www.miningne.ws
af r ic an u pdates on th e
g ro un d a n d un d e rg ro un d
Decision Inc.
CEO, Nick Bell on transforming the knowledge economy
Kamoa Copper Mine
Exploring high-grade copper deposit
New Luika Mine
New developments under way
ISSN 1999-8872 • R50.00 (incl. VAT) • Vol. 09 • No. 05 • May 2016
Alcohol & Drug abuse Curbing bad habits
contents
DRILLING UNDER THE INFLUENCE 10
30
Similar to any working environment, alcohol or substance dependence in the mining industry has a significant effect on an employee’s ability to contribute to the company’s success and the safety of employees.
14 Editor’s Comment
Open-pit mining & contracting
03 Opportunities in Africa
20 Measuring effective competitiveness
Cover Story
21 Powerful lights for powerful machines
04 Transforming the knowledge economy
Mechanised machinery
Africa Round-up
22 Remanufacturing vs refurbishing
06 News from around the continent
gears, motors & Transmissions
Economics, Finance & Risk
25 Importance of maintenance
08 Saving grace for steel industry?
27 Quality motors save costs
Focus on Africa | Tanzania
SHEQ
10 New developments for Tanzanian mine
28 Drilling under the influence
Commodity | Copper
Transport & logistics
13 Accelerating rapid expansion
30 Dos and don’ts of transporting
Earthmoving equipment
heavy equipment
14 Extending machine life
Events
17 Hitting the haul road
32 50 000 mining opportunities in Africa
@mining_news www.facebook.com/pages/ Mining-News
Endorsed by
ON THE COVER p4
Decision Inc. says the information environment has gone through a significant change over the last few years. The volume and availability of information are changing as the information economy reaches into all industries, not just into consumer-led ones. In sid e M in in g 0 5 | 2016
1
yats
i
I
n
Inyatsi Construction Group Holdings
“Leaders in Construction.” Dams and Reservoirs I Roads and Earth Works I Storm Water Drainage I Building Works | Bridge Construction I Water Reticulation I Water Treatment I Sewer Works I Civil Works 3rd Floor Inyatsi House, Plot 760.Dr David Hynd Road, Trelawny Park Tel:(+268) 2508 1000/10 Fax: (+268) 25081802
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@Inyatsi
editor's comment
Publisher Elizabeth Shorten Editor Mientjie Kleinhans Assistant editor Mpinane Senkhane Head of design Beren Bauermeister Design Consultant Frederick Danton Chief sub-editor Tristan Snijders Sub-editor Morgan Carter Contributor Karen Roets Client services & production manager Antois-Leigh Botma Production coordinator Jacqueline Modise Marketing & digital manager Philip Rosenberg Financial manager Andrew Lobban Administration Tonya Hebenton
Opportunities in Africa
T
here are 50 000 mining opportunities in Africa, according to announcements at the recent BreakBulk Conference held in Johannesburg. Could the realisation of all these opportunities turn around the fortunes of Africa’s indigent communities?
The reality, of course, is that not all these mining opportunities would necessarily
Distribution manager Nomsa Masina
be taken up by African people. But, surely the local communities would, or rather
Distribution coordinator Asha Pursotham
should, benefit from these opportunities?
Printers United Litho Johannesburg Tel: +27 (0)11 402 0571 ___________________________________ Advertising Sales
Annemarie Prins Tel: +27 (0)11 233 2600 annemarie@3smedia.co.za ___________________________________ No. 9 3rd Avenue, Rivonia 2191 PO Box 92026, Norwood 2117 Tel: +27 (0)11 233 2600
The question that comes to mind is: what would the impact be on the economics of African countries, and possibly the world? Will it be possible to save the numerous Africans suffering from poverty and starvation? Interestingly, potash, used in fertiliser and hence food production in the agricultural sector, is reckoned to be the new commodity. One of the countries with significant potash deposits is Ethiopia. It will be interesting to see if a full circle will take place, with people being fed by the same commodity utilised to produce food. Other interesting African figures and challenges in the mining industry were also discussed at the conference, such as the language issue. While 28 countries speak
Fax: +27 (0)11 234 7274/5
English, 26 French and six speak Portuguese, the most spoken language in Africa
www.3smedia.co.za ___________________________________
more about this on page 32.
is Swahili. This presents an interesting linguistic obstacle course, and you can read
Annual subscription:
Looking at specific mines, one of Tanzania’s gold mines, New Luika Mine, is doing
South Africa: R550.00
well and will be extending operations underground early next year. To ensure that
(incl vat & postage)
the mine has reliable power, a power plant will be installed. The new heavy-fuel-oil
African countries: US$80 Foreign: US$100 Email: subs@3smedia.co.za ISSN 1999-8872 Inside Mining Copyright 2016. All rights reserved. ___________________________________ All material in Inside Mining is copyright
engines will replace the current converted engines and save the mine significant costs. More about this on page 10. The Lily Mine tragedy at the beginning of the year placed much emphasis on safety again. Safety in mines is not only about wearing protective gear, it is, more importantly, about being vigilant in every aspect of mining. Most incidents are preventable and, in many cases, a small action can often save lives. Things we
protected and may not be reproduced either
don’t always think about are fatigue or hangovers. Unfortunately, hangovers are a
in whole or in part without the prior written
reality in mines, and beyond, but are not necessarily easily detected. Read about
permission of the publisher. The views of
this interesting topic on page 28.
contributors do not necessarily reflect those of the publishers.
Another prime feature in this edition covers earthmoving equipment. We take a look at new equipment, whether to extend the life of a machine, and discuss the differences between and benefits of remanufacturing or refurbishing equipment. Our varied read this month is sure to have something of interest for everyone. And don’t forget to visit
To our avid readers, be sure to sign up and get the latest updates and inside scoops from the mining industry. Check out what we are talking about on our website and Facebook page, or follow us on Twitter and have your say.
MiningNe.ws online for daily news about the mining industry.
Mientjie Kleinhans
follow the link @mining_news www.facebook.com/pages/ Mining-News
www.miningne.ws/category/events www.miningne.ws/category/news
Erratum Inside Mining apologises for publishing a picture of Kim Schoepflin, on page 15 in the April 2016 issue, captioning her as managing director of MBE Minerals. She is, in fact, managing director of Joest Kwatani.
In sid e M in in g 0 5 | 2016
3
cover story
Transforming the knowledge economy In a time of such economic and political uncertainty, many companies are seeing change as a threat to their businesses and their ongoing sustainability. Factors such as globalisation, competition and the speed of change further support the uncertainty felt both locally and worldwide.
A
ll businesses and industries
changing as the information economy
looks at the provision of information and
are currently in a state of flux.
reaches into all industries, not just into
systems not just as a function of IT, but
It is how one adapts to that
consumer-led ones. Real strategic suc-
as an enabler of strategic direction. This
change that will determine
cess will not only be achieved by adapt-
needs to follow an approach that is led
success, according to Nick Bell, CEO,
ing the business’ strategy to remain
by the executive team with clear un-
Decision Inc. “The factors impacting
relevant, but the ability of the business to
derstanding provided to all information
mining are even stronger than in some
change in order to suite this concept of
users as to how they fit into the broader
other industries, forcing a review in
the new normal is equally as important.
strategy, with a focus on enabling them
many organisations of how they op-
A significant strategic lever to support
to execute more effectively.
erate. In many cases, this question is
this concept is the fact that informa-
not just about ongoing sustainability,
tion available to the organisation has
Measuring and understanding
but survival.”
grown exponentially over the last few
Further to this, measuring and under-
years. The technologies available on the
standing how people engage with infor-
ronment has gone through a significant
market are also moving at a significant
mation and looking at what needs to be
change over the last few years. The
speed in highly competitive environ-
done to make the worker more effective
volume and availability of information is
ments. As a result,
At the same time, the information envi-
the customer can be comforted in knowing that many companies are investing millions in pushing the technology landscape further. Bell adds: “When looking at our clients across all industries, those that have a strategy that values and invests in the business’s information
can have a significant effect on their
environment are the ones that con-
success. Analytics can provide invalu-
sistently deliver significant returns to their shareholders and are far more competitive than their peers. There is a need for all companies to change into decision-led organisations.” This concept of decision-led organisations centres around the idea that the business builds a framework that
able insight into how an organisation operates, providing clarity on how to cut costs or operate more efficiently. “Two mining and metals case studies come to mind,” says Bell. “With one of our clients, the need to understand and influence the financial impact of overtime and shift utilisation was a key output
“The belief that systems are standalone black boxes that cannot integrate is over.” Nick Bell, CEO, Decision Inc.
4
Ins i de Mi ni ng 0 5 | 2 0 1 6
cover story
that produced an ROI of 100 times in two
and as a marketing exercise, making it
they start to offer the ability for clients
years. The question needs to be asked:
not relevant in the B2B environment and
to implement best of breed solutions
while running operations at below max-
mining. It is, however, far broader and
that are fit for specific purpose, as
imum capacity, why does the organisa-
can have a significant impact on any
opposed to buying solutions and only
tion find it very difficult to keep overtime
business’s ability to execute.”
using 30% of the features.
within the boundaries of the budget?
In understanding digital transforma-
“Further to this, why were they not
tion, one only needs to look at how to
Significant impact
succeeding at reducing the variable
engage with information in our personal
“Digital transformation has changed
cost of overtime when scaling back
lives. Those that run and cycle will know
how users consume and engage
production? A significant safety risk
that apps on the market provide instant
information. The concept of a pro-
effect was also identified. Often the
feedback on performance, allow one to
cess-based solution with no intelli-
same people are used for overtime, and
benchmark against others, set goals and
gence attached to it will not survive
are generally utilised over legal limits. In
track history. It also seamlessly integrates
for much longer, as providers need
a reduced-capacity environment, this
in the background with a number of oth-
to understand how their users use
seems counterproductive,” says Bell.
er reward and collaboration apps. A user
the information.
“In a further example, another client needed to simplify the often very com-
can even give access to others to track, in real time, how they are performing.
The belief that systems are standalone black boxes that cannot inte-
Applying this concept into a business
grate is over. Systems need to be open
utilising vendors across a number of op-
world is often seen as difficult and com-
to talking to one another freely so that
erations. Procurement spend is generally
plicated for the organisation, due to
users can choose what they do with
significant and, for some clients, even
factors such as technology maturity, lo-
the information,” explains Bell.
a reduction of 2% can have a massive
cation of services, maturity of users and
“The changes are hugely exciting
impact on the bottom line. Presenting
availability of capex. Practical examples
and will have a significant impact on
them with a great understanding of, for
in the context of the mining industry in-
companies into the future. Our phi-
example, vendor performance, com-
clude the way the company engages
losophy of ‘Run better, grow faster,
modity pricing and delivery reliability
with staff. There are opportunities for
change what you do’ is a key driving
gave them a greater understanding of
mobile apps to provide users with the
factor to how we approach clients. By
how to improve and build a stronger
ability to manage workflow processes on
understanding the need for change in
contract-based procurement practice.
their phone, anywhere, anytime. Mobile
organisations, as well as by delivering
In addition, the process of contract
analytics applications that provide infor-
solutions that support real outcomes,
compliance produced further returns, as
mation to users, based on their location,
Decision Inc. is able to be a key advisor
they could now ensure that – across all
about performance of a location on
Examples of the dashboard screens
contracts – price, quantity and reliability
a mine site, combined with predictive
could be actively managed and influ-
technology, can inform, based on leave
in supporting companies’ goals and
enced,” adds Bell.
patterns, what the likelihood of produc-
ambitions for the future.”
plicated process of managing and
Digital transformation Another exciting opportunity that is gen-
tivity and overtime will be, based on staff’s historic behaviour. “Solution advisors understand that there
Decision Inc. is a leading African information advisory and execution organisation. With expertise across a number
erating traction across industries is the
is a constant battle for available capex,”
of industries and particular focus on the
concept of digital transformation. This
says Bell. “Therefore, solutions need to be
mining and heavy industries, Decision
is often seen as more relevant in a con-
able to work in an environment where
Inc. provides clients with strategic exe-
sumer-led industry, but it also presents
capex is not possible, and need to adapt
cution services and support.
opportunities to heavy industry environ-
to a model to suit the client, rather than
ments as well.
for the client to change.”
“People generally see digital transformation as a way to sell more to clients
This concept is gaining attention from all technology vendors and suppliers as
+27 (0)11 025 2300 • www.decisioninc.co.za
In sid e M in in g 0 5 1 | 2016
5
Mining news
from around the continent
Ghana
AngloGold says illegal miners control richest deposits at Obuasi
Rwanda and Uganda are also home
has seen its population fall 77% over
to the more famous mountain gorilla,
the past two decades, a trend linked
which is also extremely endangered.
to illegal mining for coltan, a key
Gorillas are threatened throughout
AngloGold Ashanti said illegal min-
mineral used in the production of cell
their range in Africa’s tropical forests
ers have taken control of areas at its
phones and electronics, a new report
and are among humanity’s closest
Obuasi mine in Ghana that hold the
has found.
living relatives, along with the other
richest deposits of gold, slowing efforts to redevelop the facility. The Johannesburg-based company
Grauer’s gorilla, the planet’s biggest primate, which can weigh up to 180 kg, is found in the eastern DRC,
may consider its options as an inves-
where minerals have been plundered
tor if the illegal takeover continues ,
for decades under the smokescreen of
Eric Asubonteng, general manager,
conflict and instability.
Obuasi, recently told reporters in the capital, Accra. The company fears “serious and
A report this week, by the Wildlife
great apes, chimpanzees, bonobos and orangutans.
Lesotho
Liqhobong construction nears completion AIM-quoted diamond development
Conservation Society (WCS) and Fau-
company Firestone Diamonds has an-
na & Flora International, found that its
nounced an update for the Liqhobong
lasting consequences if this situation
numbers had fallen to 3 800 from an
Diamond Mine, which is owned 75% by
is allowed to continue,” he said. “If
estimated 17 000 in 1995.
Firestone and 25% by the government
this becomes continuous, Anglo-
“One of the primary causes of the
of Lesotho.
Gold, as an investor, will consider
decline in Grauer’s gorilla numbers has
other options.”
been the expansion in artisanal mining
project was 72% complete and in line
for coltan and other minerals. Most of
with the revised construction schedule.
these artisanal mining sites are remote,
The project also remains within the
Illegal mining in the DRC is growing
Anglo Gold's Obuasi sulfide treatment plant
Hundreds of men invaded Obuasi,
which means that the miners often turn
once one of the world’s largest gold
to local wildlife for food,” the organisa-
mines, in February, demanding access
tions said in a statement.
to unused portions of the mine to dig
“Although protected by law, gorillas
As at the end of March 2016, the
original $185.4 million budget. As at 31 March 2016, R1.5 billion ($129.9 million)
for the metal illegally. The violence left
are highly prized as bushmeat due
or 70% had been spent on the project
one person dead. AngloGold ended
to their large size and because they
against the revised capital budget of
underground mining at Obuasi and
are easily tracked and killed, as they
R2.1 billion.
fired workers in 2014 as costs surged
move in groups on the ground in their
and the price of gold dropped. The
small home ranges,” the groups said in
in earnest during the quarter ending
company is seeking a partner to rede-
the statement.
31 March 2016. Activities were helped
velop the mine. Talks with Randgold Resources fell apart in December.
Democratic Republic of the Congo
Illegal mining hits Congo gorilla population
6
The world’s largest gorilla subspecies
Ins i de Mi ni ng 0 5 | 2 0 1 6
The report says three areas are now
Construction at Liqhobong continued
by the granting of further work permits
key to the survival of the subspecies –
by the government of Lesotho and
Kahuzi-Biega National Park, near the
the favourable weather conditions
Rwandan border, the adjacent Punia
experienced at site in recent months.
Gorilla Reserve, and the Usala Forest,
Firestone said it continues its water stor-
which is remote but unprotected.
age activities and now has in excess of
The eastern DRC and neighbouring
500 000 m3 of water on-site, sufficient
Extended Guarantees
Liqhobong in landlocked Lesotho
on WEG Products
for the first year of production, thus derisking the project further by mitigating one of the critical early start-up risks. As previously announced, all significant civils and earthworks have now been completed and, in De-
Extending product guarantees is aligned with Zest WEG Group’s strategy of forming long term partnerships with customers, and allows you absolute peace of mind.
cember 2015, the site was handed over to the structural, mechanical, plate and pipework contractors for the erection of the main plant, the company indicated in a statement. As a result, a number of project areas have since been completed or are over 98% complete, including the RSF starter wall, the design, engineering and procurement elements alongside the structural steel fabrication. Firestone said, as expected, the detailed mine planning continues to be refined and reviewed as the project progresses towards production. Operational readiness, led by the project team, is
Please contact your nearest sales office for further details.
well under way and the team’s main focus during this quarter was contract placement and staff recruitment. Throughout Liqhobong’s development,
Tel: +27 11 723 6000 www.zestweg.com
Firestone said it has enforced a rigorous safety policy and has continued to maintain its lost-time injury-free record, with approximately 2.2 million man hours worked as at the end of March 2016. “Firestone has achieved another strong quarter of progress at Liqhobong, which, as at 31 March 2016, was 72% complete and on track for initial production in Q4 2016.
Inside Mining 05 | 2016
7
Economics, finance & risk
Saving grace for the steel industry? Is the government import tariff bail-out for the domestic steel industry a saving grace? Or is it distorting the workings of a free market pricing mechanism? Karen Roets* (left), discusses these questions.
T
he domestic steel industry is
Trade Administration Council of South
ultimate aim of supporting the interests
facing what is arguably the worst
Africa (Itac).
of downstream sectors.
crisis it has seen in South Africa.
The question arises whether this form
Proposed pricing committee
of intervention is the most appropriate
primary steel sector have been beset
Minister of Trade and Industry Rob
in the circumstances, considering the
by financial woes, with Evraz Highveld
Davies recently revealed details of a
end-to-end interests in the entire steel
Steel & Vanadium wallowing in business
proposed pricing committee or task
value chain and whether it will achieve
rescue and considering closing its oper-
team that would monitor ArcelorMit-
the objective of raising the industry back
ations, while ArcelorMittal South Africa
tal SA’s implementation of the pricing
to its feet.
reported a loss in 2015 in excess of 50
principles agreed upon with the state.
The three major producers in the
Tariffs
times its 2014 loss. The primary reasons
A tariff is, in its nature, a
for the crippling con-
form of taxation, which is
ditions in which local
ultimately passed on to
steel producers are
consumers, making the
operating can be
imported goods more ex-
attributed to reduced
pensive. The utilisation of
consumption of steel
tariffs for a limited time is
in China and the re-
likely to achieve the desired outcome of protecting the
sulting in lower global demand, a serious over supply of steel in the market due to the global recession, excess installed capacity and an increase of cheap steel imports from China into
This move was
South Africa.
necessitated, ac-
That an intervention is required to res-
8
cording to Minister
Intervention in the domestic steel industry through price regulation is necessary
domestic steel market by allowing locally produced steel products to better compete with imported products. However, a prolonged tariff regime may drive out or substantially reduce imports.
cue this ailing industry is evident. Recent
Davies, to ensure that
reports confirming that government and
ArcelorMittal SA adheres to
the steel industry are close to finalising a
its undertaking not to increase
package of measures designed to pre-
domestic steel prices if government
cal to strike a fine balance between the
serve the future of the embattled primary
imposes import tariff duties on cheap
measures required to protect the prima-
steel sector have been welcomed and
Chinese steel imports. Notwithstanding
ry steel industry and those required to
are seen as critical to the survival of steel
this undertaking, ArcelorMittal SA forged
safeguard the downstream consumers
producers in South Africa. The primary
ahead with an increase in the price of
of steel products, while preserving jobs
feature of the rescue package involves
domestic steel in February this year. The
at both ends of the value chain. Price
an import tariff of 10% to be imposed on
objectives of the pricing committee/task
regulation at a primary steel producer
a number of steel products. This 10% duty
team would be to ensure that future
level may lead to downstream users of
(which is in line with World Trade Organi-
price increases will be based on prin-
steel no longer remaining competitive
zation requirements) has been approved
ciples/pricing mechanisms agreed to
due to inflated steel input costs. Job loss-
on three products, with a further eight be-
alongside government and monitored
es in the downstream sector will be al-
ing considered by the International
through the pricing committee, with the
most inevitable in these circumstances.
Ins i de Mi n i n g 0 5 | 2 0 1 6
In regulating prices in the steel industry, it is, therefore, criti-
Economics, finance & risk The intervention in the domestic steel
intervention through price regulation is
It is clear from the above that the
industry through price regulation is,
not sustainable and these measures by
measures are aimed at stimulating and
therefore, necessary and justified in the
government to protect local industries
growing demand for local steel, with
current economic climate, provided
should be combined with further objec-
government playing a critical role in
the price set for locally produced steel
tives aimed at improving the operational
this process, particularly as a potentially
is fair. It is not clear in the local South
parameters of companies operating in a
significant consumer of steel products.
African market what constitutes a fair
particular sector, by identifying ways of
The positive effects of growth in the steel
price, with different perceptions from
saving costs, improving productivity and
industry will result in a more sustainable
government, labour and the industry.
generally seeking growth opportunities.
industry, reducing the need for artificial
It is arguable, however, that the price
For steel producers in South Africa, a
price regulation and, thereby, enabling
should bear a reasonable relation to
combination of such measures will en-
market factors to determine the price at
the economic value of the product.
able them to become competitive, so
which locally produced steel should be
Import price parity should not be used
that the pricing of locally produced steel
sold. This will benefit local consumers of
as the only benchmark for determin-
products can ultimately be determined
steel products as well as encourage the
ing a fair price. Price regulation should
through normal market conditions and
export of locally produced steel at more
achieve a fair price that does not distort
would not be reliant on government in-
competitive margins.
market fundamentals.
tervention such as price regulation.
While the proposed import tariff will
Outcome needed
Some of the additional measures that
bring a temporary reprieve to the local
have been proposed by the steel indus-
steel industry, in the absence of an inte-
Ultimately, the objective of government
try in South Africa, as part of the govern-
grated solution incorporating a range
intervention, whether through price
ment bailout package, include:
of measures in which government works
regulation, subsidies or quotas into an
• the designation of steel for government
closely with all stakeholders in the steel
industry, must be to enable the industry to become and remain competitive and identify ways to adapt to changing market conditions in order to keep business profitable. Mere reliance on government
infrastructure expense • urgent roll-out of the state’s strategic
industry, the industry is likely to remain on its knees for some time to come.
integrated infrastructure projects • transparency in capital expenditure programmes of state-owned entities.
*Karen Roets is a consultant at Baker & McKenzie’s Corporate/M&A Practice.
In sid e M in in g 0 5 | 2016
9
Focus on Africa | Tanzania
New developments for Tanzanian mine Amid the negative news that often abounds within the mining industry, it’s always heartening to hear about new developments at mines across Africa. One such a mine is Shanta Gold’s New Luika Gold Mine in Tanzania, which has started underground development and will be implementing a new power plant on-site.
T
he new improvement will see
engines could offer. These two elements
the current converted diesel en-
make for about a 20% saving all round.
gines replaced by a heavy fuel
“Apart from replacing the diesel en-
oil (HFO) power plant. Using HFO
gines for cost-saving purposes, the
results in much lower operation costs,
mine is developing its underground
with savings of roughly 40%. Once the
operation. By going underground, we
converted diesel engines came to the
require double the amount of power we
end of their operational lifespan, man-
currently consume. That is another rea-
agement decided to replace them with
son for acquiring the new power plant,”
a 7.5 MW power station.
explains Bradbury.
“We selected HFO engines that are
Purpose-built HFO engines are com-
designed to run on HGO (heavy gas
mon in Tanzania – both engines and
oil), as opposed to the diesel engines
alternators – and are not new technol-
that were converted. HFO engines run
ogy at all. Bradbury says that the mine
at a much lower speed, have far slower
is completely off-grid but does make use
wear rates and can last many years
of Taneso’s (Tanzania’s national power
longer than diesel engines,” says Toby
provider) power as a backup for non-
Bradbury, CEO, Shanta Gold.
essential items. “We use Tanesco only
He adds that the savings in terms of fuel
as a backup because their supply is not
supply is roughly 40% less than for diesel
reliable and we cannot afford to have
and the capex can be spread over
power outages that crash our plant.”
a longer service life than what diesel
He adds that the mine will be able to supply Tanesco with power from the mine’s new power station, which can be sold on to the community.
10
Ins i de Mi n i n g 0 5 1 | 2016
Focus on Africa | Tanzania
opposite The processing plant at New Luika Gold Mine in Tanzania right A new power plant will replace the current one to serve the processing plant and underground operations bottom right The New Luika Mine is situated in a forest reserve in Tanzania
Underground development Currently, the mine operates from two pits and is developing its underground operation because deposits are getting depleted from economical surface mining. The project started in September 2015 and the portal and decline take place through the course of this year
Community
and 2017 to find additional reserves to
The mine works very closely with the
been scheduled to come on stream as
extend the mine life by 7 to 10 years. The
communities and employs 40% of the
the open-pit ore production tails off. We
necessary exploration is needed to prove
workforce locally. The mine is part of the
are expecting to see a sustainable pro-
this is possible.
community. Bradbury shares that there
development have started in Q2 2016. “The underground ore production has
duction rate of around 84 000 ounces
The mine is exploring within its current
are four small villages close to the mine,
a year,” says Bradbury, adding that it is
mining licence, which includes eight
which Shanta Gold interacts with regular-
within the given guidance of between
deposits. “Historically, none of the de-
ly. “We cannot let them down. We have
82 000 and 87 000 ounces a year.
posits was actually drilled out with a
to ensure that there will be something
clear indication in terms of the reserve
else to sustain the community once the
not part of the initial mine plan. The fea-
deposit, where it starts and ends, from a
mine closes down. Something we are
sibility studies were done only last year.
strike or depth perspective.
working on, which is particularly impor-
The underground development was
The development of the incline shaft has
“Now, we are doing drilling work on
started and underground operations are
these deposits and we have drilled the
the business through responsible behav-
scheduled to start early 2017.
Elizabeth Hill deposit, where we can in-
iour, on behalf of the company.”
“We are the biggest gold mining oper-
tant, is maintaining the sustainability of
The mine is in a reserve, in a very fertile
crease the reserves from 5 000 to 28 000
ation in the Lupa Goldfield region, south-
ounces a year. This is a big step up,”
country. “We will restore the land as part
west Tanzania. It is a very prospective
enthuses Bradbury.
of the rehabilitation plan, so that five years
area, and we have high-grade deposits,
after the mine is finished, no one will see
“Five years at 84 000 ounces is a
but the nature of the gold deposits is small-
large portion of the resources we
that we have mined there. The current
er in scale, which doesn’t yield huge pro-
have declared, but we have 514 000
infrastructure and airstrip will be valuable
duction from the weight,” says Bradbury.
ounces of gold resources not yet built
and useful to the community after mine
into the mine plan. We are doing ex-
closure,” explains Bradbury. Shanta is also
ploration and detailed planning to
building a dam in the Luika River, which
The business is divided into operational
upgrade the status of the mine plan,”
will be a permanent piece of infrastructure
and exploration teams. Exploration will
explains Bradbury.
that will be left to community as well.
Exploration
Fast facts New Luika Gold Mine is the biggest mining operation in the Lupa Goldfield
Lupa Goldfield is the second largest goldfield in Tanzania, after Lake Victoria Goldfield
New Luika Gold Mine’s minerals processing plant consists of conventional, three-stage crushing, two mills, and a carbon-in-leach operation
In sid e M in in g 0 5 | 2016
11
2016 JUNIOR INDABA For explorers, developers and investors in junior mining
1 – 2 June 2016
Country Club Johannesburg, 1 Napier Road, Auckland Park Junior to mid-tier mining • Exploration • Investment • Africa - Strategic thinking and interactive conversation about the junior mining sector - An overview of diverse investment opportunities in key commodity sectors - Interaction between investors and project owners around Africa
SPEAKERS TO DATE INCLUDE: Bernard Swanepoel Neal Froneman, CEO, Sibanye Gold Peter Major, Mining Policy Consultant, Cadiz Corporate Solutions Niel Pretorius, CEO, DRD Gold Kevin Hodges, Mining Industry Champion, Industrial Development Corporation Rob Still, Chairman, Pangea Group Sacha Backes, Senior Investment Officer, Mining Investment Division-Africa, International Finance Corporation
James Campbell, CEO Rockwell Diamonds Andy Clay, Managing Director, Venmyn Deloitte Tony Harwood, President & CEO, Montero Mining Richard Linnell, Non-Executive Chairman, Acrux Resources Paul Miller, Mining and Resources Investment Banker, Nedbank Capital Mike Teke, Founder and Chairman, Masimong Group Sean Bennett, CEO, Elemental Minerals
+27 (0) 11 047 4680
Gold Sponsor:
registrations@resources4africa.com www.juniorindaba.com The 2016 Junior Indaba, for explorers, developers and investors in junior mining, is brought to you by Resources 4 Africa, the organisers of the Joburg Indaba. Please refer to website for continually updated speaker list and agenda developments.
Commodity | Copper
Accelerating rapid
expansion The world’s largest, undeveloped, high-grade copper deposit, at Ivanhoe Mines’ Kamoa project in the DRC, is being prepared to accelerate a planned infill drilling programme. This will take place in the Kakula Discovery area.
T
represent 400 m step-outs north and east from the high-grade copper intersected in drill hole DD942. This hole recorded 13.5 m of 4.15% copper at a 2% copper cut-off. “Mineralisation at Kakula appears to be consistent in nature with downward vertical zonation from chalcopyrite to bornite to chalcocite in every hole. Mineralisation is consistently bottom-loaded, with grades increasing downhole towards the contact between the host grand conglomerate and the underlying Mwashia sandstone,”
he goal of the exploration team
£44.3 billion of copper. The updated esti-
is to complete about 25 000 m of
mate included inferred mineral resourc-
explains Friedland. He adds that the highest copper
additional drilling and will initially
es of 185 million tonnes grading 2.08%,
grades are associated with a siltstone/
focus on a 12 km2 area where
containing £8.5 billion of copper.
sandstone unit and the base of an overlying diam-
two main drill holes took place last year.
Table 1 Unit Operating Costs
The DD996 and
ictite unit. These
US$/Lb Payable Copper
units overlie a less
Lom Avg
Years 1 To 5
Years 6 To 10
Mine Site
0.75
0.55
0.75
highest-grade and
Transport
0.41
0.43
0.40
highest-grade-thick-
Treatment & Refining Charges
0.18
0.18
0.18
the Mwashia
ness intersections
Royalties & Export Tax
0.15
0.11
0.16
sandstone
within the Kamoa
Total C1 Cash Cost
1.48
1.27
1.48
contact.
DD997 drill holes rang among the
Mining Licence
mineralised, thin, sandy-clast-rich diamictite above
“Our acceler-
area. This will be
ated infill drilling
a major extension
programme will
of the Kamoa
target thick, flat-ly-
copper project.
ing, shallow re-
At the beginning
sources at grades
of the year, the mine
materially higher
reported that the
than the average
Kamoa exploration
grades at Kamoa
team discovered the
that potentially
new tier-one, high-
could be incor-
grade, shallow and
porated into our
flat-lying stratiform
Phase One fea-
copper deposit,
sibility study. This
which is ideal for lowcost mechanised min-
could enhance
Box cut (portal) at Kamoa’s initial high-grade mining area, Kansoko Sud
ing due to its location.
the already robust economics that
Discovery
were reported in our independent pre-
tion of significant thickness, high grades
The exploration team discovered the
feasibility study earlier the year, and help
and strike length that holds promise for
following reserves:
to ensure that Kamoa becomes one of
the significant and rapid expansion of
• DD996 intersected 24.16 m of 3.48%
the highest-grade new copper mines in
“The Kakula Discovery has a combina-
the Kamoa copper deposit,” says Robert
copper, at a 1% copper cut-off. A
Friedland, executive chairman, Ivanhoe
higher cut-off of 2% copper, intersec-
Mines. He also says that the Kamoa copper deposit is already distinguished as
tion of 13.16 m of 5.26%. • DD97 intersected 18.75 m of 4.64%
the world,” concludes Friedland.
Timeline The mining licence was granted by the
the world’s largest, undeveloped, high-
copper at a 1% copper cut-off and
DRC government in 2012. Opening up
grade copper discovery.
15.17 m of 5.33% copper at a 2% cop-
of the box cut took place in 2014 and
per cut-off.
the underground mine should start op-
The indicated mineral resources at Kamoa total 752 million tonnes grading
The copper mineralisation was first
erating in early 2017. The life of mine is
2.67% copper. The deposit contains
identified in 2014 and the two drill holes
expected to be 30 years.
In sid e M in in g 0 5 | 2016
13
Earthmoving Equipment
Extending
machine life
Companies are working towards increasing production and cutting costs, all while trying to save the environment. Therefore, it is important to find a balance between working with new equipment and extending the life of old equipment for as long as possible. By Mientjie Kleinhans
A
lthough most people feel
can sweat the asset and derive maxi-
through a pre-shift check to make sure
that extending machine life
mum value right until the point when the
the lube, oil and tyre pressures are cor-
has only financial benefits,
maintenance and repair costs start to
rect, and that there are no loose nuts
it does have the added
negatively impact the cost per tonne.
or bolts.”
benefit of saving the environment and
Unfortunately, many operators attempt
He adds that it is important during
adding to sustainability. However, in the
to push the life extension too far, which
operation not to exceed the design ca-
current financial crunch, the financial
negatively impacts production, cost
pacity of a machine as this puts undue
concerns far outweigh other benefits.
per tonne and overall efficiency. So,
stress on components, causing fatigue
Llewellyn Rouw, product marketing
it’s best to develop a well-considered
and shortening the lifespan. Operators
manager, Bell Equipment, says that
strategy that weighs benefits and risks
should be well trained so that they oper-
there are no real benefits to extending
versus costs.”
ate equipment safely and within param-
the life of earthmoving equipment other
Through effective predictive and
eters to avoid machine damage.
than the financial implications associat-
preventative maintenance strategies,
ed with reduced ownership costs. “Ma-
it is possible to successfully extend the
Clean equipment
chine life is extended through having
life of equipment, according to Wal-
“Likewise keeping equipment as clean
high mechanical availability, which has
ly Parsons, senior product manager,
as possible can avoid damage to ma-
a direct influence on total cost of own-
Barloworld Equipment.
chine parts, which could necessitate
ership – a key factor in the Bell design philosophy,” he explains. Marc de Chalain, business development manager for Africa Joy Global, agrees and adds: “One
Rouw elaborates and says that com-
costly repairs. Once a machine has fin-
panies can extend the life of equipment
ished its first life, a company can choose
by adhering to the scheduled service
to extend the life of equipment through
plan and having a strict maintenance
refurbishment or remanufacturing,
plan in place. “Deal with wear and tear
should this prove to be economically
in good time, before it causes bigger
viable,” advises Rouw.
problems. Ensure that machines go
De Chalain feels that one of the best ways operators can ex-
“Deal with wear and tear in good time, before it causes bigger problems.” Llewellyn Rouw, Bell Equipment
14
Ins i de Mi n i n g 0 5 4 | 2016
tend equipment life is by managing and monitoring component hours and condition. This requires careful fleet management
Earthmoving Equipment to ensure that components are rebuilt or exchanged prior
of anticipated life, but this will be determined by factors
to failure.
such as the above, including adherence to stipulated OEM
“Should repair before failure not be achieved, the value in this strategy is often lost due to extended unplanned down-
maintenance schedules. Rouw says that a Bell ADT is expected to have a first life of
time and high repair costs. We offer a full range of preven-
between 12 000 to 15 000 hours, dependent on fuel quality, the
tive maintenance programs to ensure that critical compo-
application and adherence to scheduled maintenance. “Refur-
nents receive regular inspection, testing and maintenance,
bishing a machine would prolong the lifespan to around 22 000
while our condition-based monitoring evaluates compo-
hours and remanufacture would effectively give a machine a
nents based on usage and conditions,” says De Chalain.
second life of an additional 12 000 to 15 000 hours,” says Rouw.
Partnerships
Cost implications
More and more manufacturers and suppliers realise the
Extending the life of equipment has long-term cost implications.
value of solutions-driven programmes and initiatives to sup-
According to De Chalain, equipment life extension can result
port clients throughout the cycles of equipment by partner-
in reduced operational efficiency due to unplanned downtime
ing for longer periods. For instance, Barloworld Equipment
and potential parts availability challenges on older equipment.
has the Equipment Management Solutions programmes,
“The major cost risk is that the operational cost per tonne will
which offer a range of services, routine inspection, re-
reach a point where replacement becomes imperative.”
mote condition monitoring, and mechanical analysis and
Parsons argues that extending the life of a machine provides a good return on investment, assuming that predictive mainte-
reporting tools. Bell Equipment promotes the extension of equipment by
nance practices have been adopted from the onset to prevent
offering operator training and machine condition assess-
unnecessary expenditure. “At some point, a third rebuild may
ments. This is carried out, at no charge, at regular intervals on
no longer be economical as the machine’s availability may be-
any Bell machine by a product support technician, giving a
come too low to meet acceptable production targets.”
machine owner a clear picture of what attention a machine might require to keep it in top operating condition.
With regards to the life cycle of equipment over the physical life of the machine, it takes some time for the new machine
Bell also has Fleetm@tic, an automatic fleet management
to earn enough to cover the capital cost of its procurement,
tool, to monitor and assess machine conditions to ensure
otherwise known as economic life. “It then moves into a
that a machine is operating efficiently, safely and econom-
phase where the equipment earns more than it costs to own,
ically. The software also keeps track of the service schedule to alert the owner when a service is due. The service offering doesn’t stop there; for older machines, Bell has a full ReMan facility for major components and the company’s Used Division can refurbish complete machines or provide refurbished parts. De Chalain says that one of the best ways original equipment manufacturers (OEMs) can get involved is by partnering with service providers and supporting the collection, interpretation and remote management of equipment information. “We partner with customers through our JoySmart Solutions service offerings, which are packages aimed at driving specific value, such as extending equipment life. These service packages can include the remote monitoring of equipment for performance factors and operator performance, equipment management support such as oil sample analysis for trend analysis, and component condition monitoring. “We further engage directly with our customers and their equipment to assist with condition monitoring on-site. This ensures we collectively reduce and manage the risk of unplanned failures during the life extension. The more customers engage and embrace those processes and tools, the better the results,” says De Chalain.
Maximum yield It is impossible to quantify the exact maximum life that companies can expect to get out of equipment, as it is extremely specific to equipment type. De Chalain says that life expectancy is also significantly impacted by a number of factors, including severity of application, quality of on-site maintenance and operator skill. Parsons adds that the manufacturer provides an indication
Inside Mining 05 | 2016
15
Earthmoving Equipment operate, and maintain – i.e. its profit life – and finishes its life at a stage when the costs of its maintenance are greater than what it earns during the periods when it is in operation – this is the physical life. “By comparison, remanufacturing machines or components costs a fraction of a new machine and effectively
equipment is main-
“One can sweat the asset and derive maximum value right until the point where the maintenance and repair costs start to negatively impact the cost per tonne.”
tained well within the
Marc de Chalain, business development manager: Africa, Joy Global
gives a machine or component a second life. This will ensure the
profit life and earns maximum profit,” says Rouw.
De Chalain adds that, most commonly,
software or product changes, with the
the cost per tonne (including the capital
associated benefits. For example, a new
new equipment and extending the life
cost) will be the determinant used to
transmission could have an updated shift
of equipment, a mine would have to
identify the optimum time to replace.
pattern that has fuel burn advantages
work out the cost per hour of a new ma-
“This, however, is theoretical, as capital
and helps to extend the life of the trans-
chine and a machine with an extended
constraints, as we are seeing in this com-
mission,” explains Rouw.
life to calculate the most effective re-
modity cycle, often preclude mines from
placement period.
replacing equipment.”
To calculate the comparison between
“This would entail a complete life-cy-
that will not only address ageing control
cle costing of a machine by comparing
Benefits of new technology
the ownership and operating costs of
OEMs provide new technologies that
ment performance. “This performance
both options, factoring in the cost of
can often be retrofitted on older ma-
improvement often brings ageing
remanufacturing for older equipment
chines. Plus new components, being
equipment into the performance levels
as well as repair and maintenance,”
installed on older machines, feature the
of much newer equipment, without the
says Rouw.
latest research and development im-
high capital outlay associated with new
provements, according to Parsons.
equipment,” concludes De Chalain.
Parsons says that most machines are tracked from inception for maintenance
16
Joy Global regularly offers customers control system upgrades, for example,
Introducing products and services, such
componentry, but also improve equip-
Whether upgrading an older machine,
budgeting purposes. In the beginning, a
as Bell Fleetm@tic, on older equipment
remanufacturing or refurbishing, there
new machine will need very little done
can help extend machine life through
are various ways to extend the life of
to it but, as time goes by, predictable
improved fleet management, planned
equipment. The secret lies in knowing
wear will take place. “Mines can review
servicing and preventative maintenance
where the financial tipping point is. The
the cost of a machine over a set num-
as well as corrective operator training.
bottom line is that OEMs offer more solu-
ber of years and use these stats to deter-
“Similarly, introducing a remanufac-
tions-driven products than in the past,
mine the viability of a rebuild versus the
tured component to a machine would
and they are eager to assist companies
cost of buying a new machine.”
mean that the component has the latest
with possible solves.
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Earthmoving Equipment
Hitting the haul road Grading a haul road can be difficult, especially when all the variables are taken into consideration. Inside Mining looks at the factors at play and offers a solution to mines in grading haul roads.
H
maintaining good floor conditions in both areas will definitely lower tyre wear stemming from cuts and impact damage, and fuel burn costs,” Venter explains.
Tyres Tyres are a key expenditure item and
aul road economics start
“This is just one indication among a host
need to be preserved for as long as pos-
with the basics of maintaining
of other factors – such as gradients,
sible. However, despite this, it is estimated
the road so that mining trucks
drainage, super-elevated bends and
that more than 80% of earthmoving
can transport their loads with
road width – that need to be consid-
tyres fail well before their designed wear
as little hindrance as possible. A poorly
ered to ensure safe and cost-effective
life due to poor road maintenance, as
constructed and maintained haul road is
haulage,” says Johann Venter, group
well as negative operating practices,
not only a nuisance; it also contributes to
product and application manager,
such as overloading and under-inflating.
productivity loss.
Barloworld Equipment.
This will slow down the truck and rolling
Unless the bumps and dips in the road
“As a starting point, it’s important to
are filled and graded, over time, high
note that haul roads begin at the load-
rolling resistance will have a com-
ing face and end at the dump, and
resistance and increase temperatures. The temptation to overload places extra pressure on mechanical items, which
pound effect on lowering profita-
results in higher downstream mainte-
bility. If a light commercial vehicle
nance costs, and a major drop in
can travel smoothly at around
machine availability.
60 km/h on a mine haul road,
For off-highway trucks running
it is a good indication that the
radial-ply tyres, one would typ-
riding surface is well main-
ically expect a minimum rolling
tained. This is a good rule of
resistance of around 2% for a
thumb, speed limits permitting.
hard, well maintained haul road. “How-
All M-Series models come standard with the Articulation Returnto-Centre feature. This exclusive function automatically returns the machine to a straight frame position from any articulation angle
ever, for every percentage
In sid e M in in g 0 5 | 2016
17
Earthmoving Equipment The size of motor grader required will depend primarily on the width of the haul road, but will also be influenced by the road’s condition: a neglected road will require more intensive remedial action, and a larger grader to cut and grade final levels increase, the impact becomes dispropor-
minimises transmis-
tionately greater, resulting in a decrease
sion shifts, maintains
in production and a significant increase
a higher average
in working costs,” says Venter.
speed, and enables
Watering the road
more constant braking effort. Grades
As dust thrown up by continuous haulage
less than 10% are
reduces visibility and mobility, posing a
recommended for
safety hazard and environmental issues,
best fuel economy,
mines use water tankers to water the
maximum component and tyre life.
road. “As a guideline, the size of the wa-
unit combinations and
ter tanker should match the size of the
Curves
haul trucks,” Venter explains.
Computing the haul road width on hori-
All these factors need to be taken into
specific material densities.
zontal curves is a specialist area. For ex-
account in developing the ideal produc-
777, 90 tonne payload, units, then these
ample, a wider road is required on curves
tion model and fleet composition match-
should be supported by Cat 777 water
to account for the overhang occurring
es. “Saving a few seconds during truck
trucks. Tanker size will also depend on
at the front and rear of the machine, as
loading, for example, could translate into
factors such as the length of the haul
well as the lateral clearance between
two to three more additional cycles per
road and the number of fill points along
passing trucks. To avoid the risk of col-
shift. Over a year, this could pass on huge
the route.”
lisions on two-way sections, the design
savings,” says Venter.
“For example, if the mine is using Cat
Adding to that, Venter also advises that
should cater for worst-case scenarios with
Therefore, it is fundamental to use the
“spot” watering also works well for areas
approaching corners and crests clearly
best possible equipment. The size of the
with limited water supply; and for safe
visible at standard travel speeds.
motor grader required will depend pri-
travel, a checkerboard or intermittent
“On one-way straights and corners,
marily on the width of the haul road, but
spot pattern is recommended to reduce
a minimum of 2 to 2.5 truck widths is
will also be influenced by the road’s con-
the slippage risk during retarding on
recommended,” explains Venter. “For
dition. A neglected road will require more
downhill grades.
two-way traffic, this would increase to
intensive remedial action, and a larger
a minimum of 3 to 3.5 truck widths on
grader to cut and grade final levels.
“Also consider the downside of over-watering: washing out the fines
the straights, and a minimum of 3.5 to 4
will lower the cohesion properties of the
truck widths on the corners.”
road, accelerating deterioration and
On the earthmoving front, Caterpillar offers a wide range of motor graders for
The sight distance for horizontal and
the global as well as Southern African
causing potholes. The latter grow rapidly
vertical curves must be sufficient for a
markets. The previous-generation G and
if ignored and soft and wet spots will
machine to stop before reaching a haz-
H-Series graders, with conventional steer-
then need to be completely refilled and
ard or obstacle; and the distance from
ing and hydraulic control, have set the
compacted with good, dry material. Op-
the operator’s eye must equal or exceed
industry standard, and are now working
timally, the slope of the road should ad-
the required stopping distances.
alongside the current conventional K-Se-
equately carry away stormwater run-off,
“Each mine is different and an extra
ries line-up. The Cat 12K, 120K, 140K and
with evidence of minimal water entry into
width allowance should be made, where
160K model K-Series ranges from approxi-
the road sub-base,” adds Venter.
needed, to accommodate difficult driv-
mately 14 tonne to 15.2 tonne machines.
Adding to that, he advises keeping grades smooth and constant as this
Alongside the K-Series is Caterpillar’s
ing conditions,” adds Venter.
latest-generation M-Series, available in
Grading solution
seven different models. This series starts at
Further to that, other unique features at mines include multiple loading faces, different loading and hauling
an operating weight of 14.5 tonnes and extends to approximately 62.5 tonnes with the range-topping Cat 24M, currently the world’s largest grader in its class. The M-Series features joystick controls that replace the conventional steering wheel and hydraulic control levers that have been the norm previously. The joystick technology reduces hand and wrist movements by as much as 78% during an average shift. This makes
For reshaping haul roads, typical grader blade loads are about one-third to half of full capacity
18
Ins i de Mi n i n g 0 5 | 2 0 1 6
Earthmoving Equipment
Available in seven different models, the M-Series starts with the 120M (operating weight: 14.5 tonnes) and extends to the imposing 24M, shown here, with its operating weight of 62.5 tonnes. The Cat 24M is currently the world’s largest grader in its class the M-Series easier to operate without
frame position from any articulation
sacrificing control.
angle with the touch of a single but-
The left and right seat-mounted joy-
ton. Return-to-Centre helps improve
sticks, respectively, incorporate the base
productivity and safety by allowing the
eight hydraulic functions, plus steering,
operator to focus on properly setting up
transmission direction/speed control,
the mouldboard.
electronic throttle control, and differential
On the go, better material control gets
adjustments fast and simple, deliver-
lock/unlock control. On conventional
the job done faster, requires less power
ing more precise material control and
machines, mastering these functions
and saves fuel, while the machine’s elec-
smoother roadways, which, in turn, de-
requires an entire console of levers, a
tronically controlled power shift transmis-
pend on regular dust suppression.
transmission lever control, plus remotely
sion ensures smooth shifting and maximum
located switches, allowing diversity in the
power to the ground. During all opera-
Choosing a model
attention of the operator.
tions, on-board monitoring systems main-
Choosing the right grader model for the
tain a close watch on machine health.
right application takes a few considera-
“This joystick control pattern is extremely intuitive, and creates a direct relationship
The 120M through to 24M models pro-
tions. “For reshaping haul roads, typical
between the lean angle of the joystick
vide a broad range of extended blade
grader blade loads are about one-third
and the turning angle of the steer tyres,”
positions, which are particularly beneficial
to half of full capacity,” explains Venter.
explains Venter. A brake tensioning sys-
in mid-range bank sloping, ditch cutting
“However, where large hauling units
tem holds the joystick in position until the
and ditch cleaning. A long wheel base
travel on softer materials, heavier blade
operator moves it. In addition, the steer-
allows for an aggressive blade angle,
loads may be required in order to reshape
ing control automatically reduces steer-
permitting material to roll more freely,
the road surface. Many mines are also
ing sensitivity at higher ground speeds for
and reducing power requirements.
located in mountainous areas, requiring
Servicing time on the M-Series has also
haul roads with steep grades or where very
been decreased. For example, top-ac-
precise roadway elevations and slopes are
with the Articulation Return-to-Centre
cessible drawbar wear inserts and the
desired. These considerations will, in turn,
feature. This exclusive function automat-
shim-less mouldboard retention system
determine which grader model best suits
ically returns the machine to a straight
make drawbar, circle and mouldboard
the application,” concludes Venter.
comfortable and predictable control. All M-Series models come standard
In sid e M in in g 0 5 | 2016
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T
he bottom line of any business is
To determine the efficiency of surface
to make profit, and coal mines are
coal mines, the authors propose data
no different. In a technical paper
envelopment analysis (DEA). They further
proposing a new approach for
propose the application of a parametric
modelling competitiveness, the authors
method to develop models predicting the
look at current shortcomings and propose
productivity efficiency and effective pro-
a new method.
duction costs for new mines. “This method
An accurate tool or method to estimate
will be used to determine the frontier of ef-
and evaluate the cost of mining projects,
ficient mines among the operating mines
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coal mines. New mines need to ensure
multiple inputs and outputs of deci-
that estimates are accurate for a number
sion-making units (DMUs), which use similar
of reasons.
inputs and generate similar outputs in
In the technical paper, ‘A Proposed
figure 1 Summary of the development of the DEA models formulation
External variables
Resources characteristics and production variables Budeba, JW Joubert and RCW Web-
Data from existing mines
cost estimation for surface coal mines is. In the synopsis of the paper, the authors
Examples are given in the technical paper to
ber-Youngman explain how critical
illustrate the effectiveness of the method.
state that there is no single method of cost
Efficiency modelling
estimation, and the available methods
“The methodology for modelling involves
consider only limited variables, leaving out
the use of identified variables from dif-
multiple variables that could significantly
ferent sources in the literature. These
affect the estimation of mine costs.
variables will be categorised as external
The authors go into much detail about
variables, resource characteristic varia-
mine cost-estimation approaches, sta-
bles, and production variables. These will
tistical approaches, online approaches,
form the inputs and outputs in the stage
comparative approaches and itemised
of DEA formulations,” explain the authors
approaches. They discuss each of these
in the papers. “Data will be collected from coal-pro-
discuss examples of cost and produc-
ducing regions. The sources of data
tion-rate estimation problems.
include available mine databases,
Proposed approaches Apart from being profitable, new mines need to be competitive and this relies on
H/Office: Tel: (011) 306-0700 • Fax: (011) 918-7208 e-mail: Elb@elbquip.co.za Website: www.elbequipment.com Branches and Dealers throughout Southern Africa
the construction of an efficient frontier.
Of New Surface Coal Mines’, authors MD
approaches with examples. They also
Distribution and Product Support by:
The authors explain that DEA involves
ness, is in high demand by new surface
publically available annual reports, and technical papers published about coal mine costs and performance. “The efficient frontier will be comput-
being technically efficient and cost ef-
ed by applying the models developed
fective. “Measuring the relative efficiency
and data-sets collected. Each surface
of each mine helps to understand the
coal mine will be regarded as a DMU in
best-performing mines. New mines will
this research. The models for predicting
not survive in the current business environ-
production and effective costs of a new
ment unless they are competitive,” write
mine will be developed from existing
the authors.
efficient mines,” state the authors.
20
I n sid e M in in g 0 5 | 2 0 1 6
open-pit mining & contracting
Powerful lights for powerful machines
T
he visibility offered by the high-quality optics of the
lights supports the ma-
chines in maintaining high working efficiency during dark working hours and low-visibility environments while the lights them-
superior durabiliWhen clear visibility is needed in ty for equipment, harsh working environments, Trysome Auto even for the most Electrical has the solution in the form of demanding Nordic Lights®. These work lights are used in conditions. The company supplies the most difficult and demanding lighting solutions to many of working environments the world´s leading manufacall over the world. turers of heavy-duty machinery. It
selves need very little maintenance. The
is continuously improving performance
use of Nordic Lights® products ensures
while minimising the environmental im-
that darkness, vibration, shock, dust and
Finland, which designs and manufac-
pact of its operations and products. Uti-
humidity will not affect visibility when the
tures LED, HID (xenon) and halogen work
lising Six Sigma methodologies, the lights
results of the work and safety depend
lights for the heavy-duty, on-road and
are certified according to the ISO 9001
on effective lighting.
off-road industries as well as innovative
and ISO 14001 standards.
“The success of the light products is based on their durability. This is the
xenon driving lights. The product remains a pioneer in
number one criterion for our customers.
supplying light technology to heavy-du-
Hence, our slogan: ‘Lights for Heavy
ty equipment and provides optimal,
Duty’. All the products in the range go
sustainable lighting solutions with
+27 (0)11 823 5650 • www.trysome.co.za
through extensive test procedures before their release on the market,” says Craig Young, category manager, Trysome Auto Electrical. The light products aim to offer the right solution to each customer. “As a result, a large number of the manufactured products are tailor-made. Combinations of different light patterns,
LED work light recommendations for mining Illumination requirements for different heavy-duty applications and industry segments can, and do, vary dramatically. These recommendations are intended to provide guidance to assist in the selection of the most suitable Nordic Lights® LED work lamp range for your application. It is by no means comprehensive or limiting.
brackets, vibration dampeners and cable connections can be applied to optimise a light for different applications and a specific set of conditions,”
figure 1 Types of work lights filled on various heavy machines
explains Young.
Manufactured in Finland Nordic Lights® is a company based in
“Illumination requirements for different heavy-duty applications and industry segments can, and do, vary dramatically” Craig Young, category manager, Trysome Auto Electrical In sid e M in in g 0 5 | 2016
21
Mechanised Machinery
Remanufacturing Whether for financial reasons or to see out the completion of a contract, it is often necessary to extend the life of machinery. The question is: is it better to remanufacture or refurbish? Mientjie Kleinhans investigates the options.
T
here is a fine, yet distinct line
Human, marketing manager, Dura
and the state it’s in. “Some machines,
between remanufacture and
Equipment Sales. He adds that it is much
such as excavators, don’t need remanu-
refurbishment. Refurbishment en-
easier to refurbish a machine than to
facturing. The engines in these machines
tails the repair of a component
remanufacture, for obvious reasons.
hardly ever give major problems. But, it
on or at the affected area only and will
is still advisable to test the main compo-
only prolong or extend the life of that
a machine better. Unfortunately, we
component or machine, explains Meltus
do see it in the industry where people
Badenhorst, general manager: Group
repaint a machine and try to sell it off as
Pitfalls
Technical Services, Bell Equipment.
remanufactured,” warns Human.
The only pitfall to remanufacturing
He says that there is no set standard
nents of the machine first.”
equipment is the cost thereof, ac-
for refurbishment and it is not necessarily
Choosing wisely
done by an original equipment manu-
The option between refurbishing and re-
equipment, on the other hand, doesn’t
facturer (OEM). “By comparison, remanu-
manufacturing a machine depends on
carry the same peace of mind as
facture is the replacement of worn parts
a few points. According to Badenhorst,
remanufactured equipment.
to bring a major component or machine
the decision whether to refurbish or to re-
cording to Badenhorst. Refurbished
Human reckons that the biggest pitfall
back to the OEM’s original standards
manufacture is largely dependent on a
with remanufactured equipment is the
and specifications, so that the machine
customer’s business needs and cash flow
quality of the work, and whether OEM
or component can be ‘zero based’ and
availability. “For example, a customer
parts were used in the remanufacturing
given a second life. From a Bell perspec-
can decide to refurbish a Bell ADT and
process. “It is imperative to check the
tive, remanufacture is always carried out
essentially prolong the machine’s first life,
quality of the work done on the ma-
by an OEM, like ourselves.”
whereas remanufacture would effec-
chine, and also to test the machine first.”
tively give the machine a second life.”
He suggests looking out for the follow-
“A big problem in the industry is when people claim to have remanufactured
22
“A coat of paint alone doesn’t make
Willem du Randt, technical director,
ing points:
a machine, when, in fact, the machine
Dura Equipment Sales, believes that
• What guarantee is given on the work?
has only been refurbished,” says Ernest
much depends on the type of machine
• Are the replacement parts OEM parts?
Ins i de Mi n i n g 0 5 | 2 0 1 6
vs
Mechanised Machinery opposite page Two of the most popular machines used in Africa left Another machine that has been stripped to the bone in the remanufacturing process engines, transmissions, transfer cases, axles, differentials, suspension struts and hydraulic cylinders. Bell ReMan operates on the basis that the customer returns a failed component with a workable core. This is then exchanged with an off-theshelf, readily available, remanufactured replacement part for a fixed price. Bell ReMan components are rebuilt to Bell specifications using Bell-approved parts and carry the same warranty as new, genuine parts. At Dura Equipment Sales, a refurbished machine will carry a warranty of between 30 to 60 days, or 250 to 500 hours on a remanufactured machine. When the machines have been refurbished to OEM specifications, the warranty is between
refurbishing • Inspect the pins and bushes.
Service offering
• Listen for any weird sounds coming
three and six months, and 500 to 1 000 hours on remanufactured machines.
African market “We do find a lot of pre-owned equipment from the West in Africa because, in reality, equipment from North America and Europe doesn’t work the high duty cycles required from equipment in
Bell Equipment has a dedicated Used
mining countries like Australia and South
from the transmission or pumps.
Division that is able to offer used refur-
Africa,” explains Badenhorst.
A machine or component can be
bished parts to customers. “It could be
Equipment in these countries might be
remanufactured as many times as a
a case, for example, where a customer
owned for three years until the asset reg-
customer chooses until it falls out of the
buys a second-hand engine and he
ister has been depreciated to the point
OEM’s original standard and specifica-
only requests that the faults and leaks
where they feel they need to sell it. “A
tions, according to Badenhorst.
be repaired on the unit. The division
three- or four-year-old machine will have
Human suggests looking for metal
will complete these refurbishments and
a fairly low number of hours on it, so it
fatigue and how the machine was
send the engine for a dyno test to con-
is still generally in an acceptable con-
handled throughout its lifetime before making that decision. Du Randt adds
Equipment should be replaced when
“Refurbishment entails the repair of a component at the affected area only, while remanufacture is the replacement of worn parts to bring a major component or machine back to original OEM specs” Meltus Badenhorst, GM:
it is not economically viable to refurbish
Group Technical Services, Bell Equipment
that many 140G 1986 model graders are still operational in Africa due to their parts being freely available and the design simplicity.
Replacing equipment
or remanufacture. “There is always a market for used equipment and the re-
firm it is in running order. This component
dition to buy for Africa. Bell Equipment
furbishment or remanufacturing thereof
will be sold on a conditional warranty
has done trade-backs for customers
depends on the owner’s business needs
as agreed between the customer and
from North America and Europe where
and cash flow available. Certain parts
the company. The Bell Used Division also
it makes business sense to import these
or components are much more eco-
offers refurbishment of complete pre-
machines into South Africa and sell
nomical to replace with new ones, as
owned machines,” says Badenhorst.
them locally.”
the labour and risk involved outweigh
Bell also has a full ReMan facility, which
He adds that these machines present a
the small saving that refurbishment
offers remanufacturing of machines
good opportunity for start-up companies
or remanufacturing options offers,”
and major components that are eco-
that don’t yet have the capital and cash
says Badenhorst.
nomical to remanufacture including:
flow to buy new machines.
In sid e M in in g 0 5 | 2016
23
Gears, motors & transmissions
Importance
of maintenance Some of the most frequently asked questions posed to manufacturers relate to the importance of transmission and motor maintenance. Mientjie Kleinhans discusses the most salient points of maintenance with a few manufacturers and uncovers some tips to ensure operational longevity.
T
to maintenance needs to be weighed against that of part replacement in order to achieve the best results economically,” says FitzGerald. Nalen Alwar, sales manager, Cummins Power Generation, believes that the most obvious benefit of regular maintenance is machine uptime. “Maintenance makes your machines
here are various benefits to
quality of the maintenance. “The
more durable. It is important to con-
maintaining equipment, trans-
benefits are simply that your equip-
sider how long you could possibly
missions and motors, beyond just
ment runs for longer without failure,
defer maintenance. Is the machine
extending the life of machines.
and a lower total cost of ownership.
so robust that one can defer main-
The main ones include efficient service from the product, reduced downtimes, and safer working environments, according to Rob Green, sales
“The benefits are simply that your equipment runs for longer without failure, and a lower total cost of ownership.”
manager, SEW-Eurodrive. Craig FitzGerald, COO, Filter Focus,
All equipment
tenance? Regular maintenance re-
is designed
duces opex, capex and downtime.
for a certain
Therefore, maintenance is key to
lifespan or run-
sustaining operations.”
ning period, and the closer
Expensive products
the equipment
Green says that gearboxes and motors
runs to these
are normally costly pieces of equip-
life expectancies, the better. “There is obviously a cost attached to
ment. However, provided the unit is used in the right way and for the
says that all transmissions and motors
replacing parts that have failed; so, a
correct application, and maintained
require maintenance, but of particu-
reduction in failures equals a reduction
to the correct standards, it should pro-
lar importance are the regularity and
of cost. As a result, the cost attached
vide years of good service. “The initial
In sid e M in in g 0 5 | 2016
25
Gears, motors & transmissions
mechanical system can be vast. “Oil specification and ISO cleanliness levels of that oil are also tied integrally to the design lifespan and specification of mechanical equipment,” says FitzGerald.
Maintenance intervals FitzGerald lauds the fact that many across industries are now embracing technological advances that allow for preventative rather than reactive maintenance. “Addressing problems in the system before they cause failure is generally achieved through good maintenance investment is paid back a few times
keep the equipment as a whole within
practices, oil analysis, visual inspection
over,” asserts Green.
its designed specifications. Other parts
and so on, rather than the old ‘wait
might not conform and would, there-
until it breaks’ mentality.”
FitzGerald says that the cost of maintenance is always seen as a cost
fore, be a detriment to the system as
centre. His advice is to alter this train
a whole.
of thought to seeing maintenance as a savings centre. “Maintenance directly lowers running costs by keeping the equipment running within specification for longer time periods. The cost to replace is almost
Lubricants play an extremely important role in maintaining
to the legality of warranties, service plans and guarantees. “For general equipment, however, I would highly recommend micro-fine filtration and oil
“Maintenance training not only reduces costs, but empowers people and communities in the transfer of the necessary skills.” Nalen Alwar, sales manager, Cummins Power Generation
analysis scheduled at a minimum, growing towards preventative rather than predictive maintenance procedures. Basically, don’t change the
always higher than the
equipment, minimising the effects
oil based on time, change the oil when
cost to maintain.” He adds
of friction, as far as possible. “The
it actually needs replacing.”
that maintenance intervals should also
type of lubricants used is also impor-
be looked at, as these can contrib-
tant and depends on the type of
ment that mining companies should
ute largely to the overall savings one
gearbox, application and ambient
work out the real cost of deferring
can achieve by implementing proper
running conditions.
maintenance. “Companies need to
maintenance.
Important advice On discussing replacement parts, Green explains, “Our company only
“Our company has SEW-approved
Cummins’ Alwar reiterates the state-
do cost-effective maintenance – and
lubricant tables, which assist customers
that doesn’t only boil down to cost, but
in choosing the correct lubricants,”
timing as well.”
says Green. According to FitzGerald, lubrication
Maintenance training
uses SEW-approved parts, and for
affects every moving part of a ma-
Maintaining equipment is of crucial
good reason. This ensures that the
chine drastically, as friction is responsi-
value, but so is training workers to en-
products used conform to our ap-
ble for the largest energy losses in any
sure they know what they are doing.
proved standards, which will offer a
mechanical system.
Even operators need to be trained in
“With lubrication and friction sharing
the basics of maintenance. With this in
important to use products specified by
such a resolute relationship, the bene-
mind, Cummins trains people on behalf
the manufacturer.
fits of good-quality lubrication can be
of companies on Cummins products.
reasonable lifespan. That is why it is
“We stock a wide array of parts, or
felt in everything from power consump-
“Maintenance training not only
will source and import the required
tion to performance, and even in the
reduces costs, but empowers people
parts at the soonest lead time. Pric-
longevity of individual parts.
and communities in the transfer of
ing is reasonable and there is a price
“Unfortunately, not much time is
the necessary skills. This means that
incentive if we do the work with our
generally spent on understanding lubri-
when a mine closes down, which will
skilled staff, procedures and tooling,”
cants used in machinery; however, the
eventually happen, the surrounding
he states.
paybacks from properly understand-
community should be skilled and
ing the performance characteristics
knowledgeable enough to find more
of the oils and other lubricants in any
work,” concludes Alwar.
FitzGerald says that approved parts conform to the standards required to
26
Lubricants
He adds that service schedules for vehicles need to be maintained due
Ins i de Mi n i n g 0 5 | 2 0 1 6
Gears, motors & transmissions
Quality motors save costs Efficiency is the name of the game these days when it comes to new electric motor technology. Efficient motors save electricity, reducing costs – something vital to mines in tough economic times.
W
ith electricity being the
that customers will get a more efficient
product. Application
highest operational cost
motor for the same price. “For mining
engineering is an impor-
for any mine, there is a
specification, the IE3 motor is the stand-
tant element of the initial
need to go beyond merely
ard and it will be at no extra capital
assessment of a customer re-
manufacturing and supplying more en-
ergy efficient motors. Zest WEG Group is focused on ensuring customers benefit from its experience when it comes to assessing individual application needs. By applying applications knowledge
“We want to give back something to a sector that is currently struggling.” David Claassen, Zest WEG Group
coupled with access to the latest energy efficient motors, the company can add value by assisting mines to reduce operational costs. The company has taken this approach a step further by offering a five-year guarantee on WEG motors at no extra cost, and an energy efficient IE3 motor for the same price as the older generation IE2 motor. And the industry has taken notice. “Incorporating this into our service offering is in line with our strategy of partnering with customers to assist the mining industry, which is going through tough times," says David Claassen, executive: Integrated Solutions Centre, Zest WEG Group. He explains that the company is not a product provider, but rather a solution-based provider. “Our response to the decline in mining business is to decrease capex and opex
cost to the customer with the added
quirement and will ensure that the most
costs, bring down repair costs and focus
benefit of reducing their electricity bill.
appropriate motor is recommended
on continually increasing efficiency,
That is where we are product-wise,”
for the given application. This would
which will result in a reduction in energy
says Claassen.
also take factors such as site conditions
consumption,” says Claassen. He ex-
Further to this bold move, the com-
including altitude and ambient temper-
plains that an increase in production di-
pany also announced a five-year guar-
rectly relates to a decrease in downtime,
antee on its motors at the beginning
due to more-efficient electric motors.
of the year. “As the industry standard
site with a host of different tools to assist
is 12 or 18 months, this really shows the
customers, and holding consignment
confidence we place in our products.
stock on behalf of customers.
More than bargained for
ature into account. The additional services include a web-
With this in mind, the company has
We want to give back something to
done a few things to assist the market.
a sector that is currently struggling,”
Future
Firstly, the company decided to offer
says Claassen.
Besides the IE4 motor that has been de-
the market IE3 motors at the same
But that is not all. Zest WEG Group
veloped and introduced to the market,
price as IE2 motors. “We looked at
wants to understand its customers and
the company has been developing a
the IE3 motors and – as is mandatory
their needs, assisting them from the mo-
motor that it feels will fit the requirements
across Europe, North America and
ment a quotation is required. The team
of IE5 standards. “Even though the
Australia – we decided to take the
offers the potential buyer various value
standards for an IE5 motor haven’t even
step and make IE3 motors our standard
add services to ensure that a solution
been published yet, we feel that this
machine,” says Claassen. This means
is provided as opposed to a generic
motor will fit them,” says Claassen.
In sid e M in in g 0 5 | 2016
27
sheq “A lot of mines offer voluntary breathalyser testing in a bid to send the message that ‘we are not trying to catch you out’. In cases where the employee is found to test over the alcohol limit, they are usually subsequently sent home on unpaid leave. However, should the said employee fall into a trend, the mine will take more serious action,” Evans explains. The drug test comes in the form of
Drilling
a saliva test, which is often preferred because it is a hassle-free method that doesn’t require the employee to use the bathroom. Although similarly effective, a urine test can be either a
under the influence Drugs and alcohol are often used as coping mechanisms to deal with the pressures of daily life. Rhys Evans* discusses how mining houses can best manage this challenge. By Mpinane Senkhane
S
drug test (which tests for 10 different types of drugs), or a dip and read – similar to a pregnancy test. “There are a lot of good mines being proactive, especially with alcohol abuse. The larger the mine, the more likely you are to be
outh Africa produces 10% of
specifically at the physical labour level,
tested, whereas we find that smaller
the world’s gold, and has 40%
usually drink to relieve tension caused
mines conduct random alcohol testing
of the world’s known gold re-
by strenuous work related to the often
on-site. However, not enough drug
sources. It is estimated that 36
physically demanding nature of mining.
testing is being carried out, meaning
000 tonnes of undeveloped resources –
As alcohol tolerance increases, the indi-
problems slip through the cracks,”
about one third of the world’s unmined
vidual might experience memory black-
Evans continues.
gold – still remains. These ores are in-
outs. Drinking also results in arriving late
creasingly difficult to exploit due to the
for work, and leaving early, as the indi-
Dealing with the problem
great depths at which they are situated
vidual feels unwell frequently. Mistakes
In order determine if an employee has
and their fairly low-grade quality.
are more likely to be made due to inat-
a problem with alcohol or drugs, Ev-
In the high-risk mining environment,
tention, poor judgment and decreased
ans indicates that it is important to be
a sober mind is essential for safety and
efficiency. With the current death and
educated about the symptoms of ad-
productivity. And, similar to any working
accident figures in South Africa, the con-
diction. This awareness of what to look
environment, alcohol or substance de-
cern is valid.
out for, coupled with the appropriate
Evans says that, to curb and control
substance detection technology, is an
employee’s ability to contribute to the
this problem, most mining houses have
employer’s best weapon in the fight to
company’s success.
opted for the use of alcohol detectors in
eliminate chemical abuse from mines.
pendence has a significant effect on an
the form of breathalysers upon entry on
Additionally, Evans stresses that part
hol have always been problems. Em-
a site, which have proven to be particu-
of the solution is to arm the employees
ployees come from remote areas, and
larly effective in identifying employees
themselves with information about the
find themselves far from their families, in
under the influence.
effects of alcohol and drugs – not only
“Generally, in mining, drugs and alco-
somewhat informal settlements dominated by male workers,” Evans explains. “With increased peer pressure, dwellings full of beers and drugs have become increasingly prevalent in these communities, mostly because there is little else to do after hours”. Economically speaking, in any
“Knowing what to look for, coupled with the appropriate substance detection technology, is an employer’s best weapon in the fight to eliminate chemical abuse from mines.”
in the workplace, but in one’s personal capacity too. Involving the unions in the process of educating employees improves the likelihood that the negative reactions to testing will be reduced and that the desire to learn more surrounding drug and alcohol addiction
field, an addiction can increase
can be addressed from a
absenteeism, reduce productivity
non-combative viewpoint.
and escalate accident rates. Individuals in the mining industry,
28
single drug test or a 10-panel
Ins i de Mi n i n g 0 5 | 2 0 1 6
“Educate employees with the help of the unions.
sheq right Lion Alcolmeter SD 400 breathalyzer, with portable printer below right Lion Alcoblow Rapid Test, a durable, reliable, fast and accurate alcohol tester
role in dealing
dealt with formally. This includes test-
with alcohol
ing, on either a random or compulsory
problems. Some
basis, in accordance with the proce-
mining houses
dural requirements of the Mining Health
assist employees
and Safety Act,” adds Evans.
with rehabilita-
ALCO-Safe has a wide variety of drug and alcohol testing solutions, rang-
tion options, alExplain and dissect the
though not many.
Mining and Health Safety Act, and inform them of the testing methods and
test for a specific drug type, to multi-
daily responsibil-
ple-panel drug tests and drug testing
ity to monitor the
cups – which each test for 6 to 10 dif-
work and conduct
assistance that can be
ferent drugs.
of employees, it is
provided should an employee
Disposable saliva tests are available
not a supervisor’s task
feel he/she might have a
ing from single-strip drug tests, which
While it is their
to test for six different drug types in one
to diagnose alco-
test. ALCO-Safe has been proactively
problem associated with
holism; rather, they
working to eliminate alcohol and sub-
drugs and/or alcohol,”
exercise responsibility
stance abuse in the mining industry
says Evans.
in dealing with performance
It is important for an organisa-
(among others) in order to foster a
problems attributable to alcohol, by
safer and more productive workplace,
tion to address the problem of alcohol
holding the employee accountable,
which results in higher safety levels and
and substance abuse clearly at a
recommending help and taking ap-
better productivity.
policy level to provide a foundation on
propriate disciplinary action.
Not a minute too soon for the embattled mining industry.
which to base workplace detection,
“To prevent the use of drugs or al-
intervention measures and employee
cohol from slipping below the radar,
assistance programmes. It is also im-
mines should ensure their policies cov-
portant to ensure that managers and
ers how drug and alcohol abuse in the
*Rhys Evans is the director of drug and alcohol
supervisors in the workplace know their
workplace/sites will be identified and
testing distributor ALCO-Safe.
In sid e M in in g 0 5 | 2016
29
www.zimeczambia.com zambia@ametrade.org
6
th
Zambia international
mining & energy ConferenCe & exhibition silver sponsor
23-24 June 2016 new government Complex ConferenCe Centre
luSaKa, Zambia organised by
bronZe sponsor GLOBAL RENTAL POWER
Transport & logistics s
s& o D
't on
Transporting
D
heavy equipment
The transportation of heavy mining equipment to remote mining sites is no easy task. With the help of Andrew Nicholson* (left), Mpinane Senkhane looks at some key points to consider.
Truck drivers are usually the ones who bear the brunt of transporting the machinery to site. Nicholson indicates that, by ensuring you have an exceptionally trained team of both truck and escort drivers, you can reduce the risk of incidents. He says that increasing the defensive driving skill of drivers also increases their level of awareness and anticipation, which should lower exposure levels when it comes to third-party incidents.
7 DON’T allow driver fatigue The risks associated with driver exhaustion are well documented. Being fatigued significantly increases the risk of accidents. The ability to respond quickly and safely when a dangerous situation arises is a key part of transporting equipment. Although no clear data is available for South Africa, it is reported that driver fatigue contributes to more than 30% of road crashes. The main causes of driver fatigue are a lack of sleep and driving at times of the night when you would normally be sleeping. It is the responsibility of the company to ensure that drivers are well rested and ready for the trip. A rested driver is an integral part of travelling on the road.
4 DO make use of new technology Technology has afforded the transportation industry several options that make travel safer and more efficient. The use of this technology is encouraged. “The monitoring and management systems we use are essential in the generation and maintenance of a professional driving culture. As part of our company culture, management and drivers integrate these tools into every aspect of their lives in order to maximise the safety benefits for us, our clients, and other road users,” said Nicholson. Aside from investing in new technology, it is also important to keep old machinery and tools up to date, through regular servicing.
7 DON’T forget to plan your route Route planning in abnormal load transportation is key. “Fail-
I
gestion, including access under and over bridges and traffic
n a perfect world, earthmoving equipment would miracu-
flow issues through towns and cities.” With planning comes
lously show up on-site overnight and mining operations could
detailed route surveys. Traffic officials should be engaged if
begin without a hitch. But, the reality is that mining machinery
escorts are needed and drivers must be adequately briefed
needs to be transported to site. This is often a huge undertak-
to ensure a comprehensive understanding of the route and
ing, because mining operations use some of the largest and heav-
whatever known on-road risks there may be. Knowledge of
iest equipment in the world. Every one of these huge machines
these factors makes for easier delivery of the machinery.
needs to be transported, using methods that require extremely specific handling. Each step of transportation can be hazardous if
4 DO use the correct truck configurations
you do not take the necessary safety precautions.
One of the biggest mistakes companies make when trans-
7 DON’T forget the risks
porting heavy mining machinery is using the incorrect truck configurations. This results in underspecifying trucks and trail-
Nicholson says the greatest risk associated with transporting heavy
ers running large loads. “This is not only an extreme safety risk
machinery in general would have to be other road users. “Impa-
but also damages the road surfaces, slows traffic, and inevi-
tience, a lack of understanding, and low levels of awareness are
tably costs the taxpayer money,” Nicholson adds.
the main causes of incidents on the road. When transporting heavy machinery, there is not much room to manoeuvre and even less
7 DON’T bend the rules
room for error. The drivers are forced to ensure the safety of the
Total legal compliance is essential. “No shortcuts can be tak-
load, other road users, and themselves,” he says.
en, as this places you, the driver, and other road users at risk,”
4 DO train your personnel
30
ing to plan the route diligently can lead to delays and con-
Nicholson says. Often, fines can be imposed if road users are found disobeying rules of the roads, and this is not only costly,
The most effective way to mitigate risks in the transportation of
but can lead to delays in the load being delivered on time,
mining equipment is through continuous and meticulous training.
and even the detainment of a driver.
Ins i de Mi n i n g 0 5 | 2 0 1 6
4 DO understand the equipment you are transporting Understanding the machinery in question is pertinent, as most mining loads are abnormal either dimensionally or in mass, Nicholson says. Preparedness is key. In remote settings, you do not want a driver faced with a challenge regarding the machinery he is transporting, and unable to resolve it because of a lack of knowledge. Always ensure that all machinery is properly weatherised to withstand extreme weather conditions. For example, some mine sites in the Lesotho highlands experience very cold weather conditions, and even snow at certain times of the year. The equipment must be set to withstand such conditions.
7 DON’T forget to check the weather forecast on your route The weather plays a very large role in getting equipment
“Conduct planned
job observations during the loading, lashing and transporting processes, and ensure that the load is correctly secured.”
to site on time. Rainy weather can be very hazardous. Good lighting helps reduce the risks associated with this, as well as a fully serviced vehicle, with roadworthy tyres. When planning a trip of this nature, ensure you look at the weather forecast leading up to the
travel date to ensure that you are well prepared for the weather conditions en route.
4 DO be careful with loading the equipment The job of getting the equipment/machinery to the site safely is not limited to the actual trip on the road. This delicate task also includes getting the machinery loaded on to the vehicle efficiently and safely. The loading may seem like a fairly simple task, but if you move a large crane, for example, it has to be done very slowly and carefully. Issues like visibility, which can be limited depending on the type of load, need to be carefully considered. “We conduct planned job observations during the loading, lashing and transporting processes. We also have loaders at loading points who ensure that the load is correctly loaded and tied down. “We also employ the use of technology, ensuring that we place the correct load on the correct vehicle configuration, ensuring that all loads meet legal requirements with regard to axle mass, load distribution, and so on,” Nicholson explains. There are many more precautions you need to take. These are often dependent on the type and distance of load transported. You can never predict what may happen between the loading, transporting, and unloading, but you can never be too prepared either. These guidelines are as relevant to mining contractors as they are to mining houses, as the same process applies. *Andrew Nicholson is the managing director: Specialised at Barloworld Transport.
Inside Mining 05 | 2016
31
events
50 000
mining opportunities
in Africa
At the recent BreakBulk Africa conference held in Johannesburg, a panel of industry specialists discussed African mining and project logistics. Some interesting information about Africa was discussed such as the numerous African mining opportunities.
The panellists from left to right: Archie Barnmell, Murray Macnab, Elmarie van der Merwe and Shane Smit
T
he panel was moderated by
Upcoming commodities
“What makes Africa complex is that
Siobhan Fox, business develop-
there are 54 countries in Africa of which
He also said that silicon is the commodity
ment manager: South Africa,
26 speak French, 28 English, and six Por-
most mined on Earth; aluminium is the
Walvis Bay Corridor Group, and
tuguese. Swahili is the most spoken lan-
second in line, followed by potassium
the rest of panel consisted of: Archie
guage throughout Africa, with 100 million
and manganese. “The increasing popu-
Barnmell, regional lead: Management
home-language speakers and 120 mil-
lation drives the need for more and more
Consulting and Enterprise Development,
lion speaking it as a second language.
food, and this has created the demand
Hatch Goba; Murray Macnab, global
So there is a language issue between
for a need to mine potash. Only through
director: Mining and Mine Development,
ourselves,” he said.
the use of fertiliser and farming methods
WorleyParsons; Elmarie van der Merwe, manager: Supply Chain, FLSmidth; and
will we be able to sustain food supply.
Mining cycles
“Fertiliser is mined in the form of potash
Shane Smit, category manager: Procure-
Mining cycles have been around for
and phosphates, with potash taking
ment, ERG Africa.
millennia, driven by supply and demand
centre stage. The discovery in Ethopia,
since the Iron Age. As man has discov-
and elsewhere in Africa, will assist to
sion, Macnab gave an interesting over-
ered more and more uses for the ele-
feed people, and we will definitely see
view of mining in Africa. He said that the
ments on the periodic table, miners have
mines opening up in those countries,”
step of transforming mining opportuni-
had to find and mine them. Macnab
Macnab said.
ties into realities will be the backbone
added that, with so many elements on
of the empowerment of infrastructure
the periodic table, one would think that
demand in the world keeps on growing
into Africa.
the supply and demand would balance
alongside global urbanisation’s require-
itself out.
ments for basic electrification. The cop-
As an introduction to the panel discus-
“We are very dependent on that. These opportunities will only come into
“We have just come off a commodity
He also told the panel that copper
per supply from Zambia, the DRC and
effect if governments practice true
super cycle, which drove unsustainable
South Africa is on the up and this makes
democracy, which is the basic expec-
behaviour by mining companies, and,
these countries the three biggest copper
tation of the investors needed to fund
as a result, we are experiencing investor
producers in Africa. “Almost all the pro-
infrastructure and power generation
backlash. It was growth at all costs dur-
duction is exported through Durban, due
projects,” said Macnab.
ing the upcycle and, with information
to a lack of infrastructure in the DRC and
transparency these days, mining engi-
Zambia. This, in turn, creates transport
neers can’t hide that from investors.
and logistics opportunities.”
He said that there are over 50 000 mining opportunities registered on the SNL. com database – each one being an
The panel also discussed a number
This has made financing projects
identified mining opportunity. There is a
more difficult in the short term,”
of other topics, spanning supply chain
need and opportunity for mines in Africa.
added Macnab.
management to business partnerships.
index to advertisers 6th Zambia International Mining Conference & Exhibition
29
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31
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