SA Mining March/April 2021 by SundayTimesZA

R15.8-billion: Ford’s local investment

£3-billion: UK injects into EV manufacturing

SA MIN NG MARCH / APRIL 2021

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Positioning for

AECI Mining Explosives MD Edwin Ludick

THE ENERGY TRANSITION

RAIL INDUSTRY SHAKE-UP DE WITTEKRANS

gears up for Q3

REALIGNED

AECI reaps the rewards

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CONTENTS MARCH / APRIL 2021

28 Gas set to be the new oil.

IN BRIEF 6

South Deep solar plant approved Transnet prioritises coal line capacity Sibanye-Stillwater enters battery metals sector

FEATURES 14

Botswana targets resource diversification Diamond-dependant Botswana is strengthening efforts to diversify its economy beyond diamonds.

Positioning for the energy transition The global shift towards cleaner fuels has been kickstarted with gas becoming the low-hanging fruit for energy generation while renewable generation capacity catches up, says In On Africa’s Ogi Williams.

De Wittekrans mine gears up Canyon Coal’s latest project, De Wittekrans, is in the starting blocks, getting ready to deliver first coal in the third quarter of this year, says Menar’s Kobus Rothmann.

COVID-19 and the mining industry Exxaro, Pan African Resources, ENSafrica and Hikvision outline the measures they have adopted to handle the pandemic.

Transnet looks to improve efficiencies.

NEWS IN NUMBERS: 18 40

£3-billion: UK injects into EV manufacturing R15.8-billion: Ford’s local investment

4 41

Out of Africa Column by Peter Major

SA MIN NG MARCH / APRIL 2021

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

Positioning for

AECI Mining Explosives MD Edwin Ludick

THE ENERGY TRANSITION

RAIL INDUSTRY SHAKE-UP DE WITTEKRANS

gears up for Q3

MARCH / APRIL 2021

REGULARS

£3-billion: UK injects into EV manufacturing

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AFRICA; ENERGY; HEALTH & SAFETY AND MATERIALS HANDLING & LOGISTICS

Rail industry shake-up President Cyril Ramaphosa recently promised an overhaul of the rail sector with the introduction of new entrants. Is Transnet ready for some competition?

R15.8-billion: Ford’s local investment SA MINING

PAR at the forefront of protecting its people.

COVER STORY: PAGE 10

AECI realigns Explosives manufacturer AECI’s Project Realign is ensuring business wellbeing and recently scored the company massive savings, says MD Edwin Ludick.

REALIGNED

AECI reaps the rewards

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FROM THE EDITOR

MAKING THE RIGHT MOVES

EDITOR

Nelendhre Moodley

ONLINE EDITOR

t’s a year since South Africa’s first recorded COVID-19 case, and although the country has made the right moves in trying to contain the pandemic through strict lockdown measures, the death toll nevertheless tops over 50 000. At this point in time, the infection rate has reduced dramatically. Lockdown has eased to level 1. And miners, especially precious metals miners, have struck it lucky – posting some sterling results and boosting the economy in the process. In his 2021 Budget Speech, SA’s Finance Minister Tito Mboweni flagged the revenue windfall in the latter part of 2020, which he said was “brought about by increased corporate income tax receipts from mining companies coming off the back of improved commodity prices”. Aside from posting record cash flows, the likes of Harmony Gold, Sibanye-Stillwater and DRDGOLD have put a smile on shareholders’ dials by declaring dividends. Along with that dollop of good fortune, miners have committed to reinvesting in project expansion. Precious metals miner SibanyeStillwater is injecting a whopping R6.8-billion in high-return platinum group metals and gold projects. The company gave the green light for the development of the K4 and Klipfontein projects. In addition, the miner recently secured entry into the battery metals sector through an investment into Keliber, a leading European lithium company. Lithium is viewed as a key metal to benefit from the massive growth forecast for the electric vehicle market. For our Energy feature, SA Mining chatted to Canyon Coal, which is developing its De Wittekrans coal project. The greenfield coal project, located near the Arnot and Hendrina power stations, will deliver first coal in the third quarter of this year (pg 22). For greater insight into the world’s energy transition we caught up with In On Africa’s Ogi Williams, who flags the global shift towards cleaner fuels and gas, which is being seen as the lowhanging fruit for energy generation as renewable generation plays catch up. “As environmental policies on CO2 emissions tighten across the world, gas power generation is set to increase.” (pg 18) And speaking of investing and reinvesting, South Africa finds itself in a Catch 22 situation – pinning

its hopes on trying to net significantly more than the measly 1% of global exploration expenditure it currently obtains on the one hand, but clearly unable, at government level, to process the mining applications and address transparency issues, which is a deterrent to investors. The backlog for applications for prospecting rights stands at a staggering 2 485. Without exploration and prospecting rights, there is little opportunity to attract investment to progress projects and thereby unlock greater commodities production or job creation.

AFRICA AND BEYOND

Our cover story, AECI, a home-grown explosives manufacturer that is rapidly expanding its presence in global markets, says the African market remains its key revenue source. In a bid to keep its business strong and sustainable, AECI undertook, prior to the onset of the pandemic, what it called Project Realign, which focused on reducing costs. In the process and despite COVID-19, the company achieved savings in excess of R200-million (pg 10). Meanwhile, stateowned entity Transnet, which is set to face some serious competition with the introduction of new players into the market, is also looking at ways to grow its trade, especially given that commodities account for some 80% of TFR business. In fact, business growth contemplation is going as far as considerations to establish a direct link to China, says CE Portia Derby (pg 34). And while local companies are looking to conquer the world, global companies such as pressuresensing specialist Keller are looking to grow their Southern African footprint. Although the company has delivered on a few projects on the continent, its presence in Southern Africa is minimal (pg 15).

R6.8-billion

Amount SibanyeStillwater is investing to develop PGM and gold projects

SA MINING

SA MIN NG

MARCH / APRIL 2021

HEALTH AND SAFETY

For the Health and Safety feature, law firm ENSafrica’s team of experts weigh in and provide insights on the topic of mines and vaccines – the next step (pg 32). Further to this, companies including Exxaro Resources (pg 26), Pan African Resources (pg 28) and Hikvision (pg 30) have also showcased their efforts to contain the pandemic, flagging the means and methods used to keep their people safe. ■

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Nelendhre Moodley Tel: 011 280 5782 Email: moodleyne@samining.co.za Stacey Visser Tel: 011 280 3671 Email: vissers@businessmediamags.co.za

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OUT OF AFRICA ANGOLA

CÔTE D’IVOIRE

LSE-listed Pensana Rare Earths reports high-grade rare earths in soils from the first sampling programmes completed at its 7 500km2 Coola Project in Angola. Assay results received from soil sampling over the Coola carbonatite identify a high tenor soil anomaly up to 4.69% rare earths oxides (REO) extending over a 1.3km x 1.4km area. The highest REO values lie over the 3.2km perimeter of the carbonatite ring structure and are coincident with an outcropping circular carbonatite dyke. The company plans to drill-test these defined targets in 2021. According to CEO Dave Hammond, the positive results are sufficiently well-defined for drill testing. “Drilling will also determine if rare earth mineralised carbonatite lies beneath the soil cover in the central part of the 1km-diameter volcanic pipe.”

Exploration and development company Kodal Minerals recently received positive results from surface geochemical sampling completed at the Dabakala Concession, Côte d’Ivoire, in December 2020. Highlights include: ■ High-grade gold geochemical samples up to 6.14g/t gold returned for the surface at Dabakala Concession. ■ Extensive surface gold anomalism defined in the east of the concession extending for over 10km of strike. ■ Gold anomalous zone confirmed in multiple phases of sampling and geological reconnaissance identifies geological and structural controls on the gold mineralisation. Bernard Aylward, CEO of Kodal Minerals, said: “The exploration is currently at an early stage with sampling completed on a wide spacing in an under-explored region of Côte d’Ivoire.”

BURKINA FASO TSX-listed Orezone Gold has secured binding commitments totalling in excess of $182-million to fully finance the construction of its shovel-ready Bomboré Gold Project in Burkina Faso, West Africa. CEO Patrick Downey said the debt package was structured to provide maximum flexibility for the company to complete future expansions, including the staged Phase II Sulphide Expansion. “Bomboré hosts a very large measured and inferred resource at shallow depths, has exciting exploration potential, and is open to further enhancement opportunities. We are now ready to ramp up construction activities at Bomboré with first gold pour scheduled for Q3-2022.”

CÔTE D’IVOIRE MALI African Gold Group has successfully completed Phases 3A and 4A of its drilling programme at the Kobada Gold Project in southern Mali aimed at upgrading the oxide resources in the inferred category to indicated and measured (Phase 4A), and to initially prove mineralisation at the neighbouring Gosso shear zone (Phase 3A). According to CEO Danny Callow, the results are extremely encouraging for significant near-term resource upside potential. “We believe that 2021 will be a transformational year for AGG, and while this is still early days in the evolution of understanding the full Kobada potential, our short-term target remains to hit one million ounces of mineable reserves as soon as possible.”

SA MINING

MARCH / APRIL 2021

Gold miner Mako Gold has procured a second drill rig at the Napié site and commenced a 52-hole 5 200m reverse circulation (RC) programme on the Gogbala Prospect on the company’s flagship Napié Project located in Côte d’Ivoire. The drill programme follows on the previous success from wide-spaced holes drilled in 2018 and early 2019, where 16 of 24 holes intersected significant gold results over five gram-metres, including seven holes with intercepts over 10 gram-metres. Further to this, the company has advised that the 1 500m RC drill programme on the Tchaga East Prospect is nearing completion, with 13 of the 16 planned holes drilled. Local geologists were logging the RC chips and samples ahead of it being sent to the lab for assaying.

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IN BRIEF

SOUTH DEEP SOLAR PLANT APPROVED

The National Energy Regulator of South Africa (NERSA) recently approved JSE-listed Gold Fields’ electricity generation licence for the construction of a 40MW solar power plant at its South Deep mine. The solar plant has the potential to provide around 20% of South Deep’s average electricity consumption. Nick Holland, Gold Fields’ CEO, said: “The approval of this licence sends a strong, positive message to mining companies and their investors, potentially leading to decisions being taken to sustain and grow mining operations in the country, especially in deep-level, underground, marginal mines. “The solar power plant will increase the reliability and affordability of power supply to South Deep, ultimately enhancing the long-term sustainability of the mine.”

TEDDY DAKA ZUTARI’S NEW CO-CEO Engineering consultant Zutari has appointed previous Aurecon Group chair Teddy Daka as co-CEO with current CEO Dr Gustav Rohde. This follows Zutari’s successful launch last year after demerging from the global Aurecon group and a recent decision to re-enter the Middle East market. The strategic development is critical to address the shifting market conditions faced by consulting engineers and to ensure the transformation of the business in responding to these challenges, according to Zutari chair Dr Lulu Gwagwa.

TRANSNET PRIORITISES

CAPACITY ON COAL LINE State-owned entity Transnet is prioritising measures to improve locomotive availability and stabilise capacity on the coal line in order to support coal exporters and the economy. The company is also implementing catch-up plans to build the resilience necessary to deliver the committed 1.6 million tonnes per week compared to the current 1.3 million tonnes, Transnet said. Some of the measures being implemented include: ■ Fast-tracking maintenance of locomotives where feasible; this as a result of the age of the locomotives and the availability of spares. ■ Reallocation of suitable locomotives throughout the business to match capacity with current demand while not jeopardising the performance of the other corridors. ■ Implementation of robust integrated security management plans – vandalisation of the locomotives remains a challenge. As a result, locomotive availability is expected to improve over the coming weeks to 18 locomotive sets.

SAICE WELCOMES NEW INDUSTRY BODY The South African Institution of Civil Engineering (SAICE) has welcomed the establishment of the newly formed construction industry umbrella body, Construction Alliance South Africa (CASA). Vishaal Lutchman, SAICE CEO, said, “We … look forward to playing an active role in creating a united voice in our quest to lead the post-COVID recovery of the industry as well as tackling a number of longstanding issues such as transformation of the sector, corruption and unethical business practices.”

Precious metals miner Sibanye-Stillwater has entered into the battery metals sector through a partnership with and investment into Keliber, a leading European lithium company. The advanced Keliber Lithium Project is located in the Kaustinen region of Finland, a significant lithium-bearing area in Europe. Keliber currently has 9.3 million tonnes of ore reserves, sufficient for more than 13 years of operation. Planned annual production is 15 000 tonnes of battery-grade lithium hydroxide. Production is anticipated to start in 2024. Sibanye-Stillwater will make an initial phased equity investment of €30-million, for an approximate 30% equity shareholding into Keliber. A further €10m equity issuance will simultaneously be offered to the existing Keliber shareholders, on the same terms as Sibanye-Stillwater’s €30m investment, the company said.

SA MINING

MARCH / APRIL 2021

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SIBANYE-STILLWATER ENTERS BATTERY METALS SECTOR

If its not INVAL, it’s not Invincible

AFRICA

COVER STORY

REALIGNED

AECI REAPS THE REWARDS By Nelendhre Moodley

enjamin Franklin, one of the founding fathers of the United States, said, “If you fail to plan, you are planning to fail.” This adage holds true for many businesses and situations; and a forward-thinking strategy has often helped firms sail over ruinous hurdles. The COVID-19 pandemic has been one such hurdle that has seen a number of businesses fold. However, for the Mining Division of the South African listed AECI Group, AECI Mining Explosives, which in 2018 initiated its Project Realign to ensure business well-being, the move has proved to be well timed and propitious. “Years ago we anticipated that the local market would be facing some pressures and decided that the AECI Mining Explosives business needed to be realigned to cope with the impending pressures. One of the key focus areas was to ensure that our cost structures were correct to withstand the projected challenges. “We undertook Project Realign to ensure growth and a business that could thrive well into the future. In fact, these measures initiated prior to the onset of COVID-19 have helped us to more than adequately forebear the pandemic,” AECI Mining Explosives MD Edwin Ludick tells SA Mining in an exclusive interview. The implementation of Project Realign has seen AECI Mining Explosives overshoot its target of a R200-million savings last year. Looking ahead, the company will continue to implement identified cost-saving measures, says Ludick.

SA MINING

MARCH / APRIL 2021

+ R200-million

Savings realised by AECI Mining Explosives following implementation of Project Realign AFRICAN STRATEGY

On the back of strong commodity prices, South African and African economies have been boosted, adding to state coffers and aiding mines to reinvest in greater exploration spend. Over the recent past, local commodities producers, and gold and PGM miners in particular, have delivered some sterling results, with many reinvesting to expand and grow their business. Further to this, the Department of Mineral Resources and Energy’s Gwede Mantashe and the Minerals Council South Africa are targeting a larger slice of the global exploration spend. In fact, the sector is

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eyeing ways to garner up to 5% or $500m of the global spend in the next few years. For the South African listed explosives company this is an assurance of a strong and sustainable mining project pipeline going forward. For AECI Mining Explosives, who has been leading the explosives industry since 1896 when gold was discovered in Johannesburg, this is important for its key growth market – Africa. Although the company has over the years focused on product development to keep at the cutting edge of the explosives business and geographical expansion, > moving beyond the continent to grow the

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AFRICA

COVER STORY

VERTICAL DROP SYSTEM Our formulations have the capability to be transferred safely, efficiently and cost-effectively to record-breaking depths.

“

Edwin Ludick with the team at the Modderfontein Factory.

We are in the process of making big strides towards digitisation and digitalisation. – Ludick future technological advancements such as battery metals. Interestingly, an increasing number of African governments, including those of Botswana and Angola, are rolling out geological mapping programmes to identify new areas of mineral opportunities. AECI Mining Explosives’ strong datasourcing strategy, which includes attending key events like the Africa Down Under conference and keenly following the progress of new mining projects and tracking the progress of emerging miners, ensures that it is able to keep track of all new projects as they are rolled out. “Attending such events and touching base with mining houses ensures that we are able to make contact with the relevant projects early on and thus provide our expertise from both the mining chemical and explosives segments of the business.”

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The well-established surface and underground explosives specialist invests heavily on research and development (R&D) which guarantees that it remains at the forefront of a highly competitive business segment. “We are in the process of making big strides towards digitisation and digitalisation of most of our activities both in the back-end (automation and AI) and front-end, like smart trucks and triangulation of blast positions with DGPS

AECI Mining Exco Team.

SA MINING

MARCH / APRIL 2021

“

business in Australia, Indonesia and South America, among others, Africa remains a key contributor to revenue. “Our roots are in Africa and we see growth in Africa as still very relevant to our strategy. We will continue to help mining houses mine safely and cost-effectively in all the African territories in which we operate,” says Ludick. AECI Mining Explosives already has a strong and well-established presence in all key mining destinations in Africa, including Zambia, Zimbabwe, Botswana and the Democratic Republic of the Congo. Their African growth strategy is premised on the hub and spoke methodology which effectively relies on establishing a presence in a strategic location and then growing the business by supplying product into neighbouring areas. “We prefer to manufacture locally in the identified country and employ local people. In this way we are able to support rural communities through job creation and growth opportunities.” And while Africa is considered to be a mature mining market, constant exploration in the region will continue to unlock new opportunities, including those aligned to

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(Differential Global Positioning System) to support mine managers with hands-on information, optimal blast performance and the best quality product,” explains Ludick. Their drive to identify solutions to the explosives-related challenges that clients face has seen the explosives manufacturer develop the world’s deepest emulsion vertical drop system – a massive game changer for the global mining industry. “With mines focused on improving safety and driving down costs, the vertical drop system has garnered great interest from mines across the world (Europe, South America and Australia) as well as locally in Africa.” Recently, Non-Ferrous China Africa (NFCA), which is busy with an expansion project on its Chambishi mine in Zambia, opted to install AECI Mining Explosives’ emulsion vertical delivery system (EVDS) as part of its aim to develop a cost-effective mining operation. The system delivered both the emulsion and sensitiser at depths of up to 980m directly to a storage facility underground. According to NFCA, the key benefits it has realised include improved safety; seamless inventory control; reduced interface with explosives; optimised ordering, delivery and charging units refilling; reduced maintenance, fuel and asset wear; and reduced risk of theft. Other gains include reduced time and labour resources. In another recent development, the explosives manufacturer launched a significantly enhanced version of its bulk emulsion explosives – dubbed Powergel X2 – a product that is suitable for extreme blasting conditions. Powergel X2 is designed for surface mining applications where extreme blasting conditions such as hot blast holes and reactive ground, or a combination of both, exist. “Minerals will always be needed and used and mining will always be a part of this process, which means that we will be here to partner with our customers in providing them with the best advice and technology,” says Ludick. ■

AFRICA

BOTSWANA

TARGETS RESOURCE DIVERSIFICATION

By Nelendhre Moodley

“

Botswana is putting in place infrastructure to facilitate coal export.

“

years. “Over-dependence on diamonds has now more than ever made it an imperative for us to urgently expand our revenue base to other minerals such as coal and base metals,” Botswana President Mokgweetsi Masisi recently told delegates at the virtual 2021 Investing in African Mining Indaba. In a bid to expand its resource base and attract potential investors, the government of Botswana is increasing efforts to digitise and make geoscience information available to prospectors and non-diamond mineral miners. “My government is undertaking an assessment of mafic, ultramafic and granitic complexes to map and identify mineral occurrences to promote mineral prospecting in Botswana and the subsequent mining of these minerals,” Masisi said. Aside from identifying projects suitable for exploration, Botswana was creating an enabling environment and putting in place strategies for mineral beneficiation which included base metals refineries. In particular, Masisi flagged cement-grade calcite and lime stone deposits, extensive

iamond-dependant Botswana is strengthening efforts to diversify its economy beyond diamonds, given that diamond demand has been somewhat volatile in recent

Botswana is reviewing its mines and minerals policy to expedite growth of the minerals sector. – Masisi coal reserves and new copper opportunities in the Ghanzi region. In a bid to drive local and international interest and investment in its coal sector, Botswana recently developed a coal roadmap which identified eight potential options on its 212 billion tonnes of coal

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reserves which remain largely unexploited. “I must underscore that the roadmap promotes sustainable coal mining through the use of clean technology, as we seek to mitigate the effects of climate change. These options are classified based on their overall attractiveness with chrome exports, power >

SA MINING

MARCH / APRIL 2021

AFRICA

“ Botswana is developing routes to the seaborne markets and putting in place the necessary infrastructure to facilitate coal export.

“

– Masisi.

exports, followed by coal-bed methane, and cement production.” Meanwhile, in an effort to develop routes to the seaborne markets and put in place

the necessary infrastructure to facilitate coal export, Botswana has been collaborating closely with neighbours. In line with expanding diamond

Diamond cutting and polishing.

SA MINING

MARCH / APRIL 2021

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processing beyond just cutting and polishing, Botswana was looking at introducing alternatives and additional diamond supply avenues. “This will provide impetus for secondary rough diamond trading, polished trading, space to support diamond business incubation and other diamond support services.” Furthermore, plans were at an advanced stage for the development of the Botswana multi commodity exchange for the trading of various commodities. These measures are expected to provide “unlimited opportunities for investment in the minerals sector in Botswana”. The Botswana government was also reviewing its mines and minerals policy to guide development and expedite growth of the minerals sector. “The policy aims to maximise economic benefits and facilitate private sector involvement. “It will also positively contribute to the review of our mining legislation taking into account current developments and emerging issues to ensure that our mining laws are in line with international best practice and attractive to potential investors. “The current review of the mines and minerals act, the precious and semi-precious stones act and the diamond cutting and polishing act is a clear demonstration of our resolve to promote the minerals industry.” ■

KELLER EYES NEW MARKETS Targets Southern Africa By Nelendhre Moodley Automation centre.

ressure-sensing specialist KELLER, founded in 1974, is looking to establish a firm footing in the Southern African market, CEO of KELLER Netherlands, Belgium and South Africa, Martijn Smit, tells SA Mining. While the company has delivered on a few projects on the continent, its presence in Southern Africa is minimal. As such, the company is eyeing Africa as its next significant growth node. “The Southern African market is important. We believe this market has a lot of potential as KELLER is a globally strong market player in industries such as mining (dewatering and hydraulic pressure sensors for trucks and machinery), tank contents and water (level and loss) measurements,” explains Smit, who has been tasked to establish a presence in Southern Africa. However, KELLER’s expansion plans, which were scheduled to be rolled out last year, were hampered by the onset of the COVID-19 pandemic. “Our expansion drive has been delayed by a year now due to COVID-19. Importantly, this delay has prevented me from travelling to South Africa to gain a better understanding of market opportunities and to put in place a suitable market strategy.” Meanwhile, the recent emergence of the new, more transmissible coronavirus variant, known as N501, has seen many countries placing travel bans on South Africa. Aside from travel restrictions, the pandemic has severely disrupted important industry events, such as exhibitions. Every year, KELLER AG presents its products at leading trade fairs for sensor systems and measurement technology all over the world. With these great lead-generating

opportunities taken away, KELLER has opted to generate leads by focusing on developing personal contacts, including those with Instrotech, in the hope of gaining insight on new projects being rolled out and ultimately increasing its turnover. The company is also relying heavily on its media presence (offline and online) to help target new areas, clientele and projects. “The plan is first to expand the awareness of the KELLER brand through editorials and advertising. This is being done together with our representative, Instrotech, in Johannesburg.

PRESSURE SENSOR A pressure sensor is a device for pressure measurement of gases or liquids.

Martijn Smit.

readout through a cloud portal. KELLER’s products are manufactured at our facilities in Switzerland to ensure that product quality is to the highest standard possible.” The company manufactures and sells more than 1.2 million pressure-measuring cells every year.

GROWING KELLER’S SOUTHERN AFRICAN FOOTPRINT

“In particular, we are highlighting KELLER’s specialist capabilities as an important manufacturer of high-quality but affordable pressure and level sensors and our focus on new technologies like wireless

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According to Smit, KELLER has over the past decade supplied its products, including its pressure sensors, to a number of projects in Africa. “One of these was a big project where our digital level sensors monitored the gasoil stock for electricity generators at cellphone hubs. Another project worth mentioning is the pilot project we started last year in Kololo Game Reserve, near Vaalwater, in the Limpopo province, where we wirelessly monitor the stock of drinking water. “Kololo is located in a rural area and although it is connected to the electricity > network, the network is known to fail now

SA MINING

MARCH / APRIL 2021

AFRICA

1.2 million

The number of pressuremeasuring cells that KELLER manufactures and sells every year and then so a diesel electricity generator is on standby.” Discussing Kololo’s water system, Smit explains that it consists of three stages: a water well, eight accumulating tanks, and distribution of the water to the various sites, including the lodges and restaurant. Kololo’s main water source is a well that goes to a depth of 100m. Measuring the level of water in the well is important as it helps to predict the stock of water. KELLER’s installed level measurement system provides the client with data related to fluid levels, and data history which can be used for insight into consumption and/or malfunctioning. Access to this information can lead to great savings or prevention of unnecessary repairs and non-revenue problems. “While this is not a big project, it does illustrate the potential of new technologies as a significant cost saver. In fact, the exact

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same technology can be applied to any fluid measurement – wine tanks, non-revenue water (water loss), as well as applications in dewatering mines.” According to Smit, pressure sensors are important as they can also signal theft. “An unusual decrease of a tank level might indicate leakage or theft. The incorporation

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AFRITIN CONCLUDES TANTALUM OFFTAKE AGREEMENT ceiling of $23 000 per tonne for the first time since 2014. The main drivers behind the price increase are the ever-growing demand from electronics and electric vehicles, alongside the low supply of tin inventories.”

African tin mining company AfriTin Mining with its flagship asset, the Uis Tin Mine in Namibia, has inked a new offtake agreement for its tin concentrate with its existing trading partner, Thailand Smelting and Refining Corporation (Thaisarco). The miner also signed an inaugural offtake agreement with AfriMet Resources AG (AfriMet) for its future tantalum production. The tin concentrate offtake agreement has been renewed for a further three years and the offtake agreement with AfriMet for a 12-month period with an option to renew for a further three years. CEO Anthony Viljoen said: “The strong performance at Uis has coincided with the tin price hitting new recent highs, breaking through the

LYCOPODIUM AWARDED EPCM CONTRACT FOR BOMBORÉ GOLD

LICENCE RENEWAL PAVES WAY FOR KAROWE’S UNDERGROUND EXPANSION Diamond miner Lucara Diamonds recently received approval for the renewal of Mining Licence No 2008/6L in respect of its AK06 (Karowe) Mine. The renewal marked a critical step in the formal sanction of the Karowe underground expansion project, the company said. The company is exploring debt financing options for the underground expansion and anticipates financing to be in place by the second half of this year. The underground expansion programme has an estimated capital cost of $514-million and a five-year period of development, with first ore anticipated from underground in 2026.

In advancing its 90%-owned Bomboré Gold Project towards project construction, TSX-listed Orezone Gold has awarded the engineering, procurement, and construction management (EPCM) contract to Lycopodium Minerals. It’s also completed the Phase I Resettlement Action Plan of all villages and infrastructure and is undertaking a tender process for the mining contract. The company plans to award the open-pit mining contract in early 2021 to allow for contractor mobilisation, site establishment, and commencement of pre-production mining by the end of Q1-2021. Further to this, Orezone is evaluating potential bids for a Build-Own-Operate power plant contract which is scheduled for Q1-2021 and is also negotiating project financing for the major portion of the project construction budget. CEO Patrick Downey said, “Awarding the EPCM contract to Lycopodium is a key step to ensure the continued successful development and construction of the Bomboré project. We are looking forward to starting construction on our path to becoming the next significant gold producer in Burkina Faso with first gold scheduled for early Q3-2022.”

www.samining.co.za

SA MINING

MARCH / APRIL 2021

ENERGY

POSITIONING FOR THE ENERGY TRANSITION Increasing E&P in gas and strengthening the mineral supply chain By Ogi Williams – Associate Director, In On Africa

“ Gas-power generation is set to increase driven by strong demand from regions such as the Asia-Pacific, China and India. – Williams

“

GAS SET TO BE THE NEW OIL …

The technological developments in shale oil and gas brought online cheap sources of supply, with producers springing up across key regions of the United States in aid of weaning off Middle Eastern oil. Russia for its part also moved to aggressively tap into its hydrocarbon resources and raced up the global supply ladder to become the largest producer alongside Saudi Arabia.

espite the setbacks incurred off the back of the COVID-19 pandemic, the trajectory for African participation in the global energy transition was already set in motion in prior years. New technology and developments in shale oil exploration and production (E&P) caught up with demand in mid-2014 and sent the oil price crashing from record highs of $120 per barrel to less than $40 within a matter of months. The crash kick-started the global shift towards cleaner fuels with gas becoming the low-hanging fruit for energy generation while renewable generation capacity catches up. In parallel, new battery storage technology developments and the impetus to switch to electric vehicles (EVs) is further driving demand for key minerals such as cobalt, copper, graphite and lithium. Though economic and other activity has been stifled over the course of 2020, pulling the oil price down to new lows, the outlook for new developments in gas E&P and further mining exploration surrounding battery minerals looks positive. Markets such as Gabon and Tanzania are aligning policies accordingly in catering for new developments, while others such as Algeria, Mozambique and South Africa move towards tapping into undeveloped resources. Activity during 2021 will be somewhat subdued as the world returns to some sense of normality, however positioning to capture on future opportunities to participate in the energy transition will be key during this time.

SA MINING

MARCH / APRIL 2021

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The culmination of developments has plagued the ability to stimulate interest in new oil E&P given oversupply with focus gradually shifting towards extracting further value from existing fields rather than looking for new developments. This has been evident in mature oil producers such as Angola, Equatorial Guinea and Gabon. Additionally, as environmental policies on CO2 emissions tighten across the world, gaspower generation is set to increase driven by strong demand from regions such as the Asia-Pacific, with China and India being the key drivers of consumption given strong policy support for a transition to gas. Dominant suppliers in the Middle East including Saudi Arabia and Qatar as well as outsider Russia have all moved towards increasing supply to cater accordingly, but await the uptick in global demand and economic growth before committing to too many new projects. Not to be left behind, African markets have begun to position with a sizable number of projects including liquefaction plants, transport terminals and gas treatment plants >

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expected to come online leading up to 2025. The Rovuma basin along Africa’s east coast is the big talking point when it comes to E&P activity with Mozambique and Tanzania pushing to become key exporters on the global market. Ghana and Nigeria are moving towards increasing gas-power generation through increased transportation capacity and new power plants. Though not a traditional player in the space, South Africa too has made a stronger push towards making gas a key component of the country’s energy security policy, which has received a significant bump through considerable offshore discoveries made by Total in 2020. The imperative to move away from coal-fired power generation will be further boosted by the find and could offer considerable opportunity for the country to transition towards gas in a shorter timeframe.

… AND EV DEMAND WILL CONTINUE TO GROW AT A PACE

African markets are positioning for the energy transition.

The UK has started an ambitious plan to wean the country off combustion engines entirely by 2030 through some £3-billion going into developing EV manufacturing capacity. If the trajectory stays as it is, the International Energy Agency forecasts some 2.5 million barrels per day to be displaced by 2030, the first critical year of reduced emissions targets set by the Paris Agreement. The main constricting obstacle to achieving this milestone is the removal of infrastructure bottlenecks in the supply of battery minerals. This can and needs to be achieved by ensuring the current and potential sources of supply are financed as quickly as possible in getting projects off the ground. On the commodity side graphite will be the top demand mineral given its low bankability risk when it comes to mining projects – the Molo Graphite Project in Madagascar received nearly $30-million in financial backing and is expected to become operational in less than 12 months. The launch of a number of new flagship models by global automakers is also set to prop up demand for cobalt and copper going

In parallel to E&P activity in gas and moving towards gas-fired power generation as Segways to greater energy efficiency, the global EV market will continue to see growth stimulated by increased uptake due to government subsidies and support in key markets in Europe as well as the US and China. EV sales in 2020 remained buoyant, reaching record highs of 3.4 million with US-based automaker Tesla alone reporting nearly 500 000 cars sold – sales in China stood at 1.8 million for the year.

SA MINING

MARCH / APRIL 2021

UK’s injection for developing EV manufacturing capacity

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into 2021. Prices for the two minerals are expected to strengthen over the course of the year as demand from China rises, with the imperative set to be highest on strengthening the supply chain from key supply markets such as the Democratic Republic of the Congo and Zambia in order to move the price to a range of greater bankability for new projects. An added positive factor is the impending roll-out of 5G technology which is also expected to drive the price and outlook for cobalt up given that it’s a critical component in the manufacturing of lithium-ion batteries.

TO CAPTURE OPPORTUNITIES, STRENGTHENING MINERAL AND HYDROCARBON POLICY IS KEY

The global energy transition will continue to drive developments in both power generation and transportation. As many countries still lack the resources to swiftly move away from fossil fuels such as coal and oil, converting existing infrastructure towards gas-powered generation proves a viable middle ground in the medium term. Emerging markets in Asia will be the main drivers of the growth, however even other developing markets in Africa will move towards doing so sooner than later. The picture in global EV demand is set to move in parallel to this, with markets adopting policies aimed at stimulating additional uptake and building the necessary infrastructure to cater for it. Here, African markets who play a pivotal role in the mineral supply chain need to strengthen policies accordingly as their counterparts in the oil and gas E&P space have done. Prominent examples of the latter over recent years include Kenya, Gabon, Tanzania and Uganda, who have all overhauled their hydrocarbon policies to ensure that they position for maximum beneficiation and participation. ■

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ENERGY

DE WITTEKRANS MINE GEARS UP Targets coal delivery in Q3 By Nelendhre Moodley

t a time when new investment in coal mining is seemingly suspended in inaction, coal exploration and mining company Canyon Coal’s latest project, De Wittekrans, is in the starting blocks, getting ready to deliver first coal in the third quarter of this year. Kobus Rothmann, Menar Group project manager, tells SA Mining about it in an exclusive interview. De Wittekrans is a greenfield coal project located south of Hendrina in Mpumalanga. The area is home to two large power stations – Arnot and Hendrina – operated by power utility Eskom. “De Wittekrans is important since Canyon Coal requires a constant stream of new projects to replace other operating mines that have or will come to the end of their life. Two mines (Singani and Hakhano) were mined out in 2019 and need to be replaced in order to fully utilise the related investments the company has made in securing sidings and export allocations,” says Rothmann. Aside from being a key project for Canyon Coal, De Wittekrans offers much value to the Mpumalanga area, which has an extremely high unemployment rate, as it is set to provide much-needed employment opportunities to the communities surrounding the project. De Wittekrans is scheduled to employ 320 people, including contractors. According to Rothmann, where possible all labour will be sourced locally and trained, in most cases, by service providers and equipment suppliers. “De Wittekrans will play an important role in the economy as it is set to supply reasonably priced coal to nearby Eskom power stations and generate substantial foreign exchange for the country through export opportunities,” says Rothmann.

SA MINING

MARCH / APRIL 2021

Canyon Coal’s Bekezela project.

R1.6-billion

Capex for the development of De Wittekrans PROJECT DEVELOPMENT

During 2020, the De Wittekrans project received its mining right, water-use licence and environmental authorisation, signalling the green light for project development. “The project has all the statutory approvals in place and is in the final design phase. Some of the processes to bring utilities to site are also under way, as is the sourcing and preparation for the establishment of the washing plant,” says Rothmann. De Wittekrans will be developed initially as an opencast mine (Phase 1), with an economically minable reserve of 14.3 million tonnes of run of mine (RoM), while Phase 2 will comprise underground operations and host 106.5 million RoM tonnes. According to Rothmann, the opencast operation will start mining at a depth of 17m extending to 160m below surface for the underground operation. The project is set to produce 5 700kcal primary product with a 4 800kcal secondary

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product, over its estimated life of mine (LoM) of around 25 years. The LoM is based on an RoM production of about 300 000t/m. The start-up capital expenditure for the estimated R1.6-billion project is around R730m, which consists largely of capex for development of the opencast operations and associated infrastructure – this will be funded from Canyon Coal’s own resources. But the project, which is well placed between two key power stations in Mpumalanga, is yet to ink an offtake agreement with the local power producer. “Canyon Coal does not currently supply any coal to Eskom. There are, however, plans to supply Eskom in the future from new projects.” De Wittekrans is one of the new projects Canyon Coal has planned for this year. “The project’s locality makes it suitable for export and Eskom supply. Although tenders have been submitted to supply Eskom, this has not been finalised,” says Rothmann.

“ Mining investment company Menar has controlling stakes in Canyon Coal, Zululand Anthracite Colliery, Kangra, and East Manganese.

De Wittekrans will supply coal to Eskom and generate substantial foreign exchange through export opportunities. – Rothmann

“

MENAR

Canyon Coal currently produces 2.57 million saleable tonnes, with about 70% of the coal destined for the export market. The miner’s operations and projects are located in Mpumalanga and Gauteng. Besides Khanye Colliery, its flagship opencast mine located in Bronkhorstspruit, with a remaining life of mine of 14 years, Canyon Coal also mines the opencast Phalanndwa Colliery located east of Delmas, Mpumalanga, and the Ukufisa Colliery in

For

CANYON COAL OPERATIONS

Springs, Gauteng, which has a life of mine of five years. With the De Wittekrans project set firmly in its sight of production later this year, Canyon Coal also plans to start at least two

more coal mines that together will produce 9.6 million RoM tonnes per annum, says Rothmann. The miner employs 287 people directly with 476 people working as contractors. ■

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ENERGY

GLOBAL GAMECHANGE SOLAR ENTERS AFRICAN MARKET AFROX INVESTS IN NEW SPECIALITY GASES PLANT Gases and welding products producer Afrox recently completed a new made-to-order speciality gases plant. This was in response to rising market demand for complex gas mixtures, the company said. The complex gases produced at the new gravimetric filling plant will be Afrox’s main source of all made-to-order gas mixtures, supplying customers throughout South Africa and its neighbouring countries. The new automated facility in Germiston allows for up to 16 fixed-line input components, which can be increased by introducing premixed components on separate filling rigs for oxidant and flammable/toxic mixtures. The mechanised facility allows for the blending of highaccuracy multiple-part gas mixtures, with a blending tolerance of 2-5% and an analytical uncertainty of 0.5-2%, depending on the concentrations of components required and the varying levels of certification needed. Tony Flude, project manager at Afrox, said the need for an improved, automated facility arose as customer needs evolved and the demand for complex gas mixtures increased. These had previously been processed at Afrox’s Special Gases manual gravimetric filling plant. The original plant’s ability to produce complex mixtures within acceptable lead times and within acceptable tolerances had become a challenge and some gas mixtures had to be imported to meet customer requirements. “The new facility is capable of producing many of the multipart mixtures that were previously imported,” said Flude. He said local complex gas production not only improved lead times but was also safer, due to the risks involved in importing hazardous and volatile gases.

SA MINING

MARCH / APRIL 2021

Global firm GameChange Solar recently made its first foray into the Southern African market, headed by regional manager (Southern Africa) Russ Bowden in Johannesburg. A supplier of single-axis trackers and fixed-tilt solutions, GameChange Solar had a significant reservoir of knowledge around renewable energy, the company said. Derick Botha, chief commercial officer at GameChange Solar, said: “I am thrilled to be able to offer my ‘home’ market a product that we believe will significantly impact the renewable energy procurement programmes running in the region and one that offers cutting-edge technology with low installation and maintenance costs. This makes the solution a cost-effective one.” According to Bowden, entry into the region comes at an opportune time given government’s revived drive for renewable energy procurement, both in the current Risk Mitigation Independent Power Producer Procurement Programme (RMIPPPP) and the expected launch of round five of the Renewable Energy Independent Power Producer Procurement Programme (REIPPPP). “These projects provide the ability to fast-track new energy generation and pave the way for increased energy security to mitigate the impact of load shedding, a major inhibitor of the country’s economic growth.” He added that GameChange Solar was currently holding discussions with South African partners to manufacture its product locally. “We believe that we are in a strong position to meet the local content requirements of both the Risk Mitigation Independent Power Producer Procurement Programme (RMIPPPP) and future rounds of the REIPPPP at pricing that remains competitive.”

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THE MINING INDUSTRY Finding new ways to work in challenging conditions By Mongezi Veti – Executive Head:

Sustainability at Exxaro Resources

efore COVID-19, South Africa’s mining industry was already working hard to overcome challenges like rising costs, falling productivity and uncertainty over regulations. In March 2020, President Cyril Ramaphosa announced a nationwide shutdown to help stop the spread of the virus and save lives. After lockdown restrictions were gradually eased and operations were allowed to continue, South Africa came to face the new year with a second wave of the pandemic and more uncertainty. Only this time, the mining industry has used the lessons it learnt during the first wave to help ensure business continuity and operational resilience. In most cases, with strong leadership and cross-company collaboration, we’ve found that mining companies have put in place excellent health and safety measures to monitor and mitigate the spread of the virus and ensure employee well-being. The impact that this will have on supporting long-term economic recovery is immense and the fact that we have so quickly found new ways to work will go a long way to protecting livelihoods.

THE IMPORTANCE OF MINING IN A DIFFICULT ECONOMY

As well as disrupting production, the virus has wreaked havoc with global supply chains due to factory closures and halted transportation across borders. The restricted movement of people and the closure of nonessential services has also affected demand

SA MINING

MARCH / APRIL 2021

for commodities, creating the perfect conditions for economic contraction. Labour markets and the sectors that rely on them have been particularly susceptible to disruption caused by the pandemic. For a mineral-rich country like South Africa, which employs 420 000 miners and generates roughly 8% of its GDP from the mining sector, a successful recovery of mining operations is not only crucial for achieving economic stability but also for the income of the employees and host communities that depend on its activities.

R1-billion p/d

Estimated loss to the economy when mines could not operate In South Africa, one mining job can support seven to 10 dependants. The prosperity of indirect economies, such as shops, restaurants or hotels in mining towns, are also deeply connected to the welfare of the mining industry. Many mining companies offer vital goods and services to remote regions and the people who live there. It’s estimated that almost R1-billion a day was lost to the economy when mines could not operate, making the success of the industry critical to all South Africans.

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Mongezi Veti.

ADAPTING TO CHANGE

This knowledge of how critical the sector is to the country and the people who live in it has galvanised the industry to come together and find ways to work in challenging conditions. The enclosed spaces in underground mines are much less than ideal for containing the spread of the virus. On top of that, the average age of the industry’s workforce is over 40, making employees much more vulnerable to serious health complications. Although the deck appeared to be stacked against us, the industry leveraged on its experience in dealing with health and safety to safeguard employees. The mining industry’s history with managing tuberculosis and HIV and responding to crises quickly and efficiently helped us mitigate the effects of this pandemic. Considerable investments have been made in health infrastructure in the past few years, which has made contact tracing easier. The speed at which health and safety protocols were implemented under government guidelines was impressive. This included commissioning testing

“ The pandemic has proven the industry’s resilience and willingness to adapt to unprecedented challenges. – Veti

“

facilities, providing personal protective equipment to all employees and members of the community, establishing good hygiene practices, providing health facilities, reduced shift sizes, making flu vaccines available, conducting temperature screenings, updating business processes, establishing a contact-tracing system, creating awareness campaigns and enhancing employee assistance programmes. Through the Minerals Council South Africa (MCSA), mining companies have leveraged off each other’s strengths by aligning on recovery efforts. As an example, around 10% of the national mining workforce are foreign nationals and MCSA facilitated the screening, transportation and quarantining of these employees returning across borders after last year’s lockdown. Many mining companies donated to the Solidarity Fund and assisted government

with access to testing and health facilities. Collaboration has also been key to recovery in international mining communities, with the World Economic Forum citing shared values and commitments as the cornerstone of the mining sector’s success. The COVID-19 death rate of mine workers is far lower for similar age groups in the country as a whole, although we do acknowledge that one death is too many.

THE FUTURE OF MINING

While it may take some time for the global demand in commodities to recover, the mining sector should be on a slow, but steady, track to recovery. Despite decreased demand in 2020 and the costs incurred by South African mining companies to keep workers safe, market cap increased by 52% and revenue grew by 4%. Chinese demand is on the rise as they ramp up infrastructure spending, with vaccine roll-outs expected to spur economic recovery. There is also a paradigm shift in the making: the global pandemic has prompted more mining companies to look into how

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they have approached environment, social and corporate governance criteria. As the real impact of climate change becomes more apparent, companies of the future are looking to diversify into clean energy and more sustainable practices. Stakeholders and investors are pushing for sustainable energy solutions, pointing towards a greener future for the mining industry. The vulnerabilities that the pandemic has exposed in the labour market could also mean accelerated development of digital transformation, which would improve efficiencies and increase safety at mining sites. For companies that undervalued the importance of stakeholder communities, this crisis has shown that communities are key to supporting mining initiatives. If anything, the pandemic has proven the industry’s resilience and willingness to adapt to unprecedented challenges. It has showcased the commitment of mining companies to their employees and communities, and reminded us of what we can achieve through collaboration and innovation. n

SA MINING

MARCH / APRIL 2021

HEALTH & SAFETY

PROTECTING PEOPLE Pan African Resources at the forefront

ining houses have been some of the most proactive in handling the COVID-19 pandemic, going the extra mile to ensure that its people remain safe. SA Mining recently caught up with Pan African Resources CEO Cobus Loots to chat about the impact of the pandemic on the sector and measures being implemented to address the situation.

HOW HAS THE COVID-19 PANDEMIC AFFECTED THE MINING SECTOR?

The pandemic has highlighted a new set of challenges in terms of the vulnerability of the mining sector to new communicable diseases. During the initial phases of the pandemic, and due to the unknown effects of the virus, we had to work quickly to adapt and ensure the safety of our employees. New safety protocols and standard operating procedures have become the norm and continue to be enforced and adapted as the new virus strains become evident.

WHAT NEW MEASURES HAVE MINING COMPANIES INSTITUTED?

Strict safety protocols have been introduced and are firmly in place. This includes temperature monitoring at key access points and regular disinfecting of surfaces, including underground areas. The provision of face masks and other personal protective equipment, as well as education and information campaigns that reinforce safety messages either through flyers and/or safety videos, have also been developed. These campaigns will carry on into the future as mining companies continue their ongoing pursuit of a zeroharm workplace environment.

SA MINING

MARCH / APRIL 2021

Cobus Loots.

New safety protocols have become the norm.

WHAT HAVE BEEN THE COST IMPLICATIONS OF COVID-19 FOR PAR? During the early stages of the pandemic, just over R15-million was spent on COVID-19 prevention, community assistance and relief programmes. The costs are ongoing as prevention and mitigation standards are enforced and maintained.

ARE THERE ANY POSITIVES TO COME OUT OF THE PANDEMIC?

HOW HAS THE PANDEMIC IMPACTED BUSINESS AND HAS IT INFLUENCED STRATEGY?

The main impact on business has been continuous monitoring of employees and isolation of individuals with symptoms, as well as contact tracing. Quarantine facilities and stand-by medical staff are also made available on-site or at accredited healthcare facilities. Pan African Resources helped our host communities with food parcels and water deliveries to assist with sanitation and lockdown measures, so that community members did not have to leave their homes unnecessarily.

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The mining sector has showcased its ability to adapt and maintain production during adversity, and to also have consistently high pandemic recovery rates as published by the Minerals Council South Africa. Also, the good health and the predominantly young workforce in the country have stood mine employees in good stead against the pandemic. Companies including Pan African Resources have provided health supplements and immune boosters as added precautions and assistance to employees. The sector has shown resilience and its ability to handle communicable diseases, having previously dealt with the HIV/ Aids virus and tuberculosis, and the high reported recovery rates for COVID-19 are evidence of continued resilience. ■

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SECURITY INDUSTRY TRENDS IN 2021

By Andrew Mu, product manager of Hikvision South Africa

espite a highly unusual 2020, the security industry’s constant transformation has not stopped. Several significant shifts in the use of technology are even accelerating – for example the increasing of multi-perception technologies, the convergence of security systems, the popularity of artificial intelligence, and the rise of cloud solutions. Below are key trends that may affect the security industry in both the short and long term.

INTELLIGENT VIDEO TECHNOLOGY HELPING DURING THE PANDEMIC

In the face of the COVID-19 pandemic, businesses are prioritising finding ways to resume operations safely. Intelligent video technology has shown great potential to help companies keep their employees and customers safe while getting back to work. Powered by AI, security cameras monitor densely populated locations to ensure employees follow vital safety precautions – including social distancing, mask wearing and flow control – and provide initial temperature screenings. Employees are avoiding unnecessary physical contact with shared hardware in this tense era, accelerating the touchless access control system trend we have seen in the market. Numerous modes of touchless

“

verification – face recognition, palmprint recognition, NFC and QR codes – are being heavily promoted.

MULTI-DIMENSIONAL PERCEPTION

For a long time, capturing visual images was the core and only perception capability for video security systems. But with the development and application of sensing technologies, more powerful edge computing and intelligent algorithms, integrated security devices and systems that employ multiple sensors are becoming possible. Now, more perception capabilities, such as radar detection, multispectral imagery, humidity and temperature measurement, and gas pressure detection, are being integrated with video cameras and systems.

5G’s greater bandwidth and lower latency makes the regular transmission of high-quality images possible. – Mu

“

SA MINING

MARCH / APRIL 2021

www.samining.co.za

VISIBILITY – ANY TIME, ANY CONDITION

Nowadays, low light imaging technology that provides colourful images in dark environments and at night is becoming popular in the security industry, and customers have shown a preference towards cameras with colour imaging 24/7. More front-end cameras are now equipped with low light imaging technology to make sure they can “see” and reproduce image colour both day and night. Furthermore, industry professionals are tending to choose thermal imaging that measures heat – or thermal radiation – to generate images from their field of view.

5G TECHNOLOGY FOR UHD AND WIRELESS VIDEO SECURITY

5G’s greater bandwidth and lower latency makes the regular transmission of high-quality images possible, and, with the widespread adoption of ultra-highdefinition (UHD) cameras, could bring new opportunities for video security. In the forthcoming 5G networks, wireless cameras will proliferate, and more edge

“

devices will be connected in remote locations. This will also facilitate wide and fast deployment of AI applications in edge devices.

“

Several security manufacturers have launched programmes to keep their edge devices open to third-party AI applications. – Mu

Conventional camera.

CONVERGENCE OF MULTIPLE SECURITY SYSTEMS

We operate in an industry where users expect comprehensive solutions. The concept of systems working seamlessly together has long been desired by the vast majority of security professionals. The benefits of converging multiple security systems – including video, access control, alarm, fire prevention and emergency management – into a unified platform are manifold, with efficiency and cost-effectiveness the most obvious.

DIGITAL TRANSFORMATION OF ENTERPRISES ENABLED BY VIDEO SECURITY SYSTEMS

Aside from security and protection, the added value video security systems offer has expanded to assist enterprise-level businesses in their digital transformation process and gain insights into development opportunities. Empowered by AI analytics, today’s smart video security solutions are designed to improve automation and operational efficiency in various vertical markets.

ACCELERATED CLOUD-BASED SECURITY SOLUTIONS

Cloud-based security systems – which bring together security, networking, storage, analytics and management – are making deployment much easier since there is no need for local servers and software. This saves a significant amount of time and costs, while extending or reducing their security systems.

Colour camera.

INCREASED EDGE COMPUTING TO PUT AI EVERYWHERE

Increasingly powerful edge computing has become available for security cameras now, and we continually see more intelligent algorithms finding wider applications. This makes us believe edge computing stands a good chance of “putting AI everywhere”. Automatic number plate recognition, automated event alert, people counting, heat mapping, illegal parking detection, and hard hat detection, as well as a number of other AI applications, are becoming popular in the security market.

OPEN AI APPLICATION ECOSYSTEMS

With AI applications finding use in many new fields, market requirements for AI algorithms are becoming more diversified and the

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demand for customisation is also increasing. Several security manufacturers have launched programmes to keep their edge devices open to third-party AI applications. This brings a greater variety of intelligent functionality, while development partners also benefit from the openness.

EMPHASIS ON CYBERSECURITY AND DATA PRIVACY

Protecting security devices and systems from cyberattacks and establishing data privacy are more important issues than ever. Cybersecurity will continue to be a concern for the industry throughout every step of data processing, from generation, transmission, and storage, to data applications and finally deletion. n

SA MINING

MARCH / APRIL 2021

COLUMN ENS AFRICA

MINES AND VACCINES

THE NEXT STEP

SA MINING

MARCH / APRIL 2021

Management of the COVID-19 outbreak require that employers apply, among others, a hazard identification and risk assessment based process, as envisaged in section 11 of the MHSA. These Guidelines and Codes are living documents, and mines already have protocols, standards and procedures to mitigate and manage COVID-19, as well as facilities and electronic databases. These resources can play an important role in the vaccination of employees and even dependents. Mining companies are in a very strong position to help with the vaccine rollout. Section 5 of the MHSA deals with the obligation of the employer to provide and maintain a healthy and safe working environment, as far as is reasonably practicable. In addition, section 50 provides wide powers to inspectors of mines, and this can be followed by a section S54 Instruction and a section 55 Compliance Order. It is therefore important for employers to review and update their COVID-19 Codes (for instance by providing for the vaccine roll-out programme, as soon as it is prudent to do so), and ensure compliance therewith to prevent such instructions or orders being given by inspectors of mines. Can employers impose a mandatory vaccination policy? This is a nuanced issue. It is necessary to strike a balance between the rights protected by the Constitution – bodily integrity, religious rights, opinions – with the employer’s duty to safeguard safety in the workplace. There is probably no one-size-fitsall approach, with different approaches being required for different categories of employees and different employers. It might, for example, be reasonable to require those employees who are actually involved in the provision of healthcare to be vaccinated. The test might be this – is the vaccine intrinsically linked to the performance of the employee’s duties? The employer should also, in the situation where an employee objects to vaccination on religious, medical or similar grounds, try to accommodate the employee. The failure of a policy to reflect the above considerations, and/or the implementation of the policy, through for example a dismissal, could potentially lead to a claim based on an allegation of unfair discrimination and/ or a claim based on an allegation of an automatically unfair dismissal. ■

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Altair Richards, Corporate Commercial

Balindile Shezi, Employment

Ntsiki Adonisi-Kgame, Natural Resources and Environment

Pieter Colyn, Mine and Occupational Health and Safety

Willem le Roux, Mine and Occupational Health and Safety

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

e’re at a time when difficult questions are being asked about the rights and duties of employers regarding COVID-19 vaccines. Are employers obliged to provide vaccines to their employees? Can employers force their employees to be vaccinated? The South African government has said it will be the sole procurer of COVID-19 vaccines, although there will be co-operation with key role players such as medical schemes, pharmaceutical companies and mines. The goal is to achieve so-called herd immunity, and one million doses of the AstraZeneca vaccine have already arrived (the roll-out has since been suspended). Moreover, 20 million Pfizer doses have been secured, although the intense cooling requirement for this vaccine may prove difficult. Johnson & Johnson, meanwhile, has reached an agreement with Aspen, which will allow for a certain measure of local packaging and preparing of vials, although no vaccine manufacture. Is there a legal obligation on companies to provide vaccines to their employees? Some news reports have claimed that companies have no legal obligation to provide vaccines for their employees. This however is inaccurate, as the answer depends on the law and the facts. If the employer is allowed to purchase the vaccine or is allowed to administer the vaccine, there may be an obligation on the employer to do so. The law that is relevant in this regard is primarily the Mine Health and Safety Act 1996 (MHSA), which imposes various duties on mines such as assessing risk, conducting hygiene measurements, ensuring that medical surveillance is done, and taking reasonable care of employees. These duties are set out in sections 11, 12, 13 and 22. The Constitution is also relevant, with section 24 providing that everyone has the right to a safe environment and bodily integrity (this is mirrored in section 22 of the MHSA). The facts, however, will vary from case to case. In some cases, employees may potentially have the right to vaccines, for example, employees who are old or those who have underlying conditions. The Guidelines issued by the Chief Inspector of Mines of the Department of Mineral Resources and Energy and the Codes of Practice prepared and implemented by mining companies on the Mitigation and

By ENSafrica Executive Team:

MATERIALS HANDLING & LOGISTICS

RAIL INDUSTRY SHAKE-UP Transnet looks to improve efﬁciencies By Nelendhre Moodley

resident Cyril Ramaphosa recently promised an overhaul of the rail sector with the introduction of new entrants. Is state-owned entity Transnet ready for some competition? “In the South African Economic Reconstruction and Recovery Plan, the president indicated that there is going to be an increase in the number of public players in our system. We are getting ready for whatever competition might present itself,” Transnet Group CE Portia Derby told delegates attending the ENSafrica virtual event. In readying itself for new competition and to grow the business, the entity recently identified strategies to ensure a more efficient and streamlined business – this included relocating its executive team. “Transnet Freight Rail (TFR) executives are no longer headquartered in Johannesburg, but relocated across the operations to ensure improved decision making. There is now a greater delegation of authority appointed to all the individuals,” said Derby.

SA MINING

MARCH / APRIL 2021

TFR’S STRATEGY FOR COMMODITIES

The commodities sector is an important one for Transnet, accounting for “about 80% of Transnet’s revenue mix”. The key contributing sectors are automotive (2%), mineral mining and chrome (9%), fuel and chemicals (9%), manganese (11%), export iron ore (11%), export coal (20%) and containers (17%). Given the importance of commodities

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to Transnet Freight Rail, the entity, which is working to ensure that it moves product as efficiently as possible, will invest substantially in rail networks over the next few years. “If we fix the networks we will be close to using the current installed capacity of around 250mtpa in the system,” said Derby. Speaking of the improvements being

“

China remains the world’s manufacturing hub and we believe that the time is right to establish a direct link between the two areas. –Derby

Transnet looks to increase its rail capacity.

made around various commodities, Derby noted that with the coal cliff expected by 2030, Transnet was investigating ways of improving efficiencies on its coal export channel that would enable it to meet the 81mtpa capacity. In terms of iron ore, Transnet planned to bump up rail capacity from the current 60mtpa on the Sishen-Saldanha system to

67mtpa. The additional 7mtpa allocation is earmarked for emerging industry players. “With regard to manganese, we have made a decision to migrate manganese out of Port Elizabeth to Ngqura. The plan is to increase our exports from Saldanha, but first we need the Department of Transport to approve this decision.” Talks with the department were already under way.

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Further to this, Transnet planned to optimise the Richards Bay and Maputo routes and ports to progress chrome- and magnetite-related efficiencies. The entity also remained focused on exploring avenues to improve its automotive sector performance, and was in talks with Ford Motor Company, which was looking to use the Port Elizabeth port for vehicle export. >

SA MINING

MARCH / APRIL 2021

AFRICA MATERIALS HANDLING COVER & LOGISTICS STORY

“A lot of work is under way to ensure that we increase the rail capacity so that we are able to move both manganese as well as vehicles,” said Derby.

PORT PROPOSALS

“

Competition in the port space remains robust – this has seen South Africa’s position as a premier gateway into Africa somewhat eroded. “A few years ago we were the biggest container port on the continent. We are now number three. In fact, over the past three years, 30% of additional capacity has been installed in sub-Saharan Africa,” Derby told delegates. To respond to this threat Transnet was looking to implement a number of measures including establishing Durban as a hub port and launching a direct link between South Africa and China. Durban’s port has a capacity of 2.9 million TEUs (two-foot equivalent units) and is Transnet’s biggest container port. Plans are afoot to increase its capacity beyond 2.9 million TEUs. Establishing Durban as a hub port will ensure that South Africa becomes more efficient and better placed in meeting global standards. Speaking of the opportunity to establish

Transnet is getting ready for whatever competition might present itself. –Derby a direct link to China, Derby said: “We think this is an important consideration given that China remains the world’s manufacturing hub, and we believe that the time is right to establish a direct link between the two areas. “Going forward, we are looking to implement an old strategy which will see the Port of Ngqura become a transhipment hub linking routes directly between South Africa and China.”

Such a move would give South Africa a competitive edge as it would pave the way for “additional manufacturing capacity to come to our shores”. “A proper transhipment hub at Ngqura will also allow us to establish ourselves as a server for the [Southern African Development Community] market as well as allow us to run smaller vessels from our ports like Durban,” said Derby. n

“

The commodities sector accounts for about 80% of Transnet’s revenue mix. – Derby

SA MINING

MARCH / APRIL 2021

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MATERIALS HANDLING & LOGISTICS

VOLVO TRUCKS LAUNCHES FOUR NEW RANGES

CATERPILLAR AND THOROUGHTEC SIMULATION INK AGREEMENT Caterpillar Mining and ThoroughTec Simulation recently concluded a global cooperation agreement that will bring the latest-generation simulator-based equipment training solutions to Caterpillar customers. This will help them improve safety, boost productivity, increase machine availability and create more sustainable mining operations, the company says. Under the agreement, Caterpillar Mining will recommend ThoroughTec Simulation as its approved supplier of mining equipment simulators. In turn, Caterpillar will provide ThoroughTec Simulation exclusive access to confidential Cat machine technical data and engineering expertise – enabling ThoroughTec to continue strengthening its capabilities as a leading global supplier of advanced mining equipment simulators. ThoroughTec Simulation has been designing advanced, high-fidelity training simulators for almost 25 years, during which time the company has grown into one of the world’s leading training technology organisations.

Volvo Trucks South Africa recently introduced four new truck ranges to the local market, with a strong focus on the driver environment, safety and productivity. The launch of the four new-generation extra-heavy commercial trucks – the Volvo FH, FH16, FM and FMX – is the biggest in the company’s history, Volvo says. “Our aim is to be our customers’ ultimate business partner and to help them attract the best drivers in an increasingly competitive market,” says Marcus Hörberg, vice-president of Volvo Group Southern Africa. All the new models are locally assembled at the company’s plant in Durban, KwaZulu-Natal. For this purpose, Volvo Trucks invested more than R2-million in the upgrade tooling and equipment in its plant. It also invested in the installation of innovative IT equipment and technology, which allowed Volvo Trucks’ global experts to remotely support the South African team. This ensured that the company’s highest levels of manufacturing standards and quality assurance are still implemented despite the challenges caused by COVID-19 lockdown measures.

BELL BEEFS UP EXCAVATOR RANGE Bell Equipment, distributor of Kobelco Excavators in Southern Africa, has introduced the new 10th-generation Kobelco SK220XD to its range. This bolsters the region’s 20-tonne class with a heavy-duty machine that is both highly productive and economical in all aspects, the company says. “The SK220XD-10 is loaded with features not usually found in 20t machines; features that make this model well matched to Africa’s toughest mining and construction sites,” says Bell Equipment marketing and alliance partner manager Stephen McNeill. “The SK220XD-10 has a rated power output of 118kW at 2 000rpm and a maximum torque of 592Nm at 1 600rpm. Like the current SK210 and SK260, it is fitted with a four-cylinder Toyota Hino engine, which has performed exceptionally well in our construction, mining, and forestry industries. Bell has sold around 150 Kobelco machines with this engine since 2017.” Kobelco continues to focus on hydraulic efficiency as the key to achieving maximum power output and lowest fuel consumption on its excavators. Reducing friction in the system means less energy is wasted and more work gets done with less fuel used, Bell Equipment says.

SA MINING

MARCH / APRIL 2021

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MATERIALS HANDLING & LOGISTICS

FORD MOTOR COMPANY INVESTS R15.8BN IN LOCAL MANUFACTURING Motor manufacturer Ford Motor Company recently invested $1.05-billion (R15.8bn) in its South African manufacturing operations – marking the biggest investment in Ford’s 97-year history in South Africa. “This investment will further modernise our South African operations, helping them to play an even more important role in the turnaround and growth of our global automotive operations, as well as our strategic alliance with Volkswagen,” said Dianne Craig, president, Ford’s International Markets Group. “Ranger is one of our highest-volume, most successful global vehicles. This investment will equip our team with the tools and facilities to deliver the best Ford Ranger ever, in higher numbers and with superior quality.” The annual installed capacity at the Silverton plant will increase to 200 000 vehicles from 168 000, supporting production of the all-new Ford Ranger pickup truck for the domestic market and export to over 100 global markets. The plant will also manufacture

Ford Silverton assembly plant.

Volkswagen pickup trucks as part of the Ford-VW strategic alliance. The expanded production will help create 1 200 incremental Ford jobs in South Africa, increasing the local

workforce to 5 500 employees, and adding an estimated 10 000 new jobs across Ford’s local supplier network, bringing the total to 60 000.

COLUMN

MINING WITH THE MAJOR

Town February mining indabas. No pressing the nvesting in Africa Mining Indaba 2021, flesh, no gate-crashing functions, no comparing scheduled for 1-4 February, one of the Cape notes and tidbits of information and contacts Town International Convention Centre’s gleaned over drinks, snacks (and sometimes largest and most notable annual events, was entertainment). cancelled this year due to COVID-19. And the poor press and media who all In its place was the Africa Mining Indaba these years have played the most important Virtual event on 2 and 3 February (4 too if and useful role of nearly any participant and you were part of the Investec-sponsored PGM organiser (even sponsors). How could they Roundtable of producers, manufacturers keep the headlines rolling and exciting, and recyclers and users). Since the first Investing in lure even those who have no connection or Africa Mining Indaba was held 27 years ago in interest in mining in Africa to rush for the Cape Town, the annual, highly successful event newspapers and publications and scramble has grown hugely in stature and size – from to turn on the television and radio to see what 400 official and paid attendees, sponsors and morsel of good news the indaba could bring to presenters in 1994 to over 8 000 in recent years. Peter Major SA this year? This is a premium attraction event Mergence Corporate All of these indabas are run by dedicated for the African mining industry and related Solutions Director: Mining professionals who bring enormous good and organisations – and most certainly for the city camaraderie to Cape Town and the country this time every of Cape Town. year. Quite possibly no other commercial or industrial event in But this year it was not to be. Instead, despite Africa Mining South Africa focuses so much on, and causes government, from Indaba Virtual’s best attempts and even with President Cyril the president down through the ministers and MPs, to think more Ramaphosa and Anglo American’s Mark Cutifani featuring as deeply and reflect on, what they are saying and doing for the opening day speakers and 6 000 “virtual” delegates, it just wasn’t industry, let alone the country and its people. and never could be anywhere close to the same Indaba we have What other industry event creates a better platform for grown to love and anticipate these past three decades. government to display to the world its general understanding That said, how successful was it? Who knows? Who can and appreciation for its tell? By what measure embattled mining industry? can success be measured As the COVID Panic and deaths subsided – so did gold’s allure. Ramaphosa and Mining or claimed? And did the Minister Gwede Mantashe virtual competing Mines Gold @ oz inversely related to COVID-19? 2050 2050 were the biggest organisers and Money and 121 Mining and creators of the major Investment two-day indaba, 1900 1900 mining unions in South that has previously run 1800 1800 Africa. They, the two of simultaneously it in the 1700 1700 them, have done more to upper part of Cape Town’s 1600 1600 shape South Africa’s current lovely Welgemeend for the 1500 1500 mining and mining labour past five years, pinching 1460 1460 environment than anyone many of the bigger indaba’s 2019 2020 2021 else in the country. So it is loyal attendees and beyond imperative that both sponsors, have the same Seems Resources and the Big IT Companies are 2 industries that of them are able to attend competing affect? “thrive’’ under a worldwide pandemic. in the flesh, meet investors No. Not this year, JSE resource index in $ and industry players face to because it also couldn’t 2850 2850 2500 2500 face, and atone for what they be held live Nor could the 2250 2250 2000 2000 have done to mining and previously “always held the 1750 1750 its former employees and weekend before” Arabella/ 1500 1500 employers. Standard Bank Mining 1250 1250 And what they can and Indaba take its normal 1000 1000 intend to do for the South 900 900 share of the early-to-arrive 800 800 African mining environment larger indaba’s delegates. 2014 2015 2016 2017 2018 2019 2020 going forward. And what about the -----AJ000/USDZAR (2594.12743) From irregular and always entertaining constantly increasing (sometimes comical) and electricity costs, to occasionally disruptive constantly evolving (negatively unfortunately) ever-changing and Alternative Mining Indaba? Which for the past 13 years, which off-putting mineral, employment and financial legislation and makes its presence felt through media and the traditional march policies, to explaining and shaping a future that can harm or help on (but thankfully no storming of) the main indaba being held South Africa’s growing unemployment and economic malaise. at the Convention Centre? They too were forced to go the virtual Virtual indabas are not here to stay. They just can’t do what convention mode this February. needs to be done. Especially not in South Africa. We need the real So yes, no “schmoozing and boozing” (as the various media face-to-face indabas more than ever. All of them! ■ so delightfully like to headline) this year at the various Cape

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SA MINING

MARCH / APRIL 2021

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

VIRTUAL MINING INDABA 2021

MAKING MINES WORK

LEMAITRE’S MAXECO BOOT CELEBRATES 30 YEARS Safety footwear producer Lemaitre celebrates 30 years of its iconic Maxeco boot since the brand was introduced to South Africa in 1990. Maxeco is the first ever locally produced direct injection dual-density PU sole on a safety footwear style, says Lemaitre. From humble beginnings, the Maxeco boot has become a key safety footwear product in the country. It ushered in the era of dual-density safety footwear, and is still among the most popular style of sole in the safety footwear industry today, says the company. Lemaitre’s new campaign celebrates the widespread effect of 30 years and millions of pairs of Maxeco serving South Africans. It’s created jobs through local sourcing and manufacturing and has contributed to an inclusive economy for all South Africans. And it has been on the front lines of the nation’s industries, protecting those who are strengthening South Africa, says Lemaitre.

SAIW AWARDS TWO INTERNATIONAL WELDING BURSARIES The South African Institute of Welding (SAIW) recently announced the winners of its internationally recognised welding student training bursaries worth R120 000 each. Fhumulani Netshakhuma (22) and Palesa Mokoena (28) were each awarded the prized bursaries which provide a 28-week welding training course carrying both global recognition and access to opportunities for a welding career in 58 countries around the globe. The course follows international guideline used across 58 countries and covers two weeks of theory, together with practical welding modules. The winning candidates will exit the course as highly skilled welders with opportunities to diversify into welding inspection, welding coordination or non-destructive testing, SAIW says.

MINES RESCUE SERVICES TESTS WORLD-FIRST TECHNOLOGY Gold Fields’ South Deep Mine has been part of the testing of a new mobile rescue winder ‒ developed by the non-profit Mines Rescue Services (MRS) in collaboration with the Minerals Council South Africa, the Department of Mineral Resources and Energy (DMRE) and labour ‒ at South Deep’s Twin Shaft. The mobile rescue winder, a world-first technology, will allow proto teams to access shafts and carry out rescue operations at depths of 3 000m if required. It can carry up to six people at a time,

as well as equipment and medical supplies. Previously, rescue winders could reach depths of 1 200m. Mannas Fourie, CEO of Mines Rescue Services, says: “Eight out of the 10 deepest mines in the world are located in South Africa. Once the mobile rescue winder has been fully licensed by the DMRE, we will be able to access employees located at depths of up to 3 000m faster than we were able to before in the event of an emergency.”

Mannas Fourie, CEO of Mines Rescue Services, and Martin Preece of Gold Fields with the mobile rescue winder at Twin Shaft.

SA MINING

MARCH / APRIL 2021

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S T R ATA M S • C O • Z A

SA Mining March/April 2021

Articles inside

COVID-19 and the mining industry

Rail industry shake-up

De Wittekrans mine gears up

Positioning for the energy transition