First Mining Drc-Zambia May/June 2017

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1 MINING Central Africa’s Premier Business To Business Mining magazine May-June 2017 > Issue 23 > Vol.8 #

DRC-ZAMBIA $548 million cement plant to be built in Zambia -05

ALSO... Yes, it’s daylight robbery in the extractive industry -16

F MD R C - Z A MB I A

23

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Contents MINES & MINERALS

13

Vedanta seeks to quadruple Zambia copper output

HI TECH

20

FEATURED DEVELOPMENTS

NEW CURVEâ„¢ slurry pump surpasses all expectations

INNOVATION

06 The DRC is revisiting its mining code 12 Banro Corporation resumes operations at Namoya Mine

14 Copper producer plants Midnight Sun commences drilling Mitu Copper-Cobalt discovery 18 Cape Lambert to acquire 70% interest in Zambia cobalt project

26 FMDZ |

Analysis in simple terms

May - Jun 2017

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FROM THE EDITOR Ist Mining DRC-Zambia is Southern Africa's leading mining publication, that packs news, exclusive interviews, surveys, opinions from various experts, market trend data, nancial information, technology, equipment ,machinery and news of business development opportunities into the industry's best website and easy-to-read journal. One of the sectors starting to take advantage of emerging innovations is mining; hence we look at Seismic technology as way of enhancing ground support in mining. If one thing has remained constant throughout the history of mining, it is ground support. While techniques and technology have changed beyond recognition, the theory remains the same: no ground support, no mining – or at least no mining without serious risk to your health. Water scarcity is an unparalleled challenge especially to the mining industry of southern Africa. Most of the region is semi-arid to arid with low rainfall. Mining oen has a negative impact on water resources and the sustainability of these natural resources. Recently various mining companies have joined drives and organisation to report and decrease their footprint and impact on

Cover

the environment.

Redpath Mining Zambia possesses the world's highest-grade deposits of copper and is ranked

Editor

7th largest copper producer in the world for producing copper. In our

Bertha M. editor@fmdrc-zambia.com

sector.

country focus we look at the fall and rise of the Zambian copper mining Reform in the DRC mining sector is long overdue and hence, the government

Contributing Writers

of the Democratic Republic of the Congo (DRC) recently announced plans to

Anne Thomas, Mfuneko Jack, Lindani Mkhize and Caroline Thomas

reintroduce the shelved changes to the country's mining code. Giving back to the communities is one of the corporates main mandates in

Sales & Marketing

this age where we have dialogues around pro t with purpose and shared

Russou Billiard sales@fmdrc-zambia.com +27 11 044 8986

value. As part of the giving back, Konkola Copper Mines (KCM) will bring clean water to more than 6,000 inhabitants in some peri-urban areas of Chingola to support national efforts of maintaining high health standards in

Deward Sitali dewards@fmdrc-zambia.com +260 96 187 4888

communities. Welcome to another edition of your favourite publication, which we hope

Victor Ndlovu victorn@fmdrc-zambia.com

will enlighten and give more insights on the current affairs of the mining industry.

Cleopas M. cleopasm@fmdrc-zambia.com

Read more interesting stories packed in this issue, and until next time we hope you love this issue!

Mandla M. mandlam@fmdrc-zambia

Bertha M.

Professor M. professorm@fmdrc-zambia.com

Editor

Graphic Design and Layout Que Gibson quegibson@outlook.com

Published By Mailing Times Media sales@fmdrc-zambia.com www.fmdrc-zambia.com

Mailing Times Media (Pty) Ltd makes every effort to ensure the accuracy of the contents of its publications, but no warranty is made as to such accuracy and no responsibility will be borne by the publisher for the consequences of actions based on information so published. Further, opinions expressed are not necessarily shared by Mailing Times Media (Pty) Ltd

Circulation/Sales info@fmdrc-zambia.com +27 11 044 8985

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Mining NEWS

$548 million cement plant to be built in Zambia Zambia will build a $548 million cement plant in a joint venture between the nation's mining investment arm and China's Sinoconst, in an aim to diversify the economy to reduce reliance on copper mining. e building of the cement plan was commissioned by President Edgar Lungu recently. Zambia Consolidated Copper Mines Investment Holdings (ZCCM-IH) and Sinoconst will raise nancing for the project from local and international nancial institutions. Zambia's is Africa's second copper producer and the industrial metal is the main foreign exchange earner and a key employer. But the southern African nation has been trying to diversify away from mining to insulate itself from commodity price shocks by investing in other areas including agriculture. Lungu said the plant - to be built in Ndola in Zambia's copperbelt, about 400 km north of Lusaka - would be completed in three years and create roughly 1,000 jobs at construction stage.

www.axis.com/critical_infrastructure

"e copperbelt being a largely mining province and with the cyclical nature of this industry that has affected job security, I believe this project could not have come at a better time," he said. e plant will have a daily output of 5,000 tonnes of cement and will also have two 20 megawatt (MW) coal red power plants to provide electricity to the facility, Lungu said.

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Mining NEWS

e DRC is revisiting its mining code. Why reform is long overdue? e government of the Democratic Republic of

amendment process was suspended due to

the Congo (DRC) recently announced plans to

collapsed commodity prices and

reintroduce the shelved changes to the

industry opposition.

erce

country's mining code. e current mining code, introduced in 2002,

most debate were those that tried to reduce the tax advantages enjoyed by mining companies. e most important proposed tax changes to the DRC's mining code are:

It's now back on the agenda. As in the past a

was based on a dra prepared under the

major debate will ensue between the

auspices of the World Bank. Its primary

Congolese Government, civil society and the

§

increasing taxes on pro ts from 30%

§

increasing the government's stake in

to 35%;

objective was to relaunch the industrial mining

DRC mining indust r y. e st rongest

new mining projects from 5% to 10%

sector following the Congo Wars of 1996 to

opposition to the proposed changes comes

and;

2003 by opening it up to foreign investors.

f rom the large multinational mining

While it has been successful in achieving this

corporations, who argue that increasing taxes

goal, the bene ts to Congolese people are more

will hold back the sector's potential.

§

increasing royalties from 2% to 3.5% for copper and cobalt.

When compared to mining tax regimes in other

difficult to discern. However, a review of the major tax changes

African countries, the proposed changes do not

Today the DRC is Africa's largest copper

reveals them to align with regional standards.

place the DRC outside of the norm. Most

producer and the world's largest cobalt

e DRC's high operating costs are offset by

African countries demand a 10% government

producer. Its mining sector contributes 22% of

the equally high quality of its mineral deposits,

stake in mining projects. e proposed copper

GDP and 28% of government revenue. Yet the

and the current tax rate exerted over the sector

royalty tax is also within the range imposed by

most recent Human Development Report ranks

is low. In addition, reviving the reform process

many governments in the region, such as

the DRC 176 out of 188 countries, with a life

presents an opportunity to address a number

Zambia (6%), Ghana (5%) and Tanzania (4%).

expectancy of 59 and 77% of the population

of concerns related to transparency and local

Likewise, the DRC's proposed pro t tax is

living below the income poverty line.

development.

within the range of other countries, though it sits at the top end. Both Cameroon and Ghana

e latest round of changes were originally

Debunking industry myths

impose the same 35% pro t tax as the DRC is

submitted to parliament in March 2015, but the

In the past, propositions that provoked the

considering.

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Mining NEWS

But the mining industry's response to these

Tshimanga – prominent political economists

comparisons is twofold. ey say the DRC

working on the DRC – revealed a tax rate of 21%

current dra to address this loophole.

provides an extremely challenging operational

for one of the country's largest copper mines,

Lastly, for a number of years Congolese civil

environment, with exceptionally high transport

well below the World Bank's recommended

society has been pushing hard for

and power costs. And they say what matters is not

46% tax rate for the country.

improvements to the code on environmental

individual tax rates, but the overall tax burden

and local development issues. For example,

(including both formal and informal taxes).

Similarly, a recent scal study conducted by the

existing policy provides little guidance on

Both points are questionable.

German Society for International Cooperation

critical issues such as forced displacement. Only

found that between 2011 and 2014, total state

three of the mining code's 344 articles refer to

Costs, and the opaque world of taxes

revenue collected by the mining sector

the relationship between title holders and

A report published last year by the Natural

amounted to a mere 6 percent of total mining

people living in title holders' concessions.

Resource Governance Institute – which works

sector revenue for the same period.

w it h g ov e r n m e nt s on n atu r a l re s ou rc e

Time to seize the opportunity

management – shows the DRC's production costs

What's been le out

e DRC's mining code is 15 years old.

to be extremely favourable compared to regional

Yet there's a danger that the heated debates

Extremely advantageous scal incentives were

competitors. In 2013 the average production cost

about tax rates and royalties will drown out the

included back in 2002 to attract foreign

of copper in the DRC was $3,672 per tonne. is

urgency of addressing other big issues, many of

investors to the country. Yet they have

same cost was $4,582 in Zambia and $4,931 in

which have been le out of the dra revision.

minimised the bene ts of increased mining

South Africa.

Global Witness – a non pro t focused on the

production to the Congolese government and

links between natural resource exploitation,

people. e proposed tax changes bring the

High quality Congolese mineral deposits appear

con ict and poverty – has been calling attention

DRC up to date with today's regional standards

to offset high operational expenses to generate low

to these omissions. ese include the removal

and should be supported.

production costs (and therefore high pro ts).

of “crucial regulations banning politicians and

Indeed, last year the research rm BMI reported

senior army

gures from owning mining

But when the DRC's parliament reopens in

that the DRC will remain a “destination of choice”

rights”, an opaque tender process and

September, its members would do well to

for mining investors in the coming years due to its

insufficient bene cial ownership disclosure

incorporate civil society concerns on key

low production costs and high quality minerals.

requirements.

transparency, environmental and local development issues. Fail to do so, and

e concern about the overall tax rate as opposed

In addition, many mining companies have

Congolese people – particularly those directly

to individual tax changes is entirely legitimate. Yet

s i g n e d “c o n v e n t i o n s” w i t h t h e D R C

affected by mining projects – will be locked into

the few non-industry studies that exist suggest this

government that exist outside of the tax and

another decade or more of inadequate mining

overall rate to be extremely low. Research by

legal structure established by the country's

legislation. Change is long overdue, and the

Professors Stefaan Marysse and Claudine

mining code. ere's no provision within the

opportunity must not be missed.

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Mining NEWS

President Lungu commissions reconstruction of Mufulira-Ndola road As part of his tour of duty to the Copperbelt

For many years, residents of Mufulira in

minerals from the place of production to the

Province, President Lungu commissioned the

particular have been lamenting the bad state of

market place.

reconstruction works of the Mufulira- Ndola

the road.

road.

For instance, many sections of the road have

Apart from mining, farming is also another

President Edgar Lungu recently made history as

either been washed away or developed huge

major economic activity in Mufulira. It is

the rst Republican President to travel by road

potholes, some the size of craters, due to lack of

indisputable that farmers need good roads to

between Mufulira and Ndola and see for himself

routine maintenance and soil erosion during

deliver inputs to their farms and produce to the

the extent to which this important artery has

successive rainy seasons.

been destroyed due to many years of neglect.

market place. However, in the current state, it is difficult for

Due to the deplorable state of the road, travel

farmers in Mufulira to transport their produce

President Lungu deliberately decided to drive

between Ndola and Mufulira is a nightmare for

to Ndola and beyond.

to Mufulira in a convoy for what turned out to

travellers as it takes unnecessarily long to cover

be an on-the-spot-inspection of this vital link

the estimated 70km distance.

is in turn has potential to discourage many

that passes near Sakania, the Zambia-

When the road was in tip-top condition, travel

Mufulira residents from taking up farming as a

Democratic Republic of the Congo (DRC)

between Ndola and Mufulira would take less

business and a major source of income due to

border post, which lies some 30km north of

than 40 minutes but now it takes three to four

difficulties in accessing the market.

Ndola.

hours because the road is virtually impassable.

At a time when the country is positioning itself as a food basket for the region, there is need to

e reconstruction of the Mufulira-Ndola road

Mufulira is one of Zambia's mining towns

encourage more people to engage in farming,

is not only welcome but long overdue

endowed with mineral resources such as

and access to markets through good roads is not

considering the extent to which this important

copper-ore. It is indisputable good road

only a necessity but an incentive.

artery has deteriorated due to many years of

infrastructure is key to boosting mining

neglect. is has been compounded by the

activities as well attracting investors to the area.

natural effects of rainy seasons.

It is of no doubt the reconstruction of the

is is because good road infrastructure is

Mufulira Ndola road will go a long way in

needed to transport the copper-ores and other

boosting economic activities in Mufulira and Ndola.

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management@concargo.com


Mining NEWS

South African mining in crisis At the start of a 4am shi, gold miners scan their

being abetted by legitimate miners. Nash

month by South Africa's mining minister,

ngerprints and squeeze into tiny “mantrap”

Lutchman of Sibanye estimates that roughly

Mosebenzi Zwane, would force companies to

turnstiles, designed to prevent thieves from

3.5-4% of gold production across all of the

ensure that at least 30% of their shares are in

slipping through. en they pile into cages and

company's operations is lost to illegal miners.

black hands, up from the current minimum of

descend nearly three kilometres (2 miles)

Industry wide, they pilfer some 20 billion rand

26%. Under the new charter, companies would

underground at Sibanye Gold's Driefontein

(about $1.5bn) a year. Sibanye's tactical

be required to maintain this level of black

mine. A warren of increasingly narrow tunnels

response team has faced gun re and even

ownership regardless of whether black

leads to the reef, where miners blast a rock face

grenades while chasing aer zama-zamas.

rich with gold. It is gruelling work. Deep in the

investors sell out. ey would also have to pay out at least 1% of their turnover each year to

bedrock, the air feels as hot and humid as a

South Africa's mining industry is shrinking. At

their black shareholders. Had this rule been in

tropical jungle.

its peak in 1980, mining accounted for a h of

effect in 2016, black shareholders would have

the country's GDP; the number now stands at

got 5.8bn rand of the total of 5.9bn rand paid as

Most of the world's deepest (and historically

7.3%. High costs, low commodity prices, labour

dividends, leaving almost nothing for anyone

richest) gold mines are clustered some 70km

strife and falling productivity have all taken

else, notes the Chamber of Mines of South

(40 miles) south-west of Johannesburg. e

their toll. Mines have shed 70,000 jobs over the

Africa.

deeper they go, the more expensive and difficult

past

ve years. More cuts are coming.

the work of extracting the ore. Most mines are

AngloGold Ashanti, a gold-mining giant, last

e industry's top brass remain mostly white;

mature (Driefontein is 65 years old), and the

week announced plans to lay off 8,500 workers,

workers toiling in the mines are nearly all black.

cost of extracting the gold may soon exceed its

a third of its South African workforce. At

e government claims to be outraged about

value. Illegal miners known as “zama-zamas”

Sibanye, many of the zama-zamas are former

this; perhaps this explains why it draed the

(“taking chances”) are another problem,

miners who return to work underground for

new rules in such a hurry, without bothering to

undeterred by the extreme depths and high-

powerful syndicates.

consult mining rms. Whereas South Africa's

tech security. At Sibanye's nearby Cooke mine, a

rst-ever mining charter, introduced in 2004

recent wildcat strike had the unexpected side-

Mining rms are also being hurt by government

and revised six years later, was the product of

effect of ushing out 461 zama-zamas who were

policies. A new mining charter introduced last

extensive talks with the industry, the new rules

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Mining NEWS

were simply handed down.

South Africa is already a tough sell. In a 2016

(ANC), which is deeply divided as it prepares to

survey of attractiveness to mining investors, the

elect new leaders in December. e charter is

ey are also hard to understand. e Chamber

Fraser Institute, a free-market think-tank,

championed by President Jacob Zuma and his

of Mines has gone to court seeking to block the

ranked South Africa 74th of 104 mining

supporters, who have backed populist policies

charter, calling it “so confusing and confused,

jurisdictions, well behind neighbouring

under the guise of “radical economic

and so contradictory in its core provisions”, that

Botswana (19th), Namibia (53rd) and many

transformation”, perhaps to distract public

it has le mining companies and legal experts

other African countries. Meanwhile South

attention from a growing mountain of

perplexed. e chamber's CEO, Roger Baxter,

Africa dipped into a recession last quarter, and

corruption scandals. e deputy president,

argues that the new rules would deter

official unemployment has reached a 14-year

Cyril Ramaphosa, a former union leader turned

investment and put up to 100,000 mining jobs at

high at 27.7%.

businessman who is seeking to succeed Mr

risk. e charter's release triggered a sell-off of

Zuma, leads a separate faction that has called

South African mining stocks. A drawn-out legal

Adding to the confusion are differing messages

for the new charter to be reconsidered. e

battle is lo oming, which means more

from Mr Zwane and other senior members of

policy uncertainty will probably only end with

uncertainty.

his party, the African National Congress

change at the top.

info@nyumba.co.za www.nyumba.co.za

Tel: +27 (0)83 2700 555 FMDZ |

Fax: 086 612 2887

May - Jun 2017

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Company NEWS

Banro Corporation Vedanta seeks to resumes operations quadruple Zambia at Namoya Mine copper output Vedanta Resources Plc plans to quadruple its Zambian copper output over the next three years, the local unit's chief executive officer said, Banro Corporation is pleased to report that following the precautionary

signalling a more ambitious expansion in Africa's second-biggest

measures taken to evacuate staff from the Namoya mine on a temporary

producer of the metal.

basis, have now returned to Namoya and mining operations have resumed.

Most of the increase will come from Konkola Copper Mines Plc 's agship operation in Chililabombwe, near the Democratic Republic of Congo

Dr. John Clarke, president and CEO of Banro, says: "We would like to

border, where the unit is seeking to triple output in three years, said

thank the hard work and diligence of all of our staff in supporting this

Steven Din. e company is investing $1 billion in projects to achieve the

turnaround at the Namoya mine.

increase.

“We would also like to thank the support we received from both the

KCM has struggled to turn a pro t amid low metal prices and copper

national and regional governments of the Democratic Republic of Congo

output that fell to 94 000 metric tons in the 12 months through 31 March

“is support has been instrumental in the safe return of our employees

from 159 000 tons four years earlier. At the Konkola mine, the company

and contractors to site, and the safety of the supply truck convoy that was

produced 49 000 tons in the year that ended March 2016.

originally stranded in Lulimba and has now been released." “We are working on the design to be able to take the Konkola Banro is a Canadian gold mining company focused on production from

underground mine up from where it is today to about three times that,”

the Twangiza mine, which began commercial production 1 September,

said Din. “Vedanta has already invested just over $3 billion. Our intention

2012, and on production at its second gold mine at Namoya, where

is, with some more investment, to get those production levels up.”

commercial production was declared effective 1 January , 2016.

Vendata is now targeting raising overall production to 400,000 tons

Banro's longer term objectives include the development of two additional

within three years, an amount it said in April could take as many as seven.

major, wholly-owned gold projects, Lugushwa and Kamituga. e company has restarted operations at its Nchanga mine that halted in e four projects, each of which has a mining license, are located along

November 2015 aer copper prices plunged. KCM also plans to at least

the 210 km long Twangiza-Namoya gold belt in the South Kivu and

double output over 12 to 18 months at its tailings leach plant that extracts

Maniema provinces of the DRC.

copper from old waste dumps, Din said.

All Banro business activities are followed in a socially and

Zambia is Africa's biggest copper producer aer the Democratic

environmentally responsible manner.

Republic of Congo.

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FMDZ |

Email: info@copperalliance.org.za www.copperalliance.org.za

May - Jun 2017

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®

Tüfentobel RopeCon :

Material is passed over to second system in mid-air for even more exible discharge point Since the year 2005, a RopeCon® system has

material onto the new conveyor at a height of

been transporting inert material along a long-

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stretched valley at the Tüfentobel land ll site,

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which will eventually be back lled. e belt is

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being extended in several stages. It discharges

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the material onto a debris cone directly where it

requires no support structure of its own but

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system. e running wheels of the second

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installation return onto the track ropes on a set

Relocating the discharge point of Tüfentobel

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Long shut-down periods were thus avoided.

times as close as possible to the location where it was to be used. e discharge point has been

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point. In March 2016 a second RopeCon® was

dtt@doppelmayr.com

nally installed directly into the rope span of the

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original system, which now discharges the

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www.doppelmayr-mts.com

dtt@doppelmayr.com


Opinion

Yes, it’s daylight robbery in the extractive industry Historically Africa has always been a silent

I do not believe in economic diplomacy if it

government is a big mistake. Your Excellency

victim. First it was the slave trade followed by

shields and defends economic thievery.

Mr President, the majority of the re-appointees

plundering of natural resources, leaving our

Whoever said that investors will shy away is

are a liability to your administration. e earlier

populations in abject poverty.

misleading since the world will judge us on our

they are dropped the better. Back to the

merits and being victims of multinational

extractive sector, the question I ask is: how

Our own previous, greedy and unpatriotic

corporations. We should rather deal with a few

much is Africa bene tting from the extraction

leaders signed the mining contracts that hugely

but fair and honest investors rather than a

of its abundant resources?

favour foreign investors and this is why our

multitude of dishonest investors.

minerals are stolen right under our very own eyes without any shame. Enough is enough.

Natural resource extraction contributes more e report of the probe team led by Prof

than 30 per cent of Africa's GDP. According to a

Abdulkarim Mruma presented on May 24 is

McKinsey report, resource extractive industries

Notwithstanding the contracts, international

very clear and self-explanatory. In simple

"will continue to pro t from rising global

courts or an independent analysis of the sand,

language, these multinational extractive

demand for oil, natural gas, minerals, food,

this is daylight robbery that has to end. It is

corporations operating in Tanzania have been

arable land, and the like". So, how much is

better that these mines are closed and there is no

stealing our wealth and the painful aspect of

Africa gaining?

more exploitation than to lose our minerals. e

this the is that our own people are involved.

According to Carlos Lopes, the executive

simple question is: why are these mines still

ere is nothing sophisticated in this the -

secretary of the UNECA, "Average net pro ts

operational despite being reported that they are

they are just understating (under-invoicing) the

for the top 40 mining companies grew by 156

losing $1 million per day since sand exports

true value of what they are exporting.

were halted? Logically the mine owners should

per cent in 2010 whereas the take for governments grew by only 60 per cent, most of

have by now sought redress at international

e reappointing of ministers and other high

which was accounted for by Australia and

courts.

offi c i a ls f rom pre v i ous phas e s of t he

Canada."

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Opinion valuable investments in infrastructure, human capital, social services, and other public goods. is is the time when we need help from countries that are our bilateral partners but also host these multinational corporations to investigate these multinational corporations. Business transactions of these companies are illegal, morally questionable and exploitative. We do not ask for aid or charity. What we are asking is for these countries to investigate the dealings of these multinational corporations and provide us the ndings. is is an economic war and for one to fully participate and support our President, we should know the key elements of oil and mining He points out that the pro t made by the same

about equity or boost development."

contracts thus these contracts should be made

set of mining companies in 2010 was $110

public. Legislatures can play a crucial role in this

bi l l i on , w h i c h w a s e qu i v a l e nt t o t h e

I strongly believe that the extractive sector

merchandise exports of all African LDCs in the

provides huge opportunities for sustainable

same year.

development and poverty reduction if properly

e Public Accounts Committee in Parliament

"It is fair to say therefore that the resource-to-

managed with the right mix of policies and

and the Opposition can be a particularly force

development model puts raw materials

enforcement systems in place. e issue at hand

for safeguarding the management of public

process.

suppliers at a signi cant disadvantage. e

is, without exception, the high levels of public

assets and auditing state-owned enterprises.

conclusion that can then be drawn from this

sector corruption.

ere is only one solution to this saga - pay us

situation is that the current resource-for-

If accountably governed, natural resource

what was looted all this years or else leave us in

development model is not working to bring

wealth could be a boon to a society, enabling

peace.

Specialises in: *Schools & Institutionalised Catering * Industrial Catering *Mine Village Management * Club Canteen Management *Special Event Catering *Daily Delivered Traditional & Western Meals *Weddings * Premix Tea * Ofce Ingredients *Water Dispensers & Coffee Machines *Industrial & Commercial Food Service Equipment 38

Years

47 Plymouth Road, Southerton, Harare, Zimbabwe

Providing Cost-Effective Professional Catering Solutions

P.O Box HR10584, Harare, Zimbabwe Tel: (263-4) 620301-9 Fax: (263-4) 620300 Mobile: +263 772 565 823/824/825

E-mail: servcor@servcor.co.zw

Website: www.servcor.co.zw

FMDZ |

www.servcorshoppingcart.co.zw

May - Jun 2017

|

Page17


Projects Cape Lambert has signed a binding terms sheet

acquire a 70% shareholding in AMCZ."

t o e a r n a 7 0 % i nt e r e s t i n t h e K i t w e

Cape Lambert to acquire 70% interest in Zambia cobalt project

cobalt/copper tailings project in Zambia.

“ere will be obvious synergies available to us

Signed with Zambian entity Australian Mining

with our recently acquired Kipushi Tailings

Company Zambia (AMCZ), the agreement

Project located just over 170km away across

covers an area spanning 500m².

border in the Democratic Republic of Congo.”

Under the agreement, Cape Lambert will pay

Should the company choose to exercise its

$25,000 upon execution of the terms sheet.

option, it will have to make milestone payments

Following the execution, the company will

to AMCZ. ese payments comprise $50,000

incur an expenditure of $500,000 within a six-

upon receipt of an environmental approval, a

month option period to acquire a 70%

further $50,000 on the grant of a mining

shareholding in AMCZ.

licence, and a further $50,000 upon receiving an export licence for the Kitwe project.

Cape Lambert Resources executive chairman Tony Sage said: “e acquisition of this

Aer completion of the acquisition, Cape

signi cant high-grade cobalt-copper tailings

Lambert will be responsible for managing and

dam emphasises the company's commitment to

funding development of the project.

becoming a signi cant player in the cobalt sector.

e project is around 3km from the outskirts of Kitwe, in the Copperbelt region of Zambia.

"e company will incur an expenditure of

e transaction is subject to completion of a

$500,000 within a six-month option period to

due diligence, and the execution of a share sale agreement by 31 May.

Page18

| May - Jun 2017

| FMDZ


www.pilotair.com.au


Products & SERVICES

New tech-NEW CURVE™ SLURRY PUMP surpasses all expectations Pump and Abrasion Technologies® (PAT) unveiled

over 10 CURVE™ pumps installed and operating at

CURVE™ is cost saving. rough the use of the

its new CURVE™ range of pumps in September

the plant.”

latest design and technology, these pumps are highly durable and thereby reduce the Total Cost

2016. A prominent South African ferrochrome processing plant was among the rst companies to

Innovative Features

of Ownership,” Pienaar explains. “Along with this,

adopt this new technology by implementing a

e CURVE™ S150 model offers several innovative

the CURVE™ pumps boast a longer wear life cycle,

project to change all their pumps to the CURVE

features that makes it an ideal candidate to meet

are safer to work on and require maintenance less

range of pumps.

the client's operational needs. ese features

oen.”

e conversion project commenced with the

impeller vanes, adjustable throatbush, enhanced

include a one piece volute liner, fully pro led PAT has been monitoring the performance of the

rst CURVE™ pump on 1

cutwater pro le, and a clip-in suction joint.

rst pumps installed at the client's plant on an on-

November 2016. Since then, this pump's

Sealing performance and life have been addressed

going basis and the results underline the

installation of the

performance has surpassed all expectations while

by a larger diameter expeller and high chrome

CURVE's™ incredible operational capabilities.

being closely monitored to validate the actual

sha sleeve and lantern ring. e CURVE™ S150

“One of the most astounding results we have seen

performance of CURVE™ pumps in real-world

also features a discharge piece designed to

so far is a 73% reduction in downtime. e pump is

applications and conditions.

eliminate the need to remove the discharge pipe

only opened every third maintenance cycle due to

during routine maintenance.

its longer wear life. is was measured in

Operational bene ts

maintenance of the previously installed pumps,” says Pienaar.

comparison to the wear life and required

“is was in effect the rst true test of the CURVE™ S150 pump,” says James Pienaar, PAT sales director. “e changeover of all existing pumps at

According to Pienaar, the client has bene tted

the client's plant to the CURVE™ range is a process

handsomely from the installation of CURVE™

that takes time, but we are currently standing at

pumps. “e major bene t in investing in the

Page20

| May - Jun 2017

| FMDZ

Along with this, maintenance on the pump was


Products & SERVICES

reported as being easier and faster compared to

Total ownership cost reduced signi cantly

engineering is absolutely cutting edge and that the

experiences with previous pumps. is is due to

An astounding 52% reduction in total ownership

company can deliver on the claimed bene ts of the

the inherent features of pumps in the CURVE™

cost was reported with a number of factors

CURVE™ range.”

range. For instance - the pump's encapsulated one-

contributing to the reduction. Firstly, the pump's

piece volute liner reduces opening and closing

adjustable suction liner maintains optimal

Best solution

time by 80%; eye bolts allow for safe removal of the

clearances thereby reducing wear and improving

“e application at the client's plant is a perfect

casing; the casing assembly is a balanced load for

efficiency. en there is the one piece volute liner

example of what the CURVE™ range of pumps is

safe handling, and the discharge pipe no longer

that improves the liner wear life from 10 weeks to

able to do for a mine. Now there is concrete

needs to be removed when disassembling the

30 weeks. An assessment of the pump also

evidence that this pump is the best solution for any

pump thanks to the newly designed discharge

revealed that the CURVE™ pump impeller at 15

mine or minerals processing operation. e facts

piece.

weeks had visibly reduced wear compared to the

are there to prove that the CURVE™ slurry pumps

Pienaar elaborates on the report saying that the

previously installed pump at just 5 weeks.

save real money,” Pienaar concludes.

pump also reduced electricity consumption due to

Pienaar explains how these results prove the

its efficient design. “An 8% power reduction was

CURVE™ range's ability to outperform older

Maiden CURVE™ project

reported. is power saving is achieved

technology pumps on the market. “When we

During the rst quarter of 2017, PAT was awarded

throughout the life cycle of the pump. Slurry ows

examine the basic operating conditions of the

their rst all CURVE™ pump project. e project

through the pump in a more natural ow pattern.

previous pump and the CURVE™ pump in the trial

in a new technology

A uniform wear design means that the hydraulic

application, they are virtually the same. Both

included the supply of 13x S150 CURVE™ pumps

otation application,

pro le is maintained and efficiency remains

pumps have rubber liners and a 35% chrome

inclusive of motors and drives. e project was

'higher for longer'. ”

impeller. In terms of expected performance, both

initially proposed late 2016 and the order was

pumps offer 38 l/s and speci c gravity (SG) was

placed in February 2017 with delivery in March

Additional bene ts that the client reported with

unchanged at 1.5. e duty covered by both pumps

2017. What makes this project signi cant is that

this pump includes quick and easy dismantling,

is the transfer-to-plant with a particle size of 80%

the wear life of the pumps had to be guaranteed for

inspection and reassembly; improved safety when

less than 1.5mm. In spite of many similarities on

a xed period as part of the client's operation

working on the pump; excellent sealing over the

paper, the CURVE™ S150's performance is

methodology. is obviously made the CURVE™

trial period; and essentially choke-free operation.

outstanding. It proves that PAT's design and

an ideal candidate due to its high emphasis on total ownership cost reduction and service cycles.

FMDZ |

May - Jun 2017

|

Page21


www.cdeglobal.com



Products & SERVICES

Babcock’s new Volvo ADT and excavator launched Babcock launched the Volvo Construction Equipment's 60-ton A60H articulated dump truck (ADT) and 90-tonne EC950E crawler excavator. Babcock, the sole regional distributor of Volvo Construction Equipment, took the rst order for the A60H at bauma last year – for not one, but three of the massive machines, from South African company Burgh Plant Hire. e machines will work in the company's coal mining operations. Improved production e largest 6x6-con guration articulated hauler on the market, the 60-ton Volvo A60H has a payload capacity of 55 metric tonnes, delivering up to 40% more productivity than Volvo's previous largest hauler (the A40).

Several of the A60H features will be familiar to current series A40 operators, allowing operators to undergo a short orientation course rather than major retraining, and ensuring technicians familiar with other Volvo dump trucks will have knowledge of many of its elements. Superior digging force With over 424kN of breakout force and 408kN of tearout force, the 90-tonne EC950E is Volvo's largest ever crawler excavator, and combines power and stability to handle highcapacity duties in the toughest applications.

It works in all seasons, terrains and appl i c at i ons u s i ng t ai l ore d m a ch i n e con gurations and specialised tyres optimised speci cally for the machine, manufactured by Goodyear, Bridgestone and Michelin.

Page24

| May - Jun 2017

| FMDZ

e heavy-duty, fuel-efficient EC950 has been designed speci cally to load the massive A60H, with a powerful 16-litre engine, new electro-hydraulic control system, Volvo's unique ECO mode and an ergonomic, lownoise operator environment. e excavator comes with a standard bucket of 4m3 and Volvo's general purpose, heavy-duty or extreme-duty buckets, built with wearresistant steel plates, are perfect for digging in all working conditions, particularly in quarrying and mining applications.


Products & SERVICES e Challenge

e Anglo American success story

productivity due to the range of functionalities

e Anglo American Group of Mines' Survey

and impressive speci cations of the kit (faster

and Draing offices faced challenges with le

processing and printing, web connectivity,

limitations and support; severely affected

Embedded Web Server, HP-GL.2 driver, whole

productivity; major frustrations internally with

digitizing process phased out and replaced with

networking traffic volumes and congestion and

scanning); bigger

not having a consistent, standardized printing

limitations with Adobe PostScript drivers;

les support and less

and scanning kit across all platforms and sites

signi cant reduction in network traffic with

and outdated kit. is was esp ecially

much smaller les moving across the network

problematic with staff within the group being

with HP's patented HP-GL/2 driver (also the

moved to different sites within the company's

industry standard for accurate Vector data

portfolio, some having worked with the oldest

translation, transfer and scalable printing); staff

and most outdated kit and other with the latest,

moving between sites familiar with the kit,

top-of-the-range equipment.

drivers and functionalities of the models.

e Solution

Azero Avenue spearheaded this transformation

Standardising on HP's large format technical

of the large format printing environment at

production printer and High De nition

Anglo American. Users are used to 24-hour

scanner and eMultifuntion all-in-one machine

supp or t f rom qu a l i e d H P D e s i g nj e t

for a complete Multifunction solution across all

Production Specialist technicians; smooth

sites/shas with the necessary on-site technical

ordering and supplying of consumables;

support team on call 24-hours a day.

reduced down-time; preventative maintenance;

Bene ts and results

or downgrading sites, redeploying functioning

With the introduction and standardization of

kit to smaller and less busy sites, all done with a

experts advise and consultation for upgrading

the then production printer, the HP Designjet

full understanding of years of experience

4500 and 4500 scanner all sites saw increased

servicing the mining industry in South Africa.

marketing@azero.co.za

www.azero.co.za


Products & SERVICES

Analysis in simple terms My name is Jenny, and I want to nd out more about liquid analysis. For those like me, who do not have a background in technical studies, I use this section in each issue to explain in more

values. I'll explain why this is the case in

would be higher than the measured value. is

layman's terms. As a start, sensors with four

is called the polarization effect. At this point in

electrodes have two electrodes opposite one

time, the four-electrode measurement gets

another. An alternating voltage is applied to

interesting. In such measurements, the two

these electrodes. is ensures that positively

additional electrodes act as observers. ese

detail a different "piece of the puzzle" of our

and negatively charged ions are attracted to ions

two conductivity measurement watchmen keep

huge area of expertise. In this issue: the four-

of the opposite charge, causing them to move

a close eye on the polarization and report the

electrode conductivity measurement. If you need to measure conductivity across a wide measuring range using a single sensor, it's safe to say that "four wins". Only sensors with four electrodes deliver reliable measurement results spanning from low to high conductivity

Page26

| May - Jun 2017

toward each other. If the charge of the

deviation between the measured and actual

electrodes switches, the ions move back to

values to the transmitter. en, the corrected

where they started. A higher number of ions

(and correct) measured value is output from the

m ov i ng i n a l i qu i d re su lt s i n h i g h e r

transmitter, and this compensates for the

conductivity. But if there are too many ions,

polarization effect.

they repel each other, thereby inhibiting

For more information, please visit:

movement to some extent. is distorts the

http://bit.ly/Endress_Analytics

conductivity measurement: the actual value

| FMDZ


www.za.endress.com/primaries

www.za.endress.com info@za.endress.com susan.buitendag@za.endress.com


Products & SERVICES

LOESCHE can build on its good standing …and deliver more ver cal roller mills (VRM) for clinker to Vietnamese cement manufacturer Bim Son Cement JSC New order con rms LOESCHE's market leadership in Vietnam – there are a total of 35 LOESCHE mills in operation within the Southeast Asian country.

Contract signing with a delega on of Bim Son Cement and representa ves of LOESCHE GmbH

Bim Son - LOESCHE will soon be delivering a vertical roller mill for the grinding of clinker and granulated blast furnace slag for the Vietnamese company Bim Son Cement JSC. is supplements the existing Bim Son cement plant in the province of anh Hóa, the total capacity of which has recently been increased to 4 million tons per year in several stages. e new LOESCHE mill with a throughput of 250 t/h shall grind cement primary products into Portland cement clinker PCB 40. e ordered scope of supply includes a silo, blower, lter and a packing plant. With the delivery of the new clinker mill, which is expected to be commissioned in August 2017, and the LOESCHE cement raw meal and coal mills already in operation,

The LOESCHE cement mill in opera on in the cement plant Banyuwangi, Indonesia

the Bim Son factory is fully equipped with the reliable and pioneering LOESCHE mill technology. In addition to the advanced technology and the competitive price, the positive experiences with LOESCHE mills in the Bim Son factory thus far were decisive for awarding the contract to LOESCHE again: In the year 2000 the rst LOESCHE mill at Bim Son was comissioned, 2006 a further raw mill and a coal mill followed. Overall, LOESCHE is the market leader in Vietnam, having sold 35 mills. LOESCHE has been represented here since 1994, and since. 2010 it even has its own representation on site. Both the sales activities and the processing of projects are supported from there. Bim Son Cement – a subsidiary of the Vietnam National Cement Corporation (VICEM) – is one of the biggest cement manufacturers in Vietnam. e company is predominantly active in the building materials industry and produces, imports, exports and processes cement, clinker and other building materials such as ready-mix concrete and prefabricated part modules.

Thanks to the interference-free opera on of the LOESCHE mill, the team in the cement plant Banyuwangi, Indonesia, can work in peace.

Page28

| May - Jun 2017

| FMDZ


Company NEWS

Midnight Sun commences drilling the Mitu Copper-Cobalt discovery Midnight Sun Mining Corp. (the "Company" or

ore-shale potentially continuing along the full

and ZCCM Investment Holdings Plc, which has

"Midnight Sun") (TSX-V: MMA) is pleased to

17 km contact zone. e goal of the diamond

been in

announce the commencement of drilling on the

drilling is to test the dip extent of the ore-shale,

production since 1932 and still contains a

Mitu c opp e r- c ob a lt d i s c ove r y on t he

which is estimated by the NSAMT survey to be

m e a s u r e d a n d i n d i c at e d r e s o u r c e o f

Company's optioned Solwezi properties. e

3 to 4 kilometers at a 20 degree angle from

211,300,000 tonnes ofcopper and cobalt.2“We

Company has contracted Blu Rock Mining

surface.

are at a transformative time for the Company“

Services Ltd. to conduct a diamond drilling

said Robert Sibthorpe, President “is drill

program intended to further expand and de ne

NSAMT surveys are used extensively in the

programat the Mitu area should give us the big

the extent of the previously announced ore-

Zambia/Congo Copperbelt with known

picture - whether Mitu has the strike and dip

shale type copper-cobalt discovery (see news

efficacy in identifying the blanket style

extent topotentially develop into a world-class

release dated January 12, 2017).

deposition of ore-shale mineralization. Ore-

deposit.“While Mitu is the most advanced of

shale mineralization is the dominant form of

the Company's Solwezi property targets, the

A geophysical survey on Mitu, including 37

copper-cobalt deposition in the Zambia/Congo

earlier stage Dumbwa and 22 Zone areas remain highly prospective.

line-kilometers of natural source audio

Copperbelt, the largest single copper-cobalt

magneto tellurics

production area in the world. Mineralization is

(“NSAMT”) conducted by the Company,

associated with shale units which form

Quali ed Person: Richard Mazur, P.Geo., a

indicates a very large 'banana' shaped anomaly

chemical and physical 'traps' for base metals at

Quali ed Person under NI 43-101, has

running south of the initial discovery area on

or near the contact between the Upper and

reviewed and approved the technical data and

the western ank of the Solwezi Dome. is

Lower Roan units.

contents of this release. Mr. Mazur is a Director of t he C omp any and, as su ch , is not

favourable contact zone along the western ank of the Solwezi Dome extends for over 17

e sedimentary nature of these ore-shale

kilometers on the Company's optioned

deposits lends themselves to the potential for

properties.

both high grade as well as very large tonnage.

independent. Stock Option Expiration: 525,000 previously

Examples of this type of deposition in Zambia

issued stock options at a strike price of $0.25 are set to expire on May 31, 2017. e Company

Midnight Sun is currently conducting air core

include the Sentinel mine, owned by First

drilling to con rm the presence of the ore-shale

Quantum Minerals Ltd. (“First Quantum”),

expects these options will be exercised prior to

unit closest to surface as indicated by the

which has a measured and indicated resource of

expiration.

NSAMT survey. To date, this shallow drilling

over one billion tonnes of copper1, and the

(approximately 60 meters in depth) supports

Nkana copper-cobalt mine, jointly owned by

Robert Sibthorpe B.Sc.(Geology), M.B.A.

the NSAMT interpretation which indicates the

Glencore International AG, First Quantum,

President & CEO

FMDZ |

May - Jun 2017

|

Page29


Supplement

Zambia Mining Zambia possesses the world's highest-grade

Investment In Mining In Zambia.

program includes promotion of using other

deposits of copper and is ranked 7th largest

e privatization of the Zambia Consolidated

components of Zambia's resource base such as

copper producer in the world for producing

C opp er Mines in late 90s along wit h

agriculture, gemstone mining, tourism and

implementation of

hydropower.

copper.

scal policies in 2004

transformed the economic performance of In 2013, Zambia was the sixth largest producer

Zambia. Under the Mines and Minerals

Challenges To Zambia Mining Sector

of copper with 800,000 tons increasing from

Development Act 2008, the government

Zambia Mining Power Demand And Supply

572,793 tons production in 2008. It has been

simpli ed licensing procedures, created

With rapid economic growth and new mines

projected that copper production in Zambia

favorable investment environment and placed

development in Zambia, there has been a 36%

will reach 1,500,000 tons by the year 2018 due to

minimum constraints on mining activities.

new projects.

demand increase for power in the past decade. is increase in electricity demand means that

As a result the mining sector of Zambia in the

26% of Zambia is affected by load shedding

e mining contribution of Zambia to the Gross

last two decades has experienced tremendous

usually at peak times.

Domestic Product is forecasted to grow to USD

growth and investment. e mining industry of

1.35 billion by the year 2015. Lead and zinc are

Zambia attracted investment of approximately

Hydropower is the primary electricity supply

next important commodities produced by

USD 8 billion since the 2000 employing 80,000

mode for Zambia accounting for 95% power

Zambia. With a total of 11 metric tons of ore

in 2013 compared to 27,000 in 2000.

production. e height of electricity generation

containing zinc and lead combined in 40%

It has been forecasted that the investment in

occurs usually in the rst half of the year during

proportion, Kabwe is one of the highest-grade

mining sector of Zambia will reach USD 15

rainy season Zambia whereas the mining sector

lead and zinc deposits in the world.

billion by 2017 due to new projects under

of Zambia is highly productive during the

Although Zambia is currently the smallest coal

implementation.

second half of the year when the generation of

e Zambian government is focused on

e load shedding is responsible for decreasing

producer in the region, their coal output is estimated to grow from 281,000 tons in 2014 to more than 2 million tons by 2017.

Page30

| May - Jun 2017

hydropower is lower. economic diversi cation to reduce its reliance

the overall efficiency of mining sectors that

on the copper industry. e diversi cation

roughly consumed as much as 60% of total

| FMDZ


Supplement

generated power of Zambia. Zambia Electricity

However the low traffic densities of Zambia's

Supply Corporation (ZESCO) is the sole

railway are below the viability threshold of at

·

Uranium: In Zambia, there are various uranium deposits available

electricity producer. From 2005 to 2014, the

least 2 million tons per kilometer. is is

in different areas. Many companies

demand increase has been in alignment with

making it difficult to capture the revenues

have carried out uranium

ZESCO's 2006-2016 projects of further 100MW

required to maintain assets. In order to develop

explorations in Zambia with a

per annum. ZESCO current power production

a better rail network, an agreement of rail co-

special focus on potential

capacity is however creating a persistent

operation between Zambia, South Africa,

mineralization in the Copperbelt,

problem for the mining sector. Zambia ful ls

Democratic Republic of Congo and Zimbabwe

Karoo Age sediments and the

the gap between electricity demand and

is under progress which will allow increased

Domes region of the Northwest

production by importing electricity from the

export of copper by copper rich countries

South African grid. Coal increasing production

through the Port of Durban in South Africa.

Province. Coal: coal is mined at the Maamba mine that

levels are expected to alleviate a larger part of

e Zambian government is also planning to

has 20 million metric tons of reserve. e coal

current electricity de cit of Zambia as power

invest USD120 to revamp rail line linking South

found in this region is sub-bituminous

plants can utilize coal production. In order to

Africa with copper producers to move use rail

durain-fusain with relatively high ash content.

support the mining sector of Zambia, ZESCO

as the primary mode of transportation.

Carbonaceous shales and thin coal seams have

Investment Opportunities In Zambia Mining

Bartose Basin and lower Karoo of the

Investment prospects in the mining sector of

Luangaw and Luano-Lukusashi.

has established partnerships with local and international rms to invest USD 4.7 billon. is investment is expected to double power

also been identi ed in the eastern part of the

Zambia include:

capacity to 4,203MW within six years. Kafue, MCM Mufilira Leach ponds

Gorge Lower Hydro Project, the largest of power projects is a joint venture between SINOHYDRO of China and ZESCO to generate 750MW of power at a cost of USD 2 billion.is project will complete in 2018. Zambia Mining Railways Network Rail network is very crucial for mineralexploiting economies like Zambia, being the most competitive mode of transport for time insensitive and bulk commodities such as copper.

FMDZ |

May - Jun 2017

|

Page31


Supplement

New technology changes the face of mining New technology in mining is set to affect the

companies are now focusing intently on the use

mine's survey plan is oen not completely

entire mining process and all activities

of drones to improve blasting quality. For

accurate or up to date, potentially reducing blast

associated with it, including maintenance.

example, Johannesburg based explosives and

quality.

technology company BME has established a

“By using drones, we can generate high-quality

Met ic u lous planning and its effe c t ive

high-technology service unit to advance the

aerial imagery of the blast site aer holes have

implementation are essential in preventing

application of drones in mine blasting activities.

technology can play an important role in

According to BME technical director Tony

improving the maintenance regime. Haul road

Rorke, drones

conditions in an open pit, for example, can be

cameras and guided by computer systems using

tted with high-resolution

improved with new products available to mine

global positioning system (GPS) survey data

managers, which would reduce the cost of

have proved invaluable in improving blast

maintaining the

quality.

eet of trucks and other

been drilled, capturing the exact GPS coordinates of each hole,” he adds. “e position

downtime of all mining equipment. New

of each hole is surveyed and then marked so that it is easily identi ed in the footage from the drone as it passes overhead.” e actual blast-hole positions can then be referenced exactly to the survey co-ordinates of the mine, to allow accurate measurement of the

equipment operating in the pit. However, new technologies like drones are set to take the

“We apply a range of modern technologies like

variables necessary to plan an optimal blast.

mining industry by storm. Drones have been

drones to help us plan, monitor, and execute

e co-ordinates are exported into a blast

used in a number of applications in quarrying

blasts in ways that optimise our clients' results,”

timing design program and into the electronic

and mining, but its application to plan and

says Rorke. “e downstream impact can be felt

detonator system so that the appropriate ring

manage effective blasts in an open pit has

in a range of bene ts to mining productivity,

sequences, timing, and charge distributions can

probably had the most signi cant impact. e

such as

way a blast is planned and executed is absolutely

rates, and reduced power consumption in mine

ner fragmentation, higher digging

pivotal in extending the life of equipment

crusher circuits.” Rorke emphasises the bene ts in being able to

operating in the trenches. erefore, it is noteworthy that blasting

Page32

| May - Jun 2017

be applied to the blast, based on the exact positioning of each hole.

While great strides have been made in

adjust the timing of a detonation in a blasthole

surveying and drilling blastholes, Rorke says a

— as well as

| FMDZ

ring sequences and charge


Supplement distribution — to take account of any slight

Aer a blast,

divergence of a hole's actual position compared

drone images

with its place on the survey plan.

from above

“Unless we measure, we are only guessing; so

clearer picture

give a much better measurement — both before, during, and

of where

aer a blast — is the key to optimising blast

c o ars e r an d

results,” says Rorke. “Drones advance our measuring ability greatly when combined with

n

e

r

fragments are

other in-house tools like our blast planning

lying — and in

soware together with our electronic detonator

what relative

system.”

quantities.

e versatility of a drone as a vehicle for the

It may even be

camera also extends to valuable monitoring

possible to use

functions during and aer the blast. What

the images as a

experts can take from the images and graphics is

basis for

a clearer understanding of what block faces look

actually

like, and whether there is any damage or

measuring

potential problems resulting from the drilling.

fragment size BME drone image

in a more “Sampling, measuring, and quantifying the

scienti c way.

fragmentation achieved by a blast is much easier

“We currently

when done from an aerial scale image that a

take post-blast

drone can deliver, making the analysis much

photographs,

more useful in improving future blasts,” says

but it is

Rorke. “e distribution and volumes of

difficult to

fragment sizes are important to monitor, as

interpret these in a way that is statistically

dimensional surface of the blast block, by

these are vital to continuous improvement

valid,” says Rorke.

combining the aerial drone imagery and the

strategies,” he adds.

Soware now also allows the creation of a three-

face pro le footage from land-based cameras.

sales@truflopumps.com.au www.truflopumps.com.au

FMDZ |

May - Jun 2017

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3D Modelling and Mine planning solutions 3D modelling technology is rapidly becoming a

efficiency and safety. Today, it is easier, quicker

the 70's as the gold mining industry became

vital component of mining projects. and has

and cheaper than ever, and with all the new

increasingly important to national economies

been used widely in various trades. Geological

types of soware available, there is an

and wasteful mining was not acceptable so

body enrich mineral resources, and the spatial

appl i c at i on for a l m o s t e ve r y t y p e of

mining houses began to develop computer

shape and petrophysical distributions of

exploration.

programmes that could help them with

conditions.

Being one of Africa's largest industries, mining

development was outsourced to third parties

is understandably up-to-date when it comes to

including universities and commercial

e ever-growing capabilities of 3D modelling

technology. We have featured a number of

computing specialists and 3D soware became

and design soware are possibly the most

innovations in the past that have changed the

important as the environmental impact of new

potent reminder of the distance the mining

way the mining business works, making things

mines is now more closely scrutinised than ever

industry has come in the last 20 years. With

safer and more efficient and, of course, 3D

before.

soware packages able to perform geospatial

technology is being used here too.

analysis and lay out production facilities before

Modern soware applications, developed by

geological body are controlled by geological

efficiency. Eventually, most of the soware

e graphical element offered by this type of

rst ground is broken, the industry should (and

companies such as Maptek Vulcan, GOCAD,

soware holds the key to its success and

oen does) exploit this technology to reduce

Leapfrog, Micromine and MineSight, use 3D

obviously the 3D components offer a more in-

risk while increasing safety and efficiency. Developing a 3D model of an underground

modelling to provide highly accurate planning

depth idea about the geology and make-up of

tools that are helping all aspects of raw mineral

certain areas. Most of today's modern graphical

research.

cavern, tunnel, mine or drill hole is now a vital part of the mining industry as it improves

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| May - Jun 2017

technology used in 3D mining soware is based on well-established programmes such as

Mine planning soware rst came to the fore in

| FMDZ

OpenGL (SGI), DirectX (Microso) or Java


Supplement

(Sun). is means a more standard, stable and

is sort of technology is also extremely handy

Geotechnical interface for open-pit mining

user-friendly soware, across the whole

in industries such as forensic examinations and

design

industry. 3D computer graphics, or 3D models, are

crime scene investigation, automotive

During the last ten years, Tect has formed the

manufacturing, archaeology, and agricultural

interface between complex structural geology

research to name a few.

and geotechnical analysis, predominantly in

essentially mathematical representations of any three-dimensional object and the process of

open-pit mining and pit design. Detailed 3D With the mainstream applications of 3D

modelling and mapping form an essential

forming a computer model of an object's shape

technology now consistently growing in

component of this work.

is called 3D modelling, a technique that can be

ingenuity and popularity, it seems certain that

u s e d to c re ate v i r tu a l d i ag r am of an

we have only scratched the surface of what is

Predictive modelling for mining exploration

underground mine or drill hole.

possible within both the entertainment and

Tect's other focus area is forward or predictive

So how is a 3D graphic of a certain area actually

research sectors.

modelling, for the purposes of target generation

built? e technology used is similar to the

during exploration. is work has contributed

sonar radar used in a boat or submarine where a

Tect Geological Consulting-

signi cantly to the understanding of structural

pulse of sound is emitted and the echoes are

Specialists in Structural Geology and Ore-

controls on a wide variety of deposit types,

measured to determine distance between the

Structure Relationships

including those containing gold, base metals,

boat and the seabed. In a mine, sound or light

Since Tect Geological Consulting was founded

platinum and diamond.

(sometimes lasers) is used in the same way.

by Dr Ian J Basson in 2000, the company has

With a Lidar (remote sensing technology),

serviced in excess of 50 clients throughout

Geotechnical mining data compilations and

lasers illuminate targets and when the light is

Africa. Tect's main focus is the application of

deposit reviews

re ected it is analysed so that distances and the

structural geology and mineralogy to the

Oen forming part of Tect's geotechnical or

way the surface lies can be pictured. is has

understanding of mineral deposits, either in

exploration work, data compilation involves the collation, digitising and plotting of data.

proved hugely advantageous to miners looking

mining or exploration projects. e company

for progress reports as weekly or monthly scans

emphasises problem solving, lateral thinking,

can be taken and turned into easy to understand

and the application of recent models and

Data compilation and translation, from a

3D models so that it is clear exactly how much

techniques in the

variety of projections and formats into a single

volume has been moved.

economic geology.

elds of structural and

data set, oen forms the

FMDZ |

May - Jun 2017

rst stage of 3D

|

Page35


Supplement

modelling or analysis for a client. Such work is

Our approach is not one of 'rubber-stamping' or

numerous clients and is currently the preferred

particularly applicable to archived data from

simply reworking existing data; rather, we seek

provider of geophysical interpretation services

previous exploration projects or government

to add real, quanti able value to our clients'

and structural interpretation services to New

data in developing countries.

mining or exploration ventures. î ˘is approach

Resolution Geophysics and its clients. Major

includes a no-charge, follow-up policy – clients

clients include Anglo Platinum, AngloGold

Deposit reviews, which may include a

are entitled to contact the company for

Ash ant i, L on m i n Pl at i nu m , Nor t h am

component of data compilation, are undertaken

additional information or to discuss new ideas

Platinum, De Beers Consolidated Mines,

for nancial institutions or individuals. î ˘ese

that have resulted from the consulting and

Debswana, Rio Tinto and Kumba.

reviews may culminate in a report that typically

reporting phases. Partly as a

details the quality and extent of data, potential

consequence of this approach

green eld or brown eld exploration projects,

and Tect's 100% safety record,

or a professional opinion on a given mining

many of Tect's clients have

operation or deposit.

awarded us 'preferred supplier' status for structural-economic

Individual and specialised geotechnical

geology work.

services While conforming to industry standards in

Geophysical interpretation

t e r ms of appl i c abl e t e r m i n ol o g y an d

and structural interpretation

techniques, Tect provides individual and

projects

specialised services for both large and small

Tect has undertaken eldwork

companies.

in 14 African countries for

info@tect.co.za www.tect.co.za


Company NEWS

KCM to bring clean water to over 6,000 villagers Konkola Copper Mines (KCM) will bring clean

boreholes KCM will sink aer the rst one in

corporate social responsibility (CSR), which are

water to more than 6,000 inhabitants in some

Shimulala, which is providing water to a

education, health, sustainable livelihoods and

peri-urban areas of Chingola to support

separate 2,000 people. Mr Tembo said the

sport.

national efforts of maintaining high health

installation of boreholes would alleviate

standards in communities. A company official said four solar-powered boreholes will be sunk in different locations to provide clean water to the residents. “e company has commenced the installation of the four water facilities which comprise of boreholes and water ltration units at Kalilo, Hellen, Kakosa West and Hipp o Po ol communities,” said KCM Manager Community Relations, Brian Siatubi. Executive Mayor of Chingola Titus Tembo was represented by his deputy George Kampamba to lead a team of experts at a ground-breaking ceremony to commence the sinking of the boreholes. is brings to ve the number of solar-powered

problems of water in the areas and improve

“Konkola Copper Mines fully agrees with the

sanitation and hygiene.

a d a g e t h at ' w at e r i s l i f e ' a n d w e a re

He described the initiative as 'a strong

at a cost of seven hundred and sixty six hundred

commitment to improving the lives of people in

kwacha (K766,000),” Mr Siatubi said.

demonstrating this belief by sinking boreholes

KCM's areas of operation.' e model of KCM's water projects is tailored “ e installation of boreholes is a

onshared use of water facilities in communities

demonstration of KCM's strong commitment

and partnering with the government on

to its Water Sanitation and Health (WASHE)

projects promoting community development.

pledge and a major contribution to sustainable development goals promoting universal and equitable access to safe and affordable drinking water,” Mr Tembo said. Mr Siatubi said the water project was part of KCM's focus to upli people's standards of living anchored on four pillars of the company's

FMDZ |

May - Jun 2017

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Supplement

Mining ground support-seismic monitoring Mining has always been an industry where risk

Seismic activity can impact underground

purpose of creating good ground support to

is balanced against reward, and safety is played

mining operations and the associated surface

maintain safe excavation. Seismic monitoring

against cost. But with pressure mounting on

infrastructure in several ways, from the damage

equipment is used in order to identify both

global corporations to demonstrate due

caused by naturally occurring earthquakes to

potential hazards caused by changing ground

diligence, seismic monitoring is coming to the

rockbursts, the explosive fracturing of rock in a

conditions, and to maximise mine production

fore.

mine sha that may be caused by natural or

through preventing seismicity related delays.

If one thing has remained a constant

Despite the serious dangers, the majority of

induced seismicity. Seismic monitoring helps locate areas where

throughout the history of mining, it is ground

mining operations, even in seismically active

rock mass failure is causing seismic events. A

support. While techniques and technology have

regions, take few precautions to mitigate the

seismic event can generally be described as the

changed beyond recognition, the theory

risk or monitor seismic activity. Although mine

vibration of rock, slipping or breaking,

remains the same: no ground support, no

operators could be forgiven for assuming that

something common in an underground mine

mining – or at least no mining without serious

earthquakes and similar natural events

setting, with constant drilling and blasting.

risk to your health.

represent a risk that is impossible to predict or

While most seismic events are minor, stress

Subsidence and sinkholes are the surface effects

guard against, options exist and are being

change events for example rarely register more

of solution mining. Apart from damage to

implemented in other industries.

than 0 – 0.5 in Richter magnitude, larger events, such as fault slips, can register as much as up to

economic production, such events are now of environmental concern. e control of cavity

Understanding mine seismicity

+5 and cause considerable damage to

evolution and its effect is thus a problem which

e key to a mining operation is to understand

operations.

requires serious examination.

the seismicity of rock mass, with the primary

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| May - Jun 2017

| FMDZ


Supplement By understanding rock mass behaviour, mining companies can begin to assess the size of any potential hazards. How it works Advanced microseismic sensors and tiltmeters are installed at strategic places around a mine to measure ground vibrations. î ˘ese are then picked up by a digital seismic data recorder that acquires and processes the data to build an accurate picture of seismicity through 3-D modelling techniques. Data is continuously transmitted to the surface and can be accessed through the internet in real-time from anywhere on the planet. It is not all about safety either, for if mine operators increase their knowledge of the rock mass, they can enhance productivity through reducing downtime and deploying their workforce away from areas that are experiencing heightened seismic activity. Mine

changing, mine design and sequencing can be

loom large. In a growth industry driven by

design is another area that bene ts from

optimised at an earlier stage in the life of a mine.

corporate giants where safety, problem solving

microseismic monitoring; through

If you were to cast an eye to the future however

and productivity are paramount, it ticks all the

understanding how ground conditions are

microseismic monitoring would be sure to

right boxes.

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May - Jun 2017

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Underground mining transport We consider innovations in underground

mines to adopt automated haulage and

e US' National Institute for Occupational

mining transport globally and how these

transport systems. BHP Billiton has also started

Safety and Health (NIOSH) has developed an

innovations can help keep mineworkers safe.

experimenting with driverless trucks and an

active proximity warning system, called the

automated remote operating centre for its iron

Hazardous Area Signalling and Ranging Device

e transportation of bulk and non-bulk

ore operations in the Pilbara region of

(HASARD). It warns workers by means of

materials in the mining industry is a complex

Australia. Vale has elected to make its Carajas

visual, audible and vibratory indicators that

task. Increasing customer demand for efficiency

Serra Sul S11D iron ore mine automated and

they are approaching dangerous areas around

requires that transportation becomes more

completely truckless. Rio Tinto has announced

heavy mining equipment. Equipment giant

accurate, exible, and faster than ever before.

that it will deploy the world's biggest

Caterpillar has also developed detection

And, not only are mining companies having to

underground automation system for block

technology called Cat Detect Personnel, which

overcome the challenges these demands bring,

caving operations at the Argyle underground

features as one of the ve sub-modules of its

but they are being forced to do so while keeping

diamond mine.

costs to a minimum.

integrated mining management suite, Cat MineStar. e technology involves radio

e bene ts of automation

Close encounters

frequency identi cation (RFID) tags to be worn

Collisions between pieces of machinery or

by workers, with the detectors mounted across

Mining companies around the world are either

between machinery and people are a common

the machines to warn operators via audio and

using or considering using automated mining

cause of accidents in both underground and

visual indications of possible collisions,

technologies. De Beers Finsch's diamond mine

op e n - pit m i n e s . Prox i m it y d e t e c t i on

speeding or rollovers.

in the Northern Cape, South Africa; Codelco's

technology can be installed on mobile

All these innovations are helping to make the

El Teniente copper mine in Chile; and Rio

machinery to detect the presence of workers or

mining industry and mineworkers safer.

Tinto's West Angelas mine in the Pilbara region,

machinery within a certain distance of the

Australia, are among the

machine, thus helping to prevent accidents.

Page40

rst underground

| May - Jun 2017

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Supplement

Innovations down under

Automation for

Australia is one of the

underground and above

world's biggest

ground haul trucks

mining countries,

provides opportunities

and t he i r r ate of

for increased safety, as

innovation in mining

well as higher material

transport and

haulage rates per vehicle.

logistics has steadily

For logistics and

grown over the past

production in minerals

decade as companies

supply chains, the

address productivity,

development of ICT,

c o m p l e x i t y, a n d

automation and

c ap i t a l - e ffi c i e n c y

decision-support

challenges. is is

te ch n ol o g y i s b e i ng

according to a white

actively and rigorously progressed by various

paper written by Dr Simon Dunstall, a

Australian ports, for example, have at least one

research and commercial

senior research scientist at the Commonwealth

simulation model for generating insights into

organisations around the world. e continued

Scienti c and Industrial Research Organisation

future port expansions and operating

engagement of this R&D (especially in

(CSIRO).

procedure changes.

Australia where it is a particular focus area) by a

Similarly, the transport systems leading to these

drive ongoing and lasting productivity gains to

good cross-section of the mining industry, can

According to the white paper, in Australia and other countries, the research and development (R&D) response to these innovations has

ports have been intensively studied using

help keep mining industries around the world

ramped-up to suit – especially in sensing,

simulation to explore capacity questions in

competitive. It will also bolster the state of

automation, analytics, simulation, and

recent years. Simulation has an enormous

underground transport in other countries,

optimisation. Simulation models would be

bene t of enabling planners to observe a system

which in turn lowers the risk of injury and

familiar to many people involved in planning

before it is (expensively) built or modi ed –

fatalities underground.

mining developments and supply chains. Most

hence it is a widely used technique.

FMDZ |

May - Jun 2017

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Supplement

Gas detection in mines Health and safety in mines have recently been in the spotlight for a number of reasons such as mine deaths (oen resulting in a mine shut down for a few days), sickness f rom mineworkers as a result of exposure to fumes and/or dust and fall of ground (FOG) among others.

Over recent years special focus has been placed on mine health and safety by the government and unions. It is this attention with regulations and laws that has caused the mining industry to pay as much attention to saving lives as it does on production. e heightened focus has led to the birth of revolutionary and innovative products that guarantee safety of those working underground as well as the free owing production of minerals. Today, there are sensor technologies designed to detect almost any gas to which we might be exposed. Some of these technologies include, but are not limited to, infrared and photoionization detection. Some companies now are even using the Internet to test your detector and ensure everything is working correctly. To understand just how far we've come in gas detection, you should know its history and

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| May - Jun 2017

evolution over time. e very rst methods of detecting gases might astound you as they did me. When gas detection was rst needed, there was no Internet or microprocessors — even the light bulb hadn't yet been invented.

With the beginning of the Industrial Revolution, fuel became very important. e fossil fuel used during the Industrial Revolution that still is vital to us even in the present day is coal. Coal had to be mined from the ground, and since mining was primitive, it required lots of manual labor. People working in these areas ranged from very young boys to much older men. e miners wore ame lights on their helmets so they could see in the tunnels, and used hand tools to drill the coal out of the linings of the tunnel. Several things make mining dangerous, chief among them the possible exposure to methane. is gas especially is dangerous because it cannot be seen or smelled, and appears naturally from the ground. When miners began to realize how dangerous methane was, they started exploring ways to detect it. Canaries in a coal mine

| FMDZ

e rst method involved using humans, as that seemed to be the only solution. Before the shi started, everyone was removed from the mine. A person would wear a wet blanket over his shoulders and head and carried a long wick with its end lit on re. is brave person entered the mine and began to move the ame of the wick along the walls of the mine. When the man would hit a small pocket of methane gas, it would ignite, but the miner remained fairly safe under the dampened blanket. Every once in a while, the intrepid miner would hit a huge pocket of this highly explosive gas, which would ignite the entire area around him. Before gas detection became such an integral part of worksite safety, the general feeling was that it was better to lose one man than to lose an entire group of workers. Furthermore, losing only one person meant that the work could continue. Once people realized the dangers of detecting methane in mines using this method, they began to look for other means. e next method of detection was to take a canary into the mine. Canaries were used because they have an extremely loud chirp. Additionally, the canary has the closest resemblance to the part of our nervous system that controls breathing.


Supplement

e miners would go to the area where their canaries were housed and look for the canary that appeared to be not doing well. e miner would then carry the bird in its cage into the mine. It was said that when a canary was about to die, it would start to shake the cage. If the canary did this, the miners knew to exit the mine. If the canary wasn't making any noise, they knew to make an even more urgent exit as something had caused the canary to die. e next type of gas detection used was the ame light. One bene t of using a ame light, of course, was that it provided light, which enabled the miners to see in the mine. e ame was encapsulated in a ame-arrestor shell so that there was no way the ame could ignite the outside atmosphere. On the outside of the ame light was a glass piece that had three incisions running horizontally along the glass. Whenever a miner was using the ame light, he always started the ame in the middle line while in a fresh air environment. If the miners noticed that the ame was lowering down to the bottom line, they knew they were in an oxygen-de cient environment. e ame would drop to the bottom line because re loves oxygen and if oxygen was scarce, the ame would start to extinguish itself. If miners noticed the ame rising to the top line, they knew the atmosphere either was

beginning to have methane current or an oxygen-enriched environment. To this day, the ame light still is used to ensure an environment is a safe place to work. Some people have even learned what types of gas are present when the ame ickers different colors. However, the ame light still poses a threat to miners. If the light accidentally is dropped, and the glass breaks while the ame is lit, the ame can ignite the atmosphere if methane is present. Modern gas detection Soon aer gas detection became a part of the mining industry, other industries followed suit. Some applications included wastewater treatment plants, oil re neries, chemical processes, bleaching of metals and refrigeration. Since not all of these industries could use a detection method such as the ame light to measure the gases that were present in their speci c atmospheres, the gas monitor was introduced. e rst gas monitor was a device with a valve that analytically showed how much methane was present in the atmosphere. e methane was detected through a sensor called the catalytic diffusion sensor. is sensor would burn the gas inside it, but never allowed the burning process to occur outside of the sensor.

FMDZ |

In this way, the instrument was able to accurately give a reading of how much gas was present. e problem with this type of meter was that each time you wanted to see how much methane was present, you had to manually press a button on the monitor. Today, gas detectors have batteries, which enable the instrument to run for long periods of time without having to be turned off. Also, modern-day monitors not only measure oxygen and methane, but can measure several gases simultaneously. As you can see, at one time, the death of a man was seen as a necessity to prevent the death of an entire team working in an area. We can be pleased that any death in the workplace today is considered unacceptable. Among the many technologies that now exist to prevent workplace injuries and deaths are sophisticated gas detectors. As these technologies continue to evolve over time, we can be hopeful that death in workplace will not exist by the end of this century. It is important for people to know how to use gas detectors, and it is critical that each person working in potentially hazardous e nv i ron m e nt s u n d e r s t an d s ju s t h ow important gas detection is. By spreading this knowledge, I hope to contribute to ending death in the workplace.

May - Jun 2017

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Water Sustainability: How secure is mining? With increased concern surrounding the

across southern Africa have stepped up and

A binding position statement was undertaken

planet's environmental state and especially

increased efforts for water conservation to

by 23 of the world's largest mining companies

global warming, an emphasis is being placed

insure sustainable use. In depth studies of water

and members of the International Council on

on sustainability. No more so than the topic of

re-use, passive treatments, sustainable well eld

Mining and Metals (ICMM). e statement

Water Sustainability. Recent droughts in South

development and mitigation of pollution

binds the members to apply strong and

Africa has led to a major depletion of surface

sources have increased.

water resources with rainfall being at one of its

transparent water governance including robust public reporting; manage water at operations

lowest volumes since the start of rainfall

Water scarcity is an unparalleled challenge

effectively ; and collaborate to achieve

records in 1904.

especially to the mining industry of southern

responsible and sustainable water use. Water

Africa. Most of the region is semi-arid to arid

sustainability in the mining sector directly

Nationwide dam levels have dropped well below

with low rainfall. Mining oen has a negative

speaks to the effective management of the water

the 50% mark with the major water supply

impact on water resources and the

footprint. e water footprint or the total

resources such as the Gariep Dam and Vaal

sustainability of these natural resources.

volume of freshwater that is used to produce the

Dam going well below this mark. e Vaal dam

Recently various mining companies have

goods and services consumed by the individual,

only increased to levels above 50% in January

joined drives and organisation to report and

community or produced by the business

2017 with the Gariep dam reported (DWA,

decrease their footprint and impact on the

(“Sustainable Water: e concept of Water

2017) to be still below the half way mark in mid-

environment. An example of this is the Carbon

Footprint,” 2016) is a concept that needs to be

January. e mining sector in South Africa uses

Disclosure Project (CDP) that is a global

understood and used more widely if the

approximately 2.5% of the national water supply

disclosure project that encourages companies,

sustainable water use in mining is to be

and uses this water to directly contribute 8.8%

cities, states and regions to measure and

achieved.

of the country's GDP (Scott, 2014). e mining

manage their environmental impacts through

industry relies on water for all processes and

this reporting system. Recently an

According to UN reports industrial water use,

water security has become an even greater

announcement was made in which leaders in

including mining is the second largest water

challenge in the last year. However, with the

the mining industry committed to a new water

consumer globally. Although mines should step

increased water shortage mining industries

stewardship.

up their role on the sustainability and security

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Supplement

The Gariep Dam

·

Site wide water and salt balances;

·

Improvements in liners system applied to waste facilities;

·

Passive and active treatments like arti cial wetlands and dedicated treatment plants;

·

Better and more efficient dust suppression systems using less water;

·

Processing methodologies using little to no water; and

·

Re-use and treatment of water.

of water resources and the supply thereof it

mine in Africa where Digby Wells was involved

should be understood that the use of water by

in achieving improved water sustainability

With scientists not predicting a pleasant future

mines is essential in the process to provide

through the use of a water balance that

with regards to rainfall and temperatures it is

materials to the consumer. Water is used

incorporated site-wide climatic conditions,

clear that all sectors of society needs to work

throughout the bene ciation process and in

process plant water circuits and other sinks

toward more sustainable and environmentally

recent years the sustainable use of water by

within the mine.

friendly use of our water resources. e mining

mines has evolved. New processing methods

However, even more emphasis should be

industry, especially in southern Africa, can lead

and water management tools have decreased

applied on improvement and sustainable water

the way with new methodologies and processes

the amount of fresh water (such as rainwater,

use in the mining industry. is can be and has

applied to the management of both clean and

groundwater rivers and dams) used by mines

been achieved in the past through:

and the mitigation of any potential impacts have improved. A good case study would be a gold

·

dirty water. is will show the way towards a

Good storm water and dirty water

sustainable water management for all industries

management;

across the globe.

FMDZ |

May - Jun 2017

|

Page45


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