24 minute read
Underground Mining
TRANSVAAL GOLD MINING ESTATES – REBOOTED
An Australian-based miner has big plans to remine the historic SabiePilgrim’s Rest Goldfi eld, creating jobs, uplifting local communities and rehabilitating the natural environment – all while making a tidy profi t
By Rodney Weidemann
Plans are afoot to restart the historical underground gold mines at Transvaal Gold Mining Estates (TGME) in Mpumalanga. The ownership of TGME has been taken over by Theta Gold Mines, an Australianlisted company, with plans to develop up to 40 historical gold mines in the region. On taking over the management of TGME, an extensive historical data digesting process and exploration strategy was implemented in order to understand the general ore body and extrapolate the reserves and resources within the TGME mining rights holdings. According to Jacques Du Triou, COO for
TGME, the mines were not originally fully mined due to technological limitations or limiting ore characteristics. He says the Sabie-Pilgrim’s Rest
Goldfield is the oldest gold mining district in the country. The metallogenic province occupies a strip of country some 50km wide and 110km long, parallel to what was the
Transvaal Drakensberg escarpment, and extending from Bourke’s Luck in the north to
Slaaihoek in the south.
In September 1873, Pilgrim’s Rest was o icially proclaimed a gold field, and in 1895, several small mining companies amalgamated to form Transvaal Gold Mining Estates. Gold was mined on an organised basis by TGME until 1971, and latterly from 1986 to 2015.
“TGME completed a feasibility study in July 2022, which indicated a highly robust project with a life of mine of 12.9 years, ore mined of 6.21Mt at 5.81g/t with an AISC of US$846/oz over the life of mine (LoM) of the project,” he says.
Explaining why these mines were never mined out, Du Triou says according to historical data, it’s clear that in the early days of TGME, even at high grades, the mines always remained marginal. This was mainly due to production issues, as well as having to battle pests, floods, fires and epidemics. Furthermore, they faced transport and logistics issues, especially in the vicinity of Pilgrim’s Rest and the mountains surrounding the goldfields there.
“It must be remembered that the ox wagon was the pioneer transport in this district, as in other parts of South Africa, and for many years all material and equipment were brought in by this means. During the first 35 years of mining in the district, transport was thus the greatest drawback in the development of the mines.”
HIGHLY FEASIBLE PROJECTS
“Additionally, due to the scattered nature of the company’s mines back in the day, road construction and maintenance were always major undertakings. Some of the roads serving the isolated mines high in the mountains were masterpieces of pioneering construction with pick and shovel, the only tools available at the time,” he adds.
Due to the challenges listed above contributing to very high working costs and a fairly primitive mining methodology employed by TGME back in the day, continues Du Triou, this necessitated a cuto grade of above 20g/t.
“At the current gold price, combined with the application of modern technology, many previously unpayable mining blocks can be brought into production at a cut-o grade of
■ The peak capital funding required
for the project is R1.197-billion, or
US$77-million over a life of mine of 12.9 years, with an internal rate of return of 57.6% and a real-term best-estimated value of R3.377bn or US$218.8m at a real discounted rate of 10%, gold price of US$1642/oz, and average exchange rate of 15.50 ZAR/US$.
■ The estimated nameplate
production will be 540 000 tonnes per year, at an average recovery grade of 5.18g/t, with an average planned gold recovery of 87%.
At the current gold price, combined “ with the application of modern technology, many previously unpayable mining blocks can be brought into production at a cut-o “ grade of 2.46g/t, at an average gold price of US$ 1642/oz. – Du Triou
Jacques du Triou.
2.46g/t, at an average gold price of US$ 1 642/oz.
“Thanks to the high grading of the past, most mines owned by TGME today present opportunities to restart close to the surface at pre-developed mining faces, which are highly feasible at today’s gold price, as we will be using the appropriate technology, and are not bound by the same constraints that faced historic operators.”
He says some of the previous failed attempts to revive these goldfields were due to an approach of preconceived thinking, preferences and existing infrastructure applied to the ore body. Instead, he says that an overriding principle of Theta Gold is that “the ore body dictates”.
“When the ore body dictates, it is assessed in-situ, and then appropriate, cost-e ective means to extract gold from it are sought so that the maximum possible amount can be extracted. A major driver is a determined approach to finding an operating model where, for each ore body, the mining methods fit.”
The current TGME underground project consists of four mines, out of 43 historical mines forming part of the current mining rights portfolio. These four are Beta complex, CDM, Frankfort and Rietfontein.
“Beta Mine will be the first mine to come into production, and stoping will start in month 26, 11 months a er the development commenced. The Rietfontein mine will commence in month 37, followed by Frankfort and CDM in month 115 of the start of the project,” says Du Triou.
EXECUTION AND INFRASTRUCTURE
Theta’s planned project execution date is scheduled for Q2 of 2023, depending on environmental and water-use licence approvals. Project construction includes a new gold plant, surface mine footprint infrastructure, tailings facilities preparations, integrated water management systems, and road and water crossing upgrades.
Mine development is planned for six months a er the project execution date. Once underground development commences, all on-reef development will be stockpiled for 10 months before the plant is commissioned. First gold production is therefore expected in Q2 2024.
“The plan is to use the existing mining infrastructure, with the addition of new accesses, underground development, and pre-development of the mining grids to access the planned mining areas at Beta, Frankfort and CDM,” he says.
“When mining grid development has advanced su iciently, early stoping can commence. The aim is to open up su icient ground to produce the planned stoping tonnes. At Rietfontein, the existing mine adits and underground development will be utilised with the addition of new development ends, a new decline and the extension of an existing decline.”
Du Triou notes further that a new processing plant will be constructed 2.7km from the town of Pilgrim’s Rest in Mpumalanga. Construction of the processing plant will also commence in Q2 2023, depending on the environmental and water use licence approvals.
“The processing plant has been developed in three phases, allowing for >
The current TGME underground project consists of four mines, out of “ “ 43 historical mines forming part of the current mining rights portfolio – namely Beta complex, CDM, Frankfort and Rietfontein. – Du Triou
various processing scenarios aligned with the mining development programme. The design of each phase is based on a standalone processing facility aligned with the mining plan of the ore body.”
He says phase 1 will consist of a carbonin-leach plant treating free milling ore. Phase 2 will encompass a gold concentrator plant, treating sulphide ore. Finally, phase 3 includes a 45ktpm leach-ox process plant, designed to include crushing, milling and carbon/sulphide flotation.
“Although there is some shared infrastructure and processing equipment between the phases, the phase 1 plant will be constructed first to treat CDM, Rietfontein and Beta ore, with phase 3 being constructed at a later stage, before mining of Frankfort ore commences.”
LOCAL COMMUNITIES AND JOB CREATION
A vitally important part of the project is for it to ensure the permanent employment of local people, with more than 250 expected to be hired initially. The expansion of the project during phase 2 is further expected to ensure permanent employment for more than 1 000 people.
In order to limit the negative impact of the mining operation on the area, Du Triou says the mine has a strong focus on the recruitment and development of previously disadvantaged and unemployed members of the affected communities.
“TGME will seek first to recruit from its local communities. If the requisite skills are not identified, we will then seek to recruit at the provincial or national levels. In a scenario where local skills are not present, interventions to create a local talent pool will be undertaken. Ultimately, TGME aims to recruit 70% of unskilled labour locally, and hopes to recruit 80-85% of employees from within Mpumalanga province,” he adds.
“The TGME local economic development framework guides the company in terms of its strategic objectives for creating a thriving, sustainable, and long-lasting economy beyond the life of mine. This framework comprises the following five pillars, which TGME sees as the ‘building blocks’ of local economic development in its area.” ■ Productive infrastructure which supports economic growth. ■ Empowering households, through horticulture training and infrastructure, to ensure food security and enter micro-
commercial agriculture through selling surplus produce in local markets. ■ Upskilling local businesses with powerful business tools to increase profit and prepare for expansion. Stimulating market access for sales of local goods and services. ■ Broad-based enterprise development programme for top performing businesses. ■ Tourism economy development for tourism-focused local businesses.
“In line with this framework, TGME has identified the following four local economic development projects, which will be rolled out in phases: agriculture skills and livelihood development; small business development, market access, and broad-based enterprise development; tourism economy development; and productive infrastructure.”
ESG COMMITMENTS
During the design phase of the underground gold mine operations and metallurgical plant, the company looked at initiatives that would help reduce the carbon emissions and create fewer greenhouse gases (GHG). The current amount of CO2-e per gold production has been calculated at 0.25 tCO2e/oz, says Du Triou.
“To ensure the sustainable management of natural resources the company conducted a biodiversity verification and pre-feasibility assessment to identify environmental bu er zones.
“These assessments then informed the engineering designs, to ensure that the surface infrastructure layout is limited to previously disturbed areas. A water and waste management system was also designed for the operations, which will ensure that all a ected water is contained, recycled and reused in the system.”
Moreover, an ecological compensation programme, to provide funding to contribute to the long-term security and biodiversity of the ecosystem, will focus on rehabilitating the ecological and hydrological functioning of the upper portions of the Blyde River catchment area.
“This ecological compensation programme consists of several approaches. These include invasive alien tree control and re-vegetation; fire belt implementation; and control – through regular and repeated reconnaissance and control measures – of all invasive alien trees within the riparian zone of the Blyde River. They also include implementation of erosion and sediment control operations on all areas cleared of alien invasive plant species, and the revegetation of these areas with indigenous plant species to the level of a cover of 15% within 10 years, with the objective of removing unnatural levels of sediment input into the Blyde River system.”
The organic growth strategy of the company is to produce over 160 000oz of green gold per year, says Du Triou.
The current phase 1 will bring four mines into production, and phase 2 of the plan will expand production to six mines within the next five years. During this period, the strategy will also be to increase the current 6.1 million ounce mineral resources to over 10 million ounces.
“The above will be achieved via an extensive exploratory drilling programme spanning the current mining rights portfolio. This increase in mineral resources will, naturally, increase the current life of mine exponentially,” he says.
“As the project is still in its relatively early stages, the implementation of the TGME underground project requires several environmental approvals, and needs to ensure the alignment of existing approvals with current environmental laws, in order to undertake any additional activities required for the project. The good news for us, for the people of the region, and the SA economy as a whole, is that the current approval processes are progressing well,” says Du Triou. ■
The company is committed to upli ing local communities through providing significant employment and skills development. Some of the human resource development programmes planned include:
■ Adult education and training,
aimed at providing employees and community members with the opportunity to become functionally literate and numerate.
■ Core business skills programme,
including required competencies to successfully execute specific employment responsibilities. This will also include all requirements according to legislative competencies and relevant mining regulations, as well as businessspecific technical needs.
■ Learnership and internship
programmes that lead to a qualification registered on the
National Qualification Framework (NQF), as well as on-the-job experience.
■ Bursary programmes. ■ Portable skills programmes for
employees and local community members.
■ Youth development programmes.
THE ONGOING EVOLUTION OF WORKER COMPENSATION AND BENEFITS
South Africa has a proud history of providing compensation to workers injured on duty, beginning in the late 19th century. Today, in the 21st century, such benefi ts are undergoing a continuous evolution
In 1894, three South African mining companies demonstrated incredible foresight for an era in which workers generally received short shri in respect of their needs. They created a mutual assurance company – Rand Mutual Assurance (RMA) – aimed at insuring and administering workmen’s compensation benefits. This was done in order to ensure proper care for miners injured on duty, and to take care of their families in case of a fatality. This was so far ahead of its time, the SA government only began considering implementing workmen’s compensation for other industries in the 1920s, and the o icial implementation only began some 20 years a er that. Today, RMA administers compensation for both the mining and the metals sectors, and does so with a R25-billion balance sheet, and over 1.1 million workers covered.
PREVENTION IS BETTER THAN CURE
Of course, as with any industry, RMA has had to evolve, as the industries it oversees have also changed. A good example here is RMA’s newest division, which focuses on prevention and rehabilitation. Essentially, this recognises the fact that it’s better to prevent an injury occurring than merely to compensate someone a er the fact.
Moreover, if someone is injured, RMA seeks to provide some form of rehabilitation that will ensure a better quality of life for them. In a situation where the injury prevents them from returning to their old job, rehabilitation may include reskilling them to remain productive, continue earning for their family, and regain lost dignity. Remember that any injury that occurs has a significant personal impact on the victim and their family, and a negative e ect on the employer. Serious injuries create cost impacts on a business, psychological ones on the other employees, and even potential reputational ones in the market. Of course, prevention today is made easier, thanks to the rise of digital technologies and the increasing accumulation of data by businesses. By leveraging modern artificial intelligence and data analytics solutions, RMA is able to take the vast quantities of big data garnered over the years and use this to gain greater understanding of the types of injuries that occur, how these happen, and what the biggest causes of injuries in the industry are. Understanding this allows for training to be undertaken and e orts to be made to reduce the leading types of injuries.
It is also necessary to account for the employee’s mental wellbeing – financial stress, so common today, is a leading cause of workers’ minds becoming preoccupied with personal di iculties, instead of being fully on the job. Thus RMA has instituted a major focus on the provision of financial wellness sessions. These o er workers help in understanding how to save and be more savvy with their money, assistance in consolidating debt, and even with the consolidation of their insurance policies.
REHABILITATION AND RESKILLING
By Bilal Adam Rehabilitation, which may include reskilling, is also a major focus, and aims to ensure the injured party CEO of RMA Life is able to remain a productive, meaningful part of society. At RMA’s rehabilitation facility, the injured are helped to develop an alternative skill to allow them to continue earning, despite their injury. Remember that many miners are the main breadwinners in the family, so enabling them to continue earning a salary is critical for both their family’s welfare, and for their own dignity. In some cases these new skills are vastly di erent – they could be anything from weaving baskets to small-scale farming – but they allow them to return to their community as a productive member of society. These rehabilitation e orts are built on three key pillars: Clinical, which is the aspect around dealing with the injured party; Vocational, which is related to their return to work or the reskilling they require; and Social, which focuses on their reintegration into their family and community, and helping them to regain their dignity. Another plan in the works is to leverage RMA’s Life business to provide greater help to these employees. Beyond keeping workers safe and well looked a er in the place of employment, they should also be assisted in their life outside of the work environment. In essence, the idea is to o er an end-to-end solution to cover them across all facets of their lives. Ultimately the goal is to match or exceed the levels of empathy demonstrated to workers all those years ago, when the organisation was first formed. Thanks to an ongoing evolution and focus on the welfare of its members, RMA will remain positioned to positively impact the lives of the employees, families, communities and the employers that it serves, for many decades to come. ■
EQUIPMENT COVER STORY COLUMN SAFETY EQUIPMENT WHAT MINING, MENTAL HEALTH AND MARATHONS HAVE IN COMMON
Given the dangerous environment, challenging working conditions and pressurised nature of mining work, the importance of an individual’s psychological fi tness should not be underestimated
If physical fitness encompasses the body’s ability to function optimally and without injury across a range of tasks and scenarios, psychological fitness refers to how mentally and emotionally proficient we are, particularly as it relates to our work. As an organisational development consultant who specialises in the mining sector, if I were to categorise a miner as being “psychologically fit”, this would mean that they had not only the ability, but also the energy, motivation and general chutzpah, to perform their job e ectively. Sadly, within a mining context, mental health is seldom prioritised. This is particularly concerning, given the dangerous environment, coupled with challenging working conditions and the pressurised, By Lani van der Merwe target-chasing nature of the work. Organisational Development One research paper that studied the state of Consultant at OIM Consulting mental health in miners found that the environment lent itself to mental health conditions, triggering issues such as anxiety, job stress, depression, sleep disorders, mental fatigue and more. The research results could be categorised according to four key themes: psychological problems and personal factors; psychosocial problems and healthrelated factors; well-being and physical problems; and organisational factors – with the first theme being the most prominent.
The reality is that psychological unfitness is all too prevalent in the mining sector, and there is a high level of burnout that permeates the workforce. There is a very real danger attached to this. Psychological unfitness can lead to mistakes that can cause injury or even loss of life. Addressing the challenges created by psychological unfitness requires a programme focused on giving front-line leaders and miners tools that will help them actively tackle stress and gain more meaning from their work. Just as in the case of someone who is physically unfit – which means they’ll take time and e ort to recover a er physical strain – so psychological unfitness limits our ability to perform to the best of our ability, day in and day out. These skills need to be applied every day to achieve fitness. The psychological fitness plan should also encompass a holistic approach, one that includes exercising, eating well and not abusing substances. The physical and mental are always interlinked.
Ultimately, it’s about teaching people to understand the importance of psychological fitness, and to demonstrate that achieving – and sustaining – such fitness is a marathon, not a sprint, and only constant e ort will ensure success. ■
SA
www.samining.co.za
MIN NG
READ WHAT REALLY GOES DOWN IN SADC
WHY ADVERTISE ONLINE
● ADDED VALUE/EXPOSURE TO YOUR BUSINESS VIA
ONLINE CONTENT.
● Help build/strengthen your company’s brand. ● DRIVE TRAFFIC TO YOUR COMPANY’S WEBSITE.
● Expand your reach with various packaged o erings suited to your company’s needs, such as bundling your advertising with news/corporate pro les and/or a video online.
SA Mining, South Africa’s oldest mining magazine, has been providing insight into the local, Southern African and African mining space for 125 years.
COMBINE DIGITAL WITH PRINT FOR GREAT SAVINGS!
We are now giving our readers and clients an opportunity to take their news and advertising online in real time through www.samining.co.za
Banner 728 x 90 px
Island / Medium Rectangle 300 x 250 px YOUR ADS HERE
businessmediamags.co.za/mining/sa-mining/subscribe/
www.linkedin.com/company/samining/
www.facebook.com/businessmediaMAGS/company/samining/
SCANHERE
To visit our website.
twitter.com/BMMagazines
www.instagram.com/business_media_mags/
ADVERTISING: Ilonka Moolman 011 280 3120 moolmani@samining.co.za Tshepo Monyamane +27 62 239 3538 Tshepom@samining.co.za
Thiess and AECI Australia have celebrated eight years’ lost time injury (LTI) free. This milestone was achieved while safely delivering 500 000 tonnes of bulk explosives down the hole and firing over 1.5 million detonators.
Duncan Etwell, AECI Mining Explosives MD for Australia, says a key element of the success can be attributed to the proactive relationship that has developed between Thiess and AECI Australia over eight years of collaboration.
“We are extremely proud of this eight-year LTI milestone; it is a record seldom achieved within the explosives industry. Our partnership with Thiess is one based on transparency between supplier and end user. This enables continuous improvements to our product quality, but more importantly, to the safe application of our products in the field,” says Etwell.
“Together we have implemented many innovative initiatives that have assisted us in overcoming challenges along the way. We value the openness and input from both sides of our joint operations, which enables this partnership to continue along its positive path of mutual growth and sustainability.”
AECI’s relationship with Thiess began in 2009 in Indonesia, when AECI Indonesia secured its first blasting services contract with Thiess Contractors Indonesia. This led to a joint operation partnership being established between AECI Australia (Pty) Ltd and Thiess (Pty) Ltd in Australia in 2014.
AECI Australia is committed to the supply of safe and e ective products with the objective of ensuring the safe and e icient application of its products through continuous customer support and technical training.
www.associatedequipment.co.za
Plot 92 Indaba Lane-off Beyers Naude, Rietfontein, Roodepoort, South Africa
Duncan: +27 (0) 83 626 5588 Anton: +27 (0) 82 923 5397 Jaap: +27 (0) 82 892 1327 Loraine: +27 (0) 76 021 4344 Office: +27 (0) 11 801 4911
vendels@mweb co.za associatedloraine@xnet.co.za ves@xnet.co.za
We Are Buyers For Your Good Running Redundant Equipment
2x NEW 2022 CASE 851FX 4x4 TLB’s 1x NEW 2022 CASE 851FX 4x4 TLB with 4 in 1 Bucket
2x NEW 2021 CAT 323D3 Excavators 2x NEW 2021 CAT 320D3 Excavators 1x 2018 Hitachi Zaxis 330LC Excavator 1x 2013 CAT 336D LME Excavator
1x 2018 Caterpillar 966L Front End LoaderRefurbished 1x 2007 CAT 814F Wheel Dozer-Refurbished
1x 2017 JCB 540-140 Telehandler 1x 2016 JCB 540-170 Telehandler 1x 2015 JCB 535-125 Telahandler 1x 2006 CAT TH560B Telehandler
4x NEW 2022 CASE 770FX 4x4 TLB 1x NEW 2022 CASE 770FX 4x4 TLB with 4 in 1 Bucket 1x 2011 CASE 580T 4x4 TLB
2x 2011 CAT 140K Motor Grader with RipperRefurbished 1x 2009 CAT 140K Motor Grader with RipperRefurbished 1x 2019 Caterpillar 426F2 4x4 TLB 1x 2016 Caterpillar 428F2 4x4 TLB 1x 1997 CAT 428C 4x2 TLB
1x CAT 16G Motor Grader with Ripper-Refurbished 2x CAT 140G Motor Grader with RipperRefurbished 50H + 72V Series
1x 2012 CAT 740 A.D.T 6x6 1x 2010 CAT 740 A.D.T 6x6 1x 2004 Terex TA30 A.D.T 6x6-Refurbished
1x 2009 CAT PF300C 7 Wheel P.T.R 1x 2015 BOMAG BW24R P.T.R 1x 2008 HAMM GRW15 P.T.R 1x 2019 JCB 3DX SUPER 4x4 TLB 1x 2016 JCB 3CX ECO 4x4 TLB with 4 in 1 Bucket, Extendable Boom
1x 2007 CAT 140H Motor Grader with Ripper-Refurbished 2x 2006 CAT 140H Motor Grader with Ripper-Refurbished
1x 2016 CAT AP600F Asphalt Paver (Only 854 Hours) 1x 2009 CAT AP600 Asphalt Paver 1x BITELLI BB670 Asphalt Paver-(8m Screed) 1x 2017 UD Quester CWE 330 10m3 Tipper Truck (106 380KM) 1x 2017 UD Quester CWE 330 10m3 Tipper Truck (106 700KM)
1x 1994 ETNYRE K Chip Spreader 4x4 With Variable Width-Refurbished 3x ETNYRE K Chip Spreader 4x2 1x2014 HAMM GRW18 P.T.R 1x2009 HAMM GRW18 P.T.R 1x2009 HAMM GRW24 P.T.R
TO ADVERTISE IN www.samining.co.za SAMIN NG MIN NG
READ WHAT REALLY GOES DOWN IN SADC
CONTACT
INDEX TO ADVERTISERS
Air Liquide .......................................................................................... 42 Auto X ................................................................................................. 39 BLC Plant Company ........................................................................ IBC Bosch Diesel Service ....................................................................... IFC Brelko Conveyor Products ................................................................. 44 Cenotech ............................................................................................ 40 E&T Minerals ...................................................................................... 13 Invincible Valves......................................................................... OBC; 7 Keller .................................................................................................... 3 KSB Pumps & Valves ......................................................................... 27 Komatsu Mining ................................................................................... 5 NSDV .................................................................................................. 12 Tomra Sorting Mining ......................................................................... 20 UMS .................................................................................................... 21 Vendel Equipment Sales .................................................................... 43
BRELKO NIP GUARD SAFETY DEVICE
PATENTED
NEW PRODUCT
APPLICATIONS • Nip Guards improve worker safety around head, tail, and drive pulleys and prevents worker exposure to conveyor pulley nip points and pinch point hazards.
BRELKO
CONVEYOR PRODUCTS
FEATURES • Easy installa� on. • Low maintenance. • Simple design. • Operates in all condi� ons. • Manufactured according to SABS, CEMA,
Australian and PROK moun� ng standards. • Unique adjustable guard maintains a constant gap between the conveyor belt and guard, even when the conveyor belt is tensioned. • Robust construc� on for longer life. • Can be installed on bidirec� onal conveyor belts.
