, some places in the world are special. Just as you may see a greater proportion of supercars in Monaco or Hollywood,

African mining news

AT ARGYLE, DIAMONDS CRYSTALLISED DEEP IN EARTH’S INTERIOR WERE BROUGHT TO THE SURFACE WHEN THE SUPERCONTINENT NUNA BEGAN TO BREAK APART

The Argyle volcano was created when the Nuna supercontinent was torn apart. (Olierook et al. / Nature Communications, CC BY)

so too do some places produce more coloured diamonds. When it comes to pink diamonds, one place stands alone. More than 90% of all the pink diamonds ever found come from a single mine in the Kimberley region of Western Australia: Argyle. The Argyle mine closed in 2020, and the price of pink diamonds has skyrocketed while the supply dwindles. While pink diamonds are highly prized, they are also in a sense 'damaged goods'. Diamonds are made of carbon atoms arranged in a compact, regular lattice. Clear, perfect diamonds sparkle because light reflects off their internal surfaces. However, when diamonds are

Issue 12

subject to intense pressure deep inside Earth, the lattice of atoms can twist and bend. This causes small imperfections that diffract light and bring colour to the gem.

Why is Argyle so well-endowed in pink diamonds?

All diamonds are found in pipelike volcanoes, or in their eroded remnants. These volcanoes have deep roots under continents, which is where diamonds reside. The roots need to be deep. If they are shallow, the carbon that may become diamonds will instead be in the form of graphite,

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THE WORLD NEEDS RESPONSIBLE MINING NOW MORE THAN EVER

Tackling climate change, enabling economic growth and building the world of tomorrow means the global demand for critical raw materials is soaring. The clean energy transition, in particular, is challenging metals and mining companies to ramp-up supply in a sustainable way. At Eurasian Resources Group, we know that the global ESG imperative and its vital role in creating a safer, more prosperous and healthier future for all cannot be achieved by any one organisation alone. That is why we champion cross border, industry and stakeholder collaboration to meet the demand for raw materials through ethical and responsible value chains. We are grateful to work alongside like-minded partners, thought leaders and innovators to find solutions to pressing cross-industry challenges, unlock mining’s potential to positively impact the world and create shared value for future generations.

Eurasian Resources Group (ERG) is a leading metals and mining company and a growing supplier of critical raw materials that are enabling the global energy transition. It has integrated exploration, mining, processing, energy and logistics operations and offices in 16 countries and is represented by more than 80,000 people globally. Its assets in Africa are key to its long-term international growth strategy.

eurasianresources.lu

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which is not nearly as appealing on an engagement ring. The story of the Argyle volcano begins some 1 800 million years ago, when the continental plate beneath the Kimberley smashed into the rest of Western Australia to form the first supercontinent, Nuna. Five hundred million years later, Nuna ripped apart again while Australia hung together. Yet, old wounds never fully heal. The suture between Kimberley and the rest of the continent was stretched open as Nuna split up, and the Argyle volcano shot to the surface, bringing pink diamonds with it. The death of a supercontinent gave birth to Argyle. So what made Argyle’s diamonds pink? The force that damaged the deep diamonds, resulting in their beautiful hue, probably came from the continental collision that formed the supercontinent in the first place. But the diamonds remained deep below this old wound for a long time before being brought to the surface. Will we find another trove of pink diamonds? With Argyle now closed, the search is on to meet the demand for these illustrious gems. The ingredients appear to be continental breakup, the edges of ancient continents and volcanic pipes.

Is carbon recycled in Earth’s interior?

Finding diamonds is no mere quest for glitz and glamour. It is an exploration of Earth’s deepest history. Diamonds are ancient time capsules from the depths of our planet. They are relics of a past so remote that it challenges comprehension. We know they are made of pure

African mining news

carbon—but where did this carbon come from? Most of the carbon is a remnant of carbon-rich asteroids that clumped together to form Earth 4.5 billion years ago. However, some diamonds contain carbon that was once part of living organisms. Organic carbon, from organisms that once thrived on Earth’s surface, got buried deep down by geological processes. The Argyle diamonds, for instance, hold such organic imprints, like echoes from an ancient world long vanished. In these glimmers of the distant past,

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we find more than beauty; we find keys to unlock the most profound secrets of our planet’s history. Denis Fougerouse Research Fellow School of Earth and Planetary Sciences Hugo Olierook Research Fellow: Geology Luc Doucet ARC Future Fellow Earth Dynamics Research Group Curtin University

MANDELA MINING PRECINCT MINDS FOR MINES

Revitalizing Local Mining: Cutting-Edge Research, Innovation and Development

The Mandela Mining Precinct (MMP) will be participating at this year’s African Mining Indaba, under a Department of Science and Innovation (DSI)-led collaboration with the Council for Science and Industrial Research (CSIR) under the subtheme, &quot;Accelerating Innovation: Shaping the Future of Mining Together&quot;. The collective will showcase innovative and people-centric capabilities designed for the modernisation of the local mining industry and participate in various panel discussions.

Visit us at the exhibition floor and join us for the following events: Join the MMP for a tour of its Real-Time Information Management Systems

Details:

Smart Integrated Mining Lab

Place: Department of Mechanical and Mechatronic Engineering, Stellenbosch University

Date: 07 February 2024 Time: 10: 00 – 11: 30

The SIMLAB is a testbed for underground mining technologies and solutions towards: multi-vendor system integration, short interval control for mining operations, connected mineworkers, underground real-time decision support and stope-to-cloud information for business decisions.

Transport will be arranged, leaving the CTICC at 09:00 and returning before 13:00. Refreshments will be served. To RSVP Contact: Prof Karel Kruger kkruger@sun.ac.za

Join the MMP and the Canada Trade Commission for a robust discussion on improving Collaboration in Mining Date: 06 February 2024 Time: 14:00 – 15:30 Place: Southern Sun, The Cullinan Hotel To RSVP send an email to: jburg-indaba@international.gc.ca

The MMP is a research-focused Public-Private Partnership, funded by the DSI and the Minerals Council of South Africa to revitalise mining research, development, and innovation and to ensure the sustainability of the mining industry in South Africa and the region, with a specific focus on mineral extraction. For more information about us visit our website: https://mandelaminingprecinct.org.za/ For more information on the various panel discussions we are participating in, follow us on social media: LinkedIn Mandela Mining Precinct, X @MindsForMines, Instagram @mmpofficial_sa

clean energy

RENEWING INVESTMENTS East African countries adopt a diversified resource development strategy

African mining news

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clean energy

oasting an abundance of renewable resources, East Africa has garnered substantial attention from major international players within its clean energy market. Robust policies and declining costs of technology in the sector, coupled with regional market and infrastructure reforms, are poised to accelerate the deployment of clean energy projects. Yet, the region is also anticipating first oil from the Tilenga project—part of Uganda’s Lake Albert Development—along with new liquefied natural gas (LNG) investments in Tanzania.

South Sudan

With a low electrification rate, South Sudan is a prime candidate for accelerated investment in decentralised energy solutions to increase rural energy access and stimulate industrial development. The country features opportunities for regional and international partners to support the development of solar minigrids: an achievable and scalable energy solution for South Sudan’s

rapidly growing population, which remains heavily reliant on dieselpowered generators for electricity. As one of Africa’s largest oil producers, the country is also seeking an influx of capital and technology to expand its upstream sector. In September 2023, South Sudan finalised a $3-billion deal with United States oil company Caltech Investment (t.ly/DgWuW) to invest in and grow its petroleum industry and associated infrastructure. South Sudan is also looking to forge partnerships in technical training, skill building and knowledge transfer as it aims to develop its local workforce and transform its national oil company Nilepet (nilepet.com) into an integrated energy operator by 2027.

Tanzania

Having set a goal to increase its share of renewable energy to 50% by 2025, Tanzania has implemented a series of programmes to support the development of solar, geothermal and hydropower projects, aiming

to add 600MW of hydropower and 400MW of geothermal power capacity to the grid by 2025. The Africa Renewable Energy Fund (t.ly/5CZsr), a private equity fund focused on the development of clean energy projects across sub-Saharan Africa, has invested in multiple renewable projects in Tanzania, including a 10MW solar plant in Singida. In April 2023, the Tanzanian Government, African Development Bank and French Development Agency signed finance agreements worth $300 million (t.ly/LpO2y) for the construction of an 87.8MW hydropower plant in the Kagera region, with the project also receiving a $38.8-million grant from the European Union. Meanwhile, Tanzania is also driving energy development in the form of natural gas. The country holds proven natural gas reserves of 57 trillion cubic feet and is hoping to accelerate exploration, with plans to launch an oil and gas licensing round in 2024. In May last year, Equinor, Shell and ExxonMobil finalised discussions with the Tanzanian Government (t.ly/1efEw) on the

clean energy construction of a large-scale LNG facility with the capacity to supply 10 million metric tonnes per year, establishing an initial productionsharing agreement and regulatory framework. One month later, China National Offshore Oil Corporation announced its plans to explore for oil and gas in Tanzania’s 4/1B and 4/1C offshore blocks, located nearby existing gas discoveries (t.ly/6rcRc).

Uganda

In December last year, Uganda’s Ministry of Energy and Mineral Development released its Energy Transition Plan (t.ly/wp3gy) that focuses on raising energy access rates, and requires $8 billion in annual clean energy investments by the end of the decade. The country’s renewable sector has attracted steady investment to date: during the COP28 summit, for example, a Private Infrastructure Development Group company committed $19 million toward the construction of a 20MW solar PV project in northwestern Uganda (t.ly/H4hMY). Notably, the East African country is spearheading a dual development strategy, awaiting first oil production from the Lake Albert Development set to begin in 2025. As a result, Uganda requires significant foreign investment to build the infrastructure needed to monetise its estimated 6.5 billion barrels of oil reserves. New avenues for multi-pronged resource development strategies will be explored during the 2024 Invest in African Energy forum (invest-africa-energy.com) taking place in Paris in May and uniting industry experts from across Europe and Africa for two days of country spotlights, networking sessions and deal-making opportunities. Energy Capital & Power energycapitalpower.com

African mining news

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FRICTION ROCK STABILISERS (SPLIT SETS)

The NHR double ridged split set is a patented split set and gives you strength where you need it most – at the washer end of the split set. The 3CR12, stainless steel double ridge con�guration on the split set has been tested to an average carry load of 187.5kN. The design of the split set enhances rock retention performance, whilst allowing them to tighten as lateral rock displacement occurs.

The new, patented, innovative, self-drilling split set is a true single pass rock bolt installation system. Installation eﬃciency is greatly improved with 13 x 2.4m split sets drilled and installed in under 20 minutes. The sacri�cial drill bit and wedge combination doubles as an end anchor, consistently recording 17t pull out strength.

The patented NHR “end anchor” split set brings together a combination of the eﬀectiveness of the split set friction stabiliser with the in- hole holding capabilities of a mechanical anchor bolt. There is no slipping of the bolt – it will maintain its anchor in both energy absorption and dynamic ground conditions, whilst exerting radial pressure over its full contact length.

Additional products available: Patented in-stope prestress devices such as pots, plates and all associated accessories.

For more information, please contact Raymond Botha raymondbotha@nhrmining.co.za

Tony Davidson tony@nhrmining.co.za

investment

STRATEGIC OPPORTUNITY Enhancing the attractiveness of Africa's energy sector to European investors

African mining news

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investment

mid supply challenges and efforts to diversify imports, Africa has emerged a highly strategic investment opportunity for many European countries and companies. The continent’s abundant resource base and untapped opportunities have already begun to attract players from across the bloc, and new market dynamics offer the chance for African countries to take tangible actions to advance the continent’s attractiveness for foreign investment.

Energy master plans define growth opportunities

With the resources available, many African countries—either

oil producers or those on the verge—have begun implementing strategies to define a longterm vision for the sector. These master plans not only outline opportunities but reassure foreign investors on risk while detailing strategies for maximising returns on investment. Masterplans have already proven effective for burgeoning oil and gas producers. For example, Senegal and Mauritania—both of which will start gas production in 2024—have used masterplans such as the Plan Sénégal Émergent (shorturl.at/fhiCZ) and the Gas Master Plan (shorturl. at/htxIT), respectively, to secure capital and partnerships. These long-term development agendas grant investor clarity, identify fiscal policies while encouraging collaboration and investment. Establishing energy masterplans is also a strategy for mature producers to diversify

their energy sectors by attracting investment in alternative industries such as renewables, power and infrastructure. This is the case in Nigeria with the Renewable Energy Master Plan (shorturl.at/qJ025), which aims to increase the supply of renewable electricity to 36% of the energy mix by 2030. In South Africa, the Renewable Energy Independent Power Producer Programme (www. ipp-renewables.co.za) focuses on leveraging demand for renewable energy and storage technologies to unlock industrial and inclusive development.

Enhanced regulatory frameworks clarify terms

Clear and well-defined legal

NEW MARKET DYNAMICS OFFER THE CHANCE FOR AFRICAN COUNTRIES TO TAKE TANGIBLE ACTIONS TO ADVANCE THE CONTINENT ’S ATTRACTIVENESS FOR FOREIGN INVESTMENT

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investment

frameworks are a strategic way to boost European investment in Africa while developing or revitalising existing value chains. On a contractual basis, such frameworks identify fiscal terms and outline processes while helping to reduce project negotiation times and providing assurance in case of disputes. Regulatory frameworks serve as guides for investors, laying the foundation for strong and mutually beneficial partnerships. In Mozambique, the Energy Ministry has created an attractive environment for foreign firms with corporate taxes as low as 21%. Royalty rates and clear regulations have enticed several major players including ExxonMobil, TotalEnergies, Eni and more. In Egypt, following the discovery of the offshore Zohr field, the government introduced a new oil and gas contract that allows investors to control their production share. Further incentives to enhance the country’s attractiveness are poised to attract a fresh slate of investment. Another nation that is banking on the power of its Hydrocarbons Law (shorturl.at/ghuB5) is the more established gas producer Equatorial Guinea, which has become Africa’s third largest oil exporter in the last decade owing to its Gas Mega Hub initiative (shorturl.at/fCEP8) and respective regulation.

Supply-demand integration enhances project scope

By prioritising projects that integrate both supply and demand dynamics, African countries can attract the investment needed to develop

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WITH THE RESOURCES AVAILABLE, MANY AFRICAN COUNTRIES HAVE BEGUN IMPLEMENTING STRATEGIES TO DEFINE A LONG-TERM VISION FOR THE SECTOR.

large-scale energy projects while ensuring domestic needs are met. Such projects not only reduce overall costs and shorten the time taken from project to market but demonstrate market viability and long-term potential. Notably, integrated projects bridge the gap between supply and demand, showcasing profitability and sustainability while offering long-term potential for growth and development. Such projects also tend to be more resilient to market fluctuations, diversifying focus beyond extraction and reducing overall investment risk. An example of such a project is the Eni-led Structures A&E Project (shorturl.at/hDN79): an $8-billion gas development in Libya that utilises existing pipelines and treatment facilities to supply gas to southern Europe. In addition to exports, the project will produce gas to supply the domestic market, spurring job creation while meeting local demand.

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Local capacity unlocks competitive workforce

With the youngest population globally—70% of which is under the age of 30—Africa’s workforce contributes to its attractiveness as an investment destination, particularly for European project developers. Many petroleum- and mineral-producing countries are implementing policies to develop local capacity in the energy industry: a strategy that benefits both European companies seeking a skilled workforce with knowledge of the market and African governments aiming to retain qualified labour and ultimately improve the economic well-being of their citizens. Notably, Ghana has implemented programmes such as the Ghana Upstream Sector Internship and Associated Oil and Gas Capacity Building to train youths; while Angola focuses on advancing local content through capacity building initiatives to strengthen domestic capabilities and foster industry partnerships and collaboration. These programmes enhance technical, managerial and operational skills, promoting industry best practices for more efficient operations. The upcoming Invest in African Energy Forum in Paris (investafrica-energy.com) on 14 and 15 May 2024 is a testament to the efforts being made to promote investment into the African energy sector. By promoting investment opportunities and examining efforts to attract foreign capital, the forum redefines the Africa–Europe relationship by connecting players and catalysing development. Energy Capital & Power energycapitalpower.com

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BETTER POLICIES

FOR BETTER LIVES Afrinov looks after its greatest asset—its employees—through diversity, inclusion and talent management

frinov is a highly innovative up-andcoming company specialising in engineering, manufacturing, equipment supply and installation. It has been in existence since 2017, with a proven track record of successfully executed projects within the mining and public sector. The company's head office is based in Midrand, Johannesburg with manufacturing facilities in Centurion, Tshwane. Management and the everchanging world of work remain challenges. However, Afrinov has successfully managed to look after its greatest asset—its employees— through diversity, inclusion and talent management. Diversity and inclusion are crucial to Afrinov’s work. The

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company continuously strives to ensure its workforce represents a diverse range of backgrounds, experiences and perspectives. It aims to manage its people with diversity and inclusion as key pillars. Afrinov recognises that a diverse and inclusive working environment is fundamental to achieving its mission of Better Policies for Better Lives. The company has maintained employment of women in support leadership roles such as human resources, sales & marketing as

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well as finance. This is a milestone, and Afrinov aims to recruit more women for its Engineering and Workshop units. While the company is making important advances in gender equality, there is much work to be done to ensure a more equitable representation of female engineers in its core department. This is a journey, and Afrinov is making progress, albeit at a slower pace than with gender equity. It is also working on the broader dimensions of diversity, including but not limited to sexual orientation, race and ethnicity, and working with disabilities. The company strives to foster a diverse and inclusive workplace. This is key to shaping policies that reflect the needs and interests and well-being of staff and simply making Afrinov a safe and better place to work. Afrinov is making great effort to strengthen and create an inclusive culture: one that will ensure everyone has an equal opportunity to contribute to and influence every part and level of the workplace to foster innovation, creativity and productivity. This inclusive culture goes beyond simply representation; it is about creating a culture where everyone feels heard, respected and valued. The company ensures its ongoing operations meetings take place weekly; it is through this platform that all departmental heads, together with their supervisors, are afforded an opportunity to share their input on all existing and pipeline projects as

ADVERTORIAL well as project progress. This sense of belonging ensures everyone feels safe and can bring their full, unique selves to work. In a bid to strengthen its commitment to transparency and accountability, an initiative has been made to ensure employee engagement is an ongoing process. Apart from its open-door policy, the company continues to ensure there is continuous employee engagement and inclusiveness through surveys. The last survey was conducted in October 2023, and the results obtained will be used to improve the existing culture, with the report made available to all staff. Afrinov strongly believes that being transparent and accountable will assist the company to continue making progress, and to build a workplace that reflects its values.

Talent management

Identification and retention of talent remains at the core of Afrinov's business. The company strives to continuously prioritise talent management for better onboarding, career advancement and improved performance management. Apart from various soft skills, compliance and short course training to which the workforce from various departments has been exposed during the current fiscal year (2023/2024), the company has been able to house a total of four interns to join its Internship Programme in the core departments of Workshop and Engineering. In May 2023, two interns from the Ekurhuleni Artisans and Skills Training Centre were recruited to join the Workshop department, with an end goal of advancing their practical knowledge in boilermaking and fitting, for a duration of 12 months. Additionally, two more interns from the University of

Johannesburg were recruited for the Mechanical Engineer Graduate Programme. This 12-month internship programme commenced in December 2023. Lastly, with a bid to improve performance in one of the company's core divisions, in September 2023 Afrinov afforded an opportunity to 15 of its core staff members from the Workshop to advance their theoretical and practical knowledge by sending them on an accredited training programme through the Johannesburg Central TVET College, where they are studying toward an NQF level 4 qualification in Mechanical Engineering.

Operational efficiency

The above improvements in human capital, together with the rigorous investments in its facilities have drastically improved the company's capacity and competitiveness in the market. Its foundation is based on continuous improvement, hence

its slogan, “African Innovations”, and innovation is the fibre of the organisation. Afrinov has embedded innovation in its hiring strategy, the location of its facilities,its strategic supply chain partnerships with suppliers, as well as the assets acquired to deliver consistently excellent service to customers. Due to the increase in demand for equipment and services, Afrinov has moved from its old manufacturing workshop of 640 square metres to the new 5 000m2 workshop equipped with overhead cranes, backup power and newly acquired heavy machinery for the machine shop. Furthermore, the company has bolstered its capacity for faster response and co-ordinated motion within its projects space by procuring additional fleet. All these developments have afforded Afrinov complete control of its offering, improving delivery times, quality and efficiency to unmatched standards. As an ISO 9001:2015 and ISO 45001:2015 certified company, Afrinov is equipped with internal processes and systems to always assure clients of the highest occupational health and safety standards. It is this commitment to strengthening human capital, quality and safety that has led to Afrinov's significant growth rate and the confidence clients have in the company's offerings.

economy

ENERGISING AFRICA’S POTENTIAL The pivotal role that partnerships play in unlocking economic prosperity and energy security across the continent

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number of dedicated events and exhibitions took place in Africa last year to spark discussions and inspiration to see the continent rise. Among them were top energy and infrastructure gatherings that confirmed Africa could become the world’s largest energy market. To truly understand the continent’s evolving energy sector, the African Energy Chamber’s State of African Energy 2024 Outlook (bit.ly/47trZ0T) delves into the realities and possibilities. Africa’s energy sector is growing annually at a rate of 5%, driven by a population exceeding 1.2 billion people and featuring abundant natural resources including oil, natural gas, coal, renewables and uranium. While challenges exist, such as untapped resources and infrastructure limitations, the continent is on the verge of a transformative period. Libya is one great example. Although its political instability has caused delays to some

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WHILE CHALLENGES EXIST, SUCH AS UNTAPPED RESOURCES AND INFRASTRUCTURE LIMITATIONS , THE CONTINENT IS ON THE VERGE OF A TRANSFORMATIVE PERIOD. projects, the tide is changing. In February 2023, the National Oil Corporation launched its strategic plan to revitalise the country’s oil & gas sector (shorturl.at/ epvFP). This will hopefully improve transparency and co-ordination across the sector—and Energy Capital & Power's Libya Energy & Economy Summit in January 2024 (libyasummit.com) will provide a better understanding of the country’s energy and economic prospects. It’s through forging strong partnerships, which are always encouraged at industry events, including with global counterparts, that countries in Africa can

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enhance infrastructure and spur economic opportunities. Africa’s significant population growth, urbanisation and industrialisation present a unique landscape for sustainable development. The energy sector, therefore, holds the key to addressing economic disparities and propelling Africa toward substantial growth. The challenge lies in identifying sustainable and affordable energy sources to meet demand. Africa requires solutions within a realistic energy mix to maximise all natural resources and combat energy poverty. Global emissions must peak in the next 10 to 15 years if we are to

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economy

have a good chance of holding global warming below 2 degrees Celsius, but we cannot and should not shoulder this burden. Even if Africa were to triple its production of natural gas from current levels, its contribution to global emissions would only rise by 0.67%. Even so, urgent transformation is needed in Africa’s electricity sector. Encouraging alternatives such as shale gas could contribute minimally to global emissions. The focus should be on diversifying, with gas complementing renewables to provide reliable electricity to the 600 million people who go without access. While making precise projections is challenging, the road transport and petrochemical sectors have been flagged as key drivers of demand over the next 18 months due to heightened global economic activity and a rise in consumption of energyintensive goods. Future demand will be influenced by various factors outside these immediate markets, including global economic conditions, population

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growth rates and shifts in fuel consumption trends (e.g. electric versus gasoline cars). Both sectors are highly energy-dependent, and potential limitations in the availability of affordable energy could impede production. The Organization of the Petroleum Exporting Countries member nations, despite facing production compliance challenges, remain pivotal in driving output. Collaboration, investment in local talent, and seizing opportunities presented by the continent’s young population and growing middle-class are crucial for progress. Attention is needed in areas such as implementing smarter grids and advancing electric vehicles. Moreover, the strategic use of seaports for the storage and distribution of green hydrogen holds significant potential, positioning them as hubs for export. The increasing trends of using drones for oil and gas inspections, using blockchain technology for oil and gas transactions,

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and the development of artificial intelligence for oil and gas forecasting are exciting possibilities that could benefit Africa’s oil & gas sector. All these innovations hold great potential to improve transparency, efficiency and security. Crucial to highlighting Africa’s cause, events and exhibitions play an important role in driving the necessary discussions toward progress while also serving as economic enablers. As a continent, we should modernise energy infrastructure and have the freedom to use all resources for energy reliability, emphasising the need for impactful investment rather than pursuing measures like the Paris Agreement that may have limited effects on the continent’s energy poverty. It is essential to bring together the relevant players to make a significant impact on the continent. Devi Paulsen-Abbott CEO: Energy Capital & Power

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financing

SHIFT TO SUSTAINABLE European Investment Bank Global presents the first Just Resilience and Just Transition approach to meet the needs of the most vulnerable

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financing

he European Investment Bank (www.EIB.org) is the first international financial institution to launch a just resilience approach to be applied from 2024 onward. EIB is expanding its support for a just transition globally including through Just Energy Transition Partnerships and Team Europe initiatives (t.ly/DQ1OA) in nine pilot countries; the new approaches aim to support those most impacted by climate policies and vulnerable to climate change. At the COP28 climate change conference last year, EIB Global— the development arm of the EIB—presented its new approach to increase financing and advisory services in support of a just transition and just resilience worldwide (t.ly/7iI5h). The EIB will be the first international financial institution to apply a just resilience approach from the start of 2024. Building on its considerable work in the European Union (EU), in support of communities impacted by decarbonisation efforts, EIB Global will now be expanding its just transition support worldwide. EIB Global will work with public and private partners to identify opportunities and address challenges related to a just transition and just resilience. EIB Global backs projects through direct as well as intermediated lending through funds, banks and micro-finance institutions. In addition, EIB Global is seeking to build financial, technical and knowledge partnerships to help prepare just transition and just resilience projects worldwide. “Decarbonising our economies and making them climateresilient must happen in a socially responsible way or it will not happen and we will not manage to meet the urgent goals we have set ourselves,” says EIB vice-president, Ambroise Fayolle. “Under the new EIB Global approach for just transition and just resilience, we

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EIB GLOBAL BACKS PROJECTS THROUGH DIRECT AS WELL AS INTERMEDIATED LENDING THROUGH FUNDS, BANKS AND MICRO-FINANCE INSTITUTIONS. will be directing more support, through Team Europe initiatives, to those countries and people who are most acutely impacted by the climate crisis and are most impacted by climate policies. I call on our partners to join us in this crucial endeavour to back sustainable investment projects that leave no one behind.”

Pioneering Just Resilience Just resilience aims to ensure climate adaptation policies and projects take into account the needs of everyone to avoid unintended impacts. Increasing climate resilience and ensuring just climate adaptation policies are urgently needed, as rising temperatures are increasing geographical and social inequalities with devastating consequences. From 2024 onward, EIB Global will focus its just resilience support on least developed countries, fragile and conflict-affected states, as well as small island developing states. Moreover, EIB Global will target climate adaptation actions involving or benefiting those depending on natural resources and ecosystems for their livelihoods, including indigenous people, women and non-binary, young people, migrants and other groups bearing unequal climate change burdens across the globe. EIB Global will take a more integrated approach to climate adaptation and social inclusion and combine related metrics.

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A Just Transition that leaves no one behind In the EU, the EIB has for a long time been supporting communities impacted by the shift to a net-zero future. EIB Global is now building on this experience and is extending its just transition activities in regions most affected by decarbonisation efforts and where there is an intention to shift to more sustainable economies. EIB Global will initially focus its just transition activities on nine pilot countries: Bosnia and Herzegovina, Kosovo, Montenegro, North Macedonia, Serbia, Ukraine, South Africa, Indonesia and Vietnam. It will support workers affected by the green transition, support projects in low-carbon infrastructure, energy efficiency, renewable energy, the development of small and mid-sized companies, education, training and retraining, as well as environmental rehabilitation. In doing so, EIB Global is supporting Just Energy Transition Partnerships and is working alongside Team Europe initiatives to end coal-based energy production. Beyond pilot countries, EIB Global will assist workers and communities affected by the closure of fossil fuel plants or activities involving fossil fuel extraction. EIB Global is prioritising the regeneration and decontamination of sites, land rehabilitation and ecosystem restoration, and green infrastructure. European Investment Bank www.eib.org

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artisanal mining

POWERFUL TOOL New project addresses corruption in Democratic Republic of Congo’s artisanal cobalt sector

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artisanal mining

MPACT (impacttransform.org) has launched a new project to address everyday corruption in the form of illegal and informal payments in Democratic Republic of Congo’s (DRC) artisanal cobalt mining sector. The Challenging Corruption project (impacttransform.org/en/ challenging-corruption) will make informal payments in the supply chain more visible and support civil society to monitor corruption more effectively in the sector. IMPACT is implementing the project in partnership with the Extractive Industries Transparency Initiative (www.itierdc.net) in the DRC (EITI-DRC), the technology company Minespider (www. minespider.com), and international non-profit organisation Solidaridad (www.solidaridadnetwork.org). IMPACT—an independent nonprofit collaborating with local partners for lasting change—

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transforms how natural resources are managed in areas where security and human rights are at risk. It investigates and develops approaches for natural resources to improve security, development and equality. The project’s launch in December last year in Kolwezi, Lualaba Province brought together the mining governance authorities, the technical services of the mining administration, supply chain actors, civil society and private sector representatives. Stakeholders discussed how the project will leverage ongoing efforts to support transparency— and, ultimately, how it can contribute to create an enabling environment for responsible sourcing of artisanal cobalt. “IMPACT has found that actors across the supply chain, as well as state agents, lack awareness about which taxes or

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fees are legal or informal. These informal payments are resulting in corruption along the supply chain every day. When actors have a map of legal payments, it becomes a powerful tool for communities to fight against corruption,” says Joanne Lebert, IMPACT’s executive director. The Challenging Corruption project builds on IMPACT’s work to map all the payments, fees and taxes applicable to artisanal cobalt supply chains and their legal basis. The multi-stakeholder process to map the legal payments found that supply chain actors are sometimes paying thousands of dollars in informal taxes. At the extraction level, the number of payments was reduced from eight to four (t.ly/sDPKq). This would allow co-operatives to avoid informal payments that have no legal basis, such as the US$10 500 charged by SAEMAPE

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(t.ly/4H5Qa) for technical advice on installations on the mine site. The five technical notes that have mapped the legal taxes and fees for the artisanal cobalt supply chain were published in November 2023 (t.ly/sDPKq). They will be widely disseminated to supply chain actors and state agents across the Lualaba and Haut Katanga provinces. Importantly, the project will allow for comprehensive and robust data analysis for the artisanal cobalt sector to understand corruption at the individual and community levels. By compiling different data streams such as traceability, fiscal payments, revenue transparency and socio-economic indicators, red flags pointing to corruption will become visible. Local civil society and anticorruption advocates will receive training and guidance on how to collect data as well as interpret, understand, learn from and leverage analytics. As a result of this work, civil society, anti-corruption advocates and artisanal mining communities will be better able to monitor corruption and leverage data to bring about change.

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“EITI was formed from the observation that in countries with natural resources, populations don’t see the benefits of this wealth,” says Jean-Jacques Kayembe, national co-ordinator of EITI-DRC. “We want the benefits of our country’s mines to go to the Congolese people. Local actors in the artisanal cobalt sector will have the tools to identify corruption within their communities by relying on EITIDRC’s approaches to revenue transparency and the creation of the mechanism to analyse all the data.” Adds Nathan Williams, founder and CEO of Minespider, “Minespider is dedicated to empowering stakeholders with transparent, traceable data in the Challenging Corruption project, enabling the creation of product passports that incorporate both responsible sourcing data and financial data—a powerful tool in the global effort for a corruptionfree artisanal cobalt mining sector.” Minespider offers a blockchainbased platform for tracking mineral supply chain data and creating more sustainable and transparent mineral supply chains.

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Its digital product passports are digital IDs of material that easily communicate key data across the supply chain. According to Jennifer Horning, head of Corporate Engagement and Partnerships at Solidaridad North America, “There’s great potential in providing transparency around legitimate payments in the cobalt supply chain, giving communities the knowledge, and the power, to resist corruption. The tools and learnings developed in this project will offer many stakeholders, especially the miners themselves, the incentive to build more formal, transparent trade relationships that can be the driver for better livelihoods.” Solidaridad is an international civil society organisation with over 50 years of experience in developing solutions to make communities more resilient: from its early roots working with marginalised communities in Latin America to current work fostering more sustainable supply chains. The Challenging Corruption project was one of the winners of the Powering a Just Energy Transition Green Minerals Challenge run by the United States Agency for International Development (t.ly/58Aux).

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future of mining

THE SKY'S NO LIMIT NASA’s robotic prospectors are helping scientists understand what asteroids are made of—setting the stage for miners to follow someday

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future of mining

he cars, cellphones, computers and televisions that people use every day require metals like copper, cobalt and platinum to build. Demand from the electronics industry for these metals is only rising, and companies are constantly searching for new places on Earth to mine them. Scientists estimate that lots of these metals exist thousands of miles beneath Earth’s surface, in its molten core, but that is far too deep and hot to mine. Instead, some companies hope to one day search for deposits that are literally out of this world—on asteroids. The commercialisation of asteroid mining is still a ways off, but in October 2023, NASA launched a scientific mission to explore the metal-rich asteroid Psyche (t.ly/SmgVB). The main goal of the mission is studying the composition and structure of this asteroid, which could tell scientists more about Earth’s core, since the two objects may have a similar makeup. Both likely contain platinum, nickel, iron and possibly even gold— materials of commercial interest.

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I am a planetary geologist whose work explores other planets and astronomical objects like Mars, Venus and the moon. I will be following the Psyche mission closely, as this is the first time that scientists will be able to learn about the composition and structure of a possible piece of a planetary core similar to the Earth’s, without indirect seismic or magnetic measurements, or replicating the pressure and temperature conditions of the Earth’s core in our labs. With the spacecraft estimated to arrive at the asteroid’s orbit in 2029, the findings from the Psyche mission will provide unique insights into the type of metals present on the asteroid’s surface, as well as their amount, and the minerals containing these metals. This data is essential both for scientists like me exploring the formation and evolution planetary bodies, as well as for companies investigating the possibility of asteroid mining.

Asteroid formation

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Asteroids come in a variety of sizes. Some are the size of a town, while others are the size of a state. Most asteroids are made of rocks and represent the leftovers from the early formation of our solar system around 4.6 billion years ago. Not every asteroid is the same: some, like Bennu, the target of NASA’s OSIRIS-REx mission (t.ly/s_ YKr), are rich in carbon. These are very old, and they will teach scientists more about how planets formed and how life might have begun on Earth. Others, like Psyche, are made of metals and potentially result from one or more collisions between astronomical objects when the solar system was forming. These collisions left debris flying through space—including potential pieces of a planet’s metal-rich core. A NASA spacecraft will orbit and analyse the surface of Psyche.

Mining in space Not every mineral deposit on Earth is mineable. Companies first look for deposits with a high level of metal purity. They also investigate how affordable and feasible

future of mining

extracting the metal would be before choosing where to mine. Similarly, before mining an asteroid, companies will have to think about all those factors, and they will have to come up with the infrastructure needed to mine at a distance and transport the metals they mine hundreds of millions of miles back to Earth. The technology to do that is still years away, and transporting metals would require major funding. A few companies around the world (t.ly/VNZx5) have already started to think about what the best and lowest cost approach would be, drawing from processes similar to those used on Earth. The first step would be finding a mineable metal deposit (t.ly/ gEd5L). Next, they would drill and extract the metals on the asteroid. One of the most important differences with Earth mines is that each step would be undertaken remotely with spacecrafts orbiting around the asteroid and robots landing on its surface. Then, a spacecraft would send the resulting materials back to Earth. Asteroid mining plans are still at their earliest stages. A few companies like Planetary Resources (t.ly/yNipQ) and Deep Space Industries (t.ly/c1-be), with goals to extract metals from space, were acquired by other companies. Experts cannot quite tell yet how acquiring valuable metals from asteroids would affect the global economy, but these metals could potentially flood the market and lower their values (t.ly/O5Ogh). The Psyche mission is a huge step in figuring out what sort of metals are out there, and it may also answer questions about the composition and properties of Earth’s core. Valerie Payré Assistant Professor: Earth and Environmental Sciences University of Iowa

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regulatory

TANGIBLE RESULTS How African–European partnerships are shaping oil & gas regulations

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rowing partnerships between European and African companies are playing a pivotal role in shaping Africa’s oil & gas regulatory frameworks. Through co-operative efforts and shared mandates, these partnerships aim to drive energy security, industrialisation and environmental sustainability through advancing mutually beneficial projects across the continent. Renewed collaboration with European international oil companies (IOCs) like Equinor, Shell, TotalEnergies, bp and Technip Energies is serving to strengthen African energy policies and fiscal terms, with tangible results.

Senegal In Senegal, bp's partnership with national oil company Petrosen resulted in the flagship discovery and development of the Greater Tortue Ahmeyim liquefied natural

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RENEWED COLLABORATION WITH EUROPEAN INTERNATIONAL OIL COMPANIES IS SERVING TO STRENGTHEN AFRICAN ENERGY POLICIES AND FISCAL TERMS, W I T H TA N G I B L E R E S U LT S . gas project, and prompted Senegal to revise its existing oil & gas code. The revision resulted in the introduction of a new Petroleum Code in 2019 (t.ly/ IOPE3), which targets improved revenue collection for the West African country, while attracting further investments into upstream exploration.

Angola In Angola, the government’s longstanding partnerships with operators like Eni, TotalEnergies

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and bp have not only boosted exploration and production activities but also directly shaped the fiscal and regulatory framework. A Presidential Task Force established in 2019 (t.ly/_if7i) engaged the country’s leading IOCs to assist with the amendment of three presidential decrees and enactment of two new laws. Focus areas included simplifying the oil concessions management process and implementing incentives for investment in marginal fields, with the task

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regulatory

force serving as a model for successful public-private sector engagement.

Nigeria

In Nigeria, European IOCs— which also represent the top hydrocarbon producers in the country—have played a significant role in shaping the development and enactment of the Petroleum Industry Act of 2021 (t.ly/AAasy). The long-awaited piece of legislation serves to facilitate a just energy transition, revamp upstream, midstream and downstream operations, and enhance the country’s competitiveness on a global scale. As a result, it is considered one of the biggest achievements in Nigeria’s energy sector to date.

Namibia

European–African partnerships also extend to local content development, with a focus on capacity building and knowledge and technology exchange. Namibia has implemented the National Upstream Petroleum

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Local Content Policy of 2021 (t.ly/BSvvC) to stimulate the participation of local entities in the country's burgeoning oil & gas sector. The policy comes in response to growing cooperation between Namibia and European firms including Shell and TotalEnergies in the exploration of the offshore Orange Basin, which has led to five large-scale oil discoveries in the past 24 months.

ENVIRONMENTAL STEWARDSHIP& SUSTAINABILITY Finally, Europe is playing a key role in helping Africa define its policy toward environmental stewardship and sustainability, leading to initiatives like Nigeria’s Methane Emissions Reduction Guidelines (t.ly/8U3NR) and Gas Flare Commercialisation Programme (ngfcp.nuprc.gov.ng), which target the reduction of carbon emissions and minimise the ecological impact of oil & gas projects. Partnership initiatives like the Global Gateway Investment

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Package (t.ly/4w5av) and the Just Energy Transition Partnerships (t.ly/pHu3P) have sought to foster co-operation between Africa and Europe, focusing on the development, utilisation and monetisation of gas resources to enhance energy security and facilitate an equitable energy transition. Recognising the crucial role of natural gas in bolstering energy supplies, several African countries— such as those with integrated gas policies like Ghana’s Gas Master Plan (t.ly/EJci5) and Mauritania's Energy Vision 2030 (t.ly/zBaPR)—are actively implementing strategies to maximise sector expansion, in collaboration with European partners. The upcoming Invest in African Energy 2024 forum (invest-africaenergy.com) scheduled for 14 & 15 May in Paris will further explore how European investors and African energy markets are working together to revamp oil & gas regulations and foster sustainable development, while still attracting oil & gas investment. Energy Capital & Power energycapitalpower.com

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technology

SMALL DIMENSIONS, GREAT PERFORMANCE OndoSense HAS expandED its portfolio of highperformance and reliable industrial sensors

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technology

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illimeter accuracy, high measuring speed, wide measuring range: The OndoSense reach distance radar offers high performance and reliability—even in difficult environments. Based on the world’s first micrometer-accurate distance radar OndoSense apex, the German radar expert now presents the OndoSense reach radar sensor for distance measurement, object detection and positioning. With its great performance and reliability, it is ideally tailored to the market needs of industrial automation. OndoSense (ondosense. com) realises breakthrough radar sensor technology for a digitised industrial world. With sensor solutions based on highprecision, robust radar technology and smart sensor software, the company ensures customers get

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relevant data for the intelligent control of production plants and machines. Its innovative, highperformance radar sensors can be used reliably in a wide range of applications. The OndoSense reach combines millimeter accuracy and high measuring speed with a wide measuring range. And as one of the smallest distance sensors on the radar market, it is also suitable for confined spaces and short measuring distances. Thanks to innovative radar technology, the OndoSense reach reliably measures at all times— even in challenging production environments. The OndoSense

reach is thus perfectly suited for the automation of outdoor applications in agriculture, mining, transport and logistics as well as for factory automation in the manufacturing industry.

Highperformance even for demanding applications “The OndoSense reach distance sensor sets new standards in industrial measurement technology with its compact

WITH ITS GREAT PERFORMANCE A N D R E L I A B I L I T Y , I T I S I D E A L LY TAILORED TO THE MARKET NEEDS OF INDUSTRIAL AUTOMATION.

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dimensions and the recognised reliability and performance of our robust, low-maintenance radar technology,” explains Rainer Waltersbacher, co-CEO of OndoSense. “As a result, the OndoSense radar sensor enables production and efficiency gains in the automation of measurement tasks with high demands on accuracy and speed. “I am thrilled with the performance of our new radar sensor and proud of the development work that the entire OndoSense team has done here.”

Smallest distance sensor on the radar market With its practical M30 housing design and a length of only 92 millimetres, the OndoSense

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reach is one of the smallest radar sensors ever for distance measurements, object detection and positioning. This means the sensor can be easily used for applications in confined installation spaces with short measuring distances. The OndoSense reach also offers a measurement accuracy of ±2mm and a measuring rate of 100Hz. As a result, the distance radar is also suitable for demanding applications. The measuring range of the sensor starts at 0.2m and reaches up to 40m. With an RS485 communication protocol, an analogue current interface (4–20mA) and three digital switching outputs (PNP/ NPN), customers benefit from powerful industrial interfaces for data transmission to the programmable logic controller Via a gateway, the sensor can connect operate interfaces such as Profinet or CAN.

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Reliable—evenin dirt, steam AND rain The OndoSense reach radar sensor for distance measurements enables reliable and precise measurement results at all times— even with dirt, smoke, steam, rain, snow, poor light conditions, light flashes or rough surfaces. Thanks to its dust-proof, jet water-proof housing (IP 67) and its resistant polytetrafluoroethylene lens, the robust distance radar is also suitable for demanding production environments and outdoor applications. The OndoSense reach radar sensor is ideal for distance or dimension measurement, object positioning or detection in agriculture, mining, transport and logistics, shipping and offshore, mechanical and plant engineering or in the energy sector.

S K I LLS DEVEL OPMEN T

UNEARTHING POTENTIAL The case for South African training companies as local partners

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SKILLS DE VE LO P ME NT

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S K I LLS DEVEL OPMEN T

n the African mining sector, the quest for local partnerships is driven by a combination of regulatory requirements and the desire to empower indigenous communities. However, the challenge lies in bridging the skills and expertise gap that often exists within these local partnerships. As African countries seek to maximise their mining potential, considering South African training companies as key local partners can be a strategic move with profound benefits.

South Africa’s rich mining legacy: over a century of expertise

Challenges in current training African mining news

practices across Africa Unfortunately, the existing training landscape in some African markets lacks a structured and comprehensive approach, and many African countries look to established mining nations such as Australia or Canada for guidance in training and development within the mining sector. Training programmes are often loosely oriented, with a primary focus on meeting minimum standards and qualifications. This approach may lead to inadequately trained individuals entering the mining workforce, posing risks to both safety and operational efficiency. Anecdotal evidence suggests instances of individuals transitioning from unrelated professions, such as rice farming, to operating heavy machinery with minimal training. This highlights the need for a more rigorous and competency-based training approach to ensure not only job qualification but also the safety and well-being of workers within the mining sector.

South Africa blends both legacy and modern practices, and the nation’s mining industry—steeped in a history that spans more than 150 years—has evolved into a benchmark for global mining standards. African countries, particularly those in emerging markets like West Africa’s Ghana, stand to gain significantly by accrediting South African training companies in their mining projects. The transfer of industry best practices from South African training partners to local companies addresses the crucial skills development objectives mandated by mining projects. This collaboration provides a unique opportunity for emerging markets to establish mining beneficiation programmes that make a tangible impact on their economic development.

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AS AFRICAN COUNTRIES SEEK TO MAXIMISE THEIR MINING POTENTIAL, CONSIDERING SOUTH AFRICAN TRAINING COMPANIES AS KEY LOCAL PARTNERS CAN BE A STRATEGIC MOVE WITH PROFOUND BENEFITS.

and standards that align with those of first-world countries. The Mining Qualifications Authority (mqa.org.za), with its 150 years of experience, plays a critical role in shaping the nation’s mining training landscape. South African training is characterised by a human capital development–oriented approach that focuses on competency training and assessments. Training modules encompass not only theoretical aspects but also practical components and on-site workplace integration. This ensures individuals not only acquire theoretical knowledge but also gain hands-on experience within the mining environment before receiving certification. Reputable South African training providers can guarantee a comprehensive learning experience that clearly addresses the gap in current training practices observed in some African markets.

Overcoming challenges changing TheSouthAfrican and perceptions advantage South African training providers distinguish themselves by adhering to rigorous regulations

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While there may be initial scepticism or stereotypical thinking regarding the capabilities of South African training providers,

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S K I LLS DEVEL OPMEN T

it is essential to dispel such notions. South African companies bring not only expertise on par with global standards but also a cultural understanding that resonates with their African counterparts. Overcoming the perception that training from South Africa may be inferior is essential to maximise the true potential of local partnerships. Addressing the lack of perceived career paths within the mining industry for locals is another challenge that South African training providers aim to tackle. By offering comprehensive training programmes and fostering a mindset shift, these providers seek to empower local communities, enabling them to envision long-term careers within the mining sector and gain employability for life.

Costeffectiveness and quality

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assurance

Choosing South African training providers over global counterparts presents a compelling economic advantage. The favourable exchange rate of the South African rand against currencies like the Australian dollar or the Canadian dollar makes training programmes not only more cost-effective but also highly competitive for African mining corporations. However, the emphasis should not solely be on cost; the quality of training provided by South African companies is comparable, if not superior, to that offered by their global counterparts.

EquippingAfrica’s mining sector for safety and effectiveness South Africa stands ready to provide benchmarked and best-practice training solutions to global standards, offering

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cost-effective alternatives while ensuring excellence in efficiency, safety and development. Positioned as an ideal local partner within Africa, South Africa— particularly in human capital development—holds the ticket to empowering local mining houses and communities for safe and effective operations. South African training providers are dedicated to entering African markets, fostering relationships and facilitating skills transfer, with the aim of enabling local communities to independently sustain their training and development initiatives. As such, embracing South African training companies as local partners represents a strategic move toward unearthing Africa’s mining potential, addressing skills gaps, fostering local partnerships and contributing to a sustainable and prosperous future for the African mining sector. Jacques Farmer Managing Director PRISMA Training Solutions prisma.co.za

safety

TRICKY TRANSITION Ensuring the safety of autonomous mining to minimise risk and downtime

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round the globe, the mining industry is undergoing unprecedented change to keep up with demand surges. Operators that are innovating and advancing, making use of new vehicle technologies to improve efficiency, are inevitably winning—capitalising on growth opportunities. One key trend, accelerated by the COVID-19 pandemic, is automation. Marcello Sanchez, global sales manager of Mining at Dafo Vehicle Fire Protection, discusses the mining industry’s transition to automation, exploring the different risks associated with it and how operators can overcome these to ensure maximum safety and minimum downtime.

An autonomous future Worldwide, the mining industry is looking at the benefits of automation to: • increase efficiencies and productivity;

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M A N Y M I N E S A R E A P P LY I N G ROBOTIC TECHNOLOGY TO MINING VEHICLES AND MACHINERY, ENABLING THEM TO OPERATE I N D E P E N D E N T LY A N D E F F E C T I V E LY • enable prolonged operations to meet surging demand; • enhance mine worker safety; and • reduce operational costs. Levels of adoption differ around the globe, with Swedish and Canadian mines leading the way. This transition is seeing many mines apply robotic technology to mining vehicles and machinery, enabling them to operate independently and effectively. Automation is realised in different forms for different mining sites, and may include: • Remote control operation— where human operators can control mining vehicles from a distance. This is generally used to enhance worker safety

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for equipment operating in dangerous conditions such as unstable terrain. • Teleoperated mining equipment—where mining vehicles can be controlled by human operators situated in remote locations. Again, this takes the operator further from any area of danger, as cameras and sensors remove the need to be in the vehicle’s line of sight. • Driver assist—where some functions and controls of the vehicle operation are automated, but need to be supported by human input. • Full automation—the ultimate direction of travel, where robotic components manage all critical vehicle functions. This is where the real productivity and

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safety

efficiency gains lie, as multiple vehicles can be controlled and monitored by a single operator.

Understanding andreducingrisk The shift to autonomous vehicles and machinery is evidently a critical step forward for the mining industry’s future, presenting a huge opportunity for growth and improved worker safety—a longstanding issue. However, this does shift the risks facing mines, bringing about new considerations that need to be addressed to ensure ongoing safety. As mines increase automation adoption, there will be fewer personnel on site, or in close proximity to operating vehicles and machinery (particularly where vehicles are operating underground, with operators

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situated overground). As a result, it can be more complicated to detect fire risks and action the necessary preventative measures quickly to minimise risk. This is seeing a growing need for automatic detection and suppression solutions, which are able to identify risk quickly, responding almost instantly to suppress risk—decreasing risk of downtime and limiting damage to the vehicle itself and any surrounding valuable assets.

Revisiting risk assessments The critical first step when introducing any new vehicles on machinery—autonomous or not—is refreshing the site’s risk assessment. That enables a greater understanding of specific risks that need addressing to ensure safety.

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Different systems are best suited to protect against different risks, so once you understand the risks, you can develop a tailored, fit-for-purpose detection and suppression plan around these.

Ensuringongoing safety Ultimately, addressing the safety of autonomous vehicles by revisiting fire detection and suppression solutions will: • enhance mine safety for workers; • diminish damage to valuable assets and equipment; • minimise downtime; and • reduce false system activations, as systems will be tailored to individual applications. Dafo Vehicle Fire Protection www.dafo-vehicle.com

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international

SECOND TIME AROUND Cleaning up Australia’s 80 000 disused mines is a huge job—but the payoffs can outweigh the costs

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international

ecently announced closures of Glencore’s copper and zinc mines in Mt Isa (t.ly/17EKq) will add to a huge number of former mines in Australia. A 2020 study (t.ly/dgJW8) by Monash University’s Resources Trinity Group found more than 80 000 inactive mine sites across the country. Globally, a 2023 study (t.ly/ Rbdoo) estimates the mining footprint at around 66 000 square kilometres; abandoned mines account for much of this area. It is estimated (t.ly/vQKhl) the United States has about 500 000 abandoned mines and Canada at least 10 000. The United Kingdom and China have at least 1 500 and 12 000 old coal mines, respectively. Abandoned mines can pose extreme environmental, health and safety risks (t.ly/RlLGR). Unreclaimed coal mines continue to emit greenhouse gases. Land is a scarce resource. Restoration enables sustainable and dynamic use of former mining land. It opens up golden opportunities: environmental, social and economic.

Environmental benefits Carbon farming Mine leases generally lock up vast

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land areas. This land presents a commercially viable, yet neglected, opportunity for carbon farming. For example, replanting abandoned leases could earn carbon credits under the Australian government’s Carbon Farming Initiative (t.ly/-aXIj). It can help 'hard to abate' industries such as mining move toward net-zero emissions. Sustainable and renewable energy Abandoned mines can also be used to produce and store renewable energy. Examples range from providing sites for solar farms to Green Gravity’s energy storage technology. Green Gravity (greengravity. com) uses a system of weights in a mine shaft to store energy from renewable sources. This energy is used to raise the weights. The energy can later be released when the weights are lowered under the pull of gravity. Another example is the former Kidston gold mine’s pumped storage hydro project (t.ly/25I9M). This system uses two water reservoirs in former open pits. Renewable energy is used to pump water into the higher reservoir. Releasing this water into the lower reservoir generates hydropower energy as needed. For abandoned deeper mines,

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tapping into geothermal energy could even make it viable to resume mining.

Water security Abandoned mines or quarry pits can store large amounts of drinking, harvested and recycled water (t.ly/gdgiO). This will help increase water security, especially when located near urban areas or industry corridors. Disaster prevention Another option is renaturalisation. This depends heavily, though, on location and mine type. For example, Indonesia (t.ly/x13OQ) has plans to restore forest on former mine sites to help reduce floods. These reforested areas will help retain floodwaters. Biodiversity restoration Nature-based approaches to mine rehabilitation include reforestation and phytoremediation, which uses plants to clean up contaminated environments. These approaches tackle mines’ legacy of pollution and add ecological value. Restored land allows for native species to be reintroduced. It can also provide bridges between patches of habitat to enhance biodiversity. In Victoria, this has been done with a former quarry at Royal Botanic Gardens Cranbourne (t.ly/Hafuh).

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international

Social benefits Improving urban liveability Renaturalised mines can be valuable communal and green spaces. Particularly when done in urban areas, it can provide residents with better air quality, microclimates and quality of life, as these sites support recreational and cultural activities. All Nations Park (t.ly/Hafuh) is another example of a quarry restoration just 7km from the Melbourne central business district. Education and tourism opportunities Restored mining land opens up educational, architectural (www.theprojects-quarry.com) and tourism opportunities. These range from hotels such as the InterContinental Shanghai Wonderland (t.ly/cbVHj)—most of it is underground—to ecotourism and education centres such as the Eden Project in the UK (www.edenproject.com).

inactive mines and tailings storages (t.ly/SGnC9). Mine waste processing could contribute billions of dollars a year to the economy (t.ly/hW2VB) and support regional jobs. Job creation Several large regions in Australia, including the Pilbara and Bowen Basins, face similar rehabilitation challenges. But each company is responsible for its own mine closure and rehabilitation. Current mining business models are not well suited for rehabilitation. However, the scale of the rehabilitation work required in a major mining region would support an entire regional industry. It could provide many local jobs after mines close. There are synergies between the many uses of restored mine sites. For example, Royal Botanic Gardens Cranbourne not only restores biodiversity but has also created an attractive space for people to gather, along with jobs and education opportunities.

Economicbenefits So what are the obstacles? Critical minerals Critical minerals are vital for batteries, electric vehicles and electrification needs. These minerals can be extracted from

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A mine’s rehabilitation costs may total hundreds of millions of dollars. These costs are often

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many times greater than what governments hold in rehabilitation bonds, which operators must provide as financial security before mining begins. Nevertheless, the financial and environmental consequences of inaction dwarf such costs (t.ly/3Cd6c). Globally, the costs of mine rehabilitation and closure liabilities run into billions of dollars. However, investments in green infrastructure have reached trillions of dollars (t.ly/QQFLQ). Some of these funds could be directed into rehabilitation and clean-up efforts, with the benefits of: • providing capital to 'kick off' and refine the collaborative work needed to deliver multiple benefits—as well as mining companies, this work involves many other organisations and individuals; • creating clear financial accountability for rehabilitation; and • generating business opportunities and sites for testing new sustainability practices and developing 'gold standards' for restoring and repurposing mine sites. A co-operative investment approach enables all partners to understand their shared responsibilities before any longterm expenses affect them individually. Strong governance, initial funding and collaborative development are needed to achieve environmental, social and economic outcomes that add value to mine rehabilitation. Mohan Yellishetty Associate Professor: Civil Engineering Peter Marcus Bach Honorary Adjunct Research Fellow Monash University

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human rights

THE RIGHTS OF COMMUNITIES MUST NOT BE TRAMPLED Industrial mining of cobalt and copper for rechargeable batteries is leading to grievous human rights abuses in the DRC

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Issue 12

FOSTERING ECONOMIC DEVELOPMENT

The Zimbabwe School of Mines as a catalyst for sustainable mining investments in Africa

In the realm of mining

investments in Africa, the Zimbabwe School of Mines (ZSM) stands as a beacon

and hands-on experience

Moreover, the school plays

ZSM plays a crucial

studies and experiments to

in various aspects of the mining industry.

for sustainable economic development. With a

role in driving economic development in Zimbabwe

workforce and promoting responsible mining practices,

continent. The school’s focus on providing

focus on fostering a skilled

this institution has become a catalyst for growth in the Southern African

Development Community. Located in the heart of Zimbabwe’s mining hub,

ZSM is renowned for its comprehensive curriculum

and state-of-the-art facilities. Its graduates are in high demand, both locally and internationally, thanks to their extensive knowledge

and the broader African

quality education and

training to aspiring mining professionals equips them

with the necessary skills to contribute to the growth of the mining industry. By producing a pool of well-trained graduates,

the school meets the demand for skilled workers in the sector, attracting investments and fostering economic growth.

a key role in research and development, conducting

promotes responsible

practices among its students and graduates. Responsible mining

improve mining techniques and technologies. This

practices have the potential to generate significant

not only enhances the efficiency and productivity

poverty and promote environmental stewardship.

research-driven approach

of mining operations but

also contributes to the overall advancement of the industry.

Africa is blessed with abundant mineral

resources, and responsible mining can play a crucial

role in wealth creation and poverty alleviation. ZSM recognises the importance of sustainable mining investments and actively

economic benefits, alleviate

By investing in education and training, promoting responsible mining

practices and engaging

with local communities, the Zimbabwe School of Mines is

driving the transformation of the mining sector in Africa. By Bryan Nyamayedenga For information on courses, visit www.zsm.ac.zw.

human rights

he expansion of industrial-scale cobalt and copper mines in the Democratic Republic of the Congo (DRC) has led to the forced eviction of entire communities and grievous human rights abuses including sexual assault, arson and beatings. In a report, “Powering Change or Business as Usual?” (t.ly/dECYI), Amnesty International and the DRC–based organisation Initiative pour la Bonne Gouvernance et les Droits Humains (IBGDH) detail how the scramble by multinational companies to expand mining operations has resulted in communities being forced from their homes and farmland. “The forced evictions taking place as companies seek to expand industrial-scale copper and cobalt mining projects are wrecking lives and must stop now,” says Agnès Callamard, Amnesty International’s secretarygeneral. “Amnesty International recognises the vital function of rechargeable batteries in the energy transition [t.ly/1xVUg] from fossil fuels. But climate justice demands a just transition. Decarbonising the global economy must not lead to further human rights violations. “The people of the DRC experienced significant exploitation and abuse during the colonial and post-colonial era, and their rights are still being sacrificed as the wealth around them is stripped away,” she adds. Growing demand for so-called clean energy technologies has created a corresponding demand for certain metals including copper, and cobalt, which is essential for making most lithiumion batteries. These are used to power a wide range of devices including electric cars and mobile phones. The DRC has the world’s largest reserves of cobalt, and the seventh largest reserves of copper.

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“THE FORCED EVICTIONS TAKING PLACE AS COMPANIES SEEK TO EXPAND INDUSTRIALSCALE COPPER A N D C O B A LT MINING PROJECTS ARE WRECKING LIVES AND MUST STOP NOW.” The average electric vehicle battery requires more than 13 kilogrammes of cobalt, and a mobile phone battery about 7g. Demand for cobalt is expected to reach 222 000 tonnes by 2025, having tripled since 2010. Donat Kambola, president of IBGDH, says: “People are being forcibly evicted, or threatened or intimidated into leaving their homes, or misled into consenting to derisory settlements. Often there was no grievance mechanism, accountability or access to justice.” Candy Ofime and Jean-Mobert Senga, Amnesty International researchers and co-authors of the report, say: “We found repeated breaches of legal safeguards prescribed in international human rights law and standards, and national legislation, as well as blatant disregard for the United Nations Guiding Principles on Business and Human Rights [t.ly/mJ4Iw].” To produce the report, Amnesty International and IBGDH interviewed more than 130 people at six different mining projects in and around the city of Kolwezi in

Issue 12

the southern province of Lualaba, during two separate visits in 2022. Researchers reviewed documents and correspondence, photographs, videos, satellite images and company responses. Findings at four sites are included in the report and abuses at three sites, involving forced evictions, are recounted below. At the fourth site, Kamoa-Kakula, the report found evidence of inadequate resettlement. Responses from the companies named in the report can be accessed at t.ly/Ub_6b.

Homesdemolishedas amineexpandsinto a city In the heart of the city of Kolwezi, long-established communities have been destroyed since a vast open-pit copper and cobalt mine was reopened in 2015. The project is operated by Compagnie Minière de Musonoie Global SAS (COMMUS), a joint venture between the Chinese company Zijin Mining Group Ltd (www.zijinmining.com) and Gécamines (www.gecamines.cd), the DRC state mining company. The affected neighbourhood of Cité Gécamines is home to about 39 000 people. The houses are typically multi-roomed and set in walled compounds with running water and electricity. There are schools and hospitals nearby. Since mining activities resumed, hundreds of residents have been told to leave, or have already had to move. Communities have not been adequately consulted, and plans to expand the mine have not been made public. Some residents found out their houses were to be demolished only after red crosses appeared on their properties. Edmond Musans, 62, who had to dismantle his home and leave, said: “We did not ask to be

strap

human rights

from COMMUS. The committee has shared its grievances with provincial authorities, to no avail. COMMUS told Amnesty International that it aimed to improve communication with stakeholders.

Housesburntand residentsinjured

moved; the company and the government came and told us, ‘There are minerals here.’” Evictees say compensation offered by COMMUS was inadequate to buy them equivalent homes. As a result, many have had to move to properties without running water or reliable power on the outskirts of Kolwezi, experiencing a shocking fall in their standard of living. They have no effective means of appeal or redress. One former resident said: “I had a large house, with electricity, water… Now, I have a small house that was all I could afford with the compensation… We have to drink water from wells… almost no electricity.” Cécile Isaka, another former resident, said blasting to enlarge the mine caused cracks so large she feared her home would collapse. With no other viable option, she accepted the compensation offer and dismantled her damaged property in 2022 so she could reuse the bricks to rebuild elsewhere. Musans helped form a committee to represent the interests of more than 200 households at risk of eviction, seeking higher compensation

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Near the site of the Mutoshi project, run by Chemicals of Africa SA (chemaf.com), a subsidiary of Chemaf Resources Ltd, which is headquartered in Dubai, interviewees described how soldiers burnt down a settlement called Mukumbi. Ernest Miji, local chief, said that in 2015, after Chemaf acquired the concession, three representatives of the company, accompanied by two police officers, came to tell him it was time for Mukumbi’s residents to move away. He added that the representatives visited four more times. Recalling one of the visits, Kanini Maska, a former resident, said: “Chemaf’s representative told us: ‘You need to leave the village now.’ We asked him: ‘Where would we go? It is… where we’re raising our children, where we’re farming land and where

our kids are registered to go to school.’” Interviewees said soldiers of the Republican Guard, an elite military force, arrived one morning and began burning houses, and beat villagers who tried to stop them. “We weren’t able to retrieve anything,” said Kanini Maska, 57. “We had nothing to survive on, and spent nights in the forest.” One girl, who was 2 years old at the time (and whom we have chosen not to name) was severely burnt, resulting in lifealtering scarring. Her uncle said the mattress she was lying on had caught fire. Satellite images support accounts that Mukumbi—which had once comprised about 400 structures including a school, a health facility and a church—was destroyed by 7 November 2016. Following protests, in 2019 Chemaf agreed to pay via the local authority US$1.5 million, but some former residents received as little as US$300. Chemaf denied any wrongdoing, liability or involvement in the destruction of Mukumbi, or directing military forces to destroy it.

Bulldozed crops andsexualassault

Near Kolwezi, a subsidiary of Eurasian Resources Group (ERG) (www.eurasianresources.lu), which is headquartered in Luxembourg and whose largest shareholder is the government of Kazakhstan, runs the Metalkol Roan Tailings Reclamation project (t.ly/0vp_t). Twenty-one farmers, part of a collective growing crops on the fringes of the concession near the village of Tshamundenda, said that in February 2020, without any meaningful consultation or notice of eviction, a detachment of soldiers—some with dogs— occupied the area while the field they had tended were bulldozed.

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human rights

One woman, whom we are calling Kabibi to protect her identity, described how she was trying to harvest her crops before they were destroyed, when she was seized by three soldiers and gang-raped while other soldiers watched. Kabibi, who was two months pregnant, required medical treatment. She told her family and village chief about the incident, but was too afraid to report it to Metalkol or the local authorities. Her baby was later delivered safely. She told researchers: “I’m a widow, I can’t afford to register my children in school… To date, I don’t have a job or other sources of income. I wander from home to home to find something to eat for my kids.” The farmers have repeatedly protested and advocated for compensation, but have not been offered effective remedy. In response, ERG said it had no control over the deployment of soldiers. It said the government determined the farmers’ collective had received compensation from a previous mine operator—which the farmers deny.

Stop forced evictions

The report urges the DRC authorities to immediately end forced evictions, instigate

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an impartial commission of inquiry, and strengthen and enforce national laws related to mining and evictions in line with international human rights standards. The authorities have carried out or facilitated forced evictions and failed in their obligation to protect people’s rights, including those enshrined in the International Covenant on Economic, Social and Cultural Rights (t.ly/FOyPa) and the UN Guiding Principles on Business and Human Rights. The military must never be involved in evictions. The companies’ claims that they adhere to high ethical standards have been shown to be hollow. They have a responsibility to investigate the abuses identified, provide effective redress and act to prevent further harms. All companies should ensure their operations do not harm front-line communities. Kambola adds: “The international mining companies involved have deep pockets and can readily afford to make the changes necessary to safeguard human rights, establish processes that improve the lives of people in the region, and provide remedy for the abuses suffered.” Callamard concludes: “The Democratic Republic of the Congo can play a pivotal role in the world’s transition from fossil fuels,

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but the rights of communities must not be trampled in the rush to mine minerals critical to decarbonising the global economy.” Amnesty International www.amnesty.org PHOTOGRAPHS 1 Cécile Isaka showing crack in her house caused by the activities of the Kolwezi copper and cobalt mine operated by COMMUS, February 2022 © Amnesty International/ Jean-Mobert Senga 2 A child in the compound of a home after it was marked for demolition to expand an energy transition mine, Kolwezi, September 2022 © Amnesty International/ Candy Ofime 3 Joseph Kitenge and his niece, who was severely injured during the destruction of Mukumbi, interviewed in the town of Kanfufu, 24 February 2022 © Amnesty International/ Candy Ofime 4 The remains of housing following evictions to expand an energy transition mine, Kolwezi, September 2022 © Amnesty International/ Jean-Mobert Senga