15 minute read
Mining
Mining activity is picking up in some sectors.
The Lejweleputswa District Municipality in the northwest of the province is the site of considerable activity in the mining of industrial minerals, with six companies currently active. Matsopa Minerals, for example, runs a bentonite mine at Koppies between Heilbron and Vredefort. Sandstone and sand-mining operations are underway in Qwaqwa, Fouriesburg, Senekal, Sasolburg and Zastron.
Limestone and calcrete occur in the western Free State where salt is also panned. Production is concentrated around the Florisbad salt pan, north-west of Bloemfontein.
Historically, the north-west part of the province was famous for gold, with Harmony Gold’s Bambanani mine forming an essential part of Welkom’s economy for many years. Bambanani is in the final stages of its life-of-mine but there are other areas where Harmony Gold is still extracting gold and investigating possible expansion programmes.
The company is conducting an exploration programme to confirm the geological model of Target North and further define a potential block of wellmineralised Ventersdorp Contact Reef. Tshepong contributed 19% of the group’s gold production in FY20, even though production was somewhat down (7 293kg vs 7 967kg in FY19). Various challenges, not least of which was the Covid-19 pandemic, caused the reduced volume but this was outweighed by an increase in the recovered grade. Harmony Gold has announced that it will build a 30MW solar plant to help power its operations.
AngloGold Ashanti sold most of its assets to Harmony Gold, two of which, Great Noligwa and Kopanang, are in the Free State. The complex includes one uranium plant, four gold plants and one sulphuric acid plant.
These assets increased Harmony’s underground resource base in South Africa by nearly 40%. The mines include Tshipong and Phakisa (near Odendaalsrus), Virginia, Target (near Allanridge), Masimong (Riebeeckstad), Joel (near Theunissen) and Bambanani at Welkom. The plant at Joel was closed in 2019 and ore mined there is now processed at Harmony One. Phakisa has mineral reserves of just over five-million ounces of gold and Harmony has invested heavily in the project.
Sibanye-Stillwater is also investigating a possible new project next to its existing Beatrix mine. Gold prices rose appreciably during the Covid-19 pandemic. The company’s Beatrix mine, with a life-of-mine projected to 2025, produced 196 698 ounces of gold in 2019. Beatrix also holds 26.97-million pounds of uranium resources. Mining rights to the Southern Free State project adjacent to Beatrix have been approved and a feasibility study on part of it, the Bloemhoek decline, has been completed. The company reported that the Southern Free State property had surface and underground gold reserves of 2.1-million oz and mineral resources of 8.2-million oz.
The mining sector makes
SECTOR INSIGHT Harmony Gold is investing in solar power.
Credit: Harmony Gold
Harmony Gold is exploring new possibilities. Credit: Harmony Gold
up 11% of provincial GDP. A minerals beneficiation strategy has been developed because this is a key area for potential growth.
Gold mines in the Free State also supply a substantial portion of the total silver produced in the country, and large concentrations of uranium occurring in the gold-bearing conglomerates of the goldfields are extracted as a by-product.
Petra Diamonds’ Koffiefontein mine is on the western edge of the province, about 80km from Kimberley. The mine is regarded as a low-grade deposit, but the diamonds produced are of high value. White stones of excellent quality are produced, and fancy pink diamonds are sometimes found. The Voorspoed mine of De Beers Consolidated Mines closed in 2018.
De Beers, the South African government and the South African diamond-cutting industry have launched a project to encourage diamond beneficiators. Among the first companies involved are Thoko’s Diamonds, African Diamonds, Nungu Diamonds and Kwame Diamonds.
Coal is mostly found in the northern part of the Free State. The Sigma-Mookraal mine is run by Sasol Mining and has the capacity to supply Sasol Infrachem in Sasolburg with two-million tons of coal per year. Seriti Resources has purchased the New Vaal Colliery from Anglo American. Together with two other mines in Mpumalanga Province, Seriti paid R2.3-billion. New Vaal is in the middle of a triangle of three towns that play an important part in industrial production: Vereeniging, Sasolburg and Vanderbijlpark. The mine employs more than 900 people and supplies about 15-million metric tons of coal to Eskom’s Lethabo power station annually.
The Free State Provincial Government announced in February 2020 the creation of a company that will manufacture mining equipment, to be called Newco. Small mining companies have been promised technical support and with health and safety and access to beneficiation opportunities. ■
ONLINE RESOURCES
Minerals Council South Africa: www.mineralscouncil.org.za National Department of Mineral Resources: www.dmr.gov.za South African Mining Development Association: www.samda.co.za
Ensuring sustainability and a positive legacy
PJ Jordaan, Closure Manager of De Beers Voorspoed Mine, gives an overview of the complex and detailed procedures that have to be followed in closing a mine.
BIOGRAPHY
PJ Jordaan is a geologist with more than 25 years of experience in gold and diamond mining with Anglo American and De Beers. He has a passion for the diamond industry with a strong interest in all aspects of diamond mining and mine closure. In 2018 he took on the role of Closure Manager, where he leads the Voorspoed closure team by managing all closure activities, focused on reimagining asset retirement deliverables to improve communities in the company’s zone of influence. What stage in the mine closure process has been reached? The mine officially closed in December 2018 and has entered the decommissioning and rehabilitation phase. The overall rehabilitation goal is to manage the mine site and continue with rehabilitation in order to meet the end land use of agricultural and grazing for stock after final closure. A decision was taken at the end of 2019 to defer certain closure activities for two to three years, as further work is required to improve the closure cost estimate to an acceptable level and to address uncertainty regarding post-closure monitoring requirements.
What are the remaining timelines? A three-year period of active closure and rehabilitation is planned to start in January 2023, provided an environmental authorisation (EA) has been issued by the DMRE. The intent of the closure and rehabilitation programme will be to remediate the site to the approved final closure plan standards. Follow‐up monitoring will continue beyond the rehabilitation phase, ie until 2031, as required by the various regulatory authorities.
What are some considerations in a mine closure process? The key consideration of the mine closure process is to ensure sustainability beyond mine closure and to leave a positive legacy behind. Successful closure can further be defined as meeting the guidelines established by internal corporate requirements with regard to mine closure (Anglo American Mine Closure Performance Standard and associated Mine Closure Toolbox), as well as the statutory requirements in terms of the Mineral and Petroleum Resources Development Act, 2002.
What are the key environmental standards that have to be met, and how is Voorspoed executing these requirements? The overarching framework governing South Africa is the Constitution of the Republic of South Africa (Act 108 of 1996). Various rights are entrenched in the Constitution, including the right to an environment that is not harmful to the health or wellbeing of the population, otherwise called the environmental right.
The mining industry is further regulated by mining,
environmental, human health and safety legislation. The interaction between various acts of parliament that deal with the environment is varied and complex, as is the range of environmental issues that are regulated. Some of the applicable legislation includes the Mineral and Petroleum Resources Development Act 28 of 2002 (MPRDA), and the National Environmental Management Act 107 of 1998 (NEMA).
The Voorspoed closure plan has been prepared to give effect to the various legal and corporate requirements that govern the process and requirements for the closure of Voorspoed Mine.
Is Voorspoed expected to rehabilitate the area? Yes. The MPRDA is the main source of rehabilitation obligations. It requires rights holders to “as far as reasonably practicable” rehabilitate the land affected by the operation “to its natural or predetermined state”, or to a land use which conforms to the generally accepted principle of sustainable development.
Concurrent rehabilitation commenced in 2014 when the mine was still in operation and the mine has already successfully rehabilitated the Waste Rock Dump (WRD) as per the agreed commitments in the approved EMPR and closure plan. Have you been working with the Moqhaka and Ngwathe Municipalities in terms of their Local Economic Development plans? Certainly. Delivering lasting positive socioeconomic change in our mine communities is fundamental. Thus, we have managed to maintain a long-standing relationship with our local municipalities. We have worked and continue working collaboratively to contribute towards the effective delivery of their Local Economic Development plan needs, including infrastructure, healthcare, education and Enterprise Development. That’s why one of the three global pillars of our Sustainable Mining Plan is Thriving Communities. We are reimagining mine closure to improve people’s lives.
Has Voorspoed been involved in training mine workers for work in other sectors? The mine introduced a dedicated, fully funded re-skilling programme from 2017 until closure (or as agreed), which provided employees with a range of portable skills allowing them to meaningfully compete for opportunities post closure. The programme focussed on nonmining-related training, entrepreneurial and other programmes in line with the Workplace Skills Plan. ■
Rethink, Restrategise, Reconnect
Focus on SMMEs at Youth Empowerment Week.
From left: Jade Wheelock, Trio-Plus, Lebogang Mphaka, De Beers Group
Busi Sithebe Buska Foods and Lebogang Mphaka, De Beers Group
De Beers Voorspoed Mine, in partnership with My Arts International, held the 12th Mangaung Youth Empowerment Week in April 2021. Free State SMMEs were invited to the event in order to gain a better understanding of their challenges within the business world as well as for them to connect with other SMMEs.
The theme for the event was to Rethink,
Restrategise and Reconnect. Through the De Beers
Voorspoed Mine’s GODISA Programme, facilitated by Trio-plus Development, entrepreneurs were introduced to the programme and its benefits at the Youth Empowerment week held earlier in 2021. GODISA, which stands for Growth,
Opportunities, Decision-making, Innovation,
System and Accountability/Action, coaches, mentors and trains with the aim of creating selfsufficient businesses.
During the event, one of the De Beers
Zimele entrepreneurs, S’busisiwe Sithebe, the owner of Buska Foods, was provided an opportunity to showcase her products and share her personal growth journey as well as some of the challenges she has encountered during this journey. Our commitment and desire to actively encourage the development of our local SMMEs has enabled the GODISA programme to “Make Life Brilliant” in our communities, especially in addressing the impact of Covid-19 on small businesses.
Over 40 local SMMEs are enrolled for the GODISA programme for the 2021 period, as part of long-term business sustainability plans beyond Voorspoed’s life-of-mine.
Chief Director Denis Ackulay, from My Arts International, emphasised that, “The Mangaung Youth Empowerment Week remains a shining example of what can be achieved when a group of young professionals are serious enough about their futures.” ■
De Beers Voorspoed Mine hands over water-testing laboratory
Cleaner and safer water for Parys.
From left: Temba Malunga, Director Technical Support, Ngwathe Local Municipality; Petrus Jordaan, Closure Manager, Voorspoed Mine; Cllr Philemon Ndayi, Chief Whip and MMC for Infrastructure; CIIr Joey Mochela, Exclusive Mayor; Kalipa Kewuti, Regional Manager, Department of Mineral Resources and Energy; Lebogang Mphaka, Corporate Affairs Manager, De Beers Voorspoed Mine; Sellwane Mok, Director SLP, Department of Mineral Resources and Energy.
De Beers Voorspoed Mine, in partnership with Ngwathe Local Municipality and the Department of Mineral Resources and Energy, unveiled a R2.2-million newly renovated and furnished water-testing laboratory on 22 September 2021.
The handover of the laboratory is part of the mine’s efforts through the Social and Labour Plan to support the municipality with its Integrated
Development Plan (IDP) projects and will play a vital role in water-quality testing to ensure safer and cleaner water for the community of Parys.
During the handover, Ngwathe Local
Municipality’s Executive Mayor, Councillor
Joey Mochela, said that one of the common denominators of service delivery protests was water and sanitation. She further indicated that, to date, Parys and Tumahole both have 98 JoJo tanks, four pump stations, four reservoirs, one water treatment and a borehole.
“This water-testing laboratory will help us find lasting solutions to water purification and shortage challenges in our areas,” she said.
A local small, medium and micro-enterprise, Ramokgwera Trading & Projects (Pty) Ltd, was selected as the main contractor for the laboratory renovations. In contributing to local short-term employment, eight temporary job opportunities were offered to community members, who were able to gain experience and training for future opportunities on other projects.
Voorspoed Mine’s Corporate Affairs Manager, Lebogang Mphaka, said, “Water is essential, even more so during the present pandemic. As De Beers Group, we recognise how essential it is to collaborate with our communities and commit to creating a lasting legacy through sustainable projects like this.”
In delivering a speech during the ceremony, Department of Mineral Resources and Energy’s Regional Manager, Kalipa Kewuti, emphasised the importance of mining companies complying in terms of achieving their Social and Labour Plan objectives to benefit the host communities sustainably, from a regulatory perspective. “We applaud Voorspoed Mine for being compliant,” she said. ■
Harmony builds strong community relationships
Environmental, Social and (Corporate) Governance, or ESG, has come to be one of the most important indicators which big firms and groups must factor into business decisions in every part of the globe.
In both South Africa and Papua New Guinea where Harmony is active, stakeholder relations assume the utmost importance. Stakeholders can include a diverse set of groups and entities, including: • host communities • suppliers and business partners • national and local governments • investors and shareholders • industry peers • local and international media.
Harmony’s Executive Director for Corporate Affairs, Mashego Mashego, describes the importance of these relationships. “Harmony believes it is crucial to build trust and maintain positive relationships with all its stakeholders,” says Mashego.
The company’s approach is aimed at partnering with stakeholders, creating a win-win situation. Says Mashego, “Stakeholder engagement is the principal mechanism through which Harmony manages and addresses a wide range of expectations and perceptions. Through proactive engagement, we are able to identify, prioritise and better manage any potential material socio-economic risks and opportunities. “The Covid-19 pandemic has highlighted the need for collective action, which revealed our interdependencies and also strengthened our relationships with one another. The quality of the relationships with stakeholders and how well these are managed affect our ability to deliver on our strategy.
“Improving the quality of these relationships protects our social licence to operate, supports the success of our business strategy and creates shared value for all our stakeholders,” Mashego concludes.
Community forums The issues and concerns raised by communities are addressed through the established community forums. The forums are in constant engagement with Harmony’s dedicated stakeholder engagement managers and corporate affairs team.
These community forums consist of representatives from municipalities, traditional authorities and local business forums. Their purpose is to share information with communities on progress being made on project implementation, to establish their needs and expectations, and to try to manage their perceptions of what Harmony can deliver.
“This initiative has had a largely positive impact on our community stakeholder engagement,” reports Mashego.
Programmes Harmony has launched an incubation programme for businesses in host communities in South Africa, specifically targeting 100% black-owned, women-owned and youthowned businesses for the supply of products or services. There were106 applications, 34 ultimately being approved for the full threeyear incubation programme.
Harmony’s health department also supports the broader company’s strategy for targeted enterprise supplier development (ESD) by providing opportunities for companies that are from the host communities to participate economically in the operations.
Creating sustainable shared value Mashego reflects on the concept of shared value: “We understand that the dynamics and the needs of communities are ever-evolving and so any meaningful and sustainable socioeconomic development we pioneer and implement requires far more than a onedimensional approach.
“Our approach to socio-economic development is multi-faceted and our projects implemented include: • Infrastructure, education and skills development, job creation and entrepreneurial development • Enhancing broad-based local and community economic empowerment and enterprise development initiatives • Facilitating socio-economic development in
local communities by means of our social and labour plans, and our corporate social responsibility programmes support arts, culture and sports and recreation, and • Building relationships based on trust with our host communities, the basis of which must be transparent dialogue and the delivery of mutually agreed promises.
Community projects Harmony showed compassion and care with the outbreak of Covid-19 in 2020. Mashego remembers, “The health and safety of our people took precedence and as such, we made decisions that ensured the continued viability of our company and its stakeholders, further demonstrating that Harmony has a positive impact.”
Harmony was at the forefront of delivering food parcels, washable face masks and care kits to all host communities in Gauteng, Free State and North West. In addition, nine local historically disadvantaged suppliers were empowered through the procurement of these essential items.
Community Trust The Community Trust owns 5% of Tswelopele Beneficiation Operation (TBO), which is also known as Phoenix, a mine dump retreatment operation in the Free State, and has some 4 400 000 Harmony preference shares
The Community Trust is involved in similar projects to those mentioned above and was formed to properly govern funds allocated to projects. TBO pays out dividends twice a year. The preference shares pay R8.8-million each year for 10 years, starting in 2019. Thereafter, the preference shares will convert into ordinary Harmony shares. ■
