Inside Mining May 2012 by 3S Media

www.miningne.ws

Highly commended 2011 PICA Cover of the Year - B2B Publishing

The knowledge you need

ining

media

from the industry experts

Hot seat

Snowden Technologies’ GM Nic Pollock beds down his strategy to mature the business

ThyssenKrupp Materials Handling DIAMONDS

A sparkling sensation

PANEL DISCUSSION

ICT – optimising critical information pathways

PYROMETALLURGY

Medupi’s massive stockyard

The old, and the new

ISSN 1999-8872 • R35.00 (incl. VAT) • Vol. 5 • No. 5• May 2012

Lots of power in a compact format. The K 970 Chain can make 390 mm cuts from one side. It can make openings as small as 11 cm x 11 cm, so it is perfect for irregularly shaped openings. The powerto-weight ratio is first rate and features SmartCarb™, a built-in automatic filter compensation and a highly efficient vibration dampening system. The K 970 Chain is also equipped with an X-TORQ® engine, which reduces emissions up to 75 % and lowers fuel consumption by 20 % and DuraStarter™, a dust-sealed starter that boosts reliability and product life. Air Purge and a decompression valve make it very easy to start.

HUSQVARNA K 970 CHAIN 94 cc - 4.8 kW - Bar 350 mm - cutting depth 390 mm, weight excl. fuel and cutting equipment 9.4 kg

HUSQVARNA CONSTRUCTION PRODUCTS

CONTENTS

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

ining

May 2012

FROM THE INDUSTRY EXPERTS

Highly commended 2011 PICA Cover of the Year - B2B Publishing

www.miningne.ws

MEDIA

THE KNOWLEDGE YOU NEED

ining

ON THE COVER

FROM THE INDUSTRY EXPERTS

ThyssenKrupp Materials Handling

HOT SEAT

Snowden Technologies’ GM Nic Pollock beds down his strategy to mature the business

delivers Medupi's massive new stockyard P6

ThyssenKrupp Materials Handling DIAMONDS A sparkling sensation

PANEL DISCUSSION ICT – optimising critical information pathways

PYROMETALLURGY

MEDUPI’S MASSIVE STOCKYARD

The old, and the new ISSN 1999-8872 • R35.00 (incl. VAT) • Vol. 5 • No. 5• May 2012

EDITOR’S COMMENT

Mining – it’s out of this world

MINING NEWS

The top mining stories headlining this month

HOT SEAT

10 Snowden Technologies beds down strategy to mature the business

HOT TOPIC

12 Wescoal creates a bigger and brighter future PRECIOUS STONES: DIAMONDS

14 Rockwell Diamonds rocks its turnaround strategy 18 DiamondCorp – laced with potential 20 Petra Diamonds capitalises on world-class kimberlites 26 De Beers Consolidated Mines straightens its business

MATERIALS HANDLING

29 Grootegeluk expansion – moving massive amounts of coal

34 Melco – conveying efficient solutions ICT PANEL DISCUSSION

37 Mining’s information technology providers ELECTRICAL AND INSTRUMENTATION

46 Wade Walker’s electric new strategy 48 ENI’s aspirations to increase market share PYROMETALLURGY

50 Verref – rich in refractories 53 Energy efficiency – it’s all in the ‘tweak’

TRANSPORT AND LOGISTICS

56 A mega manganese transport contract 58 Botswana carries the load PROJECT DELIVERY

60 The latest on equipment components and essential services

CETERUM CENSEO

64 SA mining needs state intervention Inside Mining 05/2012

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

MINING

It’s out of this world South Africa’s diamond sector is overflowing with expansion and optimisation projects, driven primarily by escalating prices, but more importantly by the fact that there are almost no more economical pipes left in the world to mine, raising the value of diamonds as they become increasingly rare.

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)11 465 5452 Cell: +27 (0)83 567 0073 stacey.glad@lantic.net ___________________________________

MEDIA

No. 4 5 Avenue, Rivonia 2191 th

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.

It is common knowledge

that decades of exploration and sampling have revealed that while there may be thousands upon thousands of kimberlite pipes across the globe, only a ‘handful’ of them are viable to mine. Today, well over two centuries since the first diamonds were discovered and mined, many of those pipes have been depleted of their carats. All of South Africa’s known diamond-rich pipes are in operation and ramping up to deliver the same quantities as they once did in their prime. De Beers Consolidated Mines (DBCM) is set to invest billions in converting its opencast Venetia mine into an underground operation, for example, enabling it to deliver the same number of carats as it has already produced since it started production. Nevertheless, one fact remains dominant in every diamond producer and, hopefully, consumers’ minds – when will the carats run out? Are there any new pipes left to discover, particularly in South Africa? According to DBCM CEO, Phillip Barton, the answer is yes! Although he declines to say where, he confirms that they are looking. And if anyone can find a new kimberlite, it’s De Beers! Considering geographical constraints are no longer constraints, the world and its oceans have already become new exploratory zones. Diamonds are being mined along the Namibian coast successfully, begging the question – what exactly can we extract from our sea beds? How much is really out there? We have only tapped into a tiny percentage of the possibilities. But why stop with our oceans when we have an entire solar system within reach? An American company called Planetary Resources, constituted largely with space exploration scientists from NASA (National Aeronautics and Space Administration), has announced its intention to mine nearby orbiting asteroids for natural resources, specifically PGMs, iron ore, nickel and water. I am still struggling to deal with the reality of this possibility – but this is no joke, the world is evolving and technology really is taking us to the stars. According to the company’s co-chairmen, Eric Anderson, who pioneered commercial spaceflight, and

Peter Diamandis, an international pioneer in the commercial space arena, there are almost 9 000 asteroids to explore and that is just the starting point. They say there is more platinum in one asteroid than all the platinum that has been mined in our history. If they are confident enough to say that, then their aspiration to mine asteroids is more than just a dream. Considering the company has gathered together a host of ‘new generation’ risk-tolerant investors, such as CEO of Google, Larry Page, and James Cameron; the company is financially ready to bring the solar system’s resources to our doorsteps. And they are not talking about the distant future, but intend to make this a reality in theirs, and our lifetimes. This is ground-breaking news – and will change the world forever. Asteroids aside, our cover story this month – the massive coal stockyard for the new Medupi power station – is not only fascinating to read about, but is even more fascinating to see, which I had the enormous pleasure of doing. And I have the safety jacket and hard hat to prove it, as you can see. A huge thanks to ThyssenKrupp Materials Handling for hosting me on site and allowing me to appreciate the scale of the stockyard, and the enormous machines they are supplying on site to ensure it runs like clockwork. Watch this space for updates of the project over the rest of the year. Laura Cornish

To our avid readers, be sure to sign up and get the

latest updates and inside scoop from the mining industry. Check out what we are talking about on our Facebook page or follow me on Twitter and have your say. @mining_news www.facebook.com/pages/Mining-News

Inside Mining 05/2012

Mining news www.miningne.ws

Top mining stories headlining this month AUSTRALIA

Platsearch announces JV with Thomson Resources Thomson Resources is an active explorer

compiled by Ameerah Griffin

| SOUTH AFRICA | IDC launches a major new PGM venture Source www.miningne.ws

execute our unique growth opportunities. Our beneficiation partnership with the IDC has the potential to transform the PGM smelting industry and to provide third-party juniors access to cost-efficient concentrate processing,” says CEO of Pallinghurst, Arne Frandsen.

| SIERRA LEONE |

The Industrial Development Corporation (IDC) of South Africa, together with Pallinghurst, announced a major investment in the platinum mining and beneficiation industry that will see the creation of a significant platinum group metals company in the North West province of South Africa. NewCo has the potential to create up to 9 000 direct and permanent jobs, and produce up to 1.1 Moz/pa of PGMS in the next five years. The DC has made a R3.24 billion investment for a 16.2% interest in the consolidated entity, which provides the foundation for a large, shallow and low-cost mining complex, with long life – in excess of 30 years. The venture has a promising strong growth profile. NewCo’s resource base is approximately 70 Moz of 4 PGM and the majority of these ounces are shallower than 600 m. “This consolidation has been almost five years in the making and represents an exciting development for all stakeholders. The IDC’s equity investment will allow NewCo to remain debt-free with a strong balance sheet, thereby providing financial security to

Inside Mining 04/2012

Stellar Diamonds announces high diamond grades for Lion-5 Kimberlite Source: www.miningne.ws

Stellar Diamonds has provided final bulk sampling diamond grades and diamond values from its Lion-5 kimberlite dyke at its 87 km² Kono diamond licence in eastern Sierra Leone. “The final results from the first phase of evaluation of the Lion-5 kimberlite prove that the body is of both high-grade and highquality diamond. Based on these results, the company is planning a resource definition drilling campaign over Lion-5, as well as the nearby Pol-K kimberlite, to establish a significant maiden resource for the Kono project,” says chief executive, Karl Smithson. Over $US19 million (R148.4 million) has been invested to date on the Kono licences by Stellar and its former joint venture partners. This has resulted in the systematic exploration of the dyke swarm, including a high-resolution geophysical survey and a number of

Source: www.miningne.ws

Australia-based resource company PlatSearch has entered into two joint venture agreements with Australian exploration company Thomson Resources. The agreements cover five exploration tenements, wholly-owned by PlatSearch, over the Ghostrider and Achilles projects – located within the Cobar region of central-west New South Wales. Thomson can earn up to 80% interest in each with exploration expenditure of US$1 million (R7.8 million) over five years on each project. PlatSearch will maintain a 20% ‘free-carried’ interest up to Definitive Mine Feasibility stage. Both projects are considered high quality and will add value to the exploration portfolio of Thomson, a company that PlatSearch helped conceive and bring to IPO. PlatSearch currently holds a 25.6% interest in Thomson. Since listing on the Australian Securities Exchange in December 2010, Thomson has conducted significant exploration within the Thomson Fold Belt, which includes the projected northern extension of the Cobar Basin, one of Australia’s important mining districts. Thomson Resources is the largest ground holder in the region and much of Thomson’s recent work has focused on exploring rock units believed to be equivalent to those found within the Cobar Basin. Thomson has built up considerable expertise in exploring for Cobar-style deposits and will bring this capability to the joint venture.

test shafts being sunk to up to 85 m depth for bulk sampling. Smithson believes that the Kono project can substantially add to the 3.1 million carat resource base recently established from the Tongo (0.66 million carats) in Sierra Leone and Droujba (2.5 million carats) in Guinea, kimberlite projects, both of which will also be expanded as Stellar continues to grow its respective resources.

| NORTH AMERICA | Mining chief resigns as part of deal with Rio Tinto Source: www.nytimes.com Robert Friedland, one of Canada’s most prominent mining developers, resigned as chief executive

of Ivanhoe Mines, as part of a $US 1.8 billion (R14.1 billion) equity financing agreement Rio Tinto former with Rio Tinto, CEO, Robert the company’s Friedland major shareholder. Along with Friedland, six other directors and four executives at the company also resigned. They will all be replaced by Rio Tinto appointees. The agreement signals the apparent end to a long-running battle between Friedland and Rio Tinto, which brought its stake in Ivanhoe up to 51% in January.

For explosives, think BME.

Cover story: materials handling

FEEDING MEDUPI

A stockyard of substantial proportions May signifies a milestone event for materials handling experts ThyssenKrupp Materials Handling as its largest contract awarded to date – the Medupi power station coal stockyard – moves into operation, writes Laura Cornish. A mighty BIG contract In November 2009, Eskom awarded ThyssenKrupp Materials Handling (TKMH), a division of ThyssenKrupp PDNA Engineering, with the turnkey contract to design, manufacture, construct and commission the coal stockyard, which serves as the ‘coal pit stop’ between the colliery and the developing Medupi power station. “The contract also includes all of the conveyors in the stockyard, as well as two elevated conveyors linking the north and south silos, seven transfer houses, two drum reclaimers and two stackers,” says

Inside Mining 05/2012

Jim Hoy, project manager. The second drum reclaimer, which is due to be completed in May 2013, will provide redundancy in the system. Despite Eskom announcing that the first unit of its new Lephalale-based power station is behind target, TKMH retained its Eskom-specified deadline: to be ready to receive its first coal in May. Activity on site a month prior to the deadline was a hive of activity – revealing the stockyard development to be far advanced and the final stages of completing both the first stacker and reclaimer well under way.

“Two of the transfer houses are almost complete and the remaining five are far advanced as well. The kilometres of conveyors, including an elevated portion feeding the silos, all show significant progress,” assistant marketing manager, Matthias Göing pointed out during a site visit in April. In addition to meeting its deadline target, Göing adds that the massive bi-directional drum reclaimer is the biggest drum reclaimer in the world, measuring 43.4 m in width. The diameter of the drum shell alone is 4.7 m, with a 7.2 m cutting circle, and

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.

Cover story: materials handling

weighs just under 200 t. The mass of the entire machine is about 500 t. “It alone is capable of recovering enough coal to feed all six boilers at full operational capacity – delivering 4 788 MW of power,” he says. “Our drum reclaimers are selected for their high blending efficiency and reliability. They are stable and long-lasting in operation and have a low total cost of ownership,” Göing continues. Both stacker and reclaimer are automated and are designed to operate remotely from a central control room. “Until the coal is ready to feed the first boiler (boiler 6), our stacker, drum reclaimer and conveyors will stand ready,” Hoy points out. The stockyard itself will comprise four 80 000 t working stockpiles and an additional two seasonal stockpiles, ensuring that the power station will have a continuous supply of coal in the event of an interruption in supply from the mine.

TKMH retained its Eskom-specified deadline: to be ready to receive its first coal in May

BELOW Side view of the stacker with by-pass tripper and the drum reclaimer RIGHT Belt conveyor leading to transfer house

Inside Mining 05/2012

Cover story: materials handling

Close-up view of the drum reclaimer

Eskom – a valuable client

One conveyor belt will feed a maximum of 4 000 tph of coal from the Grootegeluk mine to the stockyard, while one of two conveyors will feed 3 400 tph from the stockyard to the two 1 000 t silos, which in turn will feed the boiler lines.

Unparalleled values Although part of a global organisation, TKMH is ‘truly South African’. All design work, manufacture and part sourcing is executed locally. “Our mandate was to achieve 92% local skills and supply content for our Medupi contract,

“The massive bi-directional drum reclaimer is the biggest drum reclaimer in the world, measuring 43.4 m in width.” Assistant marketing manager, Matthias Göing

Matthias Göing, standing on the stacker on site

Inside Mining 05/2012

Eskom has for years been one of TKMH’s most valuable and longest-standing clients. There are few Eskom plants in South Africa that are operating without some piece of TKMH equipment. One of the company’s most recent projects included the supply of an ash handling facility, including shiftable conveyor systems and two 1 200 tph spreaders to handle all ash for Eskom’s Majuba power station in Mpumalanga. Looking forward, TKMH will take its materials handling skills to Eskom’s second new power station, Kusile, whose contract includes three drum reclaimers and two stackers.

which we exceeded. We believe in developing and uplifting local skills and retaining them in the country,” says Göing. The company embraced local initiatives established to alleviate unemployment and promote small enterprises, such as AsgiSA (Accelerated and Shared Growth Initiative for South Africa). Says Hoy: “We found numerous BEE companies, including black women-owned businesses and small/medium enterprises in Gauteng and the surrounding areas of Lephalale, that were properly qualified and we would like to use again in the future. The challenge was securing those who were not already extremely busy and flooded with work. There were also many who were not qualified and Eskom-compliant. Despite such challenges, we were successful in sourcing and securing the right companies. This is in line with our philosophy to inject and recirculate money into the country and the economy, and help develop a long-term profitable South Africa.”

uppe marketing A05651/AM

Komatsu… a heritage of success

At Komatsu our vision has resulted in a proud heritage of technological success, and we are continuously evolving to meet the needs of our customers. Our unique and advanced equipment provides our customers in South Africa and world-wide w i t h innovation a nd ex ceptional v alue. We u n d e rst a n d t h e c h a l l e n g e s o u r c u s tomers encounter in their business; that is why our construction, surface mining, utility and process equipment is designed to meet the highest productivity, safety and environmental standards.

Komatsu – for the best in: • • •

Earthmoving and surface mining equipment Utility equipment Process equipment

Komatsu – Unique and unrivalled.

Komatsu Southern Africa (Pty) Ltd, cnr Diesel and Isando Roads, Isando. Tel: 011 923 1000 | Fax: 011 923 1111 Customer Care Line: 0860 566 2878

www.komatsu.co.za

Hot seat: ICT

Maturity brings new growth Mining information systems solutions provider Snowden Technologies, a division of global mining consultant Snowden, is undergoing significant transformation as newly appointed group GM Nic Pollock beds down his strategy to mature the business, writes Laura Cornish.

lthough only joining the company in February this year, mining ICT veteran Nic Pollock is already well under way with a new business model and strategy aimed at growing the technology division further and delivering it to the market as a mature and commercial software solutions provider. His position sees him join Snowden’s senior management team and although based in Perth, Australia, he will carry out his role in South Africa and across the globe. “Snowden Technologies has reached the 10-year mark and is ready to adapt its

Inside Mining 05/2012

premium brand market reputation to a more mainstream market,” Pollock explains. When Snowden CEO Craig Morley founded the division, his vision was to build technologies to strengthen the company’s consulting force. Today, it is recongised for its ability to develop unique and customised software solution tools, often exclusively for blue-chip mining clients. This however has seen some of its more leading innovative products become industry standard practice. “Snowden Technologies has turned 10 years old and the appointment of Pollock

coincides with a need for us to mature this important line of our business. Pollock’s experience, particularly with his achievements at previous companies Gemcom and Mincom, gives us the direction we need for future growth,” says Morley. Says Pollock: “As the mining technology market begins to mature more rapidly, demand will dictate a more simplified and off-the-shelf product suite landscape. My intention is to develop our product suite along this avenue – making our tools commercially available. Thanks to Snowden Technologies’ foundations, it is uniquely

Hot seat: ICT

positioned to walk on both sides of the street. We have a large and experienced team of software development professionals and over 160 senior mining professionals providing valuable guidance to mining clients all over the world. We walk the talk in our understanding of the full value chain and can identify where the gaps lie in the software offerings out there.” As a mature software technology house, standards will be put in place to sell products across a wider market. In addition to maintaining its suite of current software solutions, the company will continue to fulfill its role as a ‘technology incubator’, and it will focus on creating new products to fulfil an identified gap in existing solutions that can be roled out on larger, broader platforms.

The intention is to stop releasing customer-specific versions of the product and standardise it as an off-the-shelf package beginning with Version 7, due out later this year. Snowden is also evaluating the best distribution channels for other popular software tools including Evaluator and Supervisor. Evaluator is a strategic optimisation tool, also originally designed for the consulting business. Today there are more than 50 projects using it. “We are looking at our

with 300 sites around the world actively using the software suite across most commodity types, including bauxite, chrome, diamonds, iron ore, manganese, nickel, silver, uranium, coal, copper, gold, lead, mineral

“As the mining technology market begins to mature more rapidly, demand will dictate a more simplified and off-the-shelf product suite landscape.” Nic Pollock

The case in point Snowden’s Reconciler software solution, originally designed as a consulting product, has become one of the company’s most successful commercial systems. It captures and reconciles information from resource/reserve estimates, grade control, truck dispatch, survey pick-up and plant production systems. “We have customised this particular solution for many mining clients, including BHP Billiton, Rio Tinto and Kumba Iron Ore,” says Pollock.

options for taking this product to market – either ourselves, or through a vendour.” The Supervisor suite of applications provides an efficient, robust and easy-touse toolset for practical geological data analysis. Initially developed for use by Snowden’s consultants, the application has been adopted by clients throughout the world and is now regarded as a benchmark by the mining and resources industry. It has an extensive track record of providing business value to the resources industry,

sands, platinum, tantalum, zinc and more. “We are open to ensuring we secure the best distribution channels for this product,” Pollock adds.

Pollock’s background Pollock joins Snowden with 20 years of experience in the enterprise software and services markets globally, commencing in 1992 with Natwest Bank in London and then Oracle in Sydney. Since leaving Oracle to set up Viewlocity in Australia, Pollock has gained significant experience in running Asia-Pacific operations. Since moving back to Perth in 2004, almost half of his career has been spent servicing the mining and resources sector for software companies Gemcom and Mincom.

Inside Mining 05/2012

Hot topic: coal

WESCOAL FORGETS THE PAST

And creates a bigger, brighter future Despite undergoing almost a year of legal battles and court proceedings with its opencast contractor Sutha Civils (and BSM Mining), Wescoal Mining has emerged victorious and has wasted no time in re-implementing a significant growth strategy aimed at realising an annual coal production of between 2 and 4 Mtpa in the next three years, CEO Andre Boje tells Laura Cornish.

t is common practise in the mining industry to change or disengage mining contractors; this could happen for for many reasons, including lack of performance. Unfortunately, when Wescoal Mining took this route with Sutha Civils, the situation turned nasty. Sutha Civils attempt to liquidate Wescoal Mining, the mining arm of coal trading and processing company, Wescoal Holdings, based on unsubstantiated claims that the company was selling inferior quality coal to Eskom. It turned out to be completely false.

Inside Mining 05/2012

“Although damaging to our reputation, we have put this period behind us, and are returning our attention back to our priority: growing our mining business,” says Boje. “We have now issued a resource statement for a variety of properties we own and will either mine, sell or relinquish them back to the state. We don’t want to be a prospector; we want to be recognised as a serious player in the junior coal mining space. We remain active and driven by our focus to supply Eskom and elevate overall margins within the company to a higher level.”

ABOVE AND OPPOSITE Aerial views of Khanyisa colliery

The company acquired a significant 51% stake in a greenfields prospect – Pegasus – late last year. It remains under cautionary, however, regarding an asset swap, as well as the potential sale of the remaining 49% stake in Pegasus, which is owned through Wescoal chairperson, Robinson Ramaite. Boje believes the coal market in particular is back to a pre-recession boom. The company wants to benefit from current prices and so is keen to move its new asset into production as quickly as possible.

Hot topic: coal Looking back over 2011, its single operating mine, Khanyisa returned to full production in April, despite production difficulties. For 2012, its Vlakvarkfontein asset is expected to move into production after the mining right is granted, which at the time of writing was expected at the end of March. “Although Khanyisa only has another year of operational life, it should deliver on its annual target of 1 Mtpa. Our 18-month to two-year lifespan Vlakvarkfontein project will be accelerated into production without hesitation following receipt of our mining licence,” Boje states.

Pegasus: the crown jewel Late last year, Wescoal Holdings announced it had acquired 51% of the Pegasus project, which includes 919 ha of the Geluk 276 farm and a further 250 ha of surface

The intention is to move Pegasus into production at the end of 2013, after which it will remain operational for between eight and 10 years rights in relation to portion 2 of the farm. Previously owned by BHP Billiton Energy Coal South Africa, Pegasus is an undeveloped metallurgical and export quality thermal coal deposit with a 15 Mt measured resource. It is situated 10 km from eMalahleni and is contiguous to Exxaro’s Inyanda colliery. The deposit is shallow, with an average stripping ratio of 1.46, and comprises Witbank coal field No. 2 Upper coal seam, No. 2 Lower coal seam and No. 1 coal seam. The ultra-low stripping ratio means the operation will be a low-cost opencast mining operation. “The acquisition is in line with Wescoal’s stated goals of securing high-quality coal resources that can be mined by the opencast method to increase production and sustainability,” Boje points out. The intention is to move Pegasus into production at the end of 2013, after which it will remain operational for between eight and 10 years. The Pegasus product is a low phosphorus coal, which will be sold into the metallurgical industry. Coal not meeting the required metallurgical specifications or

Mining resource statement Portion

Size

Actions/future plans

Portion 16 of Vlakvarkfontein 213 IR

238 000 t of Eskomgrade coal

• Mining right application submitted to DMR (December 2010) • Additional prospecting work being carried out

Portion 12 of Vlarkvarkfontein 1.9 Mtpa of high-grade • Mining right application submitted 213 IR thermal coal to DMR (December 2010) • Additional prospecting work being carried out Portions 1, 2, 4, 7,8, 9, 10, 13, 14, 15, 16, 17, 40 & 41 of Vlaklaagte 330 JS excluding areas 2 & 3

29.5 m inferred resource

• Mining right application submitted to DMR (June 2011) • Additional prospecting work being carried out

Silverbank 611 IR excluding portions 1,10, 12 & 14 district of Sanderton

3 925 ha 24.5 Mtpa of Eskom and thermal coal

• Mining right application submitted to DMR (August 2011) • Additional prospecting work being carried out

Verblyden 387 IS excluding portions 18 & 35

2 266 ha • Mining right application submitted 37 Mtpa of Eskom and to DMR (August 2011) thermal coal

Portions 8, 9 & 10 of Mooiplaats165 IR

Insufficient for additional comment

• Application for renewal of Prospecting Rights with DMR

Portions 1, 3,4, 6, 14, 23, 30- 2 946 ha • Application for renewal of 36, 40 and 62 of Elandspruit 5.1 Mtpa of high-grade Prospecting Rights with DMR 291 JS district Middleburg thermal coal Following preliminary prospecting it was determined that the following two resources are not economically viable and the Prospecting Rights will be allowed to lapse Portions 4, 5,23, 23, 28, 42, 48 & 69-74 of Keerom 374 JS district of Middleburg

6 828 ha Insufficient for additional comment

Portion 10 of the farm Bankfontein216 IR

5.1 Mtpa of high-grade thermal coal

matching export prices will be sold into the export market. “There was intense competition from local and international mining companies to secure the Pegasus project as the reserve is recognised by the industry as one of the last great coal resources available in the Witbank and Middelburg coal fields,” says Boje.

An independent valuation of Pegasus is being conducted by Mineral Corporation Consultancy. “Once a partner is on-board, we will move Pegasus forward rapidly. It will also require its own plant,” Boje notes. With Pegasus in production, Wescoal will reach its 2 Mtpa mark by the end of 2014 and with an additional asset, it will achieve the 4 Mtpa mark by the end of 2015.

Inside Mining 05/2012

Precious stones – diamonds

DIAMOND DELIVERANCE

Rockwell rocks its turnaround strategy Mid-tier TSX/JSE listed diamond mining company Rockwell Diamonds has been undergoing a dramatic business turnaround since James Campbell took the position of CEO in June last year, writes Laura Cornish.

n the space of a year, Campbell has implemented strategic milestones aimed at sustaining and growing the company’s production profile and has already started meeting some of them. Smaller initiatives include placing all of the Northern Cape assets on CONTOPS (continuous operation) – with full implementation by the 2013 fiscal year – and ‘sweating the assets’ through optimal use of existing equipment. All resources and reserve estimates are 43-101 compliant. Not only has the CEO appointed a new leadership team with the credentials to ‘unlock and deliver Rockwell’s potential’, but has further resolved the company’s BEE ‘difficulties’, acquiring a new diamond property in the process. He has also introduced a new technological innovation to its traditional alluvial process aimed at extracting large carats. “When I joined Rockwell, the company was struggling to extract the maximum value from its operations. Each of our 74% owned assets required attention. We now have dedicated teams in place for each mine and they are already delivering on returning our mines to their full potential,” says Campbell. In addition to the company’s three operating mines – Saxendrift, Klipdam and Tirisano – it has a pipeline of high-potential projects that it will bring on stream to help grow its production profile. Its target is to grow its annual carat production from 20 000 in 2012 (fiscal) to about 90 000 in 2016. And Rockwell’s timing could not be better – diamond demand for carats is forecast to grow at 6% per annum to 2020, outpacing annual supply growth of 2.8%.

THE OPERATING MINES Saxendrift – Middle Orange River (south bank): 0.5 carats/m³ Acquired in 2008, the Saxendrift operation’s value lies in the size and quality of its stones. The bulk of its diamonds are more than 3 ct/stone and, in the last two years, 83 diamonds larger than 20 ct/stone were recovered.

105 carat Saxendrift stone forms one of pair of exceptional round brilliant cut DIF diamonds, measuring some 35 carats each

Inside Mining 05/2012

In-field screen at Klipdam

Strategic beneficiation partnerships Rockwell holds a 20% stake in internationally recognised diamond sales and marketing facility, Flawless Diamond Trading House. The company uses it as a platform to market, sell and leverage Rockwell carat production. The company further has a JV agreement with Steinmetz Diamond Group (started in 2007) for rough diamond with a weight of more than 2.8 carats. The stones are sold to Steinmetz at market price and Rockwell benefits from a 50% share in the profits on the ultimate sale of the polished stones. The company has realised revenue of $US8.5 million (R68.2 million) in fiscal years 2009 to 2011 from 6 182 carats beneficiated through this channel. While the mine’s remaining lifespan is short, Rockwell is investing substantial capital into the mine and is looking to increase its life through a number of initiatives. “We have commissioned a fit-for-purpose in-field screen and have implemented a bulk X-Ray (Bivitec) sorting machine that effectively concentrates and recovers diamonds in a single step,” explains Campbell. The 200 tph machine commenced with tailings material testing in April and based on its success, will start processing run-of-mine (ROM) material afterwards. The machine will likely increase the frequency of recovering large diamonds (from 200 to 650 carats). The ultimate target is to lift Saxendrift’s monthly production volumes to 150 000 m³/month (from 130 000 m³) by 2013, which equates its remaining lifespan to 3.7 years. While adding inferred resources (6 million m3) could increase its lifespan, the company’s recent deal restructure with BEE partner African Vanguard Resources saw its acquire the Jasper property, which is contiguous to Saxendrift and holds massive potential to increase the overall project lifespan, with limited investment. Preliminary estimates indicate that the past producing Jasper mine, which is a brownfield opportunity, has remaining diamond-bearing deposits that are easily accessible to the infrastructure at Saxendrift and could extend its life considerably.

INTRINSICALLY SAFE SOLUTIONS

Tirisano – North West province: 1.7 carats/m³

Produced by: Coralynne & Associates +27 11 422 1949

The 10 806 ha property was acquired in September 2011, and although it had been placed on care and maintenance in 2008, its potential is significant with grades five times higher than Rockwell’s Northern Cape properties. The company has invested substantial capital into the project, including the construction of a new process plant capable of processing the

Precious stones – diamonds

ABOVE Bivitec X-Ray machine, and below, preparation for the X-Ray machine prior to installation MIDDLE AND RIGHT Rockwell Diamonds commissioned at new plant at Tirisano

mine’s high clay content material. It is also hosted in a unique geological environment comprising sinkholes. “Today we are on track to have Tirisano running at full production – 90 000 m³/ month by June,” Campbell states. Plans are also under way to install a wet front end to mitigate the effect of rain and its effects on the ore before the next rainy season. This, however, is only the beginning of the mine’s projected future. SRK Consulting and Tacmin have developed a preliminary mine plan with a processing rate of 180 000 m³/month for 17 years. An ongoing geotechnical study and pit optimisation programme is under way to increase Tirisano’s life further, extending the pits from a 90 m depth to 100 m. The ore body also remains open at depth.

Klipdam – Barkly West district, Northern Cape: 0.9 carats/m³ The Klipdam property, together with the Holpan property (on care and maintenance) covers an area of 4 202 ha. Rockwell is currently evaluating initiatives to consolidate the two properties to process the remaining deposit pockets profitably. The intention is to retain its processing capacity at 90 000 m³/ month and determine the

Inside Mining 05/2012

best initiatives to extend its remaining two year lifespan, such as increasing its throughput expansion.

EXPLORATION AND DEVELOPMENT PROPERTIES Wouterspan and Niewejaarskraal – Northern Cape Both projects, expected to be operational around 2014, hold the key to expanding Rockwell’s longer-term growth strategy. A preliminary assessment of the Wouterspan project was commissioned by Rockwell in late 2010. A high-volume/lowcost production plant with a capacity of 340 000 m³/month is planned. The higher capacity of the new proposed Wouterspan

plant is expected to result in a significant reduction in cash operating costs, once the facility is operating at full capacity. Other anticipated benefits include more stable grades and a higher frequency of exceptional stones. The capital expenditure for the new plant at current prices is estimated to be $US17.4 million (R139.7 million), which includes the plant and all associated infrastructure. It will take one year to construct and the project will commence once funding has been secured. A new plant is also proposed for Niewejaarskraal, intended to lift its monthly capacity from 40 000 to 340 000 m³. It will likely contribute to production from 2015.

Diamond demand for carats is forecast to grow at 6% per annum to 2020, outpacing annual supply growth of 2.8% Yellow carats extracted from Saxendrift

Passion Through Our People

WORLD CLASS QUALITY AND RELIABILITY

Coralynne & Associates +27 (011) 422 1949

Founded in 1981, Shaw Controls is one of Africa's foremost suppliers within the electrical trade. With a focused approach on quality production processes, the company is a world class manufacturer of motor control centres, distribution boards, control desks, PLC instrumentation control enclosures, portable container substations and various other electrical panels. Products manufactured, range from voltages of 24 Volts up to 1000 Volts and current ratings up to 4000 Amps.

+27 11 680 4534

www.zest.co.za

Precious stones – diamonds

A PIPE OF PROSPERITY

LACEd with potential It has been a long time coming, but JSE/AIM-listed junior diamond company DiamondCorp recently emerged with its optimised development plan for its Free State-based Lace kimberlite mine, aimed at advancing its status to ‘producer’ and ultimately delivering 550 000 carats per annum, MD Paul Loudon tells Laura Cornish. Lace – it will be a producing mine again It has been five years since DiamondCorp acquired its 74% stake in Lace and, ever since, the market has been waiting to see if life could be injected into a mine that last delivered production carats in 1931. And while the company has endured more than its fair share of difficulties, a global recession included, Loudon’s confidence in the project has been unwavering. “There is no doubt that this project has great potential and even offers very rare intense lilac and

The 1.2 Mtpa Lace processing plant

Inside Mining 05/2012

BELOW An aerial view of Lace including the process plant and pit prior to dewatering

Precious stones – diamonds

pink stones. We will do our best to ensure Lace emerges as a successful producing mine, which will grow on the back of strengthening diamond prices.” The company is presently retreating old tailings material at its 200 tph dense media separation plant and spent last year evaluating a large bulk sample from the main Lace pipe. Having engaged SRK Consulting to complete an independent engineers report on its development plan for the 2.5 ha Lace pipe late last year, the report was released in March 2012 and concluded the project to be economically viable. “The report outlines our plans for the mine, which supports a 1.2 Mtpa project with a production rate expected to ultimately exceed 550 000 carats a year,” says Loudon. While the underground decline currently extends to about 250 m below surface (which DiamondCorp extended from 100 m between 2010 and May 2011), the strategy is to develop a low-cost continuous trough block cave ‘production’ level at a depth of 470 m (47 Level).

“Our development strategy requires a twin decline system, which means extending the current decline from 250 m and building a second decline to surface as well,” Loudon explains. This will take about 12 months to complete. One of the declines will be used to convey material to surface. Loudon explains that even though it will take 43 months to complete the entire development plan for the mine, the tunnelled material, a doming (second) level and the 600 000 t of ore removed to establish the trough (third level) will be processed for carats, which will inject cash into the project – this is expected after 25 months. An initial anti-socket level will initially be developed first, through kimberlite material to complete the footprint delineation of the kimberlite pipe at the 47 Level. This will allow the final cave design to be completed. Diamonds will be recovered from this development as well, but will not be sold initially as they will be used for stone evaluation purposes. According to the SRK report: “DiamondCorp expects total revenue of $US55 million (R433 million) from stones recovered during construction.” “While the overall development plan requires R384 million, we only need to raise about R285 million thanks to the cash we will generate as the project progresses. We are hoping to secure the required finance by the end of June,” Loudon adds. On surface, very little work is required except for the installation of an additional recrushing circuit on the plant to handle the unusually hard rock material. “What makes Lace so exciting is that is grade increases at depth. While our average TOP LEFT Diamonds from the 250 m level bulk test including a 1 carat lilac pink LEFT Larger stones from the 250 m level bulk test

LEFT Decline developed undertaken by DiamondCorp's own underground mining fleet RIGHT Decline develpment waste is trucked to surface

grade at 470 m below surface is 40 cpht, it will increase significantly below this level, to between 50 and 60 cpht,” Loudon mentions. Through its underground mining contractor, Lesedi, the mine has been drilled to a depth of 855 m. At full production, DiamondCorp will employ 219 people, who will be fully responsible for all mining activity as well as plant operation.

Outside of Lace Even though DiamondCorp has relinquished its Botswana-based project (Jwaneng South), after it revealed disappointing results last year, the company remains active in seeking new projects. “We are looking at other kimberlite projects in Southern Africa and have a preference for advanced exploration projects,” Loudon explains. “It is my intention that our development action at Lace will see our reputation emerge as the potential kimberlite developer of choice – with the ability to move and advance projects quickly.” 47 Level Block Cave CapEx: R384 million ($US50 million) Revenue during development: R406 million ($US53 million) Max drawdown: R285 million ($US37 million) Cash flow from kimberlite: 18 months Full production: 43 months Cash flow positive: 25 months Life of mine: +25 years Mining rate: 1.2 Mtpa (4 000 tpd by conveyor) Peak production: 550 000 carats per annum Revenues: up to $US80 million per annum Operating margin: >50% IRR: 64.7%

Inside Mining 05/2012

Precious stones – diamonds

FROM RAGS TO RICHES

Capitalising on world-class kimberlites The saying, ‘one man’s rags are another man’s riches’ couldn’t be more true when looking at the turnaround and growth pipeline of LSE-premium listed diamond miner Petra Diamonds’ project portfolio. Not only has it brought its mines back to life, but it is investing significantly in growing its production volumes – a strategy perfectly aligned with the world’s growing demand for carats, CEO Johan Dippenaar tells Laura Cornish.

etra Diamonds (Petra) has interest in five operating ‘classic’ kimberlite pipe mines (Cullinan, Finsch, Williamson, Koffiefontein and Kimberley Underground) as well as three carat-producing fissure mines (Helam, Sedibeng and Star). “Our intention is to grow annual carat production from within our current portfolio from just over 2 million carats this year (expected) to above 5 million carats by 2019,” says Dippenaar. Since acquiring its first major mine in 2007, Koffiefontein, Petra has reinjected life into its assets and revitalised and extended its legacies to last well into the future. Such a substantial growth target is admirable considering its core assets (acquired from De Beers) were either recovered from care and maintenance or faced the possibility of closure. “Our goals are more than reachable,” says Dippenaar. “The programme across all our mines is to deepen them and establish new block caves, thereby providing access to fresh, undiluted ore in higher grade areas. The result will be higher revenue per tonne and increased margins.” Connected to this is the company’s focus on operational efficiencies and optimising plant processing, with a focus on ‘value’ and not ‘volume’ production. Dippenaar explains that the company’s significant growth strategy is aligned with the “compelling fundamentals of the diamond market”, where demand is shifting from West to East. While the United States currently consumes the majority of diamonds (about

LEFT Long hole drilling rig in action underground at Cullinan

Inside Mining 05/2012

Precious stones – diamonds RIGHT Johan Dippenaar holding the 507 carat Cullinan Heritage diamond

38%), the rise of the Chinese and Indian middle class is set to increase and shift the demand dynamics over the next 10 or 20 years. “We classify ourselves as a luxury goods product, not a commodity. A single 500 carat stone for example is equivalent to hundreds of kilograms of gold. The same consumers who are spending more on items such as make-up, shoes and handbags are looking to diamonds as a sign of their growing wealth status.”

The organic growth and efficiency improvement programmes The C-Cut expansion programme at Cullinan includes the development of a new block cave on the western side of the ore body, which will increase production to 2 million carats per year by 2019, supplemented by an additional 0.4 million carats per year of tailings. This project sees the shaft bottom extending from 580 to 930 m, with a new production level between 810 and 850 m. The grade is expected to increase substantially, from circa 35 cpht to circa 50 cpht once the new cave is established – a realistic target based on resource estimates. There are also higher incidences of larger white and blue diamonds in the western areas of the pipe, which bodes well for future recoveries of ‘large, high-value diamonds’.

Cullinan’s 16-year initial mine plan will only exploit 21% of the C-Cut resource to 1 073 m, leaving extensive resources for future development as the ore body remains open ended at depth. Petra has also put in place a bright future for the Finsch mine, acquired from De Beers. The company is now working to complete the mining of Block 4 by 2014, while simultaneously opening up a new Block 5, which will maintain production

levels at approximately 3.2 Mtpa, ramping up to around 3.5 Mtpa by FY 2018 once the Block 5 cave is fully operational. It will further extract about 3.5 Mtpa from the mine’s pre-1979 historic tailings dams until 2015. Thereafter tailings from later mining operations remain available for treatment until 2020. New production levels are also being established at Koffiefontein, at the 680 m Level, together with a new sub-level cave

RIGHT Koffiefontein kimberlites pipe and plant BELOW Transportation of ore by locomotion at Kimberley Underground BOTTOM Kimberley pipes

Inside Mining 05/2012

Precious stones – diamonds LEFT Underground at Finsch – an employee observing a drawpoint in the block cave on 630m level

An emerging market of new consumers • Urbanisation trend: by 2025 there will be 221 Chinese cities with >1 million population (versus 107 cities in Europe, Japan and United State combined). • The number of middle income consumers is expected to increase by >800 million by 2030 (half of these consumers will be in China and India). • Diamond consumption per capita in emerging regions is currently far below mature markets.

that will be established between the 560 and 600 m levels, which will enable the mine to deliver over 100 000 carats every year by 2017. Koffiefontein’s current mine plan is 14 years, although the ore body also remains open at depth.

Petra’s plan at Kimberley Underground is aimed at increasing production from 57 000 carats a year to 120 000 carats by 2013. The investigation of additional resources at depth is also under way, which could potentially extend the current mine plan of 11 years. Production from the fissures will be ramped up from 87 000 carats per annum to 140 000 carats by 2015. Williamson mine in Tanzania is Petra’s only opencast mine. The company has just finished a substantial rebuild of the existing 3 Mtpa plant and was expected to be fully operational in Q4 of Petra’s current financial year. The longer-term expansion plan for the mine is close to 600 000 carats a year, which requires the construction of a new plant. Timing on this is still to be confirmed, until the company receives confirmation of secure electricity supply.

Precious stones – diamonds

CULLINAN’S NEW TAILINGS RECLAMATION PLANT

Screening for diamonds Elandsfontein-based bulk materials handling and minerals processing specialist, Osborn, has secured an order for seven screens from leading independent diamond mining group, Petra Diamonds.

sborn product manager, Emile Oosthuyzen, explains that the screens will be employed at Petra Diamonds’ Cullinan operation, where a new tailings reclamation plant is being set up. This order comprises six Osborn IFE Screens – two 12" x 24" double deck screens and four 12" x 24" single decks – as well as one 3" x 16" Osborn Obex single deck screen. “Osborn netted this order based on its competitive pricing, as well as its long-established reputation as a supplier of robust, high-quality products,” Oosthuyzen says. He adds that Petra Diamonds currently has a wide range of Osborn machines in operation at Cullinan, including vibrating grizzly feeders, screens, scrubbers and crushers. Outlining the benefits of Osborn’s IFE Screens, he notes that they are designed for heavy-duty to extra-heavy-duty screening, and feature a gearbox drive that is driven via a cardan shaft from an electric motor, to generate more G-force for the weight of the machine. Over the years, these tough, hard-wearing screens have made their mark at operations like Kleinkopje Colliery, Iscor Sishen, Zimbabwe’s Wankie Colliery, Empresa Minera Copper Mine in Chile and Namakwa Sands,

reflecting the diverse applications of this range of screens in products ranging from coal and copper to iron ore, heavy mineral sands and diamonds. IFE Screens use finite element analysis to provide optimum performance and structural strength. The Exciter Driven Unit is designed to handle high amplitude vibrations without decreasing life expectancy. The screen consists of a sturdy soundproof housing made of cast metal. This contains two shafts that are synchronised with gears and are mounted in heavy-duty roller bearings designed for use with vibrating equipment. Lubrication of the bearings and gears is effected by a combination of oil bath and oil mist. Eccentric weights are attached to both ends of the shaft. While stationary, adding or removing steel or lead weights can change the unbalanced mass. This consequently alters the strength of the unbalanced exciter force and the oscillation amplitude of the vibratory equipment. Oversize bearings provide long life expectancy, low maintenance and low noise emission. The unit also offers easy access to the drive unit, which can be removed by undoing just four bolts.

The 165 Mt tailings deposit at Cullinan

Inside Mining 05/2012

ABOVE Screens for Petra Diamonds

“IFE Exciter Driven Vibrating Screens are available in a range of sizes to meet customers’ specific requirements. Complementing the large, heavy-duty IFE Screens that will be employed at Cullinan as primary screens is an Osborn Obex Screen that will be utilised in the final recovery stage. Oosthuyzen elaborates: “Driven by out of balance electric motors, the Obex screen is designed for medium- to heavy-duty applications, and its size and design features make it an ideal final recovery screen. It is much longer than it is wide, achieving maximum screening efficiency when working with the lower tonnages in the final recovery stage, when the raw ore has been processed down to concentrate.” Osborn Obex Screens are locally designed and built to meet the demands of Southern African mining and quarrying operating conditions. The extensive range has been tested and proven in ongoing programmes of intensive field research, through years of use in mines and industry throughout Southern Africa. Two vibrating motors rotate in opposite directions, synchronise and impart a vibrating force in a longitudinal direction. This lifts the material and carries it forward on each rotation, providing a constant feed rate. The amplitude can be varied by adjusting the outof-balance weights on the vibrating motors to the required stroke.

Precious stones – diamonds

DE BEERS CONSOLIDATED MINES

Tidy house, neat business The South African arm of diamond major De Beers, De Beers Consolidated Mines, is ‘getting its house in order’ as it focuses on strategies and initiatives to extend the lifespan of its remaining local assets and grow its resource base further, CEO Phillip Barton tells Laura Cornish.

he result of De Beers Consolidated Mines’ (DBCM’s) strategy implementation to only operate mines that meet its global criteria is a much smaller company, but one that remains heavily invested in its three mines – which still produce almost 70% of South Africa’s diamonds. Taking this into account, the company has no intentions of exiting the country.

Pics courtesy of De Beers

Venetia Mine

Inside Mining 05/2012

Between 2007 and 2011, it sold its capital consuming late-life mines – Koffiefontein, Cullinan, Kimberley Underground and Finsch operations – to Petra Diamonds-led empowerment consortia to release capital for more sustainable investment in other operations, says Barton. De Beers is also currently in the process of selling its Namaqualand Mines (with 10 million carats still in reserve) to

an empowered subsidiary of Trans Hex for R225 million. Appointed as CEO of DBCM in September 2010, Barton has brought the company through the tail-end of the economic recession and has devoted a considerable portion of his time to revising the company’s business model. “I have introduced a strategy aimed at securing the future of DBCM in South Africa. I

Precious stones – diamonds

developed a concept symbolically represented by a ‘house’ to illustrate how we are going to build a robust business and thereby secure our future in the country. The strategy serves several purposes; it has reassured government of our intention to remain a major diamond miner in the country. It further promises to provide security to our employees and looks to ensure we mine in a safe and environmentally responsible manner. Naturally, the model also aims to optimise our assets and achieve overall resource growth,” Barton outlines. The strategy is also aligned with that of De Beers, as well as with the diamond business strategy of soonto-be majority shareholder, Anglo American. DBCM currently operates two mines – Voorspoed and Venetia – and is also reprocessing tailings from Kimberley Mines operations over the last century at its increasingly efficient Kimberley-based processing plant.

2011 production statistics (thousands): Mines Tonnes Venetia Voorspoed Kimberley Finsch (sold 2011) TOTAL

treated 5.189 2.434 4.834 3.068 15.525

Carats recovered 3.147 0.580 0.778 0.938 5.443

The ‘house’ strategy focuses on four key pillars which in combination will drive the business forward. They are: • People – the implementation of retention mechanisms to ensure DBCM retains its personnel and its skills. • Continuous business improvement – achieving rapid results by making improvements daily in all aspects of the business. • Disciplined execution – planning well to execute effectively. • Asset optimisation – ensuring that all key equipment and plant on site is running optimally to deliver required and targeted production rates. Mine plans have been implemented with challenging targets on waste stripping so as to be prepared for the rise in diamond demand and to improve kimberlite extraction and operational performance over the life of the mines. Indications in early 2012 show that the corrective technical actions taken in mining and ore treatment bring the desired production results. About 45 Mt of waste stripping has been targeted for 2012 between Voorspoed and Venetia, together with 6 Mtpa of Kimberley tailings material. “By correcting our waste stripping ratios, we will successfully ramp up our carat output for this year, expected to be between 4 and 4.5 million carats, to between 6 and 6.5 million carats in 2013.”

Optimisation plans in motion Venetia - Limpopo DBCM’s Venetia operation is the ‘star attraction’ in its portfolio. The company completed a two year feasibility study in February 2012 to convert the open-pit operation to an underground mine. The feasibility study for

the proposed R18 billion investment to convert Venetia will be submitted to the DBCM Board for consideration in May and the De Beers Group Board towards the end of the year. The remaining opencast operations will run to 2021 and the conversion to underground mining, which will take about eight years, is expected to extend the life of mine by 21 years to 2042. “We will likely deliver more than 100 million carats from the underground mine, which will equate to the number of carats it has produced as an open-pit operation since 1992,” Barton reveals. Even though the project will only be granted approval towards the end of the

Voorspoed

Inside Mining 05/2012

Precious stones – diamonds resource are a significant contributor to its overall production volumes. “While the lifespan of the resource only runs until 2018, we are looking at ways to extend the life of mine, and lowering our costs by finding less expensive transport methods of moving the tailings material to the processing plant. We are looking at the viability of adding another tailings resource to the overall project, which will add another 12 years onto the current lifespan,” explains Barton.

Exploration

Voorspoed – Free State province

Kimberley Tailings Operations: Combined treatment plant – inside the DMS (Dense Media separation) plant at the CTP

year, DBCM is prepared having already signed binding contracts with EPCM contractor, TWP Projects, and Murray & Roberts for the development of the shaft. Both companies were extensively involved during feasibility stages. The contracts are only non-binding should the project not be granted approval.

While the current mine plan – to Cut 3 – will carry Voorspoed until 2018 as an opencast operation, DBCM is evaluating the potential of Cut 4 or an economical, safe and efficient method of mining underground. “I believe we can add an another six to eight years onto the life of Voorspoed if we successfully find the best method of taking a small portion of this mine underground,” Barton notes.

Kimberley DBCM is producing diamonds in Kimberley, and the carats it is extracting from its tailings

DBCM is investing on the back of a robust business in its people, time and money in ‘resource growth’ and Barton believes South Africa remains a prospective country for new diamond projects. “We have stepped up our exploration programme in target areas where the turnaround time of our exploration colleagues is fast in evaluating and decision making. We need to move with the speed necessary to find the elusive next diamond mine for South Africa. Until recently, we were only looking for diamonds in our exploration areas off the Atlantic coastline, but now we are in a joint venture with AngloGold Ashanti to search for gold, diamonds and other minerals,” Barton explains. Barton adds that this new project is still at an exploration phase and may only be economical if gold and diamonds are extracted and processed simultaneously. “Our strategy leads to an efficient company; a tidy house and a neat business we hope will last for a very long time.”

FOR PROJECT BASED ELECTRONIC DOCUMENT MANAGEMENT AND CONTROL SYSTEMS Vendor, Technical and Commercial Documentation Î Document Inception Î Version Control Î Electronic Tracking Î Physical, Electronic Storage ÎPurging Leaders in Business Intelligence allows for full control and transparency.

Tel: +27 11 394 0036 | sales@allscan.co.za | info@allscan.co.za | www.allscan.co.za

Materials handling

GROOTEGELUK MEDUPI EXPANSION PROJECT

Moving massive amounts of coal

South Africa’s largest coal operation, Grootegeluk, has undergone a massive expansion that will enable it to supply coal to Eskom’s new Lephalale-based Medupi power station. Despite the enormity of this project, it has taken owner Exxaro less than two years to complete. The plant may supply the first coal in May, though the power station’s first boiler is not ready to burn coal, writes Laura Cornish. D-day The Medupi coal supply and offtake agreement became unconditional and binding on Exxaro and Eskom in June 2010. In that agreement, Eskom’s mandate specified that Exxaro be ready to supply the first coal this month. The expansion of Grootegeluk – referred to as the Grootegeluk Medupi Expansion Project (GMEP) – will see it supply 14.6 Mtpa of coal (at nameplate capacity) to the new Medupi power station for 40 years. “The R9.5 billion project entails mining considerably larger volumes of coal from the open pit, as well as the construction of

two new beneficiation plants whose purpose will be to treat coal exclusively for Medupi,” explains Ernst Venter, business growth executive GM. The addition of two beneficiation plants (Grootegeluk 7 and 8 (GG7 and GG8)), including a complex screening facility, increases the number of plants on site to eight, effectively making it the largest beneficiation complex in the world, with a 14 000 tph capacity. Bearing this in mind, the entire complex will be automated with one central control room, making it easy to operate and monitor. Despite the enormity of the project, Exxaro

ABOVE The expansion of Grootegeluk will make it one of the biggest collieries in Africa

was able to meet its deadline mandate, supplying coal to the stockyard where it will stand ready to be transferred to the boilers. Its ramp up to nameplate capacity will occur between 2013 and 2015 as all the Medupi boilers come online. Although the Medupi supply contract is substantial, it is by no means the mine’s only offtake contract. Grootegeluk already supplies 15 Mtpa of coal to Eskom’s nearby Matimba power station (since its start-up in the 1980s), and

Inside Mining 05/2012

Materials handling The main contracts: Process plants engineering: Aveng E+PC Civil/structural engineering: Arup Materials handling and stockyard: LSL Tekpro Scheduling: Amrec Planning and cost engineering: PaCE Project management skills: MAC Consulting and UMP Quantity surveying: PCC ME&I: Wade Walker

â&#x20AC;&#x153;The mine has access to resources in excess of 100 years of supply.â&#x20AC;? Ernst Venter millions of tonnes of various coal products to ArcelorMittal, Saldanha Steel, the local market and a considerable portion to the export market as well â&#x20AC;&#x201C; hence the necessity for many different beneficiation plants on site, each of which treat a specific size and quality product for a specific client or market.

the SJHIU

ingredients

for the perfect mix

â&#x20AC;&#x153;We have ave 12 different benches, ch only of which two are waste.â&#x20AC;? supply The 6 Mtpa to of 14.6 Medupii effectively es Grootegeincreases otal coal outlukâ&#x20AC;&#x2122;s total ply by 75%. put supply This equates to nearly 35 Mtpa of coal every year, which it is capable of doing well beyond the Medupi conThe mine has access tract. â&#x20AC;&#x153;Th urces in excess of to resources 100 years of supply,â&#x20AC;? Venter adds. And while the power station is still not ready to receive coal, the new silo and conveyor feeding coal from the mine to the silo went â&#x20AC;&#x2DC;liveâ&#x20AC;&#x2122; as scheduled.

Committed to the environment

Multotec, a leading mineral process solutions provider to the mining and mineral beneďŹ ciation industries, partners with customers for perfect equilibrium between the life of equipment and process effectiveness in every individual customer application. Our value-added products and extensive application knowledge have established our global reputation for providing optimum technical solutions and the highest levels of support through consulting services and ďŹ eld service teams.

Even more impressive than the sheer size and speed of the project is Exxaroâ&#x20AC;&#x2122;s commitment to ensuring that the GMEPâ&#x20AC;&#x2122;s carbon footprint is as minimal as possible. â&#x20AC;&#x153;The zero effluent beneficiation complex will not require a tailings dam facility, the result of using dry screens to screen out <4Â mm material and using it directly in the product,â&#x20AC;? Venter points out. The yield will be further optimised by beneficiating the larger fractions through larcodems (large coal dense media separators) and large diameter cyclones, and by using press filters to dry ultra-fines coming from the beneficiation process. The entire project will also be energy efficient, owing largely to the use of variable speed drive electric motors and conveyorÂ drives. Exxaro has also invested in the development of 950 new eco-friendly housing units for its employees, all featuring solar-powered geysers, water-saving and recycling, gas stoves and evaporative air conditioningÂ units. The project was commended in Nedbankâ&#x20AC;&#x2122;s Green Mining Awards last year.

Impressive innovations

Partner with us today 5FM t NBSLFUJOH!NVMUPUFD DP [B www.multotec.com

Once the larger Grootegeluk pit (about 4 x 5 km, and 130 m deep) is in full production,

Materials handling its advancement rate will increase from about 120 m a year to about 210 m. “Our rehabilitation procedure is to move and back-fill our mined-out areas from July 2013 as we progress,” Venter notes. “We will ensure our faster production rates are maintained through the use of two semi-mobile tips and crushers, which will follow the pit as it moves. They will be moved about once every three years. Until now, all the coal has been hauled out using trucks. With the introduction of the conveyors and semi-mobile tips and crushers, the trucks will not leave the pit, but transport the ore to the tips where it will move to the plants by conveyors.” In addition to the expanded pit and new GG7 and GG8 beneficiation plants (with an exceptionally compact footprint), the GMEP also entails the construction of run-of-mine (ROM) and discard bunkers, the 430 000 t capacity blending and loadout stockyard (refer to ThyssenKrupp Materials Handling story on page 6) which will feed the coal to an Eskom silo that

will link directly to the Medupi boilers. Venter adds that the new plants will unlikely standby unused once complete, but could be used to alleviate pressure during maintenance procedures with the older plants, while the Eskom Medupi power station gets to full burn capacity.

ABOVE The GMEP will supply 14.6 Mtpa of coal to the new Medupi power station. The addition of two beneficiation plants, GG7 and GG8, increases the number of plants on site to eight, effectively making it the largest beneficiation company in the world

Weba Chute Systems

Tel: +27 (0) 11 827-9372 Fax: +27 (0) 11 827-6132

www.webachutes.com

weba@mjeng.co.za

Coralynne & Associates +27 (011) 422 1949

Absolute Material Flow Control

Materials handling

LOADS OF CONVEYORS Materials handling specialist Taggart LSL Consulting, a company under the Taggart Global umbrella, has secured a substantial materials handling detail design contract for Exxaro’s Grootegeluk Medupi Expansion Project (GMEP) project, which started in April 2009. It is one of the company’s largest contracts to date and will showcase its skills and ability to the industry. “Our contract includes all the detailed mechanical, structural, civil and electrical, and control design work for numerous out-ofplant material handling aspects of the GMEP

project, which includes almost 28 separate conveyors,” says Jan Gerber, Taggart LSL Consulting project manager. More specifically, the contract includes the design for the inpit run-of-mine (ROM) conveyors to the new GG7 and GG8 plants (due to start shortly), the feed conveyors to the ROM bunkers (construction 90% complete), the ROM bunkers and the reclaim conveyors to the raw coal silos (construction is more than halfway done). “We are, in addition to this, providing detailed design for the blending beds in the stockyard, the overland export conveyors

to the Medupi power station silo, assizing plant and discard handling system including the discard bunker, bunker feed and reclaim conveyors,” says Gerber. Over and above the out-plant materials handling designs, Taggart LSL also completed 42 in-plant conveyor designs (mechanical and structural) as sub-consultants to the Engineering and Projects Company. The company will complete the entire design portion of the project in May 2012, valued just below R200 million, and will further provide implementation support to the Exxaro construction management team in all disciplines until the end of the first half of 2013. The biggest challenge for Taggart LSL Engineering, was meeting all of Exxaro’s schedule deadlines, along with the design of the ROM and discard bunkers, (reputedly the largest of its type in the southern hemisphere), Gerber points out. Taggart LSL is assisted in the designs by Arup (civil and infrastructure designs), Engineering and Projects Company (electrical and control designs) and Professional Cost Consultants (quantity surveying).

GMEP DOCUMENT CONTROL – FOLLOWING THE PAPER TRAIL Document control

specialist Allscan Trading, originally contracted to evaluate Grootegeluk Medupi Expansion Project (GMEP) document processes and add value where required, contributed significantly to the project. Having established shortcomings in the process-to-control document, the company took the task upon itself to resolve the problem. “Because of our unique skills within Allscan, it was easy for us to see the shortcomings in the document control processes that were followed, enabling us to identify future problems that may become issues down the line and address them properly,” explains Chris Botha, Allscan MD. Allscan’s GMEP contract first started in April 2010, where its contract grew to include the control of all vendor, commercial and technical drawings to and from different vendors/ contractors/design consultants. The company currently has 15 full-time document controllers on the project, with certain members located on site. Allscan also assisted with the implementation of an electronic document management system at a very late phase in the project, which Botha believes will be of great value for future Exxaro projects. The movement of drawings between the design consultants and the contractor on site were very difficult at times Botha explains. “It is clear that embracing technology is still difficult in a mining environment, because of the lack of infrastructure support like Telkom lines and 3G access or stability.” Most of the drawings issued on the project were still done in hard copy, meaning that sometimes 100 000 pages per week were being printed. “Our turnaround times from receiving a drawing to having it on site in Lephalale was very tight – often within three working days – which was challenging, especially considering that we still had to maintain the full audit trail for each drawing. Many extra hours were worked to ensure that drawings were ready for the contractor on site when he needed it.” Allscan has subsequently been contracted to continue with Exxaro on one of its next mega projects: the Grootegeluk Discard In-pit Project. “We are honoured to be part of such an amazing team and project,” says Botha. “Because of all the lessons learned on the GMEP project, which we will complete at the end of 2014, we are in the fortunate position to understand the processes that need to be followed to ensure the unrivalled outcome that every mining company should aim for. Our focus area will always be document control. We have built sound relationships with many of the other consultants on the project, which I believe will stand us in good stead for future business.”

Materials handling

MOTORISED PULLEYS

Conveying an EFFICIENT solution The motorised pulley is internationally recognised as an efficient belt conveyor drive solution. The product’s installation base across Southern Africa may be small, but it is steadily growing as local mining players gain understanding and appreciation of the product’s immediate and long-term benefits, writes Laura Cornish.

onveyor equipment manufacturer, Melco, a wholly-owned subsidiary of Italian bulk handling components company Rulmeca since 2006, has grown its motorised pulley installation base in Southern Africa to 181 since it first introduced the product locally four years ago. Last year alone it sold and installed 48, ranging from 3 kW to 250 kW. “Our client base includes some of the industry’s distinguished blue-chip customers such as BHP Billiton, Anglo American Thermal Coal, Anglo American Platinum, Samancor Chrome, Optimum Coal, Sasol, Harmony, Xstrata and Debswana,” says Melco MD, Gavin Hall. In addition to these mining companies, Melco has close working relationships with all engineering and project houses operating in Southern Africa. “The internally powered motorised pulley offers substantial benefits to operators of conveyor

Inside Mining 05/2012

systems, both underground and on surface,” he notes. According to Hall, in many applications, the motorised pulley can have a lower energy consumption when compared to conventional drive units, greater efficiencies, reduced noise output, saves space, is lighter in weight, and is also almost maintenance-free – all features contribute significantly to reducing operation downtime, and operating costs over the life of the motorised pulley. As energy restraints escalate and new mining operations emerge in more remote locations across the continent, the attraction of the motorised pulley becomes increasingly evident. “Test results indicate that motorised pulleys may use less energy (unloaded and loaded) than a comparable geared motor drive. Motorised pulleys have fewer frictional losses and a

Internal and external views of the motorised pulley

higher efficiency than conventional drives, which normally transfer approximately 75% of their mechanical efficiency to the belt, compared to the motorised pulley that transfers substantially more than that.” Hall reveals. “The advantage this product offers is directly a result of its design, which encloses the drive and gearbox inside the drive pulley. Enclosing all drive components within the pulley shell makes the unit compact,” Hall states.

Materials handling

Rulmeca’s motorised pulley (RMP) was first developed shortly after the first industrial version was designed in the early 1950s and has spread across the globe. The RMP specific design includes an IP67 sealing system, a Rulmeca hermetic seal and uses synthetic oil. It incorporates a range of powers and speeds, as well as optional features such as variable frequency inverters and soft starters, built-in mechanical backstops, anti-condensation heaters (for use in cold climate conditions), labyrinth seals and electro-mechanical brakes.

BELOW The company boasts a state-of-the art manufacturing facility and a work force of more than 400 employees

Design advantages for an RMP • Gears and bearings continuously and automatically splash lubricated, which lowers maintenance requirements. • The circulating oil transfers heatfrom the motors through the pulley shell and into the conveyor belt. • The RMP dissipates heat by utilising the conveyor belt as an infinite heat sink. • Electromechanical components (motor, gearbox and bearings) are sealed to IP67 standard within the steel pulley shell, increasing reliability, minimising drive size, improving personnel safety, reducing personnel guarding requirements, providing even drive weight distribution to the conveyor structure and decreasing noise. • Redundant enclosures, such as cast iron motor frames and steel coupling guards are eliminated, decreasing drive weight. • Only the shell of the RMP moves when installed, which makes it an extremely safe design. • Because of its compact design, the RMP is often less expensive than conventional drives, and is much quicker and easier to install. • RMPs require no routine maintenance other than the recommended oil change every 20 000 hours and an oil seal change every 30 000 hours. If synthetic oil is used, oil changes can be extended to every 50 000 hours. • RMP’s are more efficient than conventional drive systems, the more important reasons for this being: – no elastic or hydraulic coupling present (every clutch lowers the efficiency factor) – all bearings and gear wheels run in oil and parts of the electric motors as well – all axles of the power train are parallel; no 90 degrees change of direction as is with most conventional gear motor drives.

Member

Sarens South Africa (Pty) Ltd

GLOBAL HEAVY LIFTING SOLUTION GROUP PROJECTS & MOBILE CRANE HIRE

• Tel: 011 861 3800 • Fax: 011 861 3899 • E-mail info@sarenssa.co.za

nothing too heavy, nothing too high

sarens

Panel discussion: ICT

SOFTLINE ACCPAC

Sage ERP X3 now exclusively for mining Software solutions company, Softline Accpac, part of the Sage Group, will soon launch a mining-specific version of its global industry enterprise resource planning (ERP) software application Sage ERP X3, Keith Fenner, Softline Accpac and Sage MMD Africa sales vice-president, tells Laura Cornish.

lthough the product is already popular in the mining sector, additional applications have been included to further enhance its core product performance.

Sage ERP X3 – such a success Although two of Sage MMD Africa’s core software products, Sage Accpac and Sage ERP X3, are popular software solution packages for the mining industry, they were not originally designed for one specific sector. “Despite this, the products have celebrated major successes across the mining industry, with hundreds of installed systems in place,” Fenner begins. While the Sage ERP Accpac modular software targets the lower-to-mid market companies, it is the company’s full-blown Sage ERP X3 system that continues to gain momentum in the industry. “Sage ERP X3 is aimed at the mid-toupper-end mining company, and it is

designed to streamline all operating and processing aspects of single or multiple mining operations,” Fenner describes. In essence, the product is a complete web-based integrated management suite, covering all operational needs in terms of production management, distribution, logistics, asset maintenance, finance and human resources. It is a multi-legislation, multi-lingual and multi-currency solution, and can be adapted to suit the specific elements and legal requirements of each country. It also guarantees optimum management of midsize and large companies, on both national and international scales. The product has shown such promise in fact, that Deloitte Consulting division, Deloitte Mining Shared Services (DMSS), has chosen to partner with Sage and Softline Accpac to distribute the X3 system across Africa. The DMSS platform provides costeffective back office process support to mining companies allowing more focus on

core business operations and creating a low, fixed-cost overhead structure. This service delivery model allows mining companies to co-source and/or outsource transactional and knowledge processes and take advantage of the cost benefits offered by consolidating and streamlining back office processes. ERP business systems are an important component of this service. “Sage ERP X3 serves as a very cost-effective enabler for Deloitte to deliver our Mining Shared Services Division’s costsaving efficiency model to our clients,” says Johan Botes, CEO of DMSS. “The product is ideally suited to the midto-upper mining sector, for mining companies looking for a capable ERP solution that is not too big and too complex. It fits

BELOW The new Sage ERP X3 mining edition can handle all the various mining processes in mid-to-upper tier operations

Inside Mining 05/2012

“The products have celebrated major successes across the mining industry, with hundreds of installed systems in place.” Keith Fenner

Specialised mining solutions that more than scratch the surface

perfectly in between the Accpac (modular) solution and Tier 1 ERP systems,” Botes continues. Botes adds that the system has all the necessary functionality requirements of an ERP solution, and is ‘cost effective’ in terms of implementation and maintenance. “It is also very easy to use,” he mentions. Since announcing the partnership between the two companies in September 2011, DMSS has already installed one full system, will go live with another in the next two months and is under way with numerous due diligence projects.

The next step for ERP X3 Sage MMD Africa, with the assistance of DMSS, will soon launch a vertical ‘Industry Solution for Mining’ version of its Sage ERP X3 software. “We have added mining-focused features and configuration to the core product which will enhance the performance of the software when used in mining-specific applications,” Fenner explains. “Once this system is fully positioned and ready for the mining market specifically, we expect it to take off even more dramatically in the industry. It is already viewed by industry analysts as the third most effective

ERP solution,” Botes points out. He mentions four specific areas that have been supplemented: • Enterprise asset management – this tool provides an equipment master file enabling all capital equipment items to be monitored in real time. “It offers enough functionality to enable proper equipment asset monitoring and maintenance.” • Internal requisition – enabling the requisition of stock to certain areas or certain functions at certain times. This ensures that associated costs can be monitored properly, at the relevant time. This removes the possibility of having to source unaccounted for costs. • Purchasing – incorporated functionality enabling multiple requests for quotations simultaneously and efficiently, this is another tool which will benefit cost control and monitoring. • Operational Budgets – the ability to manage and view financial and operational budgets in a single real-time view ensuring a single version of the truth and instant pinpointing of off-plan activities. BELOW Monitoring equipment performance in real time is an addition benefit of the new Sage ERP X3 mining edition

Panel discussion: ICT

GEMECS

Helping juniors climb the ladder A geological consulting business, Gemecs new mining service is aimed at filling a gap in the early-stage development cycle of junior exploration/BEE company prospects. While contributing to the longer-term future of this industry, the new service is also expected to deliver strong growth for the company, administration and finance MD Coenie van Niekerk tells Laura Cornish.

an Niekerk attributes Gemecs’ ongoing success since its establishment 21 years ago to its ‘different mindset’ approach to business. “While we have a small component of permanent staff, the industry recognises us largely for the number of independent geologist associates with decades of experience in the mining industry who work and operate under the Gemecs umbrella,” he explains. Gemecs employees also work remotely and are spread across the country, mostly positioned close to active mining areas. Gemecs has a Johannesburg-based head

Inside Mining 05/2012

Panel discussion: ICT

office, which is seldom frequented, while the Middelburg site office is growing rapidly to accommodate new coal clients. Gemecs’ business model allows the company to keep its overhead costs low while offering its existing and growing client

with economically viable options to advance their projects to concept study and beyond,” Van Niekerk outlines. In line with this objective, Gemecs, and HF Projects, which specialised in mine design and scheduling, “joined hands” to-

Start-up and developing junior/BEE mining companies rarely have enough cash to employ full-time geologists and purchase the necessary software to plan and develop a resource model base a vast pool of skills and knowledge on tap. It is this alternative business thought process that enabled Gemecs to identify a growing gap in the market which it will play a direct role in fulfilling. “Start-up and developing junior/BEE mining companies rarely have enough cash to employ full-time geologists and purchase the necessary software to plan and develop a resource model, and the cost of employing a large consulting practise to do this is financially impossible. We are offering ourselves to the market as an affordable geological consultancy firm, with the necessary software tools to develop a resource model for the client, including exploration management, the update and maintenance of the borehole database and take it further to mine design and reserve modelling. This service is providing juniors

wards the end of 2009 to improve its service offering in line with its new strategic objective. The two companies merged in March 2012 and now provide these additional services to clients. Gemecs’ preferred modelling software that is used for consulting is Gemcem MinexTM – geology and mine planning for coal/stratified deposits – which is marketed and sold by international mining software company, Gemcom. “We have an exclusive agreement with Gemcom to train mining clients on how to use the Minex software and also provide all technical product support,” says Van Niekerk. Naturally, all of Gemecs’s geological modelling is executed using the Minex software. Gemcom recently upgraded the Minex mine design and scheduling software modules for both underground and opencast

mines, which will further facilitate Gemecs’ extensive service roll-out to the junior industry. Its working relationship with bluechip, major mining houses is, however, also extensive and includes Exxaro, BHP Billiton Coal South Africa, Xstrata Coal South Africa, Xstrata Alloys, Glencore, Optimum Coal and Eskom. And while the company is targeting the junior industry, it is already working extensively with numerous juniors in the country, including Kuyasa Investments (Delmas Colliery), Universal Coal plc, Continental Coal, Umcebo Mining (now part of Shanduka Coal), Forbes Coal, Zululand Anthracite Colliery, Xceed Resources, African Energy Resources, Global Coal Management, Warrior Coal, Shanduka Coal, Boynton Platinum and Hodges Resources. “Our next step is to grow beyond South African borders, rolling out our services together with the Minex software to Southern African countries. Our footprint in Africa already includes Tanzania, Malawi, Mozambique and Botswana, where we are working on numerous projects.”

The full service offering Gemecs has vastly extended its geological service offering over the years, from the initial basic geological modelling and resource estimation to the full complement of services today, including target generation, prospecting permit applications, exploration management, drilling core description, core sampling, underground and surface mapping, geological databases, geological resource estimations and orebody modelling mine design and scheduling. “Although our core focus ends prior to the start of concept and feasibility studies and so on, we often remain on the project management team as advisors,” Van Niekerk notes. In addition to Gemcom’s Minex software, Gemecs’ additional software tools include: • SABLE Data Works – geological database services for gold, PGMs, chrome and coal • Micromine Geobank (previously GBIS) – geological borehole service (coal and other commodities) • XPAC from Runge – mine planning • Planet GIS – geographical system used for various plans and target generation.

Inside Mining 05/2012

Profile: ICT

MineRP

Working with mining data Working with massive, diverse datasets is never easy. Anton van der Walt, technology business manager at MineRP, an international mining technology and consulting firm, explains.

ining managers are often required to query and combine diverse datasets and extract relevant information accurately and swiftly for analysis and reporting. While this may sound simple enough to the uninitiated, major stumbling blocks exist. These include: • Data availability: On a typical mine the data you may be looking for is rarely easily accessible and available, either from a physical location or format point of view. • Data meaning: When data is combined in central databases, the specific miningrelated data types used by source systems are often not supported, which results in a loss of critical business meaning. • Data context: Mining takes place in a real three-dimensional (3D) world, not on a projected two-dimensional platform. Solutions that do not cater for 3D visualisation of information cause further loss of business context. • Data migration: Migrating data into spatially enabled 3D databases from many proprietary formats easily turns into a nightmare.

Sharing data To satisfy the demand for real-time, interoperable solutions for data sharing, vendors of expert software (such as geological data management systems, mine planning and scheduling tools, and survey applications) typically only provide simple data import/ export mechanisms.

Inside Mining 05/2012

The problem with these import/export mechanisms is that data remains unavailable to the larger enterprise and is focused on unique functions and disciplines (expert use only), resulting in mere duplication and further removal from the actual platform where the data was created. In a recent case study done by MineRP during a spatial implementation, it was found that the same datasets existed more than a thousand times in various formats and versions, introducing obvious risks of confusion, concurrency, security, etc. In many cases, simply reformatting the data from one propriety format to another results in so much loss of actual business meaning that the final dataset has little use beyond mere visualisation.

Centrally storing is not sharing! The concept of enterprise data sharing is often confused with centralised storage and document management. In reality, a document management system (DMS) and

Profile: ICT

an enterprise mining database could not be further apart. With a DMS, the content of the files collected and stored centrally remains in its propriety format, leaving it unavailable to external systems, whereas true enterprise data stores provide a standard for information storage, management and reporting that is open and available to all potential users thereof. A central, spatially enabled database is needed to effectively share mining data – a concept requiring intimate understanding of mining as a business, as well as best practice in spatial information management.

Moving datasets into a 3D spatially enabled enterprise world Industry evidence points to poor track records for most data migration projects. 67% of data migrations projects are not delivered on time, with 40% of the projects experiencing budget overrun. (Source: Bloor Research, Sep 2007, Data Migration in Global 2000) The high failure rate in data migration is primarily due to a lack of attention on

data definition, poor consistency and low quality of existing data. For data migrations to be successful, there must be an understanding of the underlying business processes, the actual format and content of the proprietary datasets, as well as the required result to be obtained.

The MineRP Difference MineRP has a dual strategy of remaining at the forefront of creating expert mining tools for the domain-specific requirements of mining professionals such as geologists, mining engineers and surveyors, as well as leading the world in the field of enterprise solutions for mining technical information integration. This means that the company actively partners with clients and traditional competitors alike to deliver on the promise of integrating mining technical solutions. Over the past five years, MineRP has invested more than any other mining technical solutions developer in the development of standardised processes, methodologies

and conventions for mining, and has captured these in a truly groundbreaking piece of technology called SpatialDBTM. When combined with MineRP’s SpatialDashTM and SpatialAnalyzerTM, the web-based solutions used to analyse and visualise centralised mining data, mining companies now have the freedom to choose the expert mining tools of their choice, while leaving the task of data integration and sharing to the real experts – MineRP. With partnerships with the majority of global mining technical solutions suppliers either formally in place or being established, the company is poised to revolutionise the way that mines think about their data.

For more information about SpatialDB and our partnership programmes, please contact Empie Strydom, VP of marketing, or visit www.minerpsolutions.com.

BELOW Moving data from expert systems to enterprise datasets such as MineRP's SpatialDB

Inside Mining 05/2012

Panel discussion: ICT

MICROMINE

Revenue increase = big expansion

Mining and exploration software provider Micromine could be set to increase international market share after it revealed a 64% increase in revenue in 2011.

icromine COO, Kevin Fitzpatrick, believes this success can be largely attributed to the rising demand for the company’s flagship software package, Micromine – a toolbox of solutions that enables the user to capture, manage and interpret critical mining and exploration data. Micromine made a concerted effort during 2011 to promote the new-andimproved Micromine 2012 software package, with enhanced 3D capabilities, GIS, GPS and grid data compatibility, upgraded binary fields and a new Scheduler module, which is a user-friendly alternative to generic spreadsheet and project management applications. “Emerging markets such as China and Mongolia have proven to be the top-performing divisions in terms of worldwide sales and revenues, followed closely by Africa, Russia and Kazakhstan. Due to this unprecedented success, we have set some aggressive budgets for 2012 and, to date, are tracking about 52% up on last year,” he adds. Newly appointed regional manager, Marc Ramsay, notes that investment into African mining continues to increase at a consistent rate and believes that there is enormous growth potential for Micromine within the region. “Mining in Africa is in a healthy state at the moment, and more companies are undertaking exploration projects, which has ultimately resulted in a spike in our Micromine product range in particular.” As this demand continues to rise, Micromine Africa will focus on increasing its customer support capabilities through an extended network across Africa. “We want to make our support network a priority. During the past few years, the Micromine

Inside Mining 05/2012

Panel discussion: ICT

“Mining in Africa is in a healthy state at the moment, and more companies are undertaking exploration projects, which has ultimately resulted in a spike in our Micromine product range in particular.” Mark Ramsey Africa support and consulting team has doubled, and I am confident that this number will be doubled again within the next four years. “Our Geobank data management software solution has also been gaining popularity on an international level, following a major upgrade in 2011. The final product is expected to be fully-completed in October 2012,” Fitzpatrick continues. Micromine is furthermore excited about its mine production and maintenance solution, Pitram, which records, manages and processes mine site data in real-time,

and provides the tools needed to increase production and efficiencies, reduce costs, and improve safety and business intelligence capabilities. Looking to the future, Fitzpatrick notes that Micromine main focus will be growth. “Micromine will aim to grow its service offerings to provide a comprehensive and holistic solution across the entire mining spectrum. This strategy has proven to be highly-successful over the past 12 months, with new offices being opened in Denver, USA; Santiago, Chile; and Belo Horizonte in Brazil. With an anticipated boom across

emerging economies in Africa and Asia in particular, I expect this growth trend to continue well into 2012 and beyond,” Fitzpatrick concludes.

Electrical, instrumentation and control

AN ELECTRIC NEW STRATEGY

Establishing platforms The last six months have seen Murray & Roberts Group undergo a significant transition. The group moved from the concept of ‘business clusters’ to focused operating platforms with similar types of work and core competencies, capable of enhancing project delivery by maximising on synergies between their various fields, MD Tim Wakefield, tells Laura Cornish. The platforms The Engineering Africa Platform is one of five within the Murray & Roberts Group, the others include: Construction Africa and Middle East • Murray & Roberts Construction • Murray & Roberts Marine • Murray & Roberts Middle East • Murray & Roberts Concessions • Tolcon Construction Global Underground Mining • Murray & Roberts Cementation • Cementation Canada • RUC Cementation • Cementation Sudamerica Construction Australasia Oil & Gas and Minerals • Clough • Forge

lectrical, instrumentation and control company Wade Walker is now an integral component of the Engineering Africa Platform, and the benefits are re-energising.

The platform As a cohesive group entity, the Engineering Africa Platform comprises EPC projects implementer, Murray & Roberts Projects; structural steel fabrication and machining company, Genrec; and integrated structural, mechanical, platework and piping contractor, Concor Engineering. Although a predominant focus is for the Platform to offer value to the industry as a single, unified force, showcasing the numerous benefits it can offer its clients, Wakefield adds that each company will retain its individuality, and continue working exclusively in its electrical and instrumentation discipline as before if mutually beneficial to the client. “We will always retain our core

Inside Mining 05/2012

ABOVE Instrumentation installation and hook-ups in progress at the South Deep Backfill Project RIGHT Skills development and training ensures employees progress upwards.

identity and continue building relationships with both large and smaller clients. “The Platform provides the opportunity for a wider range of offerings in project work, and the opportunity to take on larger contracts as well,” Wakefield explains. “More clients are showing interest in awarding civil, mechanical, electrical and instrumentation contracts as part of a larger package.” Because all the companies have worked together in the past, the knowledge transfer between the leadership teams is going smoothly. Wade Walker is, in fact, under way with the boiler instrumentation contract in an arrangement with Actom for the Medupi power station, and can draw on experience and assistance from its sister platform company Murray & Roberts Projects, as well as

Construction Products Africa • Hall Longmore • Murray & Roberts • Building Products • Much Asphalt • Rocla • UCW

Genrec, which is also active on site. “We will maximise on synergistic opportunities wherever possible. Career progression between the companies, and training and skills development are such area.” The benefit of integrating company service offerings into a single, larger solution

“More clients are showing interest in awarding civil, mechanical, electrical and instrumentation contracts as part of a larger package.” Tim Wakefield offering can be significant – we can now present a single interface for multiple construction disciplines, delivering larger project packages to the client. This alleviates project management skills shortage pressures, provides improved continuity between the various project aspects, allows for more efficient upfront planning and reduces the overall risk to the client and its project,” Wakefield outlines. The platform has already commenced with project tenders on this basis and anticipates the award of new projects, and the chance to prove its value as a new cohesive entity.

Enhancing its services and local presence abroad Wade Walker’s footprint has always been extensive across Africa, and while the company’s present short-term workload is substantial, the volume of new tenders and contracts coming through is small. “Although the medium-term pipeline for new work is positive, short-term work is scarce and we are looking at alternative value adding methods of attaining new and additional business. More specifically, we are looking at value-add services through strategic associations with specialist subcontractors,” Wakefield continues. The company is also altering its employment model to include more permanent employees, especially in African countries where local employment promotes sustainability, for the company and the country. “Employing local skills shows long-term commitment to the countries in which we work, where clients are also showing greater preferences for working with locally sustainable businesses.”

BELOW A 30 tier top entry Motor Control Centre complete with BUS trunking

Electrical, instrumentation and control

INCREASING MARKET SHARE

An electrifying strategy Electrical and instrumentation specialist and Zest WEG Group subsidiary EnI Electrical is aiming to grow its market share by targeting larger project opportunities in Africa, including in South Africa, sales and marketing manager, Trevor Naudé and engineering manager, Russell Drake, tell Laura Cornish. LEFT Experienced technical teams ensure quality workmanship across the border RIGHT Lights being fitted on a plant by EnI Electrical

to complete its contract for the Konkola project between the third and fourth quarter of 2012. The scope includes all electrical infrastructure, including the substation (utility), through to all instrumentation and control, with an 11 kV overhead line linking all project components. “A project of this size has given us the credibility to take on larger projects worth millions of dollars with greater frequency, together with large international mining houses, into countries across Africa,” Naudé reveals. Because a large portion of ENI’s work is generated through its local branch subsidiaries, including Zambia, it will look to open new branches as opportunities arise.

oth Naudé and Drake acknowledge that while most of the company’s potential growth opportunities lie beyond South African borders, the company will continue to leverage its reputation in South Africa. “Our

countries across the African continent. Considering that the company is working towards the completion of one of its largest and most important contracts to date – the entire electrical and instrumentation contract for Zambia’s Konkola

“Our intention is to capture a bigger piece of the electrical and instrumentation pie – estimated to be worth in excess of R2 billion annually.” Trevor Naudé intention is to capture a bigger piece of the electrical and instrumentation pie – estimated to be worth in excess of R2 billion annually,” says Naudé. The company’s African strategy is perfectly aligned with Brazilian motor manufacturer WEG, whose purpose in acquiring Zest was to gain significant footholds in

Inside Mining 05/2012

North copper project, in Zambia – the momentum for its growth strategy is already under way. The project is located in the Chililabombwe District in the Copperbelt Province. Copper extraction is expected in 2012, and full production in 2013. EnI Electrical accessed the site in August 2011 and is due

Zambia In addition to the Konkola project, ENI Electrical recently completed the electrical and instrumentation work for a smelter upgrade project and has just commenced with another. “These projects are indication that we are already growing our market share, and we are hoping to secure further copper beneficiation and smelter projects in the country,” Drake explains. ENI Electrical’s Zambian branch is its largest to date and has been in operation for six years.

Mozambique “Thanks to the coal and infrastructure development boom in the country, we have been intimately involved with port and coal handling projects over the last two years, placing the company as one of the preferred electrical, instrumentation and

Electrical, instrumentation and control

LEFT An EnI Electrical team pulling cable on site in Mozambique RIGHT Cable racking being installed by EnI Electrical

construction companies in the country,” Naudé enthuses. The company established a local presence in Mozambique five years ago.

Ghana “Our foray into Ghana started many years ago with the Gold Fields’ Tarkwa project, which since its inception has undergone a number of brownfield expansions. We have been involved in every single expansion,” Drake notes. Having established a local presence eight years ago, the company is using its Ghanaian base as a springboard into the entire West African region, including Burkina Faso, Nigeria, Mali, Senegal, the Ivory Coast and Togo. “Together with our parent company, Zest WEG, we recently embarked on a roadshow across Ghana to increase the local mining industry’s awareness of our product

EnI Electrical is set on establishing a branch in Tanzania to support the construction on four major gold projects services, capabilities and expertise across the group of companies, individually and collectively,” Naudé outlines. Looking forward, Drake adds that the company is continually investigating opportunities in gold, as well as oil projects.

Tanzania ENI Electrical has its sights set on establishing a branch in Tanzania next. “Our

objective is to support the construction sites of four different major gold projects being developed in the country, through a local subsidiary,” Naudé explains. “The gold opportunities alone in this country are ample.” The company has already had its employees permanently stationed in Tanzania for the past 18 months, undertaking a variety of projects.

Inside Mining 05/2012

Pyrometallurgy

RICH IN REFRACTORIES

Can you stand the heat? Vereeniging Refractories, known in the industry as Verref, has a rich and diverse history in the South African pyrometallurgical industries sector. As the local industry has developed, so too has Verref. BY GRAHAM HOLLOWAY*

stablished almost 130 years ago, the company has grown to become one of the largest leading manufacturers of refractories and providers of solutions to the pyrometallurgical, chemical and manufacturing industries in Africa, with a robust technical development programme ensuring it remains at the forefront of customer requirements. Verref produces a large and diverse range of refractories, which includes basic and aluminosilicates, both in shaped and unshaped formats, from three plants in Vereeniging and two in Springs, enabling the company to provide the solutions that are required by today’s industry players. The company also manages mining operations in Zeerust, Hammanskraal and Rietfontein. Verref obtains its raw materials locally and sources its minerals locally, but imports when necessary. The ownership and use of local materials gives Verref a unique advantage in developing South African solutions for South African challenges. “Our team of experienced refractory engineers, metallurgists and technicians can assist with problem identification, areas for improvement and training. We are focused on building long-term partnerships, adding value to our partner’s businesses from product specification to product disposal.” The local commodity industries served include, among others, platinum, copper, nickel, steel, ferro-alloy and foundries both locally and in the neighbouring SADC countries. Most of these industries exploiting the mineral richness of Southern Africa, have had, or still have a direct relationship with Verref in one way or another. Because these industries are continually evolving, new technologies are constantly utilised, and to cater for this, Verref

Inside Mining 05/2012

maintains a technical centre on site at the Vereeniging plant. Comprehensively equipped and staffed, this facility operates independently and provides research and development for Verref and also an outsourcing option

for customers requiring test-work or research. Verref maintains a close relationship with the leading furnace designers and furnace suppliers worldwide, with the view to offering the latest lining technologies. Exports play an increasing

Pyrometallurgy

Established almost 130 years ago, Verref has grown to become one of the largest leading manufacturers of refractories role in the ongoing development of the Verref brand. Major furnace contracts have been successfully concluded, which has given the company highly valuable experience in this most demanding of timecritical and deadline-run businesses. Verref is a fully owned South African company and provides local employment to over 600 people in the various refractory and mining divisions. * Graham Holloway is sales manager at Verref

REFERENCE LIST OF PROJECTS AWARDED IN THE BASE METALS INDUSTRY, IRON AND STEEL AND POWER GENERATION (Projects marked * were full re-lines or new furnaces)

NICKEL, COPPER, COBALT AND PLATINUM INDUSTRIES Materials: magnesia, magchrome, chromag, chrome alumina and alumina-silicate brick and monolithics. DATE 2003 2004 2005 * 2006 2007 * 2010 *

PLANT FURNACE KCM Smelterco No. 4 Reverb Amplats Union Section Six in Line Amplats Waterval Section No. 2 Six in Line Amplats Union Section Six in Line BCL Botswana Electric Slag Cleaner #2 Rand Refinery Electric Furnace

COMMENT Repair Side and end walls Complete rebuild End walls Complete rebuild Spare lining

FERROALLOYS INDUSTRY Materials: aluminosilicate, magnesia and chromag brick and aluminosilicate monolithics. DATE 2002 * 2002 2004 * 2005 * 2006 * 2007 2009

PLANT Zimbabwe Alloys Assmang Chrome Xstrata Lydenburg Rand Carbide Assmang Chrome Xstrata Rustenburg Assmang Chrome

FURNACE A3 Furnace Cato Ridge A Furnace D Furnace Machadodorp No. 3 No. 1 Furnace Machadodorp No. 2

COMMENT Complete rebuild Wall repair Complete rebuild Complete rebuild Full reline Hearth Partial

IRON AND STEEL (Highveld steel and vanadium only) Materials: magchrome, chrome alumina and aluminosilicate brick and aluminosilicate monolithics. DATE 1993 * 1996 * 1999 * 2002 * 2005 * 2006 * 2007 * 2008 *

PLANT HSVC HSVC HSVC HSVC HSVC HSVC HSVC HSVC

FURNACE No. 4 Sub Arc, Elkem No. 3 Sub Arc, Elkem No. 7 Sub Arc, Demag No. 2 Sub Arc, Elkem No. 5 Open Arc, Elkem No. 6 Open Arc, Elkem No. 1 Open Arc, Elkem Ajax Induction Mixer

COMMENT All but Sub Hearth All but Sub Hearth All but Sub Hearth All but Sub Hearth All but Sub Hearth – conversion All but Sub Hearth – conversion All but Sub Hearth – conversion New Induction Super Heater

POWER GENERATION AND CHEMICAL Acid-resistant bricks were supplied for the ESKOM power station stacks which are approximately 285 m high. The concrete windshields contain 3 x 7 m diameter flues constructed of approximately 3 000 t of Verref Stackline Fawn acid resistant brick. STATION / PLANT • Matla • Duvha • Van Eck • Lethabo No. 1 and No. 2 • Matimba • Kendal No. 2 • Majuba No. 1 & No. 2 • Sasol 2 • Sasol 3 • Hong Kong – 2 Stacks • Ergo • Camden repair • Majuba No. 2 repair Acid-resistant bricks are also supplied for sulphuric acid plants towers and flooring and bund walls in chemical plants.

Inside Mining 05/2012

Vereeniging Refracto ries

The Pyro Metallurgy Industries in South Africa has seen rapid growth over the last few decades. Verref has been a major partner in this growth and development providing solutions and products. We are proud to have been a part of this expansion; indeed we have expanded ourselves over the last 130 years, so that now we are the largest South African owned manufacturer on the continent.

Web: www.verref.co.za Tel: +27 (0)16 450 6111

Pyrometallurgy

AN ENERGY-EFFICIENT PYROMETALLURGICAL PROCESS

It’s all in the ‘tweak’ Pyrometallurgical process technology may be one of the oldest and most developed in the industry, yet it remains one of the most highly intensive energy consuming processes as well. The need to adapt and streamline the process is high as energy resources grow increasingly scarce and more expensive, writes Laura Cornish.

Evaluating ore types a necessity “The basic pyrometallurgy process principals have been embedded in the industry for decades, but because it is so energy intensive, it is essential to adapt the technology to make it as energy efficient as possible. And there are definite options and solutions worth considering that will tweak the process,” explains Johannes Nell, Hatch pyrometallurgy practice lead. The root source enabling this to happen is first to evaluate and properly understand the characteristics of the ore and then identify alternative processing routes. “No two ore types are exactly

No two ore types are exactly the same, and each will respond differently to processing mechanisms the same, and each will respond differently to processing mechanisms.” Nell’s case in point is illustrated in a project Hatch is currently working on. “We are developing a concept study for a prospective manganese project in Indonesia, looking at the best form of pyrometallurgical treatment.” “Using a South African ferromanganese slag composition would be an obvious

benchmark in developing a process for smelting the Indonesian ore, but we determined that by smelting the ore without adding a modifier, we can achieve the same result using about 30% less energy,” Nell reveals. In some instances it is possible to modify the furnace operation for greater overall process efficiency. In the ferroalloy industry, furnaces have traditionally operated

Inside Mining 05/2012

Pyrometallurgy

with a deep cover of raw materials, but this is not necessarily the most efficient mode of operation. Furnaces that have converted to an operation with a partial cover of raw materials on the bath have benefitted from improved metal recoveries, lower electrode consumption and the ability to use cheaper reductants – another valuable resource in the pyrometallurgical industry. This mode of operation is particularly efficient at high furnace operating loads. “By removing such typical constraints, the entire process becomes more streamlined and efficient,” Nell sums up.

Cogeneration is not always the more viable energy-saving alternative A lot of furnace operators are looking to cogeneration to save on energy costs. The process of cogeneration captures unused energy in furnace off-gas and uses it to generate electricity. The overall conversion efficiency is relatively low, but at most only about 30% of the total energy content of the gas is utilised in this way. “While this process enables companies to benefit from the energy in waste gas, companies could potentially achieve even

Inside Mining 05/2012

“Xstrata’s Lion Ferrochrome plant in Steelpoort uses a prereduction process, which is recognised for its clean, energyconservative footprint.” Johannes Nell greater benefits by using the gas to dry, preheat or even reduce raw materials before smelting.” The real key, Nell continues, to reducing electrical energy consumption during the pyrometallurgical process, is to preheat or reduce the raw materials before smelting, ideally with the off-gas generated during smelting. The electrical energy that is required to smelt the material thereafter could be substantially less, potentially by as much as 50%. “Xstrata’s Lion Ferrochrome plant in Steelpoort uses a pre-reduction process, which is recognised for its clean, energyconservative footprint,” Nell adds. “Ultimately, finding the right balance and solution for every ore type is the key to implementing procedures to ‘tweak’ the pyrometallurgical process.”

Exploration, investment and development for miners, financiers and investors 16 - 19 July 2012 Johannesburg, South Africa Africa Mining Congress 2012 is about finding the right mining projects and accessing funding and finance in Africa. The event brings together senior, junior and mid tier mines with African governments, financiers and investors. Learn from leaders in the African mining sector including: Charles Siwawa, Chief Executive Officer, Botswana Chamber of Mines Niel Pretorius, Chief Executive Officer, DRD Gold John C Anyanwu, Chief Research Economist, Africa Development Bank

Scan the above QR pattern with the camera on your smartphone to register at the special offer price. Quote voucher code ADIM

2012 exhibitors

www.terrapinn.com/miningafrica

Transport and logistics

MANGANESE MINE CONTRACT OPENS DOORS

A mega manganese fuel contract Specialist logistics service provider Crossroads recently entered into a contract for the distribution and on-site provision of fuel with Tshipi E’ Ntle, a manganese mine in the Northern Cape. Crossroads has been waiting for an opportunity to enter the manganese mining market and this new contract is the perfect foot in the door.

he Tshipi E’ Ntle manganese mine is a recent development that seeks to have an annual output of 2.4 Mt for the next 60 years, with the hopes of pushing this number to 5 Mt, provided economic circumstances allow for such growth. The contract with Crossroads involves the provision of on-site fuel delivered from the Kroonstad terminal to a storage facility on the mine. As the mine is opencast, which requires a lot of earth moving equipment, it will use a lot more fuel than any conventional underground mining operation, making the provision of fuel more strategic. Crossroads is expected to transport up to 1.5 Mℓ of fuel per month. The management is confident that its commitment and experience in fuel transportation will enable them to manage the contract into a strategic partnership. “South Africa has 80% of the world’s known manganese deposits, which is why we

Inside Mining 05/2012

are excited to enter this market,” says Gerhard van der Horst, CEO of Crossroads. “It is a fast-developing industry in this country and we look forward to growing our business

Town International Airport at a rate of 260 Mℓ per annum. “In addition to the standard dangerous goods training we give our drivers every year,

Our safety standards, driver training and track record in previous contracts with Chevron played a big role in this award in this area as the Tshipi mine increases its output in the years to come.” “Our work in the fuel sector is second to none. Our safety standards, driver training, and track record in previous contracts with Chevron, played a big role in this award.” The contract was not awarded through a tender, but rather through an exemplary recommendation from fuel giant Chevron. Crossroads and Chevron have worked together in the past and, in July 2011, Crossroads was contracted by Chevron to transport jet fuel to Cape

they also undergo mine safety and medical inspections and are equipped with the right technology. We also carry out individual risk assessments to ensure that we comply with all mine regulations,” says Van der Horst. “We are thrilled to have one client recommend us to another,” he adds. “It is the ultimate proof that if one looks after the customer properly, the business looks after itself.”

Transport and logistics

CARRYING THE LOAD

Botswana does it in style

otswana’s service and supply chain management company Transport Holdings believes it has a bright future as Botswana’s mining industry continues to show development promise. It is because of this that the company is ensuring it retains its position as a market leader to the mining industry in Botswana, while expanding into servicing the industry across the rest of Africa. “Transport Holdings provides holistic logistic solutions primarily between South Africa and Botswana. As the current consolidation and transportation services provider for the greater part of the mining industry, as well as cross-border consolidation and fast-moving consumer goods (FMCG) distribution in Botswana, we have an intimate understanding of the critical requirements for our clients. We do not believe in the ‘one size fits all’ approach as every client’s requirements are unique. Our aim is always to find a way to meet those unique requirements,” says Rudi Nagel, Transport Holdings business development manager. “What we offer our clients is good customer service, at very competitive rates,” he continues. Thanks to the mining industry’s active role in Botswana, it has become a critical component of the entire country’s economy, and the same can be said for the transport suppliers based in Botswana. Transport Holdings has with numerous mining projects under way at present and most recently completed its contract for Debswana’s Jwaneng Cut 8 expansion project.

Inside Mining 05/2012

“We were the main transport contractor for the Jwaneng Cut 8 project,” Transport Holdings MD, Anthony Lee explains. “The largest part of this was performing the full logistics function for a shipment of 48 km of 600 mm steel pipes, imported from Turkey. Our performance was recognised by Debswana, and we received a letter of commendation from the chief project engineer as a testimony of our service levels and lack of incident and damages.” Lee continues: “We have recently been awarded a contract from African Copper for transportation of 70 000 tpm of ore from its Thakadu mine site to its Mowana mine site, a distance of 160 km. Beyond this, we have a pipeline of interesting projects we are working on.” Both Nagel and Lee agree that the mining industry in Botswana is becoming increasingly focused on safety, standards, an integrated solution and service levels. This requires higher levels of investment and more demands on execution. “With the support of our valued customers and our experience in the past, we are extremely excited about what the future of the mining, as well as the transport industries in Botswana holds, and are ready to meet their changing needs,” Nagel adds. This is coupled with the challenge of finding skilled and experienced drivers, and retaining them. “Botswana has a shortage of these skills, and it takes time to train people, and for them to gain experience.” Speaking of industry-associated risks, Nagel says there are always risks that need to be constantly managed. “We try our best

The Transport Holdings service Transport Holdings is passionate about service and supply chain management and provides as much of both as its clients allow. The major requirements for the mining sector, within landlocked countries such as Botswana, include: warehousing and consolidation, and then transportation of equipment to and from the mines, to and from suppliers, as well as the transportation of the mine’s products to its customers. In addition, the company provides abnormal transport services. “We offer something we like to call ‘a courier service for mining equipment’ due to the fact that we are able to deliver to our clients within the same time as it would take to courier anything. We are proud of achieving quick turnaround times with general cargo and other commodities,” Nagel explains.

to proactively stay on top of all those risks. With constant vehicle tracking to manage turnaround times, and proper systems to manage fraud, you’re half way there. The other half is to continually challenge what you are doing and reinventing your systems as you go along.”

BOTSWANA Tel: +267 392 4846 Fax: +267 392 4743 SOUTH AFRICA Tel:+27 11 3951414 Fax: +27 11 3954187 Email: sales@transportholdings.com

WE ARE

Project delivery Introducing - a new flameproof underground overbelt magnet Mineral process solutions provider Multotec is in the final stages of developing a flameproof air-cooled overbelt magnet for underground tramp iron removal. The company is poised for the go-ahead to manufacture and supply this innovative new product as soon as it receives certification from Mining And Surface Certification, a company endorsed by the Department of Mineral Resources to act as a certification authority on the standards applicable to this project. Multotec’s Ernst Maritz says: “In line with our company’s commitment to innovation and safety in the mining industry, we took a decision about two years ago to embark on the development of a flameproof air-cooled overbelt magnet. We expect to receive the required certification some time this year. The certification confirms that the product complies with SANS 10108 Edition 5, which refers to flameproof equipment used underground.”

department is managed by Danie Earle, a qualified rigger with more than 15 years’ experience under his belt, 13 of which were spent in the heavy-lift crane industry. A variety of certified rigging equipment is available through the new department, including heavy-lift spreader beams and slings. In addition, the rigging team is capable of manufacturing and certifying rigging equipment and man cages for specialised jobs, and designing and manufacturing transport cradles drawing on in-house expertise. Earle says: “The rigging division’s services are tailored to each client’s specific needs, including load testing and certification of equipment, design of lifting equipment, cranage, rigging and placing of equipment. We also undertake route studies, lift assessments, rigging studies and CAD drawings.”

The Sandvik DR 540 drill rig

Kathu’s karma Technology engineering group Sandvik has hit the ground running at its newly established branch in Kathu, which is on track to achieve a significant budget for the area and is confident of doubling this by 2015. The branch opened in August 2011 and is manned by 15 branch personnel specialising in surface drilling equipment and applications, underground mining equipment and applications, ground engaging tools, technical support for Sandvik equipment and logistical support. It also has 40 people deployed on customer sites for rock tool contracts, 12 field service technicians and 85 performance contract personnel. The Kathu branch includes a warehouse that currently holds about R15 million in spares and tooling. The Kathu branch’s first major contracts were placed by Assmang for ground engaging tools at its Khumani iron ore mine and for maintenance of on-site Sandvik drill rigs. This was followed by orders for the supply of drill rigs at Khumani and at Assmang’s Bruce and King mining sites, for Bluechip Mining and Drilling, mining contractor, Aveng Moolmans, as well as the supply of crushers and ground engaging tools to various customers. “We recently received an order from Petra Diamonds’ Finsch mine for the first fleet of equipment to do the post block for development,” Grobler says.

Rigging and lifting of a locomotive in Witbank

An illustration of the Multotec flameproof air-cooled overbelt magnet

Dedicated to rigging Mobile crane hire company Johnson Crane Hire has established a dedicated inhouse rigging department manned by three qualified riggers and supported by a team of experienced rigging assistants. The

Inside Mining 05/2012

Extreme cleaning The Hydro-Clean system from global screening, washing and pelletising solution specialists, Haver & Tyler Southern Africa, meets the technological and environmental challenge for the effective cleaning of extracted raw material mixtures with particle sizes of between 0 and 80 mm, with substantial savings on energy and water consumption. “The Hydro-Clean is extremely economical, consuming only 0.12 to 0.30 m3 of circulation

water to clean 1 t of dirt or clay-contaminated material with an energy requirement of only 0.3 to 0.5 kWh”, confirms Joachim Hoppe, operations manager, Haver Southern Africa. This flexible high-pressure cleaning system is suited for production rates of 50 to 400 t of output material per hour. “The operating pressure of 40 to 200 bars interacts intensively with the contaminated material, cleaning the particles of stubborn dirt and breaking up the agglomerates.

Hydro Clean offers substantial water and energy savings

GLOBAL PLATINUM Focus on Southern Africa 5th & 6th June 2012 | Turbine Hall, The Forum, Johannesburg, South Africa

Attending Global Platinum 2012 is the perfect opportunity for you to review Platinum operations and markets with PGM producers, fabricators, consumers; industry analysts, traders, investment and financiers, government and industry suppliers worldwide.

Speakers include: Chris Sturgess, Director: Commodity Derivatives, Johannesburg Stock Exchange Peter Duncan, General Manager, Market Research, Johnson Matthey Filipe Da Lomba, Senior Market Research Analyst, Anglo Platinum John Lewins, Managing Director, Platinum Australia Limited Bongani Mbindwane, Chief Executive Officer, Platfields Limited Nigel Trevarthen, Deputy Chief Executive Officer, Sylvania Resources And many more...

KEY TOPICS THAT WILL BE EXPLORED AT THIS CRUCIAL EVENT INCLUDE: 쐍 The global supply-demand outlook for Platinum

쐍 A critical look at derivative products available to the

Group Metals (PGMs) in Southern Africa

platinum industry and the opportunities for managing price risk – Will the market move from OTC to on exchange?

쐍 The future of the platinum market 쐍 Platinum as a mineral resource in Southern Africa: Understanding current global demand and meeting supply

쐍 Developing a future for PGMs in Southern Africa: The Platinum Group Metals Development Fund

쐍 Examining the Kell process for the recovery of PGMs

쐍 Determining the impact of safety stoppages on platinum development

쐍 The role and the impact of the decline/growth of the platinum industry on platinum mine workers in Southern Africa

Media Partners:

To register:

www.immevents.com/globalplatinum Email: info@informa.com.au | Phone: +61 (0) 2 9080 4307

Project delivery Horne chairs Mongolian mine

Palabora’s fabulous forklifts

Levelok power pack

venture between Ivanhoe Mines, Horne Conveyance Safety, the Rio Tinto and the government of Canadian subsidiary of the Mongolia. Commercial producHorne Group, has installed tion is scheduled to begin in the Levelok chairing and first half of 2013. emergency braking The Horne Levelok systems on a cage system was chosen earmarked for Ivanhoe because it provides Mines’ Oyu Tolgoi Shaft controlled deceleraNumber One in Mongolia. tion when operating on The cage will be used Levelok clamp the steel shaft guides to lower personnel and being used on this project. Addiequipment down the shaft and tionally, Mongolian mining regubring them back to surface. lations require an emergency Horne’s order was braking system that can arrest manufactured by the group’s the fall of a mine cage carrying Johannesburg factory in just personnel under conditions of six weeks and shipped to rope failure. North America for supervised Levelok satisfies both stipulainstallation on the Canadiantions and further provides a manufactured mine cage. chairing function to overcome Oyu Tolgoi is an opencast and the challenge of stretch in the underground project in Mongowinder rope when heavy materilia’s south Gobi desert. The site als are loaded. is being developed as a joint

Criterion Equipment, exclusive distributors in Southern Africa for TCM forklifts and reach trucks, supplied Palabora Mining Company (PMC) with a range of robust equipment, designed to cope with demanding materials handling tasks on the mines. “These forklift trucks, which are used by PMC to lift, carry and position raw materials and end products, have been modified by Criterion Equipment to meet exact handling requirements at the mine,” says Brenton Kemp, MD of Criterion Equipment, a whollyowned subsidiary of Invicta Holdings. “These special modifications include TCM’s AMS 2000 management system – with a driver identification tag and bump sensor alert. A lock-out switch cuts off all power supplies, which is an important safety feature if people are working on the machine. Other modifications include a jumpstart receptacle and anti-corrosion paint for enhanced protection in arduous conditions. Other special features include an epoxy seal on electrical connections for greater protection, belly plates, safety doors and light emitting diode (LED) lights.” These machines can be fitted with various attachments for different tasks, including rotating clamps, tyre handlers, fork extension sleeves, hinged and long forks, as well as load grabs.

LexisNexis Compliance Solutions LexisNexis Compliance is a leading provider of occupational risk and compliance solutions. We specialise in key areas of Health, Safety, Environmental Management and Occupational Hygiene to ensure your organisation remains compliant and up-to-date with changing legislation.

LEXISNEXIS COMPLIANCE Training

Consulting

Auditing

Software

Publications

LexisNexis Compliance offers training in over 80 Safety, Health, Environmental and Occupational Hygiene courses. All courses are developed and presented by subject matter experts and designed according to occupational risk management principles National & Internationally accredited courses (HWSETA, NEBOSH & RABQSA).

Our leading experts consult on the vast array of safety, hygiene, environment, risk and quality disciplines. Our services include hazard identiﬁcation and risk assessment, solution development, solution implementation, training and review of post business process.

LexisNexis Compliance provides Legal Compliance, EMS, SMS & QMS Auditing. Our team of certiﬁed auditors will establish your organisation’s risk proﬁle and identify appropriate and cost effective remedies to ensure compliance with the OHS Act, MHS Act, OHSAS or ISO Standards.

LexisNexis Compliance provides companies of all sizes with a range of software solutions to assist with auditing (including mobile applications), inspecting, management of legal registers and systems management.

LexisNexis is the leading provider of regulatory content in print, CD and online formats. We also offer a range of books and posters written by subject matter experts that help explain, understand and ensure compliance to the OHS Act, MHS Act and other legislation.

Certifying We are accredited to certify ISO 9001, 14 001, OHSAS 18 001 and integrated management systems.

Hygiene LexisNexis Compliance provides independent occupational hygiene services to assist in the identiﬁcation, evaluation and control of potential health risks in your organisation. We are an Approved Inspection Authority (AIA) in terms of occupational hygiene with a state of the art laboratory.

LexisNexis Compliance Ground Floor, Building 9, Bentley Ofﬁce Park, Cnr Rivonia and Wessel Roads, Rivonia

I Compliance

+27 (0) 11 525 9400

www.lncompliance.co.za compliance@lexisnexis.co.za CT007/12

Image: Anglo Platinum

is a top international site with breaking news, company and product listings, and events for the mining industry. Get up to the minute news from the international mining industry Find updated company information and search product and service listings Search and submit mining events Share your views and opinions through the blog section and by commenting on articles Post videos, photos and podcasts Network with mining professionals.

JOB MARKET

Are you looking for a job or searching for an employee? Than the miningne.ws Job Market is for you. The Job Market will give you the opportunity to: Upload a CV for free &UHDWH D SURÀOH Search for jobs and potential employees Keep up to date on positions offered by mining companies from all over the world.

THE

Visit miningne.ws today

NEWSLETTER BRINGS YOU ALL THE

TO SUBSCRIBE glen@3smedia.co.za TO ADVERTISE stacey.glad@lantic.net FOR EDITORIAL ENQUIRIES tersia@3smedia.co.za