Inside Mining August/September 2018 by 3S Media

www.miningne.ws

af r ic an u pdates on th e

g ro un d a n d un d e rg ro un d

Legislation What’s hampering local M&A activity?

Electra Mining

Showcasing the best in the industry

Coal

Breaking new ground in Belfast

solar MINING SERVICES

A blast fit for purpose

HOT SEAT Our brand independence has a number of advantages because it enables us to make unbiased recommendations, only considering what the best tyre would be for a specific application.” John Martin, VP: Southern Africa of Kal Tire’s Mining Tire Group P8

ISSN 1999-8872 • R50.00 (incl. VAT) • Vol. 11 • No. 05 • August/September 2018

Babcock Branches Bartlett +27 (0)11 230 7300 Botswana +267 390 2869 Bloemfontein +27 (0)51 432 1226 Cape Town +27 (0)21 380 4700 Durban +27 (0)31 700 6009 East London +27 (0)43 703 0400 George +27 (0)44 878 1035 Kimberley +27 (0)53 832 3443 Middelburg +27 (0)13 001 1234 Mocambique +258 84 265 2397 Nelspruit +27 (0)13 001 1280 Port Elizabeth +27 (0)41 407 5900 Richards Bay +27 (0)35 751 1180 Rustenburg +27 (0)14 592 6150 Steelpoort +27 (0)13 230 9054 Swaziland +27 (0)11 230 7300 Wolmaransstad +27 (0)18 596 1514 Windhoek +264 61 305 560/3 Zambia Kitwe +260 212 216 200 Lusaka +260 211 127 2926/28 Zimbabwe +27 (0)11 230 7300

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contents

a f r ic a n u p date s o n th e g ro u n d a nd

u n d ergro un d

08 Regulars 3 Ed’s comment 6 Africa round-up

the future of mining

Electra Mining

SEW-Eurodrive’s

25 A springboard for Powermite

frequency inverter series

26 SEW on the future of mining

will take centre stage at

Cover Story

29 Introducing drilling game changers

Electra Mining Africa 2018.

4 A blast fit for purpose

31 Global compact earthmoving brand

38 Market news

refocuses in the local market

Hot Seat 8E very tyre tells a story

Project: Coal 14 Belfast mine set to break new ground Commodity: Coal

2018

efficiency solutions

DIAMONDS 12 Partnering for safer blasting

IT & Communications

36 Zooming into the future of surveillance in mining

Legislation

Water management

18 What’s hampering local M&A activity?

35 F ive steps towards sustainable water management

Industry Insight

23 Junior miners still struggle against system in SA

surveying 24 Drone technology optimises surveying

Women in Mining 37 The fairer side of AEL Event 40 The 2018 Joburg Indaba

@mining_news www.facebook.com/pages/ Mining-News

ON THE COVER p4

33 Mobility becomes mainstream for Anglo

16 Anthracite: The rock aristocrat

20 Nornickel litigation saga continues

AUGUST/SEPTEMBER

32 S mart service and fuel-

The cost of running a quarrying or mining business in South Africa is escalating, with energy, maintenance and labour being significant drivers. Charles Hurly of Solar Mining Services explores what it takes to get the most out of your blast.

Endorsed by In sid e M in in g august/se pte m be r | 2018

We move mountains for milligrams

intelliBlastâ&#x201E;˘ is a holistic and flexible approach to help customers on their unique journey to optimal blast outcomes. Through optimal energy expenditure we ensure predictable blast outcomes for significant profit growth.

AEL Mining Services Tel: +27 11 606 0000 E-mail: company.email@aelms.com www.aelminingservices.com

editor's comment

Publisher Elizabeth Shorten Editor Mpinane Senkhane Journalist Phila Mzamo Contributor Justin Ludik Head of design Beren Bauermeister Designer Ramon Chinian Chief sub-editor Tristan Snijders Sub-editor Morgan Carter Client services & production manager Jayshree Maharaj Production coordinator Jacqueline Modise Financial manager Andrew Lobban Distribution manager Nomsa Masina Distribution coordinator Asha Pursotham Printers United Litho Johannesburg Tel: +27 (0)11 402 0571 ___________________________________ Advertising Sales

Jodi Haigh Tel: +27 (0)11 467 6224 jodih@lantic.net Jenny Miller Tel: +27 (0)11 467 6223 Email: jennymiller@lantic.net

___________________________________

Countdown to Electra mining 2018

his September, leading players in

This issue would not be complete without our

the mining industry will convene

informative Electra Mining section, starting on

at the Expo Centre in Nasrec for

page 22, which looks at some of the exciting

Electra Mining 2018, to engage with

developments visitors to Electra Mining can

stakeholders and share information on the

expect to see at the stands. I am especially

latest products, services and solutions. I

excited about some of the new innovations

couldn’t be more excited.

and energy-efficient solutions on display.

As anticipation builds ahead of Electra,

And, finally, being Women’s Month this

I am certain this year’s instalment will be

August, I am very pleased that we get to

both insightful and informative, playing

showcase some of the exceptional women

host to the launching of new products and

of AEL Mining Services on page 37. As a

services across the industry. This comes not

woman, and proponent of the industry, I

a moment too soon, as we are beginning

always look forward to celebrating women

to see an improvement in the local

in the sector because – from pit to port –

mining environment.

the role they play across the value chain is

Despite the ongoing Mining Charter woes, it is encouraging to see businesses within

often overlooked.

the industry stick it out and invest further

Erratum

150 Rivonia Road, Morningside 2196

in operations in South Africa. For example,

On page 27 of Inside Mining June/July,

PO Box 92026, Norwood 2117

Solar Mining Services, taking prime position

AEL Mining Services was erroneously referred

Tel: +27 (0)11 233 2600

in this exciting issue of Inside Mining, is more

to by the company’s former name, AEL

Fax: +27 (0)11 234 7274/5

committed than ever to providing solutions

Blasting Solutions, in the descriptor box.

www.3smedia.co.za ___________________________________

to the industry. Charles Hurly, marketing

The editorial team regrets the error and

lead at Solar Mining Services, explores what

extends its apologies in this regard.

Annual subscription:

it takes to get the most out of your blast,

South Africa: R330.00 (incl vat & postage) Foreign: POA Email: subs@3smedia.co.za ISSN 1999-8872 Inside Mining Copyright 2018. All rights reserved. ___________________________________ All material in Inside Mining is copyright protected and may not be reproduced either in whole or in part without the prior written permission of the publisher. The views of contributors do not necessarily reflect those of the publishers.

especially in light of the escalating costs of running a quarrying or mining business in South Africa, with energy, maintenance and

Mpinane Senkhane

labour being significant drivers. And on the topic of commitment to the industry, John Martin of Kal Tire SA is in the Hot Seat this issue, and discusses how the business has been able to maintain an enviable reputation as a leading service provider to the earthmover tyre market. This has been maintained even with mining operations constantly being challenged to maximise the efficiency of the equipment they operate, including the tyres that ultimately carry the load. See page 8 for more. M&A (mergers and acquisitions) activity hit a four-year high in 2017, according to EY. In

To our avid readers, be sure to sign up and get the latest updates and inside scoops from the mining industry. Check out what we are talking about on our website and Facebook page, or follow us on Twitter and have your say.

the first quarter of 2018, global M&A activity rose 86% from the year before. Yet despite this global trend, Allan Reid of Cliffe Dekker Hofmeyr believes that local uncertainty is keeping mining M&A activity in South Africa from reaching its full potential. Read more about this and some other considerations

@mining_news www.facebook.com/pages/ Mining-News

in our legislation piece on page 18.

editor

In sid e M in in g august/se pte m be r | 2018

COVER STORY

A BLAST FIT FOR PURPOSE The cost of running a quarrying or mining business in South Africa is escalating, with energy, maintenance and labour being significant drivers. Charles Hurly, marketing lead, Solar Mining Services, explores what it takes to get the most out of your blast.

uarrying relies on various

viscosity, chemical stability of emulsions,

attributed to explosives performance.

inputs and efficiencies

and predictable velocity of detonation.

Manufactured quality ‘down the hole’

based on an accurate

If these parameters are all in check, the

is of paramount importance, as this can

budgeted cost per tonne

explosives will predictably perform work

affect energy values and the reliability of

down the borehole.

detonation, which have bearings on the

for aggregate and acceptable margins from a typically fixed sales price. Costs need to be managed stringently and

Quality explosives

One could apply a similar logic to

throughput increased to achieve higher

Of course, the real measurement

companies in the automotive industry,

returns. As explosives form a large cost

of a good or brilliant blast can be

which take similar uncompromising positions

of operations, one needs to understand

complicated to assess, given all

on stipulating what fuels, coolants, oils and

what defines a ‘good blast’, and the

variables. Typically, blaming poor

even tyres are used with their vehicles to

impact on profitability.

explosives quality, poor drilling control,

ensure their marketed performance and

suboptimal timing designs, to name a

reliability meet customer expectations.

Using known and consistent values

Quarrying operations are no different. It is

of raw materials in the manufacturing

few, often happens. The management

process of explosives will equate to

of these factors, poor planning, and

the sum of all the components that makes

measurable results. This means that the

poor control measures add to the mix.

for a successful blast. Proper planning,

procurement of vetted raw materials in

Part of the solution lies in ensuring the

bench preparation, correct drilling and

the manufacturing process for explosives

quality and reliability of the explosive

checking of boreholes to planned spacing

will ensure the consistent quality and

used, as this can rule out potential issues

and depth are key points of departure.

cost proposition of the final product – so that customers can have confidence in the explosives products they purchase and that these perform in a reliable and consistent manner. This allows operations to form a departure point or baseline to measure improvements and concentrate on other areas that need attention. In explosives, this could include consistency of

fragmentation and ‘dig-ability’ results.

Ins i de Mi n i n g au g u s t / s e p t e mb e r | 2 0 1 8

COVER STORY

Fit for purpose

nitrate index, or when looking at grinding

These are underpinned by an effective

media, the Scrap or CRUspi Longs Index.

timing design of the blast, together with

One should study indices for information

competitively priced, fit-for-purpose

to help understand prices when making

explosives and then ensuring that proper

purchasing decisions.

procedures and safety stabndards are

If companies don’t proactively look

adhered to at all times. It is imperative

into pricing components, they may end

that each of these stages is given the

up not getting competitive pricing. At

time required. If the basics are taken

the same time, suppliers may offer value-

care of properly, then one will achieve

added services, which would end up

a successful blast.

costing more. It is, therefore, important to

Successful blasts form a large part of

service is being delivered, and how this

they speak to efficiency. To establish

affects the bottom line. indices, it becomes easy to anticipate

costs form a notable percentage of

legitimate price increases from suppliers.

mining contractor costs; in explosives,

It’s also easier to avoid what is referred

nitrate prices, along with the fuel phase,

to as formula creep, which is where

are among the biggest cost drivers.

a pricing formula either pushes the

Ammonium nitrate is a significant

prices excessively up or down over

component for emulsion explosives.

extended periods of time. These formulas

In South Africa, explosives could

need to be revisited and validated at least once a year.

be priced based on international

The Solar Mining approach

ammonium nitrate indices where

Solar Mining Services, a new dynamic

relevant. Keeping tabs on the

entrant to explosives and related

ammonium nitrate price index can assist

services for the mining and quarrying

with decision-making. In understanding

sectors in South Africa, can offer a tailor-

these dynamics, a customer can see

made approach to assist its customers in

which methodology allows for a better

understanding the price curve.

comparison of explosives prices. (Once

Solar prices for fit-for-purpose

these steps are completed, you’ll

solutions, avoiding the use of a generic

have the information you need to start

pricing model as prescribed by an

negotiating for lower prices without

ammonia index, and rather using an

compromising on quality.)

ammonium nitrate indexed formula

To remove the risk component in

and explosive related services for the mining and quarry sectors in South Africa offering tailor-made approach to assist its customers in understanding the price curve.

If one keeps track of prices and market

focus on each component. Blasting

Indices for transperancy

Is a new dynamic entrant to the explosives

consider what is being paid for and what

production and processing costs, as a total ownership model, one has to

Solar Mining Services

that reflects its business model, to

supplier prices, either a rise-and-fall price

keep the input costs as competitive

formula or monthly/quarterly pricing is

and transparent as possible for its

usually adopted. One should link the

customers. The bottom line is that it’s

pricing to third-party price indices, such

time to consider ammonium-nitrate-

as the aforementioned ammonium

based index pricing.

www.solargroup.com

HEADING PLEASE

Mining news

from around the continent

SIERRA LEONE Da Yu Mining Company is currently constructing a water dam for the Kafe Chiefdom in Tonkolili

Sierra Leone

locals are part of us and, therefore, we

an extensive, transparent and

are always ready to provide a better

comprehensive disposal process, which

facility, almost similar to those in the

involved a rigorous due diligence

In fulfilment of President Julius Maada

capital city.” Yang said the company is

exercise on the bidders to acquire the

Bio’s New Direction trajectory

speedily trying to hand over the facility

mine. The diamond group explains that

development plan to provide

to the people, as safe drinking water

the disposal process was unsuccessful in

sustainable pure water facilities in

and hygienic toilets protect people

identifying a suitable operator that met

the rural communities, Da Yu Mining

from disease and enable societies to be

the specified criteria and, therefore,

Company is currently constructing

economically productive. He said the

the closure process will now be initiated

a water dam for Kafe Chiefdom in

government of Sierra Leone cannot do

in accordance with the company’s

Tonkolili District, northern Sierra Leone.

it alone, adding “this is why we are

values and with due consideration to

coming to the aid of the community.”

employees and host communities.

Da Yu Mining to spend US$100 000 on water dam

The project, after completion, will have cost US$100 000. According to

Phillip Barton, CEO of DBCM, says,

the company’s managing director,

“Our priority throughout the disposal

Yang Chong Qiu, Da Yu is working

South Africa

process has always been the safety

Direction to ensure the availability and

De Beers closes Voorspoed mine after 10-year run

sustainable management of water and

The De Beers Consolidated Mines

committed to ensuring that any

sanitation for all.

(DBCM) board has taken the decision

potential future operator would not

to proceed with the responsible closure

only have the required technical and

age-old bilateral relationship between

and rehabilitation of Voorspoed

financial capability, but also values that

China and Sierra Leone,” he told

Mine in the Free State. According to

are aligned with those of DBCM.

journalists. He added, “We believe the

the company, this decision follows

strongly to support the country’s New

“We are here to stay, considering the

and well-being of our employees at Voorspoed Mine and we were

“Unfortunately, we have not been able to identify a bidder that meets the necessary criteria and so we

SOUTH AFRICA

have reluctantly taken the decision to

The DBCM board is proceeding with the responsible closure and rehabilitation of Voorspoed Mine in the Free State

close the operation, in a responsible manner, as it is no longer economically viable for DBCM to operate the mine,” he concludes.

uganda

Ministry moves to register all miners The Ministry of Energy and Mineral Development will biometrically register Uganda’s artisanal and small-scale miners (ASMs). The State Minister for Minerals, Peter Lokeris, says the

Ins i de Mi n i n g au F EBg/ u MAR s t / s|e2p0t1e8mb e r | 2 0 1 8

registration will establish who is involved

Deputy Minister for Minerals Dotto

local Sakunda Holdings, which is

in artisanal and small-scale mining.

Biteko ordered a team of experts from

the minority shareholder, ACF has

the Mineral Commission to appraise all

tripled production levels to 30 000 t of

government. But there are some people

licences and processes to ensure mining

chrome ore per month since it started

who know how to spot minerals and

activities are conducted legally.

operations in 2014.

“You know all minerals belong to the

start mining illegally,” Lokeris says. He

The deputy minister formed the team

The sixth state-of-the-art plant is

says, the biometric registration is meant

in June 2018, to inspect the mining

not only set to further increase the

to streamline artisanal and small-scale

sites in Morogoro region’s Mahenge

company›s range of products through

mining so that industry and government

and Ulanga districts, following his

the addition of ultra-low carbon high

can know who they are.

tour of Ulanga, where he discovered

grade, but is also going to boost

huge smuggling of minerals, resulting

employment creation.

“If the government does not know who is involved in artisanal and small-scale

in massive tax evasion – denying

mining, some of the ASMs could cross

the government of its due revenues.

borders,” he concludes.

“The report from the team of experts

Kick-off

confirmed various shortfalls at Epanko

ZIMBABWE

mines. Currently, the government is

President Emmerson Mnangagwa commissioned a chrome plant close to Kwekwe

According to a House Budget

getting royalties and taxes amounting

Committee May 2018 report, biometric

to only TSh25 million (around R90 000),

registration of the ASMs will cost

which is peanuts considering the scale

US$350 000 (about USh1.3 billion). Lokeris

of the mining activities at the mines,”

says the ministry is targeting 1 200 ASMs

said Biteko.

for a start but would register more and more with time.

tanzania

Biteko halts mining operations at Epanko

zimbabwe

President commissions chrome mining plant

“The Aluminothermic Beneficiation Plant is a very exciting step both for our flagship operation and for

President Emmerson Mnangagwa has

the development of Zimbabwe’s

commissioned a new aluminothermic

ferrochrome industry,” said Ashruf Kaka,

Operations at Epanko Spinal mines in

plant at African Chrome Fields (ACF),

national projects liaison officer at ACF.

Ulanga District have been halted, in

about 60 km from Kwekwe.

order for government to thoroughly check mining licences and processes.

Majority owned by the Moti Group of South Africa and the

“Zimbabwe currently sits on over 12% of the global chrome reserves and we want to help the country fulfil its true potential as a major global player in the production and beneficiation of this vital stainless steel ingredient.” Speaking at the commissioning of the plant, President Mnangagwa said the mining sector continues to play a pivotal role in the economic developmental trajectory of the country. “Our country is endowed with vast minerals available for exploration, exploitation, value addition and beneficiation,” Mnangagwa said.

hot seat

EVERY TYRE TELLS A STORY

olistically, Kal Tire’s Mining Tire Group has an extensive presence in all the mining districts across five

continents. Over the years, it has built

Mining operations are constantly challenged to maximise the efficiency of the equipment they operate – including the tyres that ultimately carry the load. Kal Tire South Africa has an enviable reputation as a leading service provider to the earthmover tyre market, and Vice President: Southern Africa John Martin explains why.

a reputation for innovation, reliability and outstanding service – standards that the local arm Kal Tire South Africa has fiercely maintained. “Initially, our Kal Tire customer base included a number of underground operations, but we were primarily focused on surface mining operations; however, after an acquisition of Tyre Corporation last year, Kal Tire now has about 1 500 people in the Southern African region, of which about 1 060 are currently in South Africa,” Martin explains. A mining engineer by profession, Martin joined Kal Tire in April 2017, a month before the acquisition was complete – an interesting time in the business, to say the least. “Although, at the time, I didn’t have a history in the tyre business, I do have a clear understanding of the demands of mining operations, which has been particularly beneficial. The South African office is the main

Ins i de Mi n i n g au g u s t / s e p t e mb e r | 2 0 1 8

support hub for the Southern African region, that includes Botswana, the DRC, Mozambique, South Africa,

John Martin, Vice President: Southern Africa, Kal Tire’s Mining Tire Group

Tanzania, Zambia and Zimbabwe, with South Africa representing the biggest part of the market for Kal Tire. We are very pleased with the company performance in Zambia and have some fairly aggressive strategies to further expand our footprint in the Southern African region,” he says. As a service provider to the mining

“Our independence has a number of advantages as it enables Kal Tire to make unbiased recommendations when determining what the best tyre would be for a specific application.”

industry, Martin says that Kal Tire prides itself on the quality of the services it is able to offer customers. “The South African operation is

a massive investment. For example, a

high risk to manage such large

dominated by underground operations

surface mining operation may have

vessels under pressure, and therefore

thanks primarily to the business that

100 trucks on-site, with about 600 tyres

requires the right training, equipment

came with the acquisition. With the

in total, at a cost of US$40 000 per tyre

and safety procedures when

regular and ongoing access to the rest

(R540, 000) – that’s hundreds of millions

of the global organisation, we often

of Rands invested in tyres.

bring in expertise from our operations

“A tyre is essentially a ground-

managing these tyres.. With the combination of these considerations, Martin says Kal Tire

in Canada, Latin America and West

engaging tool, which requires a clear

has been able to develop tyre

Africa, to boost and bolster our skills

strategy that maintains not only the

management strategies for a number

and operations in South Africa.

tyre but also the operations, to ensure

of different projects in the region. In

“In principle, our purpose at Kal Tire

that the tyre is not damaged and is

doing so, the company has been able

is to help our customers attain the best

adequately maintained, just like any

to significantly minimise operational

value and return from their tyres, by

other part of a truck or a loader,”

downtime, that would normally be

extending the life of the tyres as far as

Martin explains.

attributed to tyre related failures.

possible and increasing operational

To develop an adequate tyre

productivity through a well-managed

strategy, Martin advises that a

Independence is critical

tyre strategy,” adds Martin.

number of components need to

As a part of its unique offering, Kal Tire

be considered:

South Africa operates independently

• F inding the right tyre best suited for

from all tyre manufacturers, and this

Tyre strategies Kal Tire adopts a fact-finding,

the specific operation, so the client

unfettered approach has proved

solution-building methodology that

will get the maximum life from the

beneficial in numerous ways.

ultimately guides the formulation of

investment.

a suitable tyre strategy, aimed at

•H ow maintenance on that tyre will

“The independence has a number of advantages as it enables Kal Tire

maximising the cost-effectiveness of

be carried out with the services,

to make unbiased recommendations,

the tyres and helping to enhance

competencies and capabilities

when determining what the best tyre

operational performance.

available, so as to extend the life of

would be for a specific application.

“When you consider the kind of

the tyre and maximise the uptime.

When associated with a specific tyre

money our mining customers spend

• T he most important part is the safety

manufacturer, one would naturally try

on tyres annually, you realise that it is

around the tyre. It is, by definition,

to recommend the best-suited tyre

FAST FACT A surface mining operation may have 100 trucks on-site, with 600 tyres, at a cost of US$40 000 per tyre

Seeing the big picture. The future of mining

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10 - 14 September

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hot seat

“Kal Tire’s main objective is to make sure the client experiences minimal downtime – we do this through the competence of our people, as well as the innovation and technology we incorporate in our service offering.” available from your product offering.

solution is one of Kal Tire’s core

in underground mining operations in

At Kal Tire, we do not have this

competencies, making Kal Tire the

South Africa. Through this offering,

constraint,” Martin continues.

service company of choice.

clients have been able to significantly

Kal Tire has access to a wide variety

“We compile and prepare extensive

increase the time spent producing,

of tyre brands, from all the major

site severity studies and analyses, and

that would have otherwise have been

manufacturers, as well as the Tier

one of the key areas we are interested

lost,” Martin adds.

2 and Tier 3 products, covering all

in is the site’s scrap pile; this gives us an

For surface miners, Kal Tire has

performance options and price points.

understanding of the history of the site.

access to a number of innovative

With this wide variety of options, the

Each tyre tells a story – it tells you the

solutions that can be introduced to

business has been able to record

mining conditions, operator habits, as

mitigate downtime. For example, the

and accumulate vast amounts of

well as the most failure modes..

business has access to a deflation

data from many years in the industry,

solution that deflate tyres in about

and often pulls historical records to

Proximity is key

relate data to specific site conditions,

With downtime on a machine being

take, resulting is faster turnaround

when making recommendations

an expensive inconvenience, it can

times. “We have also developed a

for applications.

end up affecting the bottom line quite

system called GAS (Gravity Assist

significantly if not resolved timeously –

System), which gives the technician a

something Kal Tire tries to prevent.

weightless feel when they are moving

“In all cases, our recommendations will maximise the life of whichever tyre we recommend, as we establish a

half the time it would normally

“One of the strategies we adopted for

these very heavy tools around the

deep understanding of the customer’s

Kal Tire here in South Africa is to locate

hub to loosen the 60-odd bolts that

needs, always,” Martin asserts.

our operations close to where our

hold a tyre. This is a solution we will

customers’ sites are. We have branches

be showcasing at Electra Mining this

in almost all the primary mining districts,

year,” he shares.

The process

With a number of exciting

He explains that when Kal Tire

such as Steelpoort, Rustenburg, the

becomes engaged with a client, a

West Rand, the Northern Cape and

innovations showcased this year,

significant amount of time is spent

Free State. We targeted these areas

Kal Tire is excited to demonstrate

studying the site. Factors such as

primarily because we understood

its offering to the market at one of

the loading conditions, haul road

how important it is to be close to our

Africa’s premier mining events.

conditions and haul length, and

customer base. Our service technicians

the speed at which the machines

are often site-based, supported

sure the client experiences minimal

travel, all impact on the performance

by the regional Kal Tire structures,

downtime – we do this through the

of a tyre – this applies to both

demonstrating our commitment to

competence of our people, as well

underground and surface operations.

professionally servicing our customers,”

as the innovation and technology we

Every site is unique and often complex,

says Martin.

incorporate in our service offering,”

therefore finding the right technical

An innovative approach Punctures are a common problem on pneumatic tyres and having to change tyres, specifically in an underground mining environment, is particularly

“Kal Tire’s main objective is to make

Martin concludes.

Visit Hall 5, booth C5, at Electra Mining this year to experience the innovation first-hand.

challenging due to the lack of space and access. To resolve this challenge, Kal Tire introduced Tyre Fill, which is a polyurethane fill pumped into the tyre chamber, totally eliminating any downtime as a result of punctures. “This innovation was introduced some years ago and is predominantly used

www.kaltire.com

In sid e M in in g august/se pte m be r | 2018

Diamonds

Partnering for safer blasting Cullinan Diamond Mine, in collaboration with BME, is planning to gain further improvements in safety, mining efficiencies and productivity while reducing mining costs, through the recent implementation of a centralised blasting system across the underground operation.

ullinan Diamond Mine,

According to Neil Alberts, product

“When designing a CBS solution, we

owned and managed by

manager: Technology and Innovation at

studied not only South African mining

Petra Diamonds since 2008

explosive expert BME, engagement with

regulations but the requirements and

and previously known as

Cullinan began as early as 2016 – when

standards for other key mining markets –

Premier Mine, is located to the east

BME was finalising the development of

as the system would need to be globally

of Pretoria. The mining operation is

its Axxis centralised blasting system (CBS)

compliant, offering a complete blasting

rich in South African history, as mining

– with the system’s first blast at Cullinan

solution,” asserts Alberts.

commenced in 1903. It employed some

being initiated in March 2018.

14 000 people at the time of the First

Better blasting

gem diamond – the world’s largest gem

“Based on our market-leading Axxis

mine, which began in December 2017,

diamond to date.

GII electronic detonator, our CBS

included extensive engagement with

allows underground mining operations

internal and external stakeholders. With

rapidly ramping up production and is

to initiate blasts from a safe and

safety as a key consideration, the system

close to steady-state full production.

convenient place on surface,” says

offered improved control over seismicity

The C-Cut supplemented by primarily

Alberts. “It also features real-time

(where relevant) and reduced risks of

the CC1 East block will deliver the ROM

local monitoring with remote access

underground employees coming into

production and is expected to reach

monitoring capabilities with cloud-based

contact with potentially harmful gases

±4 Mtpa from the 2019 financial year.

data storage, greatly improving the

and fumes emitted by explosives.

The Centenary Cut (C-Cut) project is

“Following a period of significant investment by the Petra Diamonds

Safety priority

World War and produced a 3 106 carat

pre-blasting and post-blasting decisionmaking process.”

The implementation of the CBS at the

“In terms of the blasting itself, the CBS offered a number of safety features,”

Group, with expansion projects reaching

A programme of trials was arranged

says Alberts. “Each centralised control

end state and the group now embarking

between Cullinan Diamond Mine and

box is equipped with a unique security

on steady-state operations, a key

BME, to install the CBS underground

key to prevent unauthorised access,

strategic objective of Petra Diamonds

and run a series of field tests in terms of

and the unit will not fire should a

is to optimise value from its operations.

SANS1717 for the design of detonator

cable fault be detected. Each unit is

Unlocking value during shift changes

initiation systems for mining and civil

enclosed in a safe, quality housing that

and doing so safely and in a systematic,

blasting applications. A trial certificate

complies with IP65 ingress protection

controlled and consistent way, assists

from the Inspection Authority was also

standards, and the system will not

in realising this strategy,” says Johan Du

secured, and issued by the Department

fire if there is no uplink between the

Plooy, drill and blast engineer at Petra.

of Mineral Resources.

system components.”

Ins i de Mi n i n g au g u s t / s e p t e mb e r | 2 0 1 8

diamonds

Fast facts

Johan Du Plooy (left), drill and blast engineer, Petra, and Neil Albert, product manager, BME

and demand effort and time to travel between, making any localised blast system complex to manage, timeconsuming and more prone to blast

•C ullinan mine is one of the world’s most celebrated diamond mines and the source of the two largest diamonds in the British Crown Jewels •C ullinan earned its place in history with the discovery of the Cullinan diamond in 1905, the largest rough gem diamond ever found at 3 106 carats •C ullinan contains a world-class gross resource of 192.7 Mcts (including 17.3 Mcts in tailings) as at 30 June 2017, which suggests its mine life could be significantly longer than the current mine plan to 2030

failures and safety breaches.”

Benifits

loading and a smoother flow of ROM ore into the crushing and milling circuit.

From a production perspective, the use

The computerised system also allows for

of electronic detonators in underground

post-blast evaluations and pinpointing of

bulk mining – particularly where the ring

possible problematic areas underground.

blasting method is employed – has a number of benefits “Electronic detonation improves the

With the ability to thoroughly test the complete blast circuit up to each detonator in each blast area prior to the

reliability and precision of the blast,”

blast, it is expected that blast events will

says Alberts. “Blast reliability reduces the

consistently deliver the expected results

risk of ‘hang-ups’ in the draw bell, as

safely, every time, on time and within a

the system can check each detonator

smaller window, allowing for shorter shift

Du Plooy adds, “Similar to more

remotely before the blast is initiated. The

changes and optimised value.

conventional mines that mine multiple

precision of electronic detonators also

narrow reefs on different elevations

results in less damage to the hanging wall

collaboration between the Cullinan

simultaneously, Cullinan Diamond Mine

and sidewalls, so the risk of unexpected

Diamond Mine and BME teams, who had

also exploits different mining blocks

dislodgement from the rock mass after

to review a range of obligations such

within the sub-vertical kimberlite pipe

the blast is significantly reduced.”

as risk assessments, blasting procedures,

intrusion on different horizons across the pipe. Mining blocks are remote

Better rock fragmentation is another important benefit, as this facilitates easier

Alberts highlights the high level of

training materials, change management and legal compliance.

PROJECT: COAL

Belfast mine set to break ground

South Africa’s largest coal producer and blackempowered mining group, Exxaro, has broken new ground on a R3.3 billion, first-of-its-kind digital mine.

mine, which will allow management and the contracted company to Nkangala District Municipality’s GDP estimated to gain as much as R2.1 billion per annum, including R966 million – a full

1% increase – of direct impact on the district municipality. Overall, the BIP is

anywhere. The maintenance teams will be connected to certain machinery to analyse and pick up problems early – resulting in increased safety and reduced downtime. The mine sod-turning was attended by

he Belfast Implementation

anticipated to reduce unemployment in

Mxolisi Mgojo, CEO, Exxaro Resources;

Project (BIP) – the last good-

the municipal district by 2%, supporting

Geraldine Fraser-Moleketi, board

quality A-grade, high-yield coal

Exxaro’s strategic vision of powering

member, Exxaro Resources; Refilwe

deposit in Mpumalanga – will

better lives in Africa and beyond.

Mtshweni, premier, Mpumalanga

start producing thermal coal in 2020.

connect to and manage it from

The project is set to create close to

A digital twin

6 000 direct and indirect jobs during

Exxaro’s new mine – which is located

construction and the life of the mine,

about 10 km south-west of Belfast, on

with almost 20 000 people benefiting,

the southern side of the N4 highway – is

directly and indirectly. It is expected

also the first of its kind in South Africa

to contribute R39 billion to local

to have a ‘digital twin’. The digital twin

GDP over the life of the mine, with

is a complete digital replica of the

Ins i de Mi n i n g au g u s t / s e p t e mb e r | 2 0 1 8

Provincial Government; Thomas D Ngwenya, executive mayor, eMakhazeni

ABOVE L-R: Mxolisi Mgojo, CEO, Exxaro Resources; Geraldine Fraser-Moleketi, board member, Exxaro Resources; Refilwe Mtshweni, premier, Mpumalanga; and Thomas D Ngwenya, executive mayor, eMakhazeni Local Municipality

PROJECT: COAL

Breaking down Belfast IP: INVESTMENT: The Belfast Implementation Project will cost R3.3 billion PRODUCTION: The mine will start producing thermal coal in the first half of 2020 CONSTRUCTION: 24 months, of which seven have been completed LIFE OF MINE: 17 years RESERVES: This area contains the last good-quality A-grade, highyield coal reserves in Mpumalanga

Local Municipality; and Nora Mhlangu, MEC: Human Settlements, Mpumalanga Provincial Government. Construction, which

lived our purpose,” Mgojo said. “Exxaro Resources, as a proudly South African company, has been exemplary and at the forefront of reshaping how the mining sector contributes to nation-

began seven months ago, is expected

building for the past 12 years. Today is a

to last 24 months in total. The current life

testament to that,” added Mtshweni.

of mine is expected to be 17 years once

Mtshweni noted that it had taken

operational. It will produce 2.7 Mtpa

Exxaro 20 years to develop BIP, which

A-grade thermal coal for export and

would cost R3.3 billion.

500 tpa in the form of power station coal.

Responsible corporate citizenship

“This investment is in line with the call by the President of the Republic of South Africa, Cyril Ramaphosa, who has

“Exxaro acknowledges that it is our

challenged local companies to take

responsibility to create a future that

the lead in investing in our country as

our children and grandchildren

part of his drive to raise US$100 billion

can be proud of. Exxaro takes that

investment over the next five years,” she

responsibility very seriously. We are

said. “This investment will induce much-

very excited at this opportunity. But we

needed economic activity in Belfast

must acknowledge that we operate

and in eMakhazeni Municipality whose

in an environment of vast inequality,

economy is mostly boosted by its vibrant

poverty and unemployment. Therefore,

agricultural sector.

we are mindful of possibilities that

“As President Ramaphosa has said, the

come with the BIP. This is not just about

biggest challenge facing our country

creating a new mine; as we create,

and our economies at national and

we need to consider how we start

local level is to get investments that will

leveraging opportunities to create new

induce economic activity. Exxaro’s belief

economies,” stated Mgojo.

in revitalising small towns and upskilling its

“Exxaro’s purpose is rooted in our

workforce will ensure that this objective

belief that unless we power better lives

is achieved and that our people do not

for people – not only in his country but

become economic migrants of bigger

beyond our borders – then we have not

provinces like Gauteng.”

TECHNOLOGY: The Belfast coal mine will be the first of its kind in South Africa to have a digital twin, i.e. a complete digital replica of reality, which will allow Exxaro to continuously drive for improved overall productivity VOLUMES: Primary product will be 2.2 Mtpa A-grade thermal coal for export and 500 tpa in the form of power station coal SIZE: The total mining right area encompasses 7 198 ha and extends approximately 6 km from east to west and 10 km in the north-south direction PROCUREMENT: Construction value is R1.179 billion, of which R293 million (25%) is the estimated local spend EMPLOYMENT: The construction phase will provide 1 166 jobs, with a multiplier effect of 3 847 beneficiaries. During the life of mine, 4 706 jobs will be provided, with a multiplier effect of 15 529 beneficiaries LOCATION: The new mine will be located about 10 km south-west of the town of Belfast, on the southern side of the N4 highway THERMAL COAL: Thermal coal (also called steaming coal) is burned for steam to run turbines to generate electricity either to public electricity grids or directly to industries consuming electrical power (such as chemical industries, paper manufacturers, the cement industry and brickworks). During power generation, the coal is ground to a powder and fired into a boiler to produce steam to drive the turbines that produce electricity

coal

Anthracite:

The rock aristocrat Governments today are actively encouraging the use of anthracite in the private sector. As a vital component in the production of chemicals, plastics and energy, anthracite has become an indispensable commodity. By Phila Mzamo

s the global demand for steel increases, so does the demand for anthracite. In the United States for

instance, with President Donald Trump’s attempts at returning the country’s steel production to its former glory days, anthracite has become highly sought

The global demand for metallurgical anthracite in 2016 was estimated at 115 Mt, with the ferrous sector accounting for over 80%

after. Yet, anthracite is a finite resource, with only so much left to be mined

comparison, South Africa’s anthracite

globally. Found mostly in the eastern

demand in 2016 was 2.1 Mt, of which 98%

part of the US, it makes up less than

was consumed by non-ferrous sectors.

2% of all coal reserves in the country.

viewed that South Africa has limited

South Africa, Australia, China, and a

commercially viable anthracite

few other countries.

resources and that we’ve become

The process of using anthracite

to have changed with the successful

furnace along with hot air. This method

redevelopment of Nkomati Anthracite by

reduces the amount of coking coal

Unicorn Capital Partners.

According to Jacques Badenhorst, CEO

thereby improving the quality of the

of Unicorn, Nkomati Anthracite will soon

metal produced. In addition, the

be in a position to deliver a substantial

production of high-quality ferrometals is

portion of South Africa’s anthracite

dependent on using anthracite with low

needs over time. Already, the mine has

levels of sulfur and phosphate.

in excess of 8.7 Mt of proven resources.

The global demand for metallurgical

Anthracite rock’s high energy density and subsequent exceptional heat value are the result of its elevated exposure to intense pressures and temperatures

dependent on imports. That now seems

involves injecting it directly into the

needed in the first stage of production,

Nkomati Anthracite is the top producer of quality anthracite in South Africa

Until fairly recently, it was generally

Smaller amounts are also mined in

In April this year, Nkomati started

anthracite in 2016 was estimated

drilling 43 additional exploration

at 115 Mt, with the ferrous sector

holes, which will be

accounting for over 80%. By

completed by the

Because it is mostly made up of 70% free carbon and contains low levels of sulfur and other impurities, it should rather be classified as a carbon product and not a coal product

Ins i de Mi n i n g au g u s t / s e p t e mb e r | 2 0 1 8

Anthracite accounts for about 1% of the world’s coal reserves, and generally costs two to three times as much as regular coal

coal end of June. In itself, this will help double

all locally demand anthracite’s. “With

the life of the mine.

the completion of Nkomati’s recent

Most importantly, when compared

expansion project, the 1.08 Mta ROM

to other local mines, Nkomati’s

wash plant, open-pit and underground

anthracite is of a particularly high

mine, the company is currently 70% of the

grade due its low level of impurities and

way towards achieving the 25% goal. By

high levels of fixed carbon (with some

all appearances, it will be reached by

exceeding 86%).

the end of 2018.

Currently, Samancor and Glencore

“Looking ahead, over the next three to

Nkomati Anthracite will soon be in a position to deliver a substantial portion of South Africa’s anthracite needs over time Nkomati Anthracite

are the two main anthracite buyers in

five years, Nkomati’s target is to meet as

Nkomati Anthracite is situated in the

South Africa, with Glencore requiring

much as 40% of South Africa’s anthracite

Mpumalanga province of South Africa.

around 70 000 t a month and Samancor

needs and also to be in a position

As at 30 June 2017, the total measured

35 000 – 50 000 t. In total, there’s

to supply the international market,”

reserves amounted to 8.7 Mt. Anthracite

an estimated local consumption of

says Badenhorst.

is produced as a coke blend for domestic

150 000 – 200 000 t per month.

The area’s anthracite resource

and export consumption, from open-pit

is huge, stretching over 11 000 ha.

and underground operations. Unicorn holds

However, the current open-pit and

50.3%, Mpumalanga Economic Growth

According to Badenhorst, Nkomati’s

underground operations cover less

Agency (MEGA) 33.6% and the local

immediate goal is to produce 25% of

than 400 ha.

community 16.1% of Nkomati’s shares.

Anthracite’s promising SA future

In sid e M in in g august/se pte m be r | 2018

legislation

What’s hampering local M&A activity? Mergers and acquisitions (M&A) hit a four-year high in 2017, according to EY. In Q1 2018, global M&A activity rose 86% year-on-year. However, Allan Reid, director: Corporate and Commercial, Cliffe Dekker Hofmeyr, believes that local uncertainty is keeping mining M&A activity in South Africa from reaching its potential.

In your view, what is needed to help local mining M&A activity to reach its potential? And what variables need to be considered? AR There can be no doubt that

Commission approval – generally only

exchange rate fluctuations.

marginally quicker than obtaining consent

What considerations need to be made? The most critical considerations are

in terms of section 11 of the MPRDA. This is particularly so where there is a distressed asset involved in the transaction and an expedited closing of the transaction would

prolonged uncertainty created by the

the need for regulatory and administrative

lead to a retention of jobs or, at least, a

introduction of the various iterations of

certainty, fairness and efficiency. The

reduction in the number of retrenchments.

the new Mining Charter and the Mineral

fiasco that followed the publication of the

and Petroleum Resources Development

controversial BBBEE Charter for the South

Amendment Bill [B 15D – 2013] has left

African Mining and Minerals Industry by

South Africa’s mining industry in a state

Minister Zwane on 15 June 2017 has been

Can you unpack the difficulty associated with addressing public interest?

of limbo. The M&A activity that we are

well publicised. However, what about the

The Competition Commission’s approach

seeing in the mining space currently is

almost forgotten 2013 Amendment Bill that

to the public interest issues of BEE and

largely distressed-operations based or

has been subject to legislative processes

the employment aspects of M&A

reflective of bargain basement shopping,

in South Africa since 2013? The National

transactions is resulting in more complex,

mirroring the dire position of the local

Assembly passed the revised version of

costly and delayed applications for

industry. There is, unfortunately, no quick

the Bill in early November 2016 and it was

competition approval. There is significant

fix; until we can restore a climate that

then referred to the National Council of

uncertainty about how these public interest

attracts foreign direct investment, mining

Provinces for consideration. It still contains

considerations fit into the broader existing

M&A activity will remain muted.

numerous controversial proposals that are

policy framework.

What is required to improve the situation?

unlikely to pass constitutional muster. Many

The recent publication of the Competition

specialised and experienced stakeholders

Amendment Bill in December 2017

within the mining sector made valuable

unfortunately does little to address the

What is required is regulatory certainty,

comments and suggestions in an attempt

potential for conflicting outcomes and

regarding mining itself and antitrust

to make the Bill more palatable and

policy incongruence on transformation and

regulations. We also need administrative

practical for investors and industry. These

jobs. This bill introduces a new substantive

transparency, certainty, fairness and

comments and suggestions have been

ground that must be considered by the

efficiency. Sustainability is a further

largely ignored.

Competition Commission when deciding

important variable and goes further

global commodity prices and

However, it is not only the mining

on a merger: “the promotion of a greater

than the mining operations themselves.

regulatory framework at issue.

spread of ownership, in particular to

It encompasses sustainable mining

Anyone involved in mining M&A

increase the levels of ownership by

communities, sustainable workforces

will attest to the frustration of

historically disadvantaged persons in

and sustainable returns for shareholders.

parties when they are told of

the firms in the market”.

Finally, we need a dose of plain

the long lead times in regard

good luck regarding the impacts of

to obtaining Competition

Ins i de Mi n i n g au g u s t / s e p t e mb e r | 2 0 1 8

The difficulty with addressing these public interest considerations is that

the Competition Commission has

does little to encourage new

been imposing conditions and

prospecting and exploration.

seeking unwarranted undertakings

The limited recognition of the

from parties. In turn, the parties are

‘once empowered, always

hesitant to fight plainly unjustifiable

empowered’ principle is to

conditions, risking being seen

be welcomed but should be

as anti-transformation or delaying their

extended through any renewals of

transactions. However, such conditions

mining rights as well. One of the most

and undertakings invariably add to the

crucial aspects of the new draft charter

cost of M&A transactions and do nothing

is that any transfer of a mining right

to encourage investment.

will require the new holder to be fully

What are your views on the amended charter?

Allan Reid, director: Corporate and Commercial, Cliffe Dekker Hofmeyr

compliant with the charter’s ownership requirements, notwithstanding that such

The reduced deal flow, as investors

holder would otherwise have been

seek to divest and look for opportunities

Drafting a new Mining Charter is never

compliant under the ‘once empowered,

elsewhere, is adding additional pressure

going to be an easy exercise. There are

always empowered’ principle. This

to the industry. Job losses are increasing

just so many conflicting interests that

will have a highly negative impact on

at an almost equal rate to disinvestment,

need to be balanced. The measure of

mining M&A.

and M&A in secondary and supporting

a good charter will be the degree to

industries is also feeling the impact.

long way to go. One must bear in mind

What role do you think the ongoing debate concerning the Mining Charter and other legislative amendments has had in local M&A activity?

Do you think M&A is in any way a cure-all for failing mining operations during difficult operating environments?

that this is still a draft.

which interests are correctly balanced. In this regard, the latest charter is undoubtedly an improvement on the June 2017 attempt. However, it still has a

While we strongly disagree with the

Not at all. M&A is an economic tool and

Hopefully, once all of the comments

view that a bad charter is better than

cannot itself cure failing operations.

and submissions have been received, all

no charter, there is no doubt that the

It is certainly a mechanism by which

of the current uncertainties, ambiguities

debates concerning the amendments

struggling operations can be merged

and nuances will be clarified. As it stands,

to the regulatory framework have

to realise synergies, thereby unlocking

the draft charter will not encourage

negatively impacted mining M&A in

value and reducing operating costs.

mining M&A, nor will it do anything to

South Africa by creating overwhelming

It is also a useful tool to enable mining

improve investor confidence. Mining is a

legislative uncertainty.

companies with strong balance sheets

risky and capital-intensive industry, and

Concurrently, fewer investors see

to acquire assets at very attractive prices

shareholders will be required to bear the

South Africa’s mining industry as a viable

costs of many of the proposals in the

option. The industry already

the market. However, M&A without

new charter. Investment in prospecting

operates in an uncertain

investment – especially foreign

and exploration is the life blood of any

environment, with fluctuating

direct investment – and without

healthy mining industry. The impact on

commodity prices and

legislative fairness and certainty, will

prospecting rights in the new draft charter

exchange rates compounded

not be the white knight of the South

is, at best, unclear and as such the charter

by increasing cost pressures.

African mining industry.

and thereby achieve consolidation in

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industry insight

Nornickel litigation saga continues

his July, Norilsk Nickel, the

share purchase agreement and was

world’s largest refined nickel

subsequently forced into liquidation by

and palladium producer,

the Botswanan government. Following a

confirmed in a public statement

recent Botswanan court judgment that

that it would continue its litigation

bars Nornickel from taking the matter

over the Nkomati, Mpumalanga, and

to the London Court of International

Tati facilities in Botswana to recover

Arbitration, Nornickel maintains that

around US$277 million (R3.7 billion).

it will not abandon legal action and

This debt is owed by BCL Limited, a

will use every avenue available to

state-owned enterprise, which had

resolve this matter.

failed to make a payment under the

“We applied to the Botswanan court for permission to defend our rights in

While the protracted dispute between Russia’s Norilsk Nickel and the Botswana government over the commitment made by stateowned BCL to purchase assets remains unresolved, Michael Marriot, group CEO of Norilsk Nickel Africa, says the business is committed to settling the dispute timeously. responsible for all BCL liabilities, including the liabilities to Norilsk Nickel in respect of the Nkomati and Tati transactions.”

London in 2016. For no good reason,

According to Marriot, Nornickel

it then took the court over 16 months

and BCL signed a share purchase

to consider this very straight-forward

agreement, which provided for the

matter. We are now left with a deeply

transfer of the ownership of the Nkomati

unsatisfactory judgment that has denied

and Tati facilities to BCL, in October

us the ability to get on and resolve this

2014; in September 2016, the agreement

dispute through impartial, international

became unconditional. However, BCL

arbitration, despite our right to do

subsequently failed to perform its deal

so under our contract with BCL,”

completion obligations and refused to

Marriott says.

make a payment for the shares. As a

Ensuring accountability

result, Norilsk served a material breach notice on BCL, demanding payment

“We are disappointed by the

of the approximately $277 million

Botswanan court’s ruling and remain

purchase price.

dismayed by the authorities’ disdain

In October that year, the Government

for investors’ rights. We are going to

of Botswana applied to the High Court

use every opportunity to ensure that

of Botswana, and BCL entities were

the Botswanan government is held

put into liquidation; eight months later, in June 2017, BCL entered the final stage of liquidation. In the following

Michael Marriot, group CEO of Norilsk Nickel Africa

months, Nornickel says it submitted a Request for Arbitration to the London

I n sid e M in in g august/se pte m be r | 2 0 1 8

industry insight

NKOMATI’S NICKEL Nkomati is located in the Machadodorp area of Mpumalanga, 300 km east of Johannesburg. Nickel mining takes place by means of an underground shaft as well as open-pit mining. Oxidised chromitite is also mined as part of the pre-strip of the future open pits.

Court of International Arbitration

which include an underground

(LCIA) to determine its claims and

nickel/copper mine and the smelter,

filed an application with Botswana’s

and Norilsk’s operations at Tati Nickel

courts (the Permission Application)

and Nkomati. Nornickel maintains

seeking permission to commence and

that the Botswana government,

prosecute an arbitration in the LCIA in

the ultimate owner of

respect of its claim. Not only has the

BCL, has deliberately

dispute – which is developing into an

walked away from

unsavoury disagreement over mining

the 2014 deal and

assets yet seen in the Southern African

emphasises that

region – jeopardised at least 5 000

it will continue with

mineworkers in the affected areas, but,

the litigation, despite

says Marriot, “It has severely damaged

the red tape. “For us,

Botswana’s reputation as one of the

Botswana has long been

most investment-friendly countries on

regarded as one of Africa’s most

the African continent.”

desirable mining destination. I fear,

A deliberate side-step At the time of the arrangement, Marriot indicates that BCL’s motivation for

however, that this reputation, based on Nornickel’s experience over the past few years, is very much at risk. “This disagreement is bad for the

concluding the deal was the clear

economy, bad for investment and bad

synergies between its operations

for the people whose jobs have been

centred on the town of Selebi-Phikwe,

affected,” Marriot concludes.

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industry insight

Junior miners still struggle against system in SA Despite South Africa’s stated intention of nurturing a junior mining sector as a key strategy in revitalising and transforming the sector, voices at the recent Junior Mining Indaba in Johannesburg made it clear that this was not happening.

ark Wanless, principal

previously, it was possible to get a

potential. “These illustrated that we have

geologist and partner,

prospecting licence for a nominal fee on

so many world-class orebodies – like the

SRK Consulting, said:

the same day.” Geological information

Witwatersrand goldfield and the Bushveld

“There is a strong sentiment

should be easily available to explorers,

complex – that many of the smaller but

among junior mining

but is not – as there is no

still good-quality deposits have been

companies that they are

proper geological survey;

underexplored or overlooked,” he said.

marginalised and excluded

while the Council for

“The country has a wealth of skills and

from the action.” Wanless

Geoscience holds valuable

experience in mining, providing plenty

said the message from

information, it has no

of potential to revitalise the industry; the

speakers was that they were

efficient and accessible

prevailing opinion at the Indaba, though,

strongly opposed to Mining

way to share it. He noted

is that government and unions are getting

Charter 3, and had not seen

that many junior miners

in the way of exploration and smaller

any benefit from Mining

felt that the way the DMR

mine developers.”

Charter 1 or 2.

works has led investors to

“They would like smaller firms and start-ups to be exempt from BEE requirements,

Marcin Wertz, partner and principal mining engineer, SRK Consulting

as having a large BEE

believe that South Africa is a

Banding together

risky place to invest money

According to Marcin Wertz, partner and

in exploration; they also

principal mining engineer, SRK Consulting,

said that corruption within

it was significant that junior mining

shareholder with limited funding capacity

the DMR was a major headache, as

companies had recently formed their

is a big hurdle when seeking capital

bribing of officials is apparently common

own alternative association to champion

funding from investors,” he said.

to ensure an application

A stifled sector

their interests.

was processed.

“This is a sign that they

“Factors like these have

feel their voices are not

There was also a sense that government

made fundraising on the JSE

being heard, and that

and the Department of Mineral

for mining projects within

the stakeholders currently

Resources (DMR) have stifled business

South Africa very difficult

negotiating the Mining Charter

by over-regulating the sector, and by

– despite attempts by the

do not represent them,” said

setting unrealistic hurdles for mining

bourse to provide a fast-track,

Wertz. “They see today’s

and exploration companies to acquire

cheaper listing process for

large mine companies as

prospecting licences.

junior miners,” said Wanless.

representing global players

“The DMR has no usable portal where

“Getting funding from outside

Mark Wanless, partner and principal resource geologist, SRK Consulting

explorers or investors can find out who

South Africa is equally difficult,

requires which prospecting licenses,

given the regulatory

and what licences are available,” he

environment and the difficult

said. “The application process is quite

permitting process; there is

opaque, time-consuming and expensive;

little appetite for high-risk investment.”

“Getting funding from outside South Africa is equally difficult, given the regulatory environment and permitting process.”

who have options elsewhere, the trade unions as serving their employed constituents rather than potential new entrants to the labour market,

and government as being ideologically opposed to free enterprise.”

Promise in exploration

He noted that exploration spend in

He highlighted, however, that there

South Africa was very low – accounting for

were still a number of presentations at

just 14% of African and 2% of worldwide

the Indaba that confirmed that South

spend – and we could learn from mining

Africa remained a very good place to

regulations in West Africa, which are

be when conducting exploration work

tailored to explorers, while ours are tailored

– as there was substantial geological

to producers.

In sid e M in in g august/se pte m be r | 2018

Surveying

Drone technology optimises surveying In a first for the local mining industry, Anglo American subsidiary Kumba Iron Ore is now licensed to fly its own remotely piloted drones.

nglo American’s Kumba

anyone at risk.” Kumba has recently

also eliminates employees’ exposure

Iron Ore has worked

demonstrated the use of drones to

to potential dangers, especially when

through two years of

conduct engineering inspections

compared with the old conventional

complex legal, governance

for equipment that cannot be

survey methods,” he explains.

and logistical challenges to earn

easily accessed, which dramatically

an operating licence to fly its own

eliminates safety risk.

remotely piloted aircraft systems (RPAS; also known as drones), and already

Functional benefits

be unsafe for workers to enter. Various subsidiaries of the Anglo

the technology is proving to be a

Glen McGavigan, executive head:

American group have been using

game changer at its Sishen mine.

Technical and Projects, Kumba Iron

drones at their operations since

Ore, says that the drone technology

late-2015, but have leased the units

has facilitated the collection, and

and been reliant on outside service

Bongi Ntsoelengoe, technology manager at Kumba Iron Ore, says that the drones have optimised surveying processes

subsequent processing, of more data than in the past, and

in terms of time and coverage, including being able to gain access to constricted areas. “Routine tasks historically carried out by

this is pushing innovation

Drones can provide both routine and accident-scene surveying in areas that could be unsafe for workers to enter

surveyors, such as measuring the volume of waste dumps and

Drones can also be used to survey accident scenes and areas that could

mine-wide as data management processes

providers. This licence to operate its own drones – with its own pilots, and at heights of up to 1 000 feet above ground – is the result of diligent groundwork and millions of rands

are enhanced to

worth of investment. So far, five staff

ensure that other

members have been trained to pilot

functional areas

the drones, and they’re licensed by

also benefit from the

the SA Civil Aviation Authority to use

technology.

the technology.

“Our drones have improved survey

turnaround time on large dataset deliveries tremendously,

Anglo American has also established new working practices, such as scheduling flights, flight navigation and craft maintenance.

stockpiles, are now being done by

and large datasets can now be

As skill sets go, these are new to

our drones. The drones collect digital

acquired with much less time spent in

the Anglo American group, and

imagery that is pieced together to

the field. We can now inspect, monitor

the company is looking forward

perform volume calculations, giving

and survey large mining areas without

to developing further new skills as

us reliable data without having put

impacting on operations. Using drones

drone technology evolves.

Ins i de Mi n i n g au g u s t / s e p t e mb e r | 2 0 1 8

A springboard for Powermite Powermite will use Electra Mining 2018 as a springboard to launch its new innovative products this year.

owermite will be launching its new innovative Conductix Wampfler SR-Express spring reeling drums as well as introducing the market to additions to its range of plugs and sockets at Electra Mining 2018.

Telefonika mining cable; Conductix Wampfler cable

reeling drums; downshop and festooning systems; Mennekes and AMPCO plugs, connectors and sockets; as well as crane accessories will complete the extensive display from Powermite. Powermite is part of the Hudaco group of companies and is a leading supplier of electrical and mechanical equipment for moving machinery in the Southern African region. The company has been participating at Electra Mining for several years and Rolf Lung, managing director, says that the mining exhibition has always been a good platform to engage with not only the mining sector but also with general industry. “While past participation has led to new lead generation and business opportunities, the exact measurement of success at any trade exhibition is difficult,” notes Lung. “However, we no doubt believe that our exposure and presence at Electra Mining contribute towards our Powermite brand awareness in the market. We believe that it creates the ideal platform to meet existing customers, show off new products and developments, as well as secure new enquiries and build new relationships.” Lung adds that in addition to its exciting new product offerings, Powermite is also giving visitors to its stand (F16: Hall 6) the opportunity to enter a lucky draw competition with great prizes up for grabs. Powermite will be jointly exhibiting with sister company Proof Engineering, a specialist in the design and manufacture of a wide range of innovative flameproof, explosion-proof and non-flameproof products focused on

ORION

the mining and tunnelling industries.

Powermite will launch its new innovative Conductix Wampfler SR-Express spring reeling drums at Electra Mining 2018

CR AT ER

electra mining

SEW on the

future of mining

At Electra Mining 2018, SEW-Eurodrive intends on leveraging the platform like never before. Norman Maleka, national sales and marketing manager, says the business will convey the full extent of its services and products to the widest audience possible and engage in conversations that will help shape the future of mining. EW-Eurodrive has a long history

to introduce locally in the future.

feature favourites such as the inverters.

of exhibiting at the esteemed

Among these upcoming trends are

A dynamic and entertaining display of

Electra Mining exhibition,

mechatronic industrial gear (MIG)

three demo units will demonstrate the

and Maleka says this year

units. These represent the convergence

specific functionality that comes with

will be no different. “Not only have

of gears, motors, and decentralised

the product.

we made some exciting changes to

inverters in a single, handy package.

the aesthetic of our stand to make it

For SEW, the MIG unit is an innovative

showcasing a fan application that will

increasingly appealing and inviting, but

solution that ensures practical benefits

allow us to display some of the unique

we will also be featuring some exciting

and profitability across all stages,

functionalities. Further, we will have a

products on our stand. We will have

from the initial enquiry right through

complete power pack on the stand for

the standard gear units, which are

to maintenance.

customers to have a look at. We will also

our bread and butter, and we have

be paying close attention to displaying

some automated materials handling

our stand and the idea is to showcase

the safety functionalities of our portfolio

products to showcase – the EC drives

our competency in this regard: the

of products, so that is very exciting for us

that we displayed at Bauma earlier this

innovation and development efforts

at SEW,” Maleka explains.

year, as well as two AGV ‘toys’ that will

SEW puts into developing products for

be displayed in conjunction with the

the future. This is an all-in-one solution,

A future for mining?

conveyor,” says Maleka.

and this is important for us because we

Maleka says he is excited about the

want our customers to know that this is

future of mining, especially when

where our vision is headed,” he explains.

looking at developments in industry

SEW experts like Maleka will be onhand to discuss the latest innovations from the German company, which SEW-Eurodrive South Africa plans

“The MIG will be a special addition to

“In the HVAC sector, we will be

In addition to that, Maleka also indicates that the stand will still

Ins i de Mi n i n g au g u s t / s e p t e mb e r | 2 0 1 8

technology, particularly the increasing trend towards automation to cut costs

and boost productivity. “The fact that we are in a position to predict what the technology trends in the mining industry will be in the short to long term, and considering we have already developed products to meet such demands, places us in a very good position to keep our customers up to date with the future of mining. Our expertise and experience in this regard are unparalleled, and further buoyed

“We are in a position to predict what the technology trends in the mining industry will be in the short to long term and have already developed products to meet such demands.”

by our 24/7 customer service and aftermarket support,” Maleka notes.

New product offering

Norman Maleka, national sales and marketing manager, SEW-Eurodrive

In terms of new products to be displayed, Maleka points to the

EVENT Electra Mining will be held on 10-14 September 2018

ECDriveS® 24 V drive system for lightload conveyor applications. “Mining operations are under constant

VISIT US!

processing pressure to reduce supplychain costs, and one area where we can improve such efficiencies is in materials handling applications.” Another materials handling innovation from SEW to be showcased is its

10 – 14 September 2018 | Expo Centre, Nasrec, Johannesburg, South Africa

automated guided vehicle (AGV) system for assembly lines in a range of industrial sectors. AGV systems are used

B R I N G I N G YO U TH E F U T U R E O F M I N I N G , M A Nand U FAC T U R Icoordination N G , ELEC TR I CSo, A Lwe AN D see P OWER I N C E 1972 the navigation vehicle will going S forward how this

to automate in-house material flows, or

itself. The MOVITRANS® line cable laid

develops,” Maleka shares. He indicates

they can serve as the basis for flexible

in the floor enables contactless energy

that, for SEW, a platform like Electra Mining

assembly operations. The track-guided

transfer, and thus no wear makes it

is especially attractive because it not only

inductive heavy-load AGVS allows for a

low maintenance.

allows for the showcasing of products,

barrier-free factory, for example.

services and competence, but also offers

our portfolio. And as excited as we are

a welcome networking opportunity where

the individual vehicles, energy supply

about all of them, we are also mindful

the business can engage with customers

and WLAN communication, as well as

not to clutter the stand at any exhibition.

and industry peers.

SEW’s total AGV system solution covers

SKETCH2017/10799

“We have added more products to

A RICH HERITAGE!

Visit SEW-Eurodrive South Africa at Stand J20 in Hall 6 at Electra Mining Africa.

IT’S A SHOW THAT BELONGS TO YOU.

Source 100’s of cutting-edge solutions Compare products and brands Get advice from technical experts

FOR FREE ENTRY!

Watch live demo’s

www.electramining.co.za

Acquire knowledge at free-to-attend seminars

PLATINUM SPONSOR

GOLD SPONSOR

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FOR MORE INFO CONTACT: Leigh Miller I leighm@specialised.com I Tel: +27 (0)10 003 3060 Incorporating:

Brought to you by:

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In sid e M in in g august/se pte m be r | 2018

electra mining

Introducing drilling game changers

Epiroc, a leading productivity partner for the mining and natural resources industries, is curtailing operational costs and extending equipment life.

M T

he COP66 hammer and T-WiZ60

is focused on innovation to meet the

feed force and rotation. “Servicing of

T-thread drill string – used for

new era of ultra-efficient drilling. Built

the COP66 can be best described as

down-the-hole applications and

on the success of their predecessors,

quick, easy and hassle-free,” notes Nel.

top-hammer drilling, respectively

these two units have been specially

“Innovations like E-kit allow the COP66

– are defined by efficiency and

designed and engineered to achieve

to be rebuilt twice over its lifetime in

reliability; two factors Epiroc believes

more holes per shift and per drill rig,

normal abrasive conditions, which

are fundamental to maximising uptime

keeping productivity to an all-time high

delivers tremendous savings for the

and increasing productivity. The COP66

and ultimately reducing end-users’ total

end user.”

is specially designed for Epiroc’s new

drilling costs,” explains Nel.

generation of SmartROC and FlexiROC

T-WiZ60

drill rigs. By combining the best drilling

COP66

technology with air packages of up

With its unique platform design, which

products can beat the T-WiZ60, which

to 30 bar, these hammers present

incorporates a solid bit with no centre

has been engineered to offer up to

an unrivalled drilling solution, the

flushing hole and no exhaust tube,

30% longer service life.

company notes. “We understand that

the hammer is 30% shorter, lighter and

customers and end-users are under

faster – a trio of benefits that contribute

T-WiZ60 (92 mm – 152 mm) drill bit

extreme pressure to increase output

to reducing wear and tear and

range and is ideal for bench and

while lowering input, in order to remain

consequently result in greater reliability

production drilling for surface mining

profitable,” says Robert Nel, business

and improved economy.

sectors because of its ability to cope

When it comes to life cycle, few

The COP66 also boasts 15%

line manager: Rock Drilling Tools

“It uses the optimised Powerbit

well with difficult rock formations and

Division, Epiroc. “Subsequently, our

faster penetration compared to its

fractured rock,” adds Nel, who confirms

hammer and drill string product portfolio

predecessor, the COP64 Gold, and

that the versatile unit can be used

FAST FACT

incorporates design

on all drilling rig brands within each

features that are

application area.

geared towards

He notes that the components such

The COP66 hammer for down-

The COP66 is lighter, faster

making life easier

as the rods and shank adapters of the

the-hole applications from

and 30% shorter, boasting

for the operator.

rugged T-thread system have been

Epiroc is defined by efficiency

15% faster penetration

The hammers are

designed even tougher, offering greater

and reliability

than its predecessor

simple to handle and

thread stability as well as improved

easier to adjust, for

drilling reliability and drilling capacity.

In sid e M in in g august/se pte m be r | 2018

UNEARTH

your brand’s potential using our print and digital solutions

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Global compact earthmoving brand refocuses in the local market ELB Equipment has relaunched an exciting range of equipment, including skidsteers, articulated loaders and backhoe loaders from one of the world’s leading compact equipment manufacturers.

merican-made Gehl

name. This means that ELB will continue

machines are well known

to support and provide backup for the

across the globe, where the

Mustang population in the market.

brand is recognised for its

“With 85 000 visitors at this year’s Harvest

compact machines that deliver powerful

Day, we used the opportunity to showcase

performance in a rugged and reliable

this premium brand to the agricultural

package that is versatile enough to be

industry. We will follow this up with similar

used across almost all industries, including

events in the construction and industrial

mining. Gehl’s recent relaunch at Nampo

industries, and will communicate with and

Harvest served to underline the brand’s

demonstrate products to all our customers

involvement and knowledge of diverse

in the months to come,” says Gerber.

industries such as the agricultural and

He adds that the Gehl display at

construction industries, as well as the

Nampo has already paid dividends,

industrial sector.

with a number of customers already

Danie Gerber, business development

interested in the machines. Not surprising,

manager, ELB, says the range

considering that these premium-brand

complements the distributor’s best-of-

machines are competitively priced and

breed philosophy for world-beating

have a reputation for having among

products that have track records to prove

the lowest total costs of ownership in the

their quality and with high levels of service

international industry.

and aftermarket support.

Global acquisition

Local market Gehl skidsteers, tracked skidsteers, loaders

“The product range arises from the

and backhoe loaders are designed

international procurement of Terex

to be robust, reliable, easy to operate

Construction by the manufacturer’s parent

and simple to maintain. They represent

company. The Gehl range is a large and

excellent value with a wide range of

well-known one throughout the world and

variations available across the entire

will be in the safest of hands here in South

range of machines.

Africa with ELB Equipment. ELB Equipment

“The relaunch of Gehl into the

has been distributing Mustang skidsteers

marketplace is one of the most exciting

for 10 years now and will convert to the

entries into the local market and

manufacturer’s Gehl brand, which is the

represents one of the most anticipated re-

same product just under a different brand

entries of a premium brand into the local earthmoving construction and agriculture markets in many years. Supported by

ELB Equipment’s Ernest Moremedi, Dean Logan, Rhett O’Neill and Keon Kardolus at the launch of the new Gehl compact equipment brand at Nampo Harvest Day

one of the country’s foremost equipment suppliers, it is sure to gain the attention of fleet owners across the entire Southern African region,” Gerber concludes.

electra mining

Smart service and fuel efficiency solutions technicians who offer around-the-clock

Babcock’s Equipment Division has been delivering, distributing and supporting an extensive range of Volvo Construction Equipment machines in Southern Africa for close to two decades.

support, machine monitoring and world-

David Vaughan, managing director – Equipment for Babcock

class parts availability. “As the exclusive regional distributor of this leading

Agreement. The eight smart solutions that

brand, Babcock’s Equipment Division

comprise the new Volvo Services available

fulfils all of these commitments, and our

from Babcock include Uptime Services,

capabilities stretch far beyond the sales

Productivity Services, Safety Services,

lot,” says Vaughan.

New Life Services, Financial Services,

He adds that there is a prevailing

and Genuine Volvo Parts. Also included

demand for larger construction

in this offering is a range of attachments

equipment in Southern Africa as

fit specifically for your Volvo machine

customers continue to seek the most

and Volvo Fuel Efficiency Service that

cost-effective means of moving

promotes long-term fuel efficiency, and

material. Products and services that

reducing overall fuel consumption and

increase productivity are all hallmarks

CO2 emissions. Features such as Fuel

he Volvo Construction

of Volvo Construction Equipment, a

Equipment range of heavy-

brand long associated with low energy

into the machine’s fuel efficiency, and

duty machinery is perfectly

consumption, reduction of life-cycle

allow customers to implement corrective

suited to the mining, quarrying,

costs and ease of use.

actions such as operator training for more

Report and Fuel Advice provide insight

construction, roadbuilding, forestry and

“As a Volvo Construction Equipment

agricultural industries in Southern Africa,

dealer, Babcock is an important bridge

while Volvo’s strength, durability and

between Volvo and customers who buy

complement Babcock’s expertise, 24/7

outstanding productivity development

and operate its machines. We provide

support, high availability of world-class

has helped entrench Babcock as one

advice and support throughout the full

parts, and comprehensive warranties

of the top equipment supply companies

customer experience, from choosing

that help boost customers’ profitability

in the region.

and purchasing the right machine to

and enhance the performance of

ensuring it receives the service and

the machinery.

David Vaughan, MD – Equipment, Babcock, says Volvo Construction

maintenance required for the duration

Equipment machines have been setting

of its working life,” explains Vaughan.

the industry standard since 1832 through Volvo’s global network of dealers and

Customer commitment

profitable operation. These customised Volvo Services

“As a partner trusted to deliver, Babcock has a proud history of service spanning more than six decades in the sales and servicing of construction

This all-encompassing customer

equipment. Our commitment to delivering

commitment from Babcock and

materials handling solutions for diverse

Volvo has recently become more

customers focuses on assisting them to

streamlined and user-friendly with the

achieve the lowest cost per tonne of

unveiling of Volvo’s new approach to

material moved. This approach ensures

its services and solutions portfolio. The

the customer relationship begins, rather

new Volvo Services combines intelligent

than ends, at the point of delivery of the

engineering with practical business

equipment,” says Vaughan.

solutions allowing customers to select a bespoke combination of value-adding services as part of a Volvo Services

For more information, please visit www.babcock.co.za

Ins i de Mi n i n g au g u s t / s e p t e mb e r | 2 0 1 8

IT & COMmUNiCATIONs

Mobility becomes mainstream for Anglo The advent of the digital era means that people are empowered to perform what were previously regarded as ‘desk duties’ anytime, anywhere.

first for Anglo American South Africa, its Zibulo

already being used to capture underground visible felt leadership

colliery introduced outbye Wi-Fi infrastructure and

interactions on Enablon – software the company uses to manage

smartphones to revolutionise communication

and track environmental and social performance. Moreover, the

underground. This development has rapidly

colliery will soon be trialling a checklist app to provide assurance

evolved with the introduction of a series of mobile apps that

on the quality of the pre-start check. Phones, in conjunction with

optimise productivity, speed up decision-making and give

near-field communication tags on both machines and employee

employees the information they need, when and where

clock cards, will verify the presence of team members during

they need it.

the exercise, while flagged issues will go directly into a database

Instant communication, and so much more!

for actioning. The app, to be trialled on behalf of Anglo American, will be fully

This technology was first trialled in 2016 and the full outbye

customisable and can be adopted by a variety of departments

implementation was concluded in June 2017. “The fixed

for multiple functions. The innovation will soon be rolled out at

underground telephones previously in use were unreliable and

Goedehoop and Greenside colliery later this year.

reaching them would often require a long walk. Employees

“Underground mobility is enabling us to move the mining industry

would frequently need to return to the surface to get a

into the digital era and empower our frontline leaders to make

message to a colleague, report a problem or access critical

informed decisions regarding productivity. This revolutionary

production information,” says business improvement manager

technology also provides for real-time reporting of safety

Zanne-Mari Meyer.

incidents,” concludes Meyer.

“Smartphones have changed all this. They enable instant communication from underground to the surface, from the surface to underground, and from one underground location to another but, at their core, they are tools that can be used for so much more.” Two hundred frontline employees are equipped with devices that look and work like an ordinary smartphone. They are, however, intrinsically safe and designed to withstand harsh conditions. Apart from being able to make voice calls via an app called CSIP Simple, employees can use Cisco Spark to send text messages and photographs. They can send and receive documents like policies, procedures and section plans. “In the past, foremen would sometimes only get around to reporting a machine fault at the end of a shift; now they can get in touch with the appropriate people on the spot and send an accompanying photograph of the issue,” says Meyer.

Real-time work management and access to live data Work management has also been made more efficient with an app called Fewzion. “Underground personnel are able to view all tasks scheduled for the day on the screen, tick them off once they have been completed and provide status updates on work in progress. At the same time, the supervisor on the surface has an accurate picture of how work is progressing. The Power BI app provides live data that could previously only be retrieved via the control room. This means that key personnel have round-the-clock access to critical information, which can either prevent or immediately address unnecessary downtime.

Smartphones for smart safety Smartphones will increasingly play a role in safety and are

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Don’t forget the gala dinner on 2nd October 2018

2018 SPEAKERS Chair - Bernard Swanepoel Mike Fraser, President & Chief Operating Officer, Africa, South32

Chris Griffith, CEO, Anglo American Platinum

Mxolisi Mgojo, President of the Chamber of Mines of SA and Chief Executive Officer, Exxaro

Deshnee Naidoo, Chief Executive Officer, Vedanta Zinc International & CMT

Sipho Nkosi, Non-Executive Chairman, Talent10

Peter Steenkamp, Chief Executive Officer, Harmony Gold

Lucky Kgatle, Senior Vice President, Sasol Mining

Mike Teke, Chief Executive Officer, Seriti Resources

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