Executives discuss mining in Africa

CEO TALK

Executives discuss mining in Africa

Cobus Loots is the CEO of Pan African Resources

An extraordinary amount of work goes into operating a successful mine. Dineo Phoshoko speaks to executives from five mining companies with operations across Africa to discuss what makes working on the continent unique, what the challenges are, and the impact of Covid-19, among others.

Africa’s geological potential has made the continent an attractive location for the development of mines.

The continent is home to a variety of minerals in high demand across the world.

Pan African Resources

Pan African Resources is a mid-tier Africafocused gold producer with a production capacity in excess of 170 000 oz of gold per annum. The company owns and operates a portfolio of high-quality, low-cost operations and projects located in South Africa. CEO Cobus Loots speaks.

In your view, what makes mining in Africa different compared to the rest of the world?

Cobus Loots Mining in South Africa is better positioned than in many other parts of the continent, given the availability of electricity, infrastructure, and mining support industries. However, our mines are more labour-intensive and less suited to mechanised mining when compared with other countries. This has a bearing on productivity and costs of production.

What would you say is the most challenging thing about operating in Africa?

Currently, all of Pan African Resources’ operations are located in South Africa, namely in the Barberton and

CEO TALK

Evander areas, both in Mpumalanga. These areas are historical mining districts and have well-developed infrastructure (roads, electricity, fuel supply, rail) as well as the availability of skilled and unskilled labour. Mining presents a number of challenges, including keeping our people safe in what are sometimes difficult conditions, and dealing with all of our stakeholders.

How do you deal with these challenges?

Mining is ultimately about people, having the right people, and ensuring all of our people share our purpose and vision. In terms of safety, we have a hands-on approach. It is critical that individuals take responsibility for their own safety, with the company providing all of the necessary training, equipment, and policies/procedures.

When dealing with stakeholders and communities, it is important to be honest and sincere, and to resolve issues in a transparent and proactive manner. We are proud of the fact that Pan African’s mining operations are able to make a meaningful and positive difference in the lives of all of our stakeholders.

In terms of your mining operations, what would you say Pan African is doing well and what could you improve on?

The restrictions and conditions required to operate in terms of the Covid-19 national lockdown regulations will have some effect on production for the year. However, our management team has been particularly successful in repositioning and optimising our operations. At the Evander operations, we have curtailed our high-cost and logistically challenging deep underground operations to focus on pillar mining close to the shaft infrastructure.

What would you say is the biggest lesson Pan African has learnt throughout the years?

Significant opportunities exist when resources are brought to account in a considered manner, especially in areas that were host to some of the world’s major ore deposits and prime areas thought to be mined out – such as the Witwatersrand Basin and the Barberton Greenstone Belt.

Operating in South Africa requires compliance with the law and adherence to strict health and safety standards. Also, applying new techniques, innovative thinking and world-class project execution can produce excellent results. The DMRE has been proactive in engaging with the SA Minerals Council – the industry body that represents the majority of South African mining companies, including Pan African. Together, we have formulated standard operating procedures (SOPs) required to prevent the spread of the Covid-19 at mining operations.

What measures has Pan African put in place to curb the spread of Covid-19 at its operations?

Prior to the announcement of the lockdown regulations, we developed SOPs at all our operations, implementing best practices as provided by the SA Minerals Council and the DMRE, and in line with National Institute for Communicable Diseases guidelines.

The actual implementation of the practices includes necessary information campaigns at all operations (posters, video screens, daily safety talks), social distancing, the provision of sanitisers and disinfectants, regular temperature monitoring at entrances to operations, social distancing and isolation, regular disinfecting of workplaces and transport, as well as having the required medical personnel and facilities in place. These practices continue to be enhanced as new information in fighting the pandemic becomes available.

Operating in South Africa requires compliance with the law and adherence to strict health and safety standards

How do you see the future for Pan African Resources over the next few years?

We will first focus on the pipeline of organic growth opportunities available within our existing mining licence areas and bring these to account.

We are finalising an independent review of the feasibility study at our Egoli Project at Evander and are considering the available funding options to fast-track its development. Egoli is an underground mine where the bulk of the infrastructure is already in place (such as the shaft and plant) and will have the capacity to produce about 90 000 oz per year over a period of 10 years. At Barberton, the Royal Sheba project has gold resources of approximately 650 000 oz that can also be extracted from existing infrastructure. FOLLOW THE LINK

Read the full story: miningnews.co.za/ 2020/07/28/executivesdiscuss-mining-in-africa