Inside Mining February 2012 by 3S Media

Winne of the 2010 PICA Winner Cover of the Year - B2B Publishing

www www.miningne.ws

MEDIA

THE KNOWLEDGE YOU NEED

ining FROM THE INDUSTRY EXPERTS

HOT SEAT

Digby Glover, CEO of TWP Holdings, on the future of gold in SA

PRESTIGIOUS PROJECTS 2011/2012 Projects with promise Impumelelo • Styldrift Booysendal • Ghaghoo Bisha • Phoenix

PANEL DISCUSSION No more water woes! Sustaining Africa

ENVIRONMENTAL SUSTAINABILITY Mining with tender loving care

PROJECT DELIVERY

Z R E MA ilns

– k S e m U i l I LYS der in

POe world lea Th

Special focus: crushing ISSN 1999-8872 • R35.00 (incl. VAT) • Vol. 5 • No. 2 • February 2012

Bredel Hose Pumps

A COMPLETE SOLUTION!

In the mining industry, water is money. Flushing pump seals and diluting thickened slurries is incredibly costly because the water added has to be removed or treated. Watson-Marlow Bredel hose pumps have no seals to flush – and have the ability to pump thickened slurries up to concentrates of 80 percent solids. So replace your troublesome PC, double diaphragm and centrifugal pumps with Watson-Marlow Bredel SPX hose pumps. They offer: • Less water consumption JOHANNESBURG: Tel: +27 11 796-2960 RUSTENBURG: Tel: +27 14 596-6695 DURBAN: Tel: +27 31 512-5122 E-mail: info@wmbpumps.co.za Website: www.watson-marlow.com

• Lower energy consumption • SPX patented direct-coupled design incorporates extra heavy-duty bearings within the pump rotor, which eliminate any overhang load and gearbox failures • No flow reduction due to specific gravity variation • Less maintenance and spare parts • Heavy duty construction for difficult fluids like acidic, caustic, abrasive, viscous, shear-sensitive, gaseous and corrosive chemicals • Flows from microlitres to tens of thousands of litres an hour and up to 16 Bar

INNOVATION IN FULL FLOW Watson-Marlow \ Bredel \ Alitea \ Flexicon \ MasoSine

CONTENTS

T H E K N O W L E D G E YO U N E E D

ining

February 2012

FROM THE INDUSTRY EXPERTS

ON THE COVER

Polysius The world leader in lime kilns P8

EDITOR’S COMMENT

Let me ‘re’-introduce myself

MINING NEWS

The top mining stories of 2011

HOT SEAT

TWP – gold in its veins

PRESTIGIOUS PROJECTS: 2011/2012

Impumelelo – Sasol Mining’s flagship replacement project

20 26 30 34 36

The mighty, mighty Styldrift Bisha rains cash for shareholders Booysendal – the Eastern Limb’s promising project Phoenix flies In the sands of Ghaghoo

ENGINEERING

Finsch’s emergency egress

WATER PANEL DISCUSSION

Solutions and answers to mining’s water and wastewater challenges

INFRASTRUCTURE PANEL DISCUSSION

Products and services to promote African mining sustainability

ENVIRONMENTAL SUSTAINABILITY

74 80

Fairbreeze – the future of Hillendale Engineering a sustainable environment

PROJECT DELIVERY SPECIAL FEATURE: CRUSHING

82 83 85 86

Modular mining comes alive Osborn’s new equipment showcase Crushing and screening across 25 countries Demand impacts how ore is transported

CETERUM CENSEO

First of the big dogs feeding in the Horn

Inside Mining 02/2012

© 2011 Caterpillar Inc. All Rights Reserved. CAT, CATERPILLAR, their respective logos, “Caterpillar Yellow” and the POWER EDGE trade dress, as well as corporate and product identity used herein, are trademarks of Caterpillar and may not be used without permission.

EDITOR’S COMMENT Publisher Elizabeth Shorten Editor Laura Cornish laura@3smedia.co.za Creative Chief Executive Frédérick Danton Senior designer Hayley Moore Mendelow Sub-editor Patience Gumbo Marketing Manager Martin Hiller Production Manager Antois-Leigh Botma Production coordinator Jacqueline Modise Financial Manager Andrew Lobban Administration Tonya Hebenton

Let me ‘re’-introduce myself

Subscription sales Nomsa Masina Distribution coordinator Asha Pursotham Printers United Litho Johannesburg Tel: +27 (0)11 402 0571

___________________________________ Advertising Sales

Stacey Glad Tel: +27 (0)11 467 6224 Cell: +27 (0)83 567 0073 stacey.glad@lantic.net ___________________________________

MEDIA

No. 4 5th Avenue, Rivonia 2191 PO Box 92026, Norwood 2117 Tel: +27 (0)11 233 2600 Fax: +27 (0)11 234 7274/5 www.3smedia.co.za ___________________________________ Annual subscription:

South Africa: R350.00 (incl VAT & postage) SADC countries: US$80 Foreign: US$100 ISSN 1999-8872 Inside Mining Copyright 2012. All rights reserved. ___________________________________ All material in Inside Mining is copyright protected and may not be reproduced either in whole or in part without the prior written permission of the publisher. The views of contributors do not necessarily reflect those of the the publishers.

I feel like the year has just begun, and the 2012 Mining Indaba is already here! Anticipation levels are high as ears and eyes survey the “landscape” for potential deal opportunities, mining professionals network frantically, and experts in their respective fields provide answers to those uncertain about what the year may hold in store. The four-day conference is a playground for journalists, leaving no one in want of a good story, or five or six or seven ... Having joined 3S Media as editor of Inside Mining late last year, I will be using the conference to re-introduce myself to those I have not yet been in touch with since taking on my new position. It is also the ideal platform to re-introduce the magazine which, for those who are familiar with it, will see some significant and positive changes. What I offer Inside Mining readers in my first issue is a selection of what I consider to be some of Africa’s most prestigious projects of the past year. Considering our “prestigious projects” section covers over 22 pages of the magazine, it is good indication of the industry’s current state – healthy and prosperous. Even our gold industry, which is unlikely to record another boom period in history, is showing its robust versatility – our deepest gold mines are going deeper. And something can be said for the small, and not-so-small, mining towns that are sustained by our gold-mining industry, which, in most cases, you wouldn’t even know existed unless you lived there, or know someone who did/does live there. I spent time visiting some of these off-themap towns over the holiday period. Glenharvie, Waterpan, Hillshaven, Libanon, Finsbury and the much larger Westonaria still today retain their livelihood as a result of nearby mining operations. They are quaint in appearance, appear safe with their tiny picket fences, and the person in the street still greets you with a friendly hello. For the most part, it was like travelling back in time.

Unfortunately, an attempt to visit the Pilgrim’s Rest equivalent – Venterspost – was disappointing. The town, although practically a stone’s throw from Westonaria, has been closed. The golf course is ghost-like and a forgotten wasteland. The town was proclaimed in 1937, following the development of the first mine/shaft in the area, Venterspost mine, in 1934. I cannot establish exactly when it was closed, although I gather it was sometime between 2004 and 2009. Today the buildings and typical clubhouse exist only through their original foundations, nothing more. Apparently, the entire area is sinking! The main road into the town was closed when it developed a large crack through it, and there are records of tennis courts and houses disappearing in seconds. Yet despite its “non-existence”, an important part of our gold industry today still remains defined in part by the history of Venterspost. Let it be said that my experience of Westonaria, in general, was more than a pleasure, when it took me less than half an hour to renew my driver’s licence. Who said there are no benefits to small-town living? For those who have fond memories of Venterspost, or other similar mining towns, please write to me. I would love to hear from you. Otherwise, I look forward to catching up at Indaba. Follow us on Twitter @ Mining_News - I will be sending through live feeds from Indaba, keeping you informed of who is there and what they are saying. Laura Cornish

Inside Mining 02/2012

MINING NEWS www.miningne.ws

The top mining stories of 2011 SOUTH AFRICA

ANC ‘unlikely’ to go for full nationalisation – December 2011 Julius Malema Disgraced ANCYL leader

compiled by Ameerah Griffin

| AFRICA | SOUTH AFRICA Anglo American agrees acquisition of Oppenheimer family’s 40% interest in De Beers – NOVEMBER 2011 Source: www.miningne.ws

Nicky Oppenheimer is Chairman of the De Beers Group and as such Chairman of De Beers SA, De Beers Consolidated Mines and De Beers Centenary AG. He is also a non-executive director of Anglo American Anglo American and CHL Holdings announced their agreement for Anglo American to acquire an incremental interest in the world’s leading diamond company, De Beers, increasing its current 45% shareholding to 85%. Anglo American has entered into an agreement with CHL and Centhold International, together representing the Oppenheimer family interests, to acquire their 40% share in DB Investments and De Beers SA for a total cash consideration of $5.1 billion, subject to adjustment as provided for in the agreement.

Inside Mining 02/2012

Anglo American looks forward to working more closely with governments through De Beers’ joint venture partnerships in Botswana and Namibia and with De Beers’ BEE partners in South Africa to share expertise and tailor programmes to employees and the wider communities. The transaction does not alter the existing arrangements for the management of De Beers SA.

ZIMBABWE Zimbabwe gets KP greenlight to sell diamonds – NOVEMBER 2011 Source: www.talkzimbabwe.com

The Kimberley Process Certification Scheme Plenary Session (KP) in the Democratic

Source: www.businessday.co.za

THE African National Congress (ANC) is unlikely to go for outright nationalisation of mines, London-based emerging markets economist, Peter Attard Montalto says. In December, the party sent back a research report compiled by economists on the state intervention in the mining industry, saying the report was written in dense language and did not contain case studies of countries they visited. In an interview, Montalto said he had spoken to people in the ANC who gave him the idea that the researchers’ report was opposed to nationalisation. He said the ANC and the government have sought to explain to investors that nationalisation was not the party’s policy. The party would need to look at alternatives to outright nationalisation, such as mineral beneficiation and enforcing transformation through the mining charter. There were questions over a suggestion to increase mineral beneficiation in South Africa, and calls for the stringent implementation of the mining charter is one area investors would be watching. The ANC is considering a push for more mineral beneficiation in South Africa by imposing taxes on unbeneficiated mineral exports, according to the chairman of the party’s economic transformation committee, Enoch Godongwana. The proposed export tax is one of the considerations contained in a draft document drawn up as the party begins discussing economic policies ahead of its policy and elective conferences in 2012. That document, together with the researchers’ report on nationalisation, was sent back for more work by the ANC. The government is pushing industry to process minerals locally in the quest for the revival of the local manufacturing industry. Republic of Congo (DRC) gave Zimbabwe the green light to sell its Marange diamonds late last year. The development saw the immediate export of rough diamonds from two KPcompliant operations in the Marange diamond fields, as well as exports from other mining operations in the area. President of the World Diamond Council, Eli Izhakoff

MINING NEWS www.miningne.ws

AUSTRALIA

Australia’s lower house passes mining tax – November 2011 Australian Prime Minister - Julia Gillard

hailed the development, saying the sale of the diamonds by the southern African country will economically develop the wellbeing of Zimbabweans.

Harare’s indigenisation ultimatum causes panic – AUGUST 2011 Source: www.iol.co.za

The Zimbabwe government’s ultimatum to several multinationals to submit “acceptable indigenisation proposals” within 14 days, or face summary seizure of their businesses, sent shock waves through the country’s embattled business community. The targeted firms include South African mining companies Mimosa Holdings and Impala Platinum subsidiary Zimplats. The legal department of Indigenisation minister, Saviour Kasukuwere, announced that it had issued ultimatums to 11 groups to submit proper proposals on how they planned to implement controversial indigenisation laws to give majority 51% equity to black Zimbabweans in five years.

MOZAMBIQUE Mozambican minister wants to train 4 000 geologists, engineers

and metallurgists – OCTOBER 2011 Source: www.macauhub.com.mo

The Mozambican mining sector is facing a lack of qualified staff to keep up with the development of the sector, Mozambican Mining Resources minister, Esperança Bias, said in Maputo in October last year. The minister noted that over the next four years the government of Mozambique aimed to train 4 000 staff in the mining sector. These figures are still far below requirements, Bias noted.

| ASIA | CHINA Agency sets new rules for safety in coal mines – AUGUST 2011 Source: www.chinadaily.com.cn

China’s top workplace safety regulator is introducing national standards for safety technologies used in the country’s accident-plagued coal mines. A set of four standards on polymeric materials used for coal mining safety took effect on December 1, according to the State Administration of Work Safety (SAWS). The standards are related to the prevention of coal mine

Source: www.bloomberg.co

Australia’s lower house of parliament passed legislation for a 30% tax on coal and iron-ore profits as independent lawmakers and the Greens Party backed Prime Minister Julia Gillard’s plan. The Minerals Resource Rent Tax Bill will likely be passed and become law early this year after a vote in the upper-house Senate, where the Greens hold the balance of power. BHP Billiton, Rio Tinto Group and other iron-ore and coal producers, which negotiated the levy with the government, face paying about A$11 billion in extra charges in the first three years of the tax. The legislation is a key policy platform of Gillard’s Labour government, and passage of the bill may help restore public support for the party, which is trailing the opposition Liberal-National Coalition. Gillard ousted her predecessor Kevin Rudd last year after his initial plan to impose a 40% tax on mining company profits contributed to a decline in support for the Labour Party. She negotiated a new proposal with BHP, Rio and Xstrata, cutting the tax back to 30%. The legislation is “seriously flawed and discriminates” against smaller producers, Simon Bennison, chief executive officer of the Association of Mining and Exploration Companies, said. The government has said proceeds will reduce the corporate tax rate to 29% from 30%, provide A$6 billion in spending for roads, rail and ports, and help increase the amount paid to people’s retirement savings to 12% of their salary by 2020 from the current 9%.

accidents, including methane gas blasts, underground floods and shaft collapses, by using high-technology polymeric materials, Jiang Zhimin, the secretary-general of the China National Coal Association, said at a conference to introduce the standards.

China faces hurdles to fracking – NOVEMBER 2011 Source: www.news24.com

Energy-hungry China is tapping its vast shale gas reserves to reduce its reliance on dirty coal and imports, but experts warn its lack of technical expertise and scarce

Inside Mining 02/2012

water supplies pose challenges. China, which has substantial reserves of the hard-to-reach gas, trapped in formations of shale, or sedimentary rock, has started drilling to meet an ambitious annual production target of 80 billion m3 by 2020. Beijing is investing billions of dollars to develop clean energy as it seeks to meet a target of generating 10% of its energy needs from natural gas and 15% from renewable sources by 2020.

14 with a deal under which Freeport agreed to pay increases of roughly 40% for around 8 000 union members and a framework for a better deal for roughly 15 000 non-union workers and contractors. The strike at the world’s second-largest copper mine was the highest profile attempt by organised labour in Indonesia to gain a larger share of the rewards in a growing economy.

INDONESIA

Peru’s Humala signs bills to raise mining taxes

Freeport Indonesia suffers debilitating labour strike

| SOUTH AMERICA |

– SEPTEMBER 2011 Source: www. reuters.com

– NOVEMBER 2011 Source: www.reuters.com and www.businessweek.com

Freeport McMoRan Copper & Gold’s massive Grasberg mine in Indonesia was producing copper, gold and silver ore at 5% of its full capacity after some 8 000 workers went on strike in September – demanding higher wages. The stoppage, Freeport said on October 26, forced it to declare force majeure on some shipments. In November, the mill to process the ore stopped running because of damaged pipelines, reducing its ore production to about 5% of its full capacity now,” said Thamrin Sihite, the director general of mineral resources. In early January 2012, workers started heading back to Grasberg. The strike officially ended on December

Peru’s President Ollanta Humala signed three bills raising taxes and royalties on the lucrative mining sector into law , fulfilling a campaign promise. The government plans to use the new source of funds, estimated at $1 billion per year at current metals prices, to build roads and schools to fight rural poverty. It says the taxes won’t affect the vital sector’s competitiveness. “These resources will be used primarily to fund infrastructure in the poorest parts of the country as a way to bring social inclusion,” said Humala, who took office in July promising to spread the benefits of rapid economic growth. Miners will now pay royalties of between 1% and 12% of their operating profits and a windfall profits tax of between 2% to 8.4% of their net profits. They currently pay royalties of 1% to 3% of sales.

Grasberg Mine Indonesia, one of the largest open pit mines in the world

HELPING JUNIOR EMPOWERED MINING OPERATIONS GET OFF THE GROUND Although Anglo American operates globally, we believe in making a real and lasting difference locally. In South Africa, we aim to create sustainable jobs, promote skills transfer and contribute to the transformation of the mining sector according to national imperatives. To this end, we partnered with Khula Enterprise Finance Limited, a government-owned entity that promotes small and medium enterprise development, to launch the Anglo American Khula Mining Fund in 2003. The Fund focuses on promoting mining-related investments, and is managed by Zimele – Anglo American’s enterprise development initiative. It is based on an effective business model that aims to boost the economy and support the entry of emerging mining operations.

the Fund offers hands-on business support and guidance in areas like empowerment, corporate governance and legal and accounting matters. Already, the Fund has invested R148 million across a variety of projects. With 11 current investments, which collectively employ 1014 people and a turnover of R786 million, the Anglo American Khula Mining Fund demonstrates that with the right partnerships a country can proﬁt. Contact information:

Recognising that aspirant miners face many barriers, such as ubiquitous prospecting permits, lack of access to development capital and a shortage of advisors, the Fund provides entrepreneurs with the means to turn business plans into operational businesses. By providing financial support, which takes the form of equity and loan finance at prime interest rates, we help bring these businesses to commercially bankable positions. But we recognise that more than financing is needed, which is why

The Fund Manager: Anglo American Khula Mining Fund PO Box 61587, Marshalltown, 2107 Tel: Fax: Email:

+27 (0)11 638 4172 +27 (0)11 638 5321 Mxolisi.kota@angloamerican.com

www.angloamerican.co.za

COVER STORY TARKWA IN RECOVERY REDEMPTION ROLLOUT

Polysius delivers key HPGR technology

Gold Fields’ Ghana-based Tarkwa operation is preparing to undergo a major expansion project aimed at significantly improving plant recoveries, thanks largely to the successful implementation of high-pressure grinding roll (HPGR) technology.

old Fields’ mid-term vision for its West African operations is one of significant expansion at its Tarkwa and Damang operations. However, should the Ghanaian government proceed with a plan to raise new taxes on mining companies, including a windfall tax, the economic feasibility of these expansion projects, worth over $1 billion, would have to be re-evaluated.

Inside Mining 02/2012

Gold Fields has entered into discussions with the Ghanaian government, which had not been concluded by the time this article went to press.

Tarkwa “We are currently in pre-feasibility phase, and hope to take a final expansion proposal to the board for Tarkwa early this year,” said Peet van Schalkwyk, executive vice-president for Gold Fields West

Africa, speaking ahead of the November budget announcement of the changing tax regime. Unlike more “traditional” expansions, which usually increase mined tonnages and capacity throughput, the Tarkwa Phase 6 expansion project is scheduled to significantly increase its current 65% to 70% recoveries. Post-expansion, the mine’s annual gold production will remain between 720 000

COVER STORY

LEFT Tarkwa processing plant

and 750 000 oz of gold per annum. Its current life of mine (LOM), incorporating the expansion, is 2021. The project entails altering Tarkwa’s entire process circuit, which currently in-

drastic change to our typical recoveries,” says Van Schalkwyk. Although the south plant was decommissioned in 2008, HPGR specialist Polysius, a wholly owned company of Thys-

“It is the HPGR technology, which has been running at the south heap leach pad since 2009, that will help deliver such a drastic change to our typical recoveries” Van Schalkwyk cludes a north heap leach pad, a conventional CIL plant and a decommissioned south heap leach pad. “It is the HPGR technology, which has been running at the south heap leach pad since 2009, that will help deliver such a

senKrupp Engineering, commissioned a 700 tph HPGR on site. “At the time, the HPGR’s function was to run for about four months to determine its capabilities for improving recoveries,” says Polysius minerals marketing

manager, Gerhard Sauermann. The HPGR has been in operation since then. “As part of our expansion plan, we intend to relocate the HPGR to our north plant, which we will convert from a heap leach pad to a CIL plant. With the incorporation of an HPGR and ball mill, we expect to push our recovery rate up to about 97%,” Van Schalkwyk explains. The Tarkwa mine consists of six massive open pits, which are becoming increasingly deeper, the deepest being about 150 m. The ore body at greater depth becomes “more competent” and hard, meaning heap leach recovery is not adequate to recover sufficient gold. Tarkwa is a low-grade operation, so high-volume throughput is vital and a processing circuit for low-grade recovery is increasingly necessary. “To see Tarkwa’s recoveries improve from 70% to above 90% will have a major impact on the operation’s overall performance. Laboratory test work has proven that when we install an HPGR in an open circuit with an edge recycle, recoveries can be improved by about 10% in a heap leach application, such as that operated in the south heap leach plant since 2008. When installing the HPGR in a CIL application, the resultant finer grind should translate into even better recoveries, Sauermann reveals. If board approval is granted for this project around April, which will depend to some extent on whether the Ghanaian government has compromised on its tax proposals, conversion of the north plant to an 8 mtpa CIL plant will begin, and the HPGR immediately relocated. “Our intention is to commission the plant before 2015.”

Inside Mining 02/2012

COVER STORY

According to Van Schalkwyk, another reason for his preference for the HPGR is its power consumption. Power is severely limited and restricted in Ghana, and the HPGR consumes significantly less power than a competitive product – the SAG mill.

20 000 oz of gold a year for about five years. We may even consider a small HPGR for the project.”

Damang The expansion at Damang, also in feasibility stage, with pending board approval this year,

To see Tarkwa’s recoveries improve from 70% to above 90% will have a major impact on the operation’s overall performance The expansion plan also involves changes to the current 12.3 mtpa CIL plant, including the installation of a secondary crusher, which is well advanced and should be commissioned in the first quarter of 2012. There is still opportunity for some final gold recovery at the south plant, Van Schalkwyk points out. “We would like to clean up the old heap leach residue, which still contains a lot of gold in the coarse fraction. We will retain the existing crushing circuit and build a small CIL circuit, which should give us about

Inside Mining 02/2012

will be a major growth project. Board approval will again depend on the economic viability of the project once the tax proposals have been finalised by the Ghanaian parliament. Like Tarkwa, it has five open-pit operations. Should the expansion plan be approved, its LOM will increase from 2019 to 2024. “Our intention is to double the current annual capacity from 220 000 ozpa to approximately 450 000 ozpa,” says Van Schalkwyk. Two options were evaluated to do this: decommissioning the 5 mtpa CIL

ABOVE A view of the HPGR at the Tarkwa South Heap Leach plant plant and replacing it with a 10 mtpa plant, or a more cost-effective operation which involves an upgrade to the existing plant and building an additional plant of the same size. A decision is expected this year. “We also want to enhance the recoveries in the current plant (about 92%) and deliver optimal recoveries from the new plant, and are also considering incorporating an HPGR.”

The long-term future Gold Fields is investing significantly in ensuring that it remains a significant player in Ghana post-2024, but needs a competitive investment environment to justify the investments it is planning. “We believe there is further near-mine exploration potential around Tarkwa, and we are conducting a 42 500 m drilling exploration programme in the Damang lease area as well,” Van Schalkwyk says. Gold Fields owns additional exploration areas in the northern region of Ghana.

In each issue, Inside Mining offers advertisers the opportunity to promote their company’s products and services to the appropriate audience by booking the prime position of the front cover which includes a two-page feature article. The magazine offers advertisers an ideal platform to ensure the maximum exposure of their brand. Please call +27(0)11 465 5452 to secure your booking.

HOT SEAT TWP

Gold in its veins

Major engineering project house, TWP Projects, a wholly-owned subsidiary of Basil Read Group and largest division of TWP Holdings, has developed a local reputation for specialising in the development of deep level shaft projects. Part of its strategy is to grow further on the back of a much revived global gold sector, says TWP Holdings CEO, Digby Glover.

lthough its platinum project work still constitutes a significant portion of TWP Project’s portfolio, it has significant work in many other commodities including the copper, iron ore, coal and gold sectors. “Gold accounts for about 12% of our current turnover, only slightly less than platinum,” says Glover. Strengthening its presence in the gold sector is part of a larger strategy for the

Inside Mining 02/2012

company’s greater diversification. “By diversifying across commodities, companies, services (largely infrastructure and energy) and geographies, our exposure to single commodity and industry cycles is minimised,” Glover notes. While the amount of gold project opportunities in Africa and South America is vast, Glover says South Africa remains promising and open-ended with potential prospects.

South Africa “Our deep level gold mining industry may be the oldest in the world, but established gold houses like AngloGold Ashanti, Harmony and Gold Fields are working towards taking their operations even deeper,” Glover explains. South Africa’s time-honoured gold mines have not necessarily approved such projects to replace production over the last few years but are in essence, in

HOT SEAT

According to McGill, when developing to very deep levels underground, the cost, design, management and implementation of these elements must be prioritised. The elements are: • rock mechanics and engineering, and seismicity • refrigeration and ventilation(deep level ambient rock temperatures average about 600) • logistics – hoisting to surface. These components will have a huge impact on project viability. “But if the gold price remains high, and the rand stable, underground mine extensions will proceed, especially at mines such as

To a large extent, we cut out teeth in the gold industry, and intend to re-inject these skills into the sector - Digby Glover, CEO, TWP Holdings

E+I 16640

a ‘catch-up’ period driven largely by the healthy gold price. TWP anticipates significant work to emerge from this particular area, so much that it has established an office in Krugersdorp to cater to the deep level gold mines. The office will constitute between 15 and 20 people who have experience in deep level gold mining, while aiming at pulling skills and resources from the general area who have experience in deep level gold mining. “We are in the process of assisting AngloGold Ashanti with deepening project studies at its Mponeng and Moab Khotsong operation, below 3.5 and 2.6 km depths respectively,” says Rob McGill, head of gold projects at TWP Projects. When extending underground operations well below 3 km, there are three main elements that must be considered and accounted for.

Will there be any water left for the Kimberley Thornveld wildlife? A research project among antelope species currently underway at Rooipoort Nature Reserve. Made possible by De Beers.

www.diamondroute.co.za

Inside Mining 02/2012

HOT SEAT Mponeng, which have a very high grade ore body.” McGill adds that a lot of investment is being made into technologies to cater for deep level extensions, such as tunnel boring machines, to access ore bodies quickly. TWP has a very strong rock engineering department, and can incorporate seismicity design management from project conception. Most recently TWP Projects successfully completed Great Basin Gold’s Greenfields Burnstone processing plant near Balfour, designed to deliver 254 000 oz of gold each year, and is currently involved in doubling Gold Fields’ Westonaria-based South Deep processing plant.

The expansion at South Deep is well underway

Africa “To a large extent, we cut out teeth in the gold industry, and intend to re-inject these skills into the sector,” Glover mentions. The company has every intention of growing its gold presence in Africa off the back of its gold-specific skills, and recent project work. It is currently working on gold studies in Mozambique and Zimbabwe – specifically tailings retreatment projects. “Through our subsidiary Basil Read Matomo, we are undertaking the

Inside Mining 02/2012

Our deep level gold mining industry may be the oldest in the world, but established gold houses like AngloGold Ashanti, Harmony and Gold Fields are working towards taking their operations even deeper feasibility studies for AngloGold Ashanti’s Mongbwalu project in the Democratic Republic of Congo (DRC),” says Glover. The Mongbwalu project is located within the 5 487 km2 tenement package held by AngloGold Ashanti and its joint venture partner Okimo, the state-owned gold company of the DRC, which owns a 13.8% stake. The Mongbwalu licence areas are north-west of Lake Albert in the Ituri province of north eastern DRC. Ongoing feasibility work is focused on the former Adidi underground mine workings, close to the village of Mongbwalu. The study calls for an underground operation. An updated mineral resource of 1.9 moz was declared in 2010 following an infilldrilling campaign. Further drilling at the Mongbwalu feasibility study area continue to upgrade and expand the Mineral Resource base. Because many new projects emerging in Africa are remote, TWP’s diversification strategy has seen it incorporate a business unit devoted entirely to infrastructure (roads, ports, housing, etc), which is as important as a mine’s development. This relatively new service offering is expected to help see Africa’s mining industry develop quickly.

South America TWP’s South American office is undertaking a feasibility study for Eco Oro Mineral Corporation´s (formerly Greystar Resources) Angostura gold and silver deposit in the north eastern region of Colombia. “We are sending key South African skills across to assist with the project’s development as it moves into execution phase,” Glover adds. Completion of the feasibility study is targeted for the third quarter of 2012. It has an initial underground mineable resource estimate of 2.4 moz of gold and 13.4 moz of silver, with “good potential” to increase. The TWP South America office in Lima is executing a variety of additional projects in Peru, Colombia, Bolivia and Chile, and is currently completing the detailed engineering for a sub-vertical shaft for MARSA – a well-established gold mining company in Peru. “Our office in Lima is also involved in various metallurgical test work programmes at present, and we are extremely positive about the future of gold mining in Peru and South America,” says Ryan Illingworth, TWP South America technical director.

Exploration through to Mining and Rehabilitation

AOC has the technical solutions for your everyday problems. We are your one stop, geospatial and mapping solutions company.

Satellite and Aerial Imagery LiDAR airborne laser scanning Terrestrial & Mobile Laser Scanning Land Survey 3D Building & Mine Modelling

PRESTIGIOUS PROJECTS OF 2011/2012 IMPUMELELO

Sasol Mining’s flagship replacement project Sasol Mining’s new Greenfields Impumelelo underground coal project near Secunda is one of three replacement projects worth billions, which once complete, will be the company’s new flagship operation for a number of reasons, Sasol project manager, Willem van den Heever tells Laura Cornish. “Impumelelo will replace our first operational Secunda-based mine, Brandspruit, which will gradually ramp down towards closure as Impumelelo comes on stream,” Van den Heever explains. Once complete, the mine will constitute two vertical shafts, and a single decline connected to 13 production sections and six stonework sections. The shaft sinking contract and decline development contract were awarded in May 2011 to Murray & Roberts Cementation, a division of major engineering firm, Murray & Roberts Group.

Shaft sinking and decline development Having moved on to site in July 2011, Murray & Roberts Cementation has already made significant progress on its contract.

“Box cuts for the men-and-material (main) shaft as well as the ventilation shaft was completed late last year and shaft sinking has commenced,” says Murray & Roberts senior project manager, Johann Prinsloo. Considering this project is the company’s first major venture into coal, its commitment to successful project delivery and safety is of utmost importance. Individual work stations and offices have been established at the ventilation shaft as well as the main shaft to ensure constant dedication to the specific project portions. The main 11.7 m diameter shaft will extend 280 m below ground and the 6.6 m ventilation shaft, 260 m. Van den Heever adds that additional shafts will have to be

Fabrication of the shutters is done on surface and then lowered into the box cuts

Inside Mining 02/2012

Pictures taken: November 2011

lthough the construction and development of the R4.6 billion Impumelelo project has just passed its infancy stages, its potential to emerge as the company’s flagship project is already evident. Under the guidance of both Sasol Mining and appointed EPCM joint venture contractor, RSV ENCO/Goba JV, the project must deliver its first coal in 2014. Although originally designed as an 8.5 mtpa operation, the materials handling portion has been designed to operate at 10.5 mtpa at peak, delivering its entire production line to Sasol Synfuels in Secunda.

PRESTIGIOUS PROJECTS OF 2011/2012

developed in order for the mine to reach its targeted nameplate capacity. Murray & Roberts Cementation will also erect the permanent steel structure headgear frame for the main shaft, whose design was completed by Shaft Sinkers division, METS. The main shaft will be serviced by a 65 t payload cage and counterweight Koepe winder. “What makes this project so unique is our mining plan which will see us mine the traditional No. 4 coal seam, which lies 190 m underground, as well as the 220 m deep No. 2 seam, which has never been mined in the vicinity before. This will make Impumelelo Sasol Mining’s deepest coal project to date, which would not have been feasible as an open cast operation. Although the No. 2 seam has poor roof structures and seam intrusions, it has about 100 mt of ‘mine-able’ resource, making it lucrative. The No. 4 seam contains an additional 209 mt of resource, with a life expectancy of about 37 years once in full production. “This particular area has a 100 m dolorite layer, which means additional support is required for sinking the shafts,” Prinsloo mentions. The decline box cut was also completed late last year and the portal development started thereafter. The decline dimensions will be 6.5 m in width, 3 m in height and stretch 1 km, dipping at a 17°angle. Once the portal is complete, the box cut will be covered with a ‘supercore’ structure, and then back-filled to leave only the decline entrance on surface, Prinsloo reveals. Along the decline, break-aways on the 2 seam and 4 seam will be carried out with a coal loading gallery and surge bin at the decline end. Once the holing on the 4 seam is complete, continuous mining equipment will be lowered down the decline to the seam to begin work. Impumelelo will be a conventional board-and-pillar, mechanised mine. A temporary conveyor system will be installed during the sinking phase, until the continuous equipment has been lowered. Thereafter, a permanent conveyor belt will be installed to service this equipment during its cutting operations.

ABOVE The box cut for the menand-material shaft was completed late in 2011 RIGHT A view of the shutter at the bottom of the box cut for the ventilation shaft A total of 550 m of conventional drill and blast development on No. 2 seam will open up the mining area and connect the shafts with each other, with 4 660 m of coal cutting on No. 4 seam being undertaken to open up the area for establishing continuous mining sections. Murray & Roberts Cementation will oversee about 450 contractors on site during the shaft sinkings. There will however be between 2 000 and 2 500

Inside Mining 02/2012

PRESTIGIOUS PROJECTS OF 2011/2012 responsible for laying the underground pipeline system to ensure water supply to the mine. Due to the remote location of Impumelelo, even the closest accessible roads are in desperate need of repair, in addition to road access directly to site. Sasol Mining is investing in the upgrade and construction of 21 km of road surrounding the mine. The contract was awarded to construction and civil engineering company, Liviero, which is also contracted to undertake all the bulk earthworks for the terraces, workshops and change houses and overland conveyors.

Safety ABOVE A view of the box cut developed for the ventilation shaft, showing the temporary headgear in the background BELOW The box cut for the decline – just one blast away from being ready for portal development contractors on site in total during peak construction phase.

Materials handling The materials handling portion for Impumelelo is also significant and will encompass the single conveyor along the decline and a 28 km overland conveyor. The first flight will be 18.3 km in length, making it the longest first flight conveyor in South Africa. The contract further includes the development of a 1 500 t bunker at the coal loading gallery in the decline, a 15 000 t

surface bunker at Impumelelo and a 4 000 t bunker at Brandspruit, where the coal will continue to Sasol Synfuels through the original Brandspruit materials handling system.

“What makes this project so unique is our mining plan, which will see us mine the traditional No. 4 coal seam, as well as the No. 2 seam, which has never been mined in the vicinity before.” Van den Heever Although this contract has not been awarded, it will be shortly, as project commencement is scheduled to start in May. Sasol Mining awarded the material handling contract for its first replacement coal project, R3.3 billion Thubelisha (which replaces Twistdraai), to Sandvik Materials Handling. Van den Heever notes that the company prefers to standardise on processes and equipment across its operations, but initiates new tenders for every project.

Power, water supply and infrastructure At full capacity, Impumelelo will require 40 MVA of power. A single overhead power line will feed Brandspruit’s Eskomallocated power to Impumelelo. “We are however negotiating a ring feed power arrangement from our Zandfontein operation to ensure power interruptions do not affect supply to the mine,” says Van den Heever. There is a 1 MVA generator on site, which will be used for emergency evacuations. Civil engineering and pipeline contractors, WK Construction, is

Inside Mining 02/2012

Both Sasol Mining and Murray & Roberts Cementation place safety as one of their highest priorities. Since the start of the project in mid-2009, over 500 000 hours with no accidents was achieved.

To date, three incidents have been recorded and all parties are working towards the 500 000 incident-free mark again. “We have major safety intervention initiatives and approve highly of Murray & Roberts Cementation’s safety systems,” Van den Heever adds.

Shondoni Shondoni is Sasol Mining’s third coal replacement project for its Middelbult operation. Unlike Thubelisha and Impumelelo, the Shondoni project, also situated near Secunda, is a Brownfields underground expansion, or new mine establishment as a continuation of the Middelbult mine. The EPCM contract for the project has been awarded to international engineering group, Worley Parsons, which is establishing a branch in Secunda. The project is valued at R160 million. Although a Brownfields project, it will require new shaft infrastructure development, Van den Heever points out. The new project is scheduled to produce its first coal in 2015, which is also earmarked for Sasol Synfuels.

PRESTIGIOUS PROJECTS OF 2011/2012 ROYAL BAFOKENG PLATINUM

The mighty, mighty Styldrift The Greenfields R11.8 billion Styldrift project will be historically recognised as one of the last shallow underground, Merensky reef PGM mining projects on the Bushveld Complexâ&#x20AC;&#x2122;s western limb when it becomes operational in the second quarter of 2015, writes Laura Cornish.

View of the Styldrift Main and Service Shaft headgears and winder buildings

Inside Mining 02/2012

he Styldrift I project constitutes part of the Bafokeng Rasimone Platinum Mine Joint Venture (BRPM JV), which is 67% owned by Royal Bafokeng Platinum (RBPlat) and 33% by Anglo American Platinum (Amplat). The JV also encompasses the Bafokeng Rasimone Platinum Mine (BRPM) and the 290 000 ozpa PGM concentrator plant (complex). “The Styldrift I project will significantly raise the production profile of the BRPM JV complex when it moves into steadystate production,” says RBPlat head of projects, Neil Carr. “The project is designed to deliver 230 000 tpm of Merensky ore, yielding approximately 200 000 platinum ounces in concentrate production per annum. Its ramp-up will coincide with the gradual transition from Merensky to UG2 production at the existing BRPM mine, ensuring that the complex retains a strong Merensky feed into the long foreseeable future.”

The Styldrift I project will significantly raise the production profile of the BRPM JV complex when it moves into steady-state production – up to 420 000 platinum ounces in concentrate per annum

Agile, Powerful, Prepared And Determined.

Our engineering and architectural skills are world-class and we have the people, systems and structures to make your project world-class too. Call us, or visit www.twp.co.za TWP South Africa T 0861 TWP TWP (SA) / +27 11 218 3000 E twpinfo@twp.co.za

PRESTIGIOUS PROJECTS OF 2011/2012 Aerial view of Styldrift

57.1% black-owned RBPlat assumed operational control of the BRPM JV in January 2010. Styldrift Phase I has been designed (by appointed EPCM contractor, TWP Projects) as a twin vertical shaft complex – comprising a 10.5 metre-diameter main shaft and a 6.5 metre-diameter service shaft. Project timeframes: Project phase

Completion timeframe

Main shaft sinking: Mid-2014 Main shaft equipping:

End 2014

Service shaft sinking:

Mid-2014

Service shaft equipping:

End 2014

Mine surface infrastructure:

End 2014

Underground infrastructure:

2014 - early 2017

Steady-state production:

Second quarter of 2017

The width of the reef and shallow dipping ore body lends itself to board-and-pillar mechanised mining in the thicker central Merensky reef facies, with conventional

At the end of November 2011, the main shaft was at a depth of 193 m and the service shaft at 129 m. Shaft Sinkers is the appointed contractor for sinking both shafts and developing the underground capital footprint. On surface, both headgears have been erected, and the main shaft double-drum personnel and material winder, and service shaft personnel winder, have both been commissioned and are being used as the kibble winders during the sinking phase. The main shaft future rock winder mechanicals and electrics have been ordered, and are identical to those of the personnel and material winder. Construction will commence in 2013. Louwill Engineering, an East Rand-based structural steelwork engineering company, constructed the headgear frame, and was able to reduce the period of erection of the headgears by almost a month, through

The pre-feasibility study for Styldrift’s concentrator has already commenced, and will move into feasibility in 2012 and construction in 2014, ready to receive its first concentrate in the second quarter of 2016 scattered-breast mining used in the narrower western portion of the Styldrift I project area. The pre-sink on the main and service shafts was completed down to a depth of just over 60 m in mid-April, with the main sink commencing in July, says Carr. “Our next milestone – 594 Level (Merensky reef) – is targeted for the first half of 2012.”

careful planning and maximising the use of the cranes at its disposal. Pre-assembly of the headgears on site also brought significant time savings. Heavy lifting specialist Sarens SA’s 1 000 t Crawler crane was adequately equipped to handle the significant weight of moving the headgear segments. It took only three weeks to erect both headgears. The pre-feasibility study for Styldrift’s concentrator has commenced, and will move into feasibility this year, with construction commencing in 2014, ready to receive its first concentrate in the second quarter of 2016, and thereafter ramp up in line with the mine, to reach nameplate LEFT AND BELOW Sinking winders for Styldrift Phase I

Inside Mining 02/2012

sarens

PRESTIGIOUS PROJECTS OF 2011/2012 capacity in 2017. DRA Mineral Projects is due to complete the concentrator pre-feasibility in the first quarter of 2012. “We are evaluating three options for the concentrator. We could expand the current BRPM plant, construct a new concentrator adjacent to the BRPM plant, or develop the concentrator on the Styldrift property,” Carr explains. “While we have operational control of the project, we respect and still utilise some of Anglo American Platinum’s expertise and input in terms of plant and equipment design for optimum throughput,” Carr says. In January 2011, RBPlat initiated an optimisation study for Styldrift, aimed among Styldrift II A potential second Styldrift project – Phase II – is already being evaluated, and will require a capital investment similar to that of Styldrift I. A concept study on the resource is due for completion in the first quarter of 2012. 51 000 m of drilling was completed during 2011, and reef intersections, to date, are well defined and relatively undisturbed. The project will progress through the various study phases, including prefeasibility and feasibility, culminating in an investment proposal.

Inside Mining 02/2012

other things, at evaluating the potential of mining the UG2 reef simultaneously with the Merensky reef. “If we decide to proceed with this plan, it would be in addition to the 230 000 tpm of Merensky already incorporated into the

• access to the UG2 ore horizon and associated infrastructure requirements. The BRPM complex currently has 62 MVA of secured Eskom power, of which it uses 50 MVA. The buffer capacity (12 MVA) is being used for Styldrift’s construction.

A potential second Styldrift project – Styldrift II – is already being evaluated, and will require a capital investment similar to that of Styldrift I plan. We are, however, still reviewing a variety of factors in relation to this possibility,” Carr states. Key areas of the optimisation study being reviewed include: • shaft bottom infrastructure layout • room and pillar mine design • strike ore handling methodology – trucks vs conveyors • pneumatic vs electric drilling BELOW Shaft barrel development of the Main Shaft

By 2017, the combined operations will require 112 MVA, which Carr says has been approved by Eskom, and will be available from the first quarter of 2014. Three 3MVA General Electric diesel generators are installed on site, in case there is a need for emergency backup power. The generators will remain permanently on site. “We have also secured all the water requirements (263 500 m3/month) from Magalies Water, as well as our water use licence, and the overland potable water pipeline has been installed,” Carr notes.

93 Butler Road, Nuffield, Springs P.O. Box 10834 Strubenvale 1570 Fax: (011) 818 5185 Telephone: (011) 818 5186 www.louwill.co.za

PROUD TO BE ASSOCIATED WITH THE STYLDRIFT PROJECT

This is a name synonymous in the steel construction industry with unrivalled expertise, painstaking attention to detail at all stages of fabrication and installation and superb customer service

For more information contact: Martyn Swanepoel 082 490 0425

PRESTIGIOUS PROJECTS OF 2011/2012 ERITREAN EXCELLENCE

Bisha rains cash for shareholders Nevsun’s Bisha mine in Eritrea is a large precious and base-metal volcanogenic sulphide deposit that went into commercial gold-silver production in February 2011. Willem Smuts looks at recent developments.

evsun announced strong production results for Bisha of 110 000 oz of gold for the quarter ending 30 September 2011. Year-to-date, the Bisha mine in Eritrea has produced 278 000 oz of gold, including 41 000 oz during the commissioning phase early in 2011. Cash increased to $226 million as at 30 September. The Bisha mine continued to operate in excess of plan for mill gold recovery, and increased the rate of gold production during the third quarter to approximately 1 200 oz per day. The rainy season in Eritrea had no material impact on operations. As at 30 September, the company was awaiting settlement of sales of approximately 24 000 oz of gold. Nevsun CEO Cliff Davis comments: “Bisha’s smooth start-up earlier in 2011, and the continuing impeccable production track record, is testimony to the team at Bisha and our partnership with the Eritrean state mining company, Enamco. The strong cash generation

Inside Mining 02/2012

Q1 2011

Q2 2011

Q3 2011

YTD 2011

Tonnes milled

461 000

444 000

446 000

1 351 000

Recovery, % of gold

88%

89%

88%

Gold oz produced

75 000

93 000

110 000

278 000

from the project will eventually be recognised in the market.” Bisha started civil works in preparation for construction of the second-phase copper plant in June. The development drill programmes that are expected to significantly increase Bisha mineral reserves continue with Phase 2 of the hanging-wall copper zone currently under way.

On the copper front The final four diamond drill-holes from the hanging-wall copper Phase 1 drilling at Bisha were concluded late last year. These four holes were delayed due to mining operations in the area. Drill-holes B-464 and B-465 intersected the same supergene sulphide lens that was intersected by drill-hole B-395 and B-396. Drill-hole spacing was

approximately 50m x 50m. The sulphide lens appears to be an extension of the north-west lens of Bisha that was faulted off, and is not included in currently disclosed resources. Phase 2 drilling of the hanging-wall copper zone, designed to further infilldrill the zone as well as the newly identified lens, is complete and assay results were expected later in the fourth quarter. The company also completed a 16 000 m diamond-drill programme on

BELOW Ore on the ROM pad – a pretty sight against the backdrop of a green desert

PRESTIGIOUS PROJECTS OF 2011/2012

Hole ID

From (m)

To (m)

Interval (m) Au (ppm)

Ag (ppm)

Cu (%)

Zn (%)

Azimuth

Dip

Zone

B-463

49,50

61,50

12,00

0,01

1,00

0,79

0,02

270

-45

HW Cu

Incl

58,50

61,50

3,00

0,01

1,00

1,54

0,02

B-464

31,50

69,00

37,50

0,58

32,27

8,26

0,10

Incl

40,50

51,00

10,50

0,98

70,14

16,99

0,04

Supg

And

58,10

61,80

3,70

1,16

70,00

26,50

0,23

Supg

B-465

45,00

64,00

19,00

0,04

1,95

0,58

0,02

Incl

57,50

64,00

6,50

0,09

3,77

1,12

0,02

HW Cu

And

76,00

88,00

12,00

0,56

16,75

1,29

0,01

Supg

B-466

43,50

109,50

66,00

0,01

1,07

0,50

0,03

Incl

43,50

46,50

3,00

0,01

2,50

2,28

0,01

HW Cu

And

81,00

84,00

3,00

0,01

1,00

1,48

0,03

HW Cu

HW Cu 270

270

-90

-45

Supg

HW Cu

Note: True thickness is estimated at approximately 90% of the drill intervals reported in the table.

ABOVE Mining is a newcomer to the economy of Eritrea, so training is critical to building a skilled workforce in the country. Nevsun takes this challenge seriously, and hands-on training is part of the dayto-day operations at the Bisha mine and plant LEFT: Bisha started civil works in preparation for construction of the second-phase copper plant in June

Inside Mining 02/2012

the Bisha main deposit below the existing planned pit. Select high-grade results include: • Hole #B-433 – 88,50m of 11,84% Zn & 0,76% Cu from 268,0m-356,5m • Hole #B-459 – 94,65m of 8,29% Zn & 0,84% Cu from 308,5m-403,15m • Hole #B-461 – 85,90m of 10,71% Zn & 0,86% Cu from 275,1m-361,0m • Hole #B-427 – 103,80m of 4,98% Zn &

PRESTIGIOUS PROJECTS OF 2011/2012 UPDATE ON UN ACTIONS REGARDING ERITREA UNSC resolution 2023 (2011), which was passed on 5 December 2011, includes three sections related to the mining industry, and should have no direct impact on the Bisha operations, no direct impact on Nevsun Resources and no direct impact on shareholders of Nevsun Resources. It is not possible to estimate any indirect impacts, as the resolution suggests that future guidelines will be prepared for optional use by individual UN member states. The mining-specific sections of the resolution are reprinted below: • 12. Expresses concern at the potential use of the Eritrean mining sector as a financial source to destabilise the Horn of Africa region, as outlined in the Final Report of the Monitoring Group (S/2011/433), and calls on Eritrea to show transparency in its public finances, including through cooperation with the Monitoring Group, in order to demonstrate that the proceeds of these mining activities are not being used to violate relevant resolutions, including 1844 (2008), 1862 (2009), 1907 (2009). • 13. Decides that states, in order to prevent funds derived from the mining sector of Eritrea contributing to violations of resolutions 1844 (2008), 1862 (2009), 1907 (2009) or this resolution, shall undertake appropriate measures to promote the exercise of vigilance by their nationals, persons subject to their jurisdiction and firms incorporated in their territory or subject to their jurisdiction that are doing business in this sector in Eritrea, including through the issuance of

1,13 % Cu from 234,0m-363,0m • Hole #B-434 – 99,60m of 5,78% Zn & 1,27% Cu from 294,4m-394,0m The objective of this programme was to infill-drill the inferred resource portion of the Bisha main deposit, to convert those resources to an indicated resource category. The results were positive, and have confirmed the grade and continuity of the Bisha primary zone below the current pit-shell design. The resulting resource and reserve restatement is expected in the first quarter of 2012. 16 000 m of drilling took place BELOW Area of infill drilling under the current Bisha pit-shell

due-diligence guidelines, and requests in this regard the Committee, with the assistance of the Monitoring Group, to draft guidelines for the optional use of member states. • 14. Urges all states to introduce due-diligence guidelines to prevent the provision of financial services, including insurance or re-insurance, or the transfer to, through or from their territory, or to or by their nationals or entities organised under their laws (including branches abroad), or persons or financial institutions in their territory, of any financial or other assets or resources if such services, assets or resources, including new investment in the extractives sector, would contribute to Eritrea’s violation of relevant resolutions, including 1844 (2008), 1862 (2009), 1907 (2009) and this resolution. The full text of the resolution may be found on the UNSC website. Davis stated: “The State of Eritrea has been a strong partner and shareholder in the Bisha Mining Share Company, a subsidiary of Nevsun. The government of Eritrea has contributed to the building of the Bisha mine, both financially and through the Board of the Bisha Mining Share Company, as well as through the support of the Ministry of Energy & Mines and various other ministries. By collaborating with international companies, Eritrea is developing a mining industry that provides direct economic benefits, skill enhancement and supply-chain expansion. Through these cooperative efforts, sustainable development from the industry can positively impact the Eritrean economy for decades to come.”

from May through July 2011. A second resource and reserve restatement is now targeted for the first quarter of 2012. Nevsun had previously suggested the fourth quarter of 2011, but has pushed back the date due to additional drilling follow-up on the above and availability of third-party engineers. Darin Wasylik, senior geologist for Nevsun and a qualified person under National Instrument 43-101, supervised and directed all work associated with the drilling programme. Sample preparation and analysis were conducted at ALS Chemex of Vancouver, Canada.

A matter of time The Bisha mine is expected to produce more than 1.14 moz of gold, 11.9 moz of silver, 821 mlb of copper and 1.3 billion pounds of zinc during its initially estimated 13-year mine life. In 2013, the processing plant will be expanded, and transition into low-cost copper, gold and silver production. In November 2011, Nevsun declared an increased semi-annual dividend, after declaring a maiden dividend in May. This revised dividend represents approximately 5% of cash from operating activities for the past two quarters of 2011. “We are focused on generating cash flow from operations and expanding reserves at Bisha, while reviewing growth opportunities for Nevsun. With $227 million in cash at the end of the quarter and significant ongoing cash flow, Nevsun is well positioned to fund growth and provide a dividend return to our shareholders,” says Davis. The senior gold players are all keeping a watchful brief, and it surely is a matter of time before one of the majors makes a play for Bisha, friendly or otherwise.

Inside Mining 02/2012

PRESTIGIOUS PROJECTS OF 2011/2012 BOOYSENDAL

The Eastern Limb’s promising project Platinum miner Northam Platinum’s Greenfield Booysendal project is advancing rapidly, as it aims to meet its production start-up timeline – the first half of 2013, writes Laura Cornish.

ituated toward the southern end of the Bushveld Complex’s Eastern Limb, Northam’s 100% owned Booysendal 4PGM project, will take its place as a producing operation in about 12 months.

Inside Mining 02/2012

Because the Booysendal area is so large – 150 km2, a 103 moz resource and 14.5 km of strike length - it will be developed in phases. The Booysendal North mine, which will deliver 160 000 oz of PGM concentrate a

year at nameplate capacity (targeted for the third quarter of 2014), constitutes less than a third of the entire property. Booysendal North’s lifespan alone is 25 years. “The development contract includes the development of the concentrator plant,

PRESTIGIOUS PROJECTS OF 2011/2012

the mine and the general infrastructure,” says DRA Mining project manager, Alistair Hodgkinson. The full engineering, procurement and construction management (EPCM) contract falls under the responsibility of engineering project house DRA subsidiary, DRA Mining, but combines the concentrator expertise from its sister company, DRA Mineral Projects. Typical to the Eastern Limb, Booysendal North will initially mine only UG2 reef, which dips at 100and at a mining cut of approximately 2 m lends itself to mechanised mining. The plan is to deliver 187 500 tpm of run-of-mine (ROM) material to a

footwall conveyor linking directly to the plant.

The mine The design of the mine consists of an onreef section, with five adit entrances extending from the side of a mountain where the ore body starts and continues downwards. This was done to gain early reef access as well as to implement long-term ventilation (North and South ventilation adits) requirements. A reverse decline from surface will link the reef declines to the plant and other surface mining infrastructure. The reverse decline will facilitate the movement of men, material and rock between the underground mine and the surface infrastructure. The concept of a reverse decline is a convenient method to access the ore body from an area adjacent to the plant. Murray & Roberts was awarded the contract to complete the mine decline development infrastructure. At the end of 2011, more than 1000 m of underground development had been completed. Sandvik is supplying 51 underground vehicles, of which more than 20 are already on site. Aard (formerly Boart Longyear) will supply 50 multi-purpose utility vehicles, of which 27 are also already on site. LEFT The development of the reverse decline from surface will link the reef declines to the plant and other surface mining infrastructure BELOW Construction of the permanent change house, which incorporates a solar panel heating system on the roof, is underway. It must accommodate 1 300 personnel

Main plant sub-contractors: • FLSmidth - flotation cells, filter press (Pneumapress), thickeners • Polysius - two shell supported ball mills • Basil Read - earthworks • Grinaker LTA (Civils) - plant civils • Radon Projects - plant buildings • SMEI Projects – front end steelwork, platework and mechanical erection • Concor – main plant steelwork, platework and mechanical erection • Tubular – electrical and instrumentation installation contractor

The plant The Booysendal North concentrator plant consists of an upfront primary and secondary crushing system, a DMS plant circuit (to improve ore feed grade), primary and secondary shell-supported mills (supplied by Polysius), primary and secondary rougher and cleaning circuits, a spiral plant (for chrome recovery) and a concentrate filter press. Additional footprint at the concentrator site to accommodate future expansions has been allowed for. The UG2 reef is recognised for its high chrome content, which explains the incorporation of a chrome recovery spiral plant within the overall plant design. At the end of 2011, all earthworks for the plant were completed, and the civils well advanced. Structural steelwork erection commenced in October 2011, and the mills reached site in November. Approximately 13 000 m3 of concrete is planned to be laid, and 3 000 t of steel and plate to be erected. Fraser Alexander has completed the design of the tailings dam, and commenced with site work on a lump sum turnkey (LSTK) contract, at the end of 2011 as well.

Inside Mining 02/2012

PRESTIGIOUS PROJECTS OF 2011/2012 The dam will be third generation, with barge pumps returning water to the plant. The process: Mechanised mining of UG2 ore » rate: 187 500 tpm » transported to footwall conveyors which deliver ore to plant » mill feed: 150 000 tpm » MF2 circuit with filter press » final concentrate ready for delivery

General mining infrastructure Although Eskom has commenced with site establishment for the main 132 kV substation, a 5 MVA temporary power supply line from Mototolo has been installed and commissioned. The main access road to site is complete, as are the pollution control dams. The service water supply, Lebalelo pipeline, was extended and commissioned at the end of 2011. Earthworks for the general mining buildings and stores are well advanced, and construction of the permanent change house, which incorporates a solar panel heating system on the roof, is underway. It must accommodate 1 300 personnel.

ABOVE The design of the mine consists of an on-reef section, with five adit entrances extending from the side of a mountain where the ore body starts and continues downwards To date 3.1 million man hours have been worked, with just less than 2 000 people on site.

Main general infrastructure subcontractors: Grinaker LTA Earthworks – roads Murray and Dickson – Lebalelo pipeline Ya-Rena – civils MMJV – buildings Concor – structural Pugs – on site rehabilitation

TOP TEN FEATURES of Fedics Site Services: 1.

Sub-Saharaâ&#x20AC;&#x2122;s leading supplier of turnkey camp management and site catering services

A 40-year track record of reliable service partnership in hostile terrains

Fedics Site Services

No site is too distant and no project too small or too large for us

7 Arnold Road, Rosebank

Our multi-dimensional solutions are tried and tested, and customised for your needs

We understand and accommodate local languages, laws and cultures across Africa

We employ and upskill people in local communities

We use highest quality, seasonal fresh foods and source products and supplies locally

We enhance the productivity, wellness and morale of your people

We ensure your project team a Home From Home experience

South Africa, 2196 Tel: +27 11 441 5300 Fax: +27 11 441 5697 www.fedicssiteservices.co.za

FEDICS

site services

10. We leave no environmental footprint

PRESTIGIOUS PROJECTS OF 2011/2012 PAN AFRICAN’S PLATINUM PROMISE

Phoenix flies Not only did Barberton gold miner, Pan African Resources (PAR) deliver on its promise to start producing PGM concentrate from its new Phoenix project at the end of 2011, it has also concluded a five year sales agreement with Lonmin operating subsidiary, Western Platinum Limitied (WPL) for its concentrate, writes Laura Cornish. The simplified process Chrome tailings containing PGMs is first thickened and then sent through an ultra-fine vertical grinder supplied by Metso. Ultra-find grinding is used to enhance the recovery of PGMs. The milled material is then floated and concentrated in a flotation circuit to plus 100g/t and then sent to Lonmin’s WPL smelter.

LEFT View of the end processing circuits of the Phoenix CTRP

t is official – the end of 2011 saw PAR elevate its mining status from a junior gold company to a mid-tier precious metals miner, thanks to the hot commissioning and early production start-up of its R104 million Phoenix chrome tailings retreatment plant (CTRP). Basil Read Matomo, a subsidiary within the Basil Read Group, was responsible for the full engineering, procurement and construction contract for the plant. Minerals processor, Metanza will run the plant. Situated within the property of International Ferro-Metal South Africa (IFM’s) Lesedi chrome operation near Mooinooi and Haartebeespoort Dam, the Phoenix

Inside Mining 02/2012

CTRP will process chrome material from a variety of tailings dams (the Elandskraal, Kroondal, and IFM dumps), in addition to all current arisings from the Lesedi operation. The purpose of the plant will not be for chrome recovery, but PGM recovery. It will initially process 20 000 tpm of chrome tailings to produce 12 000 oz of platinum group metal (PGM) material (platinum, palladium, rhodium and gold) per annum. This means that over a 17 year lifespan, Phoenix should produce 174 000 oz of PGMs, of which it will sell the entire concentrate amount to WPL for five years. The project’s initial grades for the first

few years will average about 3.6 g/t, but this will settle down to about 3.15 g/t over its lifespan. One of the greatest variable impacts on the Phoenix project is recoveries. Metallurgical test work on samples was extensive, and resource estimates were compiled in accordance with the SAMREC code. ENC Minerals, processing solutions specialists, was selected to convert the resources to reserves, and settled on an average recovery of 45% - based on the optimal configuration of the plant. Reserves are estimated to be 174 000 oz, out of a total resource based of 470 000 oz. “As a result of a proper drilling programme, we also understand the grade variations within the dumps themselves, and between the different dumps. This means our comfort of what will be fed into the plant will deliver in terms of grade control,” Ron Holding, PAR mining executive notes. PAR had evaluated alternative potential sales agreements prior to concluding a deal with Lonmin. “We are extremely pleased to announce the production of first concentrate from Phoenix, two months ahead of schedule,” CEO for PAR, Jan Nelson, announced prior to the official Phoenix site visit in November 2011.

PRESTIGIOUS PROJECTS OF 2011/2012 The secondary dumps

While full production capacity should be reached in early 2012, PAR is already progressing with plans to double Phoenix’s capacity from 20 000 to 40 000 tpm, at an estimated real capital expenditure of R92 million “Being the first major capital project, it was imperative that we achieved our milestones on schedule and budget. The conclusion of the five year sale of PGM concentrate agreement with WPL, and the early production of PGM concentrates, will provide the company with a platinum revenue stream commencing towards the end of the third quarter of this financial year. We have now completed our transition into a producer of both gold and PGMs.” While full production capacity should be reached this year, PAR is already progressing with plans to double Phoenix’s capacity from 20 000 to 40 000 tpm, at an estimated real capital expenditure of R92 million.

The upgrade is expected to be concluded in the next 24 to 30 months. “There are two expansion options we are considering,” explains Holding. IFM, through its subsidiary, Sky Chrome, is increasing production at its plant in Bapong. Phoenix is tendering to process these tailings (which would add 15 000 tpm). This would allow Phoenix to operate at 40 000 tpm for the next 17 years. It is estimated that the total PGM oz will be increased from 174 000 oz to 282 000 oz. If the company cannot secure the contract, the Phoenix upgrade will still proceed ahead, which would result in reduce d life of mine (LOM) from 17 to 10 years. “PAR is endeavouring to secure more

Elandskraal These dumps originate from historic Samancor and Hernic operations. Some tailings originating from the old Buffelsfontein chromite tailings were also deposited on this site by Hernic, and are referred to as the Gould Unterhalter dumps. The mineralogy of the tailings is very similar to the IFM tailings. Phoenix’s agreement entitles it to remove and treat 946 330 t. Kroondal Phoenix owns the common law rights to the PGM material contained in the Kroondal dump and vicinity of Rustenburg. Xstrata Chrome owns the chrome content. *The waste material from the CTRP will be placed on IFM’s current tailings site for four years, after which Phoenix will construct its own tailings facility.

chrome tailings from other sources, of which the opportunity to do so is plenty,” Holding adds. BELOW LEFT View of the thickening circuit BELOW RIGHT Water is introduced to the tailings material to ensure it can be properly processed as slurry material

Operations management with strong technical support for Phoenix Metanza Mineral Processors (Pty) Ltd is proud to have been awarded the operations and maintenance contract for the Pan African Resources (Pty) Ltd Phoenix platinum concentrator. Metanza is a company which provides performance incentivised operations and maintenance services to the mineral processing industry in southern{Africa. Metanza’s involvement in the Phoenix project extends to the early stages of resource estimation, metallurgical test work and process design through the involvement of Metallicon Process Consulting (Pty) Ltd, a major shareholder in{Metanza. The Metallicon team has been involved in the design and operation of the majority of the platinum group metal (PGM)from chrome recovery projects in South Africa. Coupled with the company’s understanding of the fundamental aspects such as the mineralogy and the mode of occurrence of the PGM’s, its hands-on experience in designing and operating Ƭve similar operations proved invaluable in optimising the design of the Phoenix plant.

Tel: +27 (0) 12 259 0792 • Fax: +27 (0) 86 688 3797 E-mail: info@metallicon.co.za • www.metallicon.co.za Michael Valenta Managing Director Cell: +27 (0) 83 357 2351 Mail: mvalenta@metallicon.co.za

Hendrik Snyman Director Cell: +27 (0) 82 328 4116 Mail: hsnyman@metallicon.co.za

PRESTIGIOUS PROJECTS OF 2011/2012 A new gem for GEM

In the sands of Ghaghoo Gem Diamonds is currently building the first underground diamond mine in Botswana, and making use of cutting-edge technology to advance through the unconsolidated Kalahari sands. Willem Smuts takes a look at the project status.

haghoo” is the name of a locally abundant camel thorn acacia tree, and is the name historically used by locals to refer to the area before geological exploration teams arrived over 30 years ago, renaming the area “Gope” – literally translated as “nowhere”. The mine, with the Gope 25 kimberlite pipe, is located about 45 km within the eastern border of the Central Kalahari Game Reserve, and will adhere to the highest environmental standards, to ensure minimal environmental impact from its development. Independent advisor Marsh Environmental Services, a division of Marsh, was appointed to undertake an environmental impact assessment, which included a stakeholder engagement process. Ghaghoo’s environmental impact assessment report received final approval in October 2008. In early 2010, an updated resource statement for Ghaghoo was undertaken by three independent experts. An increase in grade

Inside Mining 02/2012

from new statistical modelling and volume, through the re-interpretation of drilling results, led to an upgrading in Ghaghoo’s total resource to 20.5 million carats, at an increased average of $162 per carat, with a total in-situ value of $3.3 billion. Two blue diamonds were also recovered from samples during the valuation work – a find of some significance in such a small parcel, given the diamonds’ extreme rarity. In August 2010, Gem Diamonds presented the Botswana government with an updated study on Ghaghoo, including the option of an underground mine, which would require significantly less capital to develop.

A decline was settled on as the most costeffective access method, and construction of the first phase began in 2011. Production is scheduled to commence in 2013 at an initial rate of 100 000 carats per annum, rising steadily to a peak steady-state production of 780 000 carats.

It’s not on top – it’s inside The first stage of development of the Ghaghoo diamond mine is progressing well, with the on-site camp accommodating approximately 250 people currently working at Ghaghoo. The bulk earthworks have been completed and the de-mobilisation of

Chinese and Indian appetite for diamonds will fuel demand growth of more than 6% a year over the next decade and almost double the size of the market, far outpacing supply increases limited by a lack of new mines. Bain & Company, 6 Dec 2011

PRESTIGIOUS PROJECTS OF 2011/2012 contractor personnel and equipment is currently under way. The October target for the completion of the portal was achieved, and construction of the open-face tunnel shield is progressing according to plan, with operator training having commenced at the end of October. Manufacture of the concrete tunnel segments has begun in Gaborone, and the first shipment of these tunnel segments delivered to site. Sand-tunnelling operations commenced, as scheduled, in early December 2011. This entails excavation work for the concretelined segmented sand tunnel, 403 m in Kalahari sand and 121 m in transition from sand to basalt, which acts as a cylindrical shield to protect workers and equipment located underground. The tunnel will be developed to 112 m vertically below the surface, at an inclination of 80.

Homespun solution

RIGHT “We are proud to be associated with the engineering and fabrication of the open-face tunnelling shield to be used on a decline shaft at the Ghaghoo Diamond Mine in Botswana,” says Laszlo Boksan of Boksan Projects. of this tunnel through sand is the shield within which the team will be advancing downwards. The construction of the shield was undertaken by Boksan Projects of Olifantsfontein, South Africa. The sand tunnel is due for completion at the end of June. Gem Diamonds CEO, Clifford Elphick, comments: “The development of the Ghaghoo mine is advancing well according to schedule and on budget. These growthfocused initiatives will help Gem Diamonds significantly enhance its production profile and increase its exposure to the positive impact of the diamond market supply/demand

fundamentals in relation to long-term diamond prices. “We believe the Ghaghoo project offers the potential to unlock considerable value for our shareholders and stakeholders.”

Project key facts Company name: Gem Diamonds Botswana

According to Olaf Iversen, Redpath South Africa mine manager, miners will work within the 50 t shield to move the tunnel forward segment-by-segment, by loading the sand onto a conveyor belt before it is fed out of the mine. “The width of each segment for this particular project is 0.61 m, and we are aiming to move forward six segments, or 3.6 m, per day,” he says. Critical to the successful construction

Mine name: Ghaghoo Diamond Mine Location: The Central Kalahari Game Reserve in the Republic of Botswana Ownership: Gem Diamonds Ltd holds 100% of Gem Diamonds Botswana Acquired: From De Beers in May 2007 Total resource: 20 532 300 carats (as at 31 December 2010) In-situ value: $4.6 billion (as at 31 December 2010) Development: Execution of Phase 1 of development is under way, with production expected to begin in mid-2013 at an initial rate of 100 000 carats per annum.

OPPOSITE Aerial view of Camp Ghaghoo. The Ghaghoo mine is extremely remote and isolated, and the majority of the 93 Redpath staff members working on the project will be located on site. In order to maximise productivity and reduce logistical challenges, staff members will be working 14 days on and seven days off. Credit: GEM

RIGHT Infrastructure layout on surface at Ghaghoo. The completed box cut 25 m deep and 171 m long into the Kalahari sand will provide safe and secure access to the underground mine. Ghaghoo will be the first underground diamond mine in Botswana. Credit: GEM

CORPORATE SOCIAL RESPONSIBILITY Gem Diamonds Botswana (GDB) recently established a partnership with non-profit organisation VOX United to drill boreholes to provide the residents of the Central Kalahari Game Reserve (CKGR) in Botswana with water, and handed over four boreholes to Mothomelo, Metsiamanong, Molapo and Gope residents at the end of August 2011. According to the managing director of Gem Diamonds Botswana, Haile Mphusu, the company is investigating the sustainable viability of various water-purification options to ensure that the boreholes

will provide potable water to the residents of the CKGR. The company is also assisting the CKGR residents with the implementation of a sustainable maintenance programme for the boreholes. The borehole-drilling programme forms part of GDB’s ongoing corporate social responsibility and sustainability programme, which is aimed at the development of a lasting, positive legacy through regular, sustained and participative communication and collaboration. The programme will also benefit the local ecosystem, as it will provide multiple sources of water at the various settlements in the CKGR.

Inside Mining 02/2012

PROFILE:

PRESTIGIOUS PROJECTS

DIAMOND DRIVERS

Consulmet’s carat-producing contract for Ghaghoo Process engineering and project house Consulmet is proving once again that its reputation in the diamond industry precedes it, thanks to one of its most recent contract awards – the construction of a new diamond process plant for Gem Diamonds’ developing Ghaghoo kimberlite project in Botswana, director Justin Macnab tells Laura Cornish.

haghoo, formerly known as Gope, has travelled a long journey since it was first acquired by Letŝeng kimberlite owner, Gem Diamonds in 2007. It was originally owned by diamond major De Beers, and was sold to Gem Diamonds for $30 million. In 2008, Gem’s development plans for Ghaghoo were large-scale – a 6 mtpa open pit was planned, with a recovery estimate of 24 carats per hundred tonnes. And the design of a large-volume recovery plant was completed on the back of this mine development strategy, explains Macnab. At the time, Consulmet, whose relationship with Gem Diamonds is longstanding, was to supply a recovery plant to the overall process plant. “We have provided consulting services to Letŝeng and an optimisation flowsheet design for its Australiabased Ellendale operation,” notes Macnab. Consulmet has seen substantial growth over the last year, which Macnab attributes largely to repeat business on the back of successful projects. Although the Ghaghoo project was temporarily mothballed as a result of the global recession, it has been revived, and its development towards production is advancing rapidly. “Our approach to Ghaghoo’s development is more conservative this time.

Inside Mining 02/2012

The intention is to develop the project in phases, and fund the project’s growth from the cash it generates once in production,” explains Gem Diamonds CEO, Clifford Elphick. “Once we start to mine the accessible ore body, we will use the cash returns to develop it further, which could either include mining at the rate at which we start, expanding the underground operation slightly, or even possibly, if the grades and returns are better than expected, revisiting the idea of developing a massive open pit,” Elphick continues. “And we are confident that the grades are going to be better than the original bulk samples.” An $85 million Phase 1 plan includes the construction of a box cut, which is already complete, and the development of a decline down 400 m to gain the quickest and easiest access to the ore body. The decline development was started in early December. This time around, Consulmet was awarded the full turnkey contract to supply a 100 tpm run-of-mine (ROM) plant. “Having completed a revised pre-feasibility study in 2010, focusing on a smaller plant – by comparison with the original – we determined a 100 tpm plant to be the most viable, and makes the most economic sense,” says Macnab.

The design of the new plant is based on a “simple flowsheet” and comprises a jaw crusher, autogenous (AG) mill, sizing and screening circuit, a DMS plant and, finally, an X-Ray recovery plant. Consulmet is also providing a degrit and water-recovery system, through which all material must be passed before being disposed onto the tailings facility.

PROFILE:

Water is not a surplus commodity in Botswana, and this will ensure that maximum quantities of water can be recycled and re-used, and the slimes dam kept as small as possible. “Although the recovery plant for Ghaghoo is new, it was originally supplied by us to Ellendale, but was never used,” Macnab explains. “I travelled to Australia to evaluate the status of the recovery plant. The 2 tph

PRESTIGIOUS PROJECTS

X-Ray suits the Ghaghoo DMS perfectly. It will shortly be returned to South Africa, where the recovery plant will be entirely re-erected and slight modifications made, as the requirements between the two mines differ slightly.” The Ghaghoo plant will be modular, so that it can accommodate future expansions. The plant will be entirely generator-driven, since its power consumption

ABOVE DMS plant which Consulmet recently supplied to Australia, similar in appearance and functionality to the Ghaghoo plant currently in construction will be small – about 1.5 MW in total. The kimberlite ore body is 11 ha in size, meaning the long-term potential of the project is significant. Should this be the case, Consulmet remains on track to have

Inside Mining 02/2012

PROFILE:

PRESTIGIOUS PROJECTS

LEFT Trail erection of a 150 tph DMS plant prior to dispatch to ensure ease of erection on site

the plant on site, commissioned and operational by the end of 2012. “We are already well advanced in terms of its fabrication,” Macnab adds. “The civils portion of the plant will start in May, with the actual erection commencing

in July. The plan is to have the plant operational by December, and take the project officially into production in July 2013,” says Ghaghoo project director Ian McAdam. According to Macnab, the only challenge in seeing Ghaghoo materialise is logistics.

“We had to rethink and design the plants’ components to be able to fit on modified 6x6 trucks with limited carrying space and capacity. “Ghaghoo is located in a very remote part of Botswana, and the only access road to the site is arduous and takes hours of travelling over rough terrain. “Portions of the distance are not road at all. This makes transporting equipment to site difficult and lengthy, but this is a small difficulty compared with the conditions when working in other African regions – which Consulmet is familiar with. “During its erection phase, we will allocate about 50 expatriates (South Africans) to site, but will also include a large local labour contingency,” Macnab states. Consulmet was awarded Exporter of the Year in the Medium Manufacturing category by the Johannesburg Chamber of Commerce and Industry (JCCI) in November 2011.

Developing Africa’s Investments Project execution and process design for the process design for the metals, minerals and mining industries mining industries.

Tel: +27 11 608 0396 Fax: +27 11 608 3853 Email: sales@consulmet.com

www.consulmet.com

PRESTIGIOUS PROJECTS OF 2011/2012 VENETIA’S EXCITING FUTURE

A major new diamond project inbound De Beers is in the process of an advanced feasibility study to evaluate the viability of developing an underground mining operation at its Venetia diamond mine near Musina in Limpopo Province.

urray & Roberts Cementation has been selected as the preferred contractor for the project, which will be considered by the De Beers board before the middle of the year. Venetia is South Africa’s largest diamond mine, representing about 40% of the country’s diamond output. Should the project be approved, it is expected to be in production beyond 2045. Although Venetia has always been a conventional open-cast operation, a decision will soon be made as to whether it can be mined more effectively as an underground mine. The feasibility study is being conducted by a De Beers team, together with their consultants TWP and Quoin, and assisted by Murray & Roberts Cementation.

The study is expected to be completed this year, and will go through a financial modelling process before being submitted to the shareholder boards. The project will proceed only if granted final approval by the shareholders. Murray & Roberts Cementation is poised to completely abandon the traditional South African approach to shaftsinking in favour of a Canadian model that undertakes all activities in the sinking cycle in-line – with no two jobs taking place simultaneously. “We believe we were nominated as the preferred contractor for Venetia based on this bold new approach,” says Allan Widlake, Murray & Roberts Cementation’s business development executive. “If the underground project is given the green light, this mine could become the first to benefit

from our progressive new methodology. “The primary driver in the transition to this methodology is safety – given impetus by all stakeholders in the mining sector to achieve ‘zero harm’ in safety terms. Companies, the unions, the Department of Mineral Resources and mining consultants alike seek ways to improve safety during shaft-sinking, and to restrict the use of certain equipment that may have contributed to safety incidents in the past.” Widlake believes this practice will bring about the same safety statistics currently being recorded by Murray & Roberts Cementation’s sister companies in Canada and the USA – a full shaft completed without one Lost Time Injury. This “zero harm” performance is attributable both to technology and to a higher skills-set among the personnel involved.

Venetia open pit

Inside Mining 02/2012

PROFILE:

ENGINEERING

ENHANCING ITS CORE STRENGTHS

Basil Read Matomo’s evolving growth strategy Basil Read Matomo (Matomo), a subsidiary of engineering house TWP Projects and the Basil Read Group, is strategically expanding and evolving its business model to ensure its current growth path remains strong, MD Erik Bruggink and director Ken Dyamond tell Laura Cornish.

ven though Matomo’s core strength remains metallurgical processing, we are adapting our business to meet the changing needs of South Africa, its mining sector and the African continent at large,” says Bruggink. At the end of 2011, Matomo completed the EPC turnkey contract for Pan African Resources’ Phoenix chrome tailings retreatment plant (CTRP) near Mooinooi. The plant is designed to process chrome materials for PGM recovery, and the project was completed ahead of schedule. There are a number of tailings retreatment projects in the pipeline, which should deliver significant work for Matomo in 2012/2013 should they progress into execution. “There are four projects in the CTRP pipeline, all aimed at recovering PGMs from chrome. With current commodity prices and good cash return rates on the plants, they make huge financial sense,” Bruggink outlines. Plants such as Phoenix are not influenced by any mining cash costs, and they consume relatively little power (no more than 2.5 MW, of which 15% of the total amount is consumed by the mill). And the technology behind these retreatment plants is evolving. The first plant built (RK1 – a JV consortium including Aquarius Platinum and Sylvania Resources) achieves 35% recoveries, while Phoenix’s recovery estimates are around 45%. At Phoenix, for example, the installation of a mainstream bead-milling unit has resulted in major recovery increases. A float circuit configuration (including multiple cleaning stages and circulating loads) allows for flexibility within

Inside Mining 02/2012

the plant, and improved grades. Reagent suites have also been improved to reduce chrome content in concentrate, and further increase recoveries. The company has also completed an order-of-magnitude study for Pan African

Resources’ Bramber gold tailings dam in Mpumalanga. The Bramber tailings dam had been used as a tailings storage facility for the company’s Barberton gold mines since 1986, and reached the end of its operational life

PROFILE:

ENGINEERING

in January 2011. A new tailings facility was commissioned at that time. Due to the current high gold price and low cost associated with the retreatment of tailings dams, Pan African Resources undertook a drilling programme to evaluate the dam as a source of additional production ounces. Matomo has evaluated that the capital cost of the Bramber tailings project – including construction of a new 1.2 mtpa plant – is approximately R250 million.

Renewable energy Late last year, Matomo was appointed the lead EPC (turnkey) contractor for the development of the Metrowind wind farm project, situated just outside Port Elizabeth at Van Stadens River Mouth. The project is one of many which have been approved by Eskom through its independent power producer (IPP) Round 1 programme. “Our contract portion includes the purchase and erection of the turbines, and all surrounding infrastructure and civil foundations, as well as connection to the

Even though Matomo’s core strength remains metallurgical processing, we are adapting our business to meet the changing needs of South Africa, its mining sector and the African continent at large – Bruggink national grid,” explains Matomo director, Gavin Chamberlain. The farm will initially include nine 3 MW turbines, each with a hub height of 95 m and a blade length of 55 m. The intention for the next six months is to achieve financial closure for the project, following which Matomo will move onto site at the end of July. “Our renewable-energy key strength will focus on wind farms and photovoltaic (PV) projects. There are potentially three PV projects, ranging between 20 MW and 40 MW, which we hope to become involved in,” says Chamberlain. In line with Matomo’s overall strategy, it will specialise in balance-of-plant EPC and civil infrastructure contracting, eg electrical, mechanical, infrastructure, grid connections and foundations. Chamberlain says the company has

ABOVE Phoenix Platinum CTRP Feed Treatment and thickening sections LEFT Phoenix Platinum CTRP flotation sections Inside Mining 02/2012

PROFILE:

ENGINEERING

built a body of in-house engineers with renewable-energy expertise. “We are also tendering on another two wind projects and three PV projects for Eskom,” Chamberlain notes. The tender close-off period for the IPP Round 2 programme is March, which should see project execution commence in 2013. In addition to diversifying outside of

processing, these projects will develop and further expose Matomo to infrastructuretype projects – on an EPC basis. “We are comfortable playing in this space, and have strategically decided to maintain this focus and strength,” Dyamond adds. Matomo has also completed a feasibility study for a plant to be owned by Bio2Watt, which converts a combination of beef manure, chicken litter and mixed waste to

ABOVE Basil Read Matomo has the technical expertise to handle wind farms, as seen in this picture BELOW 3D Image of Bramber gold plant biogas, and uses a generator to convert the gas into electricity. “We are currently negotiating contractual terms with Bio2Watt and putting together a proposal to execute the plant on an EPC basis.”

The African continent “We can see that the local mining sector is quickly spreading across Africa, in line with the majority of new mining projects on the continent. Our strategy is to follow suit,” says Bruggink. The company’s processing skill has already seen its footprint extend into Namibia, Zimbabwe, Botswana, Mozambique, Malawi, the DRC and Sudan.

Beneficiation Another sector gaining momentum in South African is beneficiation. While it is not directly part of the mining process, it is part of the mining value chain. Matomo is under way with a bankable feasibility study, looking at the beneficiation of zirconium in South Africa.

Inside Mining 02/2012

Electric Motors Variable Speed Drives Soft Starters Transformers Low & Medium Voltage Switchgear Diesel Generator Sets Power Generation & Energy Solutions

0861 00 ZEST |

www.zest.co.za

Packaged Switchgear Solutions Containerised Substations Electrical Instrumentation & Control System Installation 24 Hour Back-up & Support

Coralynne & Associates +27 (011) 422 1949

Training

ENGINEERING

A KIMBERLITE INNOVATION

Finsch’s emergency egress Late last year, diamond company, Petra Diamonds, celebrated the successful establishment of an innovative emergency egress system at its Finsch kimberlite operation.

urray & Roberts Cementation, part of the large Murray & Roberts Group, accomplished what is considered to be an industry benchmark and the system took only 11 days to complete, from design to operation. The project was initiated in order to add a temporary personnel escape route from the mine’s underground operations while refurbishment work is being conducted on a decline which normally serves as the second escape route. This is required in terms of the Mine Health & Safety Act. Finsch mine is an underground kimberlite mining operation, located near Lime Acres, 160 km northwest of Kimberley.

Inside Mining 02/2012

The mine was recently purchased from the De Beers Group by Petra Diamonds. Murray & Roberts Cementation’s relationship with Petra Diamonds is extensive, with recent projects including a winding feasibility study to deepen a shaft at Cullinan diamond mine. “Based on Petra’s confidence in our capabilities, the company approached us directly to assist with establishing a second egress system in as short a time as possible,” Murray & Roberts Cementation’s, Neil Lane, says. “Following consultations with representatives from Finsch mine and the Department of Mineral Resources’ (DMRs’) Mine Health and Safety Inspectorate, it was decided to utilise an existing 2.1

metre diameter raise-bored ventilation pass that extends 280 m to the mine’s 35th Level, to create the required emergency evacuation facility. “The proposed system was reminiscent of that implemented to rescue the 33 miners who were trapped underground in the San Jose mine in Northern Chile just over a year ago. Cementation Mining Group participated in this rescue operation and used the same design principle to set up the escape route at Finsch.” Murray & Roberts Cementation mobilised shaft and mining engineers at very short notice to develop the facility, which comprises a small headgear, a winder system and a wheel-guided conveyance capable of transporting 12 people at a time

ENGINEERING

ABOVE The first passenger test run LEFT Finsch mine is situated 160 km north west of Kimberley RIGHT The head frame with the capsule installed

to the surface in the event of an underground emergency. The conveyance has an outside diameter of 1.8 m and is 3.5 m high. It is constructed from steel and screening, with a gridded floor and some grating on the periphery, and is guided by nine wheels at the top and nine at the bottom, allowing for about 50 mm of play around the conveyance. The 12.5 m headgear was sourced from Murray & Roberts Cementation’s plant store yard and in-house workshop at its

“The team at Bentley Park mobilised very rapidly to modify the headgear to the required specifications and prepare other parts of the system, such as the 110 kW winch, and the manufacture of the steel conveyance,” Lane says. “The entire winch system was containerised and pre-commissioned at Bentley Park, so it was a case of ‘plug-and-play’ when the facility arrived on site at the mine. The mine threw a concrete slab in preparation and, when the winder arrived, it did not take long to couple up the cables and get the system going. “Bentley Park also manufactured and installed the bottom station steelwork, which comprised about 1.5 t of steel. This

The proposed system was reminiscent of that implemented to rescue the 33 miners who were trapped underground in the San Jose mine in Northern Chile Bentley Park facility near Carltonville. The infrastructure support provided by this facility includes a fabrication shop, a raise and exploration drilling machine repair workshop, general workshops for mining equipment re-builds and repairs and plant and equipment storage facilities. The facility also offers an extensive mining training facility.

is a pretty unique type of platform as it was manufactured in modules to allow it to go down the shaft and be assembled underground. It has been designed in such a way as to allow access to the conveyance from any side, which boosts the safety factor in the event of a disaster.” The winch complies with all regulations stipulated in Chapter 16 of the Mine

Health and Safety Act. The winch is electrically powered, with standby generators available, and travels at a speed of 0.5 m/s. “Commissioning of the system components took place throughout the project. The winch and controls were tested at the point of manufacture and were commissioned as they were assembled.” The mine has taken over full responsibility of the winding system and will be responsible for regular inspections as long as the emergency evacuation system is required to be operational. Once the mine’s decline has been refurbished, the evacuation equipment will be removed and the ventilation pass will be returned to normal service. Lane concludes, “This was a unique project for the South African mining industry. Normally an undertaking of this nature would have a lead time of about 14 weeks.”

Inside Mining 02/2012

WATER PANEL DISCUSSION VEOLIA WATER SOLUTIONS & TECHNOLOGIES SOUTH AFRICA

An upswing in desalination demand? The concern regarding mine wastewater seems connected to one issue at present – acid mine drainage (AMD). While this is a problem of substantial concern and alarm, the mining industry’s wastewater issues extend beyond AMD and are becoming increasingly critical to manage, writes Laura Cornish.

reventing the contamination of all water sources has become a government priority and water discharge standards are increasing rapidly,” says Martin Kotze, proposals manager for Veolia Water Solutions & Technologies South Africa (VWS South Africa). VWS South Africa is a subsidiary of Veolia Water Solutions & Technologies, a global water and wastewater treatment technology company. The company provides the full range of services, including engineering, project management, design-build and maintenance services of potable water, process water and wastewater treatment plants. AMD is not the only mining-related wastewater challenge. Wastewater from any mining operation contains heavy

metals which contaminate water sources and negatively affect wildlife, etc., if it flows into catchment water areas. “As a result of pressure on conventional water sources, we anticipate an increase in the demand for desalination plants within the sector,” says VWS South Africa senior process manager, Johann Hofmann. Kotze and Hofmann refer to seawater desalination plants, as well as those with discharge outlets into rivers and streams. At present, desalination in South Africa’s mining industry is not common practice, especially when compared to the number of global desalination installations. “We have a number of desalination plants installed at South American, Australian and Canadian mines,” says Kotze. VWS South Afrca is expecting its first mining seawater desalination plant contract to be awarded this year. The company offers the local mining industry advanced wastewater recovery technologies, such as the patented Actiflo clarification system – a cost-effective system for removing suspended solids and particulate matter. As water becomes a more treasured commodity, desalination plants will help to prevent mining companies from contaminating pure water sources, allowing for water re-use within a mine’s processing plants and the creation of drinking water, if required. “Our clarifiers are skid-mounted and have a smaller plant footprint than LEFT The zero liquid discharge plant designed, built and commissioned for Sasol Secunda to recover water and other valuable products from the effluent

Inside Mining 02/2012

ABOVE A highly efficient water and wastewater clarification process, combining micro-sand enhanced flocculation and settling other clarification products in the market,” says Hofmann. VWS South Africa is also investing further in its Actiflo technology. Alternative thermal processes, such as crystallisation, are used in combination with other processes, such as reverse osmosis, to establish a ‘zero liquid effluent discharge’ plant. The intention is to recycle wastewater as process water and recover valuable components from brine streams. This not only helps to prevent contamination of the environment and cut dumping fees and penalties, but also provides a potential source of income for the plant operator. It is currently commissioning a wastewater evaporation and crystallisation plant for Impala Platinum’s base metals refinery in Springs. The plant has been in construction phase for 12 months and is designed to recover 331 m3 of condensate per day. It will also enhance the capacity of the refinery to further reduce the effluent inventory of its Enhanced Evaporation Spray System (EESS) ponds. Impala Platinum already has an existing crystalliser circuit, but the new crystalliser plant, designed by VWS South Africa, will enhance the treatment capacity by an additional 350 m3 of effluent per day.

WATER PANEL DISCUSSION WEIR MINERALS AFRICA

Awash with dewatering solutions Minerals processing specialist, Weir Minerals Africa, has been recording substantial growth in its de-watering pumps division year-on-year since 2006, thanks to its ability to meet the mining industries’ changing and emerging water needs writes Laura Cornish. De-watering at extreme depths As South Africa’s deep level gold mines get deeper, ensuring that they remain viable from a cash and operational perspective is becoming increasingly crucial. Weir Minerals Africa de-watering manager, Ian Farquhar, says a 3 km deep level mining operation using a typical Weir Minerals multi-stage pumping system can consume up to 21 MW of power. “Not only are we looking to introduce a new pumping scheme that will likely reduce power consumption, but we are also working to offer clients a more efficient and effective de-watering solution that can be operated remotely as it becomes unsafe to work at extreme deep levels,” says Farquhar. Weir Minerals Africa has the distribution rights for the GEHO pump range – manufactured by Weir Minerals Netherlands.

“With the incorporation of a GEHO pump system we can completely eliminate the need for settling dams. The range has also been upgraded and can effectively transport large volumes of liquid slurry/sludge directly to surface,” Farquhar continues. Considering a lot of fissure water is a higher probability at deep levels, this could be a viable solution for gold mining companies in particular, as they take their deep operations deeper effectively and efficiently. Weir Minerals Africa is already involved in pilot studies incorporating a GEHO pump system underground to quantify the results. The only potential challenge with the incorporation of a GEHO de-watering system is ensuring that the pipework and pipework installation can accommodate the pump system.

A 3km deep level mining operation using a typical Weir Minerals multi-stage pumping system can consume up to 21MW of power

Inside Mining 02/2012

“We prefer to see ourselves as a de-watering solutions provider and not just a company specialising in pumps,” Farquhar states.

The power of rental The company’s rentals business unit has also been outperforming expectations, specifically the de-watering ranges. The intention is to double the stockholding next year. “Preserving water is as necessary as preserving power,” he notes. “And one of the largest water-wasting areas is tailings dams.” For the past 18 months, Weir Minerals Africa has been assisting mining operations with low density sludge dredging by renting its submersible pump range to recover water from the slimes dams for re-use. This also prevents thick sludge layers from forming on the tailings material.

BELOW The ANZE submersible pump can be used for a wide variety of applications LEFT An Envirotech multistage dewatering pump installed underground at Northam Platinum

Excellent Minerals Solutions

WARMAN速 Centrifugal Slurry Pumps

The total solution for your dewatering applications

ENVIROTECH速 Dewatering Centrifugal Pumps MULTIFLO速 Mine Dewatering Pumps

Current acid mine drainage operations in South Africa place extreme demands on the type of pump as well as the utilisation of special materials and pumping processes. Weir Minerals has an extensive portfolio of products in stainless steel and other exotic materials suitable for the transport of acid mine water.

W NE

In line with our customer driven focus, Weir Minerals offers a pump rental concept as an attractive alternative to an outright purchase. For more information contact us on: +27 (0)11 9292600 www.weirminerals.com

WATER PANEL DISCUSSION LEFT Diesel driven dewatering pump mounted on a pontoon in operation in Rustenburg

Dewatering solutions

Preserving water is as necessary as preserving power. And one of the largest water-wasting areas is tailings dams - Farquhar The pump is attached to a pontoon and depending on the size, can pump between 30 and 700 litres per second. “Mines do not need stock for this activity, which is only necessary at interval periods, making our rental suite the perfect solution.” The same can be said for open pit flooding. “In an emergency, our rental pumps can be on site quickly, to de-flood large open pit sections. This has saved the life of the mine, in certain instances.”

Acid mine drainage (AMD) Every service provider or equipment supplier connected to any water aspect within a mining operation is keen on assisting government to tackle the acid mine drainage (AMD) looming crisis and Weir Minerals

Africa is no exception. “So many of our pumps are situated in the flooded Witwatersrand basin gold mines and can easily be restored to operation,” Farquhar notes. The company’s range of Floway vertical turbine de-watering pumps is ideally suited to pump AMD water at an average acid pH level of around 2 down to 800 m. A large vertical turbine can pump up to 3 500 cubes of water per hour and is cost saving, when using satellite pump stations, given that there is very little civil work required. The pump, which is below the surface and piped to suit, can only be seen by the motor viewed above ground. The vertical turbine pump can also be manufactured in any cast-able material and offers high efficiencies.

Th e N a me t h a t Re a lly H o ld s Wa ter ABECO

Est. 1983 Manufactured in South Africa Specialists In: Pressed Sectional Steel Tanks • Structural Steel • Supporting Towers • Water Storage • G.R.P Tanks

TANKS Abeco House, 6A Bradford Rd Bedfordview, South Africa

Tel: +27 11 616 7999 | Fax: +27 11 616 8355 E-mail: Abeco@icon.co.za

www.abecotanks.co.za

With the increasing prevalence of power outages in South Africa, Weir Minerals Africa were approached by a prominent platinum mining company to develop a solution for underground de-watering in emergency situations. The solution was an MSG 12 stage pump directly coupled to a Caterpillar 3516 V16 1 100 kW diesel-driven pump set. The specifications required were 55 litres per second to a total head of 1 050 m. This is double staged to reach the surface, meaning first pump at approximately 2 000 m and the second at 1 000 m. Weir Minerals Africa has an extensive range of de-watering solutions, including: • Multi-stage pumps with flows of up to 230 litres per second and heads exceeding 1 200 m. • Horizontal split case, single and two stage pumps. • High lift-end suction dirty water pumps. • Diesel-driven self-priming units that can achieve single pumping heads of up to 140 m and can be assembled on trailers, barges and skids. • Submersibles that can handle dirty water and slurry. • Floway vertical turbines with flows of up to 3 500 litres per second to heads above 700 m, and efficiencies up to the high eighties. Pontoons and barges for most applications, including walkways and docking stations.

Solving Application Challenges From advanced aquifer characterization, to long-term monitoring, to economical data collection, you’ll find water level and water quality measurement equipment for your application. Geologists, hydrologists, aquaculturists, and water quality professionals use In-Situ® Inc. • Remote monitoring stations • Coastal monitoring • Construction site assessments • Groundwater characterization, sampling, and monitoring • Surface water Monitoring • Mine water management and analysis (Incl. Shafts and AMD) • Remediation site characterization and project evaluations • Water conservation management

OUR GUARANTEE Over and above manufacturers warrantees all equipment supplied by SM Enviro come with our standard service guarantee. - 3 months free maintenance and on site training* - 8 hr on site support on break downs*

Also representing:

Handheld Water Quality Measurement

Automatic Sampling Equipmentt

Industrial Instrumentation

High Depth Water Quality Measurement

SM Enviro (Pty) Ltd P.O. Box 2895, Faerie Glen, 0043 | 1035 Zebediela Street, Faerie Glen, Pretoria Telephone: (012) 755 8016 | E-mail info@sm-trading.co.za | Fax: 086 658 5749

PROFILE:

WATER PANEL DISCUSSION

SM ENVIRO

Specialised monitoring Water monitoring and quality control specialist, SM Enviro, has grown approximately 35% every year since its inception in 2006. “We hope to see continued growth going forward, which we expect will come largely from the mining industry as environmental control measure regulations increase,” managing director, Vic Crüger, tells Laura Cornish.

M Enviro’s core business to date has been the sale of process and environmental monitoring instrumentation devices. It sells largely to consulting companies in the field of groundwater across Africa. Its environmental systems and equipment are mostly applied in applications such as water quality monitoring (both hand-held and long-term), water level monitoring, river gaging, low-flow sampling, logging and profiling, groundwater monitoring and resource management, industrial wastewater discharge, pipe monitoring and production wells. SM Enviro has African distribution agreements with a number of international companies specialising in specific equipment ranges, although it is actively involved in local research and development (R&D), customer service and product customisation. “The strategy, going forward, is to work more directly with clients in the various business industries, such as mining, where

Inside Mining 02/2012

we can offer the mining sector turnkey solutions, which also include air quality measuring across their entire operation,” says Crüger. Environmental quality control and monitoring is often contracted to a variety of specialists and consultants, making the integration of different systems prone to error, and problem sourcing difficult to define and correct. SM Enviro’s web-based SCADA systems can be connected to existing control systems on site if required. Alternatively, data

The company’s most exciting projects to date is the supply of eight In-Situ Level TROLL 500 instruments can be collected and distributed to static points locally and/or remotely. The company has already established an extensive African footprint in countries such as Botswana, Mozambique, Namibia, Angola and the DRC, with an established office in Ghana called Monitoring Solutions Ltd. Crüger hopes to replicate this business model, and is relocating to Zimbabwe with the objective of opening up a local company. “We are planning to do the same in Ethiopia this year as well,” he adds. The company’s work in Libya continues to see it monitoring air quality and analysis of production water at some of the country’s oil-fired power stations. Locally, SM Enviro’s mining work to date has largely seen its instrumentation

The SM Enviro guarantee A purchase of any SM Enviro product is accompanied with its extensive guarantee. This includes three months of free maintenance, an eight hour emergency response time in South Africa and a 48hour emergency response time in subSaharan Africa. The company also uses the maintenance period for intensive on-site training with all relevant personnel.

installed to monitor wastewater, particularly water that hat is being discharged rged into natural water sources. “Our products ts are ideally suitted to industry ry which requires res real-time monionitoring in remote mote locations. Ourr instrumentation incorporates alarm warnings and signals and we also off ffer system maintenance and Crüger d training,” i i ” C reveals. For mining operations, these products work well in de-watering situations, constantly monitoring changing water levels and water quality. It will soon complete a project for one of Rustenburg’s largest platinum mining houses where it was using its In-Situ and Isodaq instruments to monitor tailings dam overflow and its effect on connecting river sources. “Our equipment measures almost every possible waste influence in the water, including pH levels, oxidation reduction

PROFILE:

WATER PANEL DISCUSSION Agency distribution agreements

potential (ORP), conductivity, residual chlorine, turbidity, salinity, total dissolved solids, temperature, combustible and toxic gas and materials, as well as chemical oxygen demand (COD) and total organic carbon (TOC),” Crüger describes. One of the company’s most exciting projects to date is the supply of eight In-Situ Level TROLL 500 instruments. “They will be used to measure the level and temperature of toxic water in eight different shafts within the central and eastern Witwatersrand gold basins,” explains SM Enviro project manager, Dirk Crüger. The area could soon be the source of massive acid mine drainage (AMD) overflow as old, decommissioned shafts are flooding with toxic water, which is daily rising closer to surface. “The project was awarded to SM Enviro by the Department of Water Affairs. The company has also supplied the Council of Geosciences with handheld water quality monitoring equipment for work in the area.” The instruments will be placed down the shafts at depths of about 550 m, which no other industry competitor can rival. “Through the incorporation of marine technology, our equipment can operate to depths of up to 6 000 m. In South Africa, our deepest measuring point is 1 200 m,” says Crüger. Because its products must be sustainable for a long duration in hard-wearing

conditions, they are manufactured using titanium, which is resistant to most toxic or waste material. In addition, the equipment boasts an accuracy range of 0.1%. In an attempt to develop its business one step further, SM Enviro has proposed an entire water purification system for a coal mining operation in Mpumalanga.

In-Situ Inc. • head office: Colorado, USA • specialises in water quality and monitoring equipment • telemetry/remote, real-time monitoring • SM Enviro’s flagship distribution agreement Isodaq Technology • head office: Bromyard, UK • specialises in the development and supply of monitoring systems for the water and environmental protection industries • telemetry/remote, real-time monitoring Aquaread • head office: London • manufacturer of multi-parameter water quality test equipment (primarily hand-held devices). B&C Electronics • head office: Italy • liquid and gas analysers – well suited to wastewater monitoring. Müller Industrie Elektronik • head office: Germany • process instrumentation Elard Group • head office: Lebanon • remote (telemetry) groundwater monitoring and control of inaccessible hydrological sites Aquamatic Samplers • head office: Manchester, UK • manufacturer of wastewater sampling equipment

SM Enviro’s equipment measures almost every possible waste influence in the water, including pH levels, oxidation reduction potential (ORP), conductivity, residual chlorine, turbidity, salinity, total dissolved solids, temperature, combustible and toxic gas and materials, as well as chemical oxygen demand (COD) and total organic carbon (TOC).

Inside Mining 02/2012

WATER PANEL DISCUSSION ENVIRONMENTAL AND PROCESS TECHNOLOGIES

Enprotec’s environmental promise: Clean coal mining Environmental and Process Technologies (Enprotec’s) Dual Cell Flotation technology, designed specifically for the coal industry, is offering a solution that will recover up to 75% of uneconomic fine coal material which is currently contributing to the high levels of acid mine drainage (AMD) in various water catchment areas, writes Laura Cornish.

ot only in South Africa, but across the globe, AMD is causing environmental degradation, and as such, is of mounting concern. One of the major contributors is coal mine operations, which expose sulphide mineral surfaces during mining and milling processes. In an effort to reduce the environmental impact associated with the production of coal, it has become important to apply technologies that can reduce or eliminate these negative environmental impacts. AMD is defined as the release of dissolved metals into the environment as a result of sulphide minerals, typically iron pyrite, being exposed to the atmosphere and water, effectively generating an acidic environment. The dissolved metallic oxides have an excessive negative impact on the environment and aquatic resources. “Ultra-fine fraction discard material (<150

The Dual Cell technology is based on the process of froth flotation

Inside Mining 02/2012

microns) equates to about 6% of entire coal production volumes,” explains Enprotec managing director, Riekert Fourie. The production of fine coal material is unavoidable during the coal mining

in the plant, the remaining water is either evaporated or ends up flowing directly into natural water sources seepage of spillage,” Enprotec process engineer, Morne Kruger, outlines. In addition to severe environmental

In an effort to reduce the environmental impact associated with the production of coal, it has become important to apply technologies that can reduce or eliminate these negative environmental impacts and sizing stages, and because it could not historically be economically beneficiated in South Africa, it was pumped to slimes dams. “With only a small fraction of this water to be re- c irc ulated and re-used

implications, wasted coal material, regardless of size, if beneficiated, could contribute to alleviating the country’s strained energy supply. “It is becoming increasingly necessary to ensure that coal mine operations are as effective and efficient at recoveries as possible,” Fourie adds. Enprotec’s Dual Cell Flotation technology, when used in conjunction with ‘superior’ filtration (Enprotec supplies filter press technology), can recover between 60% and 75% of fine coal discard and turn it into a saleable product, increase an overall operation’s coal yield by approximately 3 to 4%, and reduce water

WATER PANEL DISCUSSION

consumption by approximately 50%. The Dual Cell technology is based on the process of froth flotation, which upgrades the fine waste material into a marketable product by exploiting the differences in mineral surface characteristics. It incorporates a ’unique’ method with regard to energy transfer, aeration, and reagent dosage to achieve a high yielding and extremely efficient flotation cell. “In essence, the Dual Cell Unit incorporates a novel method to agitate air, reagents and material within the flotation cells, which allows efficient separation of combustible material from discard material,” Kruger explains. Enprotec’s performance investigation of the technology has already proved that up to 66% of the waste stream can be recovered, at a product export quality of 28.2 MJ/kg According to Fourie and Kruger, if the Dual system approach is applied thoroughly, it can effectively assist in solving the water and environmental impacts of coal mining up to the point of achieving a zero effluent plant. A zero effluent plant does not produce any water/slurry by-product. This is achieved by also filtering the ultrafine by-product (waste) produces during the flotation upgrade process, which can then be discarded in an environmentally friendly method. The filter filtrate (clean water) stream can be re-circulated back to the plant, effectively eliminating the need for a slurry dam (and all the negative impacts associated with it). The need for scarce energy sources is just as dependant on the effective utilisation of current available energy resources as it is on the development of innovative

The major advantages of Enprotec’s Dual Cell flotation and ultra-fine coal technologies include: Revenue generation from recovering additional coal from a historically proven waste stream. Recovery of a valuable energy source from a waste stream, which in turn improves the efficiency of the coal operation as an energy producer. By eliminating the need for slimes dams, the risks associated with negative environmental impacts, such as AMD, dust, water pollution, impact on bio-diversity and ground water contamination are eliminated. The water consumption of the coal operation is reduced up to 50%, hence reducing the environmental footprint of the mine, saving costs associated with water pumping and saving South Africa’s scarce natural resource.

renewable energy sources. Coal as an energy source has negative environmental impacts associated with its production, such as AMD, large carbon footprint operations impacting on bio-diversity, and large consumption of South Africa’s most scarce natural resource- water. Enprotec has proven by means of

various pilot scale and production plants that up to 66% of the waste streams can be recovered at a product quality of 28.2 MJ/kg which is at export quality. The product from the flotation process is then filtered and blended with another coarse export product stream ready to be exported.

WATER PANEL DISCUSSION PIPING TONNES OF TAILINGS

Marley’s mining pipeline Plastic pipe system solutions specialist Marley Pipe Systems (Marley) has strategically positioned itself to provide complete turnkey piping solutions to the mining industry – a sector it started focusing on less than a year ago, writes Laura Cornish.

hanks to the completion of a major piping project in the mining sector, and the incorporation of a mining-specific pressure-pipe range, Marley has made a prominent mark in the industry. Peter Ker-Fox, Marley sales and marketing director, believes the piping industry is extremely fragmented. “Most piping companies are not able to supply clients with a complete turnkey solution. Our strategy is to do just that, while continuing to provide innovative ideas for individual client needs. “We offer a full HDPE and uPVC range – unique in the piping industry – enabling us to provide fit-for-purpose solutions. We also provide the required fittings and a large variety of valves,” he continues.

Ergo pipeline In October 2011, Marley, in collaboration with a local operator and installer of fluid conveyance and innovative pipeline solutions, Mocke Construction, completed the installation of the longest known gold slurry tailings pipeline in Africa, for mining client DRDGold. The project involved the installation of a sturdy 50 km pipeline from DRDGold’s Ergo plant outside Springs to Crown, the world’s largest gold tailings retreatment facility in the country. The pipeline will be used to transfer gold slurry material from seven reclamation dumps in the surrounding plant area along the line to the Ergo plant. Once the slurry has been retreated, it will be pumped to the Brakpan dump and

ABOVE Pipe installation underway discharged. The Brakpan dump has been expanded and the number of mine dumps in the Witwatersrand diminished. Working alongside Mocke Construction as a supplier and advisor, was Marley division, Marley Infrastructure. The successful completion of such a wideranging project depended on Mocke’s Sureline technology, a cost-effective process of inserting folded HDPE liner pipe into a steel pipe, and then expanding it with air to its original shape to match the interior diameter of the steel pipe. Due to the abrasive nature of slurries, a typical steel pipe would last only weeks. However, by introducing an HDPE liner through the Sureline process,

Inside Mining 02/2012

WATER PANEL DISCUSSION Marley provided all of the piping product for the project

the system is expected to last in excess of 34 years. According to Mocke, the process provides a non-disruptive, faster installation and longer-length lining than any other technology available. Integral to the Sureline technology process was the constant supply of quality Marley HDPE pipes, which have highly abrasive and corrosion-resistant properties. Marley supplied pipe worth R23 million to the project, equating to 154 truckloads of material delivered in 10 months. “Marley provided daily interactive on-site support, and was practical and realistic about

any challenges that we encountered,” says Mocke Construction owner, Hein Mocke. “Our experience with Marley was excellent, and because of this, we have built a strategic partnership with them for the future.”

Mine-Wall and Metro-Wall Part of Marley’s mining strategy is to introduce additional mining-related products and solutions to the sector. “Because the mining industry is growing largely across Africa, I expect significant

Marley and Mocke Construction have successfully installed the longest known gold slurry tailings pipeline in Africa for mining client DRDGold growth for Marley through our already established, strong African exposure and alignment. We are well positioned to work in and access the opportunities in Africa,” says Ker-Fox. “Most recently we incorporated high-pressure pipes into our product portfolio,” adds Marley product specialist Bevan Richardson. The pipeline will be used to transfer gold slurry material from seven reclamation dumps in the surrounding plant area along the line to the Ergo plant

Inside Mining 02/2012

Mine-Wall and Metro-Wall represent a high-impact mPVC pressure-pipe range with SG iron-shouldered ends, designed for underground applications in mining. They both carry the SABS mark for SANS 1283. This particular range of pipes is easy and quick to replace and maintain, and does not corrode in acid water, nor is it affected by acidic or alkali water found in mining conditions. “Because of the coupling mechanism, these pipes are easy to dismantle and re-

assemble, making them very portable,” Richardson explains. This makes them ideal for transferring slurry material for reclamation from tailings. When exposed to fire, uPVC pipes will decompose only in the area in direct contact with the flame, and this will cease when the heat source is removed, preventing the spread of fire. The smooth bore ensures high flow rates at low friction levels throughout the operating life of the system. The smooth pipe wall is resistant to the build-up of deposits, and to abrasion. A high degree of flexibility enables the pipes to follow curves in haulage ways, often without the use of additional fittings. The pipes also have a high resistance to impact damage. Achieving the optimum life and service from a pipeline depends on design, and the correct handling and installation of the system. Marley has plans to upscale its fabrication facility in Nigel, opening it up to larger-scale opportunities in the mining industry. Marley is a founding member of the South African Plastic Pipe Manufacturers Association (SAPPMA), and is committed to the retention and enhancement of the quality and standard of all its products.

The Marley Infrastructure Solution for the Mining Industry Mine-Wall presents a quality high impact mPVC pressure pipe range designed specifically for underground applications in mining. Our commitment to quality and safety ensures that Mine-Wall is designed to adhere to best practice and stringent safety standards, and consistently provides optimum performance under demanding mining conditions.

Benefits: Quick and easy maintenance – no need for thrust blocks No corrosion – not affected by acid or alkali water Low mass – higher rates of installation and productivity Flammability – self extinguishing - prevents the spread of fire Smooth bore – high flow rates and low friction losses Flexibility – allows pipes to follow curves without additional fittings Impact resistance – high resistance to impact damage Accreditation – carries the SABS mark for SANS 1283 Marley also offers a range of fittings and accessories to provide the full solution for your piping needs.

About Marley: Marley Pipe Systems is the leading manufacturer and supplier of plastic pipe systems, innovating products directly for the market and providing the full solution for your needs within the Civil, Irrigation, Mining and Industrial markets of Southern Africa. Not only does Marley provide tried and tested products for proven results, but they also offer unrivalled service delivery and back up services that include de on-site on site support as well as technical know-how and assistance available at your fingertips. As an Aliaxis company, Marley enjoys direct access to world leading products and technology, ensuring that our clients are always ahead of the times.

Vision

Purpose

Values

To become the preferred and most respected distributor and manufacturer of quality plastic pipe systems for sub-Saharan Africa.

To provide reliable, quality plastic pipe solutions as well as superior service and added value to benefit Marley, its employees and other stakeholders.

Integrity Honesty Passion Reliability Trust Accountability Compassion Professionalism Respect Commitment Excellence Ethics

For more information on the latest product offerings from Marley Infrastructure visit www.marleypipesystems.co.za or call 0861-MARLEY

WATER PANEL DISCUSSION BIGEN AFRICA

Committed to water Part of Bigen Africa’s five-year S-Vision 2016 strategy, aimed at improving Africa’s infrastructure needs, is to help mitigate the demands on South Africa’s scarce water resources and its deteriorating raw water quality by designing, developing, managing and delivering water and waste-water treatment solutions for major industry water consumers, one of the largest being mining.

igen Africa’s approach to solving water and wastewater challenges in the mining sector is based largely on decades of experience. “The technologies we offer are determined by, and depend on, the various challenges faced by a particular mining operation. It is true that similar water challenges are faced by mines processing similar minerals, but our experience has shown that the water circuit of each mine is unique and presents unique opportunities for improved water use,” says Bigen Africa Services project director Corrie Marx. The Limpopo commitment Water is recognised as a fundamental key to economic development in Limpopo, and placed on the same strategic level as minerals. One of the most significant approaches embraced in the management strategy of mining companies, and aligned with the Department of Water Affairs Integrated Water Resources Management solutions within a complex system, is user integration. Within this paradigm, the mining companies in Limpopo, through the strategic development and implementation support of Bigen Africa, have played a pivotal role in creating cohesion in the sector to address the urgent need for water in the province. The Olifants River Joint Water Forum, with 28 mining companies situated in the Eastern and Northern Limbs of the Bushveld Igneous Complex, was established in 2004, with the support of Bigen Africa. This formal mining-sector partnership was created to facilitate the development of the Olifants River Water Resource and Services Development Project, a presidential project. The project, valued at R10 million, is inclusive of the construction of the De Hoop Dam, which will supply water to the mining industry as well as three municipalities in the Sekhukhune area. It is further inclusive of augmentation of water supply to the Flag Boshielo Dam, which will enable water provision to the mining industry and two municipalities in the Capricorn and Mogalakwena regions. A bulk distribution system will be put in place to ensure distribution of water to the various areas. It is foreseen that mining development in the Eastern and Northern Limbs of the Bushveld Complex will create 30 000 direct and indirect jobs by 2030. Bigen Africa is playing a fundamental role in ensuring that this impact is achieved. Pic: De Hoop Dam

Inside Mining 02/2012

“Bigen Africa engages with mines to fully understand their individual water circuits, and then develops appropriate solutions which best fit their operational and legislative requirements. We also assist mines in developing rural communities, as part of their social investment programmes.” This approach has seen the company take on considerable work in the sector, where it is currently involved in a number of projects dealing with the planning, design and implementation of source development, water supply, water and waste-water treatment, water conservation and demand management, and water reclamation for a number of mines and mining groups. The key to retaining a strong position in the mining industry going forward – in terms of meeting its water needs – is to understand and meet its current needs and difficulties, Marx notes. “Protection of the environment is one of our key objectives in developing solutions for the mining industry, but the delays caused by the environmental authorisation processes should be reviewed,” Marx points out. Bigen Africa engages with the relevant national departments at the very early stages,

in order to raise awareness of projects and ensure they develop as non-threatening entities to their environment. “We are currently involved in a number of producers’ forums in the Eastern and Western Limbs, where a number of waterrelated (and other) projects are being developed. These projects include studies to augment water supply to the areas by means of large water transfer schemes, water demand management, water re-use and projects to improve the water-supply systems to neighbouring communities,” Marx explains. One such project includes the review of a mine water balance and the development of a water-reclamation facility to reduce the total water consumption of the particular mine. Another includes the sourcing of water and the development of a water-supply system for a new mine in a water-scarce area. Bigen Africa’s water commitment also extends to the much-talked-about acid mine drainage (AMD) crisis that South Africa is currently facing. “We have been involved locally on a number of mines, as well as in Australia, in developing treatment processes for acid mine drainage prevention and treatment,” Marx notes.

â&#x20AC;&#x153;My future?â&#x20AC;?

â&#x20AC;&#x153;Infrastructure!â&#x20AC;?

Delivering sustainable infrastructure that improves our world. ITâ&#x20AC;&#x2122;S OUR SMARTER BUSINESS APPROACH.

*VU[HJ[ ^^^ IPNLUHMYPJH JVT VY [OL VMĂ&#x201E;JL TVZ[ JVU]LUPLU[ [V `V\! 7YL[VYPH " 1VOHUULZI\YN " )SVLTMVU[LPU " *HWL ;V^U " +\YIHU " ,HZ[ 3VUKVU " .HIHYVUL NHIVYVUL'IPNLUHMYPJH JVT" 2\Y\THU " 4HĂ&#x201E;RLUN " 4[OH[OH " 5LSZWY\P[ " 7VSVR^HUL " 9PJOHYKZ )H` " 9\Z[LUI\YN " <T[H[H " >PUKOVLR

INFRASTRUCTURE PANEL DISCUSSION BIGEN AFRICA

Sustainable infrastructure solutions for Africa Infrastructure and engineering major, Bigen Africa, has enhanced its vision, mission and value proposition to reflect its strategy by providing innovative, sustainable infrastructure development solutions in Africa and abroad over the entire lifecycle of a project.

he company’s new vision emphasises the improvement of the quality of life for all through sustainable infrastructure development. Its mission is to become the ‘thoughtleading multi-national infrastructure development consultancy’, with three main capabilities spanning 13 sectors, including water, sanitation, roads, energy, housing and rural development: • engineering (e.g. civil, structural and electrical) • management consulting (e.g. programme and asset management) • development financing (e.g. project financing and transactional advisory). While strengthening the southern Africa business, with South Africa as the regional port of entry, Bigen Africa will also expand its African footprint, initially into West Africa through Ghana (Bigen Africa already has two offices in Nigeria) and then into East Africa through Kenya. By 2016, Bigen Africa will expand its offices into Central and North Africa through its current ‘project’ approach, as opposed to an ‘office-focused’ approach. Bigen Africa has 14 offices in South Africa and is represented in eight countries on the rest of the continent, including Mauritius. Its expansion vision focuses on using its ‘partnership strategy’ as the platform for doing business outside South Africa and Africa. The brand is increasingly recognised in Australia, Ireland, Britain, Dubai, Iran and China.

Inside M Mining in n in ng 0 02/2012 2/2 2012

Contributing to sustainable infrastructure development “Our infrastructure development strategy is clearly focused on contributing towards a country’s strategy by addressing its resource, political, economic, social, environmental and technological issues, which are most likely to significantly impact on the lives of people over the shortand medium- to long-term. We recognise the need to participate in assisting countries to address their key emerging public policy priorities which, among others, include integrated human settlements, water and sanitation, rural development, renewable en-

ergy, mining, r o a d and rail freight transport, health and education, development/project financing, operation and maintenance of existing

infrastructure,” says Bigen Africa CEO, Dr Snowy Khoza.

Enhancing development impact: poverty reduction, capacity building and job creation Dr Khoza adds that, “Infrastructure development is, first and foremost, about the sustainable benefits of the socially desirable developmental outcomes that emanate from the use of the infrastructure. Our commitment to all the countries that we operate in (through our annual social compacts) is contributions with a development impact.” The development impact includes: • access to services such as water and sanitation, energy and roads for communities • reduction of poverty through, inter alia, rural development by facilitating agricultural beneficiation of products • capacity building, empowerment and skills transfer to local labour and small businesses for sustainable broad-based empowerment or indigenisation • creation of sustainable, quality job opportunities for communities.

‘Doing good’ while doing business Bigen Africa’s corporate social responsibility (CSR) philosophy involves ‘doing good’ while doing business. Dr Khoza emphasises that, “Gone are the days when corporates will take resources from communities and, as an after-thought, give ‘something’ back. As we plan projects, we also plan our contribution towards the community’s priority needs in order to leave and maintain a meaningful legacy.”

A new drilling system for hard rock mining Faster face advance and less energy use JYLH[L PUJYLHZLK WYVĂ&#x201E;[Z for mining companies

The Peterstow drilling system runs off closed loop water hydraulics. It consumes less power and water than conventional systems and doesnâ&#x20AC;&#x2122;t require compressed air.

Visit us at the Mining Equipment Network Pavilion at Mining Indaba Peterstow Aquapower (Pty) Ltd + 27 (0)11 252 1100 www.peterstow.com sales@peterstow.com

INFRASTRUCTURE PANEL DISCUSSION JOZI POWER

Power in the rough Jozi Power’s diesel-driven generators are designed to ensure that new mining projects in even the remotest parts of Africa, are not influenced or delayed in their search for reliable alternative power sources, writes Laura Cornish.

ozi Power owns a fleet of 1 MW containerised diesel-driven generator sets which fit compactly into six m shipping containers, making them easy to transport. Each genset container is effectively a self-contained mobile power station. It includes a diesel engine, alternator, cooling system, 1 000 litre fuel tank, flexible control system, motorised synchronising circuit breaker, silencers, air filters, fuel filters and water-in-fuel detectors. All gensets can be controlled and operated either locally on the integral control panel (accessible from outside each genset container), or remotely via a central control panel with full alarm monitoring capabilities. These genset packages have the option to be either re-fuelled locally or through connection to an onboard automatic fuel control system for bulk supply. The gensets are built by an engineering firm in Cape Town to managing director, Leslie Dann’s stringent specifications. The engines, however, are supplied from Germany. The business has grown successfully through Dann’s business philosophy of executing short and medium-term power projects in harsh environments for mines and large industries in Africa. “Our growth strategy is to ensure that Jozi Power always has enough capacity to supply mines which require power for development and construction, or do not want to be delayed with scheduled production start-up dates whilst waiting Each genset container is effectively a self-contained mobile power station

Inside Mining 02/2012 2/2012

to secure long-term, regular power, usually from a power station,” Dann explains. Jozi Power aims to always have at least 10 MW of power available for fast-track mobilisation to any site in Africa, at voltages up to 33 kV. In 2010, the company supplied 5 MW of power to Platinum Australia’s Smokey Hills operation on the Bushveld Complex’s Eastern Limb, which enabled the entire process plant to continue running after its previous power source was interrupted

The Genset package: Engine

MTU 18V2000G65 Engine rated speed – 1500 rpm

Alternator

Stamford Type PI734B1 1,260 kVA , 400V

Control systems

Woodward

Air filters

Combustion air - 2-stage Donaldson

Fuel filters

Fuel filters with water content monitoring

Our growth strategy is to ensure that Jozi Power always has enough capacity to supply mines which require power for development and construction, or do not want to be delayed with scheduled production start-up dates whilst waiting to secure long-term, regular power for eight months. Dann proudly recounts how they transported, installed and commissioned this power station in less than 12 hours following the client’s request to mobilise. Its latest contract is the supply of 15 MW of power to AIM-listed African Minerals Ltd (AML) - a minerals exploration and

development company with significant iron ore interests in Sierra Leone. The initial 15 x 1 MW generators, explains Dann, supplies power to AML’s greenfields Tonkolili iron ore Phase 1 operation, as well as the temporary, refurbished Pepel Point port,

OZI JPOWER

Jozi Power Limited rents out, operates and maintains a fleet of containerised 1MW diesel generator sets to African mines and other large consumers for short to medium term periods. The gensets are used in combination with our range of stepup transformers to provide fast-track power stations of 1MW to 15MW. Voltages: 400V, 525V, 660V, 1000V, 6.6kV, 11kV, 22kV and 33kV

www.jozipower.com Mauritius Office: Leslie Dann +230 4996117 leslie.dann@jozipower.com

South Africa Office: Willem Schoeman +27 (0)72 3864315 willem.schoeman@jozipower.com

INFRASTRUCTURE PANEL DISCUSSION LEFT Jozi Power gensets on site at Pepel Point port

which will be used exclusively to export AML’s production to China and other parts of the world. The port is connected to the mine by AML’s newly constructed 200 km railway line. Tonkolili became operational in the fourth quarter of 2011, and will ramp up to full production - 20 mtpa of iron ore – by 2013. “The generators supply power to the mine camps, laboratory, and the process Jozi Power offers the following transformer capacities to complement its generator rental fleet: Input Voltage Output Voltage Fleet Capacity

400V

525V

2500kVA

400V

660V

1250kVA

400V

1000V

2500kVA

400V

6.6kV

12MVA

400V

11kV

12MVA

Inside Mining 02/2012

plant. Although the process plant will eventually consume 6 MW of power in total, it will only require 3 MW of generator power under normal operating conditions,” Dann explains. Because the conveyor belts feeding the plant run downhill, the gravity action will produce an additional 3 MW of power, which will be fed directly into the plant. At the port, the generators will be used to power the conveyor belts feeding BELOW Mobilisation of gensets to the Smokey Hills operation

the stockpiles and for loading material onto ship. The first gensets reached the site in December 2010 and the first ore ship was loaded on 4 November 2011. Dann says he is proud of his company’s contribution in bringing this project to fruition. Thanks to this integrated mine/railway/port project, Jozi Power currently has a total installed base of 15 MW in Sierra Leone. Jozi Power and its associated companies currently have independent power contracts in Tanzania, Mali, Sierra Leone and South Africa. Dann boasts that the Jozi gensets “are the most cost-effective and fuel-efficient generators in their class.” When asked about the environmental issues related to diesel-fuelled power generation, Dann points out that diesel power is ‘greener’ than coal-generated power. Diesel engine emission levels are regulated in most parts of the world and are becoming more stringent every year. Dust and diesel filtration techniques feature prominently in the Jozi genset design which is the result of valuable experience since Dann commissioned his first genset in 2001. The Jozi Power design for example, incorporates probes which test continuously for water in the diesel – a problematic issue in isolated territories. “Our fleet is truly designed to withstand the harsh African conditions”.

TPS.P Architects

ARCHITECTS OF CHOICE FOR THE MINING INDUSTRY, ALSO SPECIALISING IN: - COMMUNITY & EDUCATIONAL - INDUSTRIAL & HOUSING - HOTELS & LEISURE - COMMERCIAL & RETAIL - AIRPORTS & TRANSPORTATION - INTERIORS DESIGN & SPACE PLANNING

1st floor, Guild Hall 5 Anerley Road Parktown PO box 29082 Melville 2109 Johannesburg South Africa

T: 011 646 8602 F: 011 646 8194 E: info@tpsp.co.za

www.tpsp.co.za

INFRASTRUCTURE PANEL DISCUSSION TPS.P ARCHITECTS

Building the foundation blocks

TPS.P Architects, part of mining engineering group TWP Holdings, has been resourcing the mining sector for over 30 years, and continues to be an essential component in the overall mining value and development chain, writes Laura Cornish.

ousing and public buildings may not be the core focus for a mining company, but they remain a vital component of any mining project’s overall development prospect. “TPS.P has been designing the necessary ancillary building infrastructure for mines throughout Africa since mining houses started divesting of their services departments, which included internal architects, in the late 1970s and early 1980s,” says TPS.P director, John Tyser. Having worked as an architect for Rand Mines, Tyser retained his strong mining focus and relationships when TPS.P was established, ensuring that the company grew immediately on the back of the sector. The company’s architectural services to the mining industry include the design of mass housing projects or villages, onsite mining buildings (change houses, offices and warehouses), training centres and

Inside Mining 02/2012

community buildings (schools, churches and shops). “One of our more recent services includes the relocation of villages, a fairly unique aspect to the architecture community,” Tyser explains. This often requires TPS.P to audit existing infrastructure to ensure that, once a village is relocated, it is a carbon copy of the original blueprint village outlay. Such a relocation is not specific to houses; it includes moving graveyards and community buildings, and ensuring that the new location replicates the exact environmental conditions and business sellingspot locations, Tyser notes. With extensive experience among the mining fraternity, TPS.P continues to attribute a large portion of its business to the sector. It expects great work potential to emerge out of Africa, particularly Zambia and Mozambique, and it has

also established branches in Polokwane and Rustenburg to service its clients in the area.

Exxaro – Medupi expansion housing project Early in 2010, TPS.P completed the design of 247 housing units for Exxaro’s Grootegeluk expansion project in Lephalale. “There are over 700 units in total, which are currently in construction,” explains TPS.P director, Jeethen Paramaser. The stand-out features of this project are their sustainable elements. “All the houses have solar-heating panels, gas stoves and cavity walls, and collect grey water, making them as green and self-sustainable as possible,” says Paramaser. The project saw Exxaro Coal awarded second prize in the overall Nedbank Green Awards in 2011, and first prize in the SocioEconomic Development (SED) category.

INFRASTRUCTURE PANEL DISCUSSION

OPPOSITE Mothlothlo village relocation ABOVE BRPM changehouse RIGHT Exxaro housing The company hopes to be included in the second phase of housing development, which is anticipated to be substantially larger than the first.

Debswana – Jwaneng expansion project Based in Botswana, Jwaneng is one of the richest diamond mines in the world, and is currently undergoing a major expansion. Bateman Engineering awarded TPS.P the design contract for all new buildings required for the expansion, including the electrical and mechanical workshops, service buildings, training-centre offices, security buildings, and even the refurbishment of the mine’s on-site hospital. Construction of all buildings is well advanced.

Anglo American Platinum - Amandelbult project, and more TPS.P recently completed a 1 350 m2 office block, as well as a new 1 750 m2 lamp room, which included a communication hall, for Amandelbult PGM mine’s No. 2 Shaft on the Eastern Limb of the Bushveld complex. The office block has large verandas and roof overhangs to help keep the building cool. To keep dust from nearby mining activities out of the building, TPS.P incorporated a centre courtyard into the overall design. Amplats is one of TPS.P’s largest and longest-standing clients. “Between 2004 and 2008 alone, the company completed various building projects, SAV de-densification projects for most Anglo mines, refurbishment projects, and many occupational-health centres at Amandelbult, Thabazimbi, Randfontein ESTC, BRPM, Burgersfort, Union and Lebowa,” says director, Owen Kutumela. TPS.P is also responsible for all buildings and housing for Amplats’ 33%-owned Bafokeng Rasimone Platinum Mine (BRPM) project. “We have also completed two village relocations for Amplats in Mokopane,” Kutumela adds. In 2002 the company relocated the Ga-Pila village (about 900 families)

and in 2009 the Mothlothlo village (about 1 000 families). “We have designed over 1 000 houses (ranging from single quarters to senior management houses) for Amplats in the last five years across the eastern and western limb,” Tyser notes.

for artisans, and another 32 management houses, in Lydenburg. “The Steelpoort area has extremely poor infrastructure, making this project slightly more challenging,” says Kutumela. TPS.P has designed these houses to be sustainable, and included heat pumps for the geysers, gas stoves and large verandas.

Lonmin – K4 Shaft expansion In addition to designing all buildings associated with Lonmin’s K4 Shaft expansion project, TPS.P has also designed a 4 000 m2 underground-replica training facility which, once complete, will emulate underground working conditions. “It will be a state-of-the-art facility,” says TPS.P associate, Rishan Polton.

Rhodium Reefs (Eastern Platinum) Due for completion in April is the development of 32 semi-detached housing units

BELOW No.2 Shaft offices - Amandelbult

Assmang and Kumba Iron Ore – Khumani and Kolomela Both Khumani and Kolomela are new ironore operations in the Northern Cape. TPS.P designed 300 housing units for Khumani in the nearby town of Khatu, as well as 700 housing units for the Kolomela mine, which are currently under construction. TPS.P’s other clients: • Namibia: Scorpion Zinc, Swartkop Uranium • Zimbabwe: Zimplats, Unki, Mimosa • Mozambique: Riversdale • Tanzania: Barrick Gold • South Africa: AngloGold Ashanti – new head office (Turbine Hall in Johannesburg CBD) • BHP Billiton • Russia: Alrosa • Kazakhstan: Bateman Engineering • China: Terresa Ferrochrome

Inside Mining 02/2012

INFRASTRUCTURE PANEL DISCUSSION FEDICS SITE SERVICES

Home away from home Fedics Site Services (FSS), a pioneer in remote mining camp solutions across Africa, continues to prove itself a cost-effective, vital contributor to a fully functional and self-sustainable productive operation, literally in the “middle of nowhere”, writes Laura Cornish.

edics Site Services (FSS), backed by Fedics, has over 40 years of experience in outsourced catering in Africa. It is owned by Tsebo Outsourcing Group, a leading hospitality, facilities and cleaning management service provider. “We offer a customised and comprehensive camp solution by analysing a client’s logistical, regulatory and financial project requirements,” says FSS sales and marketing manager, Denis Hourquebie. The company is able to offer the following services: site buildings, catering equipment, recreational and/or bar facilities, camp and office furnishings, fittings and air conditioning, g, cateringg services,, housekeeping and cleaning, a laundry service, and even training. aining. It has experience in Mozambique,, the Democratic Republic of Congo (DRC), C), Namibia, Malawi, Zambia, Uganda Botswana, tswana, Lesotho, Nigeria and Swaziland. As new mining projects jects are emerging in more remote regionss in Africa, the need to provide for the workers and staff situated on site is increasing, beginning at project concept oncept stage – a man and a drill situated far from civilisation, determining termining the viability and potential ential for a mine from a mineral al discovery in the ground. “Our objective is to o minimise the risk and hassle associated with setting up and managing aging a remote project,” says FSS regional director, ctor, Andrew St Clair-Laing. ing. “Through these services, ces, we provide our clients’ nts’ employees with a home me away from home. Our

Inside Mining 02/2012

skills and abilities are flexible, and can be changed or adapted to the client’s needs.” FSS also boasts a knowledge of national and cultural diversities, enabling it to provide more than adequately for the needs of the local community. “At the end of the day, we provide our clients with peace of mind, and enable the key focus – mine development – to be delivered on time and within budget,” Hourquebie continues. Another important aspect of the FSS business model is the environment, and minimising the negative impacts on it. The company promotes and encourages recycling, re-use of material, reducing the creation of waste and using energy sources whenever possible. In addition to its core services, it also has extensive experience in outsourcing non-core services on behalf of its

clients, enabling it to provide vital longterm information such as anticipating legislative issues, predicting labour market changes, foreseeing quality standard changes, inventing new production solutions, forecasting market fluctuations and estimating market conditions.

Support services in practice FSS’s largest contract to date, awarded to the company in January 2010, entails providing meals to most of the contractors and workers at the Medupi power station in Lephalale. Medupi will be Eskom’s largest coalfired power station when running at full capacity. “During the peak construction phase, we were providing 20 000 meals a day, which included 12 000 lunch packs delivered to site every day, and the remaining quantity to breakfast and dinner hostels,” says St Clair-Laing. In line with its commitment to skills transfer, upliftment of local communities and creating “sustainability on the ground”, FSS’s contract was a joint venture with a local HDPSA company called Moon Cloud, comprising 90 previously disadvantaged women in the area. With most mining projects, FSS has provided assistance very early on in the project lifespan. FSS staff are professionally trained in the catering business

INFRASTRUCTURE PANEL DISCUSSION “We provided satellite communication, catering and cleaning services for about 350 people for the Moma Sands project in Mozambique when it was first established, and a similar service for Paladin Energy’s Langer Heinrich project in Namibia when it was first launched – for about 600 people,” St Clair-Laing reveals. FSS, together with a Namibian partner, also provide municipal services, such as landfill site management and town cleaning at Rosh Pinah in southern Namibia. “We also provide underground cleaning services for Exxaro Rosh Pinah Zinc Corporation.” Equality Reef Services – a division of Tsebo established to cater specifically to the mining community – has provided services to many major and minor bluechip mining clients, including Impala Platinum, Lonmin, Gold Fields Northam Platinum, De Beers, and the general coalmining industry. Equality Reef Services is also well qualified and experienced in entertainment, shops, hostel registration, residence

Feeding the masses is FSS’s core priority management, purchasing and estate management. In most cases, such companies form JVs with local small enterprises, and have well-established connections with local supply chains. “In essence, whether it is a long-term contract, a three-year project or a special event over a few weeks, FSS’s ‘can-do’ attitude always prevails. No challenge is too big, no problem insurmountable, and the team’s flexible approach to the job ensures delivery far beyond a catering service,” Hourquebie says.

portfolio of solutions that optimise the reliability and availability of your equipment and plant’s lifecycle

Aftermarket Service Solutions r MaintFOBODF TUSBtFHZ BOE JNQMFNFOUBUJPO r -JfF cyDMF TFSWJDF DPOUSBcUT r FJFME TFSvice r 4Bfety IFBMUI BOE FnviSPONFOU r EEVDBUJPO BOE USBJOJOH r WFBS BOE TQBSF QBSUT

www.metso.com - email: mineral.info@metso.com

ENVIRONMENTAL SUSTAINABILITY MINING WITH LOVE

Fairbreeze: the future of Hillendale Exxaro’s commitment to rehabilitation is as significant as its commitment to developing new mines, and growing its operational output and performance. Its KZN Mineral Sands business is evidence of this business model, writes Laura Cornish.

lthough Exxaro is best known for its strong position in the coal industry, it has a well-established mineral sands business division, which includes Namakwa Sands, situated along the west coast of South Africa, and KZN Sands in Richards Bay. KZN Sands is undergoing a major transitional phase as its current mining operation, Hillendale, winds down towards closure, and plans to commence development on its replacement project, Fairbreeze, begin. When rehabilitating a large-scale opencast mine, restoring the land in its entirety to its original state is non-negotiable.

Hillendale – the old mine The Hillendale mining operation was started in 2001, and could be considered one of the most unique mineral sands mines

Inside Mining 02/2012

in operation. Unlike conventional dredge mining, Hillendale uses a high-pressure hydraulic method, producing a slurry, which is then processed through a wet plant situated on site. This mining method is typically used in dump-reclamation projects and is ideally suited to Hillendale, due to its ultra-fine material content and clay-like nature. “At full capacity, the run-of-mine (ROM) throughput is between 7 and 9 mtpa. This quantity enables us to produce about 800 000 t of ilmenite, 60 000 t of zircon and 25 000 t of rutile from its central processing circuit (CPC), which includes a minerals separation plant and a two-furnace smelter,” explains KZN Sands GM, Neels Oosterhuis. Although full production at Hillendale will stop only at the end of the year, Exxaro’s rehabilitation programme for the operation

is already well under way. Major areas have been stripped, a specially blended soil mix foundation laid, and planting preparation begun for the final product – sugar cane. Once fully rehabilitated, the original land owner will have first right of refusal to reclaim the land and farm it. By November 2011, Exxaro had spent R425 million on rehabilitation activity, with an additional R104 million set aside.

Fairbreeze – the new mine The R2.45 billion Fairbreeze replacement mine will be situated south of Mtunzini and is anticipated to start operating in the second half of 2014. Its estimated lifespan is between 12 and 15 years. BELOW Hillendale rehabilitation process underway

ENVIRONMENTAL SUSTAINABILITY

The Hillendale slimes dam with rehabilitated land in the foreground This target date, however, remains dependent on regulatory approval for certain environmental processes, which must be secured before construction on site can commence. KZN Sands has prepared a Basic Assessment Report (BAR) under the National Environmental Management Act (NEMA). This includes an extensive public process involving a broad range of interested and affected parties from the

BELOW AND RIGHT Hillendale activity prior to rehab

THE WORLD’S LARGEST FREE WORKPLACE HIV TREATMENT PROGRAMME IT IS OUR WAY OF RESPONDING TO THE HIV/AIDS PANDEMIC. ALREADY, 94% OF OUR SOUTH AFRICAN EMPLOYEES HAVE PARTICIPATED IN VOLUNTARY COUNSELLING AND TESTING. THIS PROGRAMME IS ALSO BEING EXTENDED TO ALL THE SPOUSES AND DEPENDENTS OF OUR EMPLOYEES. FIND OUT MORE AT GETTHEFULLSTORY.CO.ZA AND VISIT OUR EXHIBITION STAND AT THE MINING INDABA, BETWEEN 7-9 FEBRUARY 2012.

Real Mining. Real People. Real Difference.

Inside Mining 02/2012

TIMOTHY LETSHOLO Siphumelele Mine

ENVIRONMENTAL SUSTAINABILITY surrounding communities, NGOs and relevant government departments. The Fairbreeze area has been subject to several environmental assessments since the mine’s inception in 1998, with 33 specialist studies undertaken around the site. As part of the Hillendale rehabilitation programme, the existing plant will be relocated to the Fairbreeze site. Two residue storage facilities will be constructed, a dam to serve the residue facilities, and a water pipeline will be established from Hillendale, from which Umhlatuze Water Board’s allocated water supply will be moved to Fairbreeze. “The new mine will eventually constitute five ore bodies, which will be mined in phases,” explains Jan Beukes, Fairbreeze client project manager. Phase 1 will see the high-grade C and C-extension ore bodies, at an equivalent rate to that at Hillendale. These ore bodies are situated closest to Mtunzini. “We have learnt a lot from our rehabilitation experiences at Hillendale, and plan to mine, back-fill and rehabilitate from mining commencement at Fairbreeze,” Trevor Arron, executive general manager for KZN Sands, points out. Fairbreeze Phase 2 will constitute ore bodies A,B and D, which are fairly low in grade. “To ensure we retain our annual product output, we will double the plant’s capacity to 17 mtpa. With a few minor equipment additions, the plant is capable of doubling its output capacity,” Beukes adds. Fairbreeze will ensure the continuation of operations at KZN Sands, and will therefore allow the preservation of a substantial number of jobs. The company currently employs 750 permanent staff and about 300 contractors.

Tronox transaction The proposed Tronox transaction announced in September 2011 will provide added security to KZN Sands, making it part of a global, integrated production process, with the titanium dioxide slag produced destined for the Tronox pigment plants overseas. Exxaro believes this international link strengthens the KZN Sands business by increasing its sustainability and reducing its exposure to variable market cycles. The development of Fairbreeze is currently being funded by Exxaro, and will not be affected by the transaction. The completion of the transaction is not dependent on the development of the Fairbreeze operation. Until 2006, Tronox was part of the KerrMcGee Corporation. The latter also owned oil, petrochemical and nuclear interests in the United States of America. When Tronox was spun off by Kerr-McGee, it incurred the environmental liabilities of the oil, petrochemical and other operations of

ABOVE The last mining activity, seen in background, at Hillendale will be completed by the end of 2012 its previous holding company, which has since been acquired by Anadarko. The liabilities included environmental remediation and litigation costs which were so onerous that Tronox struggled to survive. As a result, it filed voluntary petitions for re-organisation under Chapter 11 of the US Bankruptcy Code. In February 2011, Tronox announced that is has successfully emerged from its Chapter 11 proceedings. Having addressed the substantial Kerr-McGee legacy environmental and other spun-off liabilities through a comprehensive settlement, Tronox is now well positioned to compete in the titanium dioxide and speciality chemical industries. “Through Tronox, we hope to further our aspirations to introduce pigment beneficiation in South Africa, which will provide massive job opportunities,” Arron concludes.

COMMITTED TO CREATING AND SUSTAINING 25 000 JOBS BY 2015 UNEMPLOYMENT IS A CHALLENGE WE ARE DETERMINED TO HELP OVERCOME, BY CREATING AND SUSTAINING THESE JOBS IN THE SMALL AND MEDIUM ENTERPRISE MARKET. IT IS A PARTNERSHIP WITH GOVERNMENT, AND A PROMISE TO ALL SOUTH AFRICANS. FIND OUT MORE AT GETTHEFULLSTORY.CO.ZA AND VISIT OUR EXHIBITION STAND AT THE MINING INDABA, BETWEEN 7-9 FEBRUARY 2012.

Real Mining. Real People. Real Difference.

Inside Mining 02/2012

BRIAN MLABA Director of AEF Mining Services

ENVIRONMENTAL SUSTAINABILITY

Anglo American goes for green EMALAHLENI WATER-RECLAMATION PLANT ENDORSED

nglo American’s eMalahleni water-reclamation plant was the only mining initiative to be endorsed by the United Nations Framework Convention on Climate Change (UNFCCC) Momentum for Change Initiative at the COP 17 conference late last year. The UNFCCC’s Momentum for Change Initiative aims to promote a workable framework to combat climate change by raising the profile of successful adaptation and mitigation projects, and effective private-public partnerships, in developing countries. President Jacob Zuma, United Nations secretary-general Ban Ki-moon and Lord Nicholas Stern were among those present at the event. Peter Gunther, Anglo American head of sustainable development for the Other Mining and Industrial Business Unit, commented: “UNFCCC recognition is testimony to the plant’s considerable success. Since the eMalahleni water-reclamation

Inside Mining 02/2012

plant was commissioned in 2007, it has created far-reaching benefits for the environment, the local community and its feeder collieries, and has received widespread endorsement as a best-practice model. “The eMalahleni water-reclamation plant was designed to take into account the remaining 20 to 25-year life of contributing mines, and to cater for postclosure liabilities. Ultimately it will help address long-term climate-adaptation risks and promote a sustainable future for the region, providing better flexibility and self-sufficiency in terms of water usage,” Gunther said. The eMalahleni water-reclamation plant is a public-private partnership undertaken by Anglo American’s Thermal Coal business, BHP Billiton Energy Coal South Africa (Becsa) and the eMalahleni local municipality. Situated in the eMalahleni coalfields of Mpumalanga, the plant uses the latest water-purification technology

to desalinate 30 megalitres of water to potable quality per day, with plans to expand capacity to 50 megalitres per day by the end of 2013. This rising underground water is sourced from Thermal Coal’s Landau, Greenside and Kleinkopje collieries, as well as from Becsa’s disused South Witbank mine. The majority of this water is then pumped directly into the eMalahleni local municipality’s reservoirs, meeting 20% of the daily water requirements of the water-stressed region, which consists of 510 000 people; the region is one of the fastest-growing urban areas in the country. To date, the plant has treated 30 billion litres of water, and supplied 22 billion litres to the eMalahleni local municipality. The plant also supplies eight megalitres of potable water per day to Zibulo mine, Anglo American’s Inyosi Coal Project, Becsa’s Klipspruit mine and the Phola coal-washing plant, a joint venture between the two mining houses.

ENVIRONMENTAL SUSTAINABILITY

Godfrey Gomwe, Executive Director of Anglo American South Africa The plant operates at a 99% waterrecovery rate, and the ultimate goal is for it to be a zero-waste facility through 100% utilisation of its by-products. It

Department of Environmental Affairs Director General, Nosipho Ngcaba also prevents polluted mine water from decanting into the environment and the local river system, while alleviating serious operational and safety challenges.

ZIMELE LAUNCHES GREEN FUND

imele, Anglo American’s enterprise development arm, has launched its fifth fund, known as the Green Fund, to help make a difference to South Africa’s environmental sustainability and green economic growth. Anglo American has committed an investment amount of R100 million to the Green Fund, which aims to empower and encourage entrepreneurs to operate in a green economy. The fund will target investment opportunities that mitigate carbon, reduce energy and water consumption, and improve waste and emissions management. It will further focus on developing and funding small and medium enterprises (SMEs) that promote and develop environmentally sustainable projects. Subsequently, this will enable communities to both respond to key environmental challenges such as climate change and water security, and take advantage of opportunities in the green economy. The fund will also create another platform for talented entrepreneurs and SMEs. Zimele has already realised considerable success through its

four established funds: the Supply Chain Fund, the Anglo American Khula Mining Fund, the Communities Fund and the Olwazini Fund. Through these four entities, since 2008, Zimele has provided R530 million in funding, supported 1 001 companies and completed 1 355 transactions, with its underlying investments employing 18 783 people, and has achieved a collective annual turnover of R1.9 billion. Managing director of Zimele, Nick van Rensburg, says the Green Fund demonstrates Anglo American’s commitment to the environment. “Our aim is to operate in a safe, responsible and sustainable way by minimising our environmental impact and taking advantage of opportunities that deliver long-term benefits to our stakeholders. “The Green Fund is an essential part of this strategy, as it will facilitate new investments in projects which yield both environmental and economic benefits, and encourage a greener way of thinking among the South African public.”

A MAJOR TAX CONTRIBUTOR IN SOUTH AFRICA WITH A CONTRIBUTION OF R14.3 BILLION IN TAXES IN 2010, EACH OF US IS HELPING IMPROVE SOUTH AFRICA. IT IS A LASTING PARTNERSHIP WITH GOVERNMENT THAT SHOWS THE MORE WE MINE, THE MORE WE MAKE A DIFFERENCE. FIND OUT MORE AT GETTHEFULLSTORY.CO.ZA AND VISIT OUR EXHIBITION STAND AT THE MINING INDABA, BETWEEN 7-9 FEBRUARY 2012.

Real Mining. Real People. Real Difference.

CORNELIA HOLTZHAUSEN General Manager, Thabazimbi Mine

ENVIRONMENTAL SUSTAINABILITY ISLAND MINING

Engineering a sustainable environment Although environment and social sustainability are considered ‘soft’ mining issues, they can in many instances, determine the viability of a new or expansion project, says Max Clark, head of engineering project house, Hatch’s Environmental Services Group (ESG) in Africa.

The Solomon Islands are remote

atch’s ESG was established five years ago, and focuses on the three pillars of project sustainability, namely environment, social and economic viability. “These three aspects have the ‘power’ to change the principal dynamics of a project and in some instances, determine a project to be unviable all together,” Clark points out. The relocation of a community for example, or the logistics route from mine to port and the nature of the environment, a natural wetland perhaps, must all be accounted

Inside Mining 02/2012

for, managed and sustained to ensure a project is approved and can be developed. “Ideally, these issues should be dealt with before Environment Impact Assessment (EIA) stage,” Clark mentions. Regulatory issues across the world require all three aspects to be fully considered before a new or expansion project can proceed. Through the dedicated evaluation of these and related ancillary project components, Africa’s mining and associated infrastructure growth will flourish, Clark continues.

While there are numerous smaller independent companies specialising in these project elements, Clark believes there is a substantial benefit to mining houses making use of ESG’s services. “When combining our services team alongside the project development team, the client can be assured that their project has the best chance of proceeding smoothly and as quickly as possible,” he explains. The long-term benefits of this scenario are rapid infrastructure development, in Africa and other remote areas, which is essential for new mines to develop.

ENVIRONMENTAL SUSTAINABILITY Hatch’s ESG saw a need to develop better analytical methods of identifying sustainability opportunities on projects and comparing different project alternatives in terms of their sustainability, thereby developing a range of decision support tools in response to this need. In addition, ESG, working with collaborators, has developed tools to determine the value, in financial terms, of various ecosystem services. These services were grouped by the United Nations Millenium Assessment into four broad categories: • Supporting – such as nutrition cycling • Regulating – such as climate, water, erosion and water purification • Provisioning – such as food • Cultural – such as a community’s sense of place, spiritual practices, education and recreation. This system recognises the value that different kinds of services provide in an ecosystem with Hatch able to incorporate these into projects. Sustainability principals do not only apply to mines, but also to ports. The development of new ports and

This mining project has the potential to provide significant benefit to Solomon Island’s economy port expansions is substantial at present as global exports from South Africa for example, are being constrained due to logistics bottlenecks. The same pillars need to be managed accordingly for ports. Hatch South Africa has become Hatch’s global centre of excellence for ports, having developed a ‘green port approach’, aimed at ensuring they emerge as efficient operations while minimising ecological impacts and maximising economic impacts. Hatch ESG is currently involved in a number of port development projects in Africa.

Company is exploring for nickel on two of the islands. A significant component determining the possible project’s viability is the environmental and social aspects, which Hatch ESG Australia is currently investigating with substantial involvement from Clark. This is currently one of Hatch ESG’s most interesting projects due to its location and local culture. “Having completed some of the baseline studies, we are currently undertaking an ESIA on the nickel project area, for mining ore bodies on the two islands,” says Clark. Hatch and Sumitomo are already engaging with the island’s tribal chiefs to evaluate whether mining could impact on their cultural heritage sites, which contain sacred chief burials and artefacts, as well as determine how such potential impacts can be avoided or mitigated. SMM Solomon has established communication channels with the

ABOVE Solomon Islands’ typical forest landscape communities, which has assisted to introduce the ESIA team to the local people. Major port infrastructure also needs to be established, as well as infrastructure on the islands, to house the people who will be working at the mines and ports. “This mining project has the potential to provide significant benefit to Solomon Island’s economy.”

RIGHT A carving reflecting the historical practice of headhunting BELOW A typical local village on Solomon Islands

Solomon Islands – a prime example Situated to the east of Papua New Guinea, Solomon Islands is one of the most remote locations in the world. It consists of about 1 000 individual islands and has a population size of around 700 000 people. SMM Solomon, a subsidiary of Japan’s Sumitomo Metal Mining

Inside Mining 02/2012

PROJECT DELIVERY

SPECIAL FEATURE: CRUSHING

Modular mining comes alive A number of small to medium-scale complete and customised mineralprocessing plants have been commissioned in remote areas over the past year.

omplete plants arrive on site in modular kit form, ready for erection and production, ensuring that remote-site projects are up and running quickly. The plants are

manufactured in Africa for tough African conditions, and are now being implemented in equally challenging South American and European environments. RG scrubbing-series plants with impact crushing (IC) options are adequately catering for the bouquet of mineral options: fine alluvial matrix, schist, hard rock and mixed rubble. Dedicated IC plants are also catering for hard rock-only feeding. Options ranging from 3 tph, through 6, 20 and 80 t/hour, right up to massive-scale 250 tph (RG2500) are being implemented. Emphasis is placed on low-energy, earlyliberation recovery, along with minimal environmentalÂ impact. The APT staging warehouse, with RG and SG modular plants being pre-assembled and checked prior to dispatch

Primary recovery by gravity is the focal point. Working on an early delivery and minimal commissioning time, depending on the scale of the plant, miners are placing repeatÂ orders. The plants require water incorporation into the process system. This is the only restricting parameter, as energy, footprint and environmental constraints have been reduced to the minimum. With the broad feed-tonnage spectrum offered in the APT range from minerals-processing company Appropriate Process Technologies, mining operations from entry-level to large-scale are being undertaken in remote corners of the world. Coupled with the allimportant exploration aspect, the complete process plants are fast becoming a mining industry standard.

PROJECT DELIVERY

SPECIAL FEATURE: CRUSHING

Osborn showcases new line-up of world-class equipment Machines from US-based Astec Underground – Trencor, Roadtec, BTI and American Augers – are now being supplied and supported in South Africa by materialshandling specialist, Osborn Engineered Products.

sborn, which is also part of the Astec stable, has become the African agent for its American sister companies, and hosted an open day at its Elandsfontein premises late last year to showcase some of the additions to its equipment offering. Machines on display included horizontal directional drills, an auger borer and BTI (Breaker Technology Inc) hydraulic hammers. Osborn marketing manager, Neill du Plessis, elaborates: “Astec Underground provides

equipment to meet the underground construction needs of customers involved in construction, the pipeline industry and the installation of infrastructure. It offers Trencor high-performance rock trenchers and road miners, and Astec utility trenchers, horizontal directional drills and geothermal drills. These products are manufactured at the company’s facility in Loudon, Tennessee.”

Horizontal directional drills The mid-sized DD10 horizontal directional drill is a self-contained unit which

The 48/54-900 Auger Borer

“DON’T BURN ROCKS!” Better burn pure and dry coal. Our new movable sorting system PRO Secondary XRT de-shales all kinds of coal and maximizes yield without using any water.

Try the dry way.

Don’t waste time: www.commodas-ultrasort.com

PROJECT DELIVERY

ABOVE Osborn’s Peet Venter and Frank Van Der Hilst with the DD4045 Horizontal Directional Drill excels in hard-to-reach job sites, and boasts the most rotary torque in its class (18,982Nm). It has 45 t of maximum thrust/pullback power, and its features include a pinion drive with adjustable force limiter, a climate-controlled operator’s cabin, and drill-mounted, state-of-the-art pipe-loading baskets. The DD-65 MiniMax is aimed at contractors who want a manoeuvrable machine that can access the job site in a variety of conditions without sacrificing productivity,

SPECIAL FEATURE: CRUSHING

Du Plessis explains. “It provides 2,7 t of thrust/pullback force and is capable of up to 678Nm of rotary torque with a maximum rotary speed of 180rpm.” The DD2024 provides 9 t of thrust/ pullback force with the capability of up to 3254Nm of rotary torque. The maximum rotary speed can reach up to 20rpm. This drill is powered by an 85-horsepower Cummins turbocharged diesel engine, while the DD4045 is powered by a 148-horsepower Cummins turbocharged diesel engine. Like other drills from Astec Underground, it boasts the field-proven Quad rack-and-pinion carriage drive.

Piping American Augers’ auger boring machines are designed for the fast, efficient installation of wider-diameter pipes, from 450 mm to 3 500 mm. They eliminate the safety risks associated with traditional tunnelling methods such as pipe jacking, and are more efficient, using the quick tram mode that is unique to American Augers equipment.

Hydraulic hammers One of the machines in Osborn’s line-up

that has already made its mark in the local mining and quarrying industries is the BTI hydraulic hammer range. “The BTI breaker’s reliability and simplicity of design, coupled with strong backup service and support, has contributed to its worldwide success in the mining and quarrying industries,” Du Plessis says. The range comprises 21 models, from the 475 joules to 18 300 joules energy class, with most also available in box-style configurations. Another noteworthy feature is the machines’ power-to-weight ratio. “This offers significant benefits to customers, since larger, more powerful hammers can be mounted on smaller excavators or boom systems, resulting in reduced overall costs to the end user.” Standard features on all models include a nitrogen cushion chamber designed to absorb piston recoil and recycle the energy to increase the output energy on the next blow, dual retainer pins to ensure positive tool alignment and easy tool replacement, short tie rods that use protected threads to yield long life and high reliability, and a protected lubrication point.

PROJECT DELIVERY

SPECIAL FEATURE: CRUSHING

Crushing and screening across 25 countries It has taken Pilot Crushtec less than a decade to take an idea from the drawing board and turn it into a product line that has achieved sales in excess of R1.5 billion to customers in 25 countries.

he Jet Park-based crushing and screening specialist believes that the way forward is to continually provide the market with a range of competitively priced modular, mobile and semi-mobile crushing and screening machines to enable fast installation of turnkey plants, that is, machines that are fit-for-purpose, simple to operate, easy to install and yield a rapid return on investment. Today, more than 200 customers operate Pilot Modular plants in industries as diverse as quarrying, road-building, mining and minerals beneficiation. While Pilot Crushtec has expanded its Modular range from seven to in excess of 50 stock items, its basic marketing philosophy remains the same. Sales director, Graham Kleinhans, explains: “The Pilot Modular concept gives customers the freedom to install tailormade plants designed and built to meet their specific needs using ‘off-the-shelf’ standard modules of equipment. They can concentrate on the job at hand, free from the time constraints and costs surrounding traditional purpose-built machines.” By opting for Pilot Modular, the customer has a system where crushers, screens,

washing plants and conveyors can be added, rearranged or removed as required. While a Modular plant performs the same functions as a permanent operation, and can process material at a rate of up to 500 tph, it is easily transported and can be moved to the next site when the customer’s product requirements change. “When a Pilot Modular plant is specified for a project, it saves an immense amount of time. The whole product selection, quotation, delivery, installation and commissioning process can take as little as three weeks. Our customers who have invested in this time-saving concept are recovering their costs and seeing a return on investment long before those who have opted

to buy purpose-built machines and plants have finalised quotations,” Kleinhans says. More than 50% of Pilot Modular plant customers have placed repeat orders. “There is an increasing demand for higher-tonnage plants capable of more specialised applications. Our research and development engineers are constantly evolving and improving systems. We use state-of-the-art software to develop simple but high performance products that can be used anywhere in the world.” BELOW A Pilot Modular-TRIO MJ3042 jaw crusher feeds into a Pilot Modular plant which is being used in a coalmining application by Clidder Minerals in Zimbabwe

MILLING & CLASSIFICATION IS OUR BUSINESS E V E N 1 0 0 Y E A R S O F B E I N G A N I N N O V AT O R A N D

FROM INVENTING BETTER SOLUTIONS

EVERY DAY

Are you looking for cost-effective size-reduction and classification of ores, industrial minerals and concentrates? Contact Loesche SA to find out the advantages of the Loesche Grinding System for your beneficiation process.

Tel: +27 (0)11 482 2933 | Fax: +27 (0)11 482 2940 | Email: umeyer@loeschesa.co.za | Web: www.loesche.com

Loesche six roller Mill

MARKET LEADER DOES NOT KEEP US

PROJECT DELIVERY

SPECIAL FEATURE: CRUSHING

Demand impacts how ore is transported The Materials Handling division of Sandvik Mining and Construction RSA is currently working on the second phase of the Impala Platinum/Zimplats Ngezi expansion project in Zimbabwe.

he drive to increase the production of platinum group metals to satisfy world demand has made a big impact on how ore is transported from its source, either underground or from surface workings, to the concentrator,” says Anton van Niekerk, business division manager of Sandvik Materials Handling. “As new mines are opened or existing mines are expanded to boost production, there is an increasing trend towards transporting material over greater distances. With fuel costs spiralling, mine operators are now looking for more economical ways of doing this.” LEFT An aerial view of the secondary and tertiary crushing and screening operation at Ngezi

Our answer to your crushing and screening needs

Atlas Copco’s surface mining offering has been expanded with the addition of a range of powercrushers and screeners. Optimal performance, straightforward operation and maintenance, as well as reliability form the cornerstones of our powercrusher and screener product range. This means that you as the customer are able to achieve maximum productivity. Speak to your Atlas Copco rep today about how our crushing and screening offer can assist you in your business. www.atlascopco.co.za

The Materials Handling division of Sandvik Mining and Construction RSA is currently working on the second phase of the Impala Platinum/Zimplats Ngezi expansion project in Zimbabwe. This involves the construction of a fourth portal, ore storage facilities and a 6 km overland conveyor, which will also collect ore from one of the existing portals and feed all the material to the existing concentrator. The Ngezi Phase II expansion will see the development of a 2 mtpa underground mine, a 2 mtpa concentrator module, a 35 000 million-litre dam, a 9 km overland ore conveyor, and employee housing.

Sandvik Materials Handling has the capability to design, manufacture and install virtually any kind of conveyor system, from high-speed overland systems to open-cast mine conveyors, as a complete solution. The company has created a track record of successful involvement in major platinum mining projects, both in South Africa and Zimbabwe, where ore is transported over long distances either to a mill or processing plant. “The focus these days is on in-pit crushing and conveying (IPCC), largely as a result of rising fuel prices and environmental responsibilities, which have put pressure on platinum miners,” Van Niekerk says. “In-pit crushing of overburden and friable ore involves the central positioning of a semi-mobile crusher in the pit of an open-cast mine, linked to conveyors that transport the crushed ore out of the pit. “This shortens the travelling distance for ore trucks, as well as the cycle times between the excavation and crusher operations, requiring fewer trucks without decreasing the mining rate. The same applies when conveyors, instead of trucks, are used to remove ore from underground operations. It allows greater savings in terms of fuel, carbon-dioxide emissions and time. “The greatest advantage of IPCC is a significant reduction in the amount of truck haulage required. These haulage costs can account for as much as 50% of mining capital and operating costs in the bigger open-pit mines. Mining houses have, therefore, started to look at feasible alternatives to truckintensive mining to reduce their maintenance and operating costs, not to mention their carbondioxide footprint. “Obviously, the introduction of IPCC depends very much on the shape and size of the pit, and the type of ore being mined, but in many applications, in terms of the longterm benefits, IPCC generally makes good sense.” LEFT An aerial view of the portal crushing and road load-out station at Ngezi

CETERUM CENSEO

First of the Big Dogs feeding in the Horn? BY WILLEM SMUTS

Chalice Gold

Mines recently indicated that it has signed a non-binding Letter of Intent with an unnamed entity, setting out a proposal for terms on the potential sale of Chalice’s interest in the Zara Gold project. This is hardly a surprise, and chances are excellent that by the time this is in press, we may actually know the name of the Big Dog. Right now Eritrea seems awash with low-hanging fruit ready for the picking by the majors; besides Zara there is Nevsun Resources’ Bisha Mine and Sunridge Gold sitting on the makings of an entire mining camp of their own, with the Emba Derho poli-metals project as the current crown jewel.

Diamonds still a girl’s best friend It appears that analysts across the globe are in agreement: diamond prices are poised to rise for the next four years, outpacing gold as increased spending on luxury goods in China, India and the Middle East put pressure on supplies of the girl’s best friend. The two nations and the Middle East will account for 40% of global diamond demand by 2015, compared with about 8% in 2005, said Anglo American, which boosted its stake in De Beers, the world’s largest diamond miner, to 85% last November. According to some analysts, global demand for diamonds will likely outstrip supply by 7 million carats in 2016, compared with a shortage of 1 million carats last year.

Inside Mining 02/2012

The commissioning of new mines should be largely offset by depletion of maturing mines, with the result that we will be spinning our wheels and

that it intends to bring the Zambian Mining Act up to date with the latest developments in the global industry. Mines and Natural Resources deputy

The future belongs to those who prepare for it

The right noises…

Ralph Waldo Emersonr

advancing backwards unless we start making new large discoveries – the likes of an Orapa and Jwaneng are what is called for, rather than the bitty mines coming on stream lately. Now is the time to be a diamond junior on good acreage with the right address. What makes it even better is the fact that there are less than a handful of juniors actually exploring, and most of those would give their front teeth for a better address… most but not all…

It is simple, really Many mining countries are hoping to make 2012 a big year, and Zambia is no exception. Output is returning to levels last seen in the 1970s, when copper generated 90% of Zambia’s foreign-currency earnings, after falling to 250 000 t a year in the late 1990s. The southern African country, which nationalised mines in the 1960s before seeing the light, is expecting to see spending north of $6 billion this year by the major players, which nowadays include the likes of Barrick and Vale. On a bit of a nervous note, the government has announced

Johannesburg, while we wait for the South African government to figure out where they are going, or not going with nationalisation – and we will wait until the end of the year for that decision, so don’t hold your breath.

minister, Isaac Banda said government wants to repeal the Act for it to include, among others, the exploration of gas, oil and enhancing the Gold Trade Act. Meanwhile, investors are still going all points north after their shopping in

Banda talks about “best practices” and “improved security of tenure”, and that can only be good news. This can’t come soon enough, because, mark my words Botswana is lining up to become a serious player in the base metal game in southern Africa! Willem Smuts

INDEX TO ADVERTISERS Abeco Tanks 52 Anglo American 7, 75, 77,78 AOC 15 Appropriate Process Technology 82 Atlas Copco 86 Barloworld Equipment 2 Basil Read Matomo 42 Bell Equipment 6 Bigen Africa Services 63 Boksan Projects IBC Commodas Ultrasort 83 Consulmet 38-40 De Beers 13 DRA Mining 32 Enprotec 58 EXXARO 76 Fedics Site Services 33 Jozi Power 67 Loesche SA 85 Louwill Engineering 25

Marley Pipe Systems 61 Metallicon Processing 35 Metso 73 Multotec Group 84 Peterstow Aquapower 65 Polysius OFC Rema Tiptop South Africa OBC RSV ENCO Consulting 19 Sandvik 11 Sarens SA 23 Senet Engineering 27 SM Enviro 53-55 TPS.P Architects 69 TWP Projects 21 Veolia Water 49 Verder Pumps SA 57 Veyance Technologies SA 87 Watson Marlow IFC Weir Minerals 51 Zest 45

tĞ ĂƌĞ ƉƌŽƵĚ ƚŽ ďĞ ĂƐƐŽĐŝĂƚĞĚ ǁŝƚŚ ƚŚĞ ĞŶŐŝŶĞĞƌŝŶŐ ĂŶĚ ĨĂďƌŝĐĂƚŝŽŶ ŽĨ Ă ϲ͘Ϭϲŵ K͘ ͘ KƉĞŶ &ĂĐĞ dƵŶŶĞůůŝŶŐ ^ŚŝĞůĚ͕ ƚŽ ďĞ ƵƐĞĚ ŽŶ Ă ĚĞĐůŝŶĞ ƚƵŶŶĞů Ăƚ ƚŚĞ 'Ğŵ ŝĂŵŽŶĚ DŝŶĞ ŝŶ 'ŽƉĞ͕ ŽƚƐǁĂŶĂ͘ dĞů͗ нϮϳ ;ϬϭϭͿ ϯϭϲ ϮϭϳϮ &Ăǆ͗ нϮϳ ;ϬϭϭͿ ϯϭϲ ϭϲϰϱ ŵĂŝů͗ ďŽŬƐĂŶƉƌŽũĞĐƚƐΛǇĞďŽ͘ĐŽ͘ǌĂ tĞď ĚĚƌĞƐƐ͗ ǁǁǁ͘ďŽŬƐĂŶ͘ĐŽ͘ǌĂ