Inside Mining August 2014

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AFRIC AN UPDATES ON THE

ining GROUND AND UNDERGROUND

MOPANI’S MINDOLA Copper mine deploys largest raise drill in Africa

HUSAB URANIUM MINE The world’s second-largest uranium mine

OTJIKOTO GOLD MINE

TEGA INDUSTRIES MD Fernando Monteiro on supplying the evolving African mining sector

Specialised lifting solution for remote sites

DEEP INNOVATION Embracing innovation can result in a 10% to 30% increase in productivity on any particular shaft

RANDGOLD RESOURCES Mark Bristow on challenges in Africa ISSN 1999-8872 • R50.00 (incl. VAT) • Vol. 7 • No. 8 • August 2014

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CONTENTS

A F R I C A N U P D AT E S O N T H E

ining

August 2014

GROUND AND UNDERGROUND

ENDORSED BY

EDITOR’S COMMENT ON THE COVER O

P8

3 Crossroads

S Survival of the fittest TTega Industries, a key supplier to mining operations across Africa, m iis constantly evolving, though cconsistently keeps its customers' best interests at heart. b

INDUSTRY COMMENT

5 Mining is not blameless AFRICA ROUND-UP

6 Mining news from the continent COVER STORY

8 Survival of

the fittest

IN THE SPOTLIGHT

10 Team Africa PROJECTS IN AFRICA

12 Redbore 100 in Africa 16 High five for Husab in Namibia 18 Namibia’s Otjikoto gets uplifted 20 Zambia powering up Kansanshi 22 Ran gold, a model African miner 26 Rio Tinto’s superlative Simandou 28 Big push at Kipushi in the DRC MINERALS PROCESSING

30 Smart savings at Tschudi AROUND THE GLOBE

32 More bang for your buck COMPANY PROFILE

12

34 Manitou: Made for mining TECHNOLOGY

37 Creating shockwaves INFRASTRUCTURE

38 Making tracks UNDERGROUND DEVELOPMENT

40 Deep innovation COMMINUTION

42 Screens for Africa 44 Good vibrations 46 African solutions 32

RENEWABLES

50 Don’t let the sun go down INFORMATION TECHNOLOGY

52 Keeping your assets in line ENVIRONMENTAL

54 African mining goes green ELECTRICAL

32

56 Igniting sparks IN SID E M IN IN G 0 8 | 2014

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4

EDITOR'S COMMENT

Publisher Elizabeth Shorten Editor Gerhard Hope Online editor Sylvester Haskins Head of design Frédérick Danton Senior designer Hayley Mendelow Designer Kirsty Galloway Chief sub-editor Tristan Snijders Sub-editor Beatrix Knopjes Contributors Mark Bristow, John Eccles Production manager Antois-Leigh Botma Production coordinator Jacqueline Modise Marketing manager Hestelle Robinson Digital manager Esther Louw Financial manager Andrew Lobban Administration Tonya Hebenton Distribution manager Nomsa Masina Distribution coordinator Asha Pursotham Printers United Litho Johannesburg Tel: +27 (0)11 402 0571 ___________________________________ Advertising Sales

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Crossroads

T

HERE ARE 1 600 mines and quarries in South Africa, employing over 500 000 people directly. This emphasises the central role of the mining industry in the South African economy, said Minister of Mines Ngoako Ramatlhodi on the occasion of the Budget Vote in the National Assembly in July.

Minister Ramatlhodi argued that South Africa was at a crossroads in terms of resource development. “The potential of the upstream petroleum industry, both shale gas and increasingly offshore deep-water oil and gas, is profound, and if stewarded properly, has the potential to drive the development of our economy for all our people in a manner contrary to a historic injustice inflicted upon our people by the mining industry.”

An Inter-Ministerial Committee has been established to comprehensively evaluate and accommodate concerns related to the MPRD Amendment Bill. The regulatory framework relating to mine health and safety is also being reviewed, in order to ensure alignment with the MPRDA Amendment Bill. “We are also aiming at ‘zero harm’ in the mines, as well as an appropriate environment for women mineworkers. The Mine Health and Safety Bill will be submitted to Parliament this financial year,” said Minister Ramatlhodi.

The African Exploration, Mining and Financing Corporation was resuscitated as the nucleus for the establishment of the state-owned mining company (SOMCO), which at present is a wholly owned subsidiary of the Central Energy Fund.

The company has already exceeded production volumes at its pioneering mine at Vlakfontein in Mpumalanga, with two further coal mines expected to be in production by 2017. “This year we will submit the SOMCO Bill to parliament for processing, with the aim of establishing the entity as a standalone company,” said Minister Ramatlhodi.

In terms of the Mining Charter, the Minister reiterated the key requirement for mining companies to “implement ways of improving housing and living conditions of mineworkers and to achieve a set of targets by 2014, which includes the conversion of all hostels into family units.”

Commenting on the Minister’s Budget Vote speech, Economic Freedom Fighters leader Julius Malema said that all 1 600 mines in South Africa must be inspected “in one year”. He added that Minister Ramatlhodi “does not even want to tell us how many inspectors there are, and there is not even money allocated for mines’ inspection.”

The EFF leader pointed out that mining is “currently the biggest contributor to environmental degradation, mining towns experience the highest levels of diseases, particularly TB and other occupational diseases.”

Malema also called on the Department of Mineral Resources to establish a commission to investigate ‘legislative changes’ to the remuneration and living conditions of mineworkers. “The legislative changes should include passing a law that say[s] all mineworkers should be paid a minimum of R12 500, after deductions.”

In this issue, SRK Consulting chairperson Roger Dixon and Randgold Resources chief executive Mark Bristow talk extensively to Inside Mining about the challenges and opportunities posed by the African mining industry. We also present a selection of Prestigious Projects in Africa, showcasing the best innovations and technological developments brought to bear in pursuit of cost-savings and increased productivity.

Gerhard Hope

IN SID E M IN IN G 0 8 | 2014

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INDUSTRY COMMENT

Mining is not

blameless

The mining industry is not blameless in its drive to exploit short-term opportunities, argues Randgold Resources chief executive Mark Bristow.

I

T ARRIVES IN A country and brags about how it is going to invest money and it expects everybody to bow and scrape. Then the gold price drops and everyone leaves. When you really boil it down, the government carries much more risk, because politicians go out on a limb when they inform their electorate of mining investors coming in who are getting tax breaks, and the next minute there is nothing there and jobs are being cut.

This is why Randgold Resources’ engagement with the Ivory Coast government on an industry basis is constructive. We sat down and argued points, and we agreed on a percentage of revenue for community work, which I fully support.

Your biggest single risk in emerging markets is social risk. We have put more than $1 billion in tax into Mali, which is able to fund many desks and schools.

Community responsibility We have a bigger responsibility to our communities than just patting them on the back. It is something that the industry and investors have to realise. Investors are very quick to throw the rule book at us and tell us what we have to do, and where we have to comply, but as soon as something does not look right, they sell up and leave, which means they have exploited the opportunity. It is a complex situation, and it requires fairly long-term and strong leadership within the company and the board in terms of how relationships with stakeholders are managed.

What about the relationship between social responsibility and mechanisation?

Mechanisation is an evolution that is absolutely aligned with the development of

an economy. Loulo-Gounkoto in Mali is highly mechanised. It has remote loading: the haul truck is sent remotely into the stope and loaded up. It also has complex, highly computerised drill booms that will drill and bolt in a single operation. Its staff are quite competent in running that machinery. A few Australians were brought in to teach them, and we very quickly became neck and neck with them in terms of efficiencies.

Evolution In theory, if you become more mechanised – which, by definition, means you become more efficient – you should employ more people, you will mine more, you will make more money, you will do

“We have a bigger responsibility to our communities than just patting them on the back.”

Mark Bristow, chief executive, Randgold Resources

many things better. We do not employ the sort of numbers that South African miners employ, but we employ highly skilled people.

Inefficiency in labour goes back to investment in skills, and the culture of how labour works. It is a trade-off at the end of the day, not only in the number of employees, but also in skills. Randgold Resources does not employ externally; we rather want our people going home at the end of the day and so invest in their skills. In this way, we are completely opposite to the South African, labour-intensive structure.

Employment strategy When we do our quarterly press conferences in our host countries, we show the population the percentage of local employment on a provincial, national and continental basis. Our employment strategy is first local, then regional, country, sub-continent and continent; only when we cannot find the required skills after that do we go international.

The key is that we employ much more because we favour local business partners.

All our service providers are local, and they also employ locally. This means our impact is massive. Mali is a very small economy, and we make an impact. How do you become an integral part of the economy? You cannot do it by being exclusive.

I think the industry has got a long way to go to get there. There is a culture in the mining industry that puts all these barriers in place in that it is still not an open business and is one prone to exploitation of resources.

Community responsibility, more than mechanisation, is the real power of economic activity.

IN SID E M IN IN G 0 8 | 2014

5

AFRICA ROUND-UP

MINING NEWS

from around the continent

GUINEA Anglo American has ruled out a bid for the Simandou iron ore project in Guinea.

However, the company is still looking to expand its portfolio in the region, according to a Reuters report. “Do not expect us to be bidding for a project such as Simandou,” said Anglo American head of marketing and iron ore sales Timo Smit, on the sidelines of the Metal Bulletin 20th Iron Ore Symposium in Sweden.

“Our focus is on expanding in West and Central Africa.

We will not be making any large-scale investments any time soon.” Exploiting Simandou could help one of Africa’s

poorest countries prosper, but mine development has been mired by disputes over concessions. Earlier this year, the Guinea government revoked the mining rights over the northern half of Simandou held by VBG, a joint venture between BSG Resources and Vale, after a government report determined that the former had won those rights through corruption.

LESOTHO Following completion of the Liqhobong diamond mine financing in May, Firestone Diamonds has reported that construction and development

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is expected to take 24 months.

The company said that nameplate production of 300 000 t is expected to be achieved in the first half of 2016, with the main treatment plant and supporting infrastructure already underway, under the leadership of chief project officer Glen Black. About 73% of the EPCM budget had been committed to date, with major equipment deliveries aligned to its current baseline schedule. “I am pleased to announce commencement of the earthworks programme at Liqhobong in the Lesotho Highlands, which follows the recent completion of the financing,” commented Firestone CEO Stuart Brown.

REPUBLIC OF CONGO AIM-listed exploration company African Potash has appointed RCT to undertake a maiden 1 000 m diamond-drill programme at the company’s Lac Dinga potash exploration project in the Republic of Congo. “The appointment of RCT represents further progress. With two highly prospective target areas identified and a drill team in place, we are now set to commence our maiden drilling programme in July,” said African Potash CEO Edward Marlow. The project is located in a mineral-rich region, proven to host extensive potash mineralisation. Marlow noted: “I look forward to proving up the value potential of our asset through this upcoming drill programme.” CSA Global conducted a geological study that resulted in a regional structural geological framework and an interpretation of the extent of the evaporite sequence across the area.

Elemental Minerals has appointed John Sanders

as its new managing director, replacing Iain Macpherson.

Sanders was instrumental in the development of the Sintoukola project in the Republic of Congo. He will continue as a non-executive director to allow a smooth transition and retain technical skills and achieve a level of continuity.

He was general manager and executive director from 2009 to 2012. Sanders has 30 years’ experience in African exploration and mining projects. He previously held the positions of VP: exploration for UraMin, CEO of Niger Uranium, regional exploration manager: East and West Africa at AngloGold Ashanti, country manager: AngloGold Mali and country manager: Anglo American Botswana. Elemental Minerals is an advanced mineral exploration and development company, whose primary asset is the 97%-owned Sintoukola potash project in the Republic of Congo. Sintoukola has the potential to be among the world’s lowest-cost potash producers. Its strategic location near the Congolese coast of Central West Africa offers a transport-cost advantage to key Brazilian and Asian fertiliser markets.

MALI The Mali government has awarded four mining permits to Qatar Mining, as the West African country seeks to boost exploration to offset ageing mines. Greenfield projects are set to be developed over the next few years. This agreement follows a meeting between the president of Mali, Ibrahim Boubacar Keita, and a visiting Qatari investment delegation in June. The newly established Qatar Mining Mali Greenfield will represent the interests of Qatar in Mali and the region. Qatar Mining was established in 2010 by the state of Qatar to undertake targeted investments in the mining and metals sector. The

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IN SID E M IN IN G 0 8 | 2 0 1 4

AFRICA ROUND-UP

company aims to become a multinational commodity player by 2022, using Mali as a base for all ventures into West Africa. Qatar Mining’s investment in Mali purportedly covers four zones, namely Tabako, Mininko Nord, Netekoto and Linguekoto in the west and southern locations.

The feasibility study for the Kobada gold project in the Kangaba region of Mali will be completed in quarter four of 2014, with project development the following year, African Gold Group (AGG) has announced. The company has just announced the appointment of a feasibility study coordinator for the 216 km2 Kobada gold project. Misha Anthony Collins will also sit on the AGG advisory board.

Both of the appointments

have been made with immediate effect.

“Management views this appointment as an important milestone for AGG as the company embarks on the road to production at Kobada,” it said. Collins is currently the non-executive chairman of Sihayo Gold and non-executive director of Ask Funding. He has a diverse background in technical, financial and oversight roles. He is also a significant shareholder in AGG. Collins holds a first-class honours degree in Metallurgical Engineering from RMIT University of Melbourne, Australia.

“Collins’s extensive metallurgical and financial experience will significantly strengthen and complement AGG’s existing project-development team,” said AGG president and CEO Declan Franzmann.

Collins commented: “There is a unique opportunity to build a significant and highly profitable gold business at Kobada, with demonstration of concept at a meaningful but manageable scale, followed by rapid incremental growth.

“Combined with high subsequent gravity recoveries as previous work has demonstrated, there is the potential for this project to deliver exceptional returns. The large resource also allows for a long mine life and scalable growth well beyond the initial 5 000 t/day modular plant that is currently being contemplated.”

ZIMBABWE A major underground collapse has halved platinum production at Zimplats’ Bhima platinum mine, the company

said on Friday 18 July. There were no reports of fatalities at the mine or any capital equipment damage at the operation. Bhima is Zimplats’ biggest of four platinum mines in Zimbabwe. The collapse was triggered by a deterioration of ground conditions along a fault that was first identified in 2011. As a result, production at Bhima has been downscaled by 50%, equating to 45 000 oz of platinum in matte, said Zimplats, a member of Implats South Africa.

Zimplats is a key source of revenue for Implats, the second largest platinum producer in the world.

Zimplats said it will take around 15 months to reach full production as per preliminary estimates, and around 50 months to reconnect to current declines.

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COVER STORY

TEGA INDUSTRIES

Survival of the

fittest

Mining in Southern Africa is evolving and key suppliers are working tirelessly to adapt their offerings to meet the demands of an increasingly sophisticated market.

M

ODERN REQUIREMENTS favour suppliers who have the right technical solutions and are able to provide products that are backed by a full array of services needed to support the customers’ mining operations or processes. This leaves comparatively less room for ‘in-thebox’ type sales of products and requires far greater product knowledge wherever technical input is sought.

As a key supplier to mines throughout Africa, Tega Industries’ managing director, Fernando Monteiro, is keenly aware of these changing requirements and has spent much of his time at the helm of the business shifting the company’s focus to providing all-round solutions to an expanding customer base.

“We will continue to expand our infrastructure in Africa to be closer to the customers we serve.”

Fernando Monteiro, MD, Tega Industries Manufacturing and more He says that although the company remains a manufacturer of linings and engineered rubber products (among others), supporting services of the company’s products are becoming more important and advanced.

Nowadays these include assistance with identification and specification of products and solutions for customers’ requirements. Products are then manufactured and tailor-made for the job, and the technical expertise to install and support the company’s engineered rubber and related Fernando Monteiro, managing director of Tega Industries South Africa

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INS I DE MI NI NG 0 8 6 | 2014

COVER STORY

products is critical. Work studies on clients’ sites are becoming common-place (to identify and rectify problems on customers’ sites) using the right rubber or engineered combination products.

“Over the past two years, our product sales have become more closely aligned with our customers’ business requirements. This echoes the close working relationships between our own technical personnel and the mine’s technical teams. In many instances this close working relationship even means we are able to suggest different products to solve multiple issues on customers’ sites and this adds great value to our service offering. It is one of the many reasons why Tega Industries South Africa continues to grow and attract new customers.”

Process of change Monteiro continues that it is not as simple as just deciding on a new path and setting off. “We took a long-term approach to gearing for the future and decided to completely re-engineer almost every aspect of our company in order to become 100% customer centric.

“This meant evaluating our status quo at the beginning of the transformation and measuring it against perceived future requirements (medium and long term) of our customers. This, in turn, led to the identification of a series of improvements that would be required. After obtaining the buy-in of all stakeholders, we embarked on a process of constant improvement.

“We started by addressing product quality and ensuring that we could meet the increasingly stringent requirements of our clients. We also made allowance for our fast-growing customer base and needed to ensure we could meet forecast volumes with quality product manufactured timeously, and being able to offer customers the facility to hold stock should they require it.”

Home-grown solution He continues that as part of a global organisation, they had a choice to either

source more products from the group’s other manufacturing hubs in India, Australia and the Americas, or to invest in the economy of South Africa.

“I am happy to say we proudly decided on the latter and so started the company on an all-out improvement campaign some two years ago.

“One of the first things I wanted to do was uplift and empower our staff. By doing away with labour brokers, we have converted our staff to full-time employees with a renewed sense of belonging, pride and job security.

“Next, we purchased a new 45 000 m² facility in Vulcania, Brakpan, which is central to major mining activities throughout the region and provides ample space for our manufacturing processes. We also invested in advanced low-energy moulding machines, as well as high-tech laboratory and testing equipment to ensure we produce the best possible, world-class products in a safe and responsible manner.”

Skills development Monteiro says that training has subsequently become central to the company’s ongoing improvement policy. He believes enriching workers in all areas of the business with work and life skills should have long-term benefits for the company through having a more skilled, better equipped and motivated workforce.

Tega Industries South Africa is converting its quality systems to the internationally accredited TÜV Rheinland assurance system as a means of assuring consistency of products leaving the factory door. On completion, the systems will include OSH 18000 health and safety and ISO 14000 environmental protection accreditation alongside its ISO 9001:2008 accreditation.

“We believe these are integral to growth from simply being a price-based product supplier, to evolving into a trusted service provider with world-class products, backed up by a large complement of worldclass staff across all areas of our business.

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ABOVE LEFT Thousands of engineered rubber items are made by Tega on a daily basis RIGHT A mould being prepared at Tega Industries’ new plant in Vulcania

Continuous improvement “Other areas we are concentrating on include reducing our energy consumption, even going as far as generating our own electricity requirements by means of heat that is released in the moulding process.

We are converting our manufacturing environment to become a 0% industrial waste effluent generator. In this way we are transforming our organisation, becoming a responsible partner to our clients and adding value to the communities in which we operate.

“We will continue to expand our infrastructure in Africa to be closer to the customers we serve. Needless to say, we keep investing in the right technical skills and the right people in all areas of our operation to ensure we add value to our customers’ operations. Through the addition of leading-edge technologies and equipment, we are now positioned to produce world-class products, proudly supplied and supported by our professional staff.

“We believe that our efforts are paying dividends. We are growing at a sustained pace and are eager to invite would-be customers to talk to us – they will be pleasantly surprised at our new and improved capabilities,” concludes Monteiro.

t +27 (0)11 421 9916 www.tegaindustries.co.za

IN SID E M IN IN G 0 8 | 2014

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IN THE SPOTLIGHT

Team Africa

SRK Consulting corporate consultant and chairman Roger Dixon says the launch of the Information Centre for the Extractive Sector (ICES) in Nairobi, Kenya, by the African Development Bank (AfDB) is the sort of initiative that makes Africa proud.

By Gerhard Hope

I

CES WILL CREATE a platform for knowledge-based dialogue to promote informed policies for Kenya’s mining sector; this will not only help attract investment but will better leverage mining investments in the broader development of the country’s economy, says Dixon.

“The main issues when doing business in Africa are stability and certainty, so minimising political risk and creating a framework for sustainable development will encourage direct foreign investment,” he says.

Dixon emphasises that the mining industry must prevent a repetition of the uneven development that characterised the colonial era.

“Governments and companies see it as a business imperative to exploit natural resources, but in many cases the people of these countries continue to live in abject poverty,” states Dixon. “This has led to a trend towards resource nationalism in some countries, as an attempt to redress historic imbalances. There is also a growing expectation that any company wishing to work in an African country has to be registered there.”

Africa Mining Vision (AMV) AfDB director for the Eastern Africa Resource Centre Gabriel Negatu says the opportunity to use the sector to accelerate

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understand Africa well to help contribute to sustainable growth,” he explains. “While there is a lot of hype about the positive growth being experienced by economies such as that of Nigeria, one should look at the growth rate per capita in order to get a better picture of Africa’s achievements.”

While Zimbabwe is often referred to when pundits point to how Africa is failing its citizenry, Dixon says that this is an example often taken out of context. There are many other more positive examples around Africa, where nations are working to address the key challenges to unlocking their rich mineral wealth.

The Democratic Republic of Congo has a magnificent resource endowment, for instance, but is held back by a lack of regulatory certainty and adequate transport corridors in many areas.

“It is fine having several major deposits of various minerals, but a country needs the means of transport to a port and back,” points out Dixon.

“The continent often lacks “The main issues the enabling infrastructure in-country and across regarding doing country boundaries.” business in Africa Furthermore, he says are stability, that Africa cannot follow a simple project developcertainty and ment model that dedicates fairness.” a rail line and port to just Roger Dixon, chairman, SRK one large mine, as there are

national development and promote economic growth “requires careful planning at this critical stage.

“AfDB supports the AMV, which sets out how mining can be used to drive continental development. We believe that, as stakeholders, we have a special role to play in promoting knowledge sharing in Kenya, given our proven track record as a trusted convener and facilitator of Africa’s sustainable development agenda,” says Negatu.

According to government estimates, extractive industries currently contribute just 1% of Kenya’s national income, and less than 2% of export earnings. This contribution is set to grow significantly.

Current estimates suggest the sector may grow to 10% of GDP. Dixon points out that, with 200 Australian companies involved in 700 projects on the continent, initiatives such as ICES in Kenya are essential to promote local excellence and expertise. “You have got to

IN THE SPOTLIGHT

often several stakeholders requiring rail and port services.

Dixon says that government ministries may also inadvertently hold back mineral investment and development by not collaborating closely enough with each other.

“In South Africa, for instance, most mining projects require permits or licences from the Department of Water Affairs and Sanitation, the Department of Environmental Affairs, and the Department of Mineral Resources – each of which have their own mandates and agendas,” he explains. “They operate within the context of the Ministry of Finance, which sets the fiscal regime. When these departments do not communicate with each other, investors can face conflicting or competing requirements, making business very difficult. This is replicated at a country level in Africa, where you also find that national governments do not communicate with each other. We need a regional approach.”

Institutional capacity Another issue is the institutional capacity of many African countries to monitor

OPPOSITE PAGE The continent often lacks the enabling infrastructure in-country and across country boundaries RIGHT Sign of the times in Africa

construction and mining standards, and to assess compliance with international benchmarking and national regulations.

“We have seen an influx of Chinese and other foreign investors who sometimes appear not to understand local priorities and standards,” he says. “They tend to bring in their own consultants, engineers and even workers, which is a cause of concern for me in that the host population ultimately does not share in the wealth generated.”

Dixon argues that it is important for countries like South Africa, Zambia and Ghana – which have a rich history of mining – to pool their resources and expertise to create a ‘team Africa’ to tackle local opportunities. “Companies from outside of Africa face increased visa and work permit issues and exorbitant travel and accommodation costs,” says Dixon. “There is also the question of adequate accommodation

and facilities for expatriate workers, in addition to health and safety issues such as malaria and even Ebola virus outbreaks.”

Dixon says that foreign companies, lured to Africa with a perception of easy pickings, are now finding similar cost pressures to those in their home countries; this presents a unique opportunity for the local ‘team Africa’ to make inroads on the continent.

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PROJECTS IN AFRICA

Redbore 100 Contract miner Redpath Mining South Africa (RMSA) is introducing the Redbore 100 raise drill at Mopani’s Mindola copper mine in Zambia.

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PROJECTS IN AFRICA

in Africa T

face. The drill cuttings from the reamer output of more than 15 500 kN of thrust.”

HE NEXT-GENERATION raise head fall to the floor of the lower level, This immense thrust, combined with drill, believed to be the largest where they are removed. The finished a maximum torque of 1 016.9 kNm, enof its kind introduced into the ables the pilot drill to cut through African mining market to a variety of solid rock types. As the date, is due to arrive on-site at the “A steady inflow of bit descends, 2.1 m-length drill secMopani Synclinorium Shaft prointernational investment tions are added to push the instruject by the end of August. ment further into the ground. Each “We are entering an exciting pehas resulted in the of the 345 individual sections have riod within our business, considerestablishment of new a unique thread design to withstand ing the successes we have achieved mine shafts, as well as the the torque and thrust. thus far with the Mopani Shaft project and the establishment upgrading of existing mine The threads work together with the torque to lock the sections together, of our raise-boring division. The shafts, across Africa.” which is critical in ensuring that the new technology RMSA is bringing drill remains straight at all times. To into Africa is strengthening our minimise deviations, RMSA makes use of raise has smooth walls, however, from raise-boring and shaft-sinking capabilia directional tool. time to time, rock bolting or other forms ties, which, in turn, is assisting us in seof ground support are required. curing additional work,” comments RMSA managing director Ockert Douglas.

76 t behemoth The contract RMSA has secured with Drilling vs blasting The Redbore 100 raise drill was designed Glencore will see an expansion of the and manufactured by Redpath CanaDavel indicates that this type of drillmining production operations at Mopani da in 2009, and was last deployed on a ing method is faster, cleaner and more Synclinorium via raise boring – a process raise-boring project at a large mining opcost-effective than traditional drill-andof excavating circular holes between two eration in Australia. Upon the successful blast methods. “A distinct advantage of levels of a mine without the use of explocompletion of that project, the 76 t bethe new Redbore 100 is that it has the sives. The upcast ventilation shaft, due hemoth was dismantled and transported ability to cut holes up to 8 m in diamefor completion in August 2015, forms to RMSA’s premises in Isando, Johannester – to depths of up to 1 km – through part of the Synclinorium Shaft project. burg. Following an inspection and pre-assolid rock. This is achieved thanks to its This comprises two shafts, a rock-windsembly process, the Redbore 100 is being hydraulically driven cylinders, with an ing shaft and the ventilation shaft. transported to Zambia.

“The short-term outlook for RMSA’s OCKERT DOUGLAS raise boring division involves the con1 167 m underground ON MECHANISATION struction of a workshop facility at our Upon completion, the new 6.1 m-diame“Mechanisation is the future of headquarters that will enable us to cater ter, 900 vertical shaft will reach 1 167 m the contracting mining industry.

We have established ourselves for further expansion of our raise-boring deep and will intersect the main haulages to sell this as a product to our business. This major capital investment, on 2370 Level and 3960 Level. This will clients. The formation of the which falls within the strategic objecprovide 600 CFM of ventilation air to the raise-boring division is testament tives of the business, aims to provide our underground workings. to this philosophy. The benefit current and future clients with a facility RMSA raise-boring manager Johan Davto our clients is a safer, highly efficient and more cost-effective to service raise-boring equipment,” exel explains that the raise-boring process product that will eventually plains Douglas. begins with the Redbore 100 raise drill ensure the upskilling of people, All of the individual components are being placed on the upper level of the which in turn will contribute stored in 35 cargo containers, which will two levels that need to be connected. A towards the future of the mining remain at sea for roughly two months. small-diameter pilot hole is drilled to the industry at large.”

Thereafter, 18 long-haul trucks will translevel required. Once the drill has broken port the containers across South Africa into the opening on the target level, the and Zambia, where a fully trained team, bit is removed. assisted by Redpath engineers, will be on The cutting tool, known as a reamer, hand to ensure that the Redbore 100 is is then attached to the drill string and operational as soon as possible. raised back towards the machine, while it is pulled and rotated against the rock

Planning and logistics OPPOSITE The Redbore 100 raise drill was designed and manufactured by Redpath Canada in 2009

“The planning and logistics involved in getting the Redbore 100 to South Africa has been a lengthy process. We initiated IN SID E M IN IN G 0 8 | 2014 13

PROJECTS IN AFRICA

Please supply caption

PRODUCTION BOOST

communications on planning and demobilisation in November and December of 2013. We had a dedicated logistics team that spent 80% of its time on that single project. Finally, it is all starting to come together,” comments Davel.

“Progress in on target. Most of the equipment is already in South Africa, where it is being serviced, checked and assembled. The Redbore 100 is one of the largest of its kind in Africa, ever.”

Once up and running, a multi-skilled team from RMSA will operate the Redbore 100 on a 24/7 basis for an estimated 15 months. In order to drill through the granite rock, which has an ultimate compressive strength of up to 200 MPa, the Redbore 100 will require 250 000 ℓ of water an hour, which will be reused through recycling dams. This water will be pumped through the hollow drill string to remove fractured rock generated during its downward rotation.

Meeting industry needs “The success of our raise-boring division will ensure sustainable future growth for RMSA, which will give our clients more flexibility in terms of product delivery.

What’s more, our ability to custom-design raise-boring machines through our

Canadian counterparts will further serve towards developing specific solutions for our clients. We are currently working in conjunction with the same client in Zambia to design a machine for a specific application, with the manufacture of basic components having commenced already. This is a good example of RMSA’s new technology meeting a client’s specific needs for a specific application,” explains Douglas.

Although there are similar machines that have been deployed in the African mining industry, the Redbore 100 offers a more efficient and cost-effective solution due to its low-profile, compact design. In comparison to other machines with similar capabilities, the extended height of the Redbore 100 is approximately 30% lower. This lower profile ensures substantial savings on operational space, which is severely restricted underground. It is cheaper to transport and can be dismantled easily, ultimately ensuring safer and more efficient equipment mobilisation.

Remain in Africa Strategically, RMSA sees the Redbore 100 remaining in Africa upon completion of the Synclinorium Shaft project. “Planning is running months ahead to ensure that

Carlisa Investments Corporation’s Mopani Copper Mine Plc says it expects to commission the $323 million Nkana Synclinorium Shaft in February 2016. About 10 000 direct jobs have been created, with an additional 500 jobs generated during the construction phase. Mopani manager for exploration projects Wellington Makumba said the Synclinorium Shaft project will boost the mine’s lifespan by 25 years. “The project is steadily progressing, having reached a depth of 1 235 m from surface. The final depth is 1 277 m,” Makumba revealed at the recent Zambia International Mining and Energy Conference and Exhibition in Lusaka. The new shaft will allow Mopani to increase production from the current 3.4 million tonnes to 600 million tonnes of ore a year.

this capital-intensive piece of equipment doesn’t remain idle,” says Davel.

“The logistics of transporting the machine are so onerous that we had to assess the potential for work in the South African and African markets. Once we established that opportunities exist, Redpath Canada gave the go-ahead to move the machine over to Africa,” says Douglas.

Davel states that the highest demand for future large-scale raise-boring projects will come from African mining operations. “A steady inflow of investment has resulted in the establishment of new mine shafts, as well as the upgrading of existing mine shafts, across Africa. As this trend continues, I believe that the Redbore 100 will play a central role in providing local operations with a maximum return on investment long into the future,” he concludes.

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PROJECTS IN AFRICA

High five for Husab Swakop Uranium is developing the Husab uranium mine about 76 km by road from Swakopmund in Namibia. The mine is planning first production at the end of 2015, and will achieve nameplate production by 2017. By Gerhard Hope

S

PEAKING AT THE official commissioning of the Husab mine, Hifikepunye Pohamba, President of Namibia, said: “The development and opening of this mine demonstrates that Namibia continues to be an attractive destination for foreign direct investment.” Project investors, Taurus Minerals (90%) and Epangelo Mining (10%), have injected significant resources into Husab. “To date, N$7 billion has been spent on the development.

It is envisaged that the total capex will exceed N$20 billion. The construction of Husab is one of the largest single investments by a Chinese company in Africa to date. It is also one of the largest construction projects ever undertaken in Namibia,” said President Pohamba.

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Chinese Ambassador Xin Shunkang said: “As the largest uranium discovery and development project of the 21st century, Husab is a widely watched project, featuring the world’s third largest uranium ore reserve and second largest uranium mine once in production.”

Groundbreaking ceremony The Husab project was inaugurated on 18 April 2013 with a groundbreaking ceremony at the mine site. Guests included company executives and government officials. An important development early this year was the securing of buffer storages for water so that the project can continue uninterrupted until the permanent water line is constructed and comes on stream. A long-term off-take agreement

to be signed with NamWater will ensure that all water used during and after the project is desalinated, thus preserving coastal aquifers.

The first blast on the Swakop Uranium Husab project site was detonated on 12 March, heralding the start of mining activities on what will become the world’s second largest uranium mine. The plan is to ensure that a run-of-mine stockpile will be ready for processing upon completion of the processing plant. The mine and process plant are designed to produce 15 million pounds of uranium oxide a year. Electricity from the NamPower grid was connected on 3 February through a 17 MVA mobile substation. The Husab mine site will have up to 50 MVA by the end of the year through a permanent substation.

PROJECTS IN AFRICA

OPPOSITE LEFT Swakop Uranium ordered 39 haul trucks and four hydraulic face shovels for Husab OPPOSITE BOTTOM Guests and dignitaries at the official commissioning of Husab in May RIGHT Hifikepunye Pohamba, President of the Republic of Namibia, and Ambassador Xin Shunkang

In April, the permanent road and bridge over the river Khan were completed. The turnoff to the Husab mine is 45Â km from Swakopmund, and meanders over the Khan River valley on the way to the mine.

The bridge over the Khan River is 160Â m long, linking the mine to the main B2 transport route leading to Swakopmund.

The surfaced road connecting the mine with the Namibian road network stretches over 22Â km.

Sulphuric acid plant Swakop Uranium has confirmed plans to build a 500Â 000Â tonne sulphuric acid plant at the mine. Sulphuric acid is a key chemical used to recover uranium in an ore body. Construction of the sulphuric acid plant will start in quarter two of 2014. The Husab mine is expected to utilise all the sulphuric acid produced at the envisaged plant. Additional acid will be imported or sourced locally if needed.

Swakop Uranium has started filling permanent positions well in advance of the opening of the mine as part of its operational-readiness programme. This will ensure that staff are sufficiently trained and ready to hit the ground running.

Training and development programmes

are designed to ensure that Swakop Uratheir shipment to Namibia. Two hydraulic nium has world-class Namibian skills to face shovels, which are used to load the manage this challenging operation. It was haul trucks, have also been handed over a proud moment for the Husab project to the operations team for pre-mining. team when the first giant-haul trucks and Rope shovels are another main machine hydraulic face shovel were fully assemfor loading the haul trucks and one has albled on-site early this year. ready been assembled and handed over to The trucks and hydraulic face shovels operations. Three rope shovels will be used were delivered to site in a knock-down kit on the Husab mine. form, ready for assembly. Swakop Uranium ordered 39 haul trucks HEAVY EQUIPMENT AT HUSAB and four hydraulic face shovels for • Four front-end loaders (which are used the Husab mine. for secondary move), one of which has Eleven of the giant-haul trucks been assembled and handed over to the operations team have been assembled and handed • Nine drill rigs, two of which have been over to the operations team for handed over and commissioned training and commissioning fol• Three 85 tonne water tankers, which lowing manufacture of the various are used for mining dust control components all over the globe and IN SID E M IN IN G 0 8 | 2014 17

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PROJECTS IN AFRICA

Otjikoto gets uplifted

Johnson Crane Hire has successfully completed a specialised lifting solution at the B2Gold Otjikoto project in Namibia.

T

HE SCOPE OF WORK involved lifting, moving and positioning Cat gensets. The gensets were manufactured internationally, shipped to Walvis Bay and then

transported to Otjikoto via road. Over a period of eight days, Johnson Crane Hire offloaded the genset components from the low-bed trucks onto the company’s recently acquired jacking-and-sliding

system. This was achieved by using a 200 tonne mobile crane. This new system is unique. It is ultra-portable, which allows optimum flexibility in where this sort of lift can be undertaken.

“This is especially important at remote sites like Otjikoto, where access to technology is limited by logistics,” says James Robinson, engineer and heavy lift manager (who has 13 years’ experience in alternative lifting) for crawler cranes and projects at Johnson Crane Hire.

Each of the gensets comprised three major components: the base frame, engine and alternator. Once offloaded, they were assembled in collaboration with an OEM representative. Each 120 tonne ABOVE (Main image) Craning of the base frame LEFT Early set-up of the sliding system

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PROJECTS IN AFRICA

TOP The sliding system in action ABOVE A job well done by the Johnson Crane Hire team, with the generator in its final position

LIFTING SOLUTIONS

of 29.4 milgenset was slid into lion tonnes, position along a TefThis new system is to be mined lon rail system. With unique. It is ultraover an initial the aid of a plumb portable, which 12-year period. line, Johnson Crane Schedules to Hire was able to place allows optimum complete the the gensets laterally flexibility in where mine infraand longitudinally this sort of lift can structure and within an accuracy of plant are tight one millimetre. be undertaken and require a “One of the biggest lifting solution advantages of the that will save both cost and time. portable jacking-and-sliding system is “The successful completion of the that it is easy to set up, and does not specialised lift at B2Gold’s Otjikoto need additional equipment to reposition is testament to Johnson Crane Hire’s it,” explains Robinson. market-driven competencies. It demonOtjikoto, 300 km north of Windhoek, strates clearly that speed and safety are will rank as Namibia’s second – and bignot necessarily mutually exclusive when gest – gold mine when it enters producthe correct team and technology are aption by the end of 2014. The current mine plied,” concludes Robinson. plan is based on probable mineral reserves

Engineer James Robinson explains that Johnson Crane Hire’s ability to understand its customers’ specific requirements enables the company to offer the most appropriate lifting solution. “You need to have an understanding of the nature of the lift, the risks involved and any limitations.”

The planning process is critical to the success of a heavy lift.

This begins with an initial site inspection, followed by a more intensive on-site visit by Johnson Crane Hire’s technical heavy lift team. In this way, the team is able to verify measurements and dimensions, which are then passed on to the engineering team, which undertakes a 2D or 3D CAD rigging study.

Underlining everything that Johnson Crane Hire does is a focus on safe lifting techniques.

This has stood the company in good stead for the past 35 years, and forms a critical cornerstone in its SMART (safety, maintenance, availability, reliability and total cost-effectiveness) business credo.

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PROJECTS IN AFRICA

Powering up Kansanshi The Zest WEG Group has secured a contract to supply containerised gensets for the Kansanshi mine in Zambia.

K

ANSANSHI IS THE largest copper mine in Africa and is situated 10 km north of the town of Solwezi and 180 km northwest of the Copperbelt town of Chingola. The mine has undergone several expansions since it began operating in 2005, and this contract from Zest WEG forms part of the latest phase of the upgrades. From an initial production capacity of 110 000 tpa of copper, Kansanshi is now capable of producing 340 000 tpa and more than 3.4 tpa of gold. A multi-stage expansion project aims to increase copper output capacity to 400 000 tpa by 2015.

Mining is carried out in two pits, designated Main and Northwest respectively, using conventional opencast methods and employing hydraulic excavators and a fleet of haul trucks. Ore treatment is flexible to allow for variation in ore type, either through an oxide circuit, a sulphide circuit or a transitional ore ‘mixed float’ circuit, with facilities to assist flotation concentrate to a final cathode via the HPL circuit.

Sulphide ore is treated via crushing, milling and flotation to produce copper in concentrate. The expansion of the sulphide milling circuit was commissioned in

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quarter four of 2008 to maintain finished copper production, as oxide ore is depleted and sulphide ore grades begin to fall as the mining horizon deepens.

Oxide ore Oxide ore is treated via crushing, milling, flotation, leaching and the SX/EW process to produce a sulphidic and gold-bearing flotation concentrate, as well as electrowon copper. Gold recovery by gravity was expanded by the addition of four new gravity concentrators in April 2010, providing two concentrators per milling train and increasing gold recovery from all ore types.

Gemini tables were installed to treat the gravity concentrates and produce a highgrade concentrate for direct smelting to gold bullion.

The contract for three 1 500 kVA and two 1 250 kVA containerised gensets was awarded based on Zest WEG’s track record in the mining industry, the capabilities and experience of its team, its manufacturing capacities and know-how, as well as the cost-effectiveness of the solution supplied.

“The African continent suffers from a general lack of reliable electricity grid capacity.

While Zambia’s power supply is slightly

more reliable than that available in many other African countries, there is still a need to provide an alternative power source for the sustainable operation of the Kansanshi plant,” says Bruce McCracken, sales manager for Zest WEG’s genset division.

First for gensets “Although the Zest WEG Group has supplied products to the mine in the past, this is the first time we have been asked to provide gensets. Each package comprises a Cummins QSK50G3 diesel engine coupled to a single-bearing alternator rated for 550 V, mounted on a purpose-made simplex-type base frame,” says McCracken.

Each combination genset is enabled for singular or synchronous operation. “This facilitates and satisfies a larger electrical output from the generator backup system.

This capability is required due to the varied load demand experienced on the mine. In addition, the units act as backup for each other in the event of failure of one unit.

This ensures that backup generator power will always be available to the mine.”

The gensets are placed in 12 m custom-modified ISO-certified shipping containers, manufactured by Zest WEG to suit

PROJECTS IN AFRICA

“The design engineer and electrical engineer are responsible for providing a solution that considers best practice for each customer’s unique requirements. Project management ensures that the process and procurement is timeously facilitated and that the final solution matches the original specifications, while the manufacturing team is responsible for working according On-board fuel tank In addition to the genset components, to the Zest WEG Group’s extremely strineach container includes a 2 000 ℓ on-board gent quality-control procedures.

“We have been involved in supplying genfuel tank, complete with an automatic filling system fed from an external bulk-fuel sets to a large base of customers in South tank. The container is dampened to absorb Africa, Mozambique, Zimbabwe, Nigeria and the Demothe sound generated cratic Republic within its confines, of the Congo and has an acousA multi-stage for the past 27 tic breakout limit of expansion project years, placing 85 dB at a distance of aims to increase us in a position about 7 m. to understand The order for the copper output and overcome first two units was capacity to about the challenges received in May 2013, 400 000 tpa of working in while the second orAfrica. Anothder was received in by 2015 er advantage October 2013. Delivwe bring to the ery of the first units was expedited in January 2014 and the re- table is that within Zest WEG we are able maining units were delivered in May 2014. to source a complete portfolio of offerings, Commissioning of the first two units was including gensets, electric motors, drive followed by commissioning of the third systems, transformers, installation sysunit three weeks later. The final commis- tems and electrical distribution panels,” sioning was undertaken in the presence says McCracken.

“This turnkey service provides customof Zest WEG’s technical team and the ers with the assurance that all solutions mine’s personnel.

Zest WEG has a fully integrated genset are manufactured in adherence to our manufacturing facility where the fabrica- quality assurance standards. An added tion, assembly, testing and commissioning benefit is that the customer has the conof gensets are conducted in accordance venience of dealing with one source for with the group’s high standards of quality their supply, commissioning, after-serassurance and compliance with the OSH vice support and maintenance needs,” Act. The facility manufactures in accord- concludes McCracken. ance with the relevant ISO quality and procurement standards. the specific configuration of the generator solution and the precise needs of the customer. “By placing gensets in containers, we enable the swift and easy transportation of the genset and all its components to any location required by the customer, in a ready-to-run format,” says McCracken.

TOP The ability to provide an engineered backup power supply solution that will ensure optimum reliability in a remote mining region secured Zest WEG Group a contract to supply containerised generator sets for First Quantum Mineral’s Kansanshi mine in Zambia ABOVE Placing generator sets in containers enables the swift and easy transportation to any location required by the customer, in a ready-to-run format OPPOSITE Zest WEG Group secured a contract to supply containerised generator sets for First Quantum Mineral’s Kansanshi mine in Zambia

ZAMBIAN FISCAL UNCERTAINTY

Substantial investment “We have made a substantial investment in our manufacturing facilities to ensure that customers are provided with reliable and robust gensets. Many suppliers rely on subcontractors to provide them with canopies, containers and exhaust systems.

We are able to manufacture all of these elements, ensuring consistent quality and timeous delivery of a complete solutions package,” says McCracken.

The division’s success is based on a number of strategically linked factors, including the experienced team, which is able to provide customers with application-specific solutions as opposed to ‘boxed’ products.

Canada’s First Quantum has delayed investment projects worth more than $1 billion in Zambia due to uncertainty over the fiscal regime in Africa’s second-biggest copper producer, Reuters reported in June.

This follows Zambia’s planned review of its mining taxes to boost government revenue after ‘inadequate’ receipts from the sector last year, according to Finance Minister Alexander Chikwanda. The country also introduced a 10% export duty on unprocessed minerals.

“There has been a lot of uncertainty over the fiscal regime. First Quantum has either slowed down or postponed over $1 billion in capital expenditure due to this uncertainty,” company director Matt Pascal told a mining conference. “If this chorus against the mining industry continues, it will end up killing the golden goose.”

Pascal said First Quantum had stockpiled 200 000 t of copper concentrates worth $350 million at its Kansanshi mine after Zambia, which has limited smelter capacity, introduced the 10% export duty on concentrate exports.

The projects affected were the Kansanshi expansion and the second phase of the smelter, which was initially delayed due to technical issues.

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PROJECTS IN AFRICA

A model African miner Mining is a multifaceted business in a demanding jurisdiction, particularly in emerging markets.

Gerhard Hope looks at how Randgold Resources is a model miner in Africa.

T

HE KIBALI MINE IN the Democratic Republic of Congo remains on track to deliver the 550 000 ounces of gold that its management has forecast for 2014, making this one of the flagship gold-mining projects on the continent.

It is the very model of efficiency and good planning. However, Africa and the mining industry in general pose significant hurdles that can make the unwary stumble, says Randgold Resources chief executive, Mark Bristow.

“Mining has so many challenges. It is a multi-faceted business in a demanding jurisdiction, certainly when operating in emerging markets. Forcing a margin into your business ensures that you remain profitable. However, what is going to haunt this industry is the fact that we have not invested in our own future.”

Bristow says that the bulk of current exploration spend has been squandered “on old deposits that started to look attractive as the gold price rose. Now we have a situation in the mining industry where a large part of forward-looking production is derived from junior mining companies who discovered small deposits on the back of a booming gold market, and who subsequently made promises to their shareholders. West Africa is full of those situations.”

Looming question The looming question now “is how much damage the industry needs to be

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subjected to in order to reduce supply sufficiently to drive up the gold price to rescue the rest of the industry. When you oversupply the market, the gold price goes down – we saw that in the 1990s with hedging and extra ounces supplied that were not even mined.

“As soon as we tightened up supply in 2001, the gold price shot up. Then we saw more and more gold being produced out of desperation as the gold price plummeted. The industry has become renowned for investing in the peaks and not supporting investment in the troughs. At the moment we are actually only in a small trough.”

The average grade in the gold-mining sector has plunged from 2.6 grams to just over a gram. “The revenue stream is lower, which means you have to mine double the tonnes to produce the same amount of gold as an industry. That is why costs have gone up. It is our considered view that the gold industry is bust at $1 300 an ounce. It is fundamentally broke, and cannot make returns,” argues Bristow.

Big demand for gold Despite this, there is still a big demand for gold, which has helped to bolster the price. “The demand is definitely there and it is surprising. I did not believe that the gold price would stay up where it is. However, I do not think the world economy is as healthy as it claims to be. This is a tough place to be.

We have never seen so many significant conflicts in the history of the world in such a short period of time. The oil price has also started to creep up, and we have seen no major commodity boom indicating an emergence from recession.”

Therefore, Bristow believes that emerging markets will be key. “The US will never grow at 9% to 10%. If it gets to 2%, it will be beneficial, for it remains a significant player. Emerging markets will drive the next phase in the global economy.

That is where all the money is at the moment.” This is also why these reserves are so important for Randgold Resources.

“It is a big driver in our business. The only way to create value is through discovery and development. The mining industry, in the first instance, is quite short of new discoveries and is merely exploiting its old dogs slowly. That in itself is attractive to us, because ultimately it underpins the gold price. Exploration is an integral part of our business.

Exploration vs shopping “Industry pundits are of the opinion that they are not going to do any more exploration and instead buy assets, because it is cheaper. However, there still is nothing in the market that I have seen where you are not paying a premium. Every now and again an opportunity like Kibali arises, which may be largely circumstantial. We had a good look LEFT at the geology and we Gounkoto believed it was a worldcrusher BELOW A class project.” striking Bristow explains that sunrise at Kibali Randgold Resources has

a rolling five-year plan for its business.

“I challenged my team to compile a 10-year plan. It is interesting when you start looking long term, as you can start seeing possible gaps and work on them.” This will see an extensive drilling programme being undertaken at Loulo-Gounkoto in Mali. “We have between 1.5 million and 2 million ounces of resources at +5 g. If we can convert that into reserves, we will be able to change the grade profile closer to 2019 and keep it up at 600 000 ounces.”

Tongon in the Ivory Coast has a six-year plan, and “we have to pull something out of the bag to make it a 10-year plan,” says Bristow. Due to the technical challenges at Tongon, a grade of 2 g is now considered breaking even. “It is seen as a special place: it has low-cost power, fantastic infrastructure and good people. So we aim to become a very low-grade, low-cost producer. It is in the right jurisdiction, and would give us a big opportunity to pursue some of the other resources in that country that are marginal.”

Ore-body extensions Bristow reveals that Randgold Resources will continue to focus on brownfield ore-body extensions. “That is why the Ivory Coast is so significant for us. We have put a lot of energy and investment into that.

It is our biggest exploration expenditure in the budget. It is a very exciting country; the infrastructure is efficient and it has two ports.”

Looking at other country hot spots, Bristow says that Mali “has not really

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attracted any new discoveries. In Senegal we are wrestling with the Massawa project. If we had cheap power, it would have been built already. It is another technical challenge for us. Ivory Coast is first in terms of greenfield projects, as it has never been explored. In the northeast of the Democratic Republic of Congo, we are hunting more ground, and are struggling to get it.

We are looking at Cameroon and Gabon because the Central African Republic has gone off the radar. We have had a look at South Sudan, which has a different geology; we will wait and see how it goes. We have just been through Kenya and Uganda. We would love to go back into Tanzania, although it has been so corrupted by previous mineral rights management that you cannot get a big enough lot to really invest in.

“We venture off the continent every now and again, and then scuttle back, as we know where our competitive advantages lie. We are very grateful we did

“We venture off the continent (of Africa) every now and again, and then scuttle back, as we know where our competitive advantages lie.” Randgold Resources chief executive Mark Bristow (third from the left) not do anything in Russia. We have always looked to South America from time to time, as it has a similar geology to West Africa.

When you balance it all out, and you look at the successes, I am very bullish about Africa. I have always said that

when the march to democracy starts, you cannot stop it. Global communication is too powerful. As soon as you free up the grip of dictatorship or military conflict, the population carries you, and I think that is what we are starting to see now. I am very positive.”

24 INS I DE MI NI NG 0 8 | 2 0 1 4

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PROJECTS IN AFRICA

Superlative

Simandou Rio Tinto’s Simandou will be the largest combined iron ore and infrastructure project ever developed in Africa.

T

HE PROJECT IS A world-class iron ore mining development located in the south-east of Guinea and partners include: • Republic of Guinea, 7.5% • Rio Tinto, 46.57% • Aluminium Corporation of China (Chinalco), 41.3% • International Finance Corporation (IFC), 4.625%.

Simandou will be the largest combined iron ore mine and infrastructure project ever developed in Africa, with the potential to transform the Guinean economy and its transport infrastructure. The project is comprised of three principal components: TOP Simandou in Guinea BELOW (From left) Jin-Yong Cai, IFC executive vice president and CEO; Alpha Condé, President of the Republic of Guinea; Sam Walsh, chief executive, Rio Tinto

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• a high-grade iron ore mine (Blocks 3 and 4 of Simandou) of 100 million t per year at full production • a new 650 km trans-Guinean, multi-user railway to transport iron ore to the Guinean coast • a new deep-water multi-user port in the Forécariah prefecture.

The infrastructure will be funded, built and owned for 30 years by a new infrastructure company, InfraCo, which will be made up of world-class international investors with the financial resources and technical skills to deliver this large and complex project.

The infrastructure will be transferred to the Republic of Guinea after the 30-year period has been concluded. New ‘hub

towns’, such as Forécariah, will emerge on the infrastructure route because of the provision of services and business generated by the project.

Significant milestone A significant milestone was achieved towards the end of May when the investment framework for Blocks 3 and 4 of the Simandou project was signed in Conakry by the government of Guinea and its partners: Tinto, Chinalco and the IFC. This flagship project will provide Guinea with the opportunity to reap the benefits of its rich mineral wealth and transform its wider economy.

A key feature of the investment framework is the ‘multi-user’ nature of the transport infrastructure, which means it will be accessible to various Guinean commercial and private users, in order to facilitate cross-country mobility for Guinean people, and boost the economy through enabling the transport of goods inside and outside Guinea to global export markets opened up by the port.

The rail and port will diversify the economy and maximise opportunities in sectors such as horticulture, agriculture, forestry and mining. The multi-user regime within the investment framework will allow access to mine producers along the Southern Growth Corridor.

Bankable feasibility study The signing marks a significant milestone and provides the legal and commercial foundation for the project. It also allows the project to move towards realising the opportunities it presents for Guinea and all the shareholders. The bankable feasibility study for the project is expected to be finalised within a year of the ratification of the IF, paving the way for project parameters such as cost and timeline.

The parties, under the leadership of Rio Tinto, are working together to assemble a consortium of investors who will finance, build and own the multi-user 650 km railway and deep-water port infrastructure within the agreed timeframe and along procedures laid down by the bankable feasibility study and involving all parties.

When fully operational, the project has the potential to double the country’s current GDP. The project will create significant employment and, at full capacity, will stimulate an estimated 45 000 jobs throughout the economy. It will also induce subcontracting and procurement activities. New and upgraded roads and

PROJECTS IN AFRICA

the development of fibre and wireless communications will underpin indirect economic development for communities along the infrastructure route, designated the Southern Growth Corridor.

Infrastructure investment President of the Republic of Guinea Alpha Condé said: “With massive infrastructure investment, this project is of critical importance for the people of Guinea. It is a nationwide priority that goes beyond the mines and far beyond our generations.

With transparent and fair deals, our mining sector has the potential to be a game changer for Guinea. This project also represents a symbol of our continent’s tremendous efforts to meet its infrastructure challenges and build inclusive growth.”

State Minister of Mines and Geology of the Republic of Guinea Kerfalla Yansané said: “Simandou is one of the largest and best-quality iron ore deposits in the world. It has the potential to provide the global market with highly competitive ore for more than 40 years. This estimated $20 billion project, aiming to develop

Blocks 3 and 4 of Simandou along with the associated infrastructure, will boost Guinea’s whole economy and spur our Southern Growth Corridor through mining, agriculture, forestry, livestock and trade. It is about unlocking our huge potential, supporting our efforts to tackle poverty through jobs creation and economic diversification, and becoming more attractive to foreign direct investment.”

Sam Walsh, chief executive of Rio Tinto, says: “This is an important milestone

in the development of this world-class iron ore resource for the benefit of all shareholders and the people of Guinea.

I would like to welcome the government of Guinea as a shareholder and thank the President for his continued commitment to the project.”

Alan Davies, chief executive of diamonds and minerals, Rio Tinto, says: “The signing of the investment framework is testimony to the commitment of all the partners.”

ABOUT THE COMPANIES RIO TINTO is a leading international mining group headquartered in the UK, combining Rio Tinto PLC, a London and New York Stock Exchange listed company, and Rio Tinto Limited, listed on the Australian Securities Exchange. Rio Tinto’s business is finding, mining, and processing mineral resources. Major products are aluminium, copper, diamonds, thermal and metallurgical coal, uranium, gold, industrial minerals (borax, titanium dioxide and salt) and iron ore.

CHINALCO (the Aluminum Corporation of China) is a pivotal state-owned enterprise, supervised directly by the Chinese central government. It is an international, diversified mineral resources company, and one of the largest diversified metals and mining companies in China. Chinalco conducts exploration and mining, processes various mineral resources and also provides engineering and technical services to the mining industry.

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PROJECTS IN AFRICA

Big push at Kipushi

totalling more than 20 km, budgeted at $9.8 million. The drilling is designed to confirm and update Kipushi’s estimated historical resources and further expand the resources on strike and at depth.

Big Zinc deposit

Gécamines discovered the Big Zinc deposit prior to 1993, and it remains unmined. Historical estimates of the Big Zinc’s resources between the mine’s 1 295 m and 1 500 m levels total 4.7 million t, averaging 39% zinc and 0.76% copper.

Several exploration holes confirmed the continuation of the Big Zinc deposit below the 1 640 m level. Kipushi’s historical reIvanhoe Mines has announced the first batch of source estimates above the 1 500 m level assay results from its underground diamond-drilling total about 17 million t, averaging 16.7% zinc and 2.3% copper, including Big Zinc’s programme at its Kipushi project in Katanga, DRC. historical resources.

Ivanhoe Mines executive chairman Robert Friedland says that the first batch mine’s principal haulage level at 1 150 m OUTH-EAST OF THE company’s of assay results have confirmed initial below the surface.

Kamoa discovery, the project is visual estimates of high-grade zinc and Since gaining access to the 1 150 m levadjacent to the town of Kipushi, copper mineralisation in both the Big el in December last year, crews have been and about 30 km south-west Zinc and copper-rich Série Récurrente upgrading underground and surface inof the provincial capital of Lubumbashi. zones. “These initial assay results highfrastructure to support the drilling proIvanplats, now Ivanhoe Mines, acquired light the remarkable metal endowment gramme. Two rigs have been conducting a 68% interest in Kipushi in November of the mineralisation extending below the underground drilling at the mine, with 2011, and assumed responsibility for Kipushi deposit as previously mined by ongoing dewatering. Access to the critical ongoing refurbishment, dewatering and Gécamines,” comments Friedland.

1 272 m level hanging-wall drift was exdrilling. The state-owned mining company “At current spot prices of about $2 000 pected by the end of quarter two of 2014, Gécamines holds the remaining 32% intera kilogram for germanium and est in Kipushi. $21 an ounce for silver, we expect Kipushi is based on a highthe germanium and silver grades grade, underground zinc-copIvanhoe Mines will complete could add to the overall metal per mine in the Central African about 100 holes totalling value at Kipushi,” says Ivanhoe Copperbelt, which mined about more than 20 km, budgeted Mines CEO Lars-Eric Johansson.

60 million t, grading 11% zinc “Sulphur content, particularly in and 7% copper, between 1924 at $9.8 million the Big Zinc, also represents a and 1993. In addition, the potentially significant value addimine produced 12 673 t of lead tion, given the scarcity of primaand about 278 t of germanium ry sulphur supply in the Copperbetween 1956 and 1978. belt region, and the demand for Work began on the planned acid in conventional in-country diamond-drilling programme oxide recovery circuits.” in early March 2014, a major advance made possible by the ongoing dewatering proUnderground and surface gramme directed by Ivanhoe infrastructure during the past two-and-a-half years, folwhich will allow Ivanhoe Mines to begin Ivanhoe Mines continues to upgrade unlowing its acquisition of a 68% interest in the drill programme’s phase of twinning derground and surface infrastructure to Kipushi in November 2011. the historical drilling. support the drilling programme, and prepare the mine for potential future redevelopment and operations, subject to enCare and maintenance High-grade copper gineering and other studies. The mine has The mine, which had been placed on care The next stage of the dewatering probeen dewatered to the 1 305 m level on the and maintenance in 1993, flooded in early gramme is to replace the winding ropes Cascade side (Shafts 1 to 4), where drilling 2011 due to a lack of pump maintenance on the Shaft 5 conveyances and re-estaboperations are taking place. over an extended period. Water reached lish the main pumping station in Shaft 5 The scope of drilling has been expanded 851 m below surface at its peak. A major at the 1 210 m level for ongoing dewaterto evaluate the high-grade, copper-rich milestone was reached in December 2013 ing. Ivanhoe’s 2014 drilling programme Série Récurrente zone. The 1 272 m when Ivanhoe Mines restored access to the is scheduled to complete about 100 holes

S

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PROJECTS IN AFRICA

level hanging-wall drill drift has been dewatered and is being prepared for drill access. Drilling from this level is expected to commence once the Série Récurrente programme is completed. This drill access will facilitate detailed confirmatory and exploratory deep drilling of the Big Zinc, and of down-plunge unmined extensions to the copper-rich northern portion of the historical Kipushi deposit.

Also on the Cascade side, a water dam is being constructed on the 1 112 m level to reduce pumping requirements. Fabrication of a new ventilation fan for Shaft 4 is complete, with the fan to be commissioned later this month. Refurbishment of Shaft 5 is ongoing, with replacement of the hoist ropes.

Resumed operations at Shaft 5 will facilitate the refurbishment of the main pump station at the bottom of the shaft, improving the efficiency of pumping operations, and delivery of mechanised underground equipment to the active part of the mine.

Previous mining Previous mining at Kipushi was conducted from surface to about the 1 220 m level,

with mineralisation projected to extend to 1 800 m below surface, based on Gécamines’ drilling. Mining historically occurred mainly within three contiguous zones: the northern and southern zones of the approximately north-south striking, about 70° west-dipping Kipushi fault, and the approximately east-west striking, steeply north-dipping Série Récurrente zone in the footwall of the fault. The Série Récurrente derives its name from the geological formation with which it is associated, characterised by a series of alternating (recurring) beds of dolomite and siltstone/shale.

High-grade copper was particularly well developed in the North and Série Récurrente zones. Historically, Gécamines referred to a portion of the North zone as the Nord Riche (Northern Rich) area, which occurred at the structural junction of the Kipushi Fault and the Série Récurrente zone. The Nord Riche area has been incompletely explored below previous workings.

Historical underground mine plans show that mineralisation in the Nord Riche area was significantly thicker than in the

Ivanhoe Mines executive chairman Robert Friedland

Série Récurrente area where Ivanhoe has been drilling.

To date, Ivanhoe has been unable to explore for extensions of the Nord Riche area due to a lack of suitably positioned underground drilling stations in the footwall of the Kipushi Fault. However, dewatering and re-establishment of drill stations on the 1 272 m level hanging-wall drift and crosscut, and along the deeper portions of the access decline, will allow Ivanhoe to explore down-plunge extensions of this area.

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Cote d’Ivoire’s International Mining, Energy/Oil & Gas and Infrastructure Summit (CIMEOGIS 2014) Who Attends?

The Cote d’Ivoire government has adopted a pragmatic investment policy which is designed to enhance investment in the mining, energy/oil & gas and infrastructure industries and to ensure the development of a self-sustaining extractive industry.

LEAD EVENT PARTNERS:

Don’t Miss CIMEOGIS 2014 ENDORSED BY: Ministry of Industry & Mines Ministry of Petroleum & Energy

Mining Companies; Oil & Gas Companies; Energy Companies; Infrastructure Companies; Utilities; Service Providers; Regulators and Policy Makers; IPPs; Financiers; Private Equity Firms; Project Developers; Contractors; Other Relevant Stakeholders.

To download event brochure, sponsorship brochure and registration forms, visit www.cotedivoiresummit.com or contact us below: SOUTH AFRICA OFFICE: Tel: +27 11 051 6133 Cell: +27 83 884 2283, +27 84 052 5561 Email: noel@cotedivoiresummit.com or cotedivoiresummit@gmail.com Web: www.cotedivoiresummit.com

COTE D’IVOIRE OFFICE: Roland Kouakou 4 Grand Bassam, Cote d’ivoire CIMEOGIS 2014 Organising Member Tel: +225 4949 7625Email: roland@cotedivoiresummit.com

MINERALS PROCESSING

Smart savings

Tschudi is a greenfield heap leach SX/EW copper project for Weatherly International, which has two operating copper mines at Otjihase and Matchless.

I

TS TWO OTHER projects are Tsumeb West and Tsumeb Tailings. The overall project, which includes opening up the mine, is valued at R800 million.

First copper is expected to be produced by quarter two of 2015.

Managing director Nicholas Beukes and CEO Sharadh Padayachi of Logiman tell Inside Mining that the Tschudi project was initially priced in the market at R1.2 billion. “By sitting down, thinking it through and applying ourselves, we were able to chop hundreds of millions of rands off this number,” says Beukes.

He confirms that the project is within budget and on schedule. “It is lined up for success. We have a good team on-site and in our Johannesburg office, so we hope to be able to turn the fortunes of Weatherly International around and, at the same time, cement our place in the market as the company able to provide project solutions.

Weatherly International came to us to get a better number. We were able to give it to them and secure the work.”

Beukes says that Logiman is already well-established on-site. “All our sub-contracts have essentially been placed and the earthworks are well underway. The construction camp is up and running and most of the ordered goods and material will begin to arrive soon. We are on track, and we are very proud of that.”

Weatherly International says that the much-anticipated Tschudi mine is now around 57% complete. Output from Tschudi will augment production from the Central Operations, which delivered record results following the drive to improve productivity and reduce operating costs.

Fourth quarter production of 1 507 t of copper contained in concentrates was the highest quarterly result since the mines were reopened in 2011. The cash cost was $5 710/t, the lowest level in two years.

Chief executive Rod Webster says: “We are delighted that our production guidance in May has been met and we expect further improvements in the next quarter as primary stoping in the Hoffnung Fault West area starts to have an impact.”

Weatherly International says it has paid off $550 000 of the working capital loan owed to Orion Mine Finance, which now TOP Dignitaries at the Tschudi groundbreaking in November 2013 LEFT Tschudi site aerial view OPPOSITE TOP Construction at Tschudi is well under way

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MINERALS PROCESSING

stands at $1.38 million. In June, Logiman, the engineering company constructing the Tschudi plant, subscribed for £1.7 million in shares in Weatherly International.

The production numbers indicate that Weatherly is ‘well positioned’ to achieve its targeted 7 000 t/year production run rate at the Central Operations, thanks to its improved mining method, better labour management and the opening up of new mining areas. At Tschudi, a further $11.7 million was spent, with a further $33.6 million of its facility undrawn.

“This is a great vote of confidence in both the management and the project itself, especially given the fact that Logiman bought the shares at a significant premium to the market,” an analyst commented.

Logiman was established in 2007 with five members, and has now grown to a staff complement of 52, with double-digit growth year-on-year. Its core business is project development within the mining and mineral space. “I use the term ‘project development’ because it is a little bit more than the traditional engineering procurement and construction management model. Much of our work is fixed-price lump sum turnkey risk-type projects,” notes Beukes.

The company’s in-house skill set runs the gamut of engineering disciplines, from mechanical to civil, process, electrical and instrumentation. It also has a fully fledged design office producing drawings and coordinating project and construction management services. It focuses on the gold, platinum, chrome, coal, copper and uranium sectors, and has worked for many of the mining majors, from Gold Fields to Amplats, Lonmin, Paladin Energy and Sasol Mining.

In terms of its involvement in Africa, Beukes comments: “We have taken a very flexible approach in that we go where the work is. We have done work in Malawi and are busy in Namibia. We have done some design for the DRC and Tanzania, and have looked at opportunities in other parts of Southern Africa.

“We have not done any work in West Africa, as that is something that has not come across our doorstep just yet.

But we certainly take a broad view on it. We feel very comfortable in the Southern African region, and that includes South Africa. Probably on average about 50% of our work is over the border, but it varies from year to year and project to project.”

The company’s competitive edge in the market is due to “a very good understanding of the construction side, and because of that we are able to reduce the costs quite significantly.” The dramatic reduction in the Tschudi price tag was “based purely on our knowledge of construction. We have taken full responsibility for certain aspects of the construction,” says Padayachi, explaining that the project has a dedicated construction team in place.

Beukes acknowledges that “mining is in a difficult place right now. We have been able to secure work in the field by being able to offer really competitive prices, assuming the risk ourselves, and obviously by understanding that risk and being able to give pretty deep discounts on the overall construction of the project by being able to optimise what we are

doing and getting it right the first time.

“That boils down to a deep understanding of what is actually required to build whatever plant it is, coupled with the trust and skill we have in our team here in this office.

One of the key success factors for us is that the team here, the designers, engineers and construction personnel, the planners and all the support staff, are all highly talented and committed to doing a good job, and that makes a huge difference in terms of our success in delivering for our clients,” says Beukes.

The much-anticipated Tschudi copper mine is now 57% complete

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AROUND THE GLOBE

More

BANG

AEL Indonesia has embarked on various projects to optimise drill-and-blast operations for its customers globally, says Carlos Paz.

By Gerhard Hope

for your buck T

HE KEY TO significant savings in drill-and-blast operations is investing in new technologies and solutions, which can unlock benefits further downstream in mining operations, says Carlos Paz, technical manager at AEL Indonesia. He speaks exclusively to Inside Mining on the sidelines of an internal AEL conference in Johannesburg.

“Every explosives company will be looking at its own technology and its commercialisation in order to be able to achieve that. It is finding where the gap is with the customer, bringing it in from R&D, commercialising it, getting the people trained, and then applying it. Larger companies like AEL are looking into that.”

AEL spends about 4% of its turnover on R&D, which is a major driver for the company. “These R&D projects differentiate AEL in the marketplace. It is quite inspiring for the technical teams to see R&D push, especially as it indicates a singular commitment towards our customers,” says Paz. He adds that it is important to strike a necessary balance between meeting clients’ needs and

32 INSI DE MI NI NG 0 8 | 2 0 1 4

developing the technological capabilities of the company.

Latest trends in mining Paz points out that more and more companies are set to optimise load-and-haul and crushing operations. “One of the drivers here is drill-and-blast, where

“If the mining basics are not correct, you will have issues. One of the challenges is to get those basics right.” new, cost-efficient initiatives such as electronic initiation and customised density products come into play. It also involves customising the energy of the explosives for every application. For example, it is ideal to crush metalliferous ore on the bench. This means you need to increase the energy level of the explosives, in order to fragment the material before it reaches the crusher.

“With commodity prices under pressure at the moment, in addition to the trend of opencast operations being converted to underground mining as easily accessible reserves are depleted, we will see that innovation extending to loading capabilities underground.

“In Indonesia, AEL brings in skilled drill-and-blast engineers on board in order to optimise our clients’ operations, starting from the drilling, with supervising and technical recommendations that form the baseline to apply such technology. Usually one of the issues is going with the latest detonation technology, but if the mining basics are not correct, the outcome will not be as expected. One of the challenges is to get those basics right, so we can bring benefits directly to our clients as well as to ourselves, including more safety on bench, easier loading and improved coordination.

Major coal exporter Paz is based in Indonesia, which is a major coal exporter with the world’s fifth largest reserves. “It is the largest economy in South East Asia, and is growing

AROUND THE GLOBE

OPPOSITE AEL brings in skilled drill-andblast engineers to optimise operations

at about 5% to 6% a year. It is a very rich country in terms of minerals. There are large coal-mining areas, providing 83% of AEL’s business in this country.

“Hopefully in the next months we will be starting a non-coal operation in South Sumatra, with both a surface and an underground operation, namely Sumatra Copper & Gold. One of the challenges for AEL in Indonesia is to diversify its portfolio. There are also big opportunities in metalliferous mining.

“There are high hopes for the Indonesian market, and it continues to become more and more competitive. The coal price has been declining, and that is making us even more proactive. We need to add even more value because our clients are asking for effective solutions.

Ammonium nitrate plant A particular initiative in this regard is the establishment, in joint venture with BBRI, of an ammonium nitrate solution plant in Indonesia for the Asia Pacific market, which will render it self-sufficient in explosives ingredients. “It will allow us to offer integrated solutions, with huge benefits for our clients, as they will no longer have to rely on external supply.

This will provide them with explosives closer on hand to their sites that are of an international quality.”

AEL Indonesia has also markedly increased its uptake of used oil, with 80% of recycled oil now being utilised in the manufacture of its base emulsion.

“There are huge volumes available in Indonesia, with added benefits for our customers,” comments Paz. The used oil is taken from equipment, transferred into

tanks and left to stand for eight hours, whereafter the impurities are drained off and it is blended with virgin fuels.

“Not only are you saving on raw materials, but the disposal of those oils is a costly environmental challenge.”

AEL Indonesia is capable of offering a one-stop service. “We are creating partnerships with some of our clients and are running a two-year project with Leighton Contractors of Australia. It has been a great success, specifically in terms of improving overburden removal.

This partnership has enabled AEL to be seen as a premium supplier of explosives and solutions. It is not only products; it is leveraging solutions; it is technical support, with assistance from drilling to blast analysis. It goes into mine planning, maximising the blast size, as it can be customised accordingly.”

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COMPANY PROFILE

made for

M

ANITOU HAS A complete range of automotive and mechanical machinery and implements that include the world’s largest telescopic handler, the 35 t lift MHT-X 14350.

With the unique ability to modify its French-engineered machinery for Southern African mining, 2014 sees Manitou Southern Africa expanding its underground mining inventory, with several new innovations, all of which encapsulate the company’s reputation of high performance levels, improved safety standards and lower operational costs throughout the life cycle of a mine. Manitou engineers machines that perform in rough and hazardous environments to their full performance capacity with maximum levels of safety.

mining MANITOU

Manitou’s mining equipment range

From a lineage of innovation that includes the construction of the world’s first all-terrain forklift in 1958, Manitou Southern Africa continues to define the forefront of materials handling equipment.

1

• Telehandlers: These machines are characterised by their rough-terrain power, ability, manoeuvrability and versatility, with lift from 2.3 to 35 t on a range of duplex and articulated turret lengths.

The MRT range with stabilisers features 360° rotation for even greater versatility and performance.

• Conveyor belt handler: Manitou’s conveyor belt handler accepts belt reels of all widths, and can integrate winders and reel clamps to improve productivity of conveyor transporting and laying. A conveyor belt saw attachment enables a safer cutting operation 15 times faster than conventional belt hand-sawing.

• Tyre handler: The Manitou tyre handler delivers safer, more productive and cost-efficient tyre maintenance on large dump trucks, load haul dumps and industrial utility vehicles. Eight hydraulically powered movements provide versatile, three dimensional handle ability of conventional, chained and foam-filled tyres of various dimensions.

• Truck-mounted forklifts: The truck-mounted forklift offers both a fixed handling solution to process loading and offloading of heavy materials from the truck rear, but can also be detached for conventional forklift operation, with up to 2.5 t lift at 3.3 m.

TOP The Manitou tyre handler enhances tyre maintenance for tyres of various dimensions LEFT The world’s largest telehandler: 35 t lift capacity with a height reach of 13.6 m

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COMPANY PROFILE

• Rough-terrain and conventional forklifts: Rough-terrain and conventional forklifts are available in electric and diesel/LPG variations and have lifting capacities of up to 7 t at 4 m in height. These forklifts feature compact designs that enable them to operate in confined spaces.

• Loaders – skid steer, articulated track: These Gehl machines are compact, rigid-framed, engine-powered, rough-terrain material loaders with lift turrets for attaching a wide variety of tools or attachments. The Gehl loaders deliver versatile yet powerful lift functionality for spatially constrained material handling applications.

• Access platforms: Manitou’s large-area articulated and vertical access platforms and scissor lifts in electric- and diesel-powered configurations enhance access to elevated, locations. Twenty platform configurations guarantee an access solution suited for your requirements, whether these are defined by reach or load, confined space or power preferences – all with maximum safety.

• Attachments: Machine attachments allow a single vehicle to fulfil the function of many, eliminating the need for standalone, dedicated solutions. The larger telehandlers feature an automatic attachment recognition system, which enables these vehicles to calibrate weight limits and envelope tolerances for enhanced safety in every application. If required, Manitou’s engineers and designers will carefully customise attachments for the specific application and safety requirements of the customer’s operation.

Performance anchored in safety Minespec technologies for hard-rock mining include an array of mechanical and component solutions that equip machines for rigid, rocky terrain operability and improve underground air quality through the inclusion of catalytic fume filters and diluters for greater compliance with health, safety, environmental and productivity regulations.

Flameproof technology for fiery softrock mines includes an additional array of combustion traps that limit the possibility of components igniting finely dispersed coal dust in hazardous underground environments.

Apart from modifying its machines for enhanced underground performance, Manitou’s vehicles are equipped with failsafe brake systems, which halt the

machines at inclines of up to 17° with a friction coefficient of no less than 0.3 and auxiliary brakes. Manitou machinery carries a series of internationally recognised and locally specific certifications and accreditations.

A total materials handling solution Manitou prides itself on its after-sales service and support. From nine service dealers located across South Africa offering a 95% parts retention, Manitou supports its products with ongoing maintenance, and 24-hour technical dispatch, with a critical

breakdown response of four hours. For larger mining operations, Manitou sets up on-site service centres.

The Manitou International Mining Club (MIMC) The MIMC assembles industry members from each mining sector to collaborate on technological advancements and industry trends. The 2014 MIMC will coincide with Electra Mining Africa 2014, hosting 40 key industry members to discuss, experience and evaluate the latest Manitou mining technologies.

NEW ADDITIONS TO MANITOU’S MINING EQUIPMENT RANGE 1 The world’s largest telehandler: the supersize MHT-X 14350 (opposite page) With a maximum lift of 35 t on its 14-m duplex turret, the MHT-X 14350 combines all-terrain operability and ergonomic designs with exceptional handling capabilities for the lifting of massive deadweight loads. A 7.2 l, 6-cylinder Mercedes-Benz engine delivers 240 kW of all-terrain handling force and a massive torsional rating of 1 300 Nm to handling operations.

In spite of its overall size and 68-tonne tare weight, a conventional turning radius of 7.34 m coupled to a steering configuration enabling two-wheel, fourg functionality y delivers a high level of manoeuvrability. wheel and crab steering

2

3

The MHT-X 14350 incorporates an Th array of safety features designed to arra minimise the dangers of operating min large mobile machinery, including larg ROPS- and FOPS-compliant cabin RO housing; front and rear awareness hou cameras; ergonomic cabin cam designs and the 3B6 Load State des Monitoring System.

Mo 2 ManiTrax Tow Tractor The ManiTrax Tow Tractor is a utility vehicle for hauling, towing and transporting equipment, tools, skids and tanks. This tow tractor is designed for maximum manoeuvrability, with full fourwheel and crab steering functionality allied to sleeker, more compact exterior designs, while retaining exceptional hauling capacities. The flexibility of the vehicle design enables wide scope for modifications and optimisations for a variety of process-enhancing functions.

3 Manitou Scaler As required

by South African mining law, the Manitou Scaler enables operators to scale detonated hard and soft rock 4 from secure areas on a seven metre, 180° rotational turret, either from within its fully enclosed cabin, or from up to 20 m away via remote control for maximum safety. The scaler has secondary functions in pipe and cylinder fitment, mesh erection and the destruction of large rocks.

4 Manitou Roof Bolter The Manitou Roof Bolter is an automated drill and bolt rig that operates in confined soft and hard rock hanging walls as low as 1.8 m. The Roof Bolter comprises a single rotating carousel head carrying six roof bolts, and enables drilling, automatic epoxy insertion and bolting functions in a single procedure, enhancing bolting capabilities and effecting savings.

IN SID E M IN IN G 0 8 | 2014 35

WƌŽƵĚ ƐƵƉƉůŝĞƌ ŽĨ ŵŝŶŝŶŐ ŵĂĐŚŝŶĞƌLJ ĂŶĚ ƚĞĐŚŶŽůŽŐLJ ƚŽ ,ƵƐĂď

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Flameproof range ;^ ^͕ ^ E^ ĂŶĚ DΘ ͲĂƉƉƌŽǀĞĚͿ ͼ'ĞŚů ϰϮϰϬ ͼdĞůĞŚĂŶĚůĞƌƐ ͼDĂŶŝdƌĂdž ƚŽǁ ƚƌĂĐƚŽƌ

D E/dKh ^ ,ĞĂĚ Kĸ ĐĞ dĞů͗ нϮϳ ϴϳ Ϯϯϰ ϵϰϰϮ ͼ &Ădž͗ нϮϳ ϵϳϱ ϰϲϰϲ ͼ ŵĂŝů͗ ŝŶĨŽ͘ŵƐĂΛŵĂŶŝƚŽƵͲŐƌŽƵƉ͘ĐŽŵ ǁǁǁ͘ŵĂŶŝƚŽƵ͘ĐŽ͘njĂ ZĞƉƌĞƐĞŶƚĞĚ ƚŚŽƵŐŚŽƵƚ ^ŽƵƚŚ ĨƌŝĐĂ ǁŝƚŚ ĚĞĂůĞƌƐ ŝŶ͗ 'ĂƵƚĞŶŐ͕ <ǁĂͲ ƵůƵ EĂƚĂů͕ ĂƐƚĞƌŶ ĂƉĞ͕ tĞƐƚĞƌŶ ĂƉĞ͕ sĂĂů dƌŝĂŶŐůĞͬ&ƌĞĞ ^ƚĂƚĞ ĂŶĚ EŽƌƚŚ tĞƐƚ WƌŽǀŝŶĐĞ ĨƌŝĐĂ ƌĞƉƌĞƐĞŶƚĂƟ ŽŶ ŝŶĐůƵĚĞƐ͗ DŽnjĂŵďŝƋƵĞ͕ ĂŵďŝĂ͕ EĂŵŝďŝĂ ĂŶĚ ŝŵďĂďǁĞ

TECHNOLOGY

Creating shockwaves Selfrag AG of Switzerland has developed a unique technology based on high-voltage pulse power aimed at revolutionising the comminution process within the mining industry.

T

HE COMPANY HAS already sold a number of batch units to institutes around the world, including the globally renowned Julius Kruttschnitt Mineral Research Centre in Australia. They are now in the process of developing an industrialised, continuous system for mining applications.

This high-voltage fragmentation is a revolutionary comminution technique that uses electrical discharges to weaken and/or fragment rocks. Specialised high-voltage generators are used to create very powerful underwater high-voltage discharges, resulting in the formation of shockwaves that cause widespread fracturing inside the affected particle.

Fracture patterns generated by high-voltage breakage resemble those resulting from normal blasting, indicating that high-voltage fragmentation can be thought of as a smaller-scale analogue of normal blasting using explosives.

The method has two major advantages over conventional comminution. First, the interaction between minerals and the induced electrical and mechanical stress fields inside a rock matrix is highly selective. This makes such high-voltage fragmentation exceptional at liberating minerals; ores treated using between 1 and 10 kWh/t are generally liberated coarser and more selectively.

This improves concentrate quality for nickel and copper ores. Alternatively,

this improved liberation may be used to increase the grind size of an ore, which represents a considerable energy saving.

The Selfrag Lab system, sold to geology and mining institutes, has proven successful in liberating zircons and other minerals for dating of rocks.

Second, it has the ability to weaken rocks using small energy inputs; energy inputs of 1 to 4 kWh/t, typically give weakening values of up to 160% (based on an increase in A*b values and bond reductions in the range of 5% to 20%.

High-voltage fragmentation is a revolutionary comminution technique to weaken and/or fragment rocks.

JKSimMet simulations have demonstrated that these strength reductions can result in significant overall energy savings.

In the case of a SABC circuit with two ball mills, power draw of the SAG mill was kept constant to produce a finer product from the weakened feed; this change in the circuit power balance was sufficient to allow shutdown of one of two ball mills, resulting in significant

Selfrag CEO Frédéric von der Weid with the Selfrag Lab – the first commercial high-voltage pulse power laboratory equipment for selective fragmentation

power savings as well as considerable reductions in other costs such as grinding media and liners.

“At Selfrag, we currently have a pilot plant capable of processing up to three tonnes per hour, explains CEO Frédéric von der Weid. We have been using this plant for internal development, as well as processing of bulk samples for mining and exploration companies. In the last six months, third-party projects have included platinum, copper, gold and silver applications.

“We have also already completed engineering work on a modular 10 tph pilot unit; this modular design represents a scalable concept allowing for throughputs of 100 tph or more to be reached,” says Von der Weid. Selfrag also offers services in high-voltage characterisation of ores to the mining industry.

In addition to mining applications, Selfrag is also actively developing exploration solutions for the diamond market, machines for the recycling of a wide variety of feed stocks, and units suitable for ultra-high purity fragmentation applications such as silicon rod crushing.

Its batch lab unit is already installed in over 20 institutes around the globe, in countries such as Australia, Japan, China, North America and Brazil.

IN SID E M IN IN G 0 8 | 2014 37

INFRASTRUCTURE

Making tracks A new coal export rail link that will boost both the Mozambican and Malawian economies is a flagship project for Pilot Crushtec International.

T

HE NEW RAIL link will extend from Tete in north-central Mozambique through Malawi to the port of Nacala

on the Mozambique coast. Its primary function will be to act as a conduit for the shipment of coal destined for export markets.

Africa sales manager Wayne Warren explains that a Sandvik US440i heavy-duty cone was supplied to meet a customer’s specific need for -63 mm stone for use as rail ballast material. “The required size is too small to be produced by a jaw crusher in high volumes and too large for a conventional cone crusher to produce without over crushing and generating an excess amount of waste.

“Our partnership with Sandvik has given us access to the US440i, a product designed to meet these circumstances and something we believe will add value to many of our customers’ operations.”

The client was invited to South Africa to see the cone crusher in operation and executives were impressed by its

capacity to meet the project’s needs in two important areas.

Jaw crusher

“First, it is able to process up to -63 mm material from a jaw crusher working at maximum capacity in a single pass. Second, the quality and quantity of its output is exceptionally high, namely that it produces well-shaped material, accompanied by a minimum quantity of fines,” says Warren.

The outcome was the customer’s investment in a complete suite of Sandvik products, which, in keeping with Pilot Crushtec International’s Southern Africa distributorship credentials, were all available ex-stock with full installation backup. The three products constitute a primary crusher QJ341 mobile jaw crusher that feeds the US440i. The US440i heavy-duty cone then, in turn, sends the crushed material through to the QA451 triple-deck screen. too

“The required size is small to be produced by a jaw crusher in high volumes and too large for a conventional cone crusher.” Wayne Warren, Africa sales manager, Pilot Crushtec International.

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Oversize material All oversize material is fed directly back to the US440i on the screen’s oversize belt, which minimises the rehandling

Realising possibilities... of the final product. The combination is achieving results well beyond the customer’s original expectations. Warren explains that the crusher’s large close-size setting allows it to reliably deliver up to 150 t of well-shaped rail ballast an hour.

The remoteness of the site was not an obstacle, even though all three tracked machines had to be trammed the final few kilometres to their destination. The installation and commissioning process, conducted by a joint team of Sandvik and Pilot Crushtec International personnel, took place without a hitch, clear evidence that the products and technical backup proved more than a match for the most severe African conditions.

$17 BILLION IN TRANSPORT PROJECTS Transport projects worth $17 billion are in the pipeline in Mozambique, according to PwC’s ‘Africa gearing up’ report. These include additional rail links to ports, as well as expanding port capacities to allow for greater exports, mainly for the natural resource sectors. Transport infrastructure is mostly being developed transversally (that is, west-east) connecting mining and agricultural clusters in Mozambique and neighbouring countries to exit ports. The central transport infrastructure extends from the Port of Beira to Zimbabwe, and marginally to Malawi and Zambia.

The concentration of urban population in Maputo means that this will continue to be the hub for infrastructure development projects over the medium term. The southern transport network links the Port of Maputo to the north-eastern part of South Africa, Swaziland and Zimbabwe.

These two ‘transport clusters’ are, however, only connected by road.

Despite good port performance and considerable upgrades, demand will not be properly met. There are seven main seaports in Mozambique, of which Maputo, Beira and Nacala are the most important.

All of these have functioning rail linkages to the hinterland and neighbouring countries via the rail network, as well as adequate road linkages.

Sandvik US440i heavy-duty cone crusher supplied by Pilot Crushtec International to meet a customer’s specific need for use as rail ballast material

...from mine to market.

Resource Evaluation

Mineral Processing

Mine Planning

Tailings & Waste Management

Mining & Mine Development

Smelting & Refining

Materials Handling

Environment & Approvals

Transport to Market

Non-Process Infrastructure

WorleyParsons adds value through our full scope of services from pit to port including studies, mine planning, impact assessments, permitting and approvals, project management, construction management and global procurement.

43

countries

166

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IN S I D E M I N I N G 0 8 | 2 0 1 4 39

offices

37,500

people

UNDERGROUND DEVELOPMENT

Deep innovation Embracing innovation can result in a 10% to 30% increase in productivity on any particular shaft, according to Lister Sinclair from Hatch Goba.

By Gerhard Hope

H

ATCH GOBA (a member of the Hatch group of companies) is so confident about this achievement that it is already approaching various clients in this regard.

“We are currently busy proving it on a number of shafts. I do not think clients realise what a major improvement this can yield in terms of the limited expenditure it requires,” says Lister Sinclair, director for mining and mineral processing in Africa.

This is the result of a constant focus on innovation and improvement, which has seen the Hatch logo featured prominently on the Williams Formula 1 racing car. “It is a mindset as well as a philosophy. In the past there has been a focus on major projects as opposed to a focus on operational support and improvement. In our region, this aspect is gaining momentum. It is being driven by high power and labour costs, as well as the labour disruptions, making it an imperative for the industry to actually change the way it thinks.”

This implies looking beyond business as usual. “It is about adding value, which means improvement in costs, safety and productivity,” says Sinclair. “In Australia, we have been delivering that kind of support to various clients for years. It is bread-and-butter work for us.” This has become such a critical driver for the company that it now actively pursues those opportunities where it can put its technologies to good use.

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Smart team

to innovation and technology is a boon.

Sinclair adds, however, that this has increasingly become a business imperative.

“If you do not innovate in this day and age, especially with the level of the commodity prices at present, your scenario is short-term at best and not sustainable.

In addition, it is not adding any value to client shareholders.”

“We put together a ‘smart team’ for our client. The skills composition of such a team is vital, as we do not want to merely regurgitate what the industry has been doing for the last century. We are excited about it, and our clients are more receptive than they were before. It is seen as a real value-add, if not an absolute necessity.”

Hatch Goba employs 22 mining engineers in Africa at present and over 50 globally, but its current work“If you do not load in terms of mine innovate in design and scheduling this day and is such that it is actively recruiting an additional age... your four to five at present. scenario is “We find we have to pull short-term at in skills from associated companies we work best and not with if we do not have sustainable.” sufficient capacity.” An Lister Sinclair, director example of its current for mining and mineral work includes optimisprocessing in Africa at ing operations for a Hatch Goba Tanzanian client. “They want to lower costs and boost productivity, and have identified a slew of projects in this regard with which we are helping them.”

Having such proactive clients that are open

Technology partner Hatch Goba has been acting as a technology partner for a core client for a number of years now, with the main focus being on mining safely and economically at ultra-depths of 4 000 m and below. “I am unsure how many of our deep-level gold mines will still be operational after 2019. This will largely be determined by the gold price. At the current price, it is not looking too rosy in the future, unless you apply innovative technologies and forward thinking to reduce costs and enhance mine safety.”

This is why Hatch Goba “prides itself on being an innovative company”, with its main target areas

UNDERGROUND DEVELOPMENT

OPPOSITE The risks facing the mining and metals sector in Africa have become extreme and complex

being operational support and improvement. “R&D spend is a major focus,” says Sinclair. “Our furnace technology group is one area where we have trademarked technologies used around the globe. We are always looking at other areas of mining, such as hoisting, either by entering into joint ventures with manufacturers, or identifying and branding technologies by ourselves. An important part of our turnover is generated by technologies that we have developed.”

A showcase of Hatch Goba’s international standing in this regard has been its eight-year involvement with the South Deep gold mine, which has clocked up a series of impressive world firsts, such as the biggest steel headgear in the world and the largest winders ever installed.

“In terms of the anatomy of a typical underground or surface mine in South Africa, there is nothing we cannot undertake. We have the infrastructure and skill sets to design and project manage, including operational support of any mining venture, be it greenfield or brownfield sites. We have specialist metallurgical and hoisting engineers, among others, to carry out the designs; then underground we can carry out the full spectrum of engineering, such as mine planning and scheduling designs, including shaft sinking, loading stations, pump chambers and all associated underground infrastructure,” explains Sinclair.

Desktop studies With a dearth of investment for new projects, and extremely tight timeframes, a major trend at the moment is for some mining companies to cut down on lengthy study

costs and times by carrying out their own high-level desktop feasibility studies.

Funds will typically be decided on for such a project upon completion of the desktop study, including a margin for contingency, “because the engineering would not have been carried out to the degree we would normally have done it, so we simply come along and execute the project.”

Sinclair says that this approach does entail a special relationship with the client and a high degree of trust. “They have got to know you have the skill sets to deliver as promised, that you have a history of doing

this, and that you are capable of taking such a relationship forward.” Sinclair says that Hatch Goba has tackled various projects of this nature in Zambia and the DRC. “It is important to understand and control the margin of error involved, which allows you to migrate into the execution phase.

“This new approach is a major change from the tried-and-tested way of doing ‘projects by phases’, where you end up studying the project to the nth degree, thus minimising risk. I think those days for some of our clients are largely something of the past.

COMMINUTION

T

Screens

HE GROUP’S drives used on the bigger SCREENING banana screens. capability took “In addition to the standa major step forard designs in the range, we ward in 2012 with the acare also able to tailor screens quisition of Ludowici, the to suit individual customer leading provider of reflux applications,” adds Cneut. classifiers, coal centrifug“For example, we have just es, vibrating screens and completed a year-long test of complementary wear-rea 4.8 m-wide screen designed sistant products and serfor the coal industry, proving vices in the minerals inthat a screen of this size can dustry. This has allowed work extremely efficiently FLSmidth to complete over the long term. Anothits coal-processing flow er recently completed large sheet and to complement screen, destined for a customits copper and iron oreer in South America, is a douprocessing offerings with ble-deck unit weighing 54 t.” leading technologies.

The FLSmidth Ludowici “Our principal screening range of vibrating equipment and feeding installations comprises primarily linear in Africa are in Ghana, motion, high-G-force and Zambia and Mozambique. heavy-duty designs suitable We are currently busy for all mining and minerwith a very large project al-processing applications. that will showcase our Sizes range from 0.6 m to capability in this field in 4.8 m wide, with lengths South Africa,” says Jufrom 1.2 m to 11 m. The FLSmidth is seeing an increasing rgen Cneut, FLSmidth range largely consists of meinstalled base across mineral processes technology specialist: dium- and heavy-duty vibratvibrating equipment. ing screens, primary grizzly and commodities in several countries The group’s technolofeeders and medium- and on the continent. gy centre for screening heavy-duty vibrating feeders. and vibrating equipment Also of interest in the prodis located in Brisbane, uct range is the FLSmidth Australia, where ongoing Ludowici Jetslinger, which R&D is focused on develdistributes free-flowing bulk oping new designs and materials, inaccessible by manufacturing processes other mechanical means, to to boost efficiencies and form storage piles and the optimise designs, while FLSmidth Ludowici stockpile maintaining the product discharger, which facilitates a quality to which the marcontrolled out-loading rate of ket is accustomed. up to 8 000 t of coal per hour. The stockpile support, including inventory holding, to FLSmidth South Africa is one of the few discharger effectively prevents rat-holing customers,” says Cneut. “Manufacturing vibrating screen manufacturers to have its and bridging of the material to achieve a these products locally speeds up the entire own in-house panel manufacturing opergreater live area in the stockpile. supply chain.” ation under the FLSmidth Screen Media FLSmidth is the African market leader in FLSmidth screening and vibrating (formerly Meshcape) brand. Research into the supply of centrifuges, boasting an unequipment is distinguished in the marcombining the company’s Ludowici and equalled track record of performance and ketplace by its robust design that delivMeshcape panel designs is progressing reliability. The range includes coarse- and ers a longer lifespan and incorporates rapidly, and aims to boost the durability of fine-coal centrifuges, with benefits such unique features, such as an integral feed the end product to achieve a reduced total as high capacity, advanced technology, box as a separate component from the cost of ownership for customers. durability, value and efficiency. All centriscreen unit, which can be replaced withA major benefit to the local market is fuges are backed by professional support out the need to cut or modify the screen. that screening and vibrating equipment is and on-site service. The fine-screen prodThe unit simply unbolts from the screen manufactured at FLSmidth’s Supercenter uct range is completed by the company’s frame and is replaced with a new one. in Delmas, Mpumalanga, which exists as innovative Reflux Classifier technology, FLSmidth is one of only a few companies a multifaceted hub for FLSmidth activities now accepted as the preferred fines gravity to offer this design feature in Africa. The throughout Southern Africa. “The major separator by the major global producers of company is also distinguished by designdrivers are saving costs and providing local metallurgical coal. ing and manufacturing a range of exciter

for Africa

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One Source

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FLSmidth is your One Source for crushing, grinding, classifying, thickening, clarifying, slurry handling, ďŹ&#x201A;otation, mine shaft systems, pyroprocessing, material handling, automation, screens, centrifuges and complementary products, engineering, metallurgical testing and modernisation services. FLSmidth offers you a complete line of equipment and services with proven reliability and enhancing performance from the leading brand names of ABON, Buffalo, CEntry, Conveyor Engineering, Dawson Metallurgical Laboratories, Decanter Machine, Dorr-Oliver, EIMCO, ESSA, FFE, Fuller-Traylor, KOCH, Knelson, Krebs, Ludowici, Maag Gear, Mayer, Meshcape, MIE, MĂśller, MVT, PERI, Phillips Kiln Services, Pneumapress, RAHCO, Raptor, Roymec, Shriver, Summit Valley, Technequip and WEMCO. Enjoy increased recoveries while saving time and money on your next project! Let us help you tackle your speciďŹ c requirements.

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Visit u s AT TH E Electr a Min i Expo ng Hall 6 3TAND NO D16

COMMINUTION

OPPOSITE The Aury Africa team at their Jet Park manufacturing facility

Substantial stockholding “The reason for doing this is that we have got a fairly substantial stockholding. Even though Aury Tianjin is on the ball, from the time we place an order, to the time we actually unpack a container on our premises, you are looking at a significant turnaround time. So, we decided to cease manufacturing in China and bring the equipment over here, in the form of a small and a large weaving loom.

The next machine we will bring in is a polyurethane injection moulding machine.

“This is a major value-added service that is sure to further consolidate our trusted reputation,” says Houchin. He adds that Aury Africa has successfully distanced itself from the stigma of inferior quality and service associated with the Chinese manufacturing sector, as a result of its highly competitive, price-to-quality ratio, together with an unrivalled after-sales and technical support service.

Good vibrations Screening and vibrating equipment solutions supplier, Aury Africa has established a 5 000 m2 manufacturing facility in Johannesburg.

M

ANAGING DIRECTOR if not better.” Aury Africa began selling Mark Houchin tells In- screen media to mines and quarries in side Mining that the South Africa and then gradually branched new manufacturing facil- out into Southern Africa. Their footprint ity will improve turnaround times for now extends as far afield as East, West Aury Africa’s products. These products and Central Africa. Houchin says that Moare stock-consumable items in the com- zambique – a rapidly developing, regional minution sector and are used mainly for coal hub – represents a major market for separation applications. the company, as Aury is renowned for its Aury Africa stocks and supplies a com- coal-processing equipment. plete range of consumable products, In terms of the growth of Aury Africa to including polyurethane and rubber panels, cyclones, woven-wire “As long as a mine or screens, weld mesh, wedge wire prodquarry is operating, it will ucts, pipes, pumps, belt scrapers and ceramics. In addition, the company’s always need consumables capital equipment offering features such as screen media.” vibrating feeders and screens, fine and coarse coal centrifuges, crushers, conveyor systems and scrapers. date, Houchin says it started off with two Aury Africa is part of the Aury Tianjin employees in 2011, and has now expanded stable, and the group boasts a 100 000 m2 to 36 employees. “We have increased our fabrication facility in China. “Aury is prob- turnover tenfold in three years,” he says. ably the largest vibrating screen manufac- “We hope that when the mining industry turer in the world, supplying mostly into is on an upswing again, we are ideally poChina. However, we also have an Australi- sitioned to take off from there. This is why an office which was established seven years we have just recently started focusing on ago.” Houchin adds that the South African capital equipment.”

All woven-wire screens imported from branch, Aury Africa, was registered in 2010 China will be manufactured locally from and began trading in March 2011. this month, with Aury Africa putting the final touches on its relocation from its curMarket gap “Most of the vibrating screen manufactur- rent stockholding site in Edenvale to a new ers, who do a very good job, tend to be Eu- manufacturing facility in Jet Park, Boksrope-based and costly, whereas the quality burg. “We have invested R1 million in two and pricing out of China are comparable, new looms,” reveals Houchin.

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Continued growth Given its continued success and growth in Africa, Aury Africa will be exhibiting its product range at Electra Mining Africa 2014. “This will be our second time exhibiting. At the 2012 event, the company was a junior competitor with the objective of gaining recognition. In just two years, we have developed a reputation as a tried-and-trusted market leader. We aim to reinforce this position by engaging with high-profile decision-makers from across the continent in a centralised location,” says Houchin.

“There cannot be many people left in the South African mining and quarrying industry that do not know who Aury Africa is. I think Africa itself is opening up. A lot of previously unexplored, uncharted territory is being developed. As long as a mine or quarry is operating, it will always need consumables such as screen media.”

Houchin says that Aury Africa has technical expertise on hand on the consumables side. “We have teamed up with a number of smaller engineering companies that are familiar with panel and centrifuge basket change-outs and installation of piping and screens. The idea is to form strategic partnerships, and to look at entering this area ourselves in the foreseeable future.”

COMMINUTION

World’s largest slag mill Loesche’s order from the Taigang Group of China represents the largest slag mill in the world to date.

A

S A TECHNOLOGICAL pioneer, Loesche follows on from the success of the largest coal mill, LM 43.4 in India, and the world’s largest raw meal mill, LaM 69.6 in Nigeria. This latest triumph involves the largest slag mill in the world, which already produces 255 t/h blast-furnace slag meal in Taiyuan, northern China.

In September 2011, Loesche received an order from the Taigang Group International Trade, which commissioned a Loesche vertical mill of the type LM 63.3+3 for grinding granulated blast-furnace slag for its clients. This was to be the largest slag mill in the world.

Record production In March 2014, the plant went into operation in the steelworks of TISCO, Shanxi Taigang Stainless Steel in Taiyuan and attained a new record product rate with 255 t/h blast-furnace slag meal after only a short time.

In the steelworks of TISCO, the LM 63.3+3 has now been used for the pure grinding of granulated blast-furnace slag for the first time. The mill is driven by a

motor with an output The Loesche mill type of 7 400 kW, the most LM 63.3+3 powerful motor to have – proven been installed in a mill technology

by Loesche so far. for cement The projected guarangrinding teed values of 255 t/h granulated blast-furnace slag at a fineness of 4 400 Blaine are reliably attained here.

This is also ensured by the newly developed Loesche LDC classifier, used in the grinding plant and ideally customised to the Loesche mills.

Technological challenge The first Loesche mill of the type LM 63.3+3 commenced production in 2009 in Nallalingayapalli, India, and has meanwhile proven its merit as a reliable mill for OPC – PPC cement.

After examining the feed material and performing diverse tests in the Loesche pilot grinding plant, IT recommended one large mill with a grinding table diameter of 6.3 instead of two smaller mills for the cement works in Nallalingayapalli. This was to achieve the planned product capacity of 360 t/h OPC or 355 t/h PPC.

LOESCHE SYSTEM DEVELOPED Loesche developed the 2 + 2/3 + 3 system to improve grinding-bed stability. Here, upstream support rollers with up to 20% of the M-roller grinding pressure lie on the grinding bed to ventilate this.

The process improves the internal friction of the grinding stock on the table, resulting in more efficient crushing. It is possible to produce OPC with a fineness of up to 6 000 Blaine and blast-furnace slag meal with a fineness of over 7 000 Blaine.

IN SID E M IN IN G 0 8 | 2014 45

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Are you looking for cost-effective size-reduction and classification of ores, industrial minerals and concentrates?

Contact Loesche SA to find out the advantages of the Loesche Grinding System for your beneficiation process.

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

Loesche six roller Mill

MARKET LEADER DOES NOT KEEP US

COMMINUTION

African solutions Derrick Corporation of the US has about 70 installations in South Africa and 240 in Africa.

T

HE NEW YORK-based OEM is represented locally by Derrick Solutions International (DSI), which was established in January this year, explains vice-president Nic Barkhuysen. “Derrick manufactures fine screens and some associated equipment for the mining and oil and gas industries.

We probably do about 70% of our business in oil and gas and about 30% in mining. In terms of size, we do somewhere between 10 and 15 machines a day. Our inter-crane system in our factory in the US is the third largest in the world after Caterpillar and Boeing.”

The company specialises in fine screening, which comprises polyurethane panels with apertures from 45 microns up to 0.8 mm. “We manufacture dry, wet and slurry screens, as well as dewatering DSI vice-president Nic Barkhuysen with a line of dry screens

systems. The major application is for the closing of ball-mill circuits, replacing the cyclones with screens, resulting in a much better cut point. It prevents circulating loads and increases the throughput because you can put more tonnes through it. In most cases, in fact, the increase in capacity is so huge that such equipment can pay for itself in a matter of months, sometimes even weeks.”

A particular focus area for such productivity improvement is flotation, subsequent to milling, where over-grinding is a major problem. “The more you grind, the more surface area is generated. You can mill down to your liberation point and then remove the liberated material, which results in even more benefits.” Barkhuysen comments that while this equipment is often retrofitted, “slowly and surely the engineering houses are starting to realise they have to put these into new circuits, and that is happening more and more.”

Derrick itself was established in 1951, with DSI having offices in Indonesia, Dubai in the UAE and also in Canada. It has had a presence in Africa for about eight years now. “We also appoint agents and representatives. They typically do the upfront work, as they have the contacts on the mines, and then we back them up with technical support and equipment supply.

We service all of the commodity sectors, from coal to uranium, though iron ore is our biggest sector right now, with 1 000 installations there at the moment.”

Looking more closely at the specific benefits of its fine-screen products, Barkhuysen points out that they have a high open area, similar to woven wire. “We state categorically that they do not blind, which really gives us the major advantage. Our machines tend to be smaller and lighter, with high capacities. We really do not compete against other screening manufacturers as it is such a specialised, niche product. Instead we really compete against other technologies, such as jigs and cyclones.”

Barkhuysen says that a large focus of DSI is to educate the mining industry on the latest trends and developments, and to get it to accept new technology, as opposed to the traditional way of doing things. “That is our biggest challenge – convincing customers. Once they see the light, then it normally goes quite well.”

Commenting on the current state of the mining industry, Barkhuysen notes that “all commodity prices are down at the moment, and have been depressed for some time. It is unusual for them all to be in a trough. However, they have to turn sometime, which is obviously what we are waiting for to happen.”

He adds that the mining slump has had an impact on business, with projects being ‘parked’ as investors either withhold funding or prefer to wait for the market to turn. “Once these sectors turn, we will see huge demand again. At the moment our delivery runs at about 40 weeks, and we will see that escalate quite significantly as the cycle turns up.”

“We manufacture dry, wet and slurry screens, as well as dewatering systems.”

Nic Barkhuysen, vice-president, Derrick Solutions International

46 INS I DE MI NI NG 0 8 | 2 0 1 4

EXCEPTIONAL RETURN ON INVESTMENT Derrick Stack Sizer® Brings High Returns The unique combination of the patented high capacity Stack Sizer ® and Derrick Polyweb™ urethane screen surfaces (as fine as 45 microns) now makes fine wet screening a practical reality.

Over a thousand Stack Sizers currently operating at mineral processing plants worldwide are earning significant returns.

For example, replacing hydrocyclones with Stack Sizers can result in increased mill capacity and production rates, reducing power consumption per ton. Improved classification also minimizes overgrinding of valuable minerals, improving the performance of downstream processes.

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SITE SERVICES

A to Z solution Fedics Site Services, part of the Tsebo Outsourcing Group (TOG), offers an ‘A to Z’ solution for remote camp infrastructure. By Gerhard Hope

T

HE UNIQUE CAPABILITY of Fedics Site Services is that not only can it build a camp, but it can provide a total solution to keep it running smoothly. “Our solution encompasses early site establishment to construction and handover, servicing of the camp and its demobilisation afterwards. In most instances, the infrastructure is donated to the community for use as part of their corporate social investment.

Fedics Site Services and Tsebo have a well-established process for community engagement, including programmes for local sourcing, local employment and skills development, and community outreach.

“We consider it vital to create community partnerships that leave a legacy for the

preferred suppliers that can support us through Africa. Also, for example, with catering equipment, we use preferred suppliers to procure everything on behalf of the client.

The client can concentrate on his core business and leave the rest up to us,” says St Clair-Laing.

Greenfield camp

A typical greenfield camp ranges from the civil infrastructure such as waste and water reticulation through to the actual buildings themselves. “Once all the buildings have been erected, they have to be equipped with beds, lockers, and furniture, as well as all ancillary equipment for the kitchen, dining room and recreational areas,” explains sales and marketing manager Denis Hourquebie. “Only then do we as a division come in and manage that process. We buy the food; we cook the food; we serve the food. It is like a mini hotel – a home away from home.”

“We try to cultivate that mindset among our team, of being a home away from home, and this is the expectation of our customers as well. They want to be well fed and rested in a secure and comfortable “Our solution encompasses environearly site establishment to ment. Our construction and handover, as clients have well as servicing of the camp and a different set of criteria its demobilisation afterwards.” though, as Andrew St Clair-Laing, MD, Fedics they are focused more on return on investment and operational future; it is part of every contract we are cost-effectiveness,” says St Clair-Laing. involved in. That is the ‘A to Z’ of our diFedics Site Services has successfully versified offering, and we have the skills completed projects as far afield as Verdanin our organisation to be able to provide ta and Tsumeb in Namibia. “We conduct that,” says managing director Andrew St business in Bostwana, Lesotho and ZamClair-Laing. bia. The Tsebo Group has a significant “Where we do not have the skills – for footprint and capabillity in Mozambique example, such as construction – we have

48 INS I DE MI NI NG 0 8 | 2 0 1 4

through Servco, which is our locally-based business that is well positioned to service our clients and customers in Mozambique. We also have aspirations to service the oil and gas sector, which will extend our reach into key countries such as Uganda, Kenya, Tanzania, Nigeria and Angola. Tsebo has extensive intellectual property in this market sector, as it currently enjoys a strong market share and track record in both Saudi Arabia and Bahrain through Karam Fedics, based in Al Khobar and Jeddah.

Huge scope in Africa “It is absolutely amazing; there are many opportunities in Africa. As long as all that wealth can find its way back into some of the infrastructure in Africa and generate prosperity for the citizens of the continent,” says St Clair-Laing. In terms of challenges, he highlights the logistics of establishing effective supply chains in remote locations as the company’s biggest challenge.

“The Moma project in Mozambique was a challenge because of its remoteness. The All Africa Games in Abuja, Nigeria, was a challenge due to the sheer size and scale and the amount of planning required. Fortunately we had smart local partners. You cannot do business in Africa unless you have progressive local partners.

“You cannot go into somebody else’s country and think that you can tell them how they should be running their business. You cannot be streetwise in somebody else’s country, because every single Africa country has its own nuances, challenges and its own set of rules in the way it works and operates.

Good governance “As an organisation, we have chosen a very moral and well-governed position. We do not tolerate any bribery or corruption. We have been around for 47 years. We will never compromise our brand, and we have lost opportunities because of our ethical position. A big challenge is finding like-minded local partners who are prepared to roll up

SITE SERVICES

their sleeves and get stuck in and do the work,” says St Clair-Laing.

Hourquebie adds: “You always have to plan for and work around any contingencies.”

Every single project that Fedics Site Services is involved with has its own dedicated health and safety manager. “Our commitment to health and safety and environmental awareness is an extension of our business philosophy. We try to take the element of risk away from the client,” notes St Clair-Laing.

He adds that the company’s employees embody a ‘pioneering’ spirit. “We employ people who think on their feet and are very solution-minded. These are people with a wealth of experience, and who know how to articulate our plans with our clients. I like to call them our ‘make-a-plan’ team. We are not a bunch of cowboys. We are highly principled; we are astute business people; we know how to make good returns and still deliver the best deal for our clients and customers. It is such an exciting part of the industry to be involved

with. Every single project is unique, and we have a good track record.”

Future growth Looking at future growth, Hourquebie says the company has its sights set firmly on Africa. “We want to move into Africa. For many new developments and projects, the money will not come from within the mining industry itself, with notable exceptions being major mining houses. At the end of the day, the impetus for new projects is going to come from foreign investors. So we are positioning ourselves to be ready now to take on the opportunities that are coming to Africa.”

St Clair-Laing adds that Tsebo has an active mergers-and-acquisitions strategy as part of its overall growth strategy. “Our intention as an organisation is to have a hub in East and West Africa, and to grow our presence accordingly, which will enable us to service our clients more diligently. We have a full-on strategy in that regard, which is revisited and revised on an ongoing basis.”

This means that the company is very responsive to changing market conditions, says Hourquebie. “Being part of the multinational Tsebo Outsourcing Group, with its pan-African footprint and 40 years’ experience, just further enriches the value we bring to our clients.”

TSEBO IN NUMBERS Staff: 20 000 Group companies: 14 Countries: 12 Sites 4 500

TSEBO FACTS AND FIGURES • TOG changes enough light bulbs to light up all ten 2010 World Cup stadiums • TOG saves its clients 15 000 MW of electricity • TOG serves enough beef to make over five million burgers • TOG uses enough milk to fill 3.7 million ice cream cones

IN SID E M IN IN G 0 8 | 2014 49

www.fedicssiteservices.co.za

www.tsebo.com

REMOTE SITE SOLUTIONS THAT DELIVER A “HOME AWAY FROM HOME” You give us a set of GPS co-ordinates, anywhere in Africa. We give you a fully operational, catered and serviced site that brings value, productivity, morale and sustainability to your remote project location.

It’s this dependable logistical capability that has allowed us to create a home away from home for remote projects in Africa since 1985.

Your African Partner in Facilities Solutions

RENEWABLES

Donâ&#x20AC;&#x2122;t let the sun go down

location, the logistical cost of transporting diesel to the site will also have to be added, as will the cost of investing in and maintaining the generators.

Now, consider the possibility of a solution that combines a diesel genset with a PV power plant to create a reliable and affordable source of electricity. Let us assume that a 10 MW AC First Solar FuelSmart solar-diesel hybrid plant is installed at an existing 15.3 MW site, with 24-hour base-load generation, in South Africa. The two sources complement each other, using a sophisticated control system that ensures stable electricity generation for optimal mining operation.

Dynamic power control

Though mining has traditionally relied on electricity grids and on-site diesel generators, there is a growing global move towards an energy source that is sustainable and more affordable than ever before: solar power. By John Eccles

E

MPLOYING SOPHISTICATED photovoltaic (PV) hybrid solutions that supplement existing power sources, such as the electricity grid or diesel generators, can help mining companies address their daytime electricity supply challenges, while minimising costs and lowering their environmental impact.

Let us examine the case of a remote mine, operating independently from the electrical grid and largely reliant on diesel generation to support its power requirements. The mineâ&#x20AC;&#x2122;s operational costs will need to factor in the price of diesel to power its generators, which is subject to international volatility in price and currency exchange. Depending on the mineâ&#x20AC;&#x2122;s

The system ensures that the power is dynamically controlled, not unlike cruise control in a car. Should cloud cover interfere with the PV plantâ&#x20AC;&#x2122;s output, the control system will compensate by increasing the output of the diesel generators to ensure stability.

Conversely, on a particularly sunny day, the system will moderate the diesel generators allowing the mine operator to maximise fuel cost savings from the elevated solar capacity.

There are numerous benefits from investing in such a system: unlike liquid fuels, sunlight is abundant, free and not subject to market or foreign exchange fluctuations. From a cost point of view, this system could hypothetically save over 84 million litres of fuel over a 25-year period, reducing the total energy generation cost by as much as R1.07 billion over the project lifetime, when compared to a diesel-only generator. In addition to these projected savings, the hybrid system could also reduce greenhouse gas emissions by over  258 300 tonnes.

50 INS I DE MI NI NG 0 8 | 2 0 1 4

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% & ' $ (

!"" # $

% ) *+, ,-. -- /& 0 &1

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RENEWABLES

While solar power is a variable resource, a hybrid combination of diesel and solar adds the stability and reliability necessary for a mining operation’s power needs. In addition to enabling operational continuity, hybrid solutions also help to extend the operational life of the generators, minimise their operation and maintenance costs, as well as reduce fuel-supply logistical costs and risks.

From an environmental perspective, they help reduce emissions, noise pollution and a mine’s overall carbon footprint.

business, innovative hybrid system solutions can provide solar energy as an alternative source of fuel, reducing fuel consumption and variable costs with reliable and affordable solar electricity.

Today, hybrid power generation solutions offer the mining industry the opportunity to take control of energy costs by leveraging solar electricity’s cost competitiveness to its advantage.

“This system could hypothetically save over 84 million litres of fuel over a 25-year period.” John Eccles, director of fuel-replacement solutions, First Solar

Value proposition By entrusting their energy generation to First Solar, with over 8 GW of modules installed globally and over 3 GW contracted, mining companies such as Rio Tinto are benefiting from a reliable and meaningful value proposition.

With cost and operational efficiencies forming the backbone of the mining RIGHT & OPPOSITE First Solar modules installed globally

IN SID E M IN IN G 0 8 | 2014 51

OPPOSITE O OP PPO POSI S TE TE T TOP OP P The Th he new new E ne En Enduron nduron cone ccrusher nd rru ussh her er b being eing ei ng iinstalled nssttaalllleed n d on o n--ssiitte iin nS outth ou outh hA fric fr ric ica on-site South Africa RI R IG GH HT T TO OP An An eelevated lle evvaate ed vie vview vi iew ew of a KHD HPGR machine being RIGHT TOP aassembled as ssem mb ble led RI R IG GH HT BOT BO B OTT TTO OM M A 3.7 m-wide Enduron horizontal screen on the RIGHT BOTTOM ttest te est s b ed aatt Wei ed We W eir ir M inerals Africa's Alrode facility bed Weir Minerals Tel: +27 (11) 826 6111 Fax: +27 (11) 826 6162 Website: www.uniqueeng.com Email: sales@uniqueeng.co.za

INFORMATION TECHNOLOGY

Keeping your assets in line The latest trend in mining is to favour reliability over cost. Giscard Lailvaux speaks to Gerhard Hope about the asset management programme being spearheaded by SKF.

T

HE MAIN AIM of asset management is to bring all of SKF’s products and services under a single umbrella, explains Lailvaux, who is in charge of segments and key accounts. These include metals, mining and energy. “We look after the business from a customer-relationship and sales-development perspective. Our aim is to upsell SKF to the point where we are able to give customers increased reliability in their production processes to the products and services we are able to integrate with them. It is a total package.”

Lailvaux says that SKF achieves this by understanding customer

applications, either by means of plant audits or application of engineering assessments. “If it is specific – such as a pump, fan or motor – technology can be applied in the form of handheld monitoring products such as an SKF Marlin unit, or complex online protection and surveillance systems that are found in turbines in the power-generation industry. There are many ways to identify what products and services we can integrate for our customers.”

In this regard, asset management is a key tool to bring all of SKF’s value to their customers. “For customers, asset management means aligning maintenance practices in the achievement of their business goals. As a discipline or practice, it entails examining how the asset behaves in order for the customer to be able to achieve those goals.”

Cost versus reliability This means that Lailvaux and his team travel extensively to visit customers, in order to assess their specific needs. “We enter into discussions about managing and caring for their assets. What is interesting is that it has changed from a purely cost-based view to one of reliability, especially in the mining industry.”

Mining is particularly capital intensive, because many ore bodies are at such a depth that operations require extensive shaft sinking and infrastructure development before production can commence. “This is why increased reliability of equipment is so important,” says Lailvaux.

“In the past it was about trying to use as many different technologies as one could find, with little cognisance of the actual cost.” Even if a budget had been compiled, this often only reflected asset price versus actual cost. “We have become much better at partitioning those costs and how we understand them, and this is where asset management really comes to the fore.”

Mining is a major focus Even with the downturn in the mining industry, it still remains a major focus area for SKF. “I would say it is our predominant focus,” says Lailvaux. “Even with the associated challenges, we are still finding ways in which to help our customers and asset management is a good example of this.”

SKF constantly strives to make the market aware of its innovation and latest developments. For example, in September the company is launching a campaign for its range

52 IN SID E M IN IN G 0 8 | 2 0 1 4

INFORMATION TECHNOLOGY

of upgraded spherical and sealed-roller bearings, aimed specifically at the mining industry. A product expert will be brought in from Europe to conduct internal training and then embark on an extensive roadshow for prospective customers. SKF has a unique approach in that it enters into specific agreements with customers in which they are provided products for the purpose of testing in operation for an agreed period – typically six months – in order to discern the reliability and efficiency benefits for themselves. “If they are satisfied, they quickly become loyal customers,” says Lailvaux.

The upgraded bearings feature improvements mainly in the heat-treatment processes and the cleanliness of the material of their construction. “The longer the material behaves in accordance with its design characteristics, the more reliability the customer can expect. Steel impurities are often the first cause of major failures,” says Lailvaux. “For customers, the benefit is an application that can run a lot longer.

Productivity increases, as things do not need to be changed out in unplanned

stoppages and there are fewer planned maintenance intervals.”

Extensive R&D SKF also has a number of service-related products such as handheld tools that it is developing constantly, based on extensive applications research in their R&D facility based in Holland. “We also have eight centres of excellence worldwide, each with a distinct single capability, while South Africa has a fully fledged solutions factory for the continent.” This allows the local company to offer the full global range of SKF’s products and services, which also encompasses reliability services such as remote analysis.

“This means that we install an online system at a customer to transmit operational data to the remote centre, where it is then processed and a report submitted back to the client, all in a seamless process, where the only human interface is the actual interpretation of the data,” explains Lailvaux. “That is another major advantage we are able to offer mining customers in particular.”

How has the mining industry responded to the concept of asset management?

Lailvaux says the industry has been quite open to the concept. “In high-risk areas of their mining operations they need to minimise the number of personnel, so health and safety, cost and environmental issues are all major drivers in this regard.”

Protection and monitoring What appeals to mining customers is SKF’s dual capability in offering systems that protect and carry out remote monitoring and control. “With something as complex as a mining operation, you not only need to ensure that the equipment is operating optimally, but you also need to know when any problems may arise.”

This is a philosophy that SKF is also taking into the rest of Africa. “Africa is a huge focus for us, as it is rich in natural resources and economies such as Nigeria are experiencing an absolute boom.”

Lailvaux says that SKF has satellite offices throughout the continent and is growing its foothold constantly in order to meet the growing demand.

IN SID E M IN IN G 0 8 | 2014 53

Voorspoed

ENVIRONMENTAL

African mining

goes green

By Vis Reddy (left), principal scientist and partner, and Paul Jorgensen, environmental scientist, SRK Consulting South Africa

M

INES IN AFRICAN countries should not wait for the inevitable tightening up of measures on climate change and carbon emissions before exploring greener energy options on mining sites, especially as there are significant cost savings to be made from fast-evolving renewable technologies.

Many operations must make their own power-supply arrangements, as they are too remote to access the national electricity grid or the supply of electricity is not reliable. This usually involves establishing diesel generation on-site, an option which both increases energy costs – because diesel must be delivered to site – and adds significantly to the carbon footprint of the mine.

Mines in Africa, like those internationally, are required to comply with resource efficiency and pollution prevention standards stipulated either by national regulaAfforestation of tions, by Equator sand tailings in Principles Financial Sierra Leone

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2nd Annual

MANAGING MINE SECURITY Date: 1 & 2 October 2014

Venue: Gallagher Estate, Midrand

SOUTH AFRICAN POLICE SERVICES (SAPS) FULL DAY WORKSHOP: Head Facilitator: Deputy Provincial Commissioner, P.E Gela

CPD Accredited

by South African Institute of Security

NOTABLE SPEAKERS CONFIRMED TO DATE: Brian Gonsalves Vice President: Global Security ANGLOGOLD ASHANTI LTD

Pravin Maharaj Head: Protection and Emergency Services KUMBA IRON ORE

Neil Metzer Security Co-ordinator CHAMBER OF MINES SOUTH AFRICA

Riana van Rensburg Senior Public Prosecutor NATIONAL PROSECUTING AUTHORITY (NPA)

Lyon Pretorius Director Safety & Security & Chief Security Officer CAPITAL CITY BUSINESS CHAMBER & BMW

De Wet Ferreira Forensic Manager DELOITTE FORENSICS y: Quote MS-IM2014 to receive a 10% discount dB pe when booking your seat. Also book and o l ve pay for 5 delegates De d& e and receive the 6th FREE ch

Mike Vester Governor SOUTH AFRICAN INSTITUE OF SECURITY (SAIS)

For more information contact Therisha on +27 (0) 11 326 2501 or email bookings@intelligencetransferc.co.za

Re

se

ar

ENVIRONMENTAL

basis, using the economy of scale and sharing facilities. Interestingly, the current push towards renewable energy in many African countries suggests that future policies and programmes in other parts of the continent will be more progressive than South Africa has been, despite the latter’s larger internal market. East African Greenhouse gas emissions countries are enthusiastically involved in the Africa Clean Power The requirements usually include quantifying and reporting on Corridor initiative, and are setting ambitious renewable-energy greenhouse gas emissions in accordance with internationally rectargets for themselves. North Africa has a planned network of soognised methodologies and good practice such as the Greenhouse lar-generated elecGas Protocol. tric schemes, which In terms of the Equator Mines in African countries should not has its eye on exPrinciples, the EPFI requires wait for the inevitable tightening up of porting electricity clients to report publicly each year if the project emits measures on climate change and carbon to Europe. over 100 000 t of CO2 anemissions before exploring greener nually. If emissions are over Hydro for smallenergy options on mining sites 25 000 t, then clients are enscale applications couraged to report publicly.

Even hydropower This can be done through voluntary reporting mechanisms such is on the table as an option for small-scale applications, and is as the Carbon Disclosure Project. being explored in countries in West Africa, as well as in the DemThe IFC’s Performance Standards on Environmental and Social ocratic Republic of Congo. Looking 20 or 30 years ahead at AfriSustainability stipulate that mines should consider energy genca’s power options, the energy mix is likely to be very different, eration and usage alternatives, and “implement technically and and this will no doubt bolster any efforts that mines are making financially feasible and cost-effective options to reduce project-reto find clean energy solutions. Indeed, reliable and affordable lated greenhouse gas emissions during the design and operation technologies in renewable energy may well open up opportuof the project”. This could include use of renewable energy for nities for mining in areas where access to conventional sources generation and driving increased energy efficiency of operations. was prohibitively expensive.

Institutions (EPFI) like the International Finance Corporation (IFC), or by index listing requirements such as the Dow Jones Sustainability Index.

Useful and reliable accounting systems Developing useful and reliable accounting systems for monitoring carbon emissions is a lengthy process, but is key to proactively managing risk and insulating the business from the effects of future regulations, especially as more onerous climate change policies are on the way in most developing countries.

It is easier to adapt the systems and measures in place rather than trying to address the problem retroactively. South Africa has committed itself to applying a carbon tax, for instance, although it is not yet clear when it will be imposed and how the grounds for exemption will be negotiated.

Treating cleaner energy as a ‘nice to have’ instead of a necessity would be missing a valuable opportunity. There is merit in being more innovative about managing greenhouse gas emissions, especially taking advantage of improved smallscale renewable energy generation technologies.

Africa’s abundant sunshine Africa’s climate, and its abundant sunshine in particular, can open up various opportunities for improving a mine’s bottom line. Regardless of the scale of the operation, a mine could benefit from renewable energy as a strategy to gain a measure of energy independence – not just from an unreliable grid, but from the carbon-based fuels traditionally used on-site. There are already quite a few small-scale solar-power projects that have proved successful in supplying capacity of up to 10 MW, enough power to run a factory process or a small mine.

Opportunities also lie in the fact that mines often exist in clusters, where operations mine the same or adjacent ore bodies. In an ideal world, it would make sense for neighbouring mines to investigate energy solutions on a cooperative I N S I D E M I N I N G 0 8 | 2 0 1 4 55

ELECTRICAL

Igniting

sparks

Leading electrical construction company Enl Electrical is poised to open facilities in Liberia and Namibia.

ABOVE Installation of electrical control panels at a site in Africa LEFT EnI Electrical has completed projects throughout Africa

E

NI ELECTRICAL IS committed to a long-term vision of changing the way electrical construction work is conducted. The company aims to achieve this by applying the same principles its holding company, the Zest WEG Group, has harnessed to achieve its own extensive growth and success.

“We intend to become the largest electrical construction company in Africa,” comments managing director Trevor Naudé. This is in line with the greater WEG Group’s global growth strategy,

which is expected to increase its sales by at least 17% year-on-year until 2020, arriving at a turnover of $10 billion.

Shifting dynamics “We are cognisant of the ever-changing needs of our market, as well as the shifting dynamics of our clients’ requirements,” says Naudé. “Our response is to challenge the market’s perception of electrical construction as a sector characterised by low tender pricing and utilising scope changes to be profitable.

“Instead, we have adopted a strategy based on forming long-term client relationships. This is not a catchphrase. We are actually ‘walking the talk’ by ensuring we understand the basic project requirements and mitigating against scope changes during the initial pricing stage.”

Over the past three decades, EnI Electrical has established a solid track record for successfully completing electrical construction projects. Since the Zest WEG Group acquired the company in 2008, processes and procedures have been developed to take this successful medium-sized company to the level where it will be acknowledged as a world-class player.

“This is particularly significant given that much of the work being done is in Africa, with some 70% of the company’s revenue being generated outside South Africa’s borders,” says Naudé. “Operating in Africa requires a certain mindset. It is essential for companies to clearly understand the factors that drive successful project execution in this region, including the issues associated with logistics.

INDEX TO ADVERTISERS B&W Instrumentation and Electrical Cote d'Ivoire International Mining Summit De Beers Consolidated Minerals Derrick Solutions International Africa Drillcon Electra Mining Africa Fedics Site Services FLSmidth Hencon Vacuum Technologies Investing in Resources & Mining in Africa Jozi Power

56 INS I DE MI NI NG 0 8 | 2 0 1 4

14 29 33 47 11 2 49 43 50 4 17

JVT Vibrating Equipment Kimberley Diamond Symposium Loesche Liugong Managing Mine Security Manitou M&J Engineering Model Maker Systems Multotec Group NOSHCON Process Vacuum

52 25 45 27 54 34 24 55 41 7 6

Redpath Mining South Africa

15

Roymec Technologies

31

Schneider Electric

IFC

Sub Sahara Power Distributors

OBC

Tega Industries

OFC

ThyssenKrupp Unique Engineering

53 51

Weir Minerals

IBC

WorleyParsons

39

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For more information contact us on +27 (0)11 9292600

To learn more about Enduron® machines go to : weirminerals.com/enduron.aspx Copyright © 2014, Weir Slurry Group, Inc. All rights reserved. ENDURON is a trademark and/or registered trademark of Weir Minerals Europe Ltd; WEIR is a trademark and/or a registered trademark of Weir Engineering Services Ltd.