November2014

Vol 10 No 11www.crown.co.za

MODERN MININGIN THIS ISSUE… Expansion at Black Rock Blanket targets 75 000 oz/a The lightning threat to mines Tschudi copper project on course

http://www.hino.co.za/

November 2014MODERN MINING1

COVERHeadgear for the new ventilation shaft at the Gloria mine in the Northern Cape, part of Assmang’s Black Rock Mine Operations (BRMO). WorleyParsons has a heavy involvement in the current expansion at BRMO, as our article on page 20 recounts (photo: Charles Corbett on behalf of WorleyParsons).

EditorArthur Tassell

Advertising ManagerBennie Ventere-mail: benniev@crown.co.za

Design & LayoutDarryl James

CirculationKaren Pearson

PublisherKaren Grant

Printed by:Shumani Printers

The views expressed in this publication are not necessarily those of the editor or the publisher.

Published monthly by:Crown Publications ccP O Box 140, Bedfordview, 2008Tel: (011) 622-4770Fax: (011) 615-6108e-mail: mining@crown.co.za

Average circulation(July–September 2014)

4 366

MODERNM I N I N G

CONTENTS

MINING NEWS4 FQM’s Zambian growth projects on course

5 Mawson West starts Kapulo commissioning

6 First Ghaghoo sales expected in early 2015

7 Wescoal’s revenue nearly doubles

8 Tongon remedial measures start to take effect

10 Langer Heinrich back on track after poor quarter

12 Sinking of Synclinorium shaft now complete

14 Kibali approaches “operational steadiness”

16 SNL study indicates 25 % drop in exploration

18 Mining contractor appointed for Asanko

4 24

20

ARTICLES

PRODUCT NEWS52 New excavators launched by Caterpillar

52 MechCaL installs fans at platinum mines

53 Sentinel to get world’s largest cone crusher

53 Hytec distributor shows strong growth

54 Pilot Crushtec supplies project in Mozambique

55 Cone crusher demonstrates its potential

56 Weba wins multimillion dollar US contract

57 Osborn secures first export order to Malaysia

58 Multotec introduces ion exchange technology

60 EnI Electrical awarded Namibian mine contract

REGULARS

30

COVER20 WorleyParsons playing key role at

Black Rock

GOLD24 New plus-1 000 m shaft for Blanket

gold mine

MINE SAFETY30 The lightning threat to mines –

real or imagined?

FEATURE – CONSULTANTS/PROJECT HOUSES34 SRK helps pave the way for giant iron ore

project

38 New MD takes over at The Mineral Corporation

40 Tschudi contract on course and within budget

44 SNC-Lavalin can bring cost certainty to mining projects

FEATURE – MINING SIMULATORS 46 Cutting-edge simulator technology

comes to Africa

51 New platform “redefines” simulator-based training

40

http://www.beinternational.co.za/

November 2014MODERN MINING3

COMMENT

With the year drawing to a close, I have to say that 2014 has been a tough ride. Certainly, in the 15 years or so that I’ve been covering mining I’ve not

seen conditions in the industry quite as bad as they have been in recent months. The problem, of course, is global but we’ve been particularly affected here in South Africa as a result of the long-running strikes which devastated the plat-inum mining sector earlier this year.

Despite the poor market, listed mining com-panies operating in South Africa appear to be surviving quite well, with some metrics even showing improvement over 2013. My source for this is PwC, which has just released the sixth edition of its annual report or survey enti-tled SA Mine.

I was expecting the report – which highlights trends in the industry – to be full of ‘doom and gloom’ but this in fact is only partially the case. While PwC describes conditions as “challeng-ing”, the mining industry generally continued to operate profitably during the period under review (roughly the 12 months to the end of June 2014), albeit at a lower level than in the preceding year.

Based on the financial results of 37 mining companies with a primary listing on the JSE or a secondary listing on the JSE but with min-ing operations mainly in Africa, the report was introduced to members of the media at a recent presentation in Johannesburg. On hand to explain its main findings were Dion Shango, Energy and Mining Assurance Partner and Deputy Regional Senior Partner at PwC, and his colleague Andries Rossouw, Energy and Mining Assurance Partner.

Revenue for the year recorded by the com-panies was actually up on the previous year by 12 % (R327 billion versus R291 billion) and the report notes that balance sheets remained strong, with stable liquidity. Net profits were down quite sharply (R6 billion as compared to R29 billion in the prior year) but at least the industry kept its collective head above water. Distribution to shareholders held up reasonably well (R19 billion compared to R29 billion) but impairment provisions more than doubled.

Coal retained its position as South Africa’s leading mining commodity revenue generator, accounting for 28 % of all mining revenue, fol-lowed by PGMs (22 %). Remarkably, given the long-term downward trend in South Africa’s gold mining industry and the fact that the gold price has dropped by nearly 50 % since

achieving a 10-year high in 2011, gold’s share of the revenue pool actually increased – from 14 % to 20 %. This was bigger than iron ore at 19 %.

On the subject of safety, SA Mine 2014 has this to say: “All major commodities (gold, plati-num, coal) have shown a decrease in fatalities, injuries and accidents between 2012 and 2014, with the trend continuing in 2014. The fatal-ity rate per million hours worked has shown a steady decrease over the last decade.” In terms of lost-time injury frequency per million man hours, the best performing company during the year in review was Kumba Iron Ore, followed closely by Exxaro and Assore.

On the issue of empowerment at board level, the industry continues to do well, with PwC pointing out that mining companies are cur-rently exceeding the minimum requirements of the Mining Charter.

Moving to labour costs, the report says that these are still by far the biggest cost compo-nent of the industry but notes that the “share of labour costs decreased marginally from 42 % to 40 % in the current year.”

Based on PwC’s figures, incidentally, the remuneration gap between workers and min-ing management – while possibly narrowing – remains disturbingly high. “The median of total CEO pay within the large South African mining companies is R18 million, comprised of guaranteed package (salary and benefits) of R7 to 8 million, a cash bonus of around R3 mil-lion and the balance in share awards totalling R7 million,” the report states. “This quantum, while many times that of junior workers, is in line with large listed companies in other indus-tries in South Africa. Global mining companies pay their CEOs two to three times this amount!”

Finally, how is the industry’s capex bearing up? Not particularly well, according to PwC, which says it decreased by 13 % in 2014 over the prior year to R57 billion.

Looking ahead (and this my personal obser-vation and not PwC’s), there doesn’t seem to be too much in the project pipeline, with Vedanta’s recent decision to proceed with its US$782 million investment in the 250 kt/a Gamsberg zinc open-pit mine in the Northern Cape and an integrated 150 kt/a roaster at its Skorpion operation in southern Namibia per-haps being the exception that proves the rule. Having said this, the mining industry is noth-ing if not resilient and I’ve no doubt will handle the difficult business environment in 2015 with at least reasonable success.Arthur Tassell

PwC provides a snapshot of South African mining

The median of total CEO pay within the large South African mining companies is R18 million … . This quantum, while many times that of junior workers, is in line with large listed companies in other industries in South Africa.

SA Mine 2014

4MODERN MININGNovember 2014

MINING News

In its recently released quarterly report for the September quarter, copper and nickel miner First Quantum Minerals (FQM) says its Sentinel copper mine project in north-west Zambia has advanced to 98 % completion, now has grid power and has entered the commissioning stage. It also notes that the phase 1 copper smelter at its Kansanshi mine near Solwezi in Zambia has advanced to 92 % overall completion with construction completion expected during Q4 2014.

“On the smelter, construction contin-ued apace during the quarter and cold commissioning has been either completed or is underway in many areas. Sentinel crossed several milestones during the quarter including the installation, dry run commission and hydro testing of the first semi-mobile in-pit crusher and connection to the national power grid. As previously discussed, Sentinel’s Train 1 start-up is being synchronised with that of the smelter,” says Philip Pascall, First Quantum’s CEO and Chairman.

“When our latest projects, being the smelter and Sentinel, are completed and operating, they are expected together to employ an additional 2 400 people, add significantly to Zambia’s copper produc-tion and contribute meaningfully to its gross national income. It is therefore of

concern for the company that the tax rules will be changed at a time when stabil-ity in mining fiscal policy is crucial in the encouragement and support for further investment in our industry and in Zambia.”

Phase 1 of the smelter will have a processing capacity of 1,2 Mt/a and will process concentrate from both Kansanshi and Sentinel. The capex involved is US$850 million. Phase 2 is being planned to increase capacity to 2 to 2,4 Mt/a in 2017.

First Quantum’s Zambian growth projects on course

The Phase 1 smelter at Kansanshi showing anode casting area (photo: FQM).

The Sentinel mills seen during the installation phase (photo: FQM).

Sentinel’s processing facility will have a target throughput rate of 55 Mt/a of ore at an average grade of 0,5 % copper. Higher grades are expected in the first six years of the mine life, which would provide an annual production rate ranging between 270 000 tonnes and 300 000 tonnes of copper. The plant comprises three in-pit crushers delivering to a crushed ore stock-pile providing a live capacity of 80 000 tonnes. Two milling trains, each compris-ing a 28 MW SAG mill and a 22 MW ball mill, will produce a final grind of 80 % pass-ing 212 micron for flotation. Four banks of rougher-scavenger flotation cells, each utilising seven cells of 300 m3 capacity, followed by three stages of cleaning, will provide a recovery of over 90 %, into a con-centrate of about 24 % copper.

Sentinel forms part of the Trident proj-ect along with the new Enterprise nickel mine, which is located approximately 12 km to the north of Sentinel. In the quarterly report, FQM says that environ-mental approval has been granted for the Enterprise mine and work continues towards pre-stripping. Construction has begun on the nickel processing facility at Sentinel, which will be commissioned on Sentinel copper ore during 2015. The mine will have the capacity to produce between 38 000 and 60 000 t/a of nickel in concentrate.

The overall capex for the Trident project is approximately US$2 billion.

November 2014MODERN MINING5

MINING News

Australian miner Mawson West, which is listed on the TSX, has begun commissioning its Kapulo open-pit copper project in northern Katanga in the DRC. Ramp-up to nameplate capacity is expected to be reached in Q1 2015, targeting a production rate of approximately 20 000 tonnes of copper in concentrate annually when completed. The current mine life is six years but there is scope for this to be extended.

Kapulo is located 124 km north-east of Mawson West’s operating mine at Dikulushi and is also governed by the Dikulushi Mining Convention.

Front-end construction of the plant from the crusher to the crushed ore stockpile is now complete and electrical and mechanical com-missioning has commenced. The grinding circuit electrical and instrumen-tation is also complete. In the wet plant, the flotation cells have been installed, as well as the filter press and thickeners. Flotation cell piping and electrical cabling installation continues on schedule. Diesel generation units, transformers and MCs have been commissioned and are now energised.

The raw water, process water, potable water tanks and supply systems have been installed and the tailings storage facility was scheduled for completion in early November 2014. The raw water dam is complete.

With US$96 million of construction capi-tal spent on the Kapulo project as at the end of September 2014 (US$9 million during Q3 2014), the majority of key components are now installed and services engaged. Construction capital costs have been reduced to approximately US$110 million, from an estimated US$124 million as pre-viously announced. This – says Mawson West – is a result of scope modifications, construction effi-ciencies, productivity improvements and reduced manufacturing and installation costs.

Mawson West starts Kapulo commissioning

Two views of Kapulo showing (right) the flotation area with rougher conditioning tank in the foreground and (below) the thickeners (photos: Mawson West).

6MODERN MININGNovember 2014

MINING News

Gem Diamonds, listed on the LSE, has issued an interim management statement detailing the company’s operational and sales performance for the period 1 July 2014 to 30 September 2014 (Q3 2014).

It says in the statement that approxi-mately 4 000 carats of diamonds had been recovered at its new Ghaghoo underground mine in Botswana’s Central Kalahari as at the end of the reporting period. Ultimately, Ghaghoo is designed to produce between 200 000 and 220 000 carats a year in phase one.

Gem notes that Ghaghoo was offi-cially opened by President Seretse Khama Ian Khama on 5 September 2014 (an event which was covered in an article in our September issue). It says the major ingress of water that occurred at the mine has been managed effectively with final

sealing operations underway and that development is progressing in the first four production tunnels on Level 1. A trial stope on Level 0 has been prepared for training purposes.

Work continues with minor refinements to the Ghaghoo treatment plant in readi-ness for full production.

Gem Diamonds’ CEO, Clifford Elphick, commented: “The official opening of the Ghaghoo mine was an important mile-stone for the company. We are pleased to have completed the construction of the mine on time and within budget and to have overcome the challenges posed by developing a decline through some 80 metres of sand. The first sale of the Ghaghoo production will occur in February 2015 to coincide with the first Letšeng sale in 2015.”

Botswana’s President, Lieutenant General Seretse Khama Ian Khama, on a tour of the Ghaghoo mine during the official opening recently (photo: Gem Diamonds).

First sales of Ghaghoo diamonds expected in early 2015Panoramic view of the ‘front end’ of the processing plant – including the AG mill – at Ghaghoo (photo: Gem Diamonds).

As most readers will know, the Ghaghoo kimberlite is accessed via a1,2 km long decline developed through the sand cover overlying the kimberlite orebody using a hydraulically operated open-faced tun-nel shield (OFTS). Weighing more than 100 tonnes, the OFTS was used to place the thousands of concrete segments required to line the so-called ‘sand tunnel’ portion of the 8 deg decline extending over a dis-tance of 473,3 m.

While a mining contractor was respon-sible for the ‘sand tunnel’, the remaining portion of the decline through basalt was undertaken in house by Gem after removal of the shield in July 2013. The kimberlite orebody was intersected in November last year on Level 0 at 134 m below surface.

As regards the processing plant, this incorporates an autogenous (AG) mill, only the second in Botswana (the first is at Lucara’s new Karowe mine near Orapa). The use of AG milling reduces the downstream plant size and enables better liberation with greater recovery of fine diamonds. It also reduces the risk of breakage of large diamonds. Apart from the AG mill, other elements of the plant include a 100 t/h primary crusher, a 65 t/h DMS module and a recovery section that uses wet X-ray machines and a grease belt scavenger unit.

Gem’s flagship asset is the Letšeng mine in Lesotho, which delivered a strong per-formance during the third quarter. Some 28 365 carats were recovered in Q3 2014 (28 623 carats in Q2 2014) and an average value of US$2 603 per carat was achieved in the quarter. An exceptional 197,6 carat diamond recovered in July 2014 was sold during the period for US$10,6 million.

November 2014MODERN MINING7

MINING News

J u n i o r co a l m i n e r and supplier Wes-coal Holdings has a n n o u n c e d a n

increase of 92,8 % in revenue to R897,8

million in its interim results for the six months ending Sep tember 30,

2014. It also reports that headline earnings per share are up by 33,3 % and operational EBITDA by 73,4 %.

“The Group’s growth strategy and acquisitions have been hugely beneficial, contributing substantially to our margins,” comments CEO Andre Boje. He adds that Wescoal’s excellent results clearly indi-cate the input from MacPhail acquired in October 2013. “This acquisition has breathed new life into the trading divi-sion and places the Wescoal group in the unique position of having a sophisticated trading division servicing the domestic market together with a mining division. The division has been rebranded under the banner Wescoal Trading and the integra-tion of the operation is almost complete.”

Highlights for the period include the finalisation of both the Intibane phase 2 transactions and the acquisition of the Muhanga coal processing plant near Middelburg. “The Intibane phase 2 mining right is significant in that it extends the life of this highly profitable operation to the end of 2016 and negotiations are at an advanced stage for a similar extension at the Khanyisa mining operation,” says Boje.

The mining division has just assumed ownership of the Muhanga coal process-

Waterberg core drilling utilises 24 machinesPlatinum Group Metals (PTM) has announced the completion of approximately 7 000 m of vertical core drilling on budget at the Waterberg Joint Venture and Waterberg Extension projects (collectively the Water-berg projects) since June 2014 utilising 24 machines. It says the drilling programme has been successful at expanding and detailing the Waterberg T, F and Super F Zones as part of an ongoing Pre-Feasibility Study (PFS).

According to PTM, Waterberg represents a new deposit type in the Northern Limb of the Bushveld Complex amenable to mechanised mining. Intercepts include hole WB123 on the Waterberg Joint Venture property returning an 80 m intercept of 4,80 g/t 3E (1,41 g/t platinum, 3,18 g/t palladium, 0,21 g/t gold, 0,10 % Cu and 0,23 % Ni) from 370 to 450 m. The true thick-ness of this intercept is estimated at 63 m.

A new T Zone intersection in hole WE048 on the Waterberg Extension (Waterberg II) returned a 2,9 m intercept of 3,12 g/t 3E (0,88 g/t platinum, 2,10 g/t palladium and 0,14 g/t gold). This intersection confirmed the extension of the T Zone towards the north.

The Waterberg III area on the Waterberg Extension property has now been confirmed by drilling as a target area for extension of the Waterberg mineralised zones. Approximately 1,9 km north of the current resource, both the T Zone and F Zone have been confirmed in a single borehole (WE046) with a lower grade F Zone intercept including 2,5 m at 2,00 g/t 3E (0,61 g/t platinum, 1,33 g/t palladium and 0,06 g/t gold).

An updated resource estimate for Waterberg is to be completed by Coffey prior to the completion of updated mine and proj-ect designs for the ongoing Pre-Feasibility Study. Engineering firm DRA has commenced work and is on track with the PFS.

ing plant and even though the Elandspruit project has not yet been commissioned, Muhanga has begun production to supply the existing customer base which sources from the operation.

Boje says excess Run of Mine (ROM) in the market has been acquired for this and management is upbeat about the poten-tial contribution from the project which will complement the Elandspruit mine once production begins in early 2015.

Boje says the Group is immensely excited with regard to production starting at Elandspruit. “This secures a life of mine at this operation in excess of 15 years. Coupled with the Muhanga coal process-ing plant, Wescoal will be able to service clients and immediately earn income from this acquisition.”

The only outstanding issue at Eland-spruit is the much publicised water use licence. However, Wescoal says the regu-latory authorities have been sensitised as to the impact of the continued delay in the issuing of the licence. “We have been assured of a sharp focus on the finalisation of this matter,” comments Boje.

The mining division increased pro-duction by 5 %; EBITDA contribution, however, increased by 38,7 % due to the bulk of the volume being delivered from the Intibane Colliery. Wescoal Mining produced 942 291 tons of coal for the six months compared to 895 185 tons in the same period in 2013. The division pro-duced revenues of R296,8 million (2013: R261,7 million), an increase of 13,4 %, operational EBITDA of R67,8 million (2013: R48,9 million) and profit from operations of R38,0 million (2013: R27,7 million).

Wescoal’s revenue nearly doubles

Wescoal CEO Andre Boje.

8MODERN MININGNovember 2014

MINING News

The remedial measures implemented to overcome the technical problems that have impacted Tongon – located in Côte d’Ivoire – are starting to produce the desired results with the mine’s per-formance improving, says Randgold

Resources Chief Executive Mark Bristow.Speaking recently at a briefing for

local media at the mine, Bristow said mill throughput and the recovery rate, the main challenges faced by the mine, were both being turned around by a determined

New tertiary crusher installation at Tongon (photo: Randgold Resources).

Tongon remedial measures start to take effecteffort on the part of the Tongon manage-ment team. Their action plan also includes the replacement of the faulty crushers, which has now been completed with the new crushers currently being integrated into the larger circuit, and the expansion of the flotation circuit, which will start when the necessary equipment arrives on site shortly.

“By early next year Tongon should have achieved its targeted performance levels, but the improvement is already evident, and despite the setbacks and challenges the management team has had to con-tend with, the mine should come within 10 % of its production guidance of 260 000 ounces for 2014, with costs well contained,” Bristow said.

In the meantime, he said, infill drilling in the mine’s south pit had confirmed the potential for increasing the resource and the mineable reserve to replace ounces depleted during the year.

Elsewhere in Côte d’Ivoire, Randgold has acquired two new permits while more are pending. Thanks to the confidence inspired by the country’s new mining code, Bristow said, Randgold was stepping up its investment in exploration there. It was also rolling out its sustainability programmes in line with the code.

Bristow said Randgold was working closely with the Ivorian Ministry of Health and local authorities to ward off the poten-tial threat posed by the Ebola outbreak elsewhere in West Africa. “Although the Ebola infestations are not present in Côte d’Ivoire, we believe in being prepared and so does the government, and we are implementing extensive measures to pro-tect the health of our employees, as well as our surrounding communities,” he said.

New Chairman at BerkeleyBerkeley Mineral Resources Plc, which is tar-geting the processing of mining tailings at Kabwe, Zambia through its wholly-owned subsidiary, Enviro Processing Ltd (EPL), has announced that Alex Borrelli has been appointed as Chairman of the Board. He suc-ceeds Masoud Alikhani who resigned from the Board on 17 October 2014 for health reasons.

Borrelli qualified as a chartered accoun-tant with Deloitte, Haskins & Sells, London in 1982. He then moved into investment

banking, with Shore Capital, Granville and CCF Laurence Prust, and has acted on a wide variety of corporate transactions in a senior role for over 20 years. He was, until recently, chairman of Ablon Group Limited, a real estate group with a portfolio valuation of Euro 400 million in Central Europe.

Acting CEO Mark Wainwright commented: “We welcome Alex as the company’s new Chairman. The technical specifications of the washplant tailings processing plant at Kabwe are currently being finalised by our consul-tants and the Board is intent on proceeding to production as soon as possible.”

November 2014MODERN MINING9

MINING News

Kibo Mining has announced the com-mencement of a Definitive Mining Feasibility Study on the Imweru gold project, its flagship gold project within the Lake Victoria goldfields region of Tanzania. Imweru contains a total esti-mated indicated and inferred gold resource of 550 000 oz. The Imweru DFS will run concurrent to the Rukwa Definitive Mining Feasibility Study (which is already underway) and means that both the com-pany’s flagship projects will now be in early development.

The decision to commence the Imweru DFS follows the conclusion of an internal optimisation study of the Imweru project. This study indicates that resource data gathered from previous exploration work is sufficiently robust to support viable gold production from Imweru in the near to medium term, subject to necessary fea-sibility work and mine planning.

Kibo has appointed Minxcon Projects to conduct the Imweru DFS which is esti-

mated to be completed within 12 months. The Imweru DFS will be delivered in

two clear stages. Stage1 will comprise the Pre–feasibility Study (PFS), covering conventional pre-feasibility elements asso-ciated with the development of a potential gold mine. The PFS will be delivered in two phases to ensure systematic de-risking of the project. Stage 2 will comprise the Definitive Feasibility Study (DFS), which will incorporate all the work done during Stage 1. Stage 2 will aim to finalise the mine design as well as a bankable financial model.

Comments Louis Coetzee, CEO of Kibo Mining: “Announcing the Imweru DFS is a significant milestone for Kibo. The com-pany will have both its flagship projects in early development and has now officially entered Stage 3 of its declared three-stage corporate strategy.

“Stage 1 focused on the acquisition of projects with good value propositions, Stage 2 focused on the development of the

acquired value propositions and Stage 3 will focus on the realisation of the value that was created during Stage 2. Of partic-ular importance is the fact that Rukwa and Imweru were brought to their current sta-tus amidst an extremely difficult market in which it was – and remains – extremely dif-ficult to access funding. This was achieved in accordance with the schedule which was flagged in 2012 at the time Kibo’s new corporate strategy was announced.

“Careful planning preceded the deci-sion to commence with the Imweru DFS to ensure that adequate resources are in place to conduct and manage both studies simultaneously. Particular care was taken to make sure that implementation of the Imweru study will not in any way affect work on the Rukwa coal to power project, which remains the company’s number one priority.”

Kibo was established in early 2008 to explore and develop mineral deposits in Tanzania. The company was admitted to AIM in London in 2010 and the AltX in Johannesburg in 2011.

Kibo initiates feasibility study on Imweru

10MODERN MININGNovember 2014

MINING News

In its report on the quarter ending 30 September, Australia’s Paladin Energy says that production at its Langer Heinrich uranium mine in Namibia amounted to 466 t of U

3O

8 during the reporting period,

which was 23 % below the previous quar-ter’s production. It adds that production post quarter is back on track.

Mining activities during the quarter concentrated mainly on the western side of the deposit in Pit H1 and H2 and were discontinued in Pit G3 on the eastern side of the deposit early in the period. Mining volumes remained on target and consis-tent with budget.

ROM ore stockpiles were full at the end of the quarter at approximately six weeks’ supply and are being supplemented by medium-grade ore from long-term stock-piles in line with the mine plan.

Plant throughput, recoveries and hence production were impacted dur-ing the reporting period, primarily due to planned maintenance, but also due to scale formation in the process plant that led to a further, unanticipated reduction in throughput and recovery.

Paladin says the source of the scale

Langer Heinrich back on track after poor quarterformation was identified and routine anti-scalant addition procedures were modified during the quarter. By the end of the quar-ter, scale formation had been brought under control and all major affected equipment had been cleaned. In the case of affected process water pipelines, these have either been replaced or, in the case of major pipelines, duplicated to provide future redundancy.

The resin replacement was undertaken, as planned, during the annual scrubber reline and flash/splash annual mainte-nance and inspection stoppage. By the end of September, resin had been replaced in both NIMCIX systems and they were each operating, as anticipated, above budget efficiency and uranium transfer levels. This was the first resin replacement under-taken for either NIMCIX systems since they were commissioned in 2012 and Paladin says resin replacement scheduled in the next financial year is expected to have immaterial impact on production with the optimised procedures now established for this change out.

The process optimisation strategy will continue to focus on the better utilisation

of existing equipment and unit operating costs. In addition, specific focus has been directed towards operator training and supervision, as well as further integration of process control.

A nano-filtration circuit, similar in prin-ciple to the very successful acid recovery plant at Paladin’s Kayelekera mine in Malawi (which is on care and mainte-nance), is under construction at Langer Heinrich. This plant is the first phase in a range of innovations and optimisations aimed at achieving a substantial reduction in ion exchange (IX) and leach reagent consumptions as well as increased overall recovery.

The plant in question is designed to recycle up to 30 % of the sodium bicarbon-ate needed for the operation of the plant, and, in so doing, will also reduce total sodium hydroxide consumption by up to 30 %. These two reagents alone represent a significant proportion (around 50 %) of process operating costs.

Construction is now well advanced and the Bicarbonate Recovery Plant (BRP) is scheduled for commissioning in the March quarter 2015.

The Langer Heinrich uranium mine in Namibia. Production at the mine in the September quarter was 23 % below the previous quarter’s figure but Paladin Energy says that production post quarter is back on track (photo: Paladin Energy).

November 2014MODERN MINING11

MINING News

FQM moves towards a JV interest in Sese First Quantum Minerals Limited (FQM), which has major copper mining opera-tions in Zambia (including the huge Kansanshi mine), and African Energy Resources Ltd (AFR) have executed a binding Heads of Agreement (HOA) under which FQM can earn a 75 % joint venture interest in the Sese project in Botswana and carry AFR’s interest through to commercial operation of one or more integrated power projects.

FQM has also agreed to subscribe for 69 million shares in AFR by way of a pri-vate placement to raise approximately A$3,8 million.

African Energy is developing the Sese Integrated Power Project (SIPP) at its 2,5 billion tonne Sese coal deposit in Botswana. SIPP will have the potential to supply power to Botswana, Zambia, South Africa and Namibia.

African Energy has completed a num-ber of milestones for the Sese project which – it says – have reduced develop-

ment risk. These include completion of Phase 1 of the definitive feasibility study to evaluate a coal mine to provide fuel for an initial 300 MW power station. No further technical studies are required until a boiler manufacturer has been selected.

In addition, an Environmental Impact Assessment for the first 300 MW inte-grated power project and coal mine at Sese was approved by the Department of Environmental Affairs in Botswana on 1 September and is valid for project initia-tion within five years. A water allocation of up to 2,8 Gl per annum from the nearby Shashe Dam has been approved for project use, sufficient for approximately 750 MW of power generation and associated coal mining.

Located 50 km south of Francistown, the Sese project reportedly provides the potential for low-strip ratio open-pit min-ing of the entire resource due to its large strike-extent, thick coal seam and proxim-ity to surface.

IFL to mine at Rooderand Ferrochrome producer International Ferro Metals (listed under the symbol IFL on the LSE) has signed agreements with Chrometco Limited to commence mining at Chrometco’s Rooderand LG6 open-pit mine and to pur-chase the mined ore.

The exploration drilling programme at the Rooderand mine has been completed and Phase 2 of the drilling has begun and is expected to be completed by March 2015. As announced in September 2014, IFL is aiming to mine up to 200 000 tonnes of LG6 ore over a 12-month period, with the poten-tial for further mining, depending on the success of Phase 2 of the exploration drill-ing. This would allow the company to obtain higher-grade feed stock for its furnaces, resulting in more flexible and cost effective operations.

Under the ore sale agreement, IFL will pay Chrometco a portion of the net profits per tonne of ore mined, after deducting all costs associated with the mining.

12MODERN MININGNovember 2014

MINING News

Murray & Roberts Cementation Zambia has reported completion of the sinking of the Synclinorium shaft project in Kitwe, Zambia for its client Mopani Copper Mines (MCM). “The last blast of the main shaft took place on 30 September 2014 with the shaft at a final depth of 1 280,85 m below the shaft collar,” says Neil Mackay, Project Manager.

The scope of work comprised a blind sink of a 7 m diameter downcast lined shaft with a bulk air cooler level, two electrical cubbies and two stations. The equipping and commissioning of the shaft began at the end of October with the erection of a new headgear, winder and roping up of the shaft scheduled for 2015.

Sinking of Synclinorium shaft in Kitwe now complete

The current date for commissioning of the shaft is December 2015. The Murray & Roberts Synclinorium shaft team has worked closely with the Mopani Copper Mine Synclinorium project team towards the common goal of helping the project reach the safe stage where it is today.

Noteworthy achievements at the Syn-clinorium shaft project to date include a record 96 m of sinking and lining achieved for the month of August 2013 and a Lost Time Injury Free figure of 290 days to date. A challenge to date has been the pumping of up to 24 000 litres of ground water daily from the shaft. This groundwater is pumped to the surface from where it is diverted into a settlement pond for treatment.

“We intersected a 28 m dyke, from 1 040 m to 1 068 m, and sank through it without incident, a notable achievement given that the rock is very hard and sus-ceptible to scaling. This has necessitated support to within 1 m of the shaft bottom in order to increase worker safety,” Wyllie Pearson, Senior Project Manager, Murray & Roberts Cementation Zambia, says.

Equipment deployed on the project by Murray & Roberts Cementation Zambia includes stage and kibble winders, a five-boom jumbo shaft drill rig, a five-deck working stage with a cactus grab, two mini excavators and an automated batch plant. All equipment is serviced in a comprehen-sive on-site workshop by a well-trained team to ensure operational excellence and adherence to stringent safety measures.

Murray & Roberts Cementation Zambia has also pioneered several health and safety innovations at the Synclinorium shaft project. These include a new system to replace the old system of hand signals and pull bells to communicate from the shaft bottom to the working stage plat-form. The new system consists of a radio installed in a worker’s hardhat, with a built in speaker and microphone to enable hands-free operation. The shaft bottom sig-nalling system allows the sinker at the shaft bottom to give the kibble winding engine driver signals from a hand-held unit.

Electronic alcohol testing equipment has also been deployed to measure the blood alcohol levels of all workers entering and leaving the site. The system is linked to the entrance turnstile and will not allow a worker to enter if he is in violation of the zero parameter. Another innovation has been the introduction of directional rope lights on the stage to indicate to all work-ers which direction the kibble is at any given time.

While the Synclinorium shaft represents Murray & Roberts Cementation Zambia’s first project for MCM, subsequent similar projects managed from its Kitwe office have underlined the contractor’s excel-lent track record in the country. The team is 1 084 strong, comprising accountants, human resources coordinators, training facilitators and raise bore, mining and engineering teams. Of these, 141 are expa-triate workers, ranging from management to shaft-sinking specialists.

The final depth of the shaft was 1 280,85 m below the shaft collar, with the last blast having taken place on 30 September 2014.

DRDGOLD records 8 % increase in ouncesDRDGOLD Limited has announced an 8 % increase in gold production to 37 005 oz for the quarter ended 30 September 2014.

“The carbon adsorption inefficiencies and throughput issues that plagued the ini-tial start-up of the flotation/fine-grind (FFG) circuit did not manifest this time around, and inventory build-up in the FFG impacted gold output exactly as anticipated,” com-ments DRDGOLD’s CEO, Niël Pretorius.

The positive swing in gold production in the last six months, Pretorius says, was 23 % or 6 879 oz. Net cash inflow from operations rose to R86,6 million for the quarter under review, which enabled the company to pay down R73,3 million in debt that was due

in July, and to maintain a cash balance of R204 million.

Total all-inclusive cash expenditure for the quarter, including all operational and corporate cash costs and capital expenditure and excluding repayments of borrowings, reduced to R415 659/kg from R430 234/kg, for an all-in cash margin of 6 %.

Looking ahead, Pretorius says: “We are pleased with the way the plant has been performing and the results of the test work. We are now better placed to do the fine-tun-ing that is necessary to get the full benefits of the FFG circuit. I am confident that we will have the system up and running by the beginning of the next quarter.”

MINING News

Shaw River secures sales contract with NobleASX-listed Shaw River Manganese reports that Otjozondu Mining (Pty) Ltd (OM), a wholly owned subsidiary, has signed a purchase contract with Noble Resources International for the sale of up to 30 000 tonnes of ore from its Otjozondu (Otjo) manganese project in Namibia.

Shaw River is in the final stages of completing an infill and grade control pro-gramme at its Labusrus and Bosrand areas at Otjozondu and was due to commence mining of bulk samples totalling approxi-mately 100 000 tonnes early in November.

The sales contract is structured for fixed pricing at different product specifications which enables the company to sell vari-ous manganese ore products with more certainty over revenue within a flexible time frame. Under the terms of the agree-ment, the company can, at its election, sell up to 30 000 tonnes to Noble before 31 March 2015.

“This agreement with Noble places the Shaw River Group in a strong position to

progress the Otjo project and also pro-vides the Shaw River Group with a unique opportunity to test its logistics chain and mine planning going forward,” says Shaw River’s MD, Peter Cunningham.

Shaw River purchased 75,5 % of the Otjo project in early 2011 and has now

increased its share to 100 %. The project is located approximately 150 km north-east of Windhoek and lies in a historical manganese field which has produced in aggregate approximately 550 000 tonnes of high grade (approximately 48 %) man-ganese since the 1950s.

Strong start to Chilalo drilling programmeAustralian explorer IMX Resources reports that it has made a strong start to the recently commenced drilling programme at its Nachingwea property in Tanzania, with drilling at the key Chilalo prospect con-firming significant widths of near-surface graphite mineralisation. Assay results from the drilling at Chilalo are expected during December 2014.

A total of 18 holes for 1 360 m of RC drill-ing has been completed to date at Chilalo since drilling commenced on 1 October. The majority of holes have intersected graphite mineralisation including some zones which,

based on visual inspection, appear to be higher grade mineralisation.

IMX Chairman Derek Fisher said, “This is a very encouraging start to our drilling campaign at Chilalo, with visual identifica-tion confirming the presence of coarse flake graphite and validating the geophysical methodology used to identify the targets. Our understanding of the prospect will rapidly grow over the coming weeks as the drilling progresses and assays are received. If this success continues, we look forward to the possibility of delivering a maiden min-eral resource in early 2015.”

14MODERN MININGNovember 2014

MINING News

The Kibali gold mine in the north-east of the DRC is approaching operational steadi-ness as it continues to ramp up mining and production, and is well positioned to achieve its goal of delivering an average of 650 000 ounces of gold per annum over the next 10 years, says Randgold Resources Chief Executive Mark Bristow. Randgold is developing and operates the mine, in which it has a 45 % stake.

Speaking at an update for local media in the DRC, Bristow said the quarter to June had seen major advances in the mine’s development, including the commission-ing of the first of four hydropower plants, the completion of the secondary crushing, flotation and concentrate recovery circuits, and the accessing of the underground ore. The emphasis now was on completing the development of the underground mine, commissioning the second hydropower plant, and fine-tuning the process to ensure that the mine consistently achieves its design targets. Another focus area was the continuing Congolisation of the Kibali management team.

Bristow noted that to date the develop-ment of Kibali had injected US$600 million directly into the Congolese economy. It was also benefiting the surrounding com-munities by supporting the growth of a local economy – recent months have seen the establishment of banks, shops, service stations and mobile phone operations there – and by providing health and edu-cational resources to towns and villages in the area.

“The enormous investment in Kibali demonstrates our long-term commit-ment to the DRC. We ask the national

DRC gold mine approaches “operational steadiness”

and regional governments to match that commitment by providing a fiscal and reg-ulatory environment which will encourage further investment, not only by Randgold but also by other mining companies. The development of a robust mining indus-try here will be of inestimable value to the DRC and its people and, as has hap-pened elsewhere in Africa, could become the engine that drives general economic growth,” he said.

Against this background, Bristow said,

he trusted that the government’s current review of the DRC mining code would produce an investor-friendly result, not-ing that the existing code was already skewed in the State’s favour in comparison to mining codes in the surrounding African countries competing for investment, and that troublesome issues such as access to new ground and the continuing prob-lem of illegal mining would be addressed effectively.

In a speech to the Geological Society at the University of Kinshasa earlier, Bristow said the optimal exploitation of the DRC’s mineral wealth would require an integral partnership between the mining industry and the government, which was also appli-cable to all other emerging countries.

“During the recent gold price boom, throughout the world both parties were guilty of seeking short term gains instead of using it as an opportunity to build sus-tainably profitable mining businesses. We must now urgently reconsider our comple-mentary roles in extracting the maximum value from what are major national assets, and ensuring that the proceeds are shared fairly by all the stakeholders,” he said.

Randgold’s Technical and Capital Projects Executive, John Steele (left), and CEO Mark Bristow inspect-ing the turbines at the Nzoro hydropower station, which will provide power to Kibali (photo: Randgold Resources).

Chinese company signs Ncondezi agreementAIM-listed Ncondezi Energy has signed a n o n - b i n d i n g M e m o r a n d u m o f Understanding (MoU) with Shanghai Electric Power Company Limited (SEP) to progress and agree a transaction whereby SEP could potentially become the control-ling shareholder in the 300 MW Ncondezi power plant project, located near Tete in northern Mozambique.

SEP is a company incorporated in the People’s Republic of China and listed on the Shanghai Stock Exchange with the majority of its shares held by China Power Investment

Corporation (CPI). CPI is one of the largest power generation groups in China with an installed capacity of 90 000 MW. SEP has experience of owning, constructing and operating coal-fired power stations and has a stated strategy of international growth in Africa, specifically Mozambique.

Th e M o U d o c u m e nt s S E P ’s a n d Ncondezi’s mutual intention to further cooperate with each other and sets out a work plan and timetable, with a view to executing a legally binding Joint Venture Agreement Heads of Terms.

November 2014MODERN MINING15

MINING News

Sphere Minerals takes its foot off the throttleGlencore subsidiary Sphere Minerals says that it has slowed development of the Askaf iron ore project in Mauritania in response to prevailing iron ore market conditions.

Earlier this year, the board of Sphere approved the 7 Mt/a Askaf North project, which has a forecast construction cost of US$0,9 billion (in 2014 dollars) and which

– at that stage – was expected to enter pro-duction in early 2017.

In May this year Sphere reported it had reached agreement with Essar Procurement Overseas FZE (based in Sharjah in the United Arab Emirates) for the procurement of equip-ment and with Essar Projects Mauritania SARL for the construction of the project.

The Department of Mineral Resources (DMR) and Ivanhoe Mines have announced that the mining right for the Platreef min-ing project has now been finalised.

The announcement was made by the Minister of Mineral Resources, Advocate Ngoako Ramatlhodi, Ivanhoe Mines Executive Chairman Robert Friedland, Ivanhoe’s President and Chief Executive Officer, Lars-Eric Johansson, and the Platreef project’s MD, Dr Patricia Makhesha.

The mining right, or licence, authorises Ivanhoe to mine and process platinum group metals, nickel, copper, gold, silver, cobalt, iron, vanadium and chrome at its Platreef discovery, near Mokopane.

Minister Ramatlhodi said the final approval of the Platreef mining right was indicative of the DMR’s drive to ensure compliance with South Africa’s mining regulatory framework while simultane-ously attracting investment and growing the economy.

“The final regulatory approval of the

Platreef project’s mining right is signifi-cant not only for the development of the project itself but it also signals the South African government’s determination to grow our country’s economy. The Platreef project will attract foreign capital, create much needed jobs and contribute signifi-cantly to socio-economic development in areas surrounding the project.

“Whilst welcoming investment into the South African mining industry, the Department of Mineral Resources contin-

ues to focus on compliance with South Africa’s mining laws and to this end we are pleased that the Platreef project will indeed satisfy the environmental, socio-economic as well as Black Economic Empowerment requirements as set out in the law. We look forward to a construc-tive partnership on this project between Ivanhoe Mines, the South African govern-ment, communities and workers.”

Friedland said the execution of the mining right would enable the immediate resumption of preparations for continued construction at the Platreef site.

Mining right for Platreef project finalised

16MODERN MININGNovember 2014

MINING News

DRA awarded contract for Belfast coal plantJohannesburg-based engineering and proj-ect delivery company DRA has announced that it has been awarded the first phase of the contract for the coal preparation plant of the Belfast Implementation Project.

The first phase contract has been awarded by Exxaro Coal Mpumalanga, a wholly-owned subsidiary of JSE-listed Exxaro Resources, and covers the detail design and engineering of the 500 t/h coal processing project, which has a value of approximately US$4,5 million. Phase 2 is valued at nearly US$55 million.

Included in the project scope is a two-stage dense medium beneficiation plant, a fine coal dense medium section for fines treatment, filtration of slimes, and associ-ated product handling systems.

It is expected that the work will continue into the supply, construction and commis-sioning phases in approximately 12 months,

following the completion of the necessary approval processes by Exxaro. When operat-ing, the new plant will produce two types of coal – a thermal coal for local consumption and a higher grade export coal.

Paul Thomson, CEO of the DRA Group, comments: “We are especially pleased to have been awarded the Belfast Coal con-tract by Exxaro. Our association with the project goes back to 2008 when we were involved in early studies. Since that time we’ve worked very closely with the Exxaro team through the prefeasibility and final feasibility study stages.

“The contract has been awarded to DRA on a lump-sum basis following a competitive bidding process. This clearly demonstrates our long-established and continuing reputation for the develop-ment of innovative and cost-effective designs and also for the successful

delivery of mining industry solutions.” DRA has played a key role in the inter-

national coal industry since its inception approximately 30 years ago. From a mod-est start, it has grown to an organisation of around 3 000 employees, with offices in Africa, Australia, Canada, China and the USA. The company provides a wide range of engineering and project delivery services to the mining industry, including miner-als processing, mining and infrastructure. In addition, its wholly-owned subsidiary, Minopex, provides operations and mainte-nance services.

Taggart Global is a recent acquisition from the Australia-based Forge Group. Taggart has a staff in excess of 300 and has a well-established reputation in coal preparation and handling systems. The acquisition significantly strength-ens DRA’s presence and capabilities in the Americas region as part of its global growth strategy.

According to data compiled for the forth-coming 25th edition of SNL Metals & Mining’s Corporate Exploration Strategies study, the estimated worldwide total budget for nonferrous metals exploration dropped to US$11,36 billion in 2014 from US$15,19 billion in 2013 – a 25 % decrease.

SNL Metals & Mining’s 2014 exploration data and analysis are based on informa-tion collected from almost 3 500 mining and exploration companies worldwide,

SNL study indicates a 25 % drop in exploration spendlower ore grades, uncertain demand for commodities and investor discontent have required major companies to focus on a return to healthy margins after years of growth-oriented spending. To that end, the majors have been divesting non-core assets and cutting back on capital project and exploration spending, which has led to an unsurprising 25 % drop in the majors’ exploration budget total in 2014.

The juniors continue to battle lacklustre investor interest, which has forced them to rein in spending in order to conserve funds. The juniors’ total exploration budget fell 29 % year over year in 2014 after falling 39 % in 2013, dropping their share of the overall budget total to 32 % from a high of 55 % in 2007.

Exploration allocations for all targets except platinum group metals decreased in 2014. Although gold remains the most attractive target, gold budgets declined for the second consecutive year – drop-ping 31 % to US$4,57 billion – to account for the metal’s lowest share of worldwide exploration budgets since 2009 at just 43 %. Despite base metals budgets fall-ing by US$1 billion, their collective share of total budgets increased 2 % to reach the highest level since 2008. Base metals and gold allocations have a consistently inverse relationship in terms of their shares of overall budgets, says SNL.

Exploration at a gold project in Côte d’Ivoire in West Africa. According to SNL Metals & Mining, gold remains the most attractive target for explorers (photo: Amara Mining).

of which almost 2 000 had exploration budgets for 2014. The companies, each budgeting at least US$100 000, allocated a total of US$10,74 billion for nonferrous exploration in 2014.

Nonferrous exploration refers to expenditures related to precious and base metals, diamonds, uranium, and some industrial minerals; it specifically excludes iron ore, aluminium, coal, and oil and gas.

Higher operating and capital costs,

November 2014MODERN MINING17

MINING News

Mine construction at Bisie to start in early 2016In an update on its Bisie tin project in the DRC, Alphamin Resources Corp, listed on the TSX-V, reports it has received initial results from the resource infill and deep drilling at Mpama North and that various technical studies to support the initiation of a Definitive Feasibility Study (DFS) are nearing completion with the DFS on track to com-mence during Q1 2015. Following the successful completion of the DFS, construction of the commercial underground mine at Mpama North is anticipated to begin in early 2016.

Since recommencement of drilling on 19 September 2014, Alphamin has completed three holes for 895 m at Mpama South. The drill rigs have now been moved to complete the infill resource and deep drilling programme at Mpama North where five holes will be re-drilled and the programme completed. An updated mineral resource estimate is expected to be completed in Q1 2015.

Drilling on Mpama North has confirmed that tin mineralisation continues at depths exceeding 400 m within a plunging high-grade chute with a strike length of 300-400 m and is open to the north. At Mpama South, visual cassiterite was observed in zones exceeding 24 m of width down to depths of 350 m.

Bara Consulting has confirmed that economic comparisons clearly support an underground operation at Mpama North. Backfill will be used to ensure maximum recovery of the orebody left behind in sup-port pillars. Its mine plan will be rerun once the resource update has been completed.

Metallurgical test work and piloting is nearing completion at Maelgwyn Mineral Services Africa on a 7-tonne bulk sample in con-junction with Mintek, SGS South Africa and other leading South African laboratories and equipment suppliers. A final report is expected during December 2014.

Studies for the support of the DFS are ongoing at Paradigm Project Management (PPM) and are expected to be completed shortly. These studies include logistics and infrastructural studies, construction facil-ities, employee facilities, water supply, electricity solutions, product transport and the potential for on-site smelting.

Mining licence granted for Namibian copper projectAustralian minerals exploration and development company International Base Metals Limited (IBML) has been issued – through its wholly owned subsidiary, Craton Mining and Exploration – a mining licence (ML183) for its Omitiomire oxide copper project in Namibia.

The project is located 140 km by road north-east of Windhoek in central Namibia, in semi-arid savannah-type grazing land.

According to the company, the mining licence is an important step towards developing a modest-sized initial operation at Omitiomire, mining and processing oxide copper ore and mixed oxide-sulphide ore, which the feasibility study demonstrated can be economically viable.

It is envisaged that a far bigger processing plant will be built to mine the full sulphide and oxide copper resource at a later stage. The oxide processing plant would then continue to operate in parallel with the sulphide copper processing plant to treat the remaining oxide ore.

18MODERN MININGNovember 2014

MINING News

Asanko Gold Inc has awarded the mining contract for the fully funded and permitted Phase 1 of the Asanko Gold Mine (AGM) in Ghana. Project construction commenced in August and has been advancing rapidly with the project on schedule and budget. Phase 1 is expected to produce 200 000 ounces of gold per annum at steady state commencing in Q2 2016, with the first gold pour planned during Q1 2016.

The main mineral resource for Phase 1 is the Nkran pit, located immediately adjacent to the new plant site currently under construction. The pit was previously mined to a depth of approximately 120 m and requires 21,7 Mt of waste to be pre-stripped prior to commencing ore mining operations in Q4 2015.

Asanko completed a rigorous ten-dering process to select the mining

Financing secured for Pickstone-Peerless projectAIM-listed African Consolidated Resources plc (AFCR) says that the joint venture finance it announced on 30 September 2014 as being secured in principle, and which will enable it to start mining at the Pickstone-Peerless gold project in Zimbabwe with a local partner, has now been confirmed in a signed Joint Venture agreement. The part-ner is Grayfox Investments, a Zimbabwean incorporated company owned by a consortium of local persons.

The terms of the agreement provide that AFCR, through its wholly owned sub-sidiary, Canape Investments, transfers its interest in Pickstone-Peerless and in the Giant mine to a jointly owned company

(NewCo) over which AFCR will have man-agement control and into which Grayfox will contribute US$4 million in cash for a 50 per cent equity holding in NewCo. AFCR will also contribute the plant it already owns at Pickstone-Peerless to NewCo on a free loan basis and Grayfox will contrib-ute plant of approximately equal value to NewCo on a similar free loan basis.

AFCR says it remains of the opinion – as previously announced – that the finance introduced into the Joint Venture will be sufficient to commence production at Pickstone-Peerless within eight months at a provisionally targeted run-rate of ore pro-duction of 10 000 tonnes per month.

Norilsk Nickel is to sell its operations in Africa, comprising its 50 % participation interest in the Nkomati nickel and chrome mine in South Africa, and its 85 % stake in Tati Nickel Mining Company in Botswana, to BCL Limited.

The total expected consideration

January 2015. Mobilisation, clearing and grubbing will take place in November and December 2014.

The process of finding a mining contrac-tor began in May of this year when Asanko invited 19 mining contract companies to tender. From these initial submissions, it was determined that a short list of seven companies had the capability to meet the project timelines and quantities. In July, these short-listed companies were invited to provide a more detailed tender. Four of the tenders submitted were selected for detailed technical and commercial review.

An independent quantity surveying company was engaged to provide the commercial adjudication and a panel of Asanko’s Ghanaian mining team was formed to conduct technical adjudica-tions. In the adjudication process the bids were evaluated based on the contractor’s observed expertise and performance in safety, training, equipment availability, maintenance and operating excellence. In addition, Asanko gave significant weight-ing to local ownership of the tendering companies, in accordance with the African Union Mining Vision’s mandate.

Mining contractor appointed for Asanko

The mill foundations at Asanko under construction (photo: Asanko Gold).

contractor and has awarded the contract for the Nkran pre-strip plus the first year of mining operations to PW Ghana Ltd (PW), a subsidiary of PW Mining International Ltd of Accra, Ghana. PW has extensive experience in West Africa and a full fleet of equipment in excellent condition that can be immediately deployed to the project site. Pre-stripping is expected to begin in

for the assets payable by BCL to Norilsk Nickel amounts to US$337 million payable in cash. In addition, BCL will assume all attributable outstanding debt and envi-ronmental and rehabilitation liabilities associated with each asset.

The transaction is the largest in a series of asset disposals by Norilsk Nickel since its new strategy was presented in October 2013 with the aim to exit from non Tier-1 mining operations. This marks Norilsk Nickel’s full exit from its African business.

For BCL, the transaction has strong strategic rationale and allows for the treat-ment of both Tati Nickel and Nkomati concentrates at BCL’s smelter, significantly optimising this operation and delivering increased economic and social benefits to the region as a whole. The acquisition of Norilsk Nickel’s interest in Nkomati marks the first significant investment by BCL into South Africa.

BCL is a mining and smelting com-pany located in the town of Selebi Phikwe and wholly owned by the Botswana Government.

BCL to acquire Norilsk’s African assets

November 2014MODERN MINING19

MINING News

Updated study strengthens the case for MpokotoArmadale, the AIM-quoted investment company focused on natural resource projects in Africa, has announced the results of an updated and expanded Scoping Study for the Mpokoto gold project in the DRC’s Katanga Province.

The study follows the publication of the results of an initial scoping study in April 2014 which was focused on a portion of the shallower oxide ores. The updated and expanded study dem-onstrates a very significant expansion in the overall size and value of the project and has incorporated the results of the success-ful drilling programme in July 2014 and has been expanded to include all ore types.

Overall mine life has been extended by 80 % to nine years, with a total of 231 000 of gold anticipated to be produced. The project has a post-tax NPV of US$55,3 million based on a discount rate of 8 % and a gold price of US$1 250 per ounce – an increase of 68 % from the NPV of US$33 million shown in the previous study in April 2014.

Banro Corp updates on Twangiza and NamoyaCanada’s Banro Corporation has reported an increase of more than 30 % in gold production at its Twangiza mine in the DRC over the third quarter of 2013.

Twangiza produced 27 171 ounces of gold in Q3 2014, an increase of 30,7 % over the same quarter of 2013 and a 26,8 % increase over Q2 2014. The mine processed 394 500 tonnes of ore through the plant, an increase of 48,1 % over the same quarter of 2013, for an annualised rate of approximately 1,6 Mt/a or 93 % of the 1,7 Mt/a design capacity.

“We are extremely pleased to be reaping the full benefits of the Twangiza plant enhancements in the current monthly and quarterly gold production rates and to report that Twangiza has had its best quarterly production to date,” commented Banro CEO John Clarke.

“With the completion of these enhancements and the installa-tion of a roof above the Run-of-Mine ore handling and stockpile area to secure an acceptable amount of dry material to maintain steady throughput, we are now focused on incremental opera-tional efficiency in a more stable operating mode as we move into the rainy season.”

At its Namoya project, on the same gold belt as Twangiza in the DRC, Banro recovered 4 671 ounces of gold in the third quarter of 2014. Namoya is still in the pre-commercial production stage.

Following a review of several options regarding the Namoya plant for the most efficient and effective method to handle the excess fine material, Banro has begun to implement a first phase. As such, the company is advancing the acquisition of an agglom-eration drum to allow Namoya to run as an agglomerated heap leach operation while pursuing options to best utilise the CIL plant to process this excess fines material and to optimise the previously reported 2015 production schedule targets.

COVER STORY

20MODERN MININGNovember 2014

The Black Rock Expansion Project has resulted in Assmang becom-ing WorleyParsons South Africa’s biggest mining customer. “We’ve been continuously involved with

BRMO since 2009, starting with study work which entered the execution phase earlier this year,” says Portfolio Manager Peet Greyling, who is overseeing the project for WorleyPar-sons. “We’ve been appointed on an EPCM ba-sis to assist BRMO with the expansion of the Mining Scope of Works and we will deploy around 72 people on the project at peak, split between a head office-based design team and a site-based construction team.”

The Expansion Project encompasses refur-bishments, upgrades and new installations at both the Gloria and Nchwaning underground mines. The existing infrastructure on the two

mines includes a vertical shaft at Nchwaning II for personnel, rock and material transport; a vertical shaft at Nchwaning III for material and personnel transport; a decline at Nchwaning I for material and rock transport; and a decline shaft at Gloria for personnel, rock and material transport.

Currently, mining at Nchwaning and Gloria is undertaken using the room-and-pillar mining method.

Apart from the ventilation shaft at Gloria, the Expansion Project includes the reinstatement of the Nchwaning 1 mine, the refurbishment and upgrade of the Nchwaning II vertical shaft, upgrading of ventilation infrastructure and modifications to the underground ore handling and storage infrastructure to improve ore flow, storage and sorting efficiency. Upgrades to sur-face plant infrastructure at Nchwaning II also form part of the overall project scope.

Construction of the new concrete-lined ventilation shaft at Gloria is now in progress with Murray & Roberts Cementation – which has recent experience of sinking a similar

Leading EPCM contractor and project house WorleyParsons currently has a major involvement in the Black Rock Ex-

pansion Project at Assmang’s Black Rock Mine Operations (BRMO) in the Northern Cape. Black Rock is operated by Ass-mang Limited, which is jointly owned by Assore Limited and

African Rainbow Minerals Limited. The Expansion Project will increase capacity at the manganese mining complex

from 3,2 Mt/a to 4,6 Mt/a. A key part of the expansion is the sinking of a 5,5 m diameter, 167 m deep ventilation shaft at

the Gloria underground mine (part of BRMO).

Members of the project team pictured during a recent site visit by Digby Glover, CEO of WorleyParsons SA. They are (left to right) Siebert Noeth, Dolf vd Walt (M&R), Peet Greyling, Digby Glover, Casper Bezuidenhout, Theo van Niekerk, Gregory Brook, Graham Chamberlain (M&R) and Paul Liebenberg. They are all from WorleyParsons unless otherwise identified.

WorleyParsons playing key role on Black Rock expansion

COVER STORY

November 2014MODERN MINING21

Left: The steel headgear for the new ventilation shaft at the Gloria underground mine.

Below: A new ventilation fan at Nchwaning III has been commissioned. The 460 kW ventilation fan was installed adjacent to the existing three fans.

WorleyParsons playing key role on Black Rock expansion

dimensioned shaft on a neighbouring mine – having been contracted in March this year to undertake the shaft sinking. Pre-sinking has been completed on schedule to a depth of 24 m (as of early October) and the installation of the headgear, multi-deck stage and winders

is currently in progress. The contractor now has approximately 70 people on site, exclud-ing sub-contractors.

“Because of the Kalahari sand, we’ve intro-duced perimeter piling to a depth of 35 m,” says Greyling. “In addition, dewatering holes

COVER STORY

22MODERN MININGNovember 2014

and cementation of the areas just above the clay formations will facilitate the sinking process through the Kalahari sediments.”

Moving on to the Nchwaning portion of the project, Greyling says that in September this year a new ventilation fan at Nchwaning III was commissioned. The 460 kW ventilation fan was installed adjacent to the existing three fans. The changeover of the Nchwaning III surface fan

intake from the trifurcated inlet to the quadfur-cated inlet was successfully completed and the existing fans returned to service.

At Nchwaning II, the shaft upgrading com-prises refurbishment of the existing shaft steelwork and loading facilities and the replace-ment of the existing skips with larger skips. On surface, a refurbished rock winder is to be installed adjacent to the existing winder house, the man winder is to be upgraded and upgrades to the headgear and sheave assemblages will be undertaken to suit the new ropes, larger skips and winder placement.

Stefanutti Stocks Civils has been contracted to construct the new winder house and foundation work is currently in progress. Refurbishment of a Vecor rock winder is continuing and should be finished by the time this article is in print. The winder will be kept in storage until the winder house has been completed. As of this writing, the award of the contract for the headgear and shaft upgrade was imminent.

The development work required at the Nchwaning II and III shafts will total approxi-mately 8 800 m and will include all satellite tips (consisting of silos, tips, loading facilities, top and bottom conveyors and ramps from the Seam 1 to Seam 2 reef planes). The develop-ment work will also encompass transfer points, crusher chambers and conveyor drives to the respective shafts. It is expected that the devel-opment contract will be adjudicated shortly.

Greyling mentions that Paul Liebenberg is the EPCM Project Manager for WorleyParsons while the site construction team is currently headed by Acting Construction Manager Theo van Niekerk.

“We have fantastic teamwork on site and our people are fully committed to delivering the Expansion Project,” he says. “I think it also needs to be mentioned that we are interfacing with an extremely capable Assmang Owner’s

Looking down the shaft with concrete lining work in progress.

Above: The ventilation shaft site as it was in early September prior to erection of the headgear over the shaft. Visible in the photo are part of the headgear and the sinking stage.

Right: Sand removal in the ventilation shaft.

COVER STORY

November 2014MODERN MINING23

Left: Winder house con-struction at Nchwaning II – west structural columns reinforcing in progress.

Below: Stage winder for the sinking of the ventila-tion shaft – mechanical and electrical installation complete and cold commis-sioning in progress.

Team headed by Andre Sims, Assmang’s Project Manager. I can only describe the relationship that’s developed between WorleyParsons and the Assmang team as excellent – which, as you know, is not always the case on mining projects.”

The fact that a greenfields-type expansion on a brownfields operation is being under-taken also calls for seamless interaction with the BRMO operations team, something that both Greyling and Sims believe is working very well.

Putting the Black Rock Expansion Project in the context of the wider WorleyParsons Group, Greg Brook, Divisional Manager Mining, notes that the group has an international reputation for its underground mining expertise, par-ticularly in the design and implementation of shaft projects. “With one or two exceptions, it is probably true to say that WorleyParsons has been the EPCM contractor on virtually every major shaft project undertaken in South Africa in recent years. These have included Impala 17 Shaft, where we are still busy even though the shaft-sinking itself is nearly complete, the new Styldrift and Bakubung platinum mines, and also the Shondoni coal project, where we are responsible for construction management of both vertical and decline shafts.

“We also have a close involvement with the shaft system for the Venetia underground project, for which we’ve done the engineering for the headgear and shaft steelwork. Similarly and further afield, we’ve contributed our engineering skills at Kibali, the new Rangold Resources/AngloGold Ashanti gold mine in the

north-east of the DRC, where a 762 m vertical shaft is being sunk.”

The South African arm of WorleyParsons is headquartered in a brand new, purpose-built office complex in Melrose Arch, Johannesburg, housing well over 1 000 employees. A major part of the South African employee comple-ment derives from the 2013 acquisition of TWP by WorleyParsons, which added huge capability in metals and minerals to the global WorleyParsons Group. Founded in Australia in the 1970s, WorleyParsons operates today from 157 offices in 46 countries and has 35 600 employees. It provides project delivery and consulting services to the minerals and met-als, energy, infrastructure, hydrocarbons and chemical sectors and recorded total revenues of A$7,36 billion in its 2014 financial year.Photos courtesy of WorleyParsons SA

GOLD

24MODERN MININGNovember 2014

Situated approximately 15 km west of Gwanda in Matabeleland South Province, Blanket is one of Zim-babwe’s oldest mines and is located within the 70 km x 15 km Gwanda

greenstone belt. Mining operations started in the early 1900s and over the course of its life the mine has produced well over a million ounces of gold. Caledonia, which now owns only 49 % of Blanket following the implemen-tation of ‘indigenisation’ in September 2012, acquired the property in 2006 from Kinross.

Over the past several years, Caledonia has been steadily pushing Blanket’s production up to roughly the 40 000 to 45 000 ounce-a-year mark – which makes it one of Zimbabwe’s

biggest gold mines. According to Caledonia, it is also one of the lowest cost underground gold producers in Africa (with the on-mine cash cost per ounce in the year to December 31, 2013 being US$613 per ounce).

Despite its age, Blanket has some big plus factors, which include a moderate depth of mining, no cooling requirement, competent rock which needs little roof support and rela-tively dry conditions which reduce the need for pumping. Two mining variants of sublevel open stoping – underhand and longhole stoping – are currently being used at the mine depending (mainly) on the orebody width, with longhole stoping being preferred where the width is more than 3 m.

In terms of surface infrastructure, the mine has an efficient metallurgical plant which in 2013 achieved an average recovery rate of over 93 %. Blanket is also self-sufficient in power, having constructed a standby power station, equipped with four 2,5 MVA Cat diesel gensets (with the first having been installed in 2010). The mine is connected to the Zimbabwean grid but the standby generators mean that it can

New plus-1 000-m deep shaft planned for Blanket gold mine

A gold pour at Blanket. The mine will produce approximately 40 000 ounces in 2014.

Caledonia Mining Corporation, listed in Toronto and on London’s AIM, has announced a revised investment plan – ‘Revised Plan’ – for the Blanket gold mine in Zimbabwe

which targets production of 70 000 to 75 000 ounces of gold a year by 2021 from resources currently classed as

inferred. The Revised Plan will involve the establishment of a ‘Tramming Loop’ on 750 m Level and the sinking of a

6 m diameter, 3 000 tonnes per day (tpd) capacity, four-compartment shaft – Central Shaft, as it will be known –

from surface to a depth of 1 080 m.

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November 2014MODERN MINING25

New plus-1 000-m deep shaft planned for Blanket gold mine

Blanket is one of Zimbabwe’s oldest gold mines. Seen here is the No 4 Shaft headgear.

continue operating when (as is often the case) there are interruptions to grid power.

The planned capex for the latest expansion amounts to approximately US$5 million in the

period 2015 to 2017 and further US$20 million in the period 2018-2020 with the entire amount being funded from Blanket’s internal cash flows and existing facilities. This will impact on

http://www.scaw.co.za/

GOLD

November 2014MODERN MINING27

This cross-section through Blanket shows the main elements of the expansion. No 6 winze allows early access to the Blanket zone below 750 m while the Tramming Loop allows L22 handling of waste arising from the sinking of the Central Shaft from 630 m. The 3 000 t/d Central Shaft provides access to 26 and 30 Levels in two directions and creates opportunity for improved operational efficiency and resource development below 750 m. Larger 3 x 3 m haulages on 26 and 30 Levels will allow high-speed, high volume access to all mining areas.

shareholders in the short-term, as Blanket will suspend dividend payments until early 2016.

Explaining the rationale for the ‘Revised Plan’, Caledonia says that its board and man-agement recently completed a review of alternative expansion plans for the company and concluded that “the best returns on invest-ment remain at the Blanket mine in Zimbabwe, which continues to be cash generative in the current adverse market conditions and also offers significant investment returns that exceed alternative investment opportunities.”

In essence, the Revised Plan addresses the problem that reserves above the 750 m Level at Blanket are steadily being depleted. With the mine’s existing infrastructure and only existing investment, Blanket can maintain 1 200 tonnes per day (tpd) from existing reserves for another three years, after which production would rapidly tail off – with tonnes milled reducing from 430 000 in 2015 to just 50 000 in 2021 and gold production declining over the same period from roughly 40 000 ounces a year to just 6 000 ounces a year.

The new Central Shaft will provide access to the current inferred mineral resources below 750 m and allow for further exploration, devel-opment and mining in these sections along the known Blanket strike, which is approximately 3 km in length. As a result, tonnages milled from the resources below 750 m – zero at the moment – will steadily increase from a projected 35 000 tonnes in 2016 to 600 000 tonnes in 2021, resulting in gold production rising to between 70 000 and 75 000 ounces a year. In addition, the mine will continue to produce from the cur-rent proven and probable reserves above 750 m

level – although, as mentioned above, this will only amount to 6 000 ounces in 2021.

The sinking of the Central Shaft will be undertaken between August 2015 and July 2017 but rapid access to resources below 750 m Level will be facilitated in the meantime by extending the No 6 winze from 630 m to 870 m. Ore production will start in January 2016 with a ramp-up to 500 tpd by mid-2017. Blanket will resume sinking from 870 m after completion of the Central Shaft.

The Revised Plan, which will be the largest investment undertaken by either the Blanket mine or Caledonia, will be implemented under the direction of Dana Roets, Caledonia’s Chief Operating Officer, who developed the plan and scope of work and has considerable experience of successfully implementing similar projects. Roets will work closely with Caxton Mangezi, Blanket’s General Manager.

Roets has over 20 years of deep level mining experience, most of which was at Gold Fields, where he gained experience in sinking large shafts. Whilst at Gold Fields from 1994 to 2004, Roets successfully implemented the approxi-mately US$850 million Oryx project which comprised sinking production and ventilation shafts from surface to 2 400 m below surface and building up production to approximately 500 000 ounces of gold. Roets also success-fully managed the sinking of the 1 200 m deep Beatrix No 3 Shaft.

For his part, Mangezi has over 40 years of experience at the Blanket mine where he has been responsible for sinking several shafts. Most recently he was responsible for the No 4 Shaft expansion project which involved

GOLD

28MODERN MININGNovember 2014

deepening the No 4 Shaft from 510 m to the current depth of 765 m.

Commenting on the Revised Plan, Stefan Hayden, Caledonia’s President and Chief Executive Officer, said: “It is anticipated that the construction of the Central Shaft will substantially improve the Blanket mine’s oper-ational efficiency and reinforce the beneficial effect of fixed costs being spread across more production ounces. The Central Shaft will also enhance the mine’s operational flexibility by reducing its current dependence on a single production shaft and give it the flexibility to continue to explore and develop at depth.

“The revised strategic plan represents a vote of confidence in Zimbabwe as an investment destination. I am pleased to say that Blanket’s indigenous shareholders and the Government of Zimbabwe are both highly supportive of the revised plan.

“Implementation of the plan will result in considerable long term benefits to all stake-holders, including Caledonia and Blanket shareholders, Blanket’s current and future employees, the surrounding community and the Government of Zimbabwe. Implementation of the plan is expected to create approximately

The standby generation building – this photo was taken shortly after commissioning in 2010 – which houses four 2,5 MVA standby generators and is equipped with a 20-t over-head travelling gantry.

400 permanent, high-quality jobs in Zimbabwe over the next five years. By 2018 I hope that Blanket will have doubled production and further reduced its cost per ounce, which are already amongst the lowest of any African gold producer. Once these projects are completed, Caledonia and Blanket will have the critical mass and the financial capacity to consider sig-nificant new investment opportunities.”

In its most recent trading and produc-tion update (covering the three months to September 30, 2014), Caledonia says that Blanket produced 9 890 ounces over the period, representing an 11 % reduction on the gold pro-duced in the previous quarter. It attributes this to lower-than-anticipated tonnages and grades being mined. “The target grade for the year was 3,84 g/t and in the first half of 2014, the achieved grade was 3,7 g/t. In recent months the grade has fallen further due to lower than anticipated grades at AR Main and AR South, which are the two largest tonnage contributors to Blanket’s run-of-mine production,” the com-pany says in its update. It adds that guidance for gold production in 2014 has been reduced from 45 000 ounces to 40 000 ounces.Photos courtesy of Caledonia Mining

http://www.flsmidth.com/

30MODERN MININGNovember 2014

Trying to source hard and fast facts on the impact of lightning on the mining industry is an almost im-possible task – the statistics simply do not exist. Yet every now and

then a news report surfaces which highlights the fact that mines do indeed need robust lightning protection systems in place. For example, in 2010 the (now defunct) Smokey Hills platinum mine in the Steelpoort area was struck by light-ning, with the result that its processing plant was put out of commission for several days, resulting in a significant loss of production. This, in turn, impacted on the share price of the mine’s owner, Platinum Australia Limited.

Says McKechnie: “There is no question that lightning can have potentially damaging effects on mining operations and it is abso-lutely essential that mines take the issue of lightning safety and protection seriously. Many already do so, but there are others who either have no systems in place or, if they do, are relying on legacy techniques and technologies that are outdated and need replacing. Digital mining is also about increasing safety, and the degradation of systems due to lightning will obviously also impact that negatively.”

McKechnie speaks from a wealth of experi-ence. A Past President (2007/8) of the South African Institute of Electrical Engineers

The lightning threat to mines – real or imagined?

Lightning over the Twin Shafts complex at South Deep (photo: Gold Fields).

While most observers would probably agree that lightning is not the biggest problem that the mining industry faces in terms of safety and

possible disruption to operations, it is nevertheless a phenomenon which presents very distinct threats to virtually every African mine. This is the

view of Ian McKechnie (left), MD and co-founder of Centurion-based Innopro, who notes in particular that the shift towards ever more so-

phisticated mechanisation, automation and communications systems at mines – a trend often referred to as ‘digital mining’ – has heightened

their vulnerability to lightning damage and its knock-on effects.

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November 2014MODERN MINING31

MINE SAFETY

(SAIEE) and an Honorary Research Fellow at the University of the Witwatersrand (Wits), he is one of South Africa’s leading experts on lightning and has consulted extensively on lightning protection to organisations – including mining companies – both in South Africa and internationally. A graduate of the University of Cape Town, he has a BSc (Eng) degree in Electrical & Electronic Engineering and is a registered Professional Engineer.

He established Innopro as a specialist consulting engineering and forensic engineer-ing company in 2001, in collaboration with Professor Ian Jandrell, who also enjoys an international reputation in the earthing and lightning protection field. While Jandrell is an active Director of Innopro, he is best known for his long association with Wits, where he is the current Dean of the Faculty of Engineering and the Built Environment. He was the 1994 SAIEE Engineer of the Year and in 2011 the recipient of the SAIEE President’s Award. He is also a member of the Scientific Committee of the International Conference on Lightning Protection (ICLP).

McKechnie also recently presented a paper, jointly authored with Jandrell, at ICLP 2014 in Shanghai (China), entitled A systems

engineering and strategic approach to holistic lightning safety and protection solutions. He notes that this is particularly pertinent to com-plex applications such as mining.

McKechnie makes the point that increased mining activity in more lightning intensive areas – a worldwide phenomenon but particu-larly in Africa – has increased the probability of lightning impacting on mining operations. “The African continent experiences some of the highest lightning activity in the world,” he says. “As we all know, South Africa’s high-veld can deliver some spectacular lightning displays but – contrary to popular perception – it is by no means the worst area in Africa for lightning strikes. This distinction belongs to the north-eastern DRC where the lightning ground flash density per square kilometre per year is around 158 – whereas the equivalent figure for Johannesburg is 12 and the planetary average approximately 6,5. The north-eastern DRC – where at least one new large-scale gold mine has started up recently – is in fact the worst place in the world for lightning.”

He adds that the improved data collec-tion over the past few years indicates that the lightning problem in South Africa is more severe than previously thought. “Data from the SA Weather Service Lightning Detection Network, which was commissioned in 2006, indicates that the ground flash density was significantly under-estimated in the past and indeed this is reflected in the 2012 edition of the Lightning Protection standard from the SABS (SANS 10313:2012). This new data, incidentally, correlates well with NASA data from imaging surveys.”

Elaborating on the risk profile of mines to lightning, McKechnie says modern open-pit operations tend to have tightly inter-connected systems in place (in terms of communications and control), can frequently extend over huge areas, thus exposing both personnel, equip-ment and infrastructure to lightning strikes, and can often include hazardous locations. In addition, certain operations such as blasting can be affected by lightning activity. Even in the case of underground mines, lightning pres-ents risks. Again the geographic surface area covered by infrastructure, including processing plants, can be substantial while the presence of surface to underground interfaces can transmit the effects of lightning to underground work areas – particularly dangerous in the case of coal mines which in South Africa are typically not very deep and which may, in addition, be classed as ‘fiery’.

McKechnie points out that direct lightning

“As we all know, South Africa’s highveld can deliver some spectacular lightning displays but – contrary to popular perception – it is by no means the worst area in Africa for lightning strikes.”

Ian McKechnie, MD, Innopro

http://www.miningindaba.com/

November 2014MODERN MINING33

MINE SAFETY

strikes are only one of numerous potential ways in which lightning can cause injuries to personnel. “The reality is that one also has to consider step voltages, which are the biggest contributor to injuries emanating from light-ning activity, touch voltages and side flashes,” he says. “Other potential injury mechanisms include – for example – the upward streamer mechanism and barotrauma as well as, obvi-ously, secondary mechanisms including fire and explosion.”

Turning to the issue of how mines can pro-tect themselves from the effects of lightning, McKechnie emphasises the need for a holistic approach: “People tend to fixate over earthing or surge protection, but these are just elements of what must be a much wider, structured and integrated approach incorporating both micro and macro strategies. The macro strategy should be about creating a mine-wide enabling environment compatible with the overall mine and site health and safety plan while the micro strategy will encompass the ‘nuts and bolts’ of lightning protection at an engineering level.

“The starting point, of course, must be a thorough assessment of the lightning risk at the mine, bearing in mind that lightning protection is a risk management – and not a risk elimina-tion – process and that the level of protection achievable is, to some extent, dependent on the investment the mine owner is prepared to make above and beyond the statutory or required minimum. But the risk assessment must go beyond this and consider the broader risk pro-file such as engineering risks associated with potential solutions.”

On the micro strategy, McKechnie notes that the technologies, concepts and techniques contributing to efficient lightning protection systems – surge protection and equipoten-tialisation, for example – have shown great advances in recent years and that the effec-tiveness of protection achievable is far higher than, say, 20 years ago. He also points out that Innopro makes maximum use of what might be termed ‘natural’ components. “By this I mean that – where possible – we will use plant structures as part of the solution – for example, when we install earthing we’ll integrate foun-dation reinforcing where we can, an approach, of course, which is easiest to implement when a project is being developed,” he explains.

More often than not, Innopro tends to work on ‘brownfield’ as opposed to ‘greenfield’ installations but McKechnie does mention that the consultancy was called in a couple of years ago to provide – working as a sub-contractor to the electrical consultant – a comprehensive

lightning protection system for the general (but not plant) infrastructure at Kumba Iron Ore’s new Kolomela mine in the northern Cape. As he recalls, “It was very rewarding to be involved with a ‘greenfield’ project right from the outset and to work with a mine owner and project team who were so receptive and supportive to what we proposed and implemented.”

He stresses that once a system is in place, it needs to be maintained to ensure its continu-ing efficiency. “Basically, one needs a lifecycle approach,” he remarks. “The days of putting in a system and then forgetting about it are long gone. Upgrades, extensions or modifications will also often be needed in order to provide safety and protection as a mine evolves and its electronics and communications systems in par-ticular grow ever more complex or extensive.”

To get its message on lightning safety and protection across to interested parties, Innopro frequently holds seminars, which are publicly offered but which can also be tailored to the needs of specific companies and organisa-tions and held at their premises. In August this year, for example, it held its popular – and recently updated – one-day ‘Best Practices in Lightning Safety and Lightning Protection of Structures and Systems’ seminar in-house at the head office of a major mining company, attracting a good turnout and interaction with delegates. This particular seminar is validated for Continuing Professional Development (CPD) with the Engineering Council of South Africa (ECSA) by the South African Institute of Electrical Engineers.

Summing up his views on lightning safety and protection, McKechnie says it is a field which is often misunderstood, with inappro-priate management, strategies, techniques and methodologies being applied as a result, often on a piecemeal basis. On the specific topic of mining, he re-emphasises that the industry has a higher risk profile than many other sectors of the economy in terms of its vulnerability to lightning and that mining industry executives and managers need to be aware of this and act accordingly. “The lightning risk to mines can be dramatically mitigated – generally, quite economically – if the right measures are taken and Innopro can assist with this. Specialist professional engineering consultants such as ourselves have the relevant qualifications, expertise and experience to assist our clients to effectively manage the risks associated with lightning,” he concludes.

Editor’s note: Readers can contact Ian McKechnie on tel (+27 12) 663-4804, e-mail: ianmac@gafrica.com. For more about Innopro, see www.innopro.co.za.

“People tend to fixate over earthing or surge protection, but these are just elements of what must be a much wider, structured and integrated approach incorporating both micro and macro strategies.”

Ian McKechnie

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CONSULTANTS/ PROJECT HOUSES

Commenting on SRK’s role, Roger Dixon, Chairman of SRK Consult-ing (SA), points out that govern-ments in Africa are often faced with the difficult task of negotiat-

ing agreements with mining companies which are both fair to project developers but also safeguard the interests of the host country and that there is a consequent need for high level technical input from consultants such as SRK. He adds that this is especially the case when projects are located in countries where there is no long tradition of mining and hence a lack of ‘home-grown’ skills that can be called on to steer the negotiation and planning process.

“In the case of Cameroon, the country is not well-endowed with mining skills – which

SRK helps pave the way for giant iron ore project

High level collaboration around the negotiating table. In all, SRK has thus far been involved in over 1 000 hours of meetings – mostly held in either Yaoundé or Paris – relating to the Mbalam project.

Andrew van Zyl of SRK Consulting during negotiations.

The role that independent multi-disciplinary consulting engineers can play in facilitating mining projects in

Africa is well illustrated by SRK Consulting (SA)’s on-going engagement with the Government of Cameroon. SRK is

acting as technical adviser to the government in respect of the Mbalam iron ore project and has assisted with the

negotiation of the Mining Convention and other associated agreements, including the Mineral Terminal and Rail Concessions between the Cameroon authorities and

Australian miner Sundance Resources, which is developing the project. Mbalam will involve capex of US$5 billion and – according to Sundance – will account for 6 % of Cameroon’s

GDP once in full production.

Flavien Nteumagne, Cameroon Country Manager, SRK Consulting.

November 2014MODERN MINING35

CONSULTANTS/ PROJECT HOUSES

feat

ure

SRK helps pave the way for giant iron ore project

Sundance’s Mbalam exploration camp in Cameroon (photo: Sundance Resources).

is why the government sought assistance,” he recounts. “The other issue is that Mbalam is much more than a straightforward iron ore development – it has a heavy infrastruc-tural component which has implications for Cameroon for decades ahead.”

The Mbalam project will involve Sundance mining from iron ore deposits located not only at Mbalam in Cameroon (in the south-east of the country) but also nearby Nabeba in the Republic of Congo (Congo-Brazzaville). Reflecting the fact the project straddles the border between the two countries, Sundance normally refers to it as the Mbalam-Nabeba iron ore project.

Development is planned in two phases. Stage 1 will exploit the project’s high-grade hae-matite resource and envisages the production

of 35 Mt/a of Direct Shipping Ore (DSO) for a minimum of ten years. The project has total high-grade haematite (probable) ore reserves of 436,3 Mt at 62,2 % Fe. Stage 2 will involve the mining of the broader itabirite haematite resource over at least another 15 years to pro-duce 35 Mt/a of concentrate product.

The real hurdle for Mbalam-Nabeba is not so much the mining operations and plants, which will be based on well-tried methods and technology, but the project’s demanding infra-structural requirements. To get into Stage 1 production, Sundance will need to construct a 510 km rail line from Mbarga in Cameroon (and a 70 km rail spur connecting to Nabeba in Congo) to Lolabe on the Cameroon coast to transport the ore. It will also need to construct

36MODERN MININGNovember 2014

CONSULTANTS/ PROJECT HOUSES

feature

a Mineral Terminal Facility at Lolabe (which is located 12 km south of the new Kribi multi-user port facility). The standard-gauge, 32-t axle load rail line will be built to handle 35 Mt/a but will be designed to be expandable to 100 Mt/a. The deep water Mineral Terminal Facility, including stockyards, will be capable of load-ing bulk iron ore carriers of up to 300 000 DWT.

SRK’s involvement began when it was asked to review Sundance’s Definitive Feasibility Study (DFS), which was released in 2011. Feedback from the review – undertaken between February and June 2012 – led to SRK being requested to assist during the negotiation of an appropriate Mining Convention govern-ing the project, an exercise which took place between April and November 2012. The con-vention was signed in Cameroon’s capital, Yaoundé, in November 2012. With the main convention in place, the focus then turned to the concessions governing the rail system and the mineral terminal and these were signed in June this year. Here again SRK advised the gov-ernment on the technical issues involved.

These two concessions regulate the rights and obligations of Cam Iron SA (Sundance’s subsidiary in Cameroon) and the Government of Cameroon in relation to the construction and operation – a Build Own Operation Transfer model is envisaged – of the required infra-structure. They also detail the procedure to be followed for the transfer of these assets back to the government on the conclusion of mining.

SRK’s Andrew van Zyl, a principal con-sultant and associate partner of the firm, has been heavily involved in SRK’s work for the Government of Cameroon. Referring to the

negotiations on the Mining Convention, he says SRK’s role was to largely take out the technical uncertainty from the discussions. “We weren’t there to tell the government what to do, or to say what the deal should look like,” he explains. “Rather, we were to provide a measure of con-fidence that the way our client’s concerns were being addressed by the developer – or would be addressed – was acceptable from an expert’s point of view.”

In all, SRK has thus far been involved in over 1 000 hours of meetings – mostly held in either Yaoundé or Paris – relating to the Mbalam project, with its input to the process covering geology, infrastructure, engineering, standards and specifications, mining and mineral pro-cessing. It has also given advice on the labour, social and environmental aspects of the proj-ect. It should be added that SRK is not the only advisor to the Government of Cameroon on the project. Others include Squire Patton Boggs of Washington and Gide Noyrette Louel of Paris, both on the legal side, and Financia Capital, based in Doula, Cameroon’s biggest city, who are lead advisors and are advising on the finan-cial aspects.

“Countries can learn a great deal from the success of the approach taken by the Government of Cameroon in this project,” Van Zyl observes. “Bringing the key stakeholders and experts together to collaboratively ‘prepare’ the ground has ensured more clarity and co-operation; this bodes well for the sustainability of Mbalam and the future direction of mining in the country.”

While the steep drop in iron ore prices seen in recent months has impacted on some African

Above: Proposed location of the Mineral Terminal Facility at Lolabe on the coast of Cameroon (photo: Sundance Resources).

Right: Yaoundé – the bustling capital of Cameroon.

November 2014MODERN MINING37

CONSULTANTS/ PROJECT HOUSES

iron projects, Sundance (to judge from its latest quarterly report to the end of September 2014) remains highly commit-ted to the development of Mbalam and in fact it has just appointed Fluor Australia to undertake a Front End Engineering Design (FEED) study for the mine pro-cessing plants and their associated mine site infrastructure. This follows the com-pany’s announcement in June that it had appointed Mota-Engil Africa, part of Portugal’s Mota-Engil Group, as the EPC contractor for the project’s port and rail infrastructure. The contract is worth A$3,5 billion.

To support its activities in Cameroon, SRK has established an office in the coun-try headed by Country Manager Flavien Nteumagne. In addition to the iron ore project, SRK is also advising the Cameroon government on a large bauxite project.

Bertrand Nkouemou is the office’s environmental consultant, specialis-ing in environmental and social impact assessments, as well as partnership development, within the framework of Cameroon’s decentralisation process. With a Masters degree from the University of Yaoundé, he has worked in Cameroon for the United Nations and the develop-ment organisation Plan International.

SRK’s presence in Cameroon is part of its strategy of extending its footprint in Africa. “Our expansion strategy is based on long-term investments in selected countries where we have identified the right local experts and a landscape of

opportunity,” says SRK Consulting (SA) Managing Director Peter Labrum. “This may mean there are no quick returns, but we can ensure our exacting standards are applied and capacity is continuously built over time.”

He adds that the breadth of SRK’s ser-vice offering has steadily grown from its initial mining focus to serving other markets including infrastructure, energy, local, provincial and national govern-ment, industry and agriculture.

With the South African mining mar-ket in the doldrums, the African market beyond South Africa’s borders has become increasingly important to SRK Consulting (SA). As Roger Dixon says, “Africa has been a tremendous source of growth to us and the opportunities that lie ahead are endless. We believe that our model of relying on local expertise in each country – rather than expensive expatriates – and supporting the local offices with the resources of not just SRK in South Africa but also the global SRK group is the right approach.

“To be successful in Africa you need to fully engage with each country in which you operate and this is exactly what we’re doing. We now have 14 offices in African nations including Angola, the DRC, Ghana and Zimbabwe and 776 active projects on the continent in 26 countries. This is an impressive track record and shows that we are truly an African consultancy.”

Photos (unless otherwise acknowledged) courtesy of SRK Consulting

38MODERN MININGNovember 2014

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feature

Established in Johannesburg in 1997, The Mineral Corporation provides advice on virtually all aspects of the minerals industry to its clients, who include major, mid-tier and ju-

nior mining companies, financial institutions and private equity funds. Since being founded, it has completed more than 1 500 project as-signments in 46 countries involving more than 30 different commodities.

The company’s expertise encompasses mineral exploration, economic geology, min-ing geology (underground and open pit), mine engineering and development, infra-structural and socio-economic dynamics, statutory compliance, mineral asset valuation

New MD takes over at The Mineral Corporation

Seen in this photo taken by ‘Modern Mining’ earlier this year are (left to right) John Murphy (MD); Dave Young (now retired); and Frank Gregory, Andrew Hart and Stewart Nupen, all directors of The Mineral Corporation. Absent from the photo is Russell Heins (photo: Arthur Tassell).

News from The Mineral Corporation is that its long-stand-ing – and highly respected – Managing Director, Frank

Gregory, has stepped down from the position although he will continue as a Director. He is succeeded by John Murphy,

an equally well-known figure in the minerals industry, who joined The Mineral Corporation in 2004.

and techno-economic modelling.Recent milestones include the delineation

of over 4 billion tonnes (bt) of coal resources in various countries in Southern Africa and south-east Asia; increasing the JORC Mineral Resources for a London-registered exploration company of its West African bauxite project from 50 Mt to 1 Bt; the provision of techni-cal and corporate advisory services to a South African tribal authority leading to the corporat-isation of its mineral assets, now worth tens of billions of Rands; and a ‘head-to-toe’ technical review of chrome operations – exploration proj-ects, mines, concentrators and smelters – for all the major mining houses in South Africa.

Over the past couple of years The Mineral Corporation has also been involved in the conversion and application of over 30 mining rights (including social and labour plans) and numerous prospecting rights, mostly for PGMs, gold, coal, industrial minerals and iron.

The company is known for its innovation, exemplified by – among other things – its development of in-house software that regular-ises coal washability data, which has improved

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New MD takes over at The Mineral Corporationthe resource evaluation of African coals; and its provision of expert technical coal advice in the development of a wash module for the strati-graphic modelling package of an international mining software provider.

Commenting recently on the appointment of Murphy, Gregory (who was one of the founders of The Mineral Corporation) said: “While John is a genius of multi-skilling, he is a geologist at heart. He graduated from the University of Natal (Durban) with a BSc Honours Engineering Geology and also holds an MBA from the University of Pretoria. John enjoyed the benefits of 14 years with the Anglovaal Group of Companies prior to join-ing The Mineral Corporation in 2004. He has been on the Board of the company for the past eight years.

“From skilled explorationist to technical and strategic corporate advisor, he is highly regarded in the industry with experience across mul-tiple commodities and in many jurisdictions.

Not only is he technically demanding of our staff, but he is proficient in the financial evalu-ation of projects in any phase of development. With his broad technical exposure, IT skills, commercial sense, honest views and engaging personality, he brings an innovative approach not only to The Mineral Corporation but also to the minerals business.”

Other staff changes at The Mineral Corporation in recent months include the retirement of one of the founding directors, Dave Young, who will continue as an indepen-dent technical expert for the company, and the appointment of Russell Heins as a Director and shareholder. Heins’ particular expertise lies in the field of process engineering.

Commenting on business conditions, Gregory said the “slower period” of the recent past had given The Mineral Corporation the opportunity to re-energise. “The new-look group remains technically competent to deliver commercially competitive services,” he said. “Most importantly, we continue to rigidly adhere to our philosophy of providing profes-sional solutions without compromising the ethics of our advisory services.”

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Beukes says that working on Tschudi has been a “good experi-ence” for LogiMan. “As with any project, we’ve had a few problems and challenges to handle but noth-

ing out of the ordinary or beyond what one would normally expect,” he says. “The con-struction has gone remarkably well, and as we speak (late October) the project is over 80 %

complete. Its successful conclusion is within sight and will strengthen LogiMan’s reputation as a company able to deliver sophisticated, large-scale plant projects economically and on time.”

Founded in 2007, LogiMan’s core skill is the design and construction of process plants but it can also handle the design and detailing of slimes dams, reservoirs, ponds, roads and services and the civil and structural design of mining structures, both on surface and under-ground. While it can work under various contractual models, it prefers EPC work and this, in fact, is the model that has been adopted for Tschudi, where LogiMan’s fixed-price EPC contract is worth R641 million.

The Tschudi project encompasses the devel-opment of an open-pit mine which will use acid leaching and solvent extraction and elec-trowinning (SX/EW) technology to produce high-quality copper cathodes. By world stan-dards, it is certainly not a big copper project but is significant to Namibia, which currently

When Modern Mining last interviewed the senior management of LogiMan in October 2013, the multi-

disciplinary consulting and project management company was on the brink of starting work on site at its biggest project to date – AIM-listed Weatherly International’s

Tschudi copper project in northern Namibia. A year on and the project has made excellent progress with LogiMan’s

MD, Nick Beukes, saying that it is on schedule, within budget and on course to produce its first copper by the

second quarter of 2015.

The heap leach pad at the Tschudi project takes shape.

LogiMan’s Tschudi contract on course and within budget

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only has just over 5 000 tonnes of copper production a year, all of it from Weatherly’s existing mines in Namibia – Otjihase and Matchless, both in the Windhoek area in the centre of the country. With a projected output of approximately 17 000 t/a of copper, Tschudi

is a key pillar in Weatherly’s stated strategy of achieving a copper production of 25 000 t/a in the medium term.

Located 26 km by road from the historic mining centre of Tsumeb, Tschudi will exploit a proven and probable JORC reserve of 22,7 Mt of

The electrowinning tankhouse with most of the structural steel erection complete.

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Caterpillar scrapers were used during the earthworks phase of the Tschudi project.

Cell baths forming part of the electrowinning facility.

ore at a grade of 0,95 % copper and is expected to produce 19 Mt of ore and waste – the strip-ping ratio is 7,45 to 1 – over its 11-year mine life. Overall metal recovery is expected to be 85 % of the copper contained in the ore.

The mining and processing operations are straightforward and low risk. Once ore is mined, it will be fed to a three-stage crushing plant. The crushed ore will then be agglomerated with sulphuric acid and stacked onto 4 to 6 m high heaps for leaching with dilute sulphuric acid. The resulting ‘pregnant’ liquor containing the dissolved copper will be collected from the base of the pads and upgraded through the SX to a clean high grade electrolyte which will be pumped to the EW cell house where copper is plated onto cathodes. The 99,99 % pure copper sheets will then be stripped from the cathodes, bundled together and transported to the port of Walvis Bay for export.

Although LogiMan’s contract accounts for the bulk of the Tschudi capex, two other South African-based contractors – working

through Namibian subsidiaries – are play-ing a role in the project. They are Basil Read Mining Namibia, which has already mobilised to site and is responsible for the open-pit min-ing, and B&E International, appointed to carry out the crushing, agglomeration and stacking of the leach pads. B&E is busy establishing its crushing and agglomeration facility, which it is constructing on a build, own and operate (BOO) basis.

Discussing LogiMan’s portion of the proj-ect, Beukes says the company is managing a workforce which recently peaked at over 400 workers. He notes that wherever possible – and in accordance with the client’s wishes and those of the Namibian government – Namibian contractors have been sub-contracted to work on the project and says LogiMan has been favourably impressed at the level of skills avail-able within Namibia and the prices tendered by Namibian companies.

In terms of sheer volume of work, he points to the earthworks for the pad and ponds as

having been a particular chal-lenge. “We actually used Cat scrapers – not too often seen these days – for the earth-moving and found this to be a superior solution to the normal approach, which would have involved using excavators and dump trucks,” he says. “This would have required about 50 items of plant to be deployed as opposed to the ten scrapers which we actually utilised. We sourced the scrapers, inci-dentally, from Translanga of Witbank, one of a small num-ber of companies who operate these machines.”

He adds that the scrapers – which moved 600 000 cubic

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A 4 000 t bunker at the new Impumelelo coal mine near Secunda. LogiMan contributed to the design of the bunker.

metres of material – worked “wonderfully well”, delivering excellent availability and achieving very good cycle times.

Regarding the SX/EW modules of the plant, LogiMan is implementing a design undertaken by Australian metallurgist Graeme Miller (of Miller Metallurgical Services), a world expert on SX/EW technology who was recently also involved in the Kipoi Stage II copper project in Katanga in the DRC. This expansion, compris-ing a 25 000 t/a SX/EW operation, was recently commissioned.

Commenting on the smooth progress at Tschudi, Beukes says this can be attributed in part to the excellent relationship that has developed between LogiMan and Weatherly Namibia, London-based Weatherly’s Namibian subsidiary. “We’ve been impressed by the competence of the Weatherly team in Namibia headed by Craig Thomas, who is COO in Namibia. It’s always a plus if one has a techni-cally capable client with a clear vision of what he wants to achieve and a willingness to make fast decisions when required,” he observes.

On the state of the mining market generally, Beukes says the industry is clearly in a down-turn and that work is scarce. “Having said this, we are surviving quite well and – in contrast to some of our peers – have thus far managed to avoid any staff retrenchments,” he states. “In terms of execution contracts, we’re busy on a large chrome plant in the Western Bushveld in the Northam area and we’re also nearly com-plete on a ‘proof of concept’ plant at a platinum mine designed to test the efficiency of X-ray

sorting. Additionally, we’ve been working on precast bunkers for Sasol Mining’s Shondoni and Impumeleo coal projects, one of which is up for a Fulton award.

“Further afield, we’re just finishing off a Pre-Feasibility Study (PFS) – which we’re doing in joint venture with an Australian consultancy, BatteryLimits – for the Nachu graphite proj-ect in south-east Tanzania. Our client Magnis Resources – previously Uranex – is looking to bring this deposit into production at 200 000 t/a of graphite and has publicly stated that it wants to fast track the project. We would obviously be keen to take our involvement into the execution phase. There are, of course, no guarantees that this will happen but certainly we would wel-come the chance to work on a greenfield project in Tanzania, particularly one of this quality.”

The LogiMan Board consists of Chairman and founder Sharadh Padayachi, Managing Director Nick Beukes, Projects Director Eddie Ennis, Financial Director Krzysztof Szymczak and Construction and Commissioning Director Vince Reiche. Prior to the founding of LogiMan, they were all employed by the then Minproc and all worked on the Langer Heinrich ura-nium project in Namibia. Padayachi is a civil/structural engineer while Beukes, who is a chemical engineer, has a background in process engineering. Ennis has over 35 years’ experi-ence in projects, Szymczak is a civil/structural engineer while Reiche is a mechanical engineer with extensive experience in hydrometallurgy and pyrometallurgy.Photos courtesy of LogiMan

“It’s always a plus if one has a technically capable client with a clear vision of what he wants to achieve and a willingness to make fast decisions when required.”

Nick Beukes, MD, LogiMan

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Dixon points out that one of the challenges facing projects in Af-rica in general is that some of the players are not really convinced of the advantages of the project

management discipline, and its criticality in effectively managing risk and opportunity on their projects. “SNC-Lavalin’s global experi-ence and know-how can help mining clients in Africa remain competitive by implement-ing the latest project management and control

methodologies and software,” he says.He warns against the misperception that too

much money is being spent on project man-agement and controls. “I think that is false economy. Certainly everyone is moving towards ‘leaner and meaner’. However, what you can save by cutting back on project management and controls is minuscule in the context of the entire project. Compromising on this aspect can and often does materially increase the remain-ing portion of the initial capex investment by incurring lengthy delays, spiralling contractor claims or realisation of other risks.”

The ratio of management to engineering man-hours, as well as the relative contributions of the various engineering disciplines, can vary widely from one project to another. “It is vital that the specifics of each project are well under-stood and considered when establishing project schedules and budgets in order to facilitate effective monitoring and control throughout the project lifecycle,” says Dixon.

A major challenge is educating operational management within the mining industry as to the benefits of project management and con-trols. “There is a great deal of work to be done in upfront planning and structuring of a proj-ect so as to render it eminently controllable. Operational focus is often more immediate and situation driven, whereas project focus tends towards consideration of a wider set of suc-cess criteria in a somewhat more measured and structured approach.”

Dixon adds: “More is being expected a lot faster, and the engineering project houses have to continually streamline their approach to execution within the constraints of established workflow processes and discipline. Leveraging low-cost procurement and high-value engi-neering centres to support optimal and cost

SNC-Lavalin can bring cost certainty to mining projects

SNC-Lavalin’s keen understanding of project management in an African context includes flagship projects such as Katanga Mining’s Kamoto Copper Company expansion project in the DRC.

A smart and accurate work breakdown structure, budget and schedule can cut 5 to 10 % off a project’s final installed

cost because key performance criteria can be simply and effectively tracked and controlled, says John Dixon, Project

Manager at SNC-Lavalin. He adds that with its keen un-derstanding of project management in an African context,

including flagship projects in the DRC, Madagascar, Zim-babwe and Malawi, SNC-Lavalin is well placed to offer this

expertise and know-how to its clients.

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SNC-Lavalin can bring cost certainty to mining projectseffective delivery of projects are two of SNC-Lavalin’s strengths in that regard.”

Another area of concern is the level of appre-ciation for multi-disciplined peer reviews, engineering verification and professional sign-off on designs prior to implementation and after construction. A half-hearted approach and commitment by owners and contractors towards these key reviews and responsibilities can have potentially dangerous consequences. “It should always be remembered that engineers carry a legal responsibility to ensure that their designs are implemented faithfully, irrespec-tive of whether they are appointed to oversee construction activities themselves or not.

“Within SNC-Lavalin, project managers have a corporate responsibility to formally attest on a regular basis that this is actually taking place within their projects and raise alerts and pro-pose remedial action when deviations occur. Often the appreciation for such discipline at the ‘coal face’ is low, being perceived as restric-tive or even counter-productive. It is one of the important roles of the project manager to

ensure that the key players on the client’s team are appropriately educated in this regard,” Dixon says.

He points out that supply chain manage-ment and logistics in Africa do not present insurmountable problems. “It needs to be dealt with early on in the study phase by tai-loring design to avoid having to transport large complex items that can be easily dam-aged,” he states. “We look at engineering for simplicity of construction, which often means modularisation and containerisation. Bolting components together, rather than on-site weld-ing, can materially reduce construction time and cost.”

Looking to the future, Dixon says that the mining industry in Africa continues to offer opportunities. “I think that while this year we will still have to tough it out as an industry, particularly in South Africa, the fundamentals of mining projects in Africa in general remain lucrative and we have pretty much graduated from the school of managing the risks in the challenging environments in which they are developing. We have a high degree of flexibil-ity, creativity and tenacity that we can bring to bear in the delivery of effective project manage-ment solutions in Africa.”

“Bolting components together, rather than on-site welding, can materially reduce construction time and cost.”

John Dixon, SNC-Lavalin

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MINING SIMULATORS

The CAE Group was founded in Canada in 1947 with its original name, Canadian Aviation Elec-tronics, reflecting its focus on the aviation industry. CAE was not

content to remain just a Canadian company and exported its first flight simulator in the early 1950s. Today it is a truly global operation, listed in Toronto and New York, with opera-tions and training centres in around 30 coun-

tries, customers in 190, and a total workforce of approximately 8 000 employees, more than half of them outside Canada. Annual revenues

Cutting-edge simulator technology comes to Africa

Training underway in a CAE Mining simulator. The instructor can dynamically alter the training scenario, thus enhancing the overall training experience.

Scott Perry (left), Global Leader, CAE Mining Simulation and Training, and Mark de Villiers, Business Development Execu-tive, CAE Mining Africa.

A relatively new entrant to the African mining simulator market is CAE Mining Africa, headquartered in Johannes-

burg, a subsidiary of the huge Montreal-based CAE Group, a world leader in flight simulation technology and training

for the aviation and defence industries. Modern Mining recently spoke to Denver-based Scott Perry, Global Leader, CAE Mining Simulation and Training, and Mark de Villiers,

Business Development Executive of CAE Mining Africa, to learn more about the CAE Mining offering.

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Above: Built with high-definition projector screens and a six degrees-of-freedom motion system, the CAE simulators can simulate virtually any mining machine.

Left: The system is available as a ‘classroom’ design for a training centre approach or can be housed in a deployable container, which allows a high degree of flexibility at mine sites.

exceed C$2 billion (with about 90 % of this de-riving from international activities). As befits a group operating in one of the most high-tech areas of industry, it ploughs back about 10 % of its annual revenues into R&D.

Says Perry: “It’s not just hyperbole when we say we are a world leader in our field. We have the largest base of installed civil and military full-flight simulators in the world. While the aviation and defence industries remain at the heart of CAE’s business, the decision was taken in 2009 to diversify into other industries, nota-bly mining and health care. Our penetration into the mining field is under the CAE Mining banner and we’re still very much in a formative stage, particularly in Africa. Our diversifica-tion into mining has tended to coincide with a global downturn in mining, but we are nev-ertheless starting to develop a solid global footprint.”

Recent successes Perry points to include the sale of a turnkey training solution, includ-ing simulators and e-learning course software, to Fresnillo, which operates seven mines in Mexico and ranks as the world’s largest primary silver producer and Mexico’s second largest gold producer, and the award of a contract for simulators by Calgary-based Suncor Energy, which mines the oil sands of Alberta. In South America CAE Mining now has its simulators at several Vale mines.

Fresnillo is one of CAE Mining’s flagship sites. The company supplied simulators for both an Atlas Copco Scooptram ST1030 and an Atlas

http://www.cae.com/mining

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Copco Boomer S1D and Fresnillo is reported to be well pleased with their performance.

Thus far CAE Mining has had little pen-etration into the African mining market, the exception being the supply of a training solu-tion to a West African gold mine in 2012, which saw simulation packages for the CAT 785C haul truck and the Cat RH170B excavator being delivered to support an open-pit expansion project.

De Villiers has the task of developing the CAE Mining footprint in Africa and acknowl-edges that this will be challenging, given that South Africa is by no means backwards when it comes to simulator technology, with at least two home-grown companies with interna-tional reputations active in the market. “We’re nevertheless very confident that we can carve out market share, given the sheer quality and sophistication of CAE’s technology,” he says. “We believe that we can get our simulators closer to the real equipment than anyone else and we are even able to duplicate the specific conditions – in terms, for example, of rock dynamics and weather – that can be encoun-tered on individual mines.”

He adds that a simulator should be seen as just one element of a broader training pro-gramme and says CAE Mining is well equipped to develop programmes of this type, tailored to the exact needs of the customer.

At the heart of CAE Mining’s offering to the mining industry is the CAE Terra™ mining simulator, which allows high-fidelity simula-tion of any opencast or underground mining environment. Built with high-definition projec-tor screens and a six degrees-of-freedom motion system, the CAE simulators can simulate virtu-ally any mining machine – from LHDs working underground to massive draglines working on surface. The system is available as a ‘classroom’ design for a training centre approach or can be housed in a deployable container, which allows a high degree of flexibility at mine sites.

Simulator cabins – it takes less than 10 min-utes to switch one machine-specific cabin for another – contain a base or motion structure, an operator seat, simulated consoles, pan-els, displays and interface modules. They are designed with an instructor station that allows effective training sessions between instructor and trainee. The instructor can dynamically alter the training scenario, thus enhancing the overall training experience.

According to Perry, a particularly strong feature of the CAE Mining simulator system is its collaborative training capabilities. “Mining is a complex task demanding teamwork – for

example, excavators and loaders typically work closely with dump trucks in open-pit opera-tions – and any training system should take this into account,” he explains. “Our technol-ogy makes this easy and trainees are able to interact in the type of real-life scenarios they will experience on mine sites.”

He also says that CAE Mining’s simulators meet the exacting requirements of aviation and military operation with 99 % training avail-ability and reliability. In addition, simplified design and improved diagnostics result in a significant reduction in preventative and cor-rective maintenance hours.

For his part, De Villiers notes that the CAE Mining simulator system is not only valuable in training ‘new hires’ but can also be used to upgrade and enhance the skills of even the most experienced operators, potentially result-ing in substantial productivity increases. “We can assess current in-cycle operational data and performance of machines and compare it to industry norms,” he says. “Based on these results, our training programme can be adapted to focus on areas where improvement is needed.”

Looking ahead, De Villiers says that he is travelling extensively to mine sites around Africa and is receiving a positive response from companies. “We have only been actively marketing our system for a few months and our next step will be to put in a demo unit here in South Africa,” he says. “In the meantime, we can take potential customers to one of our mine sites in the Americas or to our support centre in Montreal, which monitors 1 300 simulators being used around the world, to see our tech-nology in action. I can almost guarantee they will come away highly impressed.”

A simulator supplied to Fres-nillo, which operates seven mines in Mexico.

“We believe that we can get our simulators closer to the real equipment than anyone else ... .”

Mark de Villiers, CAE Mining Africa

http://www.panalytical.com/

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Immersive Technologies’ simulators are used at hundreds of sites around the world to train ‘green’ operators, improve experienced operators, drive continuous improvement projects and ultimately

deliver real results in safety, productivity and unscheduled maintenance. With the introduc-tion of the new IM360 Advanced Equipment Simulator, the company says it has expanded the scope of simulation-based training to now go beyond equipment operator training, while dramatically increasing the level of training flexibility available.

“Product development over our 20-year his-tory has focused on making mine sites safer and their employers more profitable through our simulator-based training and – together with our integration and support expertise – the IM360 will continue to deliver on our mission,” says Wayde Salfinger, Executive Director-Marketing, Immersive Technologies.

The IM360 features the flexibility to provide simulation-based training for all machines from Immersive Technologies’ largest range of min-ing equipment simulator modules including surface, underground hard rock and under-ground coal equipment. Through the patented RealMove™ technology, the IM360 allows trainees to freely walk around their mine site and practise responding to emergency evacu-ations and identify risks in a 360 deg realistic environment.

“We have an extensive catalogue of case studies proving the effectiveness of Immersive Technologies simulators in mines and training centres. We see actual in-pit results from cus-tomer simulator training programmes averaging 10,4 % increases in tyre life, 6,85 % reduction in fuel use and 62,2 % reduction in brake abuse among many others. These case studies are validated by third-party measures and equate to significant savings for our customers,” says Bryant Mullaney, Global Professional Services Manager, Immersive Technologies.

The removable motion base for seated equip-ment operator training allows trainees to feel the movement they would experience in the real machine, including rapid jolts, feelings of

acceleration or the vibration in the seat as they traverse over steep and rocky roads or along uneven surfaces.

The visual display system for seated equip-ment includes RealView™ technology, which dynamically adjusts the perspective of the trainee providing a true real-world view out-side the cabin while increasing the level of depth perception.

The IM360 is available in classroom and transportable configurations. The classroom model has been designed to be installed in existing buildings or training rooms and allows for multiple simulators to be located close together.

This new line of simulators, with their 360 deg immersive display, walk around features and flexibility to run surface and under-ground machines, complements Immersive Technologies’ current range of Advanced Equipment Simulators including the PRO3-B.

In contrast to the IM360, the PRO3-B is designed specifically for surface. Its 180 deg seamless curved screen features enhanced vis-ibility for machines where the operator has a high seating position such as haul trucks, excavators, shovels, dozers, wheel loaders, draglines and graders.

In other recent news, Immersive Techno-logies reports it has extended – for five years – its decade-long partnership with Caterpillar Global Mining. Through this for-mal agreement, Caterpillar Global Mining will continue to exclusively recommend Immersive Technologies’ high and medium fidelity train-ing simulator products while providing the confidential technical information required to develop the simulators.

New platform “redefines” simulator-based training

The IM360 Advanced Equipment Simulator from Immersive Technologies.

Earlier this year Immersive Technolo-gies, which has its global head office

in Perth, Australia, launched its IM360, which it claims redefines simulator-

based training for mining.

PRODUCT News

52MODERN MININGNovember 2014

Caterpillar’s latest generation Cat 374F L and Cat 390F L hydraulic excavators (respectively in the 75-and 90-tonne class) build on the performance of the D-Series and come to market with key enhance-ments in terms of safety, ultra-fast truck loading cycle times, fuel efficiency, and longer-term downstream availability.

These new units replace the Cat 374D L and Cat 390D L hydraulic excava-tors launched globally in 2010 and are designed to meet diverse production tasks ranging from mining, quarrying and road construction to large-scale earthmoving projects. F Series models are being rolled out to the Southern African market from the fourth quarter of 2014.

Delivering power on demand, the Cat 374F L is equipped with the Cat C15 ACERT

engine, and the Cat 390F L with the Cat C18 ACERT unit. These engine models, which were also fitted on the previous D-Series machines, have been further refined by Caterpillar’s research and development team. They consume significantly less fuel thanks chiefly to two new built-in features: automatic engine speed control; and auto-matic engine idle shutdown.

Net power on the Cat 374F L is 353 kW (ISO 9249) and hydraulic power 311 kW (compared to 355 and 302 kW for the Cat 374D L), whilst engine rpm (opera-tions and idle time) are down from 1 800 to 1 600. This results in an approximately 5 % saving in fuel consumption and a 3 % productivity gain: an estimated 8 % plus fuel saving improvement overall.

A similar 8 % plus fuel gain is antici-pated for the Cat 390F L. Net engine power (ISO 9249) and hydraulic power on the new model is 391 kW and 341 kW (compared to 390 and 323 kW on the Cat 390D L). Engine rpm (operations and travel) are down from 1 800 to 1 700, with an approximately 5 % productivity improvement and a 3 % fuel consumption saving.

A major contributor to these machine efficiency results is Caterpillar’s introduc-tion of the Adaptive Control System (ACS) valve, a further advance on the previous generation’s Proportional Priority Pressure Compensation (PPPC) system.

New excavators launched by Caterpillar “The new ACS valve takes the PPPC sys-tem a step further and has been designed to intelligently manage restrictions and flows. It opens slowly when your range of joystick lever movement is small and opens rapidly when movement is high,” explains Barloworld Equipment Group Product Manager Johann Venter. “More specifically, it puts flow exactly where you need it, when you need it, which means you will experi-ence much smoother operation, greater efficiency, and ultra-fast swing speed gains in hard digging and truck loading.”

The new side-by-side cooling system is completely separated from the engine compartment to reduce noise and heat. In addition, it features easy-to-clean cores and a new variable-speed fan that reverses to blow out unwanted debris that may accumulate during the work day.

In terms of ground engagement, in the field the new F-Series comes equipped as standard with the new Cat Grease Lubricated Track 4 (GLT4) undercarriage: their track links protect moving parts by keeping water, debris, and dust out and grease sealed in, which delivers longer wear life and reduced noise when trav-elling. Meanwhile, the integrated Cat Positive Pin Retention 2 (PPR2) system pre-vents looseness of the track pin in the track link, which reduces stress concentrations and eliminates pin walking for increased service life. Barloworld Equipment, tel (+27 11) 929-0000

The new Cat 374F L hydraulic excavator has a maximum operating weight of 75 170 kg.

MechCaL starts installation of fans at platinum minesLocal fans and ventilation firm MechCaL has been appointed by the Anglo American Platinum group to install 316 of its innova-tive fans at seven of the group’s mines.

The official order came through in July this year but delivery and installation of the fans has now begun and will continue until March 2015. According to MechCaL’s Gavin Ratner, the mines that will benefit from MechCaL’s technology are Dishaba, Tumela, Bathopele, Khuseleka, Thembelani, Siphumelele and Twickenham. MechCaL will be supplying units ranging from 22 kW, 762 mm to the standard 45 kW, 762 mm fans, as well as a few of its 75 kW, 1 016 mm fans for underground use.

MechCaL says it has become well known for its innovative designs and unique use of technology to manufacture fans for the mining industry. Their patented design is coupled with the use of light weight mate-

rials to boost efficiency, deliver operational and energy savings, and lower mean time between failures.

Ratner explains that the existing fans being used underground at these mines are cambered plate designs that are tradition-ally very inefficient. “At best they perform at 60 % efficiency and have in most cases been refurbished numerous times, resulting in a degradation of performance,” he states.

It was MechCaL’s unique technology that caught Anglo Platinum’s attention, says Gerhard van den Berg, Group Energy Engineer for Anglo American Platinum. “We replaced 36 fans at our Union mine with MechcaL fans as part of an Eskom Demand Side Management project. The success of the project prompted the company-wide roll-out of MechCaL fans.”

He says the fans installed at Union mine were aerodynamically superior to the fans

that were used before and were proven to save 19 kW per fan when compared to the previous fans with the same service delivery. Van den Berg commented on MechCaL’s ability to problem solve for their clients in the field, pointing out that while the initial fans were made in composite materials, MechCaL then replicated them in steel, providing a much more robust solution while still maintaining significant power savings.

MechCaL claims its designs have been proven to provide 80 % or better efficiency in performance and deliver higher flow rates. This results in significant savings in power drawn from the electrical grid. Added to this, MechCaL has developed advanced VSD systems, which incorporate intelligent control that will enable ventila-tion on demand for the secondary fans.

MechCaL, tel (+27 12) 755-8307, website: www.mechcal.co.za

PRODUCT News

Metso is supplying the world’s largest cone crusher, the newly developed MP2500, to First Quantum’s new Sentinel copper mine in north-western Zambia. The crusher will be fully operational in early 2015. The crusher order, worth more than €10 million, was booked in Metso’s orders received in Q1 2013.

The MP2500 was selected for Sentinel because it can process large volumes of rock as a single machine. Because the unit has the largest feed opening ever made, it can crush bigger chunks of rock. Its ability to crush rock further than traditional crushers decreases energy consumption in the later parts of the process.

The MP2500 cone crusher is designed for use in secondary and tertiary crushing. It links easily with other Metso products to create a simplified, cost effective process flow for high production sites. Larger equipment reduces the number of crushers to install since there is more throughput from each crusher. To duplicate the performance of two MP2500s would require four smaller MP1250s and all associated infrastructure.

The development of the MP2500 cone crusher resulted in innovations in the area of health and safety, many based on discussions with First Quantum.

Serviceability and ease of maintenance were also a focus during the design. Since

November 2014MODERN MINING53

Sentinel to get world’s largest cone crusher

The MP2500 is reportedly the world’s largest cone crusher.

the part was so large, Metso developed a new method to remove the socket which elimi-nates heating of the part in a difficult working space. This method also eliminates process variables associated with socket removal and reduces the overall stress on both the socket and main shaft. Metso has a patent pending for this new concept.

Metso is assisting Sentinel mine to guaran-tee the efficient operation of the new MP2500 by stationing full-time field service engineers on site for one year after commissioning and by stocking critical spare parts in Metso’s distri-bution centre in South Africa, as well as on-site.Metso, tel (+27 11) 961-4000

The Hytec Group of Companies’ partnership with Tramtrade, its most successful authorised distributor, has positioned the Group in the centre of Carletonville-Westonaria’s service-demanding gold mining hub. As the official distributor of the Group’s hydraulic, pneumatic and drive control products, Tramtrade has seen exceptional growth for the past 10 years and gives 33 mine shafts and 14 processing plants close access to the Hytec product range, and 24-hour technical service and support.

Th e H y te c G ro u p h a s a n o f f i c i a l business unit in K lerksdorp, and in Carletonville-Westonaria it has another ‘busi-ness unit’ through Tramtrade – its conduit to gold mining in the area.

Independently-owned, Tramtrade pro-cures and sells the complete range of the Hytec Group’s products and technologies used in gold mining, including hydraulic pumps, valves, cylinders and filtration tech-

Hytec distributor shows strong growthnology, delivering an enhanced level of service and component supply directly to the surrounding mines with a short-lead time.

Understanding the costly consequences of downtime in gold mining, Tramtrade retains stock of ‘critical movers’ (particularly hydraulic pumps) at its offices and offers 24-hour ser-vice and support to Carletonville-Westonaria.

Along with a full complement of Hytec Group products, Tramtrade has also devel-oped its own range of flow and control valves specifically for non-hydraulic applications.

The Hytec Group upholds its product war-ranties for all Bosch Rexroth product sales made by Tramtrade in Carletonville-Westonaria. In addition, the Group’s services and certi-fications, including its cylinder exchange programme and official Bosch Rexroth Service Centre of Competency Certification, are also available for Tramtrade customers.Freddie Kühn, Hytec, tel (+27 11) 975-9700

PRODUCT News

54MODERN MININGNovember 2014

Crushing and screening specialist Pilot Crushtec International has recently con-cluded the sale of three Sandvik products for use in a coal mining project in northern Mozambique. Africa Sales Manager Wayne Warren explains that the business was facilitated by sourcing specialist Maxim Trading Enterprises, which managed the transaction on behalf of the end user.

“Maxim’s customer was looking for equipment to produce economically via-ble quantities of aggregate to be used in the infrastructure necessary to support a large and expanding opencast operation. The company had ruled out the continued

use of contractors and provided Maxim with a specification brief for the necessary equipment and the quality and volumes of material required.”

According to Warren, Pilot Crushtec International’s policy of growing its foot-print in Mozambique delivered a rapid response in terms of providing the most suitable equipment as well as the accom-panying after sales support.

The equipment supplied to Maxim’s customer comprises a Sandvik QJ241 jaw crusher, a Sandvik QH331 cone crusher and a Sandvik QA451 triple deck double screen. The products – all powered by Cat

diesel engines – are tracked and so are fully mobile. Working in train, they can produce up to 130 t/h of sized aggregate.

Pilot Crushtec International was able to provide installation, commissioning and training on site, conducted by Portuguese speaking sales engineers.

Heath McMaster, partner in Maxim Trading Enterprises, was impressed by the competent way in which the transaction was handled.

“We were obviously looking for a respectable company from which we could source the equipment and Pilot Crushtec International was a logical call as it leaves a very visible trail within Southern Africa,” he says.

McMaster has recently returned from northern Mozambique and is upbeat about the region’s future: “Apart from coal, there are good prospects centred on com-modities like gas, oil, precious stones and graphite.”Pilot Crushtec International, tel (+27 11) 842-5600

Pilot Crushtec supplies coal project in Mozambique

The Sandvik machines working on the coal mining project in northern Mozambique.

November 2014MODERN MINING55

Cone crusher demonstrates its potential at local plantWeir Minerals Africa recently commissioned the world’s first Enduron® SP cone crusher at a local gold waste rock aggregate plant. Early results indicate that this new technology has significant potential for smaller miners and aggregate producers alike, delivering all the performance characteristics these markets have come to expect of a crusher, but with improved reliability.

According to Weir, the Enduron® SP cone crusher is characterised by a unique and ingenious design, easily combining light weight, compact dimensions and a robust frame to offer one of the most advanced cone crushers in the industry.

“Enduron® SP cone crushers range from 100 hp to 400 hp, delivering one of the highest production-capacity-per-feed ratios in the indus-try,” JD Singleton, Process Manager at Weir Minerals Africa, says. “Cone crusher adjustments and operations are fully automated, and a hydrau-lic adjustment and locking system allows adjustments under full load.

“The power of a high eccentric speed, up to 375 rpm, with a larger crushing stroke results in more tons per hour produced, compared to standard cone crushers,” he continues. “In fact, the SP series of cone crushers delivers 30 to 40 % more capacity per hour than spring-type cone crushers, according to our data and operational analysis. In addi-tion, the Enduron® SP series of cone crushers has a high pivot point and increased mantle slope that result in a high-quality, cubical product.

“We installed the Enduron® SP cone crusher on a turnkey basis and the customer has been impressed with the increased throughput, com-pared to other crushers in his plant, and the fact that a more consistent size range is being achieved.

“Based on this performance, we believe the Enduron® SP cone crusher is going to prove extremely appealing to a lot of operations in the mining and aggregate markets. Having proved its proficiency in this local operation, we intend to roll this technology out to all the territories we serve through our 20 service centres scattered around Africa. These crushers are ideal for the African context, particularly in terms of prepar-ing feeds for High Pressure Grinding Rolls (HPGRs) or milling circuits, and to support aggregate specifications.”

Weir Minerals Africa plans to support these and other crushers in the Enduron range with local production. This includes local manufacture of crusher liners at the Weir Heavy Bay Foundry in Port Elizabeth. Rene Calitz, Weir Minerals Africa, tel (+27 11) 929-2622

PRODUCT News

The first Enduron cone crusher to go on trial in an aggregate facility in South Africa.

PRODUCT News

56MODERN MININGNovember 2014

Weba Chute Systems of South Africa has competed successfully against several major players in the United States to win a multimillion dollar contract for work on a terminal upgrade project at United Bulk Terminals (UBT) on the Mississippi River south of New Orleans in Davant, Louisiana. UBT is one of the largest dry bulk terminals in the United States.

This latest order follows Weba Chute Systems’ original installation of a WEBA Transfer Chute System for UBT in 2002.

“It was a successful installation and the client was very happy. In fact they are car-rying out maintenance on it for the first time ever during the December shutdown this year, meaning that it has been operat-ing maintenance free for 12 years. On the back of this they are upgrading the termi-nal,” says Mark Baller, MD of Weba Chute Systems. “We were obviously well posi-tioned. We did compete against some of the other players in the American market

The United Bulk Terminals project in New Orleans in the US necessitated a complex chute design in order to ac-commodate the client’s required flow options.

Weba Chute Systems wins multimillion dollar US contractbut were successful in winning the tender. This is the first phase of the upgrade proj-ect, which will be followed by additional phases for which we envisage getting work as well.”

UBT is located on 460 ha and is the first dry bulk terminal inbound on the Gulf, offering customers significant cost and time benefits by avoiding the logisti-cal challenges of navigating ocean-going vessels through the congested New Orleans area. It specialises in the handling of coal and petroleum coke and offers a full suite of ground-based service capa-bilities. Export product arrives via inland barge and is either transferred directly to an ocean vessel or put to storage on a soil cement pad.

“UBT is essentially a barge loading and unloading terminal. Smaller river barges come from down river and their loads are either stockpiled or consolidated into the bigger ocean-going vessels. Some are not transatlantic vessels but simply larger ocean barges that will transport coal to places like Florida,” Baller explains.

The current upgrade project focuses on environmental compliance and improved efficiency in handling multiple products. There are seven Weba transfer chute sys-tems involved in the project that are being designed and fabricated in South Africa, after which they will be containerised and shipped across to the United States.

“The initial chutes are actually already in production here. The main priority is for the first three to get to site by year end, with the second batch following about two to three months after that,” says Baller.

The project is scheduled for completion by mid-2015. Baller adds that the original chute installed in 2002 is being modified with a new bottom section to allow it to integrate with another chute feeding directly in front of it.

“The C system side has a complex trans-fer tower which includes three incoming and outgoing conveyor belts, with the chutes happening to feed multiple out-going conveyor belts. Thus it is quite a complex chute design in order to be able to accommodate the client’s required flow options.”

The project is being carried out in con-junction with Weba Chute Systems’ agent in the United States, Power Techniques from Alma in Illinois.

The belt size for the UBT project is 1 829 mm, with an empty speed of 4,56 m/s and a full speed of 4,7 m/s, according to Guilherme de Sousa, Weba Chute Systems’ Senior Draughtsman. The tonnage is a maximum 6 000 short tons an hour, with an average of 3 000 short tons. The mate-rial being handled is predominantly minus 50 mm coal and coke with a maximum lump size of 100 mm and an average lump size of 50 mm.

Due to site specific material and opera-tional conditions, the seven Weba Transfer Chute Systems are to be ceramic lined.

A major challenge was the fact that the new belts have to integrate with existing conveyors and structures and therefore the layout of the chutes was not always optimal in terms of the available transfer heights. Mark Baller, M & J Engineering, tel (+27 11) 827-9372

Radio system makes use of licence-free frequencies.Booyco Electronics’ Remcon radio system is primarily used to transport data aris-ing from remote monitoring of areas such as boreholes, reservoirs, ventilation fans and pump stations, up to 20 km away. This advanced technology eliminates costly annual licence fees by making use of licence-free frequencies. The system is modular, making extension a simple procedure.

The Remcon radio system operates both through serial communication with Booyco Electronics’ fixed product range, or inter-faces with other hardware via Ethernet, for

example, in the case of existing PLCs.The control room system is able to use

any industrial type SCADA software pack-age, such as Adroit, iFix, Citect, InTouch and Wincc. All panels are supplied standard with battery backup, a feature considered critical in today’s mining environment where power supply is not always assured. Panels are IP55 rated, while the industrial enclosures are manufactured from mild steel, stainless steel or polycarbonate mate-rials, depending on the application.Anton Lourens, Booyco Electronics, tel 0861 BOOYCO (266926)

The Remcon radio system operates both through serial communication with Booyco Electronics’ fixed product range, or interfaces with other hard-ware via Ethernet.

PRODUCT News

November 2014MODERN MINING57

Johannesburg-based Osborn has secured its first export order to Malaysia for crush-ers and feeders to be employed in a new ferroalloys smelter.

This substantial order comprises two jaw crushers (an Osborn 36 x 23 inch dou-ble toggle jaw crusher and 48 x 12 single toggle jaw crusher), 66 Osborn Obex vibrating pan feeders (650 x 300 mm) and 22 Osborn IFE 650 x 950 mm electro-magnetic feeders, reports Area Manager Douglas Mouton.

Osborn’s long-standing reputation as a leading supplier of high quality equip-ment, as well as its competitive pricing, contributed to the company winning this order on open tender, says Mouton. “In addition, Osborn was able to offer the client a package deal that includes the electromagnetic feeders, which are being supplied by our principal in Austria, IFE Aufbereitungstechnik GmbH.”

The jaw crusher and pan feeders will be manufactured at Osborn’s Elandsfontein

Osborn secures first export order to Malaysiafacility and shipped to Malaysia’s Bintulu Port. Mouton notes that the Osborn equipment is ideally suited to the testing ferroalloys industry. “The robust Osborn jaw crushers being supplied are standard units, while the Osborn pan feeders have

Osborn Obex vibrating pan feeders for Malaysia.

been customised for the dusty operating environment. The modifications include special dust enclosures, thicker liners and a redesigned drive arrangement to suit the installation,” he explains.Osborn Engineered Products, tel (+27 11) 820-7600

PRODUCT News

58MODERN MININGNovember 2014

Multotec introduces ion exchange technology

A versatile Clean-iX®/CIF®/DeSALx® test unit for metal recovery or water treatment in fabrication.

Multotec has partnered with Australian company CleanTeQ to introduce con-tinuous counter-current ion exchange technology into the African mining indus-try for effluent treatment and metals recovery.

“Hailed as the ‘Rolls Royce’ of ion exchange technology, Clean-iX® provides customers with higher metal recoveries,

lower capital and operational costs and reduced environmental impact,” says Rolf Steinhaus, Director at Multotec Process Equipment.

Clean-iX® has a more compact foot-print than conventional technologies as it at times eliminates a number of pre-treatment processes and thus reduces the overall flowchart. “Mining is seen as an

undesirable activity at times, often due to the negative side effects such as pollution or contamination. The goal with this technology is to be part of a more sustainable process, as it is environmentally friendly,” Steinhaus says.

“Multotec would like to focus on smaller operations where we can containerise the technology, which makes for easier deployment and rede-ployment in Africa. Depending on the capacity, we can modu-

larise containerised systems up to a five million litres a day capacity with the maxi-mum containerised system capacity being 1 million litres per day. Beyond that we would need to consider skid mounted or free standing systems.

“The system is remotely controlled and completely automated, and therefore minimises labour and skill requirements on site, which in turn reduces operating costs. Furthermore, it utilises relatively cheap reagents to regenerate the resin, which also impacts positively on the bottom line,” Steinhaus adds.

The principles of ion exchange are well understood and it has been com-mercially used in the water treatment and mining industries for more than 50 years. CleanTeQ’s innovation in this regard is related to its processes and equipment. “This is a fairly niche application that takes out dissolved metal ions or ionic com-plexes from a solution, whether water or a leachate. Continuous counter-current

PRODUCT News

November 2014MODERN MINING59

Babcock to release new SDLG wheel loaderIn response to an increasing number of customer requests, Babcock says it will introduce a 6-tonne (payload) wheel loader with a 3,5 m3 bucket to its SDLG range early in 2015. The LG968 slots into the existing range of LG918, LG938, LG958 and LG978 wheel loaders already operating through-out Southern Africa.

“A batch of the new LG968 wheel loaders is already on order for specific customers,” says Grant Sheppard, General Manager of SDLG. “Our customer base has been very impressed with the performance of the LG958, but several customers have asked for a wheel loader slightly larger than this, but smaller than the LG978. The new LG968 has a similar drive train to these models and provides excellent accessibility for rehan-dling applications.

“Considering we only launched the SDLG range in this region18 months ago, the market’s response has been very excit-ing. Many first-time SDLG customers have already purchased additional units and

we’ve been asked to keep extending the range. Over and above the addition of the LG968, we’ll be adding more models to our line-up during the course of 2015.”Babcock, tel (+27 11) 230-7300

ion exchange technology, however, is cer-tainly new to the African mining industry,” Steinhaus says. “It is a natural addition to Multotec’s product portfolio together with our already established solid-liquid separa-tion equipment range.”

The process consists of a number of sub processes, each designed for a spe-cific function, namely adsorption, fluidised wash, elution and wash. Depending on the application, there are three column types that can be used in order for the system to operate in the presence of solids ranging from 100 ppm to 40 % by weight. These are the moving packed bed column, fluidised column and agitated bed column.

Selection of the appropriate column type allows for optimal recovery of met-als from leached pulps or from clarified solutions. Clean TeQ’s patented U column ensures concentration of the target metal in situ, to produce an eluate of much higher concentration and purity than achievable with any other available elution technology. Bernadette Wilson, Multotec Group, tel (+27 11) 923-6193

Coming soon to South Africa – the 6-tonne LG968 wheel loader.

PRODUCT News

60MODERN MININGNovember 2014

Index to advertisersAir Liquide 58Alco-Safe 7B&E International 2Barloworld Equipment 13Bauma Conexpo Africa 37Bell Equipment 5bme OBCBooyco Electronics 55CAE Mining 48Condra Cranes IBC

Eazi Sales & Services 59Flexicon Africa 11FLSmidth 29Johnson Crane Hire 57Joy Global Africa 28Komatsu 53Krohne 19LogiMan 45M & J Engineering 39MDM 9

Mineral Process Services 8Mining Indaba 32MMD Mineral Sizing Africa 17PANalytical 50Scaw Metals Group 26Sedgman 15SRK Consulting 44Toyota Hino IFCVital Engineering 54WorleyParsons OFC

BMI Group appointed as CP distributorInternational construction equipment manufacturer Chicago Pneumatic (CP) has appointed BMI Group as its latest autho-rised distributor in South Africa. With a depth of experience in South Africa’s con-struction and mining sectors, the company will support Chicago Pneumatic in fur-ther expanding its growing presence in Southern Africa.

CP’s product portfolio includes handheld pneumatic, hydraulic and petrol-driven tools alongside compaction equipment, rig-mounted attachments, portable com-pressors, generators and light towers.

“What ultimately made us decide to partner with Chicago Pneumatic is the tried and tested nature of their equipment, which is ruggedly built and ideally suited for

use in tough African working conditions,” comments David Ireland, MD of BMI Group. “This, and the diverse range of competitively priced construction equipment solutions on offer, made us jump at the opportunity to work with Chicago Pneumatic, which we see as a great fit for our customer base.”

As a sign of its commitment to the Chicago Pneumatic brand, BMI Group recently took delivery of an order for the first CP1100-21 high pressure, mechani-cal portable compressor in Africa, which is to be used in a special application on the South African railways.

Founded in 2010, the BMI Group is head-quartered in Johannesburg and operates seven sales and services centres located in strategic locations across South Africa.

The Zest WEG Group’s EnI Electrical, one of Africa’s largest electrical construction companies, has secured a major contract from Swakop Uranium at its Husab project in Namibia. The professional team includes

international engineering and project management company AMEC and Tenova Bateman. “As the Zest WEG Group, we are able to make projects work and blend our expertise to provide total solutions for our clients,” Trevor Naude, EnI Electrical, Managing Director, says.

“While the Zest WEG Group is well known for distributing one of the larg-est electric motor ranges in the world from WEG of Brazil, our comprehensive product line up includes switchgear, vari-able speed drives, motor control centres, gensets and renewable energy solutions. We also have three fully fledged manufac-turing facilities in South Africa that we are in the process of expanding as we increase our footprint in Africa,” adds Louis Meiring, CEO, Zest WEG Group.

EnI Electrical’s scope of work is the medium voltage (MV) and high voltage

(HV) infrastructure up to the MCC incom-ers. “We will construct 33 kV overhead power lines and install and commission all MV and HV switchgear. Our scope of work also encompasses installation of the free issue MV transformers and the installa-tion and commissioning of all distribution transformers, in addition to all the related cabling and racking work.”

The one-year contract commenced in August 2014 and is scheduled for comple-tion in August 2015.

The transformers have been supplied by group company Zest Energy, while EnI Electrical will install, integrate and commission them. “Strategically, we are positioning ourselves as the electrical infrastructure construction company of the Zest WEG Group, specifically focusing on overhead lines and wooden pole con-struction up to 66 kV, designed and built to the highest standards,” Naude says.

“When I joined EnI Electrical, we were solely an electrical and instrumentation control company. We have now taken this business to a whole new level whereby we can cater for the HV portion of a project up to 275 kV. That experience resides in Zest Energy and is one of the reasons why the Zest WEG Group is so successful at pro-viding total solutions to meet a variety of customer requirements.”

Naude adds: “This is an acquisition mar-ket. Many companies are being acquired, whereupon they boast that they are now integrated and working together, but this is rarely the case. On the other hand, we have proven that our group philosophy and culture in the Zest WEG Group lends itself to such synergised solutions and value addition.” Zest WEG Group, tel (+27 11) 723-6000

EnI Electrical is the electrical infrastructure construction company of the Zest WEG Group, focusing on overhead lines and wooden pole construction up to 66 kV.

EnI Electrical secures Namibian mine contract

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