inside mining july 2016

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NIGEL GOLD MINE Mining every last bit BISIE TIN PROJECT Welcome to the jungle AFRICAN UPDATES ON THE GROUND AND UNDERGROUND www.miningne. ws ATLAS COPCO Smarter drilling ISSN 1999-8872 R50.00 (incl. VAT) Vol. 09 • No. 07 • July 2016 Community ties that bind BAKUBUNG PLATINUM MINE

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Inside Mining features topical information on mining and exploration projects in Africa and beyond, focusing on the entire mining value chain. Inside Mining provides in-depth coverage of the most important mining and exploration projects in Africa. It is a vital source of information on technologies and developments in mining and processing equipment.

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NIGEL GOLD MINEMining every last bit

BISIE TIN PROJECTWelcome to the jungle

A F R I C A N U P D AT E S O N T H E G R O U N D A N D U N D E R G R O U N D

www.miningne.ws

ATLAS COPCOSmarter drilling

ISSN 1999-8872 • R50.00 (incl. VAT) • Vol. 09 • No. 07 • July 2016

Community ties that bind

BAKUBUNG PLATINUM MINE

www.schneider-electric.co.za

Schneider Electric’s MMM Solution Areas

Mining, Minerals and Metals integrated solutions to improve energy efficiency, financial performance and sustainability

Safety and Security Social licence to operate Operation Efficiency

Unifying the value chain Asset utilisation optimisationMaximise value creation

Grow in a sustainable way • Get the most of your production resources • Increase overall efficiency

We will be at Electra Mining 2016!Visit us in hall 6, stand K4 and stand a change to win a LED Solar Portable Lamp. Come buy your Solar Lamp at our outdoor stand at a discounted price. * While stocks last

INSIDE MINING 07 | 2016 1

CONTENTS

Endorsed by

2016ON THE COVER p4

NEW VACUUM FOR LABSThe Turbolab 80 workbench variant is a compact, easily operated high-vacuum system.

08

30

16

@mining_news

www.facebook.com/pages/ Mining-News

A F R I C A N U P D AT E S O N T H E G R O U N D A N D U N D E R G R O U N D

JUNE

The new drill rig from Atlas Copco combines brains and brawn to offer mines increased productivity, lower production and maintenance costs, and safer working conditions.

NIGEL GOLD MINEMining to the very last bit

BISIE TIN PROJECTWelcome to the jungle

A F R I C A N U P D AT E S O N T H E G R O U N D A N D U N D E R G R O U N D A F R I C A N U P D AT E S O N T H E G R O U N D A N D U N D E R G R O U N D A F R I C A N U P D AT E S O N T H E G R O U N D A N D U N D E R G R O U N D

www.miningne.ws

ATLAS COPCOSmarter drilling

ISSN 1999-8872 • R50.00 (incl. VAT) • Vol. 09 • No. 07 • July 2016

Binding ties with the community

BAKUBUNG PLATINUM MINE

EDITOR’S COMMENT

3 A big thank you

COVER STORY

4 Smarter drilling

AFRICA ROUND-UP

6 News from around the continent

ECONOMICS, FINANCE & RISK

8 Gold’s key positive factors

LEGISLATION

10 A snuffer to the once golden flame?

COMMODITY: GOLD & PGMs

12 Close community relationships

14 Mining every last bit

FOCUS ON AFRICA: DRC

16 Welcome to the jungle

THOUGHT LEADERSHIP

19 Internet revolution: fact or fiction?

MATERIALS HANDLING

20 Controlling the blaze

ENERGY

23 True cost of solar power

PIPES, PUMPS & VALVES

24 Causes of pipe failure

26 Dewatering lines in mines

INFRASTRUCTURE & CONSTRUCTION

29 All-round coating solutions

PROJECT MANAGEMENT

30 Sustainability’s growing role

in efficiency

MARKET NEWS

33 News from mining's movers and shakers

EVENTS

36 Junior mining indaba

Plascon-Protective-coatings-A4-final-v3_PLA003.qxp_Layout 1 2016/03/10 11:41 AM Page 1

EDITOR'S COMMENT

Publisher Elizabeth Shorten

Editor Mientjie Kleinhans

Assistant editor Mpinane Senkhane

Head of design Beren Bauermeister

Designer Ramon Chinian

Chief sub-editor Tristan Snijders

Sub-editor Morgan Carter

Contributors Millien Hendricks,

Amanda Scribante, Barry van Jaarsveld

Client services & production manager

Antois-Leigh Botma

Production coordinator Jacqueline Modise

Marketing & digital manager Philip Rosenberg

Financial manager Andrew Lobban

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ISSN 1999-8872 Inside Mining

Copyright 2016. All rights reserved.___________________________________All material in Inside Mining is copyright protected and may not be reproduced either in whole or in part without the prior written permission of the publisher. The views of contributors do not necessarily reflect those of the publishers.

To our avid readers, be sure to sign up and get the latest updates and inside scoops from the mining industry. Check out what we are talking about on our website and Facebook page, or follow us on Twitter and have your say.

INSIDE MINING 07 | 2016 3

@mining_news

www.facebook.com/pages/ Mining-News

Mientjie Kleinhans

THE LILY MINE tragedy has affected many more people than just the families of the victims who have been missing for some months

now. Employees have also been left without an income. This story has touched the hearts of many people and a great deal of groceries were donated to assist the employees in Barberton.

A big thank to all the people who gave up their time and donated groceries to #LilyMineFoodDrive. The groceries have been delivered to the mine and the people appreciated the act of kindness tremendously.

In particular, Inside Mining would like to thank the following companies’ employees for their selfless support:

• Serendipity• Magna Carta• Ngage• The Media Shop• Red Cherry• Ncamiso Trading.

On to this month's content. In this issue, we discuss the findings of what will be the richest and second biggest measured tin reserve in the world, located in a rain forest within the Democratic Republic of the Congo. The mine can only be accessed by helicopter until the construction of the access road is finished.

The Bisie Tin Project boasts a 4.5% ore body and, with the price of tin recently recovered, the reserve is quite a find. Read about the challenges that the mine has been dealing with on page 16.

Another project that is still under construction is Wesizwe Platinum’s Bakubung Platinum Mine in Rustenburg. Although production at the mine is scheduled for much later, the team at the mine has already started great projects within the local community.

The mine is very conscious of not repeating the mistakes of the past and believes in partnering with the local community. Read how the mine has assisted the community in various projects – particularly construction and agricultural projects – on page 12.

Inside Mining also visits the small East Rand town of Nigel. This town once offered the richest gold mines in the world. The history of how the town started is quite interesting: apparently, a farmer by the name of Petrus Johannes Marais discovered gold on his farm and started his own company in 1888.

It is said that he named his company Nigel after a novel he had read, The Fortunes of Nigel by Sir Walter Scott. Today, the only remembrances of these fortunes are the mine dumps in the area. These, too, are disappearing, as small-scale miners are reworking the dumps for various reasons.

We look at how one small-scale miner makes a living by mining the dumps for the gold left in the waste. Read more on page 13. This edition is packed with many interesting articles that cover various sectors of the mining industry.

Remember to visit our digital portal – www.miningne.ws – for more mine industry news.

For updated news: www.miningne.ws

FOLLOW THE LINK

A big thank you

ABOVE Tshego Motsoenyane, COO, Ncamiso Trading

Smarter drillingSmart drill rig technology has reached a new level with Atlas Copco’s new SmartROC D65 and its improved intelligence. The new drill rig combines brains and power to offer mines increased productivity, lower production and maintenance costs, and safer working conditions.

THE NEW AUTOMATION technol-ogy offers drilling production blast, presplit, buffer holes, and in-pit grade control with reverse

circulation. The drill rig is able to locate positions on the bench via satellite as-sistance, and it has auto drill functions such as auto guide alignment and auto rod handling.

“This means fewer personnel are required on the drill bench, and re-al-time communication between the offices and the drill rig,” says Hedley Birnie, business line manager: SED, Atlas Copco. He further explains that

low costs and high output are what all mining and quarrying operations yearn for. “SmartROC is the drill rig that delivers this in any drilling application.”

The drill rig optimises drilling and blasting, improves fragmen-tation and thus im-proves on all aspects of the downstream functions, such as load-ing and hauling as well as improved crusher throughput.

Smart technology“The Rig Control System (RCS) for drilling rigs manages the full-auto drill system

and is the heart of the machine,” says Birnie. The drill rig also shares its intelligent platform with the Atlas Cop-co Pit Viper and Underground Series.

“The software of the machine can be incorporated with Surface and Rock Manager, from Atlas Copco, or the data can be stored on a virtual server.

The software is accessible through the company’s CIRTIQ cloud pro-

gramme and communicates in International Rock Excavation

Data Exchange Standard,” says Birnie.

The communication platform and Surface Manager enable com-plete fleet management

and operation control through Wi-Fi.

The intelligent Hole Navigation System (HNS) permits faster set-up and minimises downtime. This feature al-lows for effective, high-precision drill-ing in any weather condition. All these features allow the rig to drill on its

COVER STORY

INSIDE MINING 07 | 20164

RIGHT Hedley Birnie, business line manager: SED, Atlas Copco

1

INSIDE MINING 07 | 2016 5

www.atlascopco.co.za

COVER STORY

own, except for the tramming of the rig from hole to hole. BenchRemote is an option that allows operating the rig from up to 100 metres away – this is ideal for hazardous areas. With this machine, it is possible for one oper-ator to control up to three SmartRoc D65s from one control station.

The machine also adds and ex-tracts rods automatically with Auto Rod Handling, according to the re-quirements, meaning the machine is less dependent on an operator. “This means less wear on consumables and on the machine itself,” says Rod-ney Keogh, product manager, Atlas Copco. And, of course, it also means more time savings.

BenefitsIn a nutshell, this drill rig minimises non-drilling time, thereby increasing productivity. “It removes opera-tor error and, therefore, reduces breakdown time. The autonomous function also has an early warning system, which is fed back to the mine office.

This allows for preventative main-tenance to be carried out before a catastrophic failure occurs,” explains Keogh.It further reduces production costs due to its relatively reduced diesel consumption and low maintenance costs. “The system controls allow for shorter mean-time-to-repair cycles,” says Keogh.

Another benefit of this rig is the low maintenance feature through its self-diagnostic capabilities.

Keogh explains that all the pipes and cables are numbered and are monitored and diagnosed by the RCS system. This allows the opera-tor to find and rectify the problem much faster.

SpecificationsTo go into more details about the specifications of the machine, it can drill a hole of 110 mm to 203 mm in diameter. It also drills from vertical all the way to horizontal, and four de-grees off horizontal for dewatering.

The machine is powered by a Cat-erpillar turbo-charged diesel engine. It is also fitted with an Atlas Copco high-pressure screw compressor.

“Sitting inside the safety cabin makes one realise that it is not only built for safety, but also comfort,

“The autonomous functions also have an early warning system, which allows for preventative maintenance to be carried out before a catastrophic failure occurs.”

when working long hours. The cabin features air conditioning, normal wipers with washer, rear-view mirrors and laminated glass for the front and roof windows.

The side and rear windows are made with toughened glass,” ex-plains Keogh. The cabin also features a fully adjustable operator’s seat and foot rest, and prepared speakers for CD, radio or DVD.

Service To ensure that this, or any other Atlas Copco machine, continuously runs at a standard that ensures optimum pro-ductivity, availability and operational cost, the company utilises its Atlas

1 The new SmartROC drill with smart technology

2 The new drill rig optimises drilling and blasting

3 The Rig Control System manages the full-auto drill system

4 The new drill offers effective, high-precision drilling in any weather condition

Copco Mining and Rock Excava-tion Technique Service Division. This division has over 3 300 technicians in over 80 countries and provides service solutions according to the equipment requirements. Pairing this service with genuine Atlas Copco parts is a winning combination.

2

3

4

MINING NEWSfrom around the continent

Illegal mining in the DRC

INSIDE MINING 07 | 20166

Tenke copper mine in the DRC

DEMOCRATIC REPUB-LIC OF THE CONGO

Q1 copper production slumps 20%Copper production in the DRC, Afri-ca’s top miner of the metal, dropped 20% in the first quarter of 2016, while cobalt and gold output also slumped amid low prices and production cutbacks, the central bank said in a monthly bulletin.

The declines are hammering the DRC’s economy, which derives 98% of its export earnings from extractive in-dustries. Last month, the government proposed a 22% cut to the current year’s budget due to lower-than-ex-pected revenues from the mining sector and fears of inflation due to exchange rate pressures.

Congo mined 219 009 tonnes of

copper in the first three months of the year, compared with 274 201 tonnes over the same period last year, the central bank stated. Mean-while, output of cobalt, the metal used in lithium-ion batteries and of which the DRC is the world’s leading producer, fell over 19%, to 16 396 tonnes, in the first quarter of 2016.

Benchmark copper on the London Metal Exchange lost 25% of its value in 2015 and is down slightly this year. In response, Glencore’s Katanga unit, one of the country’s largest copper and cobalt producers, an-nounced an 18-month suspension of operations last September and other large mines have laid off workers.

Quarterly gold production declined to 7 166 kg this year, from 7 801 kg last year – an 8% slide. Large, new

gold mines opened by companies like Randgold Resources, AngloGold Ashanti and Banro Corporation in the last five years boosted the DRC’s industrial gold output from near zero in 2011 to over 30 tonnes last year. Spot gold prices are up 14% this year, but Randgold says it expects production at Kibali, the country’s largest gold mine, to fall 5% this year because it is mining lower-grade ore.

GHANAGold Fields considers

buying Iduapriem Gold Fields has indicated it is inter-ested in buying AngloGold Ashanti’s Iduapriem mine in Ghana, as the precious metal producer seeks to increase output from West Africa by about two-thirds, to a million ounces.

The DRC is Africa's top miner of copper

Gold Fields is also looking for opportunities to buy mines in Mali, Burkina Faso and Senegal, Alfred Baku, the Jo-hannesburg-based company’s vice-pres-ident: West Africa, said in an interview in Accra. AngloGold said it doesn’t com-ment on speculation around its assets.

“We are interested in Iduapriem mine because of its geographical location and nearness to our Tarkwa mine,” Baku said, referring to one of the group’s existing mines in south-ern Ghana. “We believe that it’s logi-cal for us to develop the two. We will be happy to get it.”

Gold Fields’ Tarkwa is the bigger of the two mines, producing 140 000 ounces in the first quarter of this year, compared with Iduapriem’s 46 000 ounces. Gold Fields said, in February, it is looking to buy assets in the regions where it already operates as it tries to increase metal output and lower costs.

AngloGold, the world’s third largest miner of the metal, has taken the Ghanaian government to an interna-tional arbitration panel over its failure to secure its Obuasi mine, which is not currently producing gold, from illegal miners. The prob lem has not affected Iduapriem and Tarkwa, about 150 km south of Obuasi.

“If you look at the challenges that AngloGold is facing in Ghana, there may be some who will be skeptical about such a move,” Sibonginkosi Nyanga, a Johannesburg-based an-alyst at Momentum S.P. Reid said by phone. “If you look at the Ghanaian environment, it is not easy to operate there.”Gold Fields reversed gains and closed 1.6% lower at R60.83 per share in Johannesburg. AngloGold fell 0.4% to R235.18. AngloGold CEO Srinivasan Venkatakrishnan previously said the

Charity Jinya, president, Bankers’ Association of Zimbabwe

company wasn’t under any pressure to let go of assets after it sold its Cripple Creek & Victor mine in the US to New-mont Mining Corp for $820 million last year, to pay off debt.

“Iduapriem is a solid, well-run mine that generates cash and has a range of promising project options that will generate additional value for us over time,” Stewart Bailey, spokesman, An-gloGold, said in an emailed response to questions. -Bloomberg

ZIMBABWEDollar shortage

threatens mining productionZimbabwe could lose the equivalent of four months of mining out-put this year because an acute dollar short-age has led to delays by banks in processing payments for imports of spare parts and supplies, the Chamber of Mines said last month. The prob-lem affects the entire mining sector,

which includes gold, nickel, chrome, diamonds and coal. Zimbabwe

ditched its own dollar in favour of the US currency in 2009,

to try to put a lid on hyper-inflation and prevent a complete meltdown of the economy. However, shortages of US bank notes that started in March have worsened and the central bank has unnerved deposi-tors with plans to intro-duce local notes.Toindepi Muganyi, pres-

ident, Chamber of Mines, told a parliamentary com-

mittee that banks were taking 10 to 20 days to clear payments

for imports by mining companies “with potential production loss of up to four months.

“This will remain a huge potential risk to the outlook,” Muganyi said. Mining earned more than half of Zimbabwe’s $2.7 billion in foreign earnings in 2015 and a loss of output would damage a sector struggling with depressed commodity prices.

The central bank says cash shortag-es are caused by the illegal export of dollars and lower exports at a time when Zimbabwe’s imports are growing, resulting in the trade deficit growing nearly tenfold in the last decade.

Charity Jinya, president, Bankers’ Association of Zimbabwe, told the

same committee that adopting the rand of South Africa, Zim-

babwe’s largest trading partner, would stem the outflow of dollars.

“We would recommend that the South African

rand be used as the main transacting currency.

This would reduce concentra-tion of risk on the US dollar,” Jinya

said. Zimbabwe was importing small-er-value US dollar notes to discourage the illegal export of money from Zimbabwe, Jinya said. In May, the central bank imposed curbs on imports and set limits on cash withdrawals to ease shortages.

Anglo Gold is the world’s third largest miner of gold

INSIDE MINING 07 | 2016 7

INSIDE MINING 07 | 20168

In the last 10 years alone, the price of bullion has more than doubled, trading in a price range of around $1 250 per ounce

The gold index on the JSE has been stronger of late. Could it be that the very metal that built this city and made our economy thrive so many years ago is making a comeback? Millien Hendricks analyses this.

Gold’s key positive factors

FOR THE LONGEST time, gold has been seen as a so-called “safe-haven investment”, pro-tecting investors from currency

and, often, economic instability. It is cur-rently trading at just below US$1 300 an ounce; lately, its performance, both in terms of price fluctuations and demand variations, has overtaken that of its sister commodity – platinum.

In the last 10 years alone, the price of bullion has more than doubled, trading

in a price range of around $1 250 per ounce. Over the last year, the prices recovered some 20%, as the Federal Reserve scaled back expectations for interest rate rises and after borrow-ing costs became negative in Japan and Europe. In May, the price of gold reached above $1 300 (the highest in over a year) proving to be one of the more resilient commodities in the vola-tile environment commodities are cur-rently operating in.

The World Gold Council has recently revealed that gold demand was quite robust in the first quarter of the year, because of the surge in holdings in gold-backed exchange-traded fund in-vestments in the first quarter of this year, which was not fully offset by a decline in jewellery offtake, total demand rose significantly in the first quarter of 2016.

These stats reflect that identifiable invest-ment demand for gold has increased since the last strong reported record of 616 tonnes in 2009.

Chinese buy-inThe BBC recently reported that China’s ICBC Standard Bank (considered the world’s biggest bank by assets) agreed to buy a massive vault in London, making it the first Chinese lender to own a vault in London as it looks to grow its precious metals business.

The vault, which is in a secret location and is being sold by Barclays, can hold up to 2 000 tonnes of gold, silver, platinum and palladium. The deal will give ICBC more influence over the trading, pricing and storage of precious metals. While China accounts for more than a quarter of global gold demand, trading of the

ECONOMICS, FINANCE & RISK

Millien Hendricks, credit analyst, RMB

Gold is one of the safer commodity investments in these uncertain times

ECONOMICS, FINANCE & RISK

INSIDE MINING 07 | 2016 9

yellow metal remains centred out of London and New York. Economic studies have evidenced that the performance of the US dollar is linked to the performance of gold more than any other contributing factor globally. Some economists are of the opinion that the Chinese RMB may soon overtake the US dollar as the key reserve currency in the future.

If this does happen, hypothetically speaking, does that then mean that gold would lose significant value? Or could gold then be considered the next key reserve asset, as most central banks already hold gold as an asset? In a situation like this, gold could be considered an excellent diversifier for reserve portfolios.

There have also been views that the risks and uncertainties regarding the UK’s membership in the EU and the US pres-idential election may see gold rising to over $1 300 this year.

On the other hand, the gold price re-treated for the first time in three weeks while the US dollar grew strong in emerg-ing markets, on the back of positive news on US rate hike talks from Federal Reserve policymakers, who indicated at least another two interest-rate hikes this year, starting as early as June.

Commodity vs equityOne should also note the difference be-

tween the performance of gold shares (equities) and the per-

formance of the actual gold price (commodity) – this re-lates to most commodities too. The two do not neces-sarily perform at the same

rate; i.e. the share price of a gold producer could be

out-performing the increase in the actual price of the commodity itself or even the reverse.

This is due to the fact that the cost of pro-ducing an ounce of gold is generally fixed in the medium term for producers while the trading price of gold fluctuates daily.

For a low-cost producer, this could mean that your revenues and profits could be a lot higher on the back of a higher gold price or could simply not be affected as much when the price of gold is not as strong.

For a higher-cost producer, the price of gold could possibly fluctuate closer to the cost of producing an ounce of gold – which effectively means that you could barely break even or even suffer losses in a reporting period. The best-performing gold shares are general-ly the lower-cost producing companies, among other factors. The Bloomberg Commodity Index displayed a six-month

high as brent crude traded above $48 a barrel, after nearing below $30 earlier this year. The prices of gold, silver, plati-num, copper and palladium advanced. An official filing shows that billionaire George Soros (chairman of Soros Fund Management) recently bought a $264 million stake in Barrick Gold – the world’s largest gold producer.

This, in itself, is proof that it is not all doom and gloom in the commodities sector. The point most may argue, though, is whether this is sustainable. That simply remains to be seen.

Positive assumptionsIn conclusion, bearing in mind that it is impossible to clearly predict the fu-ture, one can study trends and make assumptions thereon – this is one such assumption.

Although I doubt we will see the price of gold hit record highs like it did in 2011–2013, over the medium term, I do main-tain that gold remains a safer commodity to invest in – sustaining shocks quite well, even in the most volatile and depressed of markets.

In addition, gold demand has re-mained relatively stable for several years now, especially due to advancements in technology. Given that we are living in a technological age and continue to cre-ate technological devices that require the use of gold (amongst other things), it is safe to say that gold truly remains one of the stronger commodities.

LEGISLATION

MOODY’S PLACED dozens of mining firms across the world on review for a credit downgrade. Rio

Tinto announced that it would scrap its progressive dividends policy. Platinum prices plunged 32%. The commodities “super cycle”, as it has been dubbed, was clearly over.

Back home, the beginning of 2016 saw the rand plummet to R17.99 to the US dollar. This was coupled with regulatory uncertainty, a volatile labour environment, strained infrastructure, the decreasing val-ue of the mining industry on the JSE, and a resultant lack of investor confidence in the mining industry. The early 2016 headlines were rife with notions of the mining indus-try “fighting for survival” and the difficulty of contemplating “a light at the end of the tunnel”.

A golden flame?Despite the volatility, the weaker rand seemed to benefit the gold producers in South Africa. By March, the dollar price of gold had increased by 17%, and the JSE Gold Mining Index continued to climb, with all of those stocks rising significantly off the back of the higher gold price. With costs still being incurred in rands, and payment being in dollars, South African

gold producers were well placed as the lowest-cost

producers in the industry. As 2016 progressed,

however, South Africa’s attention

was diverted to

A snuffer to the once golden flame?No sooner had the Christmas decorations come down in January 2016 than the world’s attention turned to the dismal state of the global mining industry. Mining companies were hit by plummeting commodities prices, forcing them to slash jobs, costs, capital and expenditure. By Amanda Scribante

Moody’s placing the country on down-grade review and an impending “junk” status. However, when Moody’s released its affect-ed ratings/entities, the gold mining industry again came out top. Anglo American’s Ba3 rating outlook was changed from negative to positive and Anglo-Gold Ashanti’s Baa3 outlook was confirmed as stable. Gold’s uptrend continued seeing Harmony Gold, Sibanye Gold, AngloGold and Gold Fields (the four companies mak-ing up around10% of the Vectors Gold Miners ETF) stocks all rising more than 35% by April 2016.

The changing legal/ regulatory frameworkA key concern of many prospective and current investors is the legal/regulatory uncertainty within South Africa, with the mining industry being a key target of late.

In February 2016, the Constitutional Court upheld the Department of Environ-mental Affairs’ appeal against a judg-ment of the Pretoria High Court setting aside the publication of the National Environmental Laws Amendment Act (No. 25 of 2014), which was signed into force by the president in June 2014. The judgment had the effect of confirming the validity of the Act and, in particular, confirmed the validity of the requirement that mining companies must now obtain

environmental licences for stock-piles and residue deposits.

More recently, the High Court, in Nkala and Other v Harmony Gold Mining (the Silicosis Judgement), granted the go-ahead for class-action suits seek-

ing damages from gold companies for up to half a

million miners who contract-ed silicosis and TB underground.

Similarly, the Mineral and Petroleum Development Amendment Bill is currently before the Portfolio Committee on Mineral Resources, and the draft Mine Health and Safety Bill is being revised based on stake-holder input.

Mining charterMost notably, however, is the recent publishing of the draft Reviewed Broad-Based Black Economic Empowerment Charter for the South African Mining and Minerals Industry, 2016 (the Mining Char-ter) by the Minister of Mineral Resources.

Although the Mining Charter has the vision of achieving a globally competi-tive mining industry that is to benefit all South Africans, it has a number of significant implications:

OwnershipEvery holder of a mining right must ensure 26% black ownership per mining right (note: this provision is identical to that contained in the Mining Charter, 2010). Not less than 5% of the 26% must be held

by a special purpose vehicle. No-tably, the 26% requirement must be

Amanda Scribante, candidate attorney, Baker & McKenzie

INSIDE MINING 07 | 201610

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LEGISLATION

INSIDE MINING 07 | 2016 11

met perpetually; i.e. in cases where BBBEE partners have exited, rights holders will be given three years from the date of pub-lication of the revised charter to review their empowerment credentials.

Employment equity• Boards must consist of a minimum of

50% black members with voting rights, of which 15% must be black females.

• 60% black representation is required at senior management level, of which 30% must be black females.

• 75% black representation is required at middle management level, of which 38% must be black females.

• 88% black representation is re-quired at junior management level, of which 44% must be black females.

Procurement Mining right holders will also be expected to procure a minimum of 60% locally man-ufactured goods from BBBEE-compliant manufacturers, while a minimum of 70% of locally manufactured consumables must be procured. In terms of services, a mini-mum of 80% of services must be procured from local companies.

Social development/contributions The mining right holder is to:• invest 5% of annual payroll in essential

skills development, with 15% of the 5% to be invested into the Minister’s Skills De-velopment Fund

Despite the volatility, the weaker rand seemed to benefit the gold producers in South Africa

• invest 1% of annual turnover towards lo-cal community development and labour sending areas

• contribute to home ownership op-tion through financial and technical support.

Review of the Mining Charter The Minister of the Department of Mineral Resources may review the Mining Charter as and when the need arises.

Priority items As it stands, only strict non-compliance with priority items will result in the entity’s BBBEE status level being discounted by one level. Ownership, housing, living conditions and human resource development have been identified as priority elements.

An end to gold’s golden flame?Although gold has had an impressive track record to date, it is uncertain whether it will be able to avoid the repercussions of the

impending legal and regulatory snuffer. The almost inevitable need to refi-nance empowerment transactions to make allowances for the new require-

ments under the Mining Charter could prove to have much wider implications

in an industry where investment is already hard to come by. This must also be viewed in light of the

potential implications that the Silicosis Judgement may have. However, it is im-portant to note that, in his Budget Vote on 19 April 2016, Minister Zwane stated that the ministry’s main priorities in the year ahead are as follows, “Enhancing regulatory and policy certainty, health and safety, as well as meaningful eco-nomic transformation”.

Although, on the face of it, the Mining Charter purports to drastically reform the mining industry, it does align the Mining Charter with the amended BBBEE Codes of Good Practice, which creates consistency across the various industries and, in turn, has the effect of increased legal certainty.

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THE MANAGEMENT of the mine realises the importance of building and maintaining relations with the community. It is all about the social

licence to operate and good neigh-bourliness to ensure economic prosperity and mutual benefit, according to Kgo-motso Tshaka, executive: Sustainability, Wesizwe Platinum.

“Therefore, it is imperative that the company allows open engagement with community members and inter-ested parties. The company also pro-vides for other en-gagement vehicles, such as a communi-ty newsletter, stake-holder engagement forums, and project steering committees including community members,” she says.

She adds that the company is conscious of not repeating the mistakes of the past, as demonstrated by other large mines, and continuously strives to incorporate lessons learnt in its approach to contribute to sustainable outcomes.

The company’s approach is to work in partnership with the community to develop and deliver community-related initiatives. In this instance, the company operates within the remits of the Mining Charter and the Social and Labour Plan (SLP) that identifies community projects via a municipal process called the Integrated Development Plan (IDP) programme.

This then informs the company com-mitments towards fulfilment of the SLP. It is through community consultations that

the company learns about the priori-ties and needs of the community. All community support projects are based on engagement with community fo-rums, interest groups, individuals and government departments.

“There is a considerable level of co-planning of projects with specific

sector groups who are representative of the communi-ty. In the process to develop and implement com-munity support projects, there is consideration to what already exists and what people already know,” says Tshaka.

The company also relies on the guidance of the

IDPs of local municipalities to identify pos-sible community support programmes. The municipalities gather community needs through legislated state processes that invite participation by community members. So far, a number of cross-sec-tor projects in the areas of education, infrastructure, media, agriculture and health have been implemented. In sum-mary, these projects include:

1. Basic services and water supplyThe supply of water to the community sections commenced in 2009 and is on-going. A series of long-term water supply projects are currently underway.

2. Infrastructure improvementThe projects in this focus area include

the construction of school ablutions, refur-bishment of classrooms, the extension of the health facility and youth centre at the local clinic, and construction of farm struc-tures and agricultural facilities. “The projects are delivered in partnership with relevant government departments and community groups,” says Tshaka.

3. Business and skills development Accredited training has been provided in portable skills such as bricklaying and car-pentry, in farm production and in construc-tion fields. Adding to that, the projects have afforded employment opportunities for the local people. “The projects are generally based on research and feasibility studies to ensure proper project planning and business continuity. Formal workshops and mentorship for local contractors and SMMEs have also been implemented. Education sessions and resources have been imple-mented and supplied to local educators to assist with the improvement of literacy and numeracy levels,” explains Tshaka.

4. Partnership developmentProject Steering Committees (PSCs) are being established for all the company’s community development programmes. The PSCs meet on a monthly basis to invite feedback, provide stakeholder input and further develop the projects. The office of the Kgosi/Chief also selects community rep-resentatives to sit on each PSC.

5. Independent specialistThe company employs the services of in-dependent specialist service providers to determine research project feasibilities, draft

Wesizwe’s Bakubung Platinum Mine

“The idea is not for locals to rely only on the mine for jobs and business opportunities, but for them to become marketable to the whole of South Africa and beyond.”

COMMODITY: GOLD & PGMs

Close community relationships While construction is on track at Wesizwe’s Bakubung Platinum Mine in Rustenburg to start operations in 2018, management also develops and supports the community. Mientjie Kleinhans uncovers the great work the mine has been doing and what its future plans are.

INSIDE MINING 07 | 201612

COMMODITY: GOLD & PGMs

INSIDE MINING 07 | 2016 13

Produce from the farming projects creates downstream employment opportunities

The projects have afforded employment opportunities for the local people

Sustainability within the community is very important to the mine’s management team

project business plans and outline project activities towards the implementation of projects. These service providers also provide sector training and mentorship while profiling the community initiatives for wider audiences.

The company’s community develop-ment projects are based on defined and agreed SLP commitments. The SLP ad-dresses community needs and priorities as outlined in the IDPs of local municipalities within a five year time frame.

All SLP projects are recorded and reg-istered with the Department of Mineral Resources (DMR) from inception to com-pletion, with monthly, quarterly and annu-al reporting schedules to both regulator and the Wesizwe Board. DMR officials visit the project sites and audit the projects to assess the impact of all projects.

SustainabilityThe local community members are ac-tively involved in the delivery of projects and, as a result, the locals are the ones charged to ensure the sustainability of the work done within the community. “Active key stakeholders – for example, govern-ment departments – through the PSC process, take responsibility for the mainte-nance of new infrastructure development projects. For example, once construction is completed, projects are handed over to the respective state institutions. At that point the company retains no respon-sibility for areas such as maintenance,” explains Tshaka.

She adds that the company promotes community ownership and co-planning with the local people. The trained com-munity members are awarded opportuni-ties to provide services to the mine, where appropriate. “The trained bricklayers and carpenters are sourced to offer services in construction work and related infrastruc-ture projects. Those who have established businesses are invited to tender for busi-ness opportunities,” says Tshaka. Tshaka explains that the development of the community has been done in such a way

that it will be able to support itself after the life of mine has come to an end. “Those locals who received certified training and have acquired portable skills will be able to market their skills beyond the life of the mine.

“The idea is not for locals to rely only on the mine for jobs and business opportuni-ties, but for them to become marketable to the whole of South Africa and beyond. The established farm infrastructure is of good quality and is a long-term invest-ment to sustain production at the farm,” tells Tshaka.

ChallengesAll the hard work also brought about some challenges that had to be over-come. One of these challenges was the low levels of education and skills within the mining community generally. But the train-ing, mentorship and workshops provide a platform for new learning for locals who wouldn’t neces-sarily get an opportunity.

Another challenge is the poverty that is rife within the com-munity. Tshaka says that the job oppor-tunities during the construction phase of infrastructure of the projects and businesses are a relief to most locals, alleviating poverty somewhat. The mine also addresses the minimal business skills of small business owners through the mentorship programmes and training of local SMMEs to improve skills.

To combat the lack of information in the community, the mine assisted the community to bring about a community newspaper that is able to share relevant information on mine developments and on the community activities and issues.

“Furthermore, we also ensure that there is constant information sharing regarding training, required skills and long-term job creation. This is to assist the community,

which has high expectations regarding access to jobs, even though members don’t possess the required skills and expe-rience,” says Tshaka.

One more challenge the mine faced is that there is limited government support and community members often shift the responsibility of the state – e.g. availing water – to the mine. “Therefore, the com-munity is encouraged to attend municipal IDP meetings to air their views for state support,” explains Tshaka.

Future plansThe SLP project has a five-year cycle, and is reviewed accordingly. The mine will be working together with the community and government to assess any needs, and the company will continue to provide com-munity development support to the local community through the IDP process and through engagement with key communi-

ty stakeholders. Tshaka explains that this will

happen throughout the life of the mine.

“There is a plan to provide a long-term solution to the water shortage in the local area by constructing

a new pipeline and reservoir. The local youth

will also be engaged and supported in enterprise

development and implementing long-term water supply, and be provided with life skills through the youth centre within the local community. A local media initiative is also underway to assist with community profiling and the enhanc-ing of local media talent and interest,” concludes Tshaka.

Furthermore, the company will also con-tinue to engage with the local municipal-ities through local municipal forums, such as Mayoral Committee and IDP activities, all in the efforts to ensure that the commu-nity will be able to sustain itself long after the mine has reached its end of life.

COMMODITY: GOLD & PGMs

OF COURSE THERE is no comparison between the reserves of then and now, but there is still value to

be retrieved in the remnants of the dis-carded waste rock. One such project is Ncamiso Trading’s sub-Nigel Afrisam JV. It is a macroscale yet complex opera-tion, where intensive technical analysis is involved to establish where the gold is located in-between the rocks and fines. The operation is estimated to run be-yond five years.

Ncamiso Trading recoups remaining gold from the fines between the dump-rock and moves the cleaned-out dump-rock to Afrisam, on the same premises.

Afrisam then crushes the leftover dump-rock for its aggregates operation. This operation helps Afrisam in that the dump-rock is crushed down to a smaller size. Tshego Motsoenyane, COO, Ncam-iso Trading, explains that a capital outlay was set up for the screening operations to rework the dump at Afrisam.

OperationThe operation is rather complex: as there are high walls, a gentler slope has to be created using a bulldozer to make it safer and more suitable for working, thus

granting access to the dump-rock. The bulldozer then further loosens the mate-rial and pushes it towards the excava-tors, which then scoop it up and place it in the double-decker screens.

“Through the screens, the material moves on a conveyor belt to a vibrat-ing sieve, with sizes that range between 40 mm and 20 mm,” explains Motsoen-yane. Material that is finer than 20 mm is screened out on a conveyor belt to a fines heap and the rest of the material is fed into the Afrisam operations.

The presence of Ncamiso Trading at Afrisam creates a link between the dump-rock and the feeder bin into the Afrisam operation.

This is cost-effective for Afrisam, as the link results in cleaned-out dump-rock that is ready or use. The finer gold-bear-ing material is sampled to verify the gold grades and is then hauled by road to either Mintails Gold Mine in Krugersdorp or Pan Africa Resources’ Evander Gold Mine.

This is in line with the process of re-habilitation and beneficiation of a product that could have been aborted in the form of aggregates. Ncamiso Trading gets its proceeds from materials processed by the mines and gold sold.

BenefitsMotsoenyane explains that there are more benefits than just profit-mak-ing in this operation: “Gold-bearing material in the screened fines is re-moved from the dump rock that would have gone to waste in building aggregates production.”

Decades ago, mines were focused on the higher-graded gold-bearing reefs and discarded waste rock, with lower-graded gold-bearing reefs and fines considered uneconomical at the time. With technological advancements and the higher gold price, Ncamiso Trading is able to extract material that was previously regarded as waste.

Another benefit of this project is that the old mine dump is recycled and re-moved. “We are literally removing an eyesore and rehabilitating the land,” says Motsoenyane.

ChallengesOne of the biggest challenges that the company has had to deal with is illegal miners plundering and vandalising offic-es and steel structures when they wer-en’t able to get their hands on the gold. “By removing the structures and the mine dump, there is no reason for them

Mining every last bitA century ago, the East Rand town of Nigel had some of the richest gold mines in the world. Today, most of the gold mines are closed in the area, but the remains, in the form of waste dumps, still deliver gold to macroscale miners. By Mientjie Kleinhans

14 INSIDE MINING 07 | 2016

A front-end loader loading the truck with waste rock

INSIDE MINING 07 | 2016 15

to hang around,” says Motsoenyane.Another challenge that the company faces, which it can’t do much about, is the weather. When it rains, it becomes very difficult to work, and the area is located in a relatively high rainfall area. Adding to that are the controlled operating hours. “We can only work during certain hours of the day, which places a damper on our operations. We cannot just work when we want to,” explains Motsoenyane.

“We are working under exacting con-ditions, as there is a large ratio between the rock and fines – there is far more rock than fines. Hence, we are constantly looking at ways to speed up the genera-tion of fines, so that they are sufficient to supply both Pan African Resources and Mintails Gold.

“But, being a macro-scale opera-tion, we have to think out of the box to provide sustainable solutions to all these challenges.”

Uniqueness of the projectThis project is different in the sense that it provides a solution for both the quarry and the mines. “We give value to all parties by providing the mines with gold-bearing fines and taking away con-taminated material that is of no value to the quarry. We also feed cleaned mate-rial on to the quarry’s belts.

“It turns something that is deemed a hindrance by one into value for another as this aids in the maintenance of the

COMMODITY: GOLD & PGMs

Finer particles of gold, which would have gone to waste in building materials, are removed from the waste rock

1 The angle of operation for the bulldozer is quite steep

2 A view of the screens and heaps of various material sizes

3 Some fines from the screens on to the fines heap

4 Ncamiso Mashinini, CEO, and Tshego Motsoenyane, COO, Ncamiso Trading

5 Material is being fed into the screen with a conveyor

1

2

3

5

4

quarry, because it results in blockages from fines that would otherwise clog the stone crusher. This directly leads to a decrease in maintenance costs,” explains Motsoenyane.

BackgroundThe dumps that are being reworked now are waste rock from the underground working of the Nigel Gold Mining Com-pany that was started in 1889. The mine was later taken over by Consolidated Modderfontein Mine in 1979. The opera-tions ceased in the early 1990s.

INSIDE MINING 07 | 201616

FOCUS ON AFRICA: DRC

Welcome to

UNTIL THE ACCESS road con-struction is finished, the only way to reach this mine is by helicopter. Although the

jungle is beautiful, it also poses many challenges. But, it seems to be all worth it, as this is the richest and second big-gest measured tin reserve in the world.

The Bisie Tin Project boasts a 4.5% ore body and, with the price of tin recently recovered, the reserve is quite a find.

“A 1% ore body is a great find in the tin space; therefore, we can safely say we have a rich ore body. The biggest tin reserve in the world is in Kazakhstan, but the ore body is of a low grade and production there has not yet started,” says Boris Kamstra, CEO, Alphamin.

“Fortunately, the price of tin has re-covered after its recent collapse. Even with a 0% growth in the tin demand, there is going to be a tin shortage in the world. And we are happy to be in the tin space at the right time,” says Kamstra.

He explains that tin was largely a forgotten element used in the coating of tinned cans and peripheral items. Since its sudden incorporation with sol-der, to replace lead, it has become an important commodity.

“Tin is everywhere and the uses of it have increased. Combined with the forecasted supply squeeze, this will be positive for future tin pricing.”

ProductionThe plan is to start production in 2019, with Mpama North, and the cost of production for one tonne tin is US$8 500 per tonne. The mine will be a spiral de-cline, just below the foothill of the ore body, and production will use sub-level caving methods.

The expected life of mine is 12 years or more. “We know for sure that the current life of mine is 10.5 years, but it will extend further down. We also know that there are other resources within close proximity to the same ore body,” says Kamstra.

He says that the ore responds very well to gravity separation. “So, we will bring it up, crush it, and run it through +1 mm -10 mm jigs. The sinks from the jigs will be milled down finer, to about 1 mm, and then down the spirals to clean it up.

Imagine mining the slopes of a rainforest mountain covered in towering trees and surrounded by rolling green hills. This is the astounding reality of Alphamin’s Bisie Tin Project in North Kivu, Democratic Republic of the Congo. By Mientjie Kleinhans The Bisie Tin Project is located in the

heart of a rainforest

the jungle

INSIDE MINING 07 | 2016 17

FOCUS ON AFRICA: DRC

Besides being blessed with a 4.5% tin orebody, the other unique point about the project is its ability to completely transform the North Kivu economy

At the end, we will perform a sulfide rejection float to get rid of penalty materials. This will produce a +60% tin concentrate,” explains Kamstra.

ChallengesOne of the major challenges that the mine has had to deal with is acces-sibility. Logistics are a nightmare for the mine. The only way to get to the mine is either by helicopter or by foot. This means it had to design its drilling campaign around a rig that could be moved by helicopter.

“It was expensive to drill and, includ-ing the helicopter trips, the bill came to around $350 to $400 per metre. When you hear the helicopter blades go tuck-tuck-tuck, think of the blades making confetti out of $100 bills,” quips Kamstra.

The other big challenge for the mine was interfacing with the community. It was a three-year process with the communities, discussing and designing how the project will work. “People didn’t believe it would be possible to build a mine in the middle of the jungle. We had to deal with the communities on several levels over a long period of time. Currently, we have overwhelming support from the communities, through the local and provincial authorities, right up to the national authorities,” says Kamstra.

UniquenessBesides being blessed with a 4.5% tin orebody, the other unique point about the project is its ability to completely transform the North Kivu economy. With this project, it will be possible to materially change the lives of every-body living in the area for the better.

Kamstra explains that all current initiatives are designed to be labour

intensive. One example is the access road, built by hand by 350 people. “There are three teams doing two kilo-metres each per month, and they are doing the most extraordinary job. Their work is immaculate and neat. Our plan is to employ as many local people as possible,” explains Kamstra.

The labour will peak at about 700 or 800 people during con-struction, with about 400 people working in the mine.

The impact on the community is not only as a result of direct employment, but through other initi-atives as well. One such example is the new Vodacom tower that was constructed on-site. “The moment the tower was active, ki-osks opened and locals started selling airtime vouchers and power recharge facilities. This is magnificent, especially if one keeps in mind that there were no such communication systems in place before,” says Kamstra.

Similar initiatives will take place once the mine needs catering services and uniforms. Kamstra says that the mine

intends to buy a roll of fabric, and then set people up with sewing machines, so that community members will bene-fit financially from the mine.

Another blessing is location. Being in the middle of a rainforest means the mine will have an abundant water supply. “There is only wet and wetter. The mine will be water pos-

itive – meaning water will go out to the process plant

and then be reused,” explains Kamstra.

Future plansMpana South is next on the cards, as well as a processing plant

and possibly a smelter close by. In the next

year, an EPC contractor will need to be appointed,

along with mining and earthworks contractors, to ensure the start of con-struction in early 2017.

Before that can happen, the mine needs to raise $130 million, of which $119 million will be capex, before De-cember 2016. Building the mine will take a minimum of 18 months and it will take about 6 months to get to nameplate capacity.

Besides Mpama North and Mpama South, there are two other possible reserves close by. When the time is right, Alphamin will explore the other reserves as well.

ABOVE The access road is currently being constructed by hand

The Bisie mine layout

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THOUGHT LEADERSHIP

End users have invested huge sums in industrial automation and control systems, and are unwilling to invest more to replace those systems with new technologies. Fortunately, the industrial internet of things is not about ripping out current automation systems in order to replace them with new ones.

INSIDE MINING 07 | 2016 19

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END USERS ALSO resist rapid and radical change because of the increased risk of downtime and associated costs, according to

Schneider Electric – a global specialist in energy management and automation.

“IIoT (the industrial internet of things) is often presented as a revolution that is changing the face of industry in a pro-found manner. In reality, it is an evolution that has its origins in technologies and functionalities developed by visionary automation suppliers more than 15 years ago,” says Quintin McCutcheon, South-ern African marketing and operations manager: Industry Business, Schneider Electric.

“As the necessary global standards mature, it may well take another 15 years to realise the full potential of IIoT. After all, the benefit of IIoT lies in the ability to link automation systems with enterprise planning, scheduling and product life-cycle systems in order to enable greater business control.”

While the long-term impact of IIoT is difficult to predict, Schneider Electric says that the following three, distinct operational environments will emerge as key areas that will initiate the gradual transition to IIoT:

1. Smart enterprise control: IIoT technologies will enable tight inte-gration of smart connected machines and smart connected manufacturing assets with the wider enterprise. This will facilitate more flexible, efficient and,

Internet revolution: fact or fiction?

hence, profitable manufacturing. Smart enterprise control can be viewed as a mid-to-long-term trend. It is complex to implement and will require the creation of new standards to enable the conver-gence of IT and OT systems.

2. Asset performance management:Deployment of cost-effective wireless sensors, easy cloud connectivity and data analytics will improve asset per-formance. These tools allow data to be easily gathered from the field and converted into actionable informa-tion in real time. This will result in better business decisions and forward-looking decision-making processes.

3. Augmented operators: Future employees will use mobile devic-es, data analytics, augmented reality and transparent connectivity to increase productivity. As fewer skilled workers are left behind to man core operations, due to a rapid increase in baby-boomer retirement, younger replacement plant workers will need information at their fin-gertips. That information will be delivered in a real-time format that is familiar to them. Thus, the plant evolves to be more user- and less machine-centric.

“Several barriers will need to be over-come before next-generation IIoT sys-tems are widely adopted. These include the establishment of industry standards around IIoT, cyber security protection, and workforce adaptation to new sets

of skills,” adds McCutcheon. While these three areas are closely related and share many interdependencies, they also have differences. For example, the time scales on which they can be implemented and the kind of automation market segment they address are not the same.

Conclusion“Despite this slow, gradual IIoT adoption scenario, the impact on manufacturing will be far-reaching. Suppliers and users will have to embrace IIoT technologies if they wish to remain competitive.

The good news is that the new technol-ogy allows for IIoT solutions to be phased in so that physical infrastructure bases can be shifted over time. The cost of connected sensors is dropping rapidly, open-IP-based protocols are gaining traction at an accelerating rate, and the adoption of cloud-based solutions is be-coming a reality.

Suppliers like Schneider Electric have the expertise to work with manufacturing companies to apply IIoT technologies to production systems and drive the evolu-tion towards a smart manufacturing enter-prise that is more efficient, safer and more sustainable,” concludes McCutcheon.

www.schneider-electric.co.za

20 INSIDE MINING 07 | 2016

MATERIALS HANDLING

Controlling the blaze

DESPITE COMMON misconcep-tions, fire is a pervasive threat to conveyor belt systems in mines. Fire can cause sub-

stantial damage to the conveyed mate-rial, the electromechanical components of the system and the belt itself. This potentially results in costly damage and unwanted downtime.

A conveyor belt serves a critical pur-pose in mining operations – for example, the loading of coal directly into the power station bunkers.

It is in such a process that an under-ground conveyor fire can, and most likely will, result in large quantities of hot, toxic gas and smoke. Additionally, the risks placed on underground workers make underground firefighting extremely difficult. Conveyor belts contain poly-meric materials that can cause fire to spread more rapidly and generate toxic, corrosive smoke.

In addition to being lethal, these fires are also incredibly difficult to control.

To ensure early fire detection on a conveyor belt, risk consultant ASP Fire recommends the installation of fire-detection technologies in con-junction with suitable fire control and extinguishing panels, which are

especially suited to long distance and moving environments.

Michael van Niekerk, CEO, ASP Fire, says, “Fires on a critical conveyor section may interrupt the supply of the material being transported. This would be dis-astrous in the case of a power station where the interruption in the supply of coal could result in the cessation of operations. A fire on the conveyor could spread to the stockpile, silo or bunker, resulting in huge product/mate-rial losses.”

The sooner, the betterThe ideal way to manage a fire is to de-tect it early, before the blaze spreads – the sooner, the better. Van Niekerk rec-ommends that conveyors be protected by a range of automatic detection devices such as flame detectors, ember detectors and linear heat detectors.

“These should be connected to fire suppression systems or fire alarm systems, depending on the location and criticali-ty of the conveyor,” he indicates.

In the event of a fire, each mine or material handling company has a code of practice that must be followed. “The rule of thumb is to stop the conveyor in order to limit the fire damage and

prevent the fire from spreading to oth-er areas. If a fire breaks out underground or in a critical section of a conveyor, an automatic suppression system should activate to control the fire. Where fires break out in conveyor sections that are in non-critical, above-ground areas, a fire response team will generally attend to the fire,” Van Niekerk adds.

ASP has introduced Technoswitch fire-detection technologies to service the market’s needs, by supplying fire-control panels that supervise a range of detection devices suitable for con-veyor-type fires.

“The ember detectors can detect a smoldering ember that has not devel-oped into a flaming fire, but which has the potential to cause a fire either on the conveyor or in a stockpile or storage silo,” Van Niekerk explains.

“Heat detectors are used when large areas need to be protected and will detect a sharp rise in heat, typically caused by a fire.

This allows the detector to discriminate between large temperature ranges

Fire poses a massive threat to conveyor belt systems in mining operations – the systems used to transport bulk materials to the surface, stockpiles or transport loading stations. The timely detection of a fire can save production downtime and lives. By Mpinane Senkhane

ABOVE Fire can cause substantial damage to conveyed material

INSIDE MINING 07 | 2016 21

MATERIALS HANDLING

caused by daily heat cycles in summer, for example, and those caused by a fire,” he adds. Flame detectors are usu-ally deployed where a quick response to a fire is required. They are typically used in very high-risk areas or where the fuel being stored or transported has a high

fire load or has the potential to explode if not detected early enough. Conven-tional fire-detection devices are typical-ly used in the built environment. These include point-type smoke and heat detectors, open-area smoke detection beams or very early, aspirating smoke detection devices. Van Where affordability is concerned, given the economic glut in the mining industry, miners are often hesi-tant to overspend on what can sometimes be deemed as “unneces-sary” expenses. However, Van Niekerk urges that this isn’t the case. “There are options availa-ble for the different type of detection devices, so we are able to match the solution design to a client’s budget, to a degree.

Very high-risk environments require very sensitive and quick response de-tectors and these, unfortunately, are more costly,” he explains. “If a client

“Fires on a critical conveyor section may interrupt the supply of the material being transported. This would be disastrous in the case of a power station, where the interruption in the supply of coal could result in the cessation of operations.”

requires flameproof or intrinsically safe equipment, then the pricing tends to

be even higher. But this is a direct result of the design and techni-

cal manufacturing standards and third-party certification of the equipment,” Van Niekerk continues. There is an equilibrium point

where a client’s risk appetite and budgetary constraints meet:

low costs result in high residual risk, while very costly systems generally result in low residual risk.

“Our job is to understand the specific environment’s risks and to design a cost-effective solution that matches the client’s risk and budgetary expectations, while ensuring adherence to local or national fire protection standards or requirements,” Van Niekerk concludes.

BELOW Belts contain polymeric materials that pose a serious risk in terms of rapid fire spread

Mining and Industrial Oil & Gas are themost demanding sectors in the industry.It requires reliable power for a diverserange of equipment, deep undergroundand for essential and critical facilities on the surface. When there is not enough power available to meet the demand this can have far-reaching effects for high-energy users. Interruptions may cause costly delays.

Energyst puts real energy into power challenges by providing long-term high quality rental solutions with proven dependability. When it comes to power,a reliable partner is vital to the success of your operation. Energyst has an outstanding track record with a 24/7 call-out facility and 24/7 remote and early warning systems.If the effects of load shedding challenge your operation, you can trust Energyst to deliver 100% reliable power.

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INSIDE MINING 07 | 2016 21

There are various misconceptions regarding the true cost and benefits of solar power as a source of energy at remote mines. Operations sometimes demand substantial baseload around the clock, so capacity and storage are a challenge.

www.redpathmining.com

ENERGY

True cost of solar power

SOLAR POWER has seen some remarkable updates to technol-ogy and offers various solutions for buyers. These solutions range

dramatically in price. “It is true that solar power is still ex-

pensive, as it needs to include the cost of batteries to store the energy generated by photovoltaic cells,” says Roger Dixon, corporate consultant, SRK Consulting Africa.

“This is, of course, the only way that solar energy can be used when the sun is not shining. These batteries are still expensive, particularly those with the capacity to store the amount of energy required by a mining operation.

“However, the cost of batteries has come down considerably in recent years and will continue to reduce as technology advances, making this op-tion more competitive,” predicts Dixon.

He further explains that where battery storage is not cost-effective, backup power would be required for parts of the operations that work on a continu-ous, 24-hour basis, such as crushing and grinding in mineral processing plants. “Other applications, like dewatering pumps and ore hoisting winders on an underground mine are also continuous operations needing uninterrupted pow-er,” says Dixon.

Power from the grid could be used, but the tariff for only short periods of use would be extremely expensive. Dixon adds that diesel-generated pow-er is a common alternative, although this is also costly. “The real problem

with backup power is the cost of in-stalling two or more systems, which would quickly become prohibitively expensive.”

Cost implicationsThe cost factors that should be con-sidered when calculating the true cost of solar power would include the pur-chase, maintenance and replacement of storage batteries to provide an unin-terrupted, 24-hour supply.

Dixon says that these costs would need to be compared against the cost of installing and maintaining trans-mission lines from the country’s main power grid.

Pros & cons The benefit of a reliable solar-powered system with appropriate battery storage would be that the mining operation would not be entirely dependent on the national electricity grid, which would al-leviate pressure on the grid, and would partially mitigate the risk of an unrelia-ble supply from the grid.

The challenge of solar power is to have alternative power supply or suffi-cient storage for night-time energy use. “Currently, it would only be feasible to generate and store relatively small amounts of power for specific, low-con-sumption applications on a mine.

Functions such as mineral processing require large amounts of power and have to operate on a 24-hour basis, making solar unsuitable at its current level of evolution. Dixon says that the

extent of this challenge would, how-ever, be different depending on the geographical location. “In northern Scandinavia, for example, the sun sets in summer for about two hours; in win-ter, however, there are only a couple of hours of sunlight,” explains Dixon.

Power of the sunThe efficiency of a solar plant will be dependent on the number of hours of sunshine available and the combined surface area of the panels used to ab-sorb the sun’s energy.

Dixon explains that, while there are some areas and applications that do not lend themselves to solar power, the technology around the semiconduc-tors used to absorb the sun’s energy is advancing rapidly and increasing the efficiency of solar plants.

“So, it is likely that the technology’s application will steadily broaden geo-graphically and reach into many eco-nomic sectors.

“Solar power is one of the cleanest technologies available and offers particular benefits in Africa’s climate – where we have a high number of sunshine days and nearly constant daytime and night-time. However, it is also unique in that its energy source is only available for a certain period within each day’s 24-hour cycle,” says Dixon.

INSIDE MINING 07 | 2016 23

Roger Dixon, corporate consultant, SRK Consulting Africa

PIPES, PUMPS & VALVES

Causes of pipe failureFailures in pipes can have devastating results, sometimes even causing injuries or fatalities. Mines try to avoid these failures for various reasons, but sometimes one has to look further than the obvious to find the cause. Mientjie Kleinhans explores possible preventative measures.

PIPE FAILURE can cause two major issues that mines try to avoid at all costs – a threat to safety, and downtime.

Instances where pipe failure causes injury, or a fatality, will immediately result in downtime as well. In the cur-rent economic climate, mines cannot afford any loss of income.

The financial situation causes mines to place pressure on the teams to meet their performance targets. “To stay profitable, costs are usually cut, which can impact maintenance routines.

“This causes dangerous situations, which will cost the mine operators more in damages than the original maintenance would have,” says Bart Malan, mining business development manager, Polypipe. He adds that, due to cost cutting and budget cuts, maintenance teams may choose pipe

and fittings that are not always suit-able for a pipeline, thus creating the potential for future failures in pipelines and fittings.

Deon Kruger, head of sales: Mining Projects, Robor, adds that mining com-panies often procure on the cheap-est price. “This doesn’t guarantee high-quality products, and the mine’s quality systems sometimes let poor-quality products through. It is not always the case, but we have found this in practice.”

Incorrect fittingsIn many cases, pipe failure doesn’t occur because of a weak-ness in the pipe itself, but rather where the pipes are joined with couplings. Ian Venter, product specialist, Marley Pipe, explains how the incorrect fittings can cause failures in pipes, and says

much has to do with the application. “First of all, ask the question: is it fluid or gas in the pipeline? The medium being conveyed determines what the system needs and two aspects to take into consideration are the pressure and temperatures at which it is operating,” says Venter.

“There are distinct differences be-tween high-pressure applica-

tions, abrasive properties of the solution, down columns in mines, chemicals and general water conveyance. We find that the majority

of failures occur when engi-neers specify the wrong flange

or stub for the application, or the installation was poorly executed,” says

24 INSIDE MINING 07 | 2016

ABOVE Bart Malan, mining business development manager, Polypipe

Much can be said about the correct installation of pipes and fittings

INSIDE MINING 07 | 2016 25

PIPES, PUMPS & VALVES

and supplier can work with to identify what the real requirements are.” He adds that the checklists need to be influenced by the people in the know, people with the necessary experience and knowledge. This needs to hap-pen at the level where standards are monitored.

Malan feels that there are three possible solutions to the problem. The first solution is to consult with a professional in the in-dustry and to ensure that the correct procedures are strictly followed.

Ensuring that the correct pipe and fittings are used will guarantee the longevity of the pipeline. And, ensur-ing that the contractors on-site have the required qualifications to do the job correctly will also prevent the fail-ures from taking place.

Kruger says that Robor’s solution is to work closely with the consulting engineers and end users to ensure that they share their experience, ensuring that all parties are satisfied with a safe system that lasts. “We al-ways produce a full set of data-books accompanying our products. This provides peace of mind to all stake-holders that our product and service comply with the quality standards set for the application.”

PreventionThere are a few factors that can help prevent failures in pipes, but Malan believes that “most mining applica-tions are highly pressured and the liq-uids are usually very abrasive or highly acidic; therefore, the continuous maintenance and monitoring of pipe-lines are crucial parts of any mining

operation.” There are a few compo-nents to prevent pipe failure, according to Venter. He believes that the process

needs to go further than obtaining a certificate from an institution.

“The way the process needs to work is that somebody iden-tifies the need, as well as the required components, equip-

ment and processes.”The first component is to look at

the qualifications of the person involved with the installation and maintenance. Second, the products need to be of good quality, and the pipes need to be compliant. Other components include the area, or workspace, and location of the site, as climate can also play a significant role.

There are so many elements that have the potential to play a role in pipe failure. Starting off by doing the basics right will certainly help to prevent pipe failure. Other than that, the consulting engineers, manufacturers and suppliers that special-ise in this field should be able to assist with professional services and advice.

Kruger. Fittings are designed with cer-tain characteristics in mind for a spe-cific application. If the wrong fitting is used, it will eventually fail. Venter adds that price is normally the driving factor for the wrong selection.

Kruger says that cheap alternative im-ports are a major concern, while Malan adds that cost pressures and incorrect specifications for a given application are a combined problem that could present serious threats to failures in pipelines. Besides incorrect installations and commissioning, the lack of mainte-nance is also a threat.

“A lack of maintenance of high-abra-sion applications, such as slurry pipe-lines with high wear rates, could also cause failures at bends and fittings, due to turbulence inside the pipeline,” explains Malan.

In many cases, when the fitting fails, there is no understanding on how this fitting or the system should be repaired, according to Venter. He tells of an in-cident where a worker tried to fix the coupling by hitting it with a hammer three times – just as he was told to do – with disastrous consequences.

SolutionsVenter explains that there are a number of standards available to the industry but, in most cases, these documents are difficult to understand or interpret. “For this reason, I believe that there should be a checklist that both the mines

“We find that the majority of failures occur when engineers specify the wrong flange or stub for the application, or the installation was poorly executed.”

BELOW Deon Kruger, head of sales: Mining Projects, Robor

Competent people, getting all the elements right, will decrease the threat of pipe failure

PIPES, PUMPS & VALVES

Dewatering mine lines

WITH HUNDREDS of mines operating in South Africa, each must deal with the issue of water. Whether it

has been extracted or inserted, water can affect processes, productivity and the surrounding environment.

With the average lifespan of a mine sitting at approximately 70 years, a single mine site will extract, insert and manage water daily, from initial exploration to continued expansions, throughout the life of the mine.

When you consider the amount of water used every year by the mining industry in sites across South Africa, it is critical that miners address the management of this precious resource.

Dewatering linesMines of all depths and across all regions of South Africa have one key thing in com-mon: the longer they operate, the greater the chance that water will seep into the everyday workings of the mine site.

While open-pit mines have the ability to collect more water due to exposure to rainfall and natural run-off, underground

mines run deeper and require the use of more water for drilling, running equip-ment and for activities such as dust suppression. Regardless of its nature, for a mine to continue successful and profitable operation, water needs to be extracted and managed efficiently. The successful removal of water from mine sites continues to be a difficult, and sometimes contentious, issue.

Improper removal of water poses a significant risk; excess water can create safety hazards for mine owners and operators, effectively halting produc-tion processes and resulting in costly, unnecessary downtime. To ensure this

doesn’t occur, water needs to be extracted.

Dewatering lines are the most effective and com-mon way of extracting water from underground and open-pit mines in South Africa. It is antici-

pated that they are cur-rently in use in every mine

site in South Africa. These systems are generally in-

stalled at the construction of the mine, and will need to be in use for its entire lifetime. The system itself is in a constant state of flux – adjusting to continuous ex-pansion, moving deeper into the mine.

To insert a piping system into mines of any depth requires an easy-to-install sys-tem with the capability to be rerouted

quickly and with limited damage to the system. In most mines, dewatering lines are designed to follow the gradual slop-ing of the stopes to avoid a completely vertical ascent and drastically reduce head pressures and operating costs.

While this design strategy alleviates some pressure issues, it does not make the installation and maintenance of sys-tems any simpler. These sections of pipes can be anywhere from 100 m to 1 km in length, meaning there are numerous joints to complete along the length of the stope.

The dark, damp, dirty and constricted spatial conditions that characterise mines greatly inhibit the installation process of dewatering lines. Limited electrical access and heightened safety concerns further increase the difficulty of installation.

Mechanical pipe joining: a comparison While flanged joints may have been the first mechanical pipe joining method for dewatering lines, the installation and maintenance challenges have led many mines to adopt other joining methods. With a handful of nuts and bolts to con-tend with and a small window for error in aligning flange faces, installation remains

Water is found in every mine across the globe: whether as rainfall or run-off, in operations hitting the water table, or as machine and instrument water. And, the deeper a mine goes, the more complicated it gets to manage water. By Barry van Jaarsveld*

26 INSIDE MINING 07 | 2016

ABOVE The Style SC77 Flexible coupling is a popular pipe joining methods

ABOVE Shouldered piping systems can be quickly and easily disassembled and reinstalled

PIPES, PUMPS & VALVES

need to be very carefully engineered to ensure that the system doesn’t fail.

The outcome for a buckled system is dire – the mine will flood, harming the exercise and machinery and putting the lives of those working in the mine

at risk. In particularly high-pressure sce-narios, pressure can reach up to 20 000 kPA in an average hard rock mine, making the engineering and instal-lation of these systems extremely complex. In these cases, dewater-ing lines are extremely vulnerable and need

careful product care to ensure they are as stable as possible. For deep mines that engineer their dewatering lines to lower pressures, alternative pipe mate-rials such as HDPE and PVC are quickly growing in popularity. The extreme depths of the mines require very resil-ient piping and joining mechanisms to resist wear and tear. PVC piping is more resilient than HDPE, and requires a joint to match.

Conclusions As mining continues to be a primary in-dustry and significant contributor to the South African workforce and economy, solutions and systems that make the whole process more streamlined are in high demand. As a necessity in every mine site, dewatering lines have expo-nential growth and demand.

Specialised systems are helping reduce the challenges associated with installing dewatering lines, by reducing installation time and increasing ease of use. Instal-lation-ready technology and reusable PVC joining systems ensure faster and more efficient installation, to help deliver a seamless system, under pressure.

*Barry van Jaarsveld is the regional manager: Africa at Victaulic.

slower and more tedious than grooved, shouldered or plain-end joining methods. As the preferred joining method for de-watering lines in South Africa, grooved, shouldered and plain-end systems are installed up to five times faster than flanged joints, offering 360 degrees of rotational flexibility, featuring only two nuts and bolts to install and thus having a smaller footprint. This space saving is perfect for the cramped, dark conditions of a mine where the risk of human error is high, and the stakes are even higher. Zooming in on underground mines Both coal and metal mines require func-tional dewatering lines to continue their operations at optimum efficiency.

Coal mines As prime examples of where dewater-ing lines are installed along the stopes to control pressure, coal mines sit at relatively shallow depths in comparison to metal mines. Dewatering lines are typically installed using shouldered pipe joining, increasing speed and flexibility during installation.

While mines continue to explore, they require a dewatering system that can grow with the mine throughout expan-sions. The average underground mine in South Africa would see the installation of 5 000 to 10 000 joints per year. Unlike flanged systems, shouldered piping systems can be quickly and easily disas-sembled and reinstalled using the original product – no replacement parts are necessary.

While the advantages of the shoul-dered system remain tangible, there are drawbacks. The shouldered system is comprised of shouldered steel pipe and a coupling. Traditionally, couplings are comprised of a two-piece hous-ing, gasket, nuts and bolts, which are taken apart before installation. Then, the gasket is lubricated, placed on the pipe ends and encased by the housing. Under the conditions of a typical mine,

tight, cramped space, dirt, debris and dim lighting can vastly increase the risk of improper installation.

A gasket coated in lubricant exposed to these conditions can attract dirt and debris that may compromise the seal and ultimately the integrity of the entire joint. Completely dismantling and reassembling the housing in dim light can also lead to an increased risk of user error. Loose gaskets, nuts or bolts may be dropped or lost during installation, which results in lost time, increased ma-terial costs and higher risk of injury.

As joining technology continues to improve, a new generation of in-novation has emerged, including installation-ready technology.

Installation-ready couplings have taken a lot of challenges out of the mining pro-cess because they are so much easier and quicker to install, reducing the risk of human error and taking the guesswork out of installation.

For example, the Style SC77 Flexible coupling for shouldered steel pipes is one of the most popular pipe joining methods for dewatering lines.

There is no need to disassemble the coupling, thereby eliminating loose parts and ensuring consistent, faster installa-tions. By removing the need for disas-sembly, the gasket is not exposed to the dirty mine environment, decreasing the chance of joint failure and reducing the chance of incorrect fitting by installers.

Hard rock mines Hard rock mining tends to occur further below the earth’s surface. The deeper a mine descends, the greater the asso-ciated challenges and risks. Dewatering lines, in this instance, come up against huge amounts of head pressure, and

The successful removal of water from mine sites continues to be a difficult, and sometimes contentious, issue

INSIDE MINING 07 | 2016 27

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INSIDE MINING 07 | 2016 29

ONE AREA OF mining that holds considerable growth potential for the company is corrosion pro-

tection for processing plants, such as smelters and concentrators, according to Mareta le Roux, brand manager: Industrial Coatings, Kansai Plascon.

“We are a relatively minor player in this field at present. However, the strategic five-year plan, in terms of re-sourcing, is to put a focus on corrosion protection for processing plants in the mining industry. Our protective coating products meet all industry require-ments, and it is now a matter of driving them forward,” she states.

Corrosion protection is expensive to apply, and Le Roux indicates that it is essential to successfully complete the application of the coating on the first attempt. “Bearing this in mind, we pro-vide extensive training to mining con-tractors at no additional charge. It’s all about customers’ bottom line at the end of the day, and we are there to ensure that everything goes according to plan.”

Turnkey shopRolf Redelinghuys, national market manager: Mining & Minerals and Roadmarking, Kansai Plascon, notes that the company continues to main-tain its reputation as a market-leading paint supplier to the mining industry, thanks to its 360-degree turnkey solu-tion, which is not only comprised of the paint range, but also dedicated after-sales service and backup sup-port.“We are by far the biggest coat-ings manufacturer in Southern Africa,

and we offer a one-stop shopping ex-perience that our competitors cannot. Our service is not just selling protective coatings, but doing specifications. We are experts as far as that is concerned. We do not just sell the paint and walk away – we provide support throughout the process.

Our technical teams under-take site visits to check if the product is applied correctly, especially when it comes to corrosion protec-tion,” he explains.

In challeng-ing economic times, the current industry trend is to prioritise maintenance.

Redelinghuys believes that this works to the company’s advantage. “Mining companies are moving towards optimising and con-serving their assets, rather than replac-ing them with new ones. As a result, our sector sales have improved, and I am confident we will gain market share in the foreseeable future.”

Research and developmentWith regard to R&D, the company boasts a state-of-the-art laboratory in Durban, KwaZulu-Natal, which features dedicated teams working solely on in-dustrial and protective coatings.

“Our laboratory is world-class; there-fore, most of our R&D is done locally, based on local customer require-ments,” says Le Roux. Kansai Plascon also features a strong network of dis-tributors in sub-Saharan African regions

such as Namibia, Botswana, Zambia, Malawi, Zimbabwe and Mozambique, with plans to expand the network in East and West Africa. This network will enable the company to deliver its range of products in the quickest turn-

around times.

Future outlookOver the years, the company has devel-oped fundamentally strong relationships with some of the larg-

est names in the global mining industry.

Le Roux believes that this will work to the company’s ad-

vantage when promoting its protec-tive coating range.

“This is already bearing fruit, with a large gold mining operation with mines in East, West and Central Africa now specifying Plascon protective coatings for all of its processing plants.

We have also been supplying products to mines in the Zambian copper belt for a number of years. Further expansion in Africa holds the potential for measurable growth,” she concludes.

Mareta le Roux, brand manager, Kansai Plascon

A market leader in supplying decorative coatings and aerosol marking paint to the mining industry is Kansai Plascon. Although the company boasts a large market share in these areas, there is still room for growth.

INFRASTRUCTURE & CONSTRUCTION

All-round coating solutions

www.kansaiplascon.co.za

PROJECT MANAGEMENT

Given the current economic climate and subsequent focus on cost reduction, sustainability is being increasingly recognised by embattled mining businesses as a tool that can deliver efficiencies and impact the bottom line, says Environmental Resources Management Southern Africa.

SMART BUSINESSES are focusing more and more on maximising efficiencies. In a sustainability con-text, the focus falls on resource

efficiency and being able to better man-age inputs – such as water, energy or raw materials – and unintended outputs – such as waste, effluent or air emissions, includ-ing greenhouse gases – to unlock and sus-tain cost reductions and improve a firm’s contribution to sustainable development.

Clémence McNulty, principal consultant: Sustainability and Climate Change Team, Environmental Resources Management Southern Africa (ERM SA), points out: “Clearly, a proper sustainability strategy delivers a wide array of benefits. But in the current economic climate, the realisation is dawning that sustainable practice is cost-efficient practice.

Different strokes“Maximising efficiencies af-fects different companies in different ways. As a first step, a company must determine what its most material sustainabil-ity issues are and where it can make the biggest impact”. For resource-intense companies like local mining houses, resource efficiency measures will likely be a priority.

“For other companies, industries or ge-ographies, community conflict, soil and groundwater contamination or product stewardship may be more pressing issues”. In South Africa, resource efficiency ena-bled through effective sustainability data

management has become critical in view of resource constraints, rising utility costs and increasing regulatory requirements.

McNulty adds: “The focus on sustain-ability reporting is being reinforced by management determination to uncov-er continued savings, efficiencies and productivity gains, as well as mitigate business risk that can be highlighted by sustainability data, both at the site and at corporate level.

“Today, businesses are doing more with less. Sustainability data helps them do it by identifying areas where the biggest efficiency gains can be achieved.” Smart companies have the opportunity to turn sustainability into a pragmatic tool for sen-ior managers looking to achieve savings and maintain a competitive advantage.

ERM SA says that, even in tough trading conditions, companies

should always maintain their sustainability investment.

“In some cases, sustainabil-ity data measurement and

the quest for improvements in environmental practice are

mandatory,” says McNulty. “Statutory compliance is by no means the only driver. Smart businesses should realise that sustainability data can be turned into useful KPIs within management programmes, for achieving savings and higher productivity, and for minimising

potential future liabilities. Companies should look to move from simply report-ing to driving continuous performance improvements.” Because of the dire need to cut costs in a weak commodity market, mining has been identified by ERM SA as an area where the new effi-ciency-focused approach to sustainabil-ity has particular value.

Optimising efficiencyAreas for potential efficiency gains re-sulting from the proper use of data in the mining industry may include:• use of energy-monitoring systems as a

strategic management tool to analyse and verify trends and identify areas where energy use is wasteful, and effi-ciencies and savings can be achieved

• use of data and trend information in training to ensure workers understand the impact of working practices on energy consumption and costs, and to create accountability

• use of data to enable a coordi-nated management approach to energy and other resources, moving from a single department focus to a wide-ranging strategy involving all parts of the organisation

• equipment monitoring to ensure a plant is used effectively and identify variances against expected performance.

INSIDE MINING 07 | 201630

ERM SA sees the mining industry as a new area of focus

Sustainability’s growing role in efficiency

ABOVE Clémence McNulty, principal consultant, ERM SA

WorleyParsons adds value through our full scope of services from pit to port including studies, mine planning, impact assessments, permitting and approvals, project management, construction management and global procurement.

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Sustainability’s growing role in efficiency

INSIDE MINING 07 | 2016 31

Joslin Lydall, a senior consultant in ERM's Sustainability and Cli-mate Change Team, notes: “The new pragmatic approach to sustainability data is applicable in all industries, not just min-ing. Action points can be identified in a host of areas, not simply energy consumption and related financial aspects”. “Those making the progression from sustainability reporting to effective sustainability man-agement often focus on impacts and how much they cost the business. As soon as financial consequences are appre ciated, senior management begins to integrate sustainability into all decisions.

Finding funding“Once projects have been identified, companies could look at accessing money from grants, incentives and specialised funds to assist with unlocking these efficiencies. Governments and a number of development finance institutions make mon-ey available in the form of grants, tax incentives or preferential loans for resource efficiency projects,” states Lydall.

ERM SA is well placed to support companies on this journey, no matter at which point they currently are.

“We provide technical know-how combined with a deep understanding of how sustainability specifics relate to the busi-ness and stakeholder value. ERM SA can assist with identifying efficiency projects, developing business cases and accessing available grants, incentives and specialised funds for these projects”. “In the current economic conditions, optimising one’s sustainability approach and investment in this way is, in many cases, a smart thing to do because it can strongly con-tribute to the bottom line,” Lydall concludes.

INSIDE MINING 07 | 2016 31

As a first step, a company must determine what its most material sustainability issues are and where it can make the biggest impact

Flexible Power, Flexible CostWe understand a reliable power supply is the most important element of your mine operation. It can form a huge part of your capital expenditure. The option to rent removes the cost from your initial capital outlay. It improves your cash flow and enhances your project’s viability.

With Aggreko power solutions, we supply the power you need based on your changing requirements, allowing you to manage your costs in line with your mine operations.

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Aggreko, Power Specialists in Mining

GENSETS FOR ROBUST ENVIRONMENTSA particularly impressive line of products launched at Power and Electricity World Africa was a series of generator sets designed and engi-neered for critical applications that de-mand a robust, reliable source of power.

The QSK95 series of gensets from Cum-mins ensures uninterrupted operations for a variety of applications, including processes in the mining industry. Accord-ing to the company, the gensets exceed industry standards by providing 100%, one-step load acceptance in under 10 seconds. “This innovative product enjoys a rating of up to 3 500 kW and delivers high-horsepower output while achieving installation economies with a small-foot-print design. Innovation is about unlock-ing and unleashing new ways of thinking, delivering against a background of con-tinuous improvement,” says Andre Kuhn, general manager: Power Generation, Cummins Southern Africa.

The series of gensets are rated at up to 3.5 MW and 3.75 MVA. Not only do they offer a smaller footprint, but they also offer improved durability, lower main-tenance and lower fuel consumption. Cummins produces its own components, ranging from engines and alternators to transfer switches and control systems.

New vacuum for labsA compact, fully assembled and ready-to-operate high-vacuum system has been added to the Turbolab prod-uct range by Oerlikon Leybold Vacuum. The new system was designed to be used in laboratories, spectroscopy and micro balances as well as sputtering and evaporating systems. The system is available in either table-top or mobile cart variants. The table-top variant has a new diaphragm backing pump for the industry-proven TurboVac i Turbo-molecular pumps, which attain ultimate pressures of between 10-7 mbar to 10-10 mbar and pumping speeds for N2 of 65 ℓ/s to 430 ℓ/s, depending on the model selected.

MARKET NEWSfrom around the continent

NEW CONDITION MONITORING SERVICE To complement conventional condition monitoring practices, Joest Kwatani has developed a new service that evalu-ates the skill levels of its customers’ staff at their plants, as well as production and quality requirements.

Once these are linked to existing sys-tems, the company has the ability to pre-empt equipment failure, and retain valuable, long-term data on plant per-formance. The screening equipment manufacturer has complemented conventional condition monitoring practices with advanced testing and measuring technology.

“This assists our customers to achieve a continuous supply of quality production tonnage, while protecting company assets and reducing the total cost of ownership of plant and equipment,” says Kim Schoepflin, managing director, Joest Kwatani. She adds that adopting conventional condition monitoring, testing and measurement techniques

are not enough to ensure optimal op-eration of plant and equipment. “Mines should be working closely with original equipment manufacturers that are in a better position to develop a bespoke solution suited to the technology and its operating environment.”

Schoepflin predicts that the role of condition monitoring/testing and meas-urement in the future is likely to increase to counter a growing global trend in the mining industry to specify lighter screens and associated support structures when a plant is first designed, in an effort to contain costs.

Equipment auditing, including periodic condition monitoring, is used to assess the status of a screen at a point in time

According to John Russel, busi-ness development manager,

Integrated Pump Technology – distributor of Oerlikon Leybold Vacuum products within South-ern Africa – Turbolab can be

tailored to individual customer needs. “There is a choice of up

to six connected accessories that include purge gas or venting valves, cooling units, heater collars and vacuum measurement devices, all connected through built-in communication ports,” he explains. “A plug-and-play approach allows the user to connect a comput-er to the Turbolab via a standard LAN interface. The built-in web server then allows users to ac-cess all critical pa-rameters and conditions, and draw reports stored in an internal memory,” concludes Russell.

New technology for AngloThe first Loesche vertical roller mills and complete grinding series will be deliv-ered to Sinoma International’s Nova Cimangola plant in Angola.

The order includes one cement raw material mill with a capacity of 400 tonnes an hour and two cement mills, each with a capacity of 150 tonnes an hour. Other equipment like rotary star feeders, metal detectors, the engineering for the cyclones, classifier motors and the control system are also in Loesche’s scope of supply, as well as a two years’ worth of operation spare parts contract.

Andre Kuhn, general manager: Power Generation, Cummins Southern Africa

The Turbolab 80 workbench variant is a compact, easily operated high-vacuum system

Loesche cement mill

INSIDE MINING 07 | 2016 33

INSIDE MINING 07 | 201634

MARKET NEWSfrom around the continent

Orbitalum now in SAA new range of solutions from Orbit-alum Tools in tube and pipe welding preparation is now available from Downson & Dobson (D&D), a division of Actum Industrial.

Actum Industrial clinched the agency via Orbital Cutting & Weld-ing of Dubai, which represents both EH Wachs and Orbitalum. The company is looking to make inroads into the South African market, com-ments Kumar Sundaram, head: Mid-dle East and Africa, Orbital Cutting & Welding.

“The Orbimat range of welding equipment is ideal for the South African market,” says Greg Barron, group director, Actum Group. He adds that the range is also us-er-friendly and low on maintenance, which are critical factors in a low-skill environment such as Africa.

Welding screens for added safetyOne area that needs adequate safe-ty measures is where welding takes place. The workers need protection against weld splatter and fumes, and harmful UV radiation. This is where Apex welding screens come in to assist. The screens are available in various configurations to suit a vari-ety of individual requirements. The screens absorb, scatter and filter the light spectrum to create a safer

working environment for the welder and any co-workers and supervisors in the immediate vicinity.

Tested by the SABS for ultraviolet transmittance, conventional ma-terials gave readings of 0.0005%, 0.008% and 5.0%, as opposed to Apex readings of 0.005%, 0.001% and 0.005%. One version has a freestand-ing frame that allows easy handling and portability.

The feet of the screen are angled to allow optimum utilisation of floor space and screens can be butted together at a 90-degree angle. Tests for total visible light transmittance demonstrated incontestably that

Power supply for Orbital welding

conventional materials permit 78%, while Apex material allowed only 15.5% light transmittance – a dramatic differ-ence, particularly when one considers long-term exposure of workers and the consequent repercussions on their eye-sight and even their skin.

Materials handling solutions In these times of financial turmoil, it is important to diversify and focus on the needs of clients. And that is exactly what Voith has been doing. “Histori-cally, we have been heavily weighted towards the coal and power industry. However, diversification is important and has been a major focus of the company for some time now,” says Grant Robinson, vice-president: Mining & Metals EMEA, Voith.

The company’s major focus is on ma-terials handling, while its main products can be used in various applications. The company is also well known for its hydrodynamic couplings, offering a complete range of solutions, from constant-fill to fill-control couplings. Although its larger customers mainly consist of the major coal mines, Voith covers all mining commodities.

The opportunity for the company going forward is moving from being a component supplier to being a solu-tions provider. For example, the recent acquisition of German company HESE

The feet on Apex welding screens are angled to allow optimum utilisation of floor space

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INSIDE MINING 07 | 2016 35INSIDE MINING 07 | 2016 35

means that there are additional materials handling solu-tions for customers. “We can now offer chutes, pulleys and drive solutions, such as the TT drive (a belt-on-belt drive) and drive packs. In specific applications, such as very long overland belts or long inclined belts, the TT drive reduces capital investment signifi-cantly. Our company remains consistently focused on customer needs, which include the need for reliable engineer ing, availa-bility and reduced cost of ownership,” says Robinson.

The application engineering team can design drive solutions across various applications, such as fans, mills, crushers, conveyors and steel mills. “Our service team is multiskilled and can carry out on-site fault finding, instal-lation and commissioning, vibration monitoring, thermal imaging of equipment, and both static and dynamic la-ser alignments,” concludes Robinson.

Simplifying water use licencesThere is no need to grapple with the complexities of imple-menting and renewing water use licences (WULs), as global consulting engineering and science expert SRK Consulting has prepared a manageable system to simplify this process.

The Licence Implementation Plan (LIP), which includes Excel-based templates, addresses a range of tasks, systems and procedures for mines to adopt. Among the standard monitoring and reporting requirements, for instance, is the need to install and maintain an appropriate flow metering system, and to put in place monitoring programmes and reports for all quantity and quality limits. The collected data must then be assessed against WUL limits, and corrective action may need to be taken where the limits are exceed-ed. The solution offers a complete training programme to put all those responsible on the same page.

“Our approach is to get back to basics, and to help cli-ents implement a sustainable process with a clear designa-tion of roles, backed up by the necessary data-collection and supporting technology,” says Jacky Burke, principal scientist, SRK Africa.

“It needs to start with everyone understanding the pur-pose of the WUL and the regular deliverables it demands. Then the WUL requirements must be incorporated into the day-to-day operations, so that both management and engineering functions can feed the necessary data into the process on a regular basis.”

She adds that one of the main challenges with imple-menting the WUL is that the water-related data that mines collect often does not talk directly to what the WUL requires. “In some cases, the data itself is not being collected, so the person responsible needs to motivate to management for the budget for the necessary resources to collect good and reliable data. In either situation, our LIP helps mines to remain compliant, as efficiently as possible.”

An example of the TT intermediate drive for belt conveyor systems

EVENTS

TECHNOLOGICAL INNOVATION in mining will automatically pique an engineer’s interest; however, for the junior mining sector, there

is a much broader spectrum of innova-tive opportunities.

On 2 June, promising news emanated from industry stakeholders at the 2016 Junior Indaba, including the AU Com-mission and Department of Minerals and Resources.

Keynote speaker Dr Nkosazana Dlamini Zuma, chairperson, AU Com-mission, re-emphasised that the junior mining sector is critical to Africa’s de-velopment, since the exploration of old and new deposits of minerals have the potential to catapult the continent’s growth and development to higher levels. Dlamini Zuma noted that despite the riches and potential opportunities within the Africa, the continent’s peo-ple are among the poorest in the world and the continent is home to some of the most glaring inequalities.

Junior mining indaba

Mindset shift“Africa’s abundant resources should be used to spur on industrialisation, eco-nomic modernisation and diversification towards an integrated and peaceful Africa with shared prosperity,” she stat-ed. Citing the strengthening of mapping systems and a move away from current corrupt and rent-seeking tendencies, the negotiation of contracts that puts African interests first and the creation of sustainable linkages with local econo-mies require a change in mindset.

She also announced the launch of the African Minerals Development Cen-tre, aimed at supporting and ensuring that African governments are better equipped to negotiate better terms and contracts in mining.

In order to implement this strategy, Dlamini Zuma called on the mining and education sectors to invest in much needed skills, particularly as they relate to science, technology, engineering and mathematics areas.

Forward, togetherSouth Africa’s Deputy Minister of Minerals and Resources, Godfrey Oliphant, acknowledged that con-sultation and collaboration have to be the watchwords of the local min-ing sectors if they are to succeed in moving forward.

Deputy Minister Oliphant men-tioned that, in the context of the overall state of the mining sector nowadays and given the economic environment, the growing financial markets volatility, and the general expectations around the com-modity markets, the focus on junior mining is both timely and critical for policy engagements.

The Junior Indaba delegates were encouraged and invited to explore a number of opportunities in other African countries, including Rwanda, Nigeria and Botswana, by companies successfully operating in these territories.

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INSIDE MINING 07 | 201636

Stemming from conversations a year ago at the Junior Indaba, innovation in the junior mining space has moved on to how quickly the sector can implement innovative technologies, develop new investment strategies, adapt in virgin territories and communicate clearly with community stakeholders.

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