Mining

Sasol’s R5.6-billion Impumelelo Colliery is producing coal.

After Exxaro Coal Mpumalanga’s transfer of its 50% stake in the Arnot coal mine to mineworkers at no cost, the workers received a further 5% “free-carry” because of the specifications of Mining Charter III. The mine thus becomes South Africa’s first majority worker-owned mine. Wescoal is the other shareholder and operator of the mine.

Wescoal’s profits doubled in 2018 to R202-million, proof that the coal miner’s acquisition and expansion strategy is paying off. The company, which runs three mines and four processing plants in Mpumalanga, has a resource base of about 300Mt.

Although renewable energy is catching on in South Africa, there is no prospect of Mpumalanga’s coal-fired power stations being mothballed soon.

Nkomati Anthracite has been revived after an investment from Unicorn Capital Partners, formerly Sentula Mining. The mine, which is in the south-eastern corner of the province, has proven resources of 8.7-million tons and upwards of 400 jobs were created over the last two years. Local communities have a 16.1% stake in the relaunched mine

SECTOR INSIGHT

Mineworkers at Arnot mine have become majority shareholders.

and the Mpumalanga Economic Growth Agency (MEGA) holds 34%.

Coal giant Exxaro, which runs five mines in the province, has committed R3.8-billion to its Belfast project, an investment that will create 1 160 jobs and have an impact on the GDP (over the life of the mine) of R39-billion. Exxaro is also extending the life of its Leeuwpan Mine by another 10 years.

Mpumalanga accounts for 83% of South Africa’s coal production and is the third-largest coalexporting region in the world.

The opening in April 2019 of Sasol’s Impumelelo Colliery south-west of Secunda was the final phase of an investment in new coal mines to replace three coal mines that had reached the end of their lives. Sasol produces 40-million tons of coal annually. Impumelelo, which will produce 8.5-million tons per year, cost R5.6-billion to build.

Anglo American has sold its thermal coal operations to Seriti, which is therefore the secondlargest provider of thermal coal to Eskom, supplying almost a quarter of the utility’s annual coal requirements.

State coal company AEMFC (African Exploration Mining & Finance Corporation) runs a colliery at Vlakfontein near Ogies and is planning to develop other projects.

South32 has four collieries and three processing plants in the province. The company has 4 860 full-time employees and 4 400 contractors.

ArmCoal is a black-owned coal company that arose out of a deal between Xstrata Coal SA and African Rainbow Minerals Limited (51%). ArmCoal was the vehicle used in the creation of the large open-cut thermal coal mine at Goedgevonden.

Contribution to regional economy

Mining’s contribution to provincial GDP is 25.9% of GDP and the sector employs 53 000 people. Most of the province’s mining companies are involved in training. The Colliery Training College (CTC) in Emalahleni is owned by a consortium of companies: Exxaro, Glencore, Kanga Coal, South32 and Izimbiwa Coal. Historically the centre was for mining only, but now it offers a broad range of artisan training, including auto electrician, fitting and turning and millwrights. CTC has been recognised as a leader in artisan training by the National Skills Authority.

Coal, platinum, gold and nickel are the province’s major mineral resources and all are still in demand, even if coal and platinum have experienced roller-coaster price fluctuations. South Africa produces 75% of the world’s platinum, 80% of its manganese, 73% of its chrome and 45% of its vanadium.

Deposits of chromite, magnetite and vanadium are the basis of the ferro-alloy complex in Witbank-Middelburg (in the District Municipality of Nkangala) and Lydenburg (Mashishing). Nkomati Mine is South Africa’s only pure-nickel operation. The province’s coalfields are in the south and west of the province.

Stillwater Sibanye is the new owner of the Burnstone gold mine near Balfour. Stonewall Resources runs the TGME Project, near the towns of Pilgrims Rest and Sabie. Stonewall has ambitious targets of going beyond production of 40 000 ounces from this and other historic mines in the area.

ONLINE RESOURCES

Colliery Training College: www.ctctraining.org Minerals Council South Africa: www.mineralscouncil.org.za National Department of Mineral Resources and Energy: www.dmr.gov.za South African Institute of Mining and Metallurgy: www.saimm.co.za

Having taken full control of its Barberton mines, Pan African improved its BEE position (Shanduka Gold is a 23.8% shareholder) and set about increasing its annual gold output to 100 000 ounces.

Platinum is an important mineral for the modern economy. Two Rivers is a joint venture between Implats (46%) and African Rainbow Minerals. The operation is on the southern part of the eastern limb of the Bushveld Igneous Complex, south-west of Burgersfort.

Northam Platinum, which has assets on both limbs of the Bushveld Igneous Complex, has purchased the Everest mine from Aquarius Platinum. Everest is adjacent to Northam’s existing Booysendal mine.

Jubilee Platinum has sold its Smelting and Refining business in Middelburg to Siyanda Resources for R110.5-million. Sylvania Platinum now has seven PGM recovery plants that extract chrome from tailings on both sides of the Bushveld Igneous Complex.

Lydenburg is home to the Lion ferrochrome smelter that is a joint venture between Glencore and Merafe Resources. Assmang, the joint venture between ARM Ferrous and the JSE-listed Assore, operates a chrome mine (Dwarsrivier) and a ferrochrome plant where chrome alloys are made.

The Manganese Metal Company (MMC) in Nelspruit is the largest producer of pure electrolytic manganese in the world. MMC is owned by Samancor (51%) and Bilston Investments owns the balance.

Fast making strides in mining

Bontle Mtshengu

BIOGRAPHY

Bontle’s 18-year journey in mining has encompassed iron ore, minerals sands, gold, platinum and now coal. Her promotion in 2017 to Engineering Manager, where she now leads a team of more than 200, made her the first female to hold that post in Exxaro. She started her career as a mechanical technician and worked her way up to become an engineer. She has a Government Certificate of Competency (GCC) mines and works, and a diploma in mechanical engineering and is studying for a BTech. Mpumalanga Business spoke with two trailblazing miners who work at Exxaro’s Leeuwpan Coal Mine, Johanne Struwig and Bontle Mtshengu. Plant Manager Struwig was a finalist in the Top Young Achiever of the Year category of the 2019 Standard Bank Top Women of the Year awards, while Engineering Manager Mtshengu won the award in the category, Top Gender Empowered Organisation: Resources.

How did you choose mining as a career?

BM: Born in a rural small village called Cassel in the Northern Cape, my mother was a teacher in a primary school and my dad a truck operator in one of the mines. I found myself in a boarding school 700km away from home and coincidentally landed in a class with technical subjects in Grade 9. I fell in love with subjects like technical drawing and electricity. Mining became a natural choice when I was given an opportunity to do in-service training in one of the mining houses and thereafter received a bursary. JS: I think the mining industry chose me. I initially studied in the chemistry field. After I got a bursary from Exxaro, I started to work in mining and fell in love with operations and the culture.

When did you know this was a good choice?

BM: I eventually got exposed to maintenance management environment and truly fell in love with that. The training I received was remarkable. When I acquired the government certificate of competency (GCC) is when I knew I had made a good choice: having that legal appointment and seeing one’s contribution to the industry is the most satisfying feeling. JS: On Leeuwpan mine, I have had the opportunity to be involved in value chain operations from a technical point of view as well as business. I fell in love with the adrenaline of operations, the pride of mobilising people and overcoming a very challenging environment.

Did you encounter obstacles on your mining career path?

BM: Most women were recruited into positions and left there to fend for themselves. Basic needs like sanitary facilities, personal protective equipment (PPE) and safety underground were not available for women. Men were not made ready for this change. It was a shock to everyone. JS: I was privileged that Leeuwpan created a positive environment for my development. I had to learn through tough mistakes how to develop emotional intelligence. I started out trying to conform and it was only after I showed my own identity and being OK with that, that I really flourished.

Johanne Struwig

BIOGRAPHY

With a Bachelor’s degree in Chemical Engineering, Johanne was the first women (and youngest) Plant Manager to be appointed by Exxaro Resources at the Leeuwpan Coal operation. With a speciality in mineral processing, she also has diplomas in management and training in risk management. She previously worked as a metallurgical engineer and has been applying metallurgical principles to optimise coal beneficiation strategies. As a leader, Johanne has always built solid relationships with internal and external stakeholders.

What has helped you the most along the way?

BM: Ensuring that I’m competent at what I do, always asking questions and continuously learning new things. Certain people I met along the way, currently my two leaders (Mangaliso Sethethi and Baltimore Miles) and my mentor (Hemuna Bhola) have been playing a vital role in my development. JS: The most important building block of my career was mentoring. Through these mentoring relationships I found my rhythm allowing me to dance to beat of my own drum.

How did you feel to be nominated for the awards?

BM: This was a very humbling experience; this award means a lot for me. It means my contribution is recognised. However, this also comes with a vast responsibility to pave a way for young upcoming women to ensure they don’t go through the same experience I went through. JS: It was probably one of the proudest moments of my life. I am truly humbled and want to thank Mangaliso Sethethi (LPN BU manager) for believing in me and making me believe in myself.

Is the current mining environment better for women?

BM: The industry has made significant strides in executing transformation and promoting gender. A gap still exists in converting women in technical positions to senior and board management levels. More work must be done to create a space that is more accommodating to everyone, a space where diversity is embraced and a place where our differences make us strong. JS: I suppose it is. Over the past 10 years, women went from being tolerated to being accepted and even respected. Women are not appointed for the sake of statistics but as decision-makers and change-drivers in core positions. However, the way women approach the mining environment has also evolved. Women are more confident, which allows them to really show their competence. LPN specifically has also embraced diversity to the fullest and proved the value it adds to a business.

What should be prioritised to empower women?

BM: Companies need to develop clear strategies that focus on development and empowerment of women within businesses. This could include retention, fast-tracking programmes and executive mentorship programmes. Women also need to embrace the challenge and use the opportunity to empower themselves and others. JS: Growing and making a difference in the mining industry requires confidence, it requires women to be authentic. It requires us to be strong under pressure. It also requires us to remain women because that is what makes all the difference. As female leaders we have the responsibility to teach this to every lady that wants to make it in this industry through mentoring and coaching.