Grootegeluk

COMPANY PROFILE

2014

Grootegeluk Mine

Still and integral part of the energy mix

company profile

Still an integral part of the energy mix Editorial: Harriet Pattison Production: James Clark

Grootegeluk Coal Mine has been labelled as one of the most efficient mining operations in the world.

IndustrySA speaks to Business Unit Manager, Mervin Govender to find out about the company’s new industry innovations and popular training opportunities.

The coal industry is once more on the rise after it suffered a major decline when the world began opting for liquid fuel. An initial source of energy for hundreds of years, the rising cost of oil and gas has since prompted an increase in the demand for coal.

South Africa represents the third largest coal producer in the world and currently holds 11% of the world’s total coal reserves. The coal mining industry plays a vital role in the country’s economy and while a large proportion of the coal produced is consumed by the South African energy sector, mainly power stations like Medupi, a staggering 70 million tonnes is exported each year via Richards Bay Coal Terminal.

first of its kind in Africa to use some of the most efficient and lowest emission coal-fired technology. The GMEP represents one of the largest mining growth projects in South Africa and by 2018/19 coal supply to Medupi is expected to be in full production.

With two new dense medium coal beneficiation plants on site, Govender explains, “both facilities are now ready.

We have a few contractors making small improvements to the plants with regards to dust control etc.” Grootegeluk currently has the world’s largest beneficiation complex.

Beneficiation is the treatment of raw materials, like coal, to improve their chemical and physical properties in preparation for further processes which add monetary value.

GROOTEGELUK COAL MINE

TRUCK AND SHOVEL

The Grootegeluk open-pit coal mine is situated in the Waterberg Coalfield, in the Limpopo province, currently employs more than 2000 workers. The company produces in excess of 18.8 million tonnes of coal each year. Mervin Govender, Business Unit Manager of Grootegeluk, explains that with the completion of the Grootegeluk Medupi Expansion Project (GMEP), Grootegeluk will also supply to the Medupi power station. An estimated 14.6 million tonnes of power station coal is needed every year for Medupi, the

Govender explains the conventional process of mining coal, often referred to as the ‘truck and shovel’ method, can be likened to “high level gardening”. The process involves, “marking it off and blasting it into loose material to create a stockpile. Big shovels are then used to scoop the coal up where it is put on to trucks, taken all the way to the tip bins and finally, on to the processing facilities.”

Although truck and shovel is a tried and tested method for the coal mining industry, an innovative new conveyor

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Grootegeluk Mine

system has now been implemented at Grootegeluk. Rather than loading the coal on to the trucks, coal can now be transported out of the pit on a 6km conveyor belt to the processing facilities. Govender explains this conveying system is “much more efficient as it reduces carbon emissions and the heavy dependency on mining trucks.”

With 50% of South Africa’s remaining coal reserves held in the Waterberg coalfields, Govender attributes the efficiency of Grootegeluk to its world class mining operation. “We never stop innovating and improving,” he says. “It is a highly complex situation. We have the mine and the processing facility on one site where it is processed.

It is a massive complex and we are running three different products, the power-station product, the semi-soft coking coal and metallurgical coal, from the same complex.”

Govender adds that Grootegeluk has an abundance of technical flexibility which allows the company to alter its product amounts; for example pull back on semi-soft coking coal to respond to the more affluent market of power station coal. “Very few coal operations can do this,” he says.

PLANS FOR THE FUTURE With the paperwork finalised and mining agreement in place, plans for the Thabametsi mine, a greenfields

development, are now in bankable feasibility stage. With an estimated time frame of 2015-2025, Govender explains, “we are waiting for an offtake agreement, once we have this it should move very fast.” An offtake agreement is normally negotiated prior to the construction of a mine to secure a market for the future output of the facility.

With the demand for coal increasing, the international price is inevitably rising too which may affect future business.

“The market is never fixed and continuously goes up and down so despite there being a better price on the domestic market than on the international, we are compensated by the exchange rate,” Govender explains. This increase has not shielded further plans for expansion either with opportunities to supply coal to other markets, Govender explains, “We are innovative in finding these markets. We are not currently supplying to India but we are looking into it.

We export a lot into Europe too and are exploring different destinations to see if we can supply coal there as well.”

TRAINING AND KNOWLEDGE Grootegeluk prides itself on its training facility opportunities in Waterberg. The company has an impressive capacity to train up to 350 artisans, including electricians and mechanics.

Govender explains, “this mine is not a short-term mine so

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company profile

we invest heavily on our people. We spend a lot of money on our front line supervisors and pay particular attention to our bottom line employees.” He stresses the importance of these workers adding: “There is a lot of value to be extracted from the bottom. We ensure a lot of knowledge is handed down to these workers to make sure they understand mining processes in a lot of detail. From there, they then have the confidence to take this product of the right quality to the next customer.”

Training in the mining industry is essential, especially with expansion plans and increasing demands. Govender believes this preparation is imperative for Grootegeluk, looking to the future he explains: “If you have such a high dependency on one mine, you must ask yourself; what should the management at that mine look like? It is not just about the mine and Eksom but about the country as a whole. The right people are needed to take this forward and deliver the goods,” he says.

“We believe that what we do now with regards to training our senior management; making sure they understand the procedures, how to manage themselves, how to manage their team and how to manage the organization; will move the company forward and result in superior products.”

FRONT LINE INNOVATION

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Grootegeluk has already come up with a unique and innovative solution that sees HR employees being moved to the front line. “Employees in the admin offices have been given the opportunity to be trained, free of charge, in a production skill. As part of their development, they are starting to understand the implications at the bottom and are using that information to start improving their processes,” explains Govender.

Giving a clerk the opportunity to train free of charge as a truck driver, ensures that if there was a business interruption, Grootegeluk has enough people to drive the product to the power stations, causing minimal impact to business.

“Although this is a different way of thinking, it has proven very popular with employees and we feel this will help us in moving forward,” says Govender.

BIG PLANS In 2012, Grootegeluk launched their vision to produce an incredible 40 million tonnes of coal by 2020. “We are trying to create the same goal so our people on the ground understand their contribution. Our destination is very clear and each year we assess how close we are to that vision. We see improvement on this mine as our priority and welcome suggestions at any time. Above all, we feel we’re moving forward,” concludes Govender.

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The front line of construction The front line of

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info@hcmsa.co.za Hitachi Construction Machinery Southern Africa Co (Pty) Ltd. Hitachi Construction Machinery Southern Africa Co., Limited Atlas Road Boksburg North Tel: +27 (0) 11 841 7700 Atlas Road Boksburg North Tel: +27 (0) 11 841 7700

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