SA Mining Industry Snapshot May 2021 by SundayTimesZA

ONLINE EDITION INDUSTRY SNAPSHOT

SA MIN NG www.samining.co.za

EDITION 3 – MAY 2021

Acid mine drainage New peristaltic pumps Consulmet invests in AggMax

INNOVATIVE LEX AFRICA FUNDING WEIGHS IN

In the news Finance and legal Mine dewatering Products and services

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INDUSTRY UPDATE 4

CONTENTS

Komatsu celebrates 100 years Robert Hull joins UMS Anglo American demerges SA thermal coal operations

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16 NEW PERISTALTIC PUMPS LAUNCHED

ProMinent Fluid Controls has launched the DFYa and DFXa peristaltic pumps which are ideally suited to Africa’s arduous mining sector.

FEATURES 6

APPETITE FOR INNOVATIVE FUNDING

SA Mining speaks to LEX Africa’s network of law firms for insight into the appetite for innovative funding.

18 CDE’S AGGMAX KEY IN PARTNERSHIP WITH CONSULMET As part of the partnership with Consulmet, CDE’s innovative technology is now being applied to various projects in sub-Saharan Africa.

SCAN HERE

12 AMD – A YOKE AROUND SA’S NECK

The FSE outlines the short-term and long-term measures in place to handle AMD.

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FROM THE EDITOR

ONLINE EDITION INDUSTRY SNAPSHOT EDITOR Nelendhre Moodley 011 280 5782

Taking the good with the bad

moodleyne@samining.co.za

ONLINE EDITOR Stacey Visser 011 280 3671 vissers@businessmediamags.co.za

ART DIRECTOR Shailendra Bhagwandin 011 280 5946 bhagwandinsh@arena.africa

ADVERTISING CONSULTANTS

Noël van Breda 011 280 3456 / 082 717 1962 noelvb@samining.co.za Ilonka Moolman 011 280 3120 moolmani@samining.co.za

Nelendhre Moodley

hile the average South African is reeling from the double whammy of the recent steep petrol price hike and Eskom’s 15% electricity increase, the good news is that the mining sector is faring better. In fact, commodities are continuing to be in demand and mining houses are injecting massive amounts of cash to ensure project longevity. With this in mind, SA Mining caught up with LEX Africa’s network of law firms in South Africa, Zambia and Guinea, for insight into the funding options available to miners and the appetite for innovative funding methods. It is interesting to note that while South Africa and Zambia have a great appetite for more innovative funding options, Guinea continues to rely largely on the

PRODUCTION CO-ORDINATOR

Gail Mortinson 011 280 5369 / 011 328 2226 gailm@arena.africa

traditional methods of accessing funding (pg 6). And just in case you were under the impression that platinum group metals were just about rocks, swing to Ukwazi Mining’s column (pg 10) to find out just how much more there is to that highly prized precious metal that is abundant in South Africa. Now to that yoke around SA’s neck – acid mine drainage (AMD). Did you know that if 150 million litres of the neutralised AMD were released in the Vaal Barrage, 60 million litres of clean water would have to be released from the Vaal Dam to dilute the salinity (pg 12)? And speaking of water-related matters, we also feature ProMinent Fluid Controls’ recently launched peristaltic pumps (pg 16).

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SWITCHBOARD 011 280 3000 SUBSCRIPTIONS Gail Mortinson 011 280 5369 gailm@arena.africa

Arena Holdings, PO Box 1746, Saxonwold, 2132 Copyright Arena Holdings. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means, electronic or mechanical, without prior written permission. Arena Holdings is not responsible for the views of its contributors.

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INDUSTRY UPDATE

MOSHE CAPITAL

TO INVEST R350m IN MINING AND MANUFACTURING Private equity company Moshe Capital Fund Managers is looking to invest R350-million into diverse companies with a solid presence in their sectors. The firm has secured a funding commitment from FNB Commercial and has entered into a partnership agreement with RMB Ventures, both divisions of FirstRand. “Despite economic challenges, there are several opportunities for investment and growth in various sectors such as manufacturing, industrial, mining products or services and secondary agriculture in South Africa. We predominantly invest in established businesses with enterprise values of R200m or more,” says Mametja Moshe, founder of Moshe Capital. Moshe Capital Fund Managers is a wholly owned subsidiary of Moshe Capital and is 100% black women-owned.

KOMATSU CELEBRATES 100 YEARS Equipment manufacturer Komatsu celebrates its 100th anniversary on 13 May 2021. The company implemented commemorative activities to mark the milestone. Looking into the next 100 years, Komatsu will continue to move forward with its stakeholders as it creates value through manufacturing and technology innovation to empower a sustainable future where people, businesses and our planet thrive together. “As our business and stakeholders diversify further, we will strive to deliver this promise through our global operations,” the company said.

R350-million Investment Moshe Capital is looking to make

ANGLO AMERICAN DEMERGES SA THERMAL COAL OPERATIONS

Diversified miner Anglo American has announced the demerger of its thermal coal operations in South Africa. The separation will be implemented through the transfer of Anglo American’s thermal coal operations in South Africa to a new holding company, Thungela Resources, the demerger of the Thungela shares to Anglo American shareholders and the primary listing of Thungela’s shares on the Johannesburg Stock Exchange and standard listing on the London Stock Exchange. Mark Cutifani, chief executive of Anglo American, said: “As the world transitions towards a low carbon economy, we must continue to act responsibly – bringing our employees, shareholders, host communities, host governments and customers along with us. “Our proposed demerger of what are precious natural resources for South Africa allows us to do exactly that.”

SA MINING INDUSTRY SNAPSHOT

MAY 2021

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Training simulator.

ROBERT HULL JOINS UMS United Mining Services (UMS) Group has appointed Robert Hull (pictured) as chief operating officer effective 1 April. Hull, who was previously the MD for the South African branch of Worley, will be working closely with the executive team in driving the strategic growth of the group’s Shaft Sinkers and METS divisions within the mining and metallurgical processing sectors. A mining engineer by trade, Hull has extensive knowledge and experience in a multitude of mining methods including various surface and underground methods in select and bulk resources. Further to this, Murray Macnab has taken up the role of group technical director at the UMS Group. In his new role, Murray will be overseeing the development of technical knowledge, standards and innovative solutions for sinking and mining practices, including all research and development.

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FINANCE & LEGAL – COVER STORY

APPETITE

FOR INNOVATIVE FUNDING LEX Africa weighs in By Nelendhre Moodley

Amadou Barry.

Charles Mkokweza.

Chris Stevens.

SA MINING INDUSTRY SNAPSHOT

he robust demand for most commodities and the uptick in prices, particularly for precious metals, has seen a number of minerals and metal producers flagging project expansion initiatives. SA Mining recently caught up with LEX Africa’s network of law firms in South Africa, Zambia and Guinea for insight into the different funding options available to miners and the appetite for innovative funding. “There is a renewed interest from funders and funding institutions for financing projects in Africa, due largely to the upturn in commodity prices. Importantly, governments, such as the South African government, have recognised that mining companies have contributed greatly to revenue collection even through the difficult times of COVID-19 and appear to be shifting their focus to promote mining investment rather than hindering it,” says Chris Stevens, director of Werksmans Attorneys in South Africa. Moreover, increased policy certainty in countries like Zambia has led to improved confidence in the mining sector and subsequently a greater appetite for funding new projects. “There is a noticeable buzz in Zambia to restart a number of key projects that

MAY 2021

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had been put on the shelf,” says Charles Mkokweza, senior partner at Corpus Legal Practitioners in Zambia. Even the COVID-19 pandemic, which has been wreaking havoc across the globe, has had little impact on the financing of mining projects in Guinea, says Amadou Barry of Thiam & Associés in Guinea. “In fact, two major transactions – the financing of Compagnie des Bauxites de Guinée (CBG) and the Tri-K mining project – that were ongoing when COVID-19 hit, were finally closed in November 2020 and early 2021. “These two projects involved respectively $823-million and $122m in financing. This is largely due to improvements in the mining sector in recent years and an attractive debt environment (low interest rates for instance).” Funding options As Africa’s mining sector plays host to numerous international players developing local projects, the array of funding options are plentiful – be they the tried-and-tested traditional models or the more recent innovative models, such as streaming and royalty transactions. According to Mkokweza, while the traditional forms of funding are still commonplace, there is a definite shift

FUNDING OPTIONS

Innovative funding options offer larger profit margins, lower exposure to risks, and diversification.

Traditional forms of financing include: Debt financing where a mining company is funded by a bank or any other financial institution. Equity financing where the members of the company invest in the company by way of buying shares. Joint ventures where two or more entities contribute resources towards the venture or capital of the company. Cash reserves where a company uses its profits to finance capital projects.

– MKOKWEZA to the new forms of funding given the flexibility that the newer models offer and the inherent fairer distribution of risk and rewards among the stakeholders. With an increasing number of mining companies expected to struggle to gain finance through traditional methods, Stevens anticipates that the innovative arrangements (royalties and streaming) will become more popular. “Another advantage that will drive interest in the uptake of innovative options is that mining companies are able to gear off their reserves upfront which often enables projects to come into production quicker at a lower cost. The entity providing the streaming funding will acquire access to the physical production with less risk than a normal equity or funding arrangement.” Further to this, the benefit for financiers taking up the innovative funding options is the larger profit margins, lower exposure to risks, and diversification while remaining key players in the mining industry, says Mkokweza. The new funding options allow more

African miners, in particular junior miners, to get access to larger funds and financing instruments, says Barry, who expects to see the emergence of “different types of lenders” investing in the African market in the near future. “For instance, some Chinese lenders are even more interested in accompanying Chinese mining companies in their African projects.” However, despite the interest in the more innovative options, many African countries still have undeveloped mining sectors, so most investments are currently through foreign investment such as Australian, Canadian and South African mining and exploration companies. “Due to limited access to capital and a low level of available funds in the local financial system, African-owned companies often look to international markets and international funding institutions to raise funds. “However we find that these institutions are reluctant to finance projects held by African companies due to the perceived risks and a lack of www.samining.co.za

strong track record compared to their international counterparts. “As a consequence, many African companies are forced to partner with an international technical entity which, in return, assists with negotiating and finding large banks and financial institutions to finance the project,” says Barry. As for miners in Zambia, whose mining portfolios are largely owned and operated by international companies, funding is generally generated from off-shore funders. South Africa, with its more sophisticated mining industry, has over the years shown a decided preference for the more innovative funding models.

SA MINING INDUSTRY SNAPSHOT

MAY 2021

FINANCE & LEGAL – COVER STORY

INNOVATIVE FUNDING OPTIONS Royalty models. Streaming models. Public debt issues.

Pan African Resources recently used physical gold as the funding instrument. – STEVENS Aside from the traditional sources of funding such as bank finance, private equity, state institutional funding and listings on the Johannesburg Stock Exchange and other foreign exchanges, South Africa has an appetite for the new innovative ways of financing, such as streaming transactions and royalty transactions, says Stevens. “In South Africa, because of the indigenisation requirements under the Mining Charter, new financing methods have been developed in regard to the acquisition of such equity stakes through government institutions such as the [Industrial Development Corporation] as well as through vendor funding.” An example of a project in Zambia that has gone the route of innovative financing is the acquisition of Mopani Copper Mines by the state-owned investment company ZCCM Investments Holdings, where part of the acquisition costs were funded through a form of royalty financing. In South Africa, Pan African Resources recently accessed funding by receiving a loan of physical gold from a local bank over a 12-month period, with physical gold used as the funding instrument. Another example of innovative funding is that of Royal Bafokeng Platinum, which entered into a streaming agreement with Triple Flag Mining Finance Bermuda for

SA MINING INDUSTRY SNAPSHOT

gold delivery over the life of mine from its operation. The company received an advance payment on the closing of the agreement, says Stevens. Examples of large multinational mining companies operating in Zambia that have opted for innovative funding options include Mimbula Copper Mine and Lubambe Copper Mines. Unpacking the associated challenges Although the sector is experiencing better times, it continues to face some serious headwinds related, among others, to sovereign risk, policy uncertainty and nationalism or nationalisation, as well as community and environmental issues. In Zambia, the key challenge for mining companies relates to sovereign risk. “Zambia has embarked on an ambitious countrywide infrastructure programme mainly bankrolled and implemented by China. While this has triggered strong internal diversification of the economy and a long-term platform for growth, the amount of sovereign debt coupled with policy instability has created a domestic headwind,” says Mkokweza. However, the main challenge faced by companies operating in Guinea relates to “the strength of collaterals provided by borrowers and the limited capabilities of local funding institutions”.

MAY 2021

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“We have noted that the size of the financing to be raised does not allow local funding institutions to align, given the low level of capital at their disposal. Moreover, prudential regulations imposed on local funding institutions force them to comply with certain ratios (i.e. solvability ratio) resulting in funds being set aside by banks as a coverage for their risk exposure.” In South Africa environmental issues, in some instances, have hindered the development of mining projects, and environmental groupings, or nongovernmental organisations, have through litigation hampered the process of mining operations or applications as a result of serious environmental concerns, says Stevens. He also cites the proposed Mineral Sands project in the Xolobeni coastal area of South Africa where community issues have prevented the development of the mine and the Tendele Coal Mine in South Africa which has been associated with community issues that have led to litigation. n

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PRECIOUS METALS

PGMs

MINING ISN’T JUST ABOUT ROCKS

By Spencer Eckstein, director – business development Ukwazi Mining Studies

SA MINING INDUSTRY SNAPSHOT

ver wonder what we as South Africans are really good at? No, it’s not rugby, although sometimes we are, like when we won the World Cup in Japan. No – it’s mining, particularly platinum group metal mining. It’s deep, it’s dangerous, and it’s costly, but it’s worth it, when you find the right stuff safely. And we hold about 80% of the world’s PGM resources in our own backyard. The bulk of the PGM products are used for catalytic converters in the auto industry, but they also have applications in the medical and pharmaceutical, aerospace and defence, petrochemical and food industries, just to name a few. Where’s the magic? The use of PGMs in proton exchange membrane (PEM) and fuel cell electric vehicle (FCEV) technologies offers South Africa a unique opportunity to demonstrate global leadership and expertise in these fields. Furthermore, the combination of current geopolitical factors and the inauguration of a climate-friendly Biden administration, the realities of a postBrexit world, as well as global recovery from the impacts of COVID-19, have created a “perfect” storm for commodity prices. They are positively surging to record highs – platinum is in the region of $1 172/ oz, rhodium is approximately $29 200/oz

The global race to make hydrogen work as an energy source is on. – ECKSTEIN and palladium is in the region of $2 336/oz. Some commentators are of the view that a super cycle has already started. Either way, South Africa’s PGM industry is well-positioned to take advantage of current circumstances. There is also the global demand to decarbonise the mining industry; to factor in renewables and implement environment, social and governance (ESG) principles. This of course puts increasing pressure on local and international players to comply, while also focusing on operational excellence, stakeholder management and financial profitability. There are now some 81 countries MAY 2021

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developing or who have completed studies looking at hydrogen strategies. That’s future-focus on a country scale. The European Union has committed itself to zero-carbon emissions and 32% use of renewables by 2030 in its energy mix, and aims to achieve climate neutrality by 2050. The United States is now not far behind, as it has reaffirmed its commitment to the Paris Climate Accord. In addition, China has indicated that it intends to be carbon-neutral by 2060, and that 25% of its primary energy mix will be non-fossil fuels, i.e. renewables plus nuclear, by 2030.

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Mining is a complex mix of art and science, and individual companies will have to effectively engage with the technology and strategic options that the hydrogen economy has to offer. Initiatives already under way: As early as 2007, the South African government approved the South African National Hydrogen Energy and Fuel Cell (HEFC) R&D Strategy – this will need to be updated, however, since significant advancements on groundwork have been done. In June 2020, the German Federal Government invested €5.7-million in developing the Green Hydrogen Atlas -Africa project, which will help African countries, including South Africa, to define its hydrogen roadmap. Green hydrogen (as opposed to blue, which originates from oil and gas, and brown which comes from coal) is derived from using PGMs as a catalyst for electrolysis in which water is split into hydrogen and oxygen. Green hydrogen is also the variant used in PEM and FCEV, and may be a product where South Africa has a comparable, competitive advantage. Many of SA’s PGM producers are part of the Hydrogen Council (e.g. Anglo, BHP and Shell are members). Investment funds have also been established – this includes the AP Ventures Fund, which has investors including the Public Investment Corporation of South Africa, Anglo American Platinum, Mitsubishi Corporation, the Toyota-linked Mirai Creation Fund, Plastic Omnium and now also Sumitomo Corporation, generating capital that can be used for various hydrogen projects.

Some South African companies have already improved the electrolysis process using iridium as the catalyst rather than platinum or palladium. Where it gets really interesting is where mining companies start to substitute or supplement electricity supplied by Eskom with their own energy production. For example, by using renewables such as solar or wind energy, and using excess electricity to split water into hydrogen and oxygen (allowing hydrogen to be used as a clean fuel source). Recently, Goldfields received authorisation for its 40MW solar plant at South Deep, and Sibanye is planning a 50MW renewable programme for West Wits (near Libanon mine) and a 200MW setup for its operation in the North West. Sibanye is currently conducting further analysis to determine its hydrogen strategy going forward.

Catalytic converter.

www.samining.co.za

PGMs have applications in the medical and pharmaceutical industries.

€5.7-million German government investment in developing the Green Hydrogen Atlas-Africa project

Enlightened self-interest? The global race to make hydrogen work as an energy source is on. It’s a unique opportunity within the mining sector in general, and the PGM industry in particular, to lead and deepen these and other initiatives by formulating and implementing the right strategy at national, industry and individual company levels. It is critical that technology choices are data-driven, that appropriate policy interventions are prioritised and that ESG-led monitoring and measurement frameworks are put in place. What’s more, collaboration is key – partnerships need to be established in order to drive success. It is not often that you get the opportunity to redefine the energy base of an industry or an economy. Developing the hydrogen economy, centred around our PGM mines and technologies, could be a breakthrough moment for our country. It is so innovative and disruptive, it might even be interesting enough to tempt Elon Musk to lend a hand. n

SA MINING INDUSTRY SNAPSHOT

MAY 2021

MINE DEWATERING

ACID MINE DRAINAGE

A YOKE AROUND SA’S NECK By Nelendhre Moodley

cid mine drainage (AMD) continues to pose a serious challenge to the country. SA Mining caught up with CEO of the Federation for a Sustainable Environment, Mariette Liefferink, to find out about the latest developments related to the short- and long-term solutions to AMD. What are the latest developments being undertaken with regard to AMD? The short-term treatment of AMD is a partial treatment of AMD. The shortterm treatment currently contributes an average daily total dissolved solids (TDS) load of 362 tonnes to the Integrated Vaal River System (IVRS), which is unsustainable in the long term. AMD is the most concentrated salt stream. The elevated TDS concentrations in and below Vaal Barrage therefore remain a critical concern. The need to update/recalibrate the IVRS Salinity Model is a key driver to determine implementation of the AMD long-term solution (LTS). Funding the project offbudget (i.e. 33% via the Vaal Tariff and 67% MTEF allocations) presents risks for the government loan guarantee and is not sustainable. The fiscus has, however, agreed to fund all costs for the AMD short-term solution (STS) to completion, including operations and maintenance. On the basis of funding risks and inconclusive data, the AMD LTS is

SA MINING INDUSTRY SNAPSHOT

provisionally deferred. However, other diffuse salinity contributions, drought conditions, etc. need to be understood to determine broader risks and implications going forward. For this reason, the IVRS Salinity Model study needs to be expedited.

R10bn Required capex to handle AMD longterm solution

Are the industry and government meeting their proposed short-term target for eradicating/reducing AMD in the various basins? While there are some benefits associated with the short-term treatment of AMD, AMD is increasing within the Central and Eastern Basins and a reduction in the amount of AMD that is generated has not been observed, notwithstanding the high pumping outputs. The depth profile monitoring has confirmed that AMD does not stratify – i.e. that poor-quality water will remain deep in the voids while better-quality water will manifest higher up, closer to the surface. The monitoring results therefore

MAY 2021

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confirm that mine water cannot be allowed to flood the mine voids and decant since it will have significant impacts on Johannesburg and downstream water users. Pumping and treatment of mine water will therefore have to continue. In the Western Basin, because of alkaline tailings being deposited in the open pits, the DWS reports that there has been an improvement in the AMD signature. What aspects of the project are still outstanding in terms of the short-term targets for AMD? Apportionment of liability and the enforcement of the polluterpays principle. This calls for the implementation of the Waste Discharge Charge System. According to the DWS a professional service provider was appointed to pilot the programme in three priority areas. The intention is that the Waste Discharge Charge System will be rolled out countrywide following results of the pilot programme. The essence of this programme is to ensure that polluters pay for damages caused. The recalibration of the salinity model of the Vaal Barrage may take up to three years to perform and implement. The DWS established a team of experts to undertake a situation assessment on AMD in the Witwatersrand. The final report planned for September 2020 has been

AMD is increasing within the Central and Eastern Basins. – LIEFFERINK Limpopo, low flow.

delayed due to COVID-19. Although final decision making on the desalination of AMD is reliant on this study, in the absence thereof, a phased approach by means of package plants could be followed should it be necessary to protect the environment and/or to augment the Vaal River System with potable water. How much has been spent to date on initiatives related to reducing AMD? Initially the capex for the short-term solution was R1.71-billion (Western Basin R553-million, Central Basin R436m and Eastern Basin R721m). However, according to a recent presentation by Bashan Govender, acting director of the DWS’s Mine Water Management, the capex is R2.6-billion and the annual operational costs are R293m.

What are some of the key lessons learnt from the implementation of the short-term AMD strategy that can be used in the long-term solutions plan? AMD contains a wide spectrum of metals in toxic concentrations including radioactive metals. In most cases, the metals will precipitate out of solution if the pH is adjusted upwards, i.e. the water is made more alkaline. The metal sludge or waste from the treatment of AMD is the Achilles heel since there is no beneficial use for the waste or metal sludge. There is a need for sustainable solutions pertaining to the disposal of the metal and radioactive sludge. The sulphate levels of the treated AMD within the Western Basin are reduced by the short-term treatment from 2 500mg/l

Cement-like sediments instream.

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to 2 200mg/l, and within the Central Basin from 3 400mg/l to 2 700mg/l. In order to comply with the regulatory limit of 600mg/l sulphates, good-quality water has to be released from the Vaal Dam in order to ensure that the water below the Vaal Barrage is fit for use, that is, by means of dilution. The Eastern Basin AMD Treatment Plant, the Central Basin AMD Treatment Plant and the Western Basin Treatment Plant are currently discharging 180 million litres of neutralised AMD into the Vaal Barrage in terms of the short-term treatment of AMD. If 150 million litres of the neutralised AMD is released in the Vaal Barrage, 60 million litres of clean water will have to be released from the Vaal Dam to dilute the salinity. The volume in the Vaal Dam is insufficient and will have to be augmented by the Tugela-Vaal and the Lesotho Highlands Water Project 2. If water from the Vaal Dam is required to dilute the high salinity associated with the short-term treatment of AMD, the purpose of the Vaal Dam will be lost. It is anticipated that the Lesotho Highlands Water Project 2 will only result in impoundment in 2027 or even later and that the desalination of mine water (the long-term treatment of

SA MINING INDUSTRY SNAPSHOT

MAY 2021

MINE DEWATERING

For 150 million litres of the neutralised AMD released in the Vaal Barrage, 60 million litres of clean water is required to dilute the salinity. – LIEFFERINK

sludge is disposed of in the West Wits Pit in the Western Basin, the Brakpan Tailings Storage Facility of DRDGOLD in the Central Basin and into drilled boreholes in the Eastern Basin. The costs for the pumping and treatment of AMD should not fall only on the state. There needs to be an apportionment of cost/liabilities.

AMD), depending on the outcome of the proposed recalibration of the salinity and hydrology model of the Vaal Barrage, will only be implemented by 2033. It is anticipated that due to increased coal mining and coal fire power generation (energy demand is predicted to double by 2030) and uranium mining (nuclear power), the challenge of AMD will increase. If there is absent or ineffective forward planning by government, the mine water impacts will continue to be externalised. The liquidation of mining companies, such as the Mintails Group of Companies, Blyvooruitzicht Gold Mining Company, Grootvlei Mine, etc., has resulted in an exacerbation of impacts of AMD. Liquidation of mines allows for the externalisation of the pumping and treatment of pollution water to neighbouring mines, the state and future generations. Sludge disposal remains problematic – currently the high-density metal-rich

By when is government intending to start rolling out the long-term AMD plan? The long-term solution is provisionally deferred due to financial constraints as well as due to a recalibration of the salinity and hydrology model of the Vaal Barrage. The LTS involves the desalination of the AMD to make it fit for reuse. The National Water and Sanitation Master Plan actions the desalination and the reuse of treated AMD to supplement water supply by 2030. Other interventions are the water conservation/water demand management, mega augmentation or

Illegal mining common in tributaries of the Vaal.

Metal and salt precipitate.

water transfer schemes e.g. TugelaVaal and the Lesotho Highlands Water Project-2, the proposed Jana and Mielietuin Dams and elimination of illegal water use. What is the proposed cost of the longterm plan and what are some of the associated challenges? According to Govender, the costs associated with the long-term solution are R10bn (capex) and R900m per annum for the operational costs (as estimated in 2013).

AMD poses a serious challenge to industry.

There is mention of a proposed environmental levy – what are your thoughts on the matter? The introduction of an environmental levy was proposed by National Treasury. AMD is of course a legacy issue and will continue for many years after mine closure. Justice and equity demand that the polluter-pays principle be applied retrospectively, and not only be applied to the last man standing. n

SA MINING INDUSTRY SNAPSHOT

MAY 2021

www.samining.co.za

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MINE DEWATERING

PROMINENTLAUNCHES FLUID TWO NEW CONTROLS PERISTALTIC PUMPS

By Nelendhre Moodley

auteng-based ProMinent Fluid Controls recently launched two new products, the DFYa and DFXa peristaltic pumps, which are ideally suited to Africa’s arduous mining sector. SA Mining recently caught up with account manager Lizzie Myburg to chat about the company’s product offering.

customer service offering. We are passionately committed to environmentally sound, sustainable and cost-effective solutions for metering technology and water treatment.

How important is the mining sector to the company, and how has it grown this segment of the market Tell us a bit about ProMinent Fluid over the past few years? Controls? The mining sector is very important The ProMinent group of companies to us; however growth in this has been developing and market has been slow. We believe manufacturing components and that given the introduction of the systems for metering liquids and latest products, there is room for solutions for water treatment and an uptick from the local market. water disinfection for over 55 years. Interestingly, sub-Saharan Africa The company’s global success story has shown a significantly better is related to its high-quality products growth than the local market. based on decades of engineering Among the key reasons for our expertise, an in-depth understanding success is that the ProMinent range of applications and continuous of equipment is robust and well innovation. able to handle a range of chemicals, The group of companies – MYBURG dust and heat. The products are as continuously invests in research and effective on the surface as they are development. The ProMinent group in underground operations. ProMinent equipment works well has a high degree of vertical integration at its 12 production sites to ensure that chemicals are always metered correctly and that worldwide, including Heidelberg, guaranteeing high levels of the operation runs reliably. quality for our customers and ensuring our independence from fluctuations in supplier markets. For the mining sector, which are your top products? The modular ProMinent range enables our customers in a wide Our top products are chemical metering and peristaltic range of industries to achieve maximum safety and efficiency in pumps, as well as polymer make up systems and solid dosing their production processes at all times. with for instance lime for pH correction. The two new DFXa For us, customer proximity means working with the customer and DFYa peristaltic pumps have proved to be a perfect fit in to find the right solution for individual needs. Personal, practical the mining sector. advice and smooth project handling are a significant part of our

The two new DFXa and DFYa peristaltic pumps are a perfect fit in the mining sector.

SA MINING INDUSTRY SNAPSHOT

MAY 2021

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Polymer makeup system Ultromat.

Given that ProMinent Fluid Controls’ goal is to increase product efficiency and ensure safety for your customers, how has this translated in terms of product development? All of the ProMinent products are developed in-house at our factory in Germany. This ensures a high-quality product that is continuously developed. With the current focus on Industry 4.0 and remote monitoring of processes, the DFYa and DFXa offer not only control options that are currently not found on any other peristaltic pump in the market, but also the option to monitor all pumps via a cloud platform. How do the DFYa and DFXa peristaltic pump ranges meet the drive for increased efficiency and safety? The internal electronics in the pump offer a wide range of fault detection, and via the extensive range of communication options, faults and possible situations can be detected before they become a safety hazard. Are the latest products available to the African market? The products were launched in 2020 and are available to the African market, including South Africa. Already, one of the pumps

The ProMinent group of companies manufactures metering liquids and solutions for water treatment.

has been shipped to the Democratic Republic of the Congo, with six more awaiting dispatch to a local mine, while another is earmarked for a sweets manufacturer in Johannesburg. Further to this, we have demo pumps available for testing at our warehouse in Johannesburg. What are other key defining features of the new products, and how well suited are they to the African mining market? The ProMinent peristaltic pumps have been on the market for years and have an extremely good reputation for quality and reliability. Control for the pumps is new and offers customers better functionality than just the standard on-off pumps that are on the market. Other key features on the DFYa and DFXa are: Adjustment of the metering rate directly in l/h or gph. Simple hose change. Metering abrasive fluids, possibly containing particles. No problems with very gaseous media or air locks. Suitable for viscosities of up to 50 000 mPas. Sole contact with media in the hose. ■

– MYBURG DFYa smart peristaltic pump.

PROMINENT FLUID CONTROLS Zone 1&2 solenoid dosing pump

Zone 1&2 solenoid dosing pump.

DFYa smart peristaltic pump DFXa smart peristaltic pump liquid end

ProMinent Fluid Control SA 3 Hurricane Avenue, Ext. 4, Germiston Tel no: 011 323 5000 E-mail: ZA-Sales@prominent.com www.prominent.co.za

Polymer makeup system Ultromat

ProMinent Fluid Controls products are available in more than 100 countries around the world. Including its subsidiaries, the company employs around 2 600 people, focusing on sales, production and service.

PRODUCTS & SERVICES

CDE’S AGGMAX THE PRIZE FOR

PARTNERSHIP WITH CONSULMET

n 2018, CDE and Johannesburg-based minerals processing solutions provider Consulmet set up an agreement to collaborate on projects in the subSaharan Africa market. Wet materials processing experts CDE and Consulmet committed to identifying ways to adapt wet minerals processing equipment into bespoke solutions that could help the broader mining industry unlock and maximise resources that have previously been disregarded. Consulmet is a specialised engineering and project house serving the minerals and metals processing industries through the design, supply and construction of modular production-ready processing and beneficiation plants. As part of this unique partnership, CDE’s innovative technology is now being applied to various projects in the region. The partnership led to one of CDE’s earliest successes in the region’s mining industry through the application of its technologies for both alluvial and kimberlite diamond operations. The jewel in the crown of the partnership is CDE’s AggMax modular logwasher set-up for scrubbing and sizing. Consisting of a RotoMax logwasher and dewatering screen, the AggMax delivers supreme scrubbing and unrivalled wear due to its alloy paddle design and helical arrangement. Over the past two years, Consulmet has invested in four CDE AggMax plants and has also commissioned CDE’s R-Series primary scalping screens and EvoWashTM solutions as part of its various projects in the region. One of the first projects commissioned was for the BK11 diamond mine in Botswana, following Consulmet securing the contract for upgrades and modifications to the existing on-site plant in 2015. Previously mothballed, the BK11 kimberlite mine in northern Botswana

SA MINING INDUSTRY SNAPSHOT

Over the past two years, Consulmet has invested in four CDE AggMax plants. – GARG had been inefficient in scrubbing the highly weathered kimberlites, resulting in excessive clay being fed to the secondary cone crushing circuit, causing severe blockages. The Consulmet/CDE team introduced a secondary cleaning process using CDE’s AggMax 83SR after the primary rotary barrel scrubbing. The two fractions, a 1-35mm and 35-90mm material, were cleaned extremely well removing previously discarded, heavily clay-bound material ensuring optimised processing downstream. An additional major benefit was the efficient removal of organics ahead of the XRT diamond recovery module. XRTs are material sorting systems used to identify and separate/classify material based on its atomic number. It allows for high material recovery and accurate classification. Most recently the partnership has delivered solutions for two key diamond projects. One is a 500tph greenfield diamond plant in Zimbabwe, which

MAY 2021

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benefits from two RotoMax 250s, discharging onto a single classification screen. This secondary scrubbing application has been integrated with the primary scrubbing, XRT sorting and crushing on site. The second was a smaller processing plant, for a diamond mine in South Africa, that features a primary scrubbing and screening section, feeding into CDE’s RotoMax 80. This discharges onto a classification screen, separating into three fractions – 4-8mm, 8-16mm and 16-35mm. This module ensures adequate feed preparation and removal of organics, for processing through an XRT sorting system. CDE’s AggMax technology is engineered to operate in the toughest of conditions to maximise product yield from the most abrasive of feedstocks. Combining feeding, scrubbing, screening and sizing on one chassis, the AggMax is suitable for various material streams and across different industries.

The AggMax is suitable for various material streams.

The AggMax plants are modular, economical and innovative in design, and robust in terms of general maintenance.

The AggMax 83SR used in a secondary scrubbing vegetation removal application on kimberlite in Botswana.

The unique spiral alignment of its paddles reduces the shock of intermitting loads on the gearbox, motor and bearings. This design ensures consistent material loading and the unique paddle shape ensures maximum attrition with even the heaviest clay-bound feed material. Engineered to maximise the operational life of the plant, Xtryl paddles are extremely durable and incorporate integrated wear protection plates to protect fixings. Xtryl is a CDE-developed material for maximum wear properties to be used in abrasive applications such as AggMax paddles. It incorporates CDE’s pioneering Infinity Screen technology, which offers greater screening capability and reduces power consumption. Its effectiveness at scrubbing heavy clay-bound material liberates the valuable materials, removing waste and vegetation to protect the downstream systems, which means XRT sorting systems are also considerably more efficient especially as the plant incorporates a trash screen to float off organic contaminants that are often classified incorrectly. CDE’s regional manager for the Middle

– MOSTERT

East and Africa, Ruchin Garg, said the partnership with Consulmet was an opportunity to drive innovation in the region. “It’s a very exciting partnership and one that provides both companies with the opportunity to grow our presence further in sub-Saharan Africa. CDE is supplying Consulmet with world-class processing technologies that are being widely adapted by mining operations throughout the region. “Our equipment is delivering major efficiencies, particularly in the diamond industry, through projects delivered by Consulmet. Their success is our success. These projects are demonstrating the capabilities of our technology and the industry is noticing the benefits to be had.” Derek Lahee, Consulmet’s managing director, said the partnership with CDE had been mutually beneficial. “Partnering with selected and innovative original equipment manufacturers has been a strategy of Consulmet’s for a number of years now, with the CDE partnership being one of the www.samining.co.za

first that we formalised. “One of the challenges that we encountered in some of our early diamond plants was heavily clay-bound particles not completely breaking down and carry-over vegetation contaminating our XRT circuits. The AggMax technology proved to be a perfect solution to both of these challenges and the CDE team’s professionalism in assisting us to solve these challenges was most gratifying.” Wildu Mostert, Consulmet’s operational director, says the units are modular, economical and innovative in design, and robust in terms of general maintenance. “Consulmet and CDE also worked together to deliver a solution to a longstanding South African client in the coal industry. The materials handling project included two CDE-supplied R4500 apron feeders, complete with 90m3 feed reception hoppers, allowing direct tip feed, which in turn minimises materials handling. “These units transfer to two Consulmet conveyors, handling 450tph, crossing a road, with a gantry span of 42m, for transportation of coal to the other side.” ■

SA MINING INDUSTRY SNAPSHOT

MAY 2021

PRODUCTS & SERVICES

BELL LAUNCHES GLOBAL PREOWNED EQUIPMENT WEBSITE Equipment manufacturer Bell Equipment recently launched a dedicated global website, pre-owned. bellequipment.com, which is also accessible from the company’s website. Doug Morris, Bell Equipment’s MD: Europe, Middle East and Africa, who has overseen the project, said: “Previously our efforts were localised, and we wanted to create an online solution to promote our pre-owned equipment globally. “The website gives Bell operations and dealers access to a fully integrated platform to advertise their pre-owned

4 647

Bell machines. This means that customers around the world can shop for all the pre-owned equipment we have available from one user-friendly and convenient website. “The website is easy to navigate and groups machinery according to industry, namely mining and construction, forestry, agriculture, roads and rehabilitation, crushing and screening, and application equipment.”

Number of detonators BME blasted

KLEEMANN UNVEILS NEW MOBILE JAW CRUSHER With the market launch of the new MOBICAT MC 110(i) EVO2, Kleemann has introduced a mobile jaw crushing plant of the new generation. The product offers groundbreaking technologies for optimising all areas of a typical workday, focusing on economy, operability and sustainability. A special highlight of the MOBICAT MC 110(i) EVO2 is a new effective two-stage overload system, which effectively prevents blockages and material bridging that can often lead to unwanted downtime. With the further development of SPECTIVE, the digital operating concept has an intuitive structure and revolutionises plant operation with its extensive features. The 12-inch touch panel has been optimised with regard to user guidance and visualisation. Furthermore, new components such as a radio remote control have been integrated in the SPECTIVE world. The new digital solution SPECTIVE CONNECT sends all important plant data to the smartphone.

SA MINING INDUSTRY SNAPSHOT

MAY 2021

BME BLASTS ITS WAY TO SA RECORD

Blasting and explosives supplier BME recently broke another South African record for the largest electronic detonator blast, the company said. The blast was conducted by BME, an Omnia Group company, at the end of 2020 at a manganese mine in South Africa’s Northern Cape province. Using its AXXI electronic initiation system, BME was able to plan and execute a blast of 4 647 detonators. Just a few months earlier, the company broke a previous record at the same mine by initiating 3 780 detonators in a single blast. “The latest achievement involved a remarkable 535 tonnes of emulsion explosive in over 2 300 blast holes requiring a total of more than 37 000m of drilling,” said Kobus Boonzaaier, BME area manager in the Northern Cape. “The resulting blast was able to move almost 2.3 million tonnes of rock within a matter of seconds.” Boonzaaier said the advantage of these large blasts was that they allowed mines to blast less often, meaning less disruption and a more streamlined mining operation.

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If its not INVAL, it’s not Invincible

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INTEGRATED INTELLIGENCE. ONE DROP AT A TIME.

Optimising your mining efficiencies through intelligent delivery systems. Our Mobile Manufacturing Units offer a safe and seamless delivery solution that easily integrates with your surface mining process.

Our intelligent Mobile Manufacturing Units are capable of delivering the full range of our bulk explosives for all surface mining applications. These units offer safety control systems, ease of operation, maintenance and reliability.

SA Mining Industry Snapshot May 2021

Articles inside

NEW PERISTALTIC PUMPS LAUNCHED

CDE’S AGGMAX KEY IN PARTNERSHIP WITH CONSULMET