SA Mining Jan/Feb 2024 Edition by SundayTimesZA

55°C: Minimum flashpoint for diesel

50%: SA’s share of additional manganese output

SA MIN NG JANUARY / FEBRUARY 2024

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READ WHAT REALLY GOES DOWN IN SADC R39.90 (incl VAT) International R44.50 (excl tax)

INSIDE:

The dangers of contaminated diesel

EXPLOSIVE DISRUPTION Better blasting technology

JUST ENERGY TRANSITION Outlook 2024

CONSULTING Reducing ESG costs Lili Nupen, NSDV Inc’s Director and Co-founder

NSDV

BRINGING JUNIOR MINERS BACK HOME

FINANCE & LEGAL CORPORATE PROFILE

HOW AFRICA CAN BENEFIT FROM THE JUST ENERGY TRANSITION With the continent holding the largest known reserves of the minerals the world needs for the Just Energy Transition, effective cooperation between nations will see the whole of Africa benefit.

frica is home to some of the world’s largest deposits of minerals, including the critical minerals required for the Just Energy Transition (JET). It is undisputed that the mining industry plays a significant role in the economy of many African countries. However, the exploitation of Africa’s natural resources has not always resulted in optimal and sustainable benefits for key stakeholders, such as governments and host communities. According to Ntsiki Adonisi, head of department, Natural Resources and Environment, at law firm ENS, there are several reasons for this. “This includes a lack of certain, clear legislative frameworks; the lack of capacity in these governments to negotiate favourable terms in mining projects and to administer and enforce mining laws; and a lack of good governance, leading to corruption, among other challenges.

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Ntsiki Adonisi.

“The JET to a low carbon economy presents a new opportunity for the African continent to advance social and economic development, by not only producing key metals such as cobalt, platinum, and palladium – but also, crucially, by beneficiating such minerals.”

ATTRACTING INVESTMENT

It is imperative that mining laws are clear, certain and stable, says Adonisi. Although we have seen many African countries introduce reform to their mining laws in recent times, this has not necessarily translated into investor-friendly laws. “Some of the key focus areas that attract investment include ensuring that mining companies have security of tenure in respect of mining titles granted to them; fast turnaround times for the issuance of approvals required to develop and continue mining projects; access to all necessary assets and services required for operating

Zinzi Lawrence.

purposes; and competent government institutions that are transparent and accountable.” This, in turn, requires that technical assistance and capacity building be provided to government officials, she says. Furthermore, governments must seek to increase transparency and accountability in their mining sectors, to build trust between

It is crucial that the legislative environment focus on incentivising investments into – and the local beneficiation of – these critical minerals. – Adonisi

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SECTORS AT RISK

MUTUAL COOPERATION

Adonisi notes that it would substantially benefit African nations to work together. Such cooperation would create a more stable and predictable investment climate, which would attract more investment and lead to greater economic development. “Africa must come together to create capacity and invest in infrastructure that will make it possible to process these critical minerals, because without developing capabilities, the full value from critical minerals will not be realised. The exploitation of critical minerals requires significant investments, innovation and technological capabilities,” she adds. “Governments globally have entered into different arrangements when it comes to critical minerals. For example, the Minerals Security Partnership announced in 2022 is a collaboration of various countries intended to stimulate government and private sector investment. Partner governments include Australia, Canada, Finland, France, Germany, Japan, South Korea, Sweden, the UK and US.” Another example she highlights is the European Union (EU) Commission’s proposal for a regulation establishing a framework for ensuring a secure and sustainable supply of critical raw materials. “The above proposal recognises the significance of critical raw materials and the looming demand for such materials, in light of the global shift to a low-carbon economy. It also recognises that the EU is heavily reliant on imports for many critical

raw materials and that this exposes the EU to significant supply risks. “It is against this backdrop that the proposal seeks to, among others, secure the EU’s access to critical raw materials and diversify external supply of critical raw materials. Section 1 of Annex I of the proposal outlines strategic raw materials, including copper, platinum group metals and cobalt, among others.”

The Framework for a Just Transition in South Africa highlights four sectors and value chains that are at significant risk during the transition: ■ The coal value chain. ■ The auto value chain. ■ The agricultural sector. ■ The tourism sector.

THE COAL CONUNDRUM

On one hand, the importance of transitioning to a low-carbon economy cannot be overstated, given the threat of climate change, suggests Zinzi Lawrence, senior associate, Natural Resources and Environment at ENS. “However, it is widely accepted that fossil fuels such as coal remain the bedrock of many economies, and most developed nations have developed as quickly as they have done as a direct result of taking advantage of fossil fuels,” says Lawrence. “Given the elevated status of coal in many global economies, the transition to a low-carbon economy poses a major threat to economies and livelihoods, while also threatening to widen the inequality gap, particularly on the African continent.” She says commercial banks and other investors are facing increasing pressure to divest from assets that are carbon-intensive. This includes coal mining assets – such as coal-burning plants and smelters – and fossil fuel industries. In addition, investors are increasingly focusing on companies’ integration of environmental, social and governance (ESG) into their business models, and their clear commitment towards achieving net zero. “Despite the grim reality facing the coal industry, it is apparent that in the context of South Africa, coal will remain a critical part of South Africa’s energy mix in the years

investors and local communities, given the significance of the social licence to operate. Finally, she says, it is crucial that the legislative environment focus on incentivising investments into critical minerals, and in particular, the local beneficiation of these critical minerals.

to come. However, to mitigate the effects of the JET, coal miners must comply with legal requirements in their jurisdiction and take ESG considerations seriously. Investment in cleaner coal technology will also prove critical for coal miners. “According to the Framework for a Just Transition in South Africa, there are four sectors and value chains that are at risk in the transition: namely, the coal value chain, auto value chain, agriculture and tourism.” It is further suggested in this framework that “downstream users of coal – like Eskom and Sasol, and the electricity-intensive aluminium and ferro-alloys producers – can reduce risks to their operations and sustain their employment if they develop alternative non-fossil fuel sources of energy, and transition to new low-emissions production models”, says Lawrence. “Key players in the coal sector, including governments, coal miners, employees and host communities, must actively engage each other to mitigate against the expected job losses. The Just Transition Framework also provides that job losses in the coal value chain can be offset by further development of the domestic renewable energy manufacturing industry.” Ultimately, Africa will have a big role to play in terms of supplying the global demand for critical minerals. With the continent holding substantial reserves of the minerals the world needs for the Just Energy Transition, effective cooperation between nations will see the whole of Africa benefit. “It is therefore opportune for the continent to develop strategic policies on these critical minerals and to ready themselves for the predicted mineral boom. It is also equally important for African countries to ensure that their mineral regulation regime aligns both with international best practice and Africa’s aspiration to derive maximum benefit from the forthcoming energy transition,” she says.

CONTENTS

JANUARY / FEBRUARY 2024

Key minerals vital to the Just Energy Transition: Outlook 2024.

IN CASE YOU MISSED OUR INTERVIEW!

WATCH:

Business Spotlight – Enaex Africa’s plans to embrace artificial intelligence

Tackling ESG and energy use in the junior mining space.

IN BRIEF 6

Gary Alfonso speaks to CEO of Enaex Africa, Francisco Baudrand, about the company’s plans to embrace artificial intelligence, while also looking into incorporating sustainability within the organisation’s strategic objective. https://youtu.be/2U0RMa_6bko

SCAN HERE

Martin Engineering celebrates 20 years of growth in Africa.

FEATURES 22

Transport & Earthmoving Equipment Looking into the many dangers of contaminated diesel fuel, and highlighting the reasons why it is necessary for diesel users to test the quality of the fuel they are using.

Consulting & Project Management While junior miners often view paying for consultants as a luxury, when it comes to addressing climate change, the potential savings could easily pay for an external specialist.

Commodities With the Just Energy Transition (JET) under way, SA Mining considers the 2024 outlook for the key minerals required for the transition.

Blasting and the power of positive disruption. 55°C: Minimum flashpoint for diesel

50%: SA’s share of additional manganese output

SA MIN NG JANUARY / FEBRUARY 2024

COVER STORY: PAGE 8

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Blasting & Explosives How advances in explosives have positively disrupted the mining industry, and improved sustainability and safety. Construction in Mining Local renewables company JUWI discusses the state of its renewable energy projects aimed at powering mines in South Africa, as well as what is still to come.

NEWS IN NUMBERS 22 36

55°C: Minimum flashpoint for diesel 50%: SA’s share of additional manganese output

REGULARS 4

Out of Africa

Law firm NSDV considers the challenges local junior miners face in acquiring crucial funding – and why many are turning to foreign exchanges for this, instead of the JSE.

WIN!

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READ WHAT REALLY GOES DOWN IN SADC R39.90 (incl VAT) International R44.50 (excl tax)

INSIDE:

The dangers of contaminated diesel

EXPLOSIVE DISRUPTION Better blasting technology

JUST ENERGY TRANSITION Outlook 2024

CONSULTING Reducing ESG costs Lili Nupen, NSDV Inc’s Director and Co-founder

NSDV

BRINGING JUNIOR MINERS BACK HOME SAM-JanFeb-2024.indd 1

2024/01/23 09:01

Page 11

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FROM THE EDITOR

CATCHING THE JET TO A RENEWABLE FUTURE

SA has vast reserves of minerals vital to a green future. Leveraging these properly can have a significant and positive impact on jobs and the economy.

READ WHAT REALLY GOES DOWN IN SADC

EDITOR

Rodney Weidemann Tel: 062 447 7803 Email: rodneyw@samining.co.za

ONLINE EDITOR

ART DIRECTOR

to contaminated diesel. This, in turn, can lead to various engine problems, along with other dangers. It is for this reason diesel users need to test the quality of the fuel they are using. We look at some of the tests to determine diesel quality, as well as the instrumentation used and what the consequences of failing to meet the standard might be. Two things all junior miners have in common are energy use and the pressure to address climate change. Against this backdrop, it is understandable that when it comes to providing consulting and project management services around environmental, social and governance (ESG) policies for the junior mining industry, payment for service would be the main challenge. The Junior Mining Council explains how the potential savings from implementing ESG could easily pay for an external specialist. We also look at positive disruption in the mining sector, which has led to the development of new techniques and technologies in the blasting and explosives arena, which are both safer and more focused on environemental concerns. Finally, in our cover story, law firm NSDV points out that far too many local junior miners are turning to foreign exchanges to acquire crucial funding, suggesting that it is imperative that the JSE finds ways to attract more junior mining listings. This could be achieved by making it more financially attractive for junior miners to list on the JSE, and by encouraging local investors to invest in junior miners, although it is equally imperative that government addresses the other challenges these miners face: namely the onerous regulation of mining, and SA’s inadequate bulk rail and port infrastructure.

he demand for a Just Energy Transition (JET) grows by the day, and means that critical commodities like manganese and the platinum group metals (PGMs) – which are key materials in a range of renewable technologies – are required on a global scale, and are thus in high demand. For South Africa, which possesses over 80% of the world’s manganese reserves, this is an opportunity to build new mines and create jobs, while also boosting the local economy. The country also has a wealth of PGM reserves, positioning it as a key player in the global renewables market. In this issue, we look at the outlook for these JET commodities and their potential impact on areas such as renewable energy and the production of green hydrogen. On the subject of energy, this is something mines are large consumers of, which is why concerns around costs and carbon footprint reduction have been top of mind, although today, mines are equally worried about the impact of loadshedding, and how they can keep their operations running. These entities are clearly exploring the energy security possibilities inherent in renewables, and we take a look at efforts being made to develop, build, and operate mainly standalone solar and hybrid solutions, to power individual mines. Renewables provider JUWI outlines how this approach ensures the security of mining operations, prevents outages, and protects the lives of workers. When it comes to mining equipment, the dangers of contaminated diesel are well documented. Everything from poor transport methods and poor handling to sloppy storage and corruption can lead

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Rodney Weidemann

SA MIN NG

JANUARY / FEBRUARY 2024

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Shailendra Bhagwandin Tel: 011 280 5946 Email: bhagwandinsh@arena.africa

ADVERTISING CONSULTANTS

Ilonka Moolman Tel: 011 280 3120 Email: moolmani@samining.co.za Tshepo Monyamane Tel: 011 280 3110 Email: tshepom@samining.co.za

PRODUCTION COORDINATOR

Neesha Klaaste Tel: 011 280 5063 Email: neeshak@sahomeowner.co.za

SUB-EDITOR Andrea Bryce

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OUT OF AFRICA

INTERNATIONAL SOS

STRENGTHENS REGIONAL AND INTERNATIONAL OPERATIONS IN MAURITIUS

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Philippe Couturier, regional general manager of International SOS for Africa, says: “Our presence in Africa has contributed to safeguarding companies’ reputations in the event of risks, ensuring organisational productivity, and enhancing the wellbeing of their personnel. We also collaborate with organisations and governments to implement public health programmes on the continent.”

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JANUARY / FEBRUARY 2024

Our presence in Africa helps safeguard companies’ reputations in the event of risks, ensuring organisational productivity, and enhancing the wellbeing of their personnel. – Couturier

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nternational SOS, a pioneer and world leader in health and safety risk management services, has officially inaugurated its offices in Mauritius. International SOS strategically chose the island nation as its regional headquarters for Africa, and for hosting its dedicated Assistance Centre, which provides occupational health services to its clients. This investment highlights International SOS’s commitment to strengthening its presence in Africa and to leveraging Mauritius as a platform to support this strategy. In Africa, the organisation already operates across various countries and serves a wide range of clients, including those operating in the energy, mining, and construction sectors, and governmental organisations. To support such operations, the company requires multilingual and multicultural expertise, a business-friendly legal framework, and a stable environment. “Mauritius offers an excellent ecosystem, with bilingual talent pools, an ease of doing business, and global connectivity – which makes it the perfect location for us to support our operations across Africa,” says Laurent Sabourin, International SOS group managing director. With over 30 years of experience in Africa, International SOS has a particularly robust network of assistance resources and partners, coupled with in-depth expertise to support its clients in critical health and safety situations.

International SOS, a company that helps mines assess the risks associated with their working environment, has opened a regional hub for Africa in Mauritius.

THE MAURITIAN JOURNEY

Following the granting of its operational licence in Mauritius in 2019, the company embarked on its journey with an initial team

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of four employees in 2021, establishing its regional headquarters in the Moka Smart City. In 2022, it created an Assistance Centre to manage its WorkSafe occupational health solution. The company now employs over 120 professionals in Mauritius, with 81% being Mauritians. The teams comprise of medical professionals, including doctors and nurses, as well as specialists in finance, human resources, legal, and sales and marketing. “Mauritius provides an excellent ecosystem with a favourable business environment and qualified human resources, allowing us to fulfil our mission. From Mauritius, we support our operations across Africa and provide services to clients worldwide. “Beyond our professional commitment, we are also involved in the wellbeing of the community through various corporate social responsibility (CSR) projects,” says Couturier. “As part of its CSR programme in Mauritius, International SOS allocated funds to the T1 Diams association to support their fight against type 1 diabetes. We are delighted to continue our mission of assistance, prevention, and partnership in Africa from our new office in Mauritius. “Together, we anticipate a prosperous and secure future for our clients, their employees, and the communities where we operate.”

IN BRIEF

MARTIN ENGINEERING

CELEBRATES 20 YEARS OF GROWTH IN AFRICA In the past two decades, Martin Engineering has made substantial investments in production facilities and new technologies, to help its African business to grow and evolve.

artin Engineering, one of the world leaders in bulk material handling solutions, has celebrated its 20th anniversary of growth across the African continent. The company, which works with mining and mineral processing companies to improve safety, efficiency and productivity, first entered Africa in November 2003 with the acquisition of South African business Scorpio Conveyor Products. Two decades later Martin Engineering has grown significantly, with employee numbers increasing tenfold to almost 200 people, and a customer base that now spans 10 countries and a range of industries across Africa. The business also has plans for further growth thanks to an ambitious team of technical experts and an innovative range of products that deliver cleaner, safer and more productive materials handling. “The African continent is a global supplier of essential minerals and metals, and an important market for Martin Engineering, so I am delighted to be spending time with colleagues to celebrate 20 years supporting producers here in South Africa and across the continent,” says global CEO Robert Nogaj. “Over the past two decades, we have made substantial investments in our production facilities and introduced new technologies that have helped our African business to grow and evolve. Yet the most important investment we have made is in supporting and developing our people, fostering talent and promoting diversity in the workplace.” He says this is evidenced by the recent appointment of Fran van der Berg as general

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JANUARY / FEBRUARY 2024

The Martin Engineering team.

manager for Africa, explaining that her achievement is remarkable because she began as a temporary member of staff some 12 years ago. “It’s great to see such personal development, and we hope her achievement will inspire many others to aspire to leadership roles.” Martin is among the engineering firms in South Africa to have achieved ISO45001 (health and safety management) accreditation, reflecting the company’s commitment to maintaining high safety standards and fostering a true safety culture. One highlight of Martin Africa’s annual calendar is the “Safety Olympics”, where teams of employees across the business take part in safety-related games and compete for prizes. Given that the company’s global “purpose” statement is “to ignite excellence so that families thrive and communities flourish”, it’s no surprise that over the past two decades, Martin has supported numerous local charities and nonprofit organisations close to its regional headquarters with financial donations and volunteer activities.

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The team is especially proud to have achieved B-BBEE Level 2 in South Africa, demonstrating the significant steps taken to promote black economic empowerment, through training programmes and an approach to community development that prioritises the employment and support of local people in each operating location. “As a company, we’re renowned for having unrivalled know-how and expertise when it comes to solving the common problems faced by bulk materials handlers in many foundation industries – from mining and quarrying to fertilisers and freight,” says Robert Whetstone, Martin’s area vice president for Europe, Middle East, Africa & India. “In Africa we have a team of engineering professionals that has been able to export their specialist knowledge – along with new ways of working and their characteristic cando approach – to benefit customers in other parts of the region and around the world. “This is another demonstration that there is great strength in the diversity and empowerment of our people, and that ultimately, we are better together.”

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FINANCE & LEGAL COVER STORY

BRINGING SOUTH AFRICA’S JUNIOR MINERS BACK HOME Far too many local junior miners are turning to foreign exchanges to acquire crucial funding. It is thus imperative that the JSE finds ways to attract more junior mining listings, says law firm NSDV.

By Dominic Varrie, Methembeni Moyo and Lili Nupen

lthough junior miners are forced to go where the rocks are, capital follows the path of least resistance. South Africa, of course, is blessed with a vast and diverse geology as well as a sophisticated and welldeveloped mining industry. However, the fear is that SA’s mining industry is slowly stagnating, hampered mainly by three vital constraints: the lack of access to capital; delays in obtaining licences and permits; and an inadequate port and rail infrastructure required for the export of bulk commodities. In this feature (the first of three focused on this subject), we address these concerns and suggest solutions or strategies to make South Africa an attractive mining destination again. In this instalment we discuss the need for the Johannesburg Stock Exchange (JSE) to become more attractive for both junior miners and investors.

RAISING CAPITAL AND THE JSE

The JSE, formed in 1887 on the back of the country’s first gold rush, is by far the largest stock exchange in Africa. Notwithstanding this fact, the JSE has historically struggled to attract and retain listings from junior mining companies. This may, in part, be attributable to the historical dominance of the major mining companies in South Africa, or perhaps the stringent requirements imposed

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on companies who wish to list on the JSE. SA investors have long been hesitant to invest in junior mining companies, due to the high-risk nature of exploration activities. As a result, the trend has become one where South African junior mining companies are turning to foreign exchanges to acquire crucial funding to develop mining projects in South Africa. Luring South Africa’s junior miners to listing on the JSE is no easy task. Mining is inherently a risky business, and the return on investment on an early-stage mining asset can take between 10 and 20 years to be realised. Accordingly, if the JSE is to attract junior mining listings in the future, it should be aggressive both in incentivising such listings and with regard to investing in junior miners. In making our suggestions on how the JSE could attract more junior mining listings, we consider the lead of successful foreign exchanges that have employed innovative measures to attract funding hungry junior miners, such as the Toronto Stock Exchange (TSX) and the Victoria Falls Stock Exchange (VFEX).

THE SLOW, STEADY EXIT FROM THE JSE

The unfortunate reality is that of the few junior miners operating in this country, most of them are not listed on the JSE. From our research, of the 39 mining companies listed

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on the JSE, only 12 are considered to be junior miners; this is dwarfed by the 47 new listings of junior miners just last year on the TSX Venture Exchange – recognised as the primary Canadian market for junior issuers. There are currently over 2 000 listings of mining companies on the two Canadian Stock Exchanges, while the Sydney stock market boasts about 600 listed juniors. It has been projected that at least 13% of all JSE mining companies will de-list this year. In fact, at the time of writing, AngloGold Ashanti, a former stalwart of the JSE, had recently announced the moving of its primary listing from the JSE to the New York Stock Exchange. The ongoing trend of miners de-listing from the JSE and the lack of interest in replacing the departures paints a sombre picture for the local stock exchange. The once great South African mining equities market is in a desperate situation, and urgent redress is needed. SA’s capital markets urgently need to find a way to bring its junior miners back home. Below are some lessons we can learn from successful foreign stock exchanges.

WHAT THE JSE CAN LEARN FROM CANADA

Canada has seen impressive mobilisation of investment funds through the incredibly successful flow-through share scheme that has helped to build one of the most

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FINANCE & LEGAL COVER STORY

The trend has become one where South African junior mining companies are turning to foreign exchanges to acquire crucial funding to develop mining projects in South Africa.

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THE EXAMPLE OF THE VFEX

The JSE doesn’t necessarily have to look to the other side of the world for inspiration on how to attract funding for local junior mining companies. Zimbabwe’s VFEX, while operating on a far smaller scale than the TSX, has seen proportionately tremendous success for listed junior mining companies, thanks to incentives that mitigate Zimbabwe’s foreign currency risk. The VFEX incentivises listing, with the prospect of raising capital in foreign currency and receiving certain tax breaks. These incentives include the following: ■ All the cash inflows raised on the VFEX are considered “free funds”, and can be kept in investment foreign currency accounts. ■ There is allowance to use offshore settlement for trades conducted on the VFEX.

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JANUARY / FEBRUARY 2024

■

The VFEX also offers tax incentives for shareholders and exemption from capital gains withholding tax for the exchanges’ investors. The JSE and the Treasury could consider offering investors investing in junior miners similar exchange control and tax incentives.

LOOKING TO THE FUTURE

The JSE recently embarked on a project to review and simplify its listing requirements, as part of its ongoing efforts to attract local and international listings. Although the simplification of the JSE listing requirements is a welcome development, we suggest that more financial incentives are required to attract junior miners to the JSE and for the JSE to be competitive against markets that have exposure to much more capital. Unfortunately, the JSE’s fall from grace has had far-reaching consequences, as the country’s junior miners have migrated to foreign exchanges, and foreign investors become the ultimate beneficiaries of local successes. Making it more financially attractive for junior miners to list on the JSE and for investors to invest in junior miners is one way of bringing our junior miners back home. The other two critical issues that need to be addressed in this regard are the onerous regulation of mining in South Africa, as well as the issue of inadequate bulk rail and port infrastructure. In part two of the series, we will discuss the regulatory constraints that are currently hampering the growth of the South African junior sector, and suggest targeted deregulation for junior miners and

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KEY FACTORS CONSTRAINING SA’S MINING INDUSTRY

■ ■ ■

The lack of access to capital. Delays in obtaining licences and permits. An inadequate port and rail infrastructure required for the export of bulk commodities.

prosperous mining industries in the world. This system has been highly effective in encouraging the development of, and subsequent investment in, specialist junior exploration companies. The flow-through share scheme essentially allows mining companies to issue ‘flow-through shares’ at a higher price than normal shares, thereby assisting them in raising money for exploration and development. Investors are motivated to purchase these flow-through shares because they permit the initial purchaser to claim a tax deduction equal to the amount invested. The JSE, together with the Treasury, could employ similar tax incentives for investors who invest in junior miners and specialist exploration companies in South Africa.

exploration companies as a means to reignite growth in the junior mining sector. In part three, we will discuss the growing problem of inadequate port and rail infrastructure, a problem that must be solved in order to be able to profitably export South Africa’s minerals offshore. We will also suggest possible strategies to address this critical bottleneck in the development of the mining industry. Ultimately, at NSDV we are optimistic of the opportunities that South Africa’s mining sector presents, and we remain hopeful that various ongoing high-level discussions between business leaders and government around the challenges facing our nation’s mining industry will yield fruitful results.

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PREVENTION IS BETTER THAN CURE SA must balance the money and attention it’s giving to building new infrastructure with the need to look after what it already has.

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The views expressed are the author’s own and do not necessarily reflect SA Mining’s editorial policy.

ur national infrastructure, the value the procurement of renewable energy and of which runs into trillions of rands, is resource efficiency in Africa, known as the an asset owned by all South African Integrated, Renewable and Resource Efficiency citizens, and either supports or holds Programme. back the economy. South Africa does However, Zikalala noted: “As a country, we not have the money to let it break and then fix cannot always be building. We will introduce it again, so it is critical that we understand that innovative approaches to ensure that prevention is better than cure. infrastructure maintenance by all spheres of The South African Institution of Civil Engineering government is proactively planned and that 2022 Infrastructure Report Card for South Africa budget ringfenced for infrastructure is spent for gave the country a D grade, the lowest on record, what it is earmarked for.” indicating that most of the country’s infrastructure Research has shown that proactive and is at “risk of failure” or “unfit for purpose”. preventive maintenance provides a positive Economic and social infrastructure such as water, economic return on investment and is laboursanitation, roads, health, and education continues By Dr Chris von Holdt intensive, which represents low-hanging to deteriorate in our provinces, cities, and towns. fruit for our country that is suffering from Director Asset We have seen maintenance delivery fail infrastructure reliability and performance Management at Zutari nationwide. It is clear we need to approach the problems as well as high unemployment. management of our infrastructure differently to what we have done in Zutari adds value to many of the largest asset owners on the past. South Africa needs to balance the money and attention we the continent with our asset management capability and is are giving to building new infrastructure with the need to look after very proud of that. Our experience has shown that managing what we already have. existing infrastructure requires a systematic and sustained I believe we would benefit from a national approach, and that the effort underpinned by technical capacity and tight management private sector could manage the complexity and apply the effective controls, which is why I believe a national-scale programme that controls needed for correct execution. leverages private sector capability is urgently needed. The current maintenance challenge is an opportunity for us to It is evident that government in general and local government create jobs. We can advance the skills of our people on the ground in particular has struggled with the implementation of effective through structured training and build local businesses with effective maintenance programmes and the likelihood that this situation supplier development programmes. This is being done in small will improve in the near term is highly unlikely. pockets of success, but needs to be done at a national scale. The private sector requires basic infrastructure to be in place We are spending money on infrastructure, but we need to make and to be properly maintained for it to operate and grow our sure that what we must spend is spent wisely. Minister of Public economy. Mining, for instance, has recently claimed substantial Works and Infrastructure Sihle Zikalala announced in May that the revenue losses due to the current dysfunctional logistics network. department had an R8.782-billion budget for the 2023/24 financial The current situation can be turned around with the year. It is the department’s mandate to oversee the implementation of application of expertise and technical capacity that exists in infrastructure projects to stimulate economic growth. the private sector, but we need a strategic approach led by Infrastructure South Africa has completed R21.4bn worth of government and we need to start taking action. projects to date, mainly in the roads, energy, and human settlement As part of our contribution to develop a skills pipeline for the sectors. There are R313.5bn worth of projects currently under industry, Zutari has a robust graduate programme that brings construction and R295.2bn worth of projects in procurement. in 120 to 150 graduate engineers a year. We are committed to In addition, R300bn worth of green hydrogen projects are in nurturing young talent, assisting them to obtain their professional the pipeline, with the first feasibility reports anticipated by the certification and encouraging them to have a positive impact in end of 2023. South Africa is rolling out the largest programme for shaping the future as engineers.

WE CAN HANDLE THE PRESSURE. GUARANTEED.

FINANCE & LEGAL

EMPOWERING MINE WORKERS FINANCIALLY Gone are the days of grocery vouchers as an incentive for mineworkers – in the 21st century, a more versatile approach TO financial motivation is required. By Steve Mallaby, CEO at adumo Payouts

he mining industry in South Africa has played a pivotal role in the nation’s economy for decades. Export data from the South African Revenue Service indicates that for the first half of 2023, the value of mined material exports was R575-billion. According to Statista, the industry is home to a substantial workforce, with 475 561 mineworkers employed in 2022. The platinum group metals sector is the largest employer of all mineral commodities with 172 159 employees. These statistics indicate the continued importance of mining to South Africa’s economy, contributing an impressive R493.8bn to GDP in 2022. The implication, however, is that many suppliers to the mining industry, whose fortunes are intrinsically linked to the performance of the mining sector, only do as well as mining itself. To this end, adumo’s journey into the mining industry evolved organically over time, with a notable milestone being its partnership with one of the industry’s major players in 2012. At that time, they were handing out grocery vouchers as an incentive to their workers, and adumo instead proposed a more versatile approach. This involved introducing prepaid adumo debit cards,

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enabling mineworkers to use these cards for a wide range of needs. This marked the inception of a transformative approach that has continued to evolve since then.

FROM VOUCHER TO CARD

Our approach was to use the card to replace handing out multiple grocery vouchers as a production or safety incentive, as our solution now enables mines to replace paper vouchers with a dynamic card that can be continually topped up as needed. These cards also serve various purposes, including: ■ Incentivising mineworkers for early/late shifts and working overtime or on public holidays. ■ Introducing an incentive aimed at health and wellness, such as getting vaccinated during the COVID-19 pandemic, or if mineworkers voluntarily elect to be tested for HIV. ■ Linking incentives to achieve or maintain certain key production targets. Moreover, this solution is simple and scalable, catering to the diverse needs of operations in the mining industry, which often employs thousands of workers. Whether a business or corporate client has five or 5 000 staff, scalability goes hand in hand with flexibility.

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For example, if a mine hits a specific target at say 3pm on a Friday, by the time the mineworkers return home at 6pm, the money is already there, having been loaded onto their adumo debit cards in real time. Mining clients are also provided with two options: they can supply adumo with the load instruction and details, or they can manage the process themselves via their dedicated self-service portal. In adopting this unique approach, the corporate mine is adumo’s client but, by extension, the mineworker too becomes a client. Thus, if they have any query about their card, such as the balance, they can easily access an online portal, use a USSD code, or contact a multilingual adumo team that offers support in all 11 national languages. This inclusivity builds trust and ensures effective communication, whether the mineworkers are from the Northern Cape or North West. It is also important to note that while the onboarding process is exceptionally quick, the sales process in the mining industry can be lengthy, as it is necessary to secure buy-in from various internal and external stakeholders. This includes finance and human capital internally, and trade unions on the external side. It is also worth noting

“ This solution is simple and scalable, catering to the diverse needs of operations in the mining industry, which often employs thousands of workers.

“

INCENTIVISING WORKERS that although adumo does not interact directly with the trade unions, these entities have been very supportive of the adumo solution, as it places the mineworkers at the core of the process. Interestingly, most of the interactions and decisions occur at the mine level rather than at the mining house level. We have also engaged some of the junior miners to gain a better understanding of their needs in terms of employment, production, and safety.

DRIVING A BEHAVIOURAL SHIFT

At the heart of the adumo solution, and the most tangible benefit for a mine, is the focus on safety and production targets, which are top of mind for the mining industry. Production is uninterrupted if there are zero incidents, plus there is no attendant negative publicity and impact on the community, especially in the event of fatalities. By adding a human dimension to these targets, through our incentivisation solution, we can influence positive behaviour. The crux of the matter is that many miners fall on the lower end of the LSM scale, facing substantial debt, and have garnishee orders on their salaries. This obviously presents a significant challenge when trying to incentivise workers, because

although mining companies make efforts to disburse incentives, the prevalence of these garnishee orders clearly hinders the desired behavioural shift. To solve this challenge, adumo partners with a mine to disburse the funds directly onto each individual mineworker’s adumo card. The incentive payment is still processed through payroll, in order to ensure compliance with tax authorities such as SARS. However, mineworkers now have their individual adumo debit cards, ensuring the funds are exclusively theirs, an approach that ultimately increases their spending power. Such an approach is also finely tuned to drive behaviour and engagement. For example, when a mine hits multiple targets relating to different safety initiatives, adumo is able to carry out separate payouts for each target achieved. We also send an SMS communication to all workers, congratulating them on each of these milestones as part of our reinforcement strategy. From the perspective of both adumo and our mining clients, recognising and rewarding good behaviour, such as being conscious of safety measures or reaching a safety milestone, provides a tangible benefit. Suddenly it makes sense to mineworkers,

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“Recognising and rewarding good behaviour, such as being conscious of safety measures or reaching a safety milestone, provides a tangible benefit.”

Steve Mallaby.

as it impacts them directly. They become more safety-conscious and are motivated to reach production targets, even willingly working on public holidays. This benefits the mine by fostering the correct behaviour, increasing production, and ultimately boosting shareholder value, while it also offers significant – and useful – financial incentives to the workforce.

SA MINING

JANUARY / FEBRUARY 2024

LEGAL

CORPORATE PROFILE

AFRICA’S LEGAL FRAMEWORKS

FOR MINING GREEN MINERALS

he worldwide movement towards clean and sustainable energy has caused a surge in the demand for battery minerals, requiring those countries with exploitable reserves to re-evaluate their legal systems governing the mining of these minerals. LEX Africa, a legal alliance of leading African law firms, asked members around the continent to describe the key legal challenges to be overcome, and positive steps to be introduced, to help mines capitalise on the Just Energy Transition (JET). LEX Africa chairperson Pieter Steyn says: “LEX Africa has focused on mining law since it was formed in 1993 because mining is a key sector in the African economy. It is also heavily regulated so sound legal advice is essential.” In this article, we consider the legal frameworks in six key African nations producing some of the world’s most indemand green minerals.

ANGOLA

João Bravo da Costa, a partner at FBL Advogados, notes that Angola has huge potential in terms of battery minerals, but that this creates a challenge in terms of Angolan mining legislation and procedures. “Nonetheless, the government has announced its openness towards investments in this specific sub-sector, in

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order to execute the transition of the country from its dependence on oil and gas – and to export and transform its power resources into ‘clean’ energy,” he says. “To ensure that the Just Energy Transition is executed by means of an environmentally friendly approach, government needs to review the tax regime applicable to these explorations. In this way, it can create tax incentives that will help to assure that exploration can be executed into environmentally friendly, yet competitive, standards.”

MOROCCO

Ghiyta Iraqi, a partner at I&I Law Firm, says Morocco attracts global investment due to its valuable mining resources, including lithium, manganese and cobalt. Despite this, the current regulatory framework, authorisation process, transparency, governance and institutional capacity of mining organisations may not be conducive to attracting significant investment flows. “We need to enable greater clarity and certainty of rights and obligations, fair and competitive licensing, and tax and permit regimes. We also feel transparent and open access to industry data – through digitalisation – as well as compliance with well-established and known standards of resource information, will encourage more and better investment in the sector,” she says.

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The drive towards sustainability has made ‘green’ minerals hot property. LEX Africa looks at the regulatory regimes governing this in seven key African nations. “In July 2021, changes were made to the law aimed mainly at simplifying mining authorisation procedures and improving the attractiveness of the mining sector for national and international private investors. This bill is the backbone of the kingdom’s new mining strategy.”

MOZAMBIQUE

Zara Jamal, partner at JLA Advogados, indicates that Mozambique hosts half the world’s known graphite resources. Several international mining companies are now taking advantage of Mozambique’s rich deposits located in the northern part of the country, although these projects have been impacted by the insurgency problems that have arisen in this region. “In addition, the lack of funding greatly anchored in international investors and banks is also stalling the progress of this industry. Finally, the scarce or almost non-existent legislative policy that rewards projects that excel in the extraction of battery minerals – namely by granting greater tax incentives – is also an important challenge for mining companies in this field,” she says. “The Mozambican government is determined to improve and enhance the business environment and attract foreign investment. As such, important legislative amendments have been approved in recent months, from which we would highlight the

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LEGAL

CORPORATE PROFILE

new foreign exchange law, which establishes a more relaxed foreign exchange regime for the extractive industry.”

REPUBLIC OF GUINEA

Amadou Barry, a lawyer at Thiam & Associés, explains that the fast-growing investment in battery minerals has revealed the need to revamp mining legislation in order to cope with the reality of the new mining industry landscape. “The environmental challenges that come with the development of battery minerals stress the need to adapt the environmental legislation. For example, lithium poses environmental challenges both in the extraction phase and in the recycling phase, and could lead to water supply contamination,” he says. “To streamline mining operations in general, Guinea has already implemented measures to simplify the application process for permits and licences. A onestop shop – at the Ministry of Mines and Geology – was established, aiming to cut through bureaucracy and enhance efficiency. In addition, government has introduced measures to attract investors and foster the mining sector’s development.”

ZAMBIA

Charles Mkokweza, senior partner at Corpus Legal Practitioners, points out that the mining of minerals for rechargeable batteries, such as lithium, cobalt, manganese, nickel, graphite and copper, is currently regulated and promoted in the same manner as other non-battery minerals under Zambian law. “As such, these miners face the same challenges affecting the mining industry as

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a whole, including a licensing regime that needs improvement, and an unstable tax regime,” he says. “The 2022 National Mineral Resources Development Policy has proposed reforms – to be implemented in 2024 – aimed at improving efficiency, effectiveness, transparency, accountability, and integrity in licence management and issuance. “These reforms include the use of information and communication technologies, the development of integrated management information systems and enhancing transparency and accountability in the mining cadastral system.”

ZIMBABWE

Fidelis Manyuchi, a partner at Scanlan & Holderness, notes that Zimbabwe has huge deposits of lithium and other battery minerals, with mining companies eager to participate in the value chain. “A key challenge for us is the change in regulation. For example, until around November 2022, companies could mine and export raw lithium from the country. In December 2022, a ban on the exportation of raw lithium, without approval, was imposed,” he says. “Nonetheless, the legislative regime has undertaken major regulatory reforms that are aimed at enhancing the ease of conducting mining operations, such as the creation of the Zimbabwe Investment and Development Agency.” This is a “one-stop investment centre”, he says, housing representatives of most of the departments that play a role in issuing permits, licences and approvals that are required to get a battery mine operational.

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We need to enable greater clarity and certainty of rights and obligations, fair and competitive licensing, and tax and permit regimes. – Iraqi, I&I Law Firm, Morocco

“

SOUTH AFRICA

Chris Stevens, head of the Mining Law Department at Werksmans Inc in South Africa, notes that South Africa also has vast deposits of lithium, copper, manganese and other battery minerals. The much-publicised infrastructure constraints as a result of the issues with Eskom and Transnet and the insufficiency of the rail transport and port networks cause the industry not to thrive to the extent it should. The licensing system in South Africa has also come in for some criticism because of the length of time to obtain, for example, prospecting rights and mining rights for all minerals including battery minerals. There are no special provisions applicable to battery minerals, nor at this stage any tax incentives in regard to the exploitation of battery minerals. “Nevertheless, there are moves afoot to address the infrastructure problems in South Africa and the Department of Mineral Resources and Energy is implementing in the short term a new cadastral system, all of which should help to streamline the process and boost the industry.”

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MINING EQUIPMENT CORPORATE PROFILE

IMPROVING LONGEVITY IN INDUSTRIAL EQUIPMENT WITH POLYURETHANE COATINGS Industries demand better protection and repair solutions in order to extend the service life of their equipment. Polyurethane coatings are the answer.

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JANUARY / FEBRUARY 2024

“

s an authorised distributor/agent for the Normac product line, RDT Engineering’s partnership alliance for Africa provides access to coatings, primers, repair and adhesive cements for the mining sector. Normac introduced its first polyurethane protective coating in 1970, and today, industries throughout the world have come to rely on these protective coatings and repair technologies as a way to maximise the life and production of their industrial equipment. Continuous innovation in product formulation and application is key for both RDT Engineering and industries that demand better protection and repair solutions, in order to extend the service life of their equipment. Businesses in virtually every industry sector have turned to Normac for their material handling protection and repair, and for a multitude of reasons. Many can’t afford any productivity lag in their operations, let alone an unexpected shutdown. Others have specialised needs that require customised solutions. Still more need to save time and money, without sacrificing quality. According to Charmaine van Rensburg, director and owner at RDT Engineering, the company’s objective is to show how and why its materials and processes can supplement or replace traditional coating and repair methods. “At the same time, we want to convey precise information on product use and performance. For example, our fireresistant anti-static (FRAS) product range is

We bring their cutting-edge adhesives and protective coatings to distributors across the globe. – Van Rensburg formulated to ensure safety underground and above ground – reducing the risk of danger to your people and equipment,” she says. RDT Engineering is changing the way people see women in mining, as she has a vision to transform the longevity of mining equipment, both new and in situ. She and her team help consulting companies around the continent to improve their current equipment lifespan.

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“RDT Engineering is the mining industry’s source for leading-edge industrial adhesives, thanks to the power of Normac, industry leaders in urethane and polyurethane adhesives. We bring their cutting-edge adhesives and protective coatings to distributors across the globe, and with a strong presence in the Far East, Europe, and North and South America, our partnership with Normac positions us as the top choice for Africa’s adhesive needs,” she says.

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TRANSPORT & EARTHMOVING

DIESEL QUALITY AND ITS IMPORTANCE The dangers of contaminated diesel are well documented, which is why it is necessary for diesel users to test the quality of the fuel they are using. © ISTOCK – tifonimages

By John Evans B.Sc. MLA II, diagnostic manager at WearCheck STEPS TO REDUCE THE DAMAGE CAUSED BY BURNING HIGHSULPHUR FUEL:

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FLASHPOINT

The flashpoint temperature of diesel is the minimum temperature at which the fuel will ignite on the application of an

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ignition source, such as a naked flame. While flashpoint varies inversely with the fuel’s volatility, the SANS requirement is for a minimum flashpoint of 55°C. It should be noted that the flashpoint of the fuel does not directly affect the combustion characteristics of the engine, but it is important in terms of safe storage and handling – the lower the flashpoint, the more flammable the fuel. A low flashpoint can help identify petrol adulteration, because for every half a percent addition of petrol, there should be an approximate 8°C drop in the flashpoint. Other contaminants such as paraffin, other fuels and solvents will also lower the flashpoint. On the other hand, contamination with heavier fuels and lubricants will raise the flashpoint.

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VISCOSITY AND DENSITY

Viscosity is a measure of a fluid’s resistance to flow. It therefore affects injector lubrication and fuel atomisation. Fuels with low viscosity may not provide sufficient lubrication for the precision fit of fuel injection pumps or injector plungers, resulting in increased wear or leakage. High viscosity fuels, on the other hand, will increase gear train, cam and follower wear on the fuel pump assembly, due to the higher injection pressures. Diesel fuels with high viscosity also tend to form larger droplets on injection, causing poor combustion and increased smoke and emissions. Fuels that do not meet viscosity requirements ultimately lead to loss of performance. Viscosity is measured by the length of

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he quality of the diesel in South Africa is often a topic of hot debate. One thing we know is that it is extremely unlikely that a single drop of diesel leaving South Africa’s refineries does not conform to the South African National Standard (SANS) for the quality of diesel. However, it is from this point that the problems begin, with poor transport methods, poor handling, sloppy storage and corruption. This often leads to contaminated diesel, which can lead to various engine problems. When determining diesel quality, it is important to use a laboratory that employs the correct test methods as dictated by the SANS 342:2016. This is the standard that governs the quality of diesel in South Africa. It is also important to use a laboratory that is accredited by the SA National Accreditation System (SANAS) 17025 and SABS ISO 9001. This ensures that the tests are carried out correctly, quality standards are met, and the results are reliable. In this article, we look at some of the tests to determine diesel quality that are carried out in WearCheck’s Specialty Laboratory, as well as the instrumentation used and what the consequences of failing to meet the standard might be, along with the actual limits that are applied.

Know the sulphur content of your fuel. It is recommended that every bulk delivery is checked, especially if fuel quality is questionable. Keep the normal operating temperature of the cooling system above 80°C; this will limit condensation of sulphuric acids on cylinder liner walls. Select oils with a sufficient starting TBN (total base number). Follow standard oil-change regimes unless oil sampling indicates differently. Maintain the crankcase breather system to prevent condensation in the crankcase oil, which will cause rapid TBN depletion.

time it takes for the diesel to flow through a calibrated tube, under the force of gravity at 40°C. This is a measure of the specific gravity of the fuel – in other words, how much does a litre of fuel weigh? Both volume and mass are measured to determine density. Density essentially determines the energy

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TRANSPORT & EARTHMOVING

ILLUMINATING PARAFFIN

SULPHUR CONTAMINATION

Sulphur is a naturally occurring constituent of crude oil, but its presence in diesel is an area of concern. The sulphur content of diesel can either be reduced by using low sulphur crudes, or during the refining process, but this is more costly. There are a range of valid reasons for the removal of sulphur from diesel supplies. The first and most pressing reason is that highsulphur diesels are known to influence the emission of fine particulate matter, through the formation of sulphates. These particulates are considered a health hazard, and their reduction is desirable. However, the presence of sulphur must not be confused with dirty diesel – sulphur remains a vital component of diesel, in that it imparts a natural lubricity, protecting fuel pumps and injectors. When this is removed during refining, it has to be replaced with additives to perform the same function.

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JANUARY / FEBRUARY 2024

“

flashpoint will decrease, and the sulphur concentration will increase. Low density means you require more fuel to travel the same distance, while low flashpoint could become a safety issue. Elevated sulphur could impact the emission controls of modern engines and increase combustion by-products being introduced into the lubricating oil. This will reduce its ability to lubricate the engine adequately, resulting in shortened drain intervals. Although the price difference may not be huge, if one thinks of the thousands of litres of diesel used every day, doping diesel with 10% or 20% paraffin represents a large cost saving to the perpetrator, and a loss of revenue for the South African Revenue Service (SARS). Because this type of doping represents a loss of income for SARS, the organisation has introduced a chemical marker into IP sold in South Africa. The marker comes from a US company that specialises in brand protection and anti-counterfeiting. This marker is added to IP at a precise concentration once the product leaves the refinery. It is possible to test for this marker using a lateral-flow test kit, similar to those used for testing for COVID or pregnancy. The answer is a simple yes or no, as to whether the marker was or was not detected. The test kit is very easy to use and takes hardly any time at all. At the end of the day, as with lubricating oil, the goal of keeping diesel cool, dry and clean is a policy that reaps great benefits, and one that ultimately rewards the user with lower operating costs.

High-sulphur fuel also produces sulphur oxides on combustion which – when dissolved in other by-products of combustion such as water – form strong acids.

“

content of the fuel. The denser the fuel, the more power the engine can generate, and vice versa. Diesel is specified at a minimum of 0.8 kg/l at 20°C. This helps to identify adulterants such as illuminating paraffin, which has a density of 0.790kg/l, or oil, which has an approximate density of 0.885 kg/l. Low-density fuel leads to a loss of power per litre of fuel, along with an increase in fuel consumption. Density and viscosity are actually measured on the same instrument.

No article on diesel testing would be complete without some discussion on the problem of diesel being contaminated with illuminating paraffin. Diesel can be subjected to a variety of chemical and physical tests in the fuels laboratory. One of the most frequent and important things to look for is contaminants, the most common of which are dirt and water. Diesel can also be contaminated with other fuels and solvents, in particular illuminating paraffin, or IP, as it is known. IP is a readily available power source for domestic lighting, heating and cooking. Chemically, it is similar to diesel, but because it is used as a domestic power source, it is not subjected to the taxes and levies that diesel is. In other words, it is cheaper than diesel. The less-than-honest members of our society have taken to doping diesel with IP and, because it is so similar to (but not exactly the same as) diesel, a diesel engine will run quite happily on a diesel/IP mixture at less than the cost of diesel. However, while the engine will run without a problem in the short term, the IP will prove quite damaging to the engine in the longer term. IP has a lower viscosity and less lubricity than diesel, and will cause damage in terms of increased wear to the components of the fuel system. The effects of IP contamination on diesel are that the viscosity, density and

However, high-sulphur fuel also produces sulphur oxides on combustion which – when dissolved in other byproducts of combustion such as water – form strong acids. When these acids condense, they attack the metal surfaces of valve guides, cylinder liners and bearings. The acids produced are neutralised by the engine lubricant and, in doing so, reduce the working life of the lubricant, necessitating shorter drain intervals.

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Finally, high-sulphur fuels act as poisons to catalytic converters and other systems which are used in diesel engines to reduce exhaust emissions and reduce pollution. Sulphur is measured by X-ray fluorescence spectroscopy. It is important to use such an instrument, as other instruments and spectroscopic techniques such as inductively coupled plasma (ICP) are not valid test methods for the measurement of sulphur in diesel.

UNDERGROUND MINING CORPORATE PROFILE

ENSURING COMMUNICATION DURING UNDERGROUND RESCUE OPERATIONS In instances of underground rescue, a vital part of the operation lies in ensuring effective communications between the rescue marshals below, and those on the surface. During any disaster and the subsequent rescue operations, clear and effective communication is one of the most vital requirements. In particular, the communication between the rescue operation manager underground and

the rescue operation manager on the surface needs to be carried out without a hitch. This is why a dedicated line for the SWAR-2EX system is so crucial. The SWAR-2EX solution is a revolutionary wireless communication system that is equally capable of ensuring safety during mining rescue operations and facilitating temporary tasks with unmatched efficiency. Designed to deliver underground communication excellence, the SWAR-2EX solution enables seamless connectivity and dynamic performance in every aspect of underground mining. This is because the technology offers a range of critical features that help deliver this performance, including rapid deployment, as the system can be deployed without the need for fixed installations, specialised equipment, or permanent power supply. Other features encompass temporary wireless communications specially designed for temporary applications – making them ideal for rescue operations, shaft works, ventilation tasks, installation of mining

machinery, and communications during blasting operations – and lightweight battery nodes of just 250g or 500g in size. This allows for flexible and quick deployment at distances of up to 50m. These nodes, in turn, enable the easy creation of branches and loops, without disrupting the overall network, providing adaptability to various layouts. The system also includes portable radios, equipped with additional features like search functions, immobility alarms, and remote sirens, all of which help enhance its utility in rescue operations. Additionally, the system includes a base station for rescue operations. This enables a connection setup with surface headquarters, the monitoring of network status, locating radios, and the capability of issuing simultaneous commands to all squads. Currently deployed at the world’s largest silver mine, the SWAR-2EX rescue communication system is used by all emergency services at this site, and – thanks to its proven success in the field – is now being implemented for communication on multiple mining fronts.

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SAFETY, HEALTH & ENVIRONMENT CORPORATE PROFILE

MINES AGAINST MALARIA The mining sector can make a significant contribution towards disease prevention and elimination across Sub-Saharan Africa.

ining companies and the rest of the private sector can play an important role in supporting malaria control throughout Sub-Saharan Africa, where, according to Unicef, the disease claims the life of a child every minute. In contributing to reducing malaria’s burden, mining companies can demonstrate how social corporate responsibility at their operations can impact workforce productivity and enhance the wellbeing of their workers and local communities, leading to a rewarding return on investment. The World Health Organization (WHO) Africa region carries a disproportionately high share of the global malaria burden. The latest World Malaria Report estimates that of the 249 million cases of malaria and 580 000 deaths worldwide in 2022, the Africa region accounted for 94% of cases and 95% of deaths. Children under five accounted for about 80% of deaths in the region. The impact of malaria is not just one of human suffering. It has a significant economic cost, placing a burden on households, local and multinational businesses, and national economies. Company profits are affected through employee absenteeism, reduced productivity, and escalating cost of healthcare for employees. In some African countries, malaria reduces GDP growth by up to an estimated 1.3%, says a Malaria No More UK report. Malaria spreads when a person is bitten by a mosquito infected with the malaria parasite. Vector control, where the aim is to interrupt the transmission cycle to reduce the spread of malaria, is a key component of malaria control and elimination strategies.

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Data collection by spray operators.

It remains the most effective measure to prevent malaria transmission, according to WHO’s 2015 World Malaria Report. Commonly, mosquito populations are reduced by the application of long-lasting insecticides to the inside walls of homes, through indoor residual spraying (IRS) and the deployment of insecticide-treated nets (ITNs). These reduce human contact with infected mosquitoes and provide both personal and community-level protection.

IMPORTANCE OF PUBLIC-PRIVATE PARTNERSHIPS

Donor investment plays a vital role in financing malaria elimination programmes, but it is increasingly competitive and impacted by wider global financial pressures. Countries face operational, technical, and financial challenges when it comes to selecting and deploying vector control tools. This, coupled with stalling downward trends in malaria incidence and mortality, means countries must find innovative ways to finance malaria elimination. By facilitating access to vector control tools for workers and local communities, mining corporations can contribute to global efforts to eliminate malaria. In so doing, they can also contribute to the national agenda of malaria elimination in the countries in which they operate. Moreover, by filling funding gaps to deliver on malaria elimination targets, mining corporations build reputational capital with local and national governments. Commitment in this area can also reduce the financial toll malaria has on mining operations themselves. Prevention interventions contribute to a reduction in overall expenditure on treatment for malaria cases. This has additional economic benefits,

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Mesto WHOPES 2018 sprayer used during the IRS campaign 2022 in Uganda.

by way of increased workforce productivity. Healthcare costs can also be reallocated to non-malaria conditions, as well as increasing the availability of mining health practitioners to attend to non-malaria related conditions. By killing mosquitoes and reducing the overall size of mosquito populations in any given area, both IRS and ITNs have a community effect. That is, they provide protection not only to those in the household where the intervention is deployed, but also to the population in the local community. This highlights the benefit of spraying not only structures where employees reside, but also buildings in surrounding towns and villages. Public-private partnerships between the mining industry and national health services can support the communities impacted by mining and malaria, while at the same time strengthening local health services and contributing to disease prevention and management. Furthermore, by implementing vector control strategies across their operations, mining corporations can contribute to global efforts to eliminate malaria.

CRUSHING, SCREENING & MILLING CORPORATE PROFILE

EXPLORING THE FUTURE OF MINERALS PROCESSING

A recent conclave hosted by Tega Industries underscores the company’s commitment to improving the beneficiation process through research and development.

ining experts from across the world recently attended a technical conclave aimed at sharing global research on the improvement of milling circuits, as well as extending their viable lifespans. Hosted by minerals beneficiation supply specialist Tega Industries, the conclave presented papers from experts across four continents, and covered topics including optimisation and maintenance, innovations in mill liners, and understanding the influence of design and operating variables on mill performance. It was the second time the mineral processing conclave was hosted in South Africa, by Tega Industries. This shows the company’s commitment to improving the beneficiation process through research and development, as well as listening to the input of its many customers and adapting to their unique needs. Tega Industries Africa CEO Vishal Gautam notes that for over 45 years, Tega has lived by its philosophy to work together with its clients in an effort to enhance productivity through innovative and effective solutions. Its collaborative approach has earned the trust of clients and in just over two decades since establishing a manufacturing plant in South Africa, the company has become synonymous with minerals beneficiation. During this time, he explains, the public listed entity in India has found a niche working shoulder-to-shoulder alongside its customers, to develop products that

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Vishal Gautam.

drastically improve processes and address pain points and bottlenecks on these plants. “This has allowed Tega’s team of worldwide specialists to develop solutions that are appropriate for customers’ requirements, and in turn led to the establishment of conclaves across the globe to share some of the work that the company has done. “These developments apply across

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Tega’s product range – from its renowned DynaMax mill liners, wear products, screens and trommels, to conveyor components and hydro cyclones,” he says. During the conclave, the company also made two significant announcements. First, that the company will enter into the equipment manufacturing market with a full range of crushers, screens, feeders, dry/ wet grinding mills, slurry pumps, thickeners, floatation cells, filter presses, scrubbers, mobile crushing and screening plants. This follows the recent acquisition announcement of minerals processing equipment manufacturer McNally Sayaji Equipment, and will offer African customers significant advantages over traditional equipment. “We also announced the introduction of hand lining services that will be available to all customers using the company’s advanced equipment, for cold and hot bonding of liners to metal parts. These are complicated processes, so it just makes sense from a quality perspective to outsource the work. “The latest conclave underpins Tega Industries’ commitment to the African continent, and demonstrates that local manufacture has many benefits. We are bullish about South Africa and Africa, and that is why we have invested heavily in our plant. We want to be as close to our customers as possible, as it is our belief that on-time delivery reduces customers’ spares requirements and saves them space and money,” says Gautam.

CONSULTING AND PROJECT MANAGEMENT

TACKLING ESG AND ENERGY USE IN THE JUNIOR MINING SPACE © ISTOCK – Bogdanhoda

While junior miners often view paying for consultants as a luxury, when it comes to addressing climate change, the potential savings could easily pay for an external specialist. By Dr Andries van der Linde PhD, Head of Renewable Energy at SSC Group

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and project management services for the junior mining industry, payment for service would be the main challenge. Typically, when it comes to budgeting and expenditure, return on investment is the main priority, while expenditure on environmental, social and governance (ESG) issues would be low on their list of priorities.

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Regardless of size, however, two things all junior miners have in common is energy use and the pressure to address climate change.

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he junior mining industry is one of the more complex entities when it comes to an exact definition, and this is exacerbated by the fact that the South African definition differs from other countries. Members of this industry include everyone from artisanal miners to mining and mining-related companies with a turnover of below R500million per annum. The R500m is as per the Minerals Council upper limit. However, any company that can boast such a turnover can by no means call itself small. It should also be noted that a 2019 Minerals Council survey reported that some 35% of junior mining companies were not in a revenue-generating position yet. Further, 18% of junior mining companies reported annual revenues below R10m, and another 18% reported annual revenues between R10m and R50 million. This indicates that 71% of the junior miners in the survey generate revenues of less than R50m, while 24% reported annual revenues between R50m and R250m. In fact, only one respondent was generating revenues above R250m. Regardless of size, however, two things all junior miners have in common is energy use and the pressure to address climate change. Against this backdrop, it is understandable that when it comes to providing consulting

EMISSION CHALLENGES

Smaller companies seldom have ESG specialists in their employ, and as such would have to outsource this to consultants. However, ESG has become a global

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imperative and ESG performance the benchmark for sustainability – something investors and lenders look at before committing finances. Although there are no laws regulating ESG in the specific sense, there are regulations and government standards for ESG-related actions, reporting and disclosures, some of which carry heavy penalties if not complied with. To take this further, during 2021, the European Union Commission announced the adoption of the Corporate Sustainability Reporting Directive (CSRD), in line with the commitment made under the European Green Deal. On the surface, this may not seem to be of concern because it only appears to affect Europe. However, there is also the Carbon Border Adjustment Mechanism (CBAM), which will place a carbon price on some of the most emissionsintensive industrial goods exported to Europe. However, there is a transitional phase that started 1 October 2023 and ends on 1 January 2026, after which a financial adjustment will be required via purchasing certificates. One CBAM certificate corresponds to one tonne of CO2 equivalent. This means that although the reference is only to carbon, it applies to the full spectrum of greenhouse gas emissions (GHG). During the transitional phase, importers will need

ENERGY MANAGEMENT

Energy management opportunities based on sound financial and engineering principles should result in significant savings. Proven examples include: ■ The implementation of heat-pumps at mines; ■ The use of energy efficient lights; and ■ The improvement of power quality.

Dr Andries van der Linde.

to submit a CBAM report to the European Commission, declaring the total GHG embedded in a consignment. This includes emissions released during mining and manufacturing (direct emissions), certain upstream emissions, and indirect emissions. If primary emissions data is not available, then the Commission’s default values – based on averages plus a markup – must be used. However, from July 2024, using default values rather than primary data will result in fines. Thus, South Africa faces significant vulnerability due to CBAM. In the short term, approximately R52.4billion of South African exports are at risk, with energy-intensive products specifically targeted. However, it is important to note that there is much more than meets the eye because any industry contributing upstream or indirect emissions will also be affected.

AFFORDING THE CONSULTANTS

Whether it is ESG or CBAM, GHG plays a role to a greater or a lesser extent. The only way to mitigate this is to implement GHG mitigation measures. Although most mines would like to do this, for many in the junior mining industry it is not that simple – because at the end of the day it is all about cashflow. However, there is an answer to this. GHG

is produced in several ways, namely during energy production using fossil fuels, during processes such as hydrogen production and steel smelting, or it is released during the decomposition of organic matter, to name just a few. All these can be mitigated by implementing technological or behavioural measures. Such measures, if done correctly, can result in costs being recovered and could even be beneficial to a junior mining company’s bottom line. It is also possible that such measures could be funded, and such loans be paid out of energy savings. In addition, there is a tax rebate as well to enable startups and/or expanding businesses, categories that would fall squarely into the junior mining sector. Energy-efficiency opportunities are very likely one of the best examples to mitigate climate change. The increase in the price of electricity of late has largely contributed to this, while Eskom’s dependence on coal remains the main contributor to a mine’s carbon footprint connected to energy use. Energy-efficiency measures, therefore, result in a commensurate reduction in a mine’s carbon footprint. Should such energy-management opportunities be based on sound financial and engineering principles, they could result in significant savings. Proven examples of

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this are the implementation of heat pumps at mines, where large quantities of hot water are used at shower facilities; the use of energy-efficient lights; or the improvement of power quality. Through a focused energyefficiency drive by Eskom and generous subsidies, especially for water-heating solutions, most of the low-hanging fruit with regard to energy-management opportunities have been addressed. However, there are still opportunities that have not been addressed, or those that have been but may still present new opportunities. Other than renewable energy, opportunities that require a more skilled and innovative approach – such as modernising equipment or processes, the use of waste heat, off-gas or other types of waste that could be used for energy production or conservation – are still largely left unexploited. All that is needed for junior miners to succeed here is engineering skills, imagination, and the will to take it on to bring it to fruition. Any of these can be turned into a positive, and while juniors would likely need to hire external consultants for such an approach, the financial benefits derived should cover the implementation cost – specifically including that of the consultants and project managers who will address it on their behalf.

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SAFETY

CORPORATE PROFILE

NO COMPROMISE ON SAFETY Mining is an industry that is inherently risky, which is why it is critical to put in place measures to protect workers against common threats, such as rockfalls.

ining as an industry is inherently dangerous, posing a different set of dangers to most other jobs; hazards that are broadly similar, wherever mines are found around the world. This could include an array of risks both above and below ground that can cause serious injury, disability or death. Essentially, it encompasses everything from dealing with harsh physical conditions to using heavy and dangerous equipment and machinery. And when it comes to safety, mines not only need to consider the safety of their own personnel, but also potential third parties who may be on-site. Clearly then, employers have to be aware of the relevant health and safety legislation and have in place mining safety management frameworks as a way to ensure safer working conditions. This means controlling and managing danger through the implementation of recognised hazard controls, the use of effective personal protective equipment, safe working practices, and regular risk assessments. It is in this specialised arena that M84 Geotech comes to the fore. As a geotechnical

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company focused on the supply and installation of rockfall protection and mitigation systems, and which is accredited for working at heights, the company works in high-risk areas and thus doesn’t compromise on safety. According to Khomotso Moleke, CEO at M84 Geotech, mining is a dangerous environment and lives have been lost because of the risks miners are exposed to. M84 Geotech operates in surface mines, he says, where a key danger miners are exposed to is rockfall hazards; and if measures are not put in place to mitigate such risks, lives could be lost and equipment damaged. “As a company, our specialty is in supplying and installing physical safety protection and barriers to ensure that miners are protected against any rockfall hazards in open-pit operations. To this end, we draw on our experience and resources to help mitigate such risks in open-pit mines,” he says. “Rockfall hazards are not only a risk to the miners, but also to the expensive equipment used to mine an opencast operation. We are proud of contributing to the safety of miners, by providing protective solutions for a zeroharm mining environment. Nothing should

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be taken for granted when it comes to the safety of the miners, and with the advanced technologies we have now and advanced solutions at our disposal, the death rate in the mining space should be minimised.”

SAFETY THE PRIORITY

M84 Geotech is a rockfall protection and slope stabilisation specialist that uses systems such as drape mesh, pinned mesh, rockfall barriers, rock scaling, rock bolting, shotcrete and slope monitoring instruments installations. “All these systems are used to mitigate any rockfall hazards within the mining environment. The type of system we use will obviously depend on a particular risk that must be addressed. “We can either use a passive system, such as the drape mesh or temporary netting, which is designed for controlled rockfall; or we can apply an active system such as a pinned mesh for slope stabilisation, where the mesh is fixed to the ground or slope for stability.” Moleke says preventive measures such as slope monitoring instruments are installed on high walls to monitor any

“ Rockfall hazards are not only a risk to the miners, but also the expensive equipment used to mine an opencast operation. – Moleke

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KEY SERVICES OFFERED: Rope access Barring down Rockfall canopy Prism installation Slope stabilisation Catch fence installation Drape mesh installation Rockfall protection and mitigation

movement on the slope. The company can also clean the slope of any loose rocks or boulders that might be seen as a risk. Different operations will differ in terms of safety requirements, he notes, so a surface mining operation will differ from an underground mine. “For underground, there will be a lot of drilling, because the solution is focused on stabilising the roof and a more automated installation system can be used. With surface mining, more options are available to mitigate risk of rockfalls. “We can use protective or barrier systems, depending on the risk we are dealing with, and we can also stabilise the slope, monitor or rock scaling.”

TECHNOLOGY AND R&D

He says the company also leverages various technologies to improve the overall safety on-site, such as its use of slope monitoring instruments, which play a preventative role for M84 Geotech teams. This technology keeps the team informed on what is happening on their slope and allows them to take necessary action to prevent rockfall risks.

Drones are also used in the opencast operations to do assessment of the pit to identify any rockfall hazards. Based on the assessment, the right solution will be implemented to mitigate the risk. So technology and physical safety measures all have a role to play in keeping mines safe from possible harm. “It must also be remembered that safety is never static. This means that we need to stay on top of the latest trends and technologies, through ongoing research and development, which is conducted to continuously improve both the methods and the equipment we use. “We mostly use Geobrugg systems for slope stabilisation, rockfall protection and rockfall barriers. Geobrugg is a world-leading manufacturer of rockfall protection solutions, and has been developing these kind of systems since 1951,” he says. Moleke says M84 Geotech conducts a lot of research working with specialists all over the world to assist in the development of protection solutions, with most of the mines the company works with preferring Geobrugg systems.

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TRAINING AND SKILLS DEVELOPMENT

Asked whether any training or skills are required by the miners using these safety measures, he says while M84 Geotech doesn’t necessarily provide training to the miners, as a contractor the company does ensure that its technicians are properly skilled up. “They need to fully understand the systems we use for effective and efficient installation, and our teams work hand in hand with our clients on-site to give them a solution that meets their specific needs. “The work we do is high-risk, and our

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SAFETY

CORPORATE PROFILE

technicians are exposed to the same risks they are employed to protect against. So it’s very important that they are trained in the installations of the systems, and informed about the risks they are dealing with. “We also attend training run by the manufacturer in order to remain up to date with the new technologies and systems they introduce.” Almost all the solutions provided are done while suspended on ropes, Moleke says, because the work is generally done on a mine’s high walls. The M84 Geotech team consists of highly skilled and trained rope access technicians, and the company is an accredited member of the Institute for Work at Height, as well as an accredited installer of rockfall protection solutions. “We have been in the open-pit mining space for over six years, and understand the environment very well. We have 100% completion record on all projects we have undertaken, with no fatalities recorded,” he says.

QUEST FOR ZERO HARM

“Safety is our priority” is the company’s slogan. This informs how M84 Geotech runs its projects and ensures it never compromises on the safety of its technicians and the sites they work on. “I always tell my team that we do not execute a project until we are sure that it is

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With surface mining, we can use protective or barrier systems, depending on the risk we are dealing with, and we can also stabilise the slope, monitor or rock scaling. – Moleke

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safe to do so, and if we cannot find a safe way to do it, we wait until we do. We come to sites to install safety measures, after all; not to become a safety hazard. “Experience is always good to have, but I do not allow it to blind us to the dangers of the environment we work in. Some of the incidents that happen in mines are because people say they are experienced, and neglect or undermine the safety measures they must follow to guard against accidents. As a company, we do not tolerate any unsafe working because we value the lives of our people.” One of the aspects he loves about the work M84 Geotech does is that it protects lives. He notes that what the company offers to mining organisations is safety against rockfall hazards for both their miners and the equipment on-site. The solutions installed neutralise and

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protect mines against the risk of rockfall. If it is protected, he adds, M84 Geotech will guarantee that it will not cause harm. “I believe it is important for mines to have a competent and skilled geotechnical engineering company on-site, to keep their operations safe from rockfall hazards on a dayto-day basis. “Our industry is usually a project-based business, but I think it saves a lot of onboarding time when you have a capable contractor on-site, simply because you are able to respond to emergencies more rapidly. “It is vital to always work safe and avoid taking unnecessary risks. Therefore, if you need a competent and professional rockfall protection specialist for your site, M84 Geotech is ready to offer the right solutions for your mine, because safety against rockfall hazards is our number one priority,” says Moleke.

STRESS AND PSYCHOLOGICAL SAFETY IN HIGH-RISK WORK ENVIRONMENTS High-risk work environments cause psychological stress – leading to mental health issues. This is why psychological safety in the workplace is critical.

n many mining communities, competition DEFINING PSYCHOLOGICAL SAFETY for employment is high, because there is an Psychological safety in the workplace refers to the expectation that the presence of a mine will belief that one can express their ideas, concerns, or equate to thousands of jobs. Sadly, when challenges without fear of retribution, ridicule, or these hopes are dashed, crime, vandalism ostracism. In the context of high-risk environments, and violence often follow. For those who find such as mines, psychological safety might mean the themselves working in a mine, this fear of difference between life and death. becoming a target often brings additional stress, in Psychological safety is not just about making an already highly charged work environment. employees feel good; it has tangible benefits for High-risk work environments inherently expose safety in high-risk environments. When workers employees to various physical dangers, leading to are confident they can voice concerns, they are a constant state of alertness and stress. Add to this more likely to report potential hazards or issues, the pressure to perform, worries concerning job preventing accidents and saving lives. security, fear of safety for oneself and one’s family Effective communication is the backbone By Lani van der Merwe of any safe work environment. A culture of and the constant fear of accidents. It’s therefore no Senior Consultant wonder the industry is known for the type of acute psychological safety encourages open and honest psychological stress that contributes to burnout, communication, enabling workers to discuss at OIM Consulting anxiety, depression, and other mental health concerns, collaborate on solutions, and ensure the issues. smooth flow of information. One research paper that studied mental health in mine workers Employees who feel psychologically safe experience lower levels concluded that: “Mining can expose … workers to serious mental of stress, anxiety, and burnout, which directly contributes to better health problems and risk at work.” It found that a hazardous mental health. This, in turn, leads to increased job satisfaction and environment (e.g. risky conditions), work organisation (e.g. shift overall well-being. work schedules), interpersonal relations (e.g. work-family conflicts), psychosocial risk at work (e.g. high job demand, job stress), wellbeing THE LINK BETWEEN PSYCHOLOGICAL AND PHYSICAL SAFETY (e.g. quality of life, job satisfaction), substance abuse, personality If safety were a tree, psychological safety would be the root, and traits, psychological capital, somatic and physical affection (e.g. physical safety, the leaves. In high-risk environments such as mining musculoskeletal disorders, pain) and other variables all played a role and its communities, where workers face constant challenges and in mental health issues. dangers, a disease in the tree’s roots will quickly spread to its leaves. When employees do not feel safe to express concerns or report PSYCHOLOGICAL STRESS CAN HAVE THE FOLLOWING EFFECTS: potential hazards, it can lead to a breakdown in communication, ■ Absenteeism: In response to high levels of stress, some employees decreased vigilance, and an increased likelihood of accidents. may resort to absenteeism as a way to cope. Frequent absences For instance, a production manager may exert pressure to meet can disrupt workflow and compromise safety. production targets, causing employees to feel stressed. Prolonged ■ Presenteeism: Stress can lead to presenteeism, where employees stress can lead to burnout and absenteeism, affecting both show up for work but are mentally absent. They may be too psychological and physical wellbeing. preoccupied with their stressors to focus on their tasks, which can jeopardise safety in high-risk environments. CREATING PSYCHOLOGICAL SAFETY ■ Quiet quitting: Employees who feel psychologically unsafe may OIM Consulting offers a programme that incorporates safety “quit” their jobs emotionally while still physically present. This awareness training, a battery of individual safety tests that focuses disengagement can have a significant impact on productivity and on a person’s mindset, and 16 weeks of on-the-floor operational safety. coaching. There we give workers tools that will not only allow ■ Burnout: Prolonged exposure to stress in high-risk environments them to become more effective in their roles, but also contribute to can lead to burnout, characterised by emotional exhaustion, psychological safety, such as how to have an effective team meeting reduced performance, and feelings of helplessness. and engage with others respectfully. ■ Strikes: When psychological safety is lacking, employees may We also incorporate various levers, such as the team values charter. resort to strikes as a last-ditch effort to bring attention to their This is a process where we take the company values and interpret – in concerns. Strikes can, in turn, disrupt operations and compromise a tangible way – how these apply on an individual and team level. This safety. enhances psychological safety through clearly defining the accepted ■ Risk-taking: Stressed employees may engage in risky behaviours behaviours, and the team holds one another accountable for these. to cope with their stress, which may increase the likelihood of Recognising the risks of psychological stress and actively accidents and injuries. promoting a culture of psychological safety can lead to better ■ Prolonged stress can lead to psychological and physical ill health communication, enhanced employee wellbeing, and ultimately, a symptoms, such as depression, hypertension and more. safer workplace. In the mining industry, where even minor oversights can have Addressing various manifestations of stress, and ensuring the link severe consequences, maintaining a healthy psychological state is between psychological and physical safety is clear, is essential to crucial for decision-making, situational awareness, and safety. ensuring that when the heat is on, your people are safe.

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The views expressed are the author’s own and do not necessarily reflect SA Mining’s editorial policy.

COLUMN SAFETY, HEALTH & ENVIRONMENT

COMMODITIES

KEY MINERALS

VITAL TO THE JUST ENERGY TRANSITION:

The demand for a Just Energy Transition (JET) grows by the day. SA Mining takes a look at the outlook for 2024 for the various minerals critical to the JET. By Benjamin van der Veen

he outlook for key minerals vital to the Just Energy Transition (JET) in 2024 – particularly platinum group metals (PGMs) and Manganese – presents a mixed scenario of challenges and growth potential, particularly in the South African economy. In respect of the forthcoming year, a significant milestone for JET would be advancing its objectives in line with the Just Energy Transition Investment Plan (JET IP). This plan outlines the steps and investments required for South Africa’s decarbonisation efforts, emphasising sustainable development, inclusive growth, and social justice. Key elements include diversifying the energy mix, implementing supportive policies, and making targeted investments to unlock the potential of the green energy sector. This plan is crucial for meeting carbon reduction commitments, and promoting economic prosperity through a just transition.

OUTLOOK FOR MANGANESE

Manganese is a key material in renewable technologies, and as such, global demand is expected to grow significantly. This mineral is crucial for the steel industry and is increasingly used in battery production. In 2023, the manganese market experienced an oversupply, amid flat global production and tepid demand, especially with weakened steel production. The largest consumer of manganese, China, saw a surplus of manganese ore at its ports due to decreased steel production, leading to lower manganese prices.

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Clearly, the manganese market is inextricably linked to the steel market, as over 97% of annual manganese production is used in steel-making. And, as Andrew Zemek of CPM Group points out, the steel industry is not in great shape. “Global crude steel production has been falling for most of the past two years,” Zemek notes. “After the first 10 months of 2023 (seven of which recorded a year-over-year decline in production), steel industry output is almost exactly where it was after the first 10 months of 2022 – there was no growth at all.” Despite these challenges, the global manganese market, valued at $25.2-billion in 2022, is forecast to reach $29.8bn by 2028, with a compound annual growth rate of 2.8%, from 2022 to 2028. For South Africa, which possesses over 80% of the world’s manganese reserves, this is an opportunity to build new mines and create jobs, boosting the local economy. Manganese is also critical in infrastructure construction and renewable energy technologies, including solar and wind farms, which require large amounts of steel. It is not surprising then that in South Africa, manganese is increasingly becoming a key player in the nation’s mineral wealth. The Northern Cape, a central manganese mining region, has shown robust growth in manganese production and sales. The region is expected to play a significant role in meeting the growing international need for manganese, especially in the rising demand for electric vehicles, as manganese is a crucial element in manufacturing lithium-ion batteries.

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WHAT THE ANALYSTS SAY

Analysts predict a 10% annual increase in the demand for manganese in lithium-ion batteries over the next decade. During this period, South Africa’s manganese ore production is anticipated to account for about 50% of the world’s additional manganese ore output. On the production side, South Africa’s manganese industry faces challenges related to supply chain logistical issues, including reduced rail capacity and port delays. However, investments are being made to overcome these challenges and improve operational efficiency. Overall, while the manganese market faced pressure in 2023, prospects for 2024 look more favourable, albeit dependent on external factors like the global economic climate, and specific developments in major manganese-consuming nations like China and India. “A general conclusion from analysing the 2023 manganese market is that we won’t see any fireworks in 2024,” says Zemek. “However, investors may see market events that could lead to moderate price growth for some manganese products, mainly electrolytic manganese metal, high-purity manganese sulphate monohydrate, and certain manganese ferroalloys.” On a broader scale, the outlook for mineral and metal prices in 2024 is cautiously optimistic. BMI Research predicts only a slight price improvement, due to continued weak demand in China and global growth deceleration. Global growth is expected to be moderate, with a particular focus on China’s

“ A general conclusion from analysing the 2023 manganese market is that we won’t see any fireworks in 2024.

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FACTORS INFLUENCING SA’S 2024 MANGANESE OUTLOOK

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economic performance. The decline in dollar strength in the latter half of 2024 might support certain metals like copper, aluminium, and tin prices. Critical minerals will continue to attract attention due to heightened concerns over resource security in significant economies, driving policies for developing stable and reliable supply chains. Mergers and acquisitions in the metals and mining sector are anticipated to remain prevalent, driven by the global energy transition and industry consolidation trends. This consolidation is a strategic response to the anticipated critical mineral supply gap. Furthermore, environmental, social, and governance considerations are increasingly important for companies in the sector, impacting investment attractiveness and operational licences.. For South Africa, these trends suggest both challenges and opportunities. The country’s rich mineral resources position it well to benefit from the growing demand for minerals essential for the energy transition. However, the global economic environment, domestic policy, and regulatory frameworks will be crucial in determining how effectively the country can leverage this potential for broader economic growth and development.

PLATINUM GROUP METALS OUTLOOK

The outlook for PGMs in South Africa for 2024 appears to be influenced by several key factors: ■ Market deficit and price projections: Platinum is expected to maintain a market deficit in 2024, with global demand thriving. ■ Palladium market: The palladium market

is anticipated to face a significant deficit, driven by a subdued secondary supply from recycling and a decline in demand due to platinum substitution. ■ Role of the hydrogen economy: An important new growth area for PGMs is the hydrogen economy, where PGMs play a pivotal role in hydrogen production and application. South Africa’s wealth of PGM reserves positions it as a key player in the global renewables market. The country’s capacity to harness renewable energy through solar and wind power can be a major driver for the production of green hydrogen, which in turn can boost the demand for PGMs. Dr Philipp Walter, executive VP of New Business Development at Heraeus Precious Metals, emphasises the integral role of PGMs in the burgeoning hydrogen economy. “There will be significant growth in the hydrogen economy. PGMs, for example, are again key in the transport of hydrogen through carriers such as liquid organic hydrogen carriers, or LOHC, ammonia, methanol, and fuel cells,” he says. “Green hydrogen especially depends on proton exchange membrane electrolysis technology, owing to this coping best with renewable energy fluctuations. Platinum, iridium and now also ruthenium play electrocatalytic roles in splitting water into hydrogen and oxygen, with PGMs also being used as catalysts to crack ammonia into nitrogen and hydrogen, and to convert carbon dioxide into methanol or other hydrogen-carrier molecules.” It is also worth noting that innovations in financing structures and growing global

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Globally, manganese demand will improve in 2024, although much depends on China’s economic recovery and the global steel industry. The World Steel Association projects modest growth in global steel demand for 2023 and 2024, which could positively impact manganese demand since manganese is a critical component in steel production. Chinese dominance in the manganese market means that global demand is significantly influenced by China’s economic activities, particularly in its construction sector, which is a significant consumer of steel.

interest in green energy solutions will likely benefit South Africa’s PGM industry. In conclusion, while South Africa’s PGM sector faces challenges, it also has significant opportunities, especially in the growing hydrogen economy. The price ranges and market deficits suggest a dynamic year ahead for the industry, with strategic positioning in new growth areas being crucial for maximising the potential of South Africa’s PGM resources.

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MINING EQUIPMENT CORPORATE PROFILE

BELL EQUIPMENT APPOINTS ASHLEY BELL AS NEW CEO

Building on an ongoing family legacy, a third generation of the Bell family has taken on the role of CEO at Bell Equipment.

ell Equipment Limited has appointed Ashley Jon Bell (41), grandson of the company’s founder Irvine Bell, as the new group chief executive officer (CEO), effective from 1 January 2024. This follows the resignation in July of the outgoing group CEO, Leon Goosen, who left the company on 31 December 2023 after 16 years of service, five and a half spent as group CEO. The new CEO is well acquainted with the company, having served as a non-executive director on the board since March 2015, and has provided valuable input as a member of the board’s Risk and Sustainability and Social, Ethics, and Transformation committees. A qualified commercial helicopter pilot, Bell holds a degree in business management and has previously worked for Bell Equipment. After graduating in 2007, he assisted with product marketing management of the Bell Articulated Dump Truck (ADT) and Backhoe Loader ranges. Since then, he has jointly established and managed several successful businesses in various industries. He also co-founded Matriarch Equipment with his brother, Justin Bell, in 2009. The company focused on developing innovative equipment for a wide spectrum of industries

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and enjoyed notable success in agriculture and forestry due to its customer-centric approach and quick turnaround of niche solutions.

Ashley Jon Bell.

The Bell organisation acquired Matriarch in 2019, as part of its strategy to revitalise its presence in the agriculture and forestry industries. The Matriarch line and its products now fall under the Bell brand. Gary Bell, non-executive chairman of Bell Equipment, offered congratulations on the

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appointment: “Ashley joins a sizeable team representing the third generation of the Bell family actively engaged in the business, and it’s heartening to see the next generation stepping up to play an integral role in the future of the company. “Having worked closely with Ashley for several years, I can say he has all the personality traits and credentials we need, is well aligned with the board’s strategy, and is a good fit to lead our experienced management team. I have every confidence that he will build on our family legacy with dedication and a passion for the business. On behalf of the rest of the board, we congratulate Ashley on his appointment and look forward to working with him in his new role and contributing significantly to our continued success and growth.” Speaking on his appointment, Ashley Bell added: “I am fortunate to have grown up in an environment where Bell Equipment has been a central theme, and I am both honoured and excited to step up as group CEO. I look forward to working with the entire Bell team, supported by our customers and suppliers, to ensure we execute our group strategy and make a positive impact for all stakeholders. I would like to extend my sincere thanks and appreciation to the board for the trust and confidence they have shown in me taking on this role.”

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EXPLOSIVES

BLASTING

AND THE POWER OF POSITIVE DISRUPTION Positive disruption in the mining sector has led to the development of new techniques and technologies in the blasting and explosives arena.

s the Investing in African Mining Indaba kicks off in 2024, the event’s theme of “positive disruption” could not be more appropriate for the new directions being forged in the field of mine blasting and explosives. According to Ralf Hennecke, managing director of Omnia group company BME, mining has been facing the same winds of change that are impacting other sectors of the global economy, but has not just been adapting to new demands. Rather, the sector has been applying technologies that are taking safety and productivity to new levels. “From our perspective as mining technology partners, BME can certainly attest to how mines are ‘embracing the power of positive disruption’,” says Hennecke. “We have no doubt that this is a critical element of African mining’s bold new future.” For example, he notes that in blasting, good rock fragmentation is key to unlocking the early-stage efficiencies on mines. This is doubly significant, because the loading,

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hauling and comminution phases that follow are among the mine’s most energy-intensive. Making these processes smoother means that less energy is consumed, cutting costs and reducing the operation’s carbon footprint. “It has been a long journey towards improving fragmentation. BME entered the SA market in 1984 as a pioneer in cold emulsion explosives, and what followed was decades of investment in emulsion technology and a range of electronic and digital solutions – as well as equipment and accessories.”

ELECTRONIC DETONATION AND SAFER BLASTING

One of BME’s most valuable lines of development during this time was that of electronic detonation, which continues to enhance blasting outcomes through its safety, accuracy, reliability and flexibility. “By allowing millisecond delays between detonations, and by lengthening the firing window, mines are now able to design

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increasingly intricate blasts to suit specific geological conditions and production requirements. Mines have also been able to initiate ever larger blasts, thereby limiting their pit disruptions and blast-related downtime,” he says. “Underpinning this capability is BME’s own electronic initiation system, AXXIS, while software too has been central to the positive disruption in the blasting space, particularly in respect of the planning of blasts. Today, mines can use blast planning programs like BME’s Blastmap to prepare each blast to the finest detail of complexity – then even simulate the results.” A non-negotiable in Africa’s mines is the prerogative of safety, which is why BME’s flagship AXXIS Titanium system allows testing to be conducted at a lower voltage than detonation. A member of Safex – the international explosives industry body, BME applies the highest standards across all operations, something reflected in its zero recordable case rate. “As a blasting pioneer in Africa, BME was

KEY DISRUPTIVE EXPLOSIVE TECHNOLOGIES BME continues to roll out its plans for expansion into markets, including parts of Africa, as well as Canada, Australia and Indonesia, underpinned by disruptive technological advancements.

NON-NITROUS TECHNOLOGY

The company has successfully partnered in the field of technology – working with Hypex Bio to strengthen its sustainability ambitions for non-nitrous emulsions. Using hydrogen peroxide is a groundbreaking technology in the sector, and a direction that BME wants to help pioneer globally. This partnership also adds considerably to the environmental, social and governance (ESG) conversation that BME has with its mining customers, and opens doors in new and existing markets. The company’s dual-salt emulsions are already assisting mines to meet their decarbonisation targets, due to the lower greenhouse gas emissions from blasts. Much lower proportions of ammonia in its emulsions also reduces the risk of environmental contamination – an ongoing concern for miners.

DIGITAL COLLABORATION

Having built considerable in-house digital expertise, BME nonetheless continues to prioritise more partnerships that leverage cutting-edge

technologies. Collaborations in these fast-developing fields are likely to feed into the company’s established efforts to automate areas like emulsion truck operations. There are, in fact, a growing number of mining companies that are looking to automate their sites, and that are looking for innovative solutions to facilitate this process. BME has already introduced smart functionality into its mobile manufacturing units, using its Xplolog and Xplocharge solutions to enable real-time monitoring, data capture and analysis. This is raising the bar in the accuracy of emulsion pumping into blastholes, allowing cost savings and efficiency.

BLASTING ECOSYSTEM

The organisation’s global expansion is supported by the enabling ecosystem that it provides for customers, to achieve quality blasts that reduce downstream costs while enhancing energy efficiency. This aligns with customers’ sustainability goals while ensuring optimal productivity. In support of continuous advancement in this field, BME is already working on the next generation of electronic detonators, and continuing to enhance accuracy to deliver blast results that support ESG targets. The ability to supply reliably remains at the core of BME’s offering.

the first explosives company to be licensed in countries like Mauritania and Sierra Leone. Its experience meant it could assist government authorities there in drafting legislation that would pave the way for the responsible application of explosives,” says Hennecke.

INNOVATION IN BLASTING

While supporting the sector’s drive towards lower carbon emissions, it has also been vital to protect the environment in every way possible. Where innovatively applied, he explains, these efforts should also lead to positive social impacts – a key element of the environmental, social and governance priorities that are growing in importance. “BME has managed such an achievement with our used oil initiative. By systematically and responsibly collecting used oil from customers and other sources, we remove this hazardous substance from the economy and prevent possible contamination of water and land. Furthermore, by embracing the circular economy approach, BME treats and

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BOLD FUTURE

To support the global move towards lower emissions, BME’s parent company, Omnia Holdings, has entered into a partnership with Swedish-based Hypex Bio Explosives Technology, which is at the forefront of innovative and sustainable civil explosives solutions. “Hypex Bio has developed a groundbreaking emulsion using hydrogen peroxide. This first-to-market non-nitrate explosive emulsion reduces the carbon content of blasting by 90% over traditional sources. This technology has the potential to completely change the explosives supply industry,” says Seelan Gobalsamy, CEO of Omnia. It is well accepted that the bold new future for African mining cannot be business

“ By embracing a circular economy approach, BME treats and reuses old oil as a fuel agent in its quality emulsions, ensuring that it is safely disposed of during high-energy blasts. – Hennecke

“

reuses this oil as a fuel agent in its quality emulsions, ensuring that it is safely disposed of during high-energy blasts.” The company has further designed the collection network to include small businesses in local economies around mines, he says. “This assists the social responsibility efforts of mines, as they work towards promoting economic diversity and livelihood resilience in their host communities.”

EXPLOSIVES

as usual, suggests Hennecke. While BME’s success is rooted in an operational foundation of secure supply chains and reliable delivery to customers across the continent, the company also embraces the need for innovation and change. “With Africa as its base, BME

DISCOVER IMPROVED SAFETY = productivity improvement

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INNOVATIVE PRODUCTS TAILORED SOLUTIONS

demonstrates what the continent has to offer other mining regions of the world. Africa is responding actively to the revitalised search for minerals critical to the energy transition, and can leverage a more sustainable future from these new blasting processes,” he says.

the full value of BME

ACCURACY = cost efficiency

PRECISION = greener blasting

CONSTRUCTION IN MINING

BUILDING ENERGY SECURITY

The confluence of high energy costs, sustainability requirements and SA’s dreaded load shedding has led many mines to consider implementing renewable power solutions. By Rodney Weidemann

ines have long been large consumers of energy, which is why concerns around costs and carbon footprint reduction have been top of mind. However, in recent years, a new concern has risen to the surface, namely how to keep their operations running during the country’s load shedding crisis. Inevitably, this has led to these entities exploring the energy security possibilities inherent in renewables. According to Richard Doyle, managing director for JUWI South Africa, regulatory environments are also maturing, helping to further facilitate the adoption of these technologies. He suggests that mines can now obtain a significant percentage of their electricity from renewable energy plants, either on site, or wheeled through the electricity network, at lower cost than grid-supplied energy. “For mines, we develop, build, and operate mainly standalone solar and hybrid solutions. ‘Hybrid’ in Africa usually means solar, coupled with battery storage and/ or fossil fuel generator backup power. The preferred solution and technology mix will depend on a range of factors, including whether a mine is connected to the national grid or not,” he explains.

“A good example of a hybrid solution is the 36MW solar and 7.5MW battery/gas generator energy storage project we have developed for Sukari Gold Mine in Egypt. The mine isn’t grid-connected, and previously relied on diesel electricity generation.” With the hybrid solution, he continues, the mine is protected from volatile fuel pricing, and is currently saving around 22 million litres of diesel per year, valued at around $20-million annually, depending on diesel costs. “The carbon emissions reduction of this project are also quite extensive, with a reduction in Scope 1 greenhouse gas emissions of some 60 000 tonnes CO2 equivalent each year.”

AFRICAN PROJECTS

JUWI South Africa is part of the international JUWI Group, a leading renewable energy organisation, established in Germany in 1996. The local office opened in Cape Town in 2011, and employs over 100 staff members. In Africa, explains Doyle, JUWI has developed, built or is operating a total of 54MW of solar projects, and is about to close another 50MW. The various projects across the continent use a range of different backup technologies – including batteries, gas and diesel generation.

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“As far as South Africa is concerned, our first project for a mine here was the 10MW Elikhulu solar plant that JUWI has developed, built and is operating for gold producer Pan African Resources. “The company is now in the process of constructing a second project in SA, namely an 8MW solar PV plant for Pan African Resources’ Barberton operations. Its third African-based project is the aforementioned Sukari Gold Mine in Egypt.” In addition, notes Doyle, JUWI has a 50MW behind-the-metre project about to reach financial close, and another project in West Africa expected to close early in 2024.

VAST BENEFITS

One of the greatest benefits of renewable energy systems for mines is that reliable energy ensures the security of mining operations, prevents outages, and protects the lives of workers, continues Doyle. “With renewable energy being the cheapest form of power, coupled with price security, cost savings, and the ability to forecast energy costs, it is clear why it is a major draw for mines. The decarbonisation of operations and meeting ESG/emissions targets is another tangible benefit,” he says. “For instance, JUWI’s 10MW solar plant for

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CONSTRUCTION IN MINING

“

JUWI’S AFRICAN PROJECTS

■

Our first South African project was the 10MW Elikhulu solar plant that JUWI has developed, built and is operating for gold producer Pan African Resources. – Doyle

“

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■

“Mines may get a ‘cheaper’ system through a tender process, but this is often not the best lifecycle value proposition, because projects may be under- or overscoped.”

gold producer Pan African Resources at their Elikhulu Tailings Plant in Evander sees the solar plant contributing a significant portion of the operation’s energy requirements.” It is producing 25 000 MWh of electricity per year, he says, and saves 26 000 tonnes of CO2 emissions annually – about 5% of the mine’s carbon footprint. “The plant saves the mine R36m a year in electricity bills at current Eskom tariffs, which are only set to increase exponentially. Fortunately, Pan African Resources isn’t stopping there, with the mine announcing it aims to have 30MW of solar capacity installed by 2024.” This will save about R100m a year in electricity bills and reduce their carbon emissions by 80 000 tonnes/CO2 a year. One caveat, adds Doyle: JUWI always recommends that mines select a renewable energy partner to work with from the start of their clean energy journey. “With large energy consumers, it is a mistake to go out to tender in the first instance. Valuable opportunities to accurately develop, optimise and make forecasts during pre-feasibility and feasibility studies are missed when tender processes are followed for scopes of work that are not correctly developed.

■

The 10MW Elikhulu solar plant for gold producer Pan African Resources – developed, built and operated by JUWI. The 8MW solar PV plant for Pan African Resources’ Barberton, SA, operations – developed and under construction by JUWI. The 36MW solar and 7.5 MW battery energy storage project developed for Sukari Gold Mine in Egypt – developed, built and operated by JUWI.

SOCIAL AND SUSTAINABILITY ISSUES

JUWI also understands the importance of social justice, with the company noting that beyond the broader societal impacts of reduced carbon emissions and job creation in the economy, renewable energy projects for mines do have local social and employment benefits. “The construction of large projects requires the recruitment and training of local labour in many instances, which creates jobs and develops the skills of local people. Projects also require ongoing maintenance and security, which utilises local labour and skills. While we are not obligated to use local labour for private projects, JUWI has a policy of doing so in order to advance local economic development,” says Doyle. He describes further how it is now possible for mines to get a significant percentage (around 50-60%) of their electricity from renewable energy plants, either on-site, or wheeled through the electricity network, at lower cost than

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grid-supplied energy. Furthermore, power purchase agreements and funded solutions mean mining companies do not necessarily need to finance projects themselves. “These factors, coupled with sustainability and carbon emission reduction demands from stakeholders, along with South Africa’s more specific need for energy security, mean that there will be no slowing of the renewable energy transition for mines.” Although mines are fairly conservative in their adoption of new technologies, he says, there’s not only a very clear business case, but also “many examples of the deep benefits of renewables. Therefore, I predict that more than half of all mining operations will likely be powered by clean technologies in the not-too-distant future”.

MINING EQUIPMENT

CORPORATE PROFILE

HOW TO SAVE MINES MONEY The application of predictive maintenance techniques by WearCheck can save mines money, while also increasing reliability and increasing productivity. The importance of saving money on maintenance costs, boosting equipment reliability and improving productivity has led a large number of mining operations across Africa to rely on the services of specialist condition monitoring company WearCheck. The company’s core service is the scientific analysis of used oil, fuel and other fluids. This entails analysing fluid samples for trace particles, which indicate which component is suffering unusual wear patterns. The test results are then assessed by a team of specialised diagnosticians, who advise on a course of remedial action, if any is required. Among the additional predictive maintenance techniques offered are asset reliability care services; transformer chemistry services; and advanced field services such as non-destructive testing, technical compliance and rope condition assessment. Furthermore, WearCheck’s lubrication-enabled reliability offering provides clients with bespoke solutions to keep lubrication systems ship-shape. WCK SAMM196x136 (PRINT).pdf

2024/01/11

Condition monitoring is KEY to mining production

Water analysis is an additional service offered by the company – testing the quality of wastewater, groundwater and surface water in areas surrounding mining and exploration sites. Ensuring that effluent/ wastewater is compliant and safe for disposal is essential. Compliance with municipal by-laws and environmental safety standards allows for the safe disposal of

wastewater into streams and rivers. Finally, ground and surface water quality analysis allows for the determination of water safety for use on equipment, drinking, washing and other purposes. WearCheck will be at stand J19 at the 2024 Investing in African Mining Indaba at the Cape Town International Convention Centre from 5-8 February.

3:37 PM

WearCheck, Africa's leading condition monitoring company, is committed to serving the mining industry with its range of sophisticated analytical techniques. Our specialist oil, coolant and fuel testing programmes allow customers to reduce maintenance costs, avoid unexpected mechanical failures and ultimately reduce unscheduled downtime. Unlock Machine Reliability!

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MAKING MINES WORK

NSDV EXPANDS ITS GAUTENG FOOTPRINT NSDV – previously known as Nupen Staude De Vries – has expanded its footprint to include a newly minted office in Tshwane’s Agri-Hub Office Park, Die Wilgers. The new office serves to make Pretoriabased client engagements more economical and reduce both the firm and its clients’ carbon footprints, by eliminating the need to commute to Johannesburg, where the flagship office is based. The two Gautengbased offices also give employees the flexibly to work closer to home, where less time is spent on commuting and more time is reserved for employee personal time – a value NSDV highly advocates for. “It’s been an astounding journey, from just three attorneys in our garden cottage, to a staff complement of almost 30 in five years. We’re exceptionally proud of our growth and growing client portfolio, many of whom are Pretoria-based,” says Cameron Staude, co-founder and head of Construction Law. NSDV is one of the only law firms that has an environmental assessment practitioner

working closely with the environmental team, to holistically advise on the legal and operational aspects of mining and construction projects for clients. After five years of growth, NSDV is also proudly 80% women-led, an unprecedented achievement for a legal firm. “We’re not specifically focused on hiring only women, but many women have

been drawn to NSDV’s approach to be more collaborative. They also enjoy the way we build our relationships with regulators, often resulting in a less combative approach that leads to our clients’ success in a quicker, less burdensome way,” says Lili Nupen, co-founder and head of Mining and Environmental.

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