25 minute read
Gold Fields goes green
By Nelendhre Moodley
Gold Fields recently received approval for the construction of a 40MW solar power plant at its South Deep mine. SA Mining caught up with the gold miner’s executive vice president: South Africa,
Martin Preece, to chat about the company’s energy strategy and its focus on renewables.
WHAT ARE SOME OF THE CHALLENGES GOLD FIELDS FACES IN TERMS OF ENERGY, AND HOW IS THIS AFFECTING BUSINESS?
In South Africa, unreliable and una ordable supply from the national utility Eskom poses a major risk for all mining companies. This not only impacts on costs and erodes margins, but also has an opportunity cost implication as a result of the inability to operate due to load curtailment.
WHAT IS GOLD FIELDS’ ENERGY STRATEGY GOING FORWARD?
Gold Fields’ energy objectives are based on four pillars that promote a shi to selfgeneration using renewable energy sources. Energy must be available, reliable, coste ective and clean.
During 2020, renewable electricity made up 3% of the Gold Fields Group’s electricity consumption. Once the South Deep solar project is commissioned, renewable’s contribution to the group’s total consumption will rise to around 11%.
Also last year, Gold Fields successfully implemented solar and wind renewable projects, backed by battery storage, at two of its Australian mines, Agnew and Granny Smith. It’s also committed to renewables at its other Australian mines, Gruyere and St Ives, and the new Salares Norte project in Chile when it starts operations in 2023. All its other mines are reviewing renewable energy options.
HOW DOES THIS ENERGY STRATEGY INFLUENCE BUSINESS OPERATIONS AND ALIGN IN TERMS OF LOWERING GOLD FIELDS’ CARBON FOOTPRINT?
A er salaries and wages, energy is generally the second biggest cost item for our mines, accounting for between 10% and 20% of operating costs. As such, it is critical that our energy strategy not only ensures security of supply but also cost-e ective energy supply.
As important is our focus on reducing our carbon emissions and meeting commitments we have made in this regard. Our approach is not only good for the environment, but makes business sense too.
The biggest contributors to carbon emissions are the electricity we purchase from outside suppliers and the diesel consumed by our fleet of mining vehicles and machinery. Replacing coal-, diesel- and ultimately gaspowered electricity with renewable sources makes a direct contribution to lowering our carbon emissions.
Renewables have the added benefit of being largely on-site with many of our renewable sources directly supplying our mines without requiring an extensive grid network.
As for replacing our diesel-powered fleet, that will take time. And while we are trialling battery electric vehicles, this is still at an early stage and not viable yet. Over time though, we envisage that our fleet won’t be powered by diesel but rather by electric batteries and potentially hydrogen fuel cells.
DESCRIBE THE ROLE THAT RENEWABLES WILL BE PLAYING IN POWERING GOLD FIELDS’ PROJECTS, ESPECIALLY IN AFRICA AND SOUTH AFRICA, AS WELL AS GLOBALLY.
In 2020 renewables accounted for only 3% of our energy mix, 11% if hydro was included, as our Peruvian mine receives power from a utility that uses mostly hydro power. This year the percentage will start rising as our Granny Smith and Agnew mines in Australia will have a full year of supply from their micro-grids. Agnew on average is already consuming 57% of its electricity from renewable sources.
As the solar plant at South Deep comes on stream in 2022, renewables (excluding hydro) will account for 11%. Gruyere in Australia and Salares Norte in Chile, when it becomes
“Once the South Deep solar project is commissioned, renewable’s contribution to total consumption will rise to around 11% of Group’s total energy usage. – Preece
South Deep plant.
operational in 2023, will also have a share of renewables in their energy mix in the near future. If all our current renewable plans come into fruition we should have up to 25% of electricity from renewable sources by 2025 (excluding hydro).
For now, the South Deep solar plant remains our only renewable plant on the continent, as our two Ghanaian mines, Tarkwa and Damang, currently have dedicated gas plants powering their operations and have only started commencing studies into the long-term viability of renewables.
WHAT DOES APPROVAL FOR THE SOUTH DEEP SOLAR POWER PROJECT MEAN FOR THE COMPANY?
While other mining companies have developed or are in the process of developing their own solar plants, what makes the South Deep solar project unique is that Gold Fields is the first mining company in South Africa to build, own and operate its own solar plant on such a large scale.
This reduces our exposure to Eskom in terms of reliability and above-inflation cost escalation and allows us to enjoy the full cost benefit associated with the renewable energy source. It also addresses the opportunity cost of lost production during frequent load curtailments instituted by Eskom.
Once completed, the solar plant has the potential to provide around 22% of South Deep’s average electricity consumption, translating into a cost saving of roughly R120-million per year and reducing our carbon footprint by 100 000 tonnes per year from 490 000 tonnes to 390 000 tonnes.
Energy accounts for “ “ between 10% and 20% of operating costs. – Preece
GOLD FIELDS RECENTLY RECEIVED THE GREEN LIGHT FOR THE CONSTRUCTION OF A 40MW SOLAR POWER PLANT AT ITS SOUTH DEEP MINE. PLEASE SHARE WITH US THE DETAILS OF THE SOLAR POWER PROJECT.
As far as possible, goods and services required to build the plant will be sourced locally in South Africa. We are evaluating local companies that manufacture and supply solar panels, which make up a significant portion of the capital spend. Specialised equipment such as inverters will however have to be imported.
We applied for our licence on the basis of self-generation for self-consumption in June 2020. The licence was awarded in February this year. We anticipate that construction will take between 12 and 18 months and should be completed during 2022.
The 40MW solar plant has a generation capacity of 339KW per hectare and the plant footprint will cover 118ha, roughly the size of 200 soccer fields.
The plant will generate 22% of the average electricity consumption of the mine or 94GWh per year.
Two hundred and forty jobs will be created during the construction phase, while a team of 12 people will be required to operate the plant once commissioned.
While the plant will provide significant direct employment opportunities during construction, more importantly it will enhance the sustainability of the mine which means we can continue to employ and develop employees, contribute to community development projects through our social and labour plans and contribute to the fiscus through taxes and royalties.
ARE THERE ANY IMMEDIATE PLANS TO REPLICATE THE SOLAR PROJECT AT ANY OF YOUR OTHER AFRICAN PROJECTS?
Our two Ghanaian mines, Tarkwa and Damang, are currently studying longerterm renewable options, including solar. They currently have dedicated gas plants powering their operations and as gas is a low-carbon solution we have a bit of time before implementing renewable supplies. ■
Fluid power and automation company Bosch Rexroth has engineered a disruptive innovation for electrically actuating valves in the subsea process industry. Called the SVA R2 Subsea Valve Actuator, it is the world’s first electric actuator that can replace conventional hydraulic cylinders with field-proven safety technology.
The actuator minimises energy consumption and is geared towards delicate ecosystems, and installation and operating costs are reduced.
When the SVA R2 is used in subsea factories at a depth of up to 4 000m, hydraulic pipes or power units are no longer required. The electric supply pipes which are already installed for sensors are adequate to ensure the reliable operation of the actuators. These functions, the operating life and actuator safety have been successfully tested in accordance with international standards, the company says.
Previously, process systems’ operators have mainly relied on hydraulic cylinders to open and close subsea valves with a quarter turn and a defined force. With o shore installations like oil and gas production, these cylinders are supplied by a central hydraulic power unit with hydraulic pipes several kilometres long. This uses a great deal of energy to compensate for the cumulated losses and cannot control the movement with precision.
Designed for high-volume production, the electronics for the motion control system o er proven robustness and reliability. The SVA R2 is protected by a number of patents and is designed to operate for 25 years.
The actuators for rotary adjustment complement the SVA L2 Subsea Valve Actuator for linear movements, which received the Spotlight On Technology Award from the renowned O shore Technology Conference in 2020.
This valve actuator is available in Southern Africa through the Bosch Rexroth SA Group of Companies.
Bosch Rexroth has engineered the world’s smallest electric subsea valve actuator.
WE MOVE
YOU WIN
We move through Africa to get your machines moving more effi ciently.
Through 15 branches and distributors throughout sub-Saharan Africa, HSA brings the world’s leading hydraulic, pneumatic and automation technologies and services to your doorstep. That’s why HSA is now a Bosch Rexroth Company . Call us: +27 (O) 11 573 5460 or Visit our website at: www.boschrexroth.africa
GREEN LIGHT
FOR SASOL/ AIR LIQUIDE DEAL
Petrochemicals giant Sasol has received Competition Tribunal approval for its sale of 16 air separation units (ASUs) to Air Liquide Large Industries South Africa. The approval was received subject to various conditions relating to future ownership of the ASUs.
These included joint procurement of renewable power up to 900 megawatts, decarbonisation investments by Air Liquide, ensuring that there’s no negative impact on employment and adhering to various commitments on broad-based black economic empowerment. This is in addition to support for localisation and small, medium, micro and black-owned enterprises.
“We are pleased to o icially welcome Air Liquide as one of Sasol’s partners in Sasol’s decarbonisation journey,” says Sasol CEO Fleetwood Grobler. “This transaction is a significant contributor to us achieving our accelerated and expanded asset disposal programme targets, executed in line with our balance sheet, shareholder value and strategic objectives.”
Air Liquide will o icially own and operate the 16 ASUs, which are located in Secunda, Mpumalanga.
© ISTOCK – kodda
GOSCOR POWERS KENRA HOLDINGS
© ISTOCK – dies-irae
In Goscor Compressed Air Systems, distributors of compressed air and downstream equipment, Kenra Holdings has found a fitting compressed air solutions provider that ticks all the right boxes for its air and energy rental business, says MD Karen Kasavaloo.
Founded in 2015, Kenra Holdings is a 100% black womanowned level 1 broad-based black economic empowerment company that specialises in the rental of compressors, generators, tower lights/lighting plant, diesel bowsers and related services to various sectors such as construction, mining, industrial and state-owned enterprises.
Kenra Holdings has chosen Goscor Compressed Air Systems as its preferred supplier for compressors in the past 18 months. Most of Kenra Holdings’ clients use small power tools such as paving breakers, chipping hammers and rock drills.
To meet their needs, Kenra Holdings opted for the Sullair 185, a portable rotary screw air compressor that punches well above its weight with a remarkable 185 cfm at 100 psi. above its weight with a remarkable 185 cfm at 100 psi. “These compressors give our customers “These compressors give our customers the ease of operating their power the ease of operating their power tools with maximum power, tools with maximum power, uptime and e iciency.” uptime and e iciency.”
MINE CLOSURE IMPACTS
Mineral Resources and Energy minister responds to closure impacts in the draft mine closure strategy 2021
By Ntsiki Adonisi-Kgame: natural resources and environment executive and Mihlali Sitefane: natural resources and environment senior associate
Ntsiki Adonisi-Kgame. Mihlali Sitefane.
Mine closures o en result in irreversible environmental degradation and economic hardship in mining-dependent communities. In an attempt to address this problem, Mineral Resources and
Energy Minister Gwede Mantashe published the Dra National Mine Closure Strategy 2021 (Dra Strategy) on 21 May 2021. The
Dra Strategy’s intention is to minimise and prevent the adverse long-term environmental and socio-economi c impacts related to mine closures. Its key objectives are to: ■ Manage the closure of mines in a demarcated area in an integrated manner. ■ Create post-closure economies on demarcated mine sites through collaboration between mines. ■ Ensure that mines don’t negatively impact on the livelihood of adjacent/ interconnected mines in a demarcated area. ■ Promote a strategic approach to managing water at mining and mineral processing sites. ■ Make provision for post-closure stewardship and socio-economic sustainability. The Dra Strategy envisions a Regional
Closure Strategy which will consider mine closure within a particular region, at a broader and integrated level. The Regional Closure
Strategy intends to set specific standards for all mines and to align each mine closure plan to the set standards contained in the regional mine closure plans. This would presumably be published subsequent to the Regional Closure
Strategy. The regional mine closure plans intend to include the requirements for: ■ The application for mine closure; ■ Environmental management programmes (EMPs); ■ Financial provision for rehabilitation. ■ There are four key focus areas identified in the Dra Strategy that will underpin the
implementation of the strategy as a whole: ■ Mine closure regions that are suitable for integrated development will be identified. ■ Regional collaboration between mining companies will be fostered. ■ A regional approach to mine closure will be undertaken.
The overarching focus will be to ensure the closure planning is facilitated throughout the entire mine life cycle within the respective regions.
Significantly, the Dra Strategy makes recommendations for its implementation: ■ Aligning EMPs to manage the interconnectedness of mines in an integrated and sustainable manner. ■ Aligning closure plans to achieve selfsustaining ecosystems a er closure. ■ Integrating EMPs, social and labour plans and corporate social investment objectives to reduce the duplication of e orts and to spend and aggregate available funding for coordinated regional projects. ■ Making contributions, presumably by mining right holders, towards regional mine closure funds to ensure that funds are available for post-closure monitoring. ■ Developing a mine closure policy, presumably by the minister. ■ Regularly conducting critical assessments of all applications to place mining operations under care and maintenance. ■ Establishing conditions on operations that are placed under care and maintenance, requiring that: ■ All critical mining infrastructure be kept in an operable condition or that future
resumption of operations is not sterilised through the destruction or removal of critical mining infrastructure. ■ Non-critical infrastructure and equipment be deployed, where possible, to economic diversification projects and used in the implementation of the closure plan. ■ There be adequate security to protect infrastructure and equipment to prevent illegal mining.
Although the minister is empowered in terms of section 43(10) of the Mineral and Petroleum Resources Development Act, 2002 (MPRDA) to publish the Dra Strategy, the recommendations extend beyond the scope of the strategy and are simply not contemplated in the current, applicable legislation.
For example, the National Environmental Management Act, 1998 (NEMA) and the Financial Provision Regulations do not require mining companies to contribute towards regional mine closure funds.
If the recommendations in the Dra Strategy are to be implemented, then there must be amendments to a number of laws including the MPRDA and NEMA, as well as amendments to the Financial Provision Regulations and the Environmental Impact Assessment Regulations, to name a few.
Although the Dra Strategy makes strides towards regional mine closure impacts, its biggest pitfall will be the lawful implementation of the recommendations which are not underpinned by legislative provisions.
Interested and a ected parties have until 23 July 2021 to submit written representations on the Dra Strategy. ■
Shafeeka Hartley.
RENEWABLE ENERGY Can mining become a driver?
By Shafeeka Hartley, corporate commercial executive at ENSafrica
As one of the most energy-intensive industries in the world, the mining industry in South Africa has su ered a double blow. Having been severely impacted by the continued energy shortfall and ongoing load shedding, it has also, over the years, come under increased scrutiny from climate change activists and investors.
And while the mining industry is not one that has traditionally been associated with clean, e icient, renewable and sustainable energy solutions, that is changing.
Key to this change is the deregulation of private energy generation. The changing regulatory landscape to be ushered in following the assurances in that regard given by President Cyril Ramaphosa on 10 June 2021 will be a fundamental catalyst that could unlock the full extent of the vast potential of the mining industry as an essential contributor to the development of renewable energy solutions.
As part of this deregulation, amendments to Schedule 2 of the Electricity Regulation Act will increase the National Energy Regulator of South Africa’s (NERSA) licensing threshold for embedded generation projects from 1MW to 100MW.
Although it is still unclear what the registration requirements will be for these larger projects, there have been indications in the president’s speech as to what we can expect, including compulsory registration with NERSA (notwithstanding the removal of the licence application process) and a requirement to obtain authorisation from NERSA to operate.
There is some concern as to what this alternative process will entail and whether it will be practical to achieve the desired outcome of reducing the impediments to investments in such projects and enabling business to build or co-own generation facilities to contribute towards meeting their own energy needs.
Provision has been made in the current Integrated Resources Plan, 2019, for 4 000MW of new additional capacity by 2030 which will come from, among others, distributed generation capacity for own use, which are generation facilities operated solely to supply electricity to an end-use customer within the same property as the facility (also referred to as “embedded generation”).
As such, there is a committed allocation to allow for power generation for own use and an express undertaking from government to take the necessary action to achieve energy security and reduce the impact of load shedding on business.
There is also an acknowledgement that Eskom is not capable of sustaining its favoured monopoly position as sole state power utility, generating, transmitting and distributing power and that there is a need to reduce this burden. The ability that private generators will have to wheel electricity through the transmission grid is a telling indicator of where government is heading in relation to partnering with the private sector in addressing the energy needs of the country.
Poised as we are at the precipice of what may well become a new era of alternative sources of energy supply for the country, the mining industry is in the enviable position of being one of the most critical drivers of our time. This is so for a number of reasons. storage solutions and, weather permitting, wind farm projects. It is also the mining industry that provides us with the metals and minerals required for these technologies that are essential for the transition to a green economy.
Of course the mining industry also stands to gain from this paradigm shi in alternative sources of energy, with the prospect of reduced dependence on fossil fuels minimising the impact of load shedding and volatile price fluctuations in fossil fuels on operations and profitability, improvements in energy e iciency increasing productivity and an enhanced ESG profile improving its attractiveness to all stakeholders.
The reality of a fairly regular disrupted energy supply over the years has meant that most established mining companies in South Africa had shi ed their schedules to negate the impact of load shedding. The looming changes in legislation for increased o -grid production of power has mining houses excited. What needs to be legislated for now is how to ensure that a portion of this is from renewable sources and remains so.
The mining industry has already indicated renewable energy capacity gearing up over the years, although the build limitations and licence process has been prohibitive in bringing these projects to fruition. It is hoped that the new regulations will unlock this potential, and go some way towards introducing certainty, promoting investor confidence, stimulating production and boosting the economy.
We have an opportunity to move not only towards decarbonisation but also the decentralisation of power supply, a somewhat fortuitous two-pronged solution to address both the climate change objectives of the country as well as the economic recovery and growth needed as we continue to overcome the e ects of the pandemic.
While the change may not be immediate or the e ects felt within the next six months, by the end of next year we will probably have seen the beginnings of quite a fundamental shi , initially in the way the mining industry approaches its own energy supply, but ultimately the role it will play in contributing towards the country’s energy supply. ■
We have an “ opportunity to move towards decarbonisation and the decentralisation of power supply.“ – Hartley
Most of Southern Africa is in the favourable position of having abundant access to the elements, namely sunlight and wind. Adequately harnessing these natural resources allows for organisations to positively a ect the environmental footprint of their operations. The remoteness of mining operations then becomes less of a risk in accessing sources of energy but more an opportunity to harness it.
This, coupled with the access that mining operations have to large tracts of land, positions them perfectly for accommodating larger solar PV plants, solar and battery
UPWARDS AND ONWARDS
Invincible Valves inspires women in the sector
By Nelendhre Moodley
Invincible Valves MD Pam du Plessis – a driving force behind upskilling and mentoring of women in the sector– has sought out opportunities presented by the pandemic to deliver a booming business. Armed with a revised strategy, a stronger multi-layered management team and an appetite for calculated risk, the East Randbased valve manufacturer and reseller, has in the midst of the COVID-19 doom and gloom bucked the trend to tell a really good story. Despite COVID-19 putting the brakes on its strategy of expanding its global footprint, the valve specialist has looked to new markets, including the water segment, to grow its business.
R40-million
Value of Invincible Valves stockholding
“We were reticent to enter the water segment, believing it was saturated. However last year we decided that as we already have a complementary product line, we had nothing to lose by forging a presence in the sector and supplying a competitively priced product. This has since proved to be a really good move and has resulted in the supply of valves to numerous small projects.
“But our most notable and largest endeavour to date has been a contract to supply valves on one of many current Umgeni water projects. We are also servicing the Lesotho Highlands Water Project (LHWP) phase 11,” says Du Plessis.
Invincible Valve’s product range is in demand.
Phase II of the LHWP is being implemented as two components: a water delivery system to augment the delivery of water to South Africa and a hydropower generation system to increase the current electricity generation capacity in Lesotho. The programme involves the construction of the Polihali Dam and the Transfer Tunnel in the Mokhotlong district and a hydropower scheme.
WINNING WAYS
With the tough operating environment forcing many companies to think out of the box and actively seek out opportunities, Du Plessis says to open the doors for Invincible Valves’ strategy of exponential growth in the coming years, she had to revise the company’s strategy.
“We recognised that as a cash-positive company we had the option to take on strategic risks which could, if successful, unlock huge wins in the long term. We have taken some well-thought-out risks, including the opportunity to purchase the property down the road to grow our footprint and augment our skills set with high-calibre wellexperienced people.
“We have since employed a new management team consisting of two senior managers and three junior sta members.”
Furthermore, in taking the high road to rubber-line its products in-house the company has committed to ensuring that the end user benefits from cost-e ective products delivered at a fraction of the time.
“We currently have a designated rubberlining production line on-site that operates daily which has helped in reducing lead times by four to five weeks.”
Invincible Valves plans to unlock further e iciencies by establishing a new rubberlining plant at the second property acquired late last year, which will e ectively “double
1P ball valve.
3P ball valve.
If its not INVAL, it’s not Invincible
Invincible Valves focuses on upskilling and multi-skilling its sta .
“As a cash-positive company we have the option to take on strategic risks. “ – Du Plessis
to triple current capacity” and increase stockholding. The plant is on track for commissioning by year-end.
Meanwhile, lessons learnt over the past 10 years, which include going the extra mile to supply clients with products beyond its core range, has led to Invincible Valves expanding its service o ering to that of a one-stop shop.
“Time is money and most clients prefer to deal with a person with whom they have established a strong relationship to meet their requirements. At Invincible Valves we help clients procure as many of the products they require as we possibly can.”
Interestingly, the company’s massive stockholding of some R40-million has been its saviour and its tipping point to prosperity at a time when companies were falling by the wayside as a result of the pandemic. This helped the valve supplier service its core client base during the hard lockdowns.
Given that the company is a supplier to South Africa’s key industries – mining and petrochemicals – it was able to secure an essential services certificate at the onset of the pandemic, which allowed the business to remain operational during the initially hard lockdown last year.
“Access to product has ensured that clients were well supported during this time and that vital economic activity could continue,” says Du Plessis.
SUPPORTING LOCAL
Although the valve specialist’s cross-border strategy has been put on hold for the moment, discussions are ongoing with Du Plessis taking the time to forge “watertight’ relationships.
Post-COVID, the company will look to focus on expanding its global footprint.
“Although we are pitched as a global company, we are not represented globally. However, we do have a strong presence on the African continent and agents at various key points, including in Ghana where our agent supports the mines locally and in the surrounding resource-rich countries with product.
“We fully support our agents across the continent and ensure that they are well informed about our product lines, have su icient stockholding and aid them at relevant mining events, and where necessary, we help them to establish relationships with the mining clients. Essentially, we invest vast amounts of time and money to help them succeed and be able to provide our client base with excellent service.”
MULTI-SKILLING
As an avenger of women’s rights, Du Plessis continues to be instrumental in creating a culture of mentoring women of all ages.
Further to this, the valves manufacturer has used the time of the hard lockdowns to upskill and multi-skill its sta , which has greatly benefited both the company and its employees. Some employees have used their newly acquired knowledge to springboard into new positions, including its receptionist, who has taken up a position in the administration department a er advancing her skills set.
“We took the opportunity to drive our training agenda and aside from our in-house training, we encouraged our employees to take up online courses to improve their knowledge of our product lines. The training opportunities have provided our sta with many growth opportunities. In fact, our multi-skilled employees were able to slot into various positions on the factory floor when colleagues were infected with COVID-19, which ensured a smooth continuation of business operations. Business continued seamlessly and clients were well serviced.” ■
VALVES IN DEMAND
■ With most metal prices soaring, the local mining sector has been booming and suppliers, including
Invincible Valves, continue to reap the rewards as new projects come online and shelved projects get a new lease of life. ■ The company is busy supplying products to key mining projects, such as Ivanhoe Mines’ Kamoa-
Kakula Copper Project in the
Democratic Republic of the Congo and Akyem Mining in Ghana, along with many others around the globe.
