Koffiefontein Diamond Mine

KOFFIEFONTEIN

KOFFIEFONTEIN DIAMOND MINE

Petra’s Decade At

Koffiefontein PRODUCTION: Timothy Reeder

It is 10 years since Petra Diamonds, the London-listed diamond producing organisation, took over at the Free State’s Koffiefontein mine. According to General Manager, Lino Nkuna, the great success of the past decade has been the way in which the mine has propped up the local economy while still producing valuable mineral assets.

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INDUSTRY FOCUS: MINING

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The Koffiefontein diamond mine, located 140km west of Bloemfontein, and is one of the largest kimberlite diamond mines in the world by average carat value.

Purchased from De Beers in 2007 for R81.9m, current owners Londonbased Petra Diamonds has announced that a mine expansion plan will see production at Koffiefontein increase from 50,500 ctpa in 2017 to 85,000 ctpa by 2019. According to Petra, research into existing resources suggest that the mine could still have in excess of 20 years remaining. According to General Manager Lino Nkuna, this is

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remarkable for a mine that was first discovered more than 130 years ago and which has been supporting its local population ever since.

“We call it an antique mine” he says, “it’s one of those mines that you feel grateful to be associated with. The fact that after 130 years, it’s still going forward and looking strong, it gives you renewed energy to be part of it. There’s not many mines that you can take back to the 1870s – most of the current mines are at oldest from the 1930s. I don’t want to call it an old lady because she doesn’t look old and she’s still going forward.”

Currently, Koffiefontein uses a Sub-

Level Caving (SLC) mining method where all of the ore is fragmented by blasting and the host rock in the hanging wall of the ore body caves. This advanced mining method is easily mechanised and is usually investigated when open pit mining is no longer economically viable. Petra is keen on SLC and has implemented the strategy across a number of mines, including the Finsch Diamond Mine located some 260km north west of Koffiefontein (featured in the July 17 edition of Enterprise Africa).

But Koffiefontein is an expert in SLC and is regarded as an example to follow.

“We are a pioneer of SLC mining in

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INDUSTRY FOCUS: MINING

SA, we started before the Finsch mine and we moved from the block cave method. Currently, all of our mining is SLC,” says Nkuna.

The hope is that Petra’s mine plan will see production, through SLC methods, ramp up to 1.1 mtpa by 2019 at an average grade of 8.5 cpht.

“The expansion project started the moment Petra bought Koffiefontein,” explains Nkuna. “It’s a small volume mine but we had to go beyond the original depth of 490m and we’ve extended to 620m. We’ve added extra levels which hold seven million tons that we can still mine without expanding further.

The only thing we are building is a new crushing plant which should be finished by the end of the year.”

Currently, SLC mining is taking place across the 560-580 metre levels and the

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process is running smoothly. “It’s exciting I must say.

“The reason this old lady is still here is because our operation is not about just profit – it’s also about the community of Koffiefontein,” reminds Nkuna. “What we like to do is create a life for the people of the community and look after those people. We will do our level best to make the mine as productive as possible for as long as possible. The pipe is still going and we have put in place studies for the future, but right now we are concentrating on delivering the crush and getting the seven million tons out before we look at digging deeper and going beyond the 620m mark.”

PETRA’S 10 YEARS AT KOFFIEFONTEIN Petra has been running Koffiefontein successfully for a decade. After the

company took control in 2007, it quickly set about installing efficiencies and boosting productivity at the mine. Today, the Koffiefontein is known for very high value diamond production, unearthing white stones of exceptional quality and occasionally a fancy pink diamond. To date, the largest discovery came in 1994 when a 232-carat diamond was found.

Asked if there will be a celebration to mark 10 years of Petra involvement, and a successful turnaround from a mine that Petra started with in a care and maintenance programme, Nkuna says a function is being planned for the end of the year. “It’s in the pipeline.

“We went through a tough time in the month of September with industrial action but we are planning for the end of the year. It’s a big milestone to celebrate. We’re looking to acknowledge

KOFFIEFONTEIN DIAMOND MINE

//THE REASON THIS OLD LADY IS STILL HERE IS BECAUSE OUR OPERATION IS NOT ABOUT JUST PROFIT – IT’S ALSO ABOUT THE COMMUNITY OF KOFFIEFONTEIN// the people who have been a part of the project with Petra; remember when we took over the operation it was closed so we started in 2007 and we’re now looking back over ten years and we can’t acknowledge those years without the people who played a part. We hope to include all employees, suppliers, partners and community members in the function we are planning.”

Koffiefontein translates from Afrikaans to ‘coffee fountain’ and is so-named for its position in the country

where traders would take a rest break when travelling from the coast to the gold mines of the north. Riders would grind coffee beans by hand before using a nearby spring for water. The town was established in 1892 following the discovery of diamonds and the start of mining in 1870. Today, the mine is owned by Petra (74%), Kago Diamonds (14%) and Itumeleng Petra Diamonds Employee Trust (12%).

Nkuna highlights the impact of the mine, especially since the Petra

purchase, on the local community as the single most important element of the past decade.

“We currently employ around 300 people directly and give chances to many entrepreneurs. We are part of a social labour plan (SLP) that tries to develop local skills for the industry.

“We are committed to various projects through the social labour plan and we are reviewed each year.

We have just completed building a new soccer field and stadium, we’ve put in a pipe to supply water to the community, and we are in the process of building a crushing plant for brick making. We also donate money to the schools depending on their needs.

We don’t just wake up in the morning and decide to do these things – we engage with the community on what

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INDUSTRY FOCUS: MINING

KOFFIEFONTEIN DIAMOND MINE

they need and do our best to help.

The soccer field helps encourage the youth to participate in physical activity; we are in a desert area so the pipe has helped to alleviate drought in the community of Koffiefontein; and with the crusher plant and brick making facilities coming in, we will be creating employment. These are the things that make me proud and look forward to serving the community further.”

LONG-TERM FUTURE Current economic conditions have the seen the mining industry facing up to a less-than-favourable investment environment. Many miners have had to consolidate, as deposits become deeper and more challenging to extract on shoestring budgets. But at Koffiefontein, the economic impact is not concerning Nkuna and he remains confident about the ability of Petra to see through these tough times.

“For me, there’s not too much impact,” he says. “Yes, it’s concerning because if you produce a mineral that you cannot sell, you quickly decline.

But one thing that is encouraging is our mineral - diamonds don’t dry out or become old. If we can sustain production, even through instability in the economy, there will be a time where we can sell at a higher price. The more precious minerals you have, the better position you are in to negotiate and remember we compete with big companies like De Beers. If the economy is not in our favour, we will simply hold on to the minerals and negotiate a better price in the future.”

As for the feeling surrounding the future of the industry, where many are pessimistic, Nkuna expects positivity going forwards. So many talk of a ‘skills gap’ and a clear distinction between the goals of corporates and those of the front line but Nkuna says that he is witnessing a constant flow of hot prospects looking to mining as a career.

“People still believe in mining,” he says. “Statistically, safety has been improved across all mining houses

and there are many mining students who are very interested in coming into the industry. Every day, we get CVs of graduates who want to get involved in the industry and be trained by the industry, so for me it’s still the core business for many young people in South Africa. With technology coming in further improving safety, we are seeing quality, intelligent people coming into the business. I’m confident that South Africans still believe in mining as a career to follow.”

The General Manager has been at Koffiefontein for 12-months but his career spans more than 22 years in the industry, having previously worked for Goldfields before joining the diamond mining industry in 2012.

With the mine expansion plan, active community involvement, support from government, and research that suggests many more carats to come, the future looks extremely exciting for Koffiefontein and Nkuna is looking forward.

“There’s nothing more encouraging for the people than hearing that the mine life will be extended for another 10 years. The people of Koffiefontein have no other choice apart from working with this mine so their main concern is how long can we continue mining for and we have confirmed that there is potential for going deeper and that brings good vibes.

It is an exciting time and we are always looking forward,” he concludes.

KOFFIEFONTEIN DIAMOND MINE +27 11 702 6900 info@petradiamonds.com www.petradiamonds.com

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