inside mining jan 2013

iningMD Erik Bruggink on Basil Read Matomo’s succesful diversification strategy P12

PRESTIGIOUS PROJECTS

2012/2013• Kolomela • Tharisa

• Cullinan • Bakubang • Vlakfontein

• Barberton Tailings Plant

ENGINEERING AND CONSTRUCTION Taking the African continent by storm

HOT SEAT

www.miningne.wsMEDIA

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Africa’s green blaster

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3Ins ide Mining 01 /2013

ON THE COVERining

MD Erik Bruggink

on Basil Read Matomo’s

succesful diversifi cation

strategy P12


2012/2013• Kolomela • Tharisa

• Cullinan • Bakubang • Vlakfontein

• Barberton Tailings Plant

ENGINEERING AND CONSTRUCTION Taking the African continent by storm

HOT SEAT

www.miningne.wsMEDIA

Highly commended 2012 PICA Cover of the Year - B2B Publishing

ISSN 1999-8872 • R35.00 (incl. VAT) • Vol. 6 • No. 1 • January 2013

Africa’s green blaster

BME


ENERGY EFFICIENCY AND RENEWABLES P54

SPECIAL FEATURE


iningN O W L E D G E Y O U N E E D F R O

January 2013January 2013CONTENTSBME: The green blasters broaden their African footprint

P8P8

28

20

94

EDITOR’S COMMENT

55 Starting 2013 with a BANG!

MINING NEWS

66 Highlights of 2012

HOT SEAT

1212 Basil Read Matomo’s diversifi cation strategy pays off

HOT TOPIC

1616 Tracking the trends in 2013


2020 Kolomela – Kumba Iron Ore’s major mega project

2626 Tip-top Tharisa

2828 Cullinan reveals its true colours

3232 Wesizwe’s Bakubung breaks new ground

3838 Vlakfontein fl ies

4242 Barberton Tailings Retreatment Project – Pan African Resources’ new star attraction

ENGINEERING AND CONSTRUCTION

8080 BVi Group’s journey into Africa

8282 One small step for TWP, one giant leap for international mining

8686 Group Five cements its Africa position

9090 Building in a fl ash

9292 Decades of gold experience delivers

9494 Introducing a new global mining, oil and gas company

PROJECT DELIVERY

9898 Mine2-4D 2012 maximises the value of mineral assets

100100 Sharing the load

110110 Fasken Martineau to merge with Bell Dewar

CETERUM CENSEO

114 114 Dawn come quickly!

42

Ins ide Mining 01 /2013 5

I have never in my career as a mining journalist and editor been on so many mines visits in such a short space of time as I did in No-vember and half of Decem-ber. Even as I write this, I am sitting in a bus on my way to De Beers Consolidated Mines’ Voorspoed mine in the Free State. There is no better way to deliver quality stories than from directly on-site.

The great news, however, is the significant growth Inside Mining has achieved over the past year. And we are starting 2013 with a bang: the January edition is a record-breaking is-sue as it the largest ever since its launch in 2008.

I can attribute this success largely to the unbe-lievable support from the industry for the editori-al opportunities I have been given and allowed to share with our readers over the past year, but also to our advertisers, who have journeyed alongside us and supported us as the magazine has grown from strength to strength. I believe 2013 will be the year we cement our position as one of THE mining trade and technical magazines of choice.

As you page through the magazine, I hope you will enjoy reading it as much as I enjoyed writ-ing it. My selection of prestigious projects once again salutes our local mining sector, which in so many instances continues to flourish in the face of so many challenges. Every project varies in size, nature and status, but is excelling in its own right.

The mega-large Kolomela project, which was only officially launched toward the middle of 2012 and is already exceeding production tar-gets, was brought on-stream five months ahead of schedule, but has benchmarked safety records, is financially contributing to the development of hundreds of houses for its employees and is equally as committed to reducing its impact on the environment.

Cullinan may be the world’s oldest diamond mine, but instead of working its way towards

Publisher Elizabeth Shorten

Editor Laura Cornish

Head of design Frédérick Danton

Senior designer Hayley Mendelow

Chief sub-editor Claire Nozaïc

Sub-editor Patience Gumbo

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Production manager Antois-Leigh Botma

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Starting 2013 with a BANG!INSIDE MINING’S SHOW STOPPER

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

@mining_news

www.facebook.com/pages/Mining-News

closure, it is ramping up sig-nificantly. Wesizwe, which took what seemed like a life-time to get going, is moving forward in the face of a sector plagued by strikes. Govern-ment-owned Vlakfontein has a year of coal delivery to its name, has achieved its tar-gets and is already planning for a major expansion. And because I always add a small-scale project to the mix, the Barberton Tailings Reclama-tion Plant project has tipped the scales in its favour. There is something particularly spe-cial about this project, which aims to reprocess South Afri-

ca’s oldest tailings material. It carries so much of our mining history.

A new feature of Inside Mining is our brand-ed issues, of which there will be six in the year. These aim to address some of the larger issues currently facing the mining industry and what is being done to solve them – a platform to share ideas and successes, discuss challenges and offer solutions and opinions. Our first brand looks at the need for increased energy efficiency and the future role of renewable energy in the min-ing sector. Pertinent wouldn’t you say? At least one thing is clear: the industry is committed to investing significantly in clean energy alterna-tives, which have the added benefit of reducing carbon footprints.

Anyway, I look forward to networking/catching up at the 2013 Mining Indaba, and a year filled with prosperity and lots of good fortune.

Laura Cornish

2012 ended on a high note – for myself and the rest of the

Inside Mining team at least.

Editor’s comment

compiled by Ameerah Griffin

Top mining stories headlining this year

Mining newswww.miningne.ws

SOUTH AFRICA Will more mining leaders step down?

Source: www.miningne.ws

2012 may go down well in history as the year that saw many mining CEOs leave their posts, often unexpectedly.

Cynthia Carroll resigned as CEO of Anglo American in October and announced she has been appointed as new chairman of the De Beers Consolidated board.

In September, former Kumba Iron Ore CEO Chris Griffi ths made an internal move and replaced Anglo American Platinum former

CEO Neville Nicolau. Kumba appointed Norman Mbazima as new CEO in the same month.

Replacing Mbazima at Anglo American Thermal coal is former executive director of Anglo American South Africa and CEO of operations in Zimbabwe, Godfrey Gomwe.

Aquarius Platinum announced its CEO change for 2012, with the appointment of COO Jean Nel as new CEO, replacing Stuart Murray who resigned in October.

Former Metorex CEO, Terence Goodlace, took over the reins at Impala Platinum in July, replacing David Brown.

Lonmin appointed CFO Simon Scott as act-ing CEO in August. Scott succeeds Ian Farmer.

BHP Billiton has announced its succession plan, which will oust South African born Marius Kloppers.

As Xstrata and Glencore merges, it is said that Mick Davis may also leave his helm as Xstrata CEO.

| SOUTH AFRICA | Gold Fields introduces Sibanye Gold Source: www.miningne.ws

In November, Gold Fields an-nounced the creation of new mining company, Sibanye Gold. The creation of Sibanye Gold is a result of Gold Fields unbundling its KDC complex and Beatrix gold mine, together with various service companies. Neal Frone-man, the former CEO of Gold One International and Goliath Gold, will take up the position of CEO of the new entity. Charl Keyter, currently head of fi nance for Gold Fields’ international operations, has been appointed CFO.

| ASIA |China to raise environ-mental bar for mining projectsSource: www.miningne.ws

At the time of writing,

China was planning to issue new guidelines by the end of 2012 to encourage metals miners to conserve domestic resources and protect the environment, a director at the China Nonferrous Metals Industry Association said. Director of heavy metals at the association, Hu Changping, said: “Beijing aims to tighten the re-quirements on fi rms allowed to mine metals and will announce the guidelines before the end of this year.”

| EUROPE | Glencore, Xstrata shareholders embrace mergerSource: www.miningne.ws

Shareholders of the Swiss commodities giant Glencore and Swiss mining group Xstrata approved the merger of the two companies to create a goliath capable of out-muscling nearly everyone in its fi eld.

A full 99.42% of Glencore shareholders voted in favour of the merger during an extraordi-nary general assembly meeting in Zug, central Switzerland, in November.

At the meeting, 90.8% of Xstrata shareholders followed suit during simultaneous meet-ings in Zug and London, clearing one of the fi nal hurdles to the massive merger.

| NORTH AMERICA | Detour Gold set to open Canada’s biggest gold mineSource: www.miningne.ws

Detour Gold is scheduled to open Canada’s largest gold mine in January 2013, just as rallying gold prices set the stage for posi-tive profi ts. The Detour Lake mine in the Cochrane, Ontario, area marks the strongest sign yet of a trend toward massive, opencast gold mining in Canada on a scale more commonly seen in desert geographies in Nevada or Chile, or on the African continent.

Detour Lake will produce about 150 000 oz of gold in the fi rst half of the year as it ramps up to com-mercial production around June. On average, it will produce about 657 000 oz of gold per year for more than 20 years.

Cynthia Carroll Marius KloppersGodfrey Gomwe Mick Davies Simon ScottNorman Mbazima Terence Goodlace

Detour Lake mine

Cover story

Ins ide Mining 01 /20138

W hile BME, a member of the Omnia Group, respects the current nervous South Afri-can and African mining cli-

mate, and remains cognisant of industry challenges, this has had limited impact on the company’s bottom line.

Security of supply“We have experienced phenomenal growth over the past 12 to 18 months, and the resultant levels of excitement in the

Bulk explosives supplier and technologist BME’s business has increased

substantially over the past year thanks to its rapidly expanding African footprint.

Even more impressive, however, is its unwavering commitment to reducing its

carbon footprint and continuously investing in technology, writes Laura Cornish.

company and from our customers is high,” says BME MD, Francois Hay.

“Despite the nervous energy circulating within the mining sector, we remain opti-mistic for the foreseeable future and pre-dict further growth going forward.”

Constant growth demands security of supply, however, and having forecast the company’s widespread success, 2010 saw the company commence with the construc-tion of a new nitric acid plant, which came on stream in March 2012. “And its timing

could not have been better, which has en-sured we have sufficient capacity to meet our supply contracts,” Hay continues.

It also provides the platform to see BME’s growth continue as it fast-tracks its strategy to further increase its African market share. Strategically, the company is focusing heavily on Africa and expects the majority of its new contracts to stem from the continent. Almost 50% of the com-pany’s current business is generated from Africa and this figure is expected to climb

BME broadens its clean African footprint BME broadens its clean African footprint

GREEN BLASTERSGGGGGGGGGGGGGGGGGGGGRRRRRRRRRRRRRRRRRRREEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEENNNNNNNNNNNNNNNNNNNNN BBBBBBBBBBBBBBBBBBBBLLLLLLLLLLLLLLLLLAAAAAAAAAAAAAAAAAAAASSSSSSSSSSSSSSSSSTTTTTTTTTTTTTTTTTTTEEEEEEEEEEEEEEEEEEERRRRRRRRRRRRRRRRRRRSSSSSSSSSSSSSSSSSGREEN BLASTERS

Cover story


further. “Our African experience, which extends back decades, is definitely a com-petitive advantage we offer the industry.

“We are also increasing our storage capacity, doubling the capacity of our emulsion plant in Fochville and plan-ning a new emulsion plant in Delmas, whose construction is due to commence early in 2013.” Another element further

cementing BME’s opportunities for fur-ther growth is its truck building capacity. Bulk emulsion and heavy ammonium ni-trate-carrying trucks are essential for bulk explosives supply for surface operations, which could be problematic considering the current truck shortage. BME has its bulk truck building capacity and intends to increase this capacity threefold to 44 in the current year.

“The company’s overall growth has also seen us invest significantly in our people, with constant upskilling and training. We are also increasing our technical team staff complement.” BME was recently awarded its largest five-year contract to

date with one of the largest interna-tional mining companies.

Clean and greenBoth of the Omnia Group’s nitric acid plants (located together in a single complex) are registered as clean devel-opment mechanism projects. Situated in Sasolburg, they have a combined capacity of 73 000 tpa of nitric acid.

Nitric acid plant fast facts

• The total cost of the nitric acid complex: R1.4 billion.

• Margins have been improved by substituting expensive purchased nitrates with lower cost own-produced nitrates.

• The plant allows the group to take full advantage of expected growth opportunities in mining (and agricultural markets) of Southern Africa.

• It creates opportunity for growth into new markets and additional product ranges.

• There is a five- to six-year payback period. • There is a 60% to 70% capacity utilisation on startup.

• Two nitric acid plants reduce risk and enhance operational flexibility.

erna-

y f

Th e new nitric acid complex is designed to exacting world-class and green standards. Omnia has installed the EnviNOx emis-sions mitigation technology at both new and old nitric acid plants, which eliminates 98% of greenhouse gas emissions. Omnia is also the fi rst company in South Africa to amass over one million carbon credits (42% of the Southern Africa total). Th e new ni-tric acid plant alone should generate up to 350 000 carbon credits annually.

When the new plant is running at full capacity, waste steam from the production process piped through a turbine generates approximately 50% of the total electricity demand for the entire Sasolburg site, in-cluding both plants. This will substantially reduce power costs and the effect of steep electricity price increases, while further reducing the group’s carbon footprint.Inspired work by the project team within

“We have experienced phenomenal growth over the past 12 to 18 months, and the resultant levels of excitement in the company and from our customers is high.” BME MD, Francois Hay

ABOVE The new energy effi cient and low-emission nitric acid facility in

Sasolburg will ensure security of supply in the industry

LEFT Pre-split blast

BME’s MD, Francois Hay, at the opening of the new Nitric

Acid facility

Cover story


The Axxis system

• The Axxis detonator is a standard size detonator that will function in all standard sized boosters used in non-electric blasting. Axxis detonators use two-core double insulated downline cables.

• The Axxis leakage tester is a small low-current device that is used to test a surface line with detonators connected to it for leakage. Leakage is a critical issue with all electronic systems and is the main reason for delays in blasting. The Axxis leakage tester helps to avoid these problems.

• The Axxis logger is a small, robust unit used to log each detonator connector and allocate a delay period to that connector. The unit is touch screen sensitive and has a numeric keypad for entering detonator firing time values and connector IDs.

• The Axxis blasting box is the unit from which all detonators on a blast are programmed and fired. It can be used as a stand-alone unit with a blasting line connected directly to the detonators, or in a wireless configuration with two blasting boxes.

• AxxiSoft is BME’s advanced blast and timing design software that operates on the Microsoft Windows operating system. You can undertake complex timing designs for vibration control, improved fragmentation and heave, and better final walls.

• The designs that are done on AxxiSoft can be downloaded directly to the Axxis logger and thus automatically transferred to the detonators through the blasting box.

The Axxis system comprises:

• Axxis digital initiation system with intelligent connectors.

• Axxis passive logger to establish connector ID and firing time for each detonator.

• Axxis blasting box to programme and fire the detonators. Blasting can be done with a blasting wire or by wireless link. Long lead-in lines are thus eliminated.

• Axxis low-energy line leakage tester is used for safely and quickly finding leakage points in a network of detonators.

• AxxiSoft PC-based software for high-level blast and timing design.

extremely tight deadlines delivered a fin-ished plant within 21 months, which was better than expected for a complex of this size and complexity.

Hay also believes BME is the market lead-er in incor-p o r a t i n g r e c y c l e d oil into its explosives

products. “We have been doing this for many years, which has always had a positive impact on our cost competitive status. But this too has significant environment-friendly aspects,” Hay outlines.

The company’s emulsifier provides it with the platform to improve its emulsion technology, thereby enabling it to increase the volume of recycled oil in its product

arket leadin incor-

p o r a t i n g r e c y c l e d oil into its explosives

products. “We

lines. “We ultimately want to reach the point where we only use recycled oil.”

TechnologyOne of the largest contributing factors to BME’s overall growth success is the invest-ment it has injected over the past 10 years into its electronic detonators.

“Th ey are safe, easy to use

and reliable.” Electronic detonators ensure better fragmentation after blasting and more stable high walls.

Axxis is a fully programmable, accurate and easy-to-use digital initiation system that enables detonators to fi re accurately at one millisecond intervals. Up to 600 detonators can be fi red from one Axxis blasting box and fi ve blasting boxes can be linked together or remotely fi re a total of 3 600 detonators.

ABOVE A truck delivering used oilBELOW BME’s used oil collection truck

BELOW Absorbtion tower at Sasolberg Nitric Acid facility

AXXIS - the advance blasting electronic initiation system

In each issue, Inside Mining offers advertisers the opportunity to promote their company’s products and services to the appropriate audience by booking the prime position of the front cover which includes a two-page feature article. The magazine offers advertisers an ideal platform to ensure the maximum exposure of their brand. Please call +27(0)11 465 5452 to secure your booking.

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Hot seat


Our reputation for delivering on our promises for being on time and on budget has seen us grow astronomically over the

past few years, with an order book just un-der R1 billion,” states MD Erik Bruggink.

The successful delivery of Pan African Resources’ (PAR) first tailings recovery plant – Phoenix – towards the end of 2011 saw the company awarded its second EPC project with the client. “We are well on

track to deliver PAR’s Barberton Tailings Retreatment Plant (BTRP) towards the middle of 2013,” says projects director, Ken Dyamond.

Basil Read Matomo (BRM) established site at Barberton in April 2012, and thanks to the solid working relationship it has es-tablished with PAR, it will take this plant through to commissioning and operation as scheduled. The plant is designed to pro-cess 1.2 Mtpa of tailings material, thereby

delivering about 20 000 ozpa of gold. “To date, we have also had no fatalities or lost time injuries on-site, highlighting the im-portance we place on safety as a company,” Bruggink adds.

The EPC business model“We believe that our EPC capabilities (known to some as turnkey) are our strength and a service that more and more of the in-dustry is becoming attracted to, within the

BASIL READ MATOMO

Diversification strategy pays offBasil Read Matomo, a subsidiary of Basil Read, believes its EPC business model

is one of the driving factors behinds its growth momentum. Coupled with

a diversification strategy that has started paying off, the company’s future

prospects seem limitless, writes Laura Cornish.

Hot seat


mid-tier market space. We carry more risk through the EPC model, but because we are a risk-aware company, and know how to ad-dress and manage risks upfront, we are safe-ly able to provide our clients with complete transparency, assurance and peace of mind throughout a project’s development cycle,” Dyamond continues.

“Th anks to the fi nancial means, stability and support from Basil Read, we are also empowered to continue growing with such momentum in the EPC space. More and more clients are indicating their preference for working upfront on costing based on their desired outcomes, with contingencies accounted for.”

BRM’s reputation for tailings technol-ogy recovery plants is spreading. Outside of BTRP, it was also recently awarded the EPC contract for the construction of a new tertiary milling plant at the Two Rivers Platinum mine – a joint venture between African Rainbow Minerals (ARM) (55%) and Impala Platinum (45%). It is situated on the farm Dwarsrivier on the southern part of the Eastern Limb of the Bushveld Igneous Complex.

“Th e 100 000 tpm plant, due for comple-tion in mid-2013, will reprocess current arisings from the primary process plant. Th e material will travel through a tertiary milling circuit and fl otation circuit, after which it will be returned to the main plant for further upgrade,” explains Bruggink, who in his personal working capacity has been involved in numerous tailings recovery plants over the years.

Overall, the company remains active with numerous studies in the PGM, gold and copper sectors, and is looking forward to announcing the commencement of a ma-jor zirconium benefi ciation plant in the nearby future.

Energy diversificationBRM’s energy division (BRM Energy) pro-vides electrical power and alternative en-ergy solutions to clients in various mar-kets and business sectors across Africa and worldwide. Its off ering to the market is structured around four main focus areas: energy effi ciency, renewable energy, cogen-eration and self-generation.

Th e company is equipped and skilled to de-liver any alternate energy project, including biomass/biogas, wind energy, solar thermal

“We believe that our EPC capabilities are our strength and a contract model that more and more of the industry is becoming attracted to, within the mid-tier market space.” Basil Read Matomo MD, Erik Bruggink

BELOW Basil Read Matomo is on schedule to complete the construction of the BTRP

project on time

Hot seat


and photovoltaic power plants. “Due to the deteriorating economic climate, BRM made a strategic decision to diversify and enter into one of the country’s emerging new sectors: renewable and alternative energy,” Dyamond points out.

“BRM Energy has a full complement of engineering disciplines to successfully complete a power generation project from concept to commissioning, including the capability and staffi ng to provide opera-tional services. Th e company also acts inde-pendently from suppliers and can therefore evaluate the various technologies without the risk of being biased towards any of the technology types,” explains BRM’s Energy director, Marius von Wielligh.

Th e decision could not have been better timed considering that the company was awarded the R475 million EPC contract for the construction of the 27 MW Metrowind van Stadens wind farm project in the East-ern Cape. Considering construction com-menced in November 2012, BRM is more than adequately prepared having received the shipment for all nine foundation rings from Shanghai. “One of our biggest mile-stones was to secure the turbine supply agreement with our international suppliers, Sinovel, one of the largest manufacturers of

wind turbines in the world,” Von Wielligh adds. Th e site is scheduled to become oper-ational in February 2014.

Th e Metrowind project is one of 28 De-partment of Energy (DOE) and Eskom re-newable energy independent power produc-er (REIPP) projects awarded in the fi rst of three rounds. Th e combination of all three rounds will see an additional 3 725 MW of clean power produced.

“We are looking at another two projects in Round 2 and a possible nine or ten from Round 3,” Bruggink mentions. Th is ex-cludes the vast opportunities in Africa, in which BRM Energy is equipped to off er ser-vices to. Th is also falls in line with BRM’s overall strategy of growing further into Af-rica, with an additional focus on the miner-als sector in the Democratic Republic of the Congo, Tanzania, Mozambique and Malawi.

In support of BRM’s current specialist consulting services to the global mining, industrial and utility sectors, the company has established strong relationships with world-class technology providers to cre-ate an arsenal of technologies that enables BRM Energy to innovate tailor-made and sustainable energy solutions for its cli-ents. Von Wielligh adds that the company has also negotiated important alliances to provide necessary skills and experience in areas where competitors lack a track record.

BRM Energy has already developed rela-tionships with all key energy stakeholders, including Eskom, the National Energy Reg-ulator of South Africa (NERSA), the DOE and the Department of Environmental Af-fairs. “We make it our business to maintain a thorough understanding of the latest regulatory requirements associated with this indust ry,” Von Wielligh emphasises.

LEFT This photo shows a similar SL3000 Sinovel turbine which was inspected

by Basil Read Matomo in Sweden. Nine of these will be installed at the Van

Stadens site

BELOW Basil Read Matomo was recently awarded the EPC contract for the

construction of a new Tertiary Milling Plant at the Two Rivers platinum mine

LEFT 3D graphic illustration of the completed Tertiary Milling Plant

Hot topic


Companies are deferring their expansion projects in the face of waning Chinese demand, yet world demand promises to in-

crease dramatically in the coming years. With cost pressure mounting and talent shortages ongoing, companies must assess

the viability of a more complex series of options. Investments will be necessary to enable companies to weather more severe volatility.

Followers of action adventure are familiar with the scene where the hero jumps into a taxi and shouts, “Follow that car!” On some

level, the mining industry has been re-enact-ing that very scene in its pursuit of produc-tion, richer deposits and higher yields. Th e push to produce safely at all costs has be-come a reality, against a backdrop of spiral-ling costs for raw materials, labour, capital projects and compliance.

At the same time, macro-economic issues continue to take their toll. While the US has been recovering slowly, Europe’s sov-ereign debt crisis persists. Despite ongoing

commodity price volatility, governments around the world are taking larger shares of mining profi ts. Local communities, too, are demanding greater concessions.

While long-term demand from industri-alising nations is anticipated to rise over time, short-term dynamics are interfering with current operations. Amid rumours of growing stockpiles, China’s buying activity has been waning. Additionally, share prices have decoupled from underlying commod-ity values for many miners, restricting ac-cess to capital on favourable terms. Th is is particularly challenging in an environment of declining grades – a trend that’s push-ing companies to more remote, and more costly, regions.

All these factors speak to the need for more sophisticated portfolio allocation deci-sions. Mining companies can no longer com-mit to production solely on the basis of their

TRACKING THE TRENDS IN 2013

The top 10 issues mining companies may face

As commodity prices decline and global economic uncertainty

persists, it’s harder for mining companies to predict future demand

patterns. By Philip Hopwood, Global Mining Leader, Australia.

Rather than revising corporate strategy, it is time for executives and boards to hang tough in the face of shifting industry dynamics

Hot topic


initial business cases. Before companies decide where to locate and which projects to pursue, they should take a wider range of factors into account – including shifting legislative and political realities, communi-ty expectations, infrastructure needs, risks associated with corruption and fraud, talent requirements, and the availability of key resources like energy and water. Th is man-dates a level of analytical capability that many companies currently lack.

In this fi fth year of publication, the Deloitte 2013 edition of Tracking the trendshighlights key industry indicators. Deloitte’s global mining professionals share a range of responses companies can adopt to prepare for shifting industry realities. We’ve also bolstered our input with some quantitative analysis to help frame key issues and impart greater context. We think this provides an excellent foundation to spark debate.

The top 10 issues mining companies may face in the coming year1. counting the costs – paying the price of

bullish behaviour2. managing demand uncertainty – con-

flicting market indicators magnify volatility

3. capital project deceleration – quality trumps quantity in the project pipeline

4. preparing for the M&A storm – market indicators point to rising deal volumes

5. governments eye the mining prize – re-source nationalism remains

6. combatting corruption – miners are be-ing held to tighter standards

7. climbing the social ladder – a new level of responsible behaviour

8. plugging the talent gap – skills shortages still loom

9. playing it safe – using analytics to generate insights and improve safety outcomes

10. at the IT edge – getting the most out of emerging and existing technologies.

Tactics may change, but strategy should notTh e mining industry continues to strug-gle with ongoing volatility and mar-ket uncertainty. Higher costs combined with softening demand threaten capital project delivery.

Typically “lower cost” jurisdictions are no longer lower cost, but are exacting a price in the form of rising taxes, mounting govern-ment interference, escalating community expectations and the risk of corruption.

To counter these pressures, some compa-nies are giving ground, postponing or even cancelling projects, halting construction in certain regions, seeking out pre-emptive

mergers to se-cure fi nancing and searching for more eff ec-tive ways to deliver short-term investor returns.

Despite these pressures, companies that succeed over the long haul understand the imperative to maintain corporate re-solve. Mining companies are known for taking a long-term view of the market. Rather than revising corporate strate-gy, however, it is time for executives and boards to hang tough in the face of shifting industry dynamics.

Th is longer-term view reveals the need for more concrete industry collaboration. Th e endemic issues facing the mining sector –

from infrastructure gaps and talent short-ages to competing demands for energy and water – cannot be resolved by companies working in silos. By sharing water manage-ment, electricity generation and infrastruc-ture development, companies gain the abil-ity to share costs and risk, while benefi ting local communities in the process.

The key is to determine where to

c-ver vestor

The

largest wind

turbine in the world,

located in Hawaii,

stands 20 stories tall and

has rotors the length

of a football fi eld.

Eneerrggy ffactss

D i d y o u k

n ow

?

The push to produce safely at all costs has become a reality, against a backdrop of spiralling costs for raw materials, labour, capital projects and compliance

Hot topic

focus during vola-tile times. For some

companies, the answer may lie in improved in-

dustry collaboration, a strong-er focus on corporate social responsibility, sustainable operations and earning an operating licence, and more coordinated negotiation with governments and regu-lators. For others, it may involve a com-mitted programme of cost containment

improved technology management or more intensive analysis when forecasting demand, identifying optimal projects or attracting skilled labour. Regardless of the route, the companies that thrive into the future will be those that set a solid stra-tegic direction and hold the course amid shifting industry realities.

While volatility is short-term, long-term industry fundamentals remain positive. As global demand for resources grows

over time, mining companies that lay the groundwork today will be well positioned to seize tomorrow’s opportunities. This will do more than spur stronger industry profits. It will also position leading compa-nies to play an increasingly instrumental role in the advancement of local commu-

nities, the support of undeveloped econ-omies and the growth of jobs and skilled talent around the world.

To download the full report, visit www.deloitte.com/za/miningindaba

By sharing water management, electricity generation and infrastructure development, companies gain the ability to share costs and risk, while benefiting local communities in the process

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Prestigious projects


Kolomela, which employs 1 050 people, first started producing in 2011 and delivered 1.5 Mt of iron ore for the year. Its ramp up

in 2012 was remarkable and will see the mine exceed its original 4 to 5 Mt target. “Kolomela produced over 7 Mt by the end of 2012,” says Aart van den Brink, Kolo-mela’s general manager. The mine has a 28-year lifespan based on its current de-fined resource and annual production rate of 9 Mtpa, which it will achieve in 2013.

The average grade of unbeneficiated ore is 64.6% iron.

The mine comprises three open pits. Both Leeuwfontein (the main pit) and Kapstevel are active. The third pit, Klipbankfontein, will become operational at a later stage.

On-site milestonesConsidering the mine is one of South Afri-ca’s largest new greenfi eld projects in recent years, it has reached remarkable milestones with regards to its fast ramp-up, construction

build-up and production achieved, as well as its safety accomplishments. “Th e magic about Kolomela is the teamwork between all stakeholders and their commitment to ex-ceeding expectations. Th is line can be drawn through from the approximately 15 000 people who worked on the project to bring the mine on stream within budget and fi ve months ahead of time, to the mine team who ramped up production ahead of schedule to the extent that more than 7 Mt of fi nal prod-uct was produced in 2012 – and delivering a

KOLOMELA

Kumba’s major mega project

Kolomela, Kumba Iron Ore’s major R8.5 billion new iron ore mine in the Northern

Cape, achieved numerous benchmarks throughout its construction period. And

this is set to continue as it ramps up to nameplate capacity, writes Laura Cornish.



world-class safety performance at the same time,” Van den Brink outlines.

Kolomela mine had achieved 9.7 million LTI-free man hours at the end of October 2012 and has not accounted for single fa-tality since mining operations started in September 2009. In parallel, the mine de-velopment programme ‘notched’ up some 18 million LTI-free man hours during the

construction period, setting a new bench-mark for mega projects of this nature in the country.

“The reason for this is the absolute com-mitment to zero harm from the entire team; the instilling of a single, overarch-ing safety culture that everybody ascribed to; the setting of clear, non-negotiable standards for safety; the embedding of the principles of learning from mistakes; and communication, communication, commu-nication. One of the innovations we’ve in-troduced is using collision-avoidance tech-nology originally developed for airplanes on all our mining equipment to avoid col-lisions between light and heavy vehicles operating in close proximity in the pit.”

Another Kolomela innovation is a fatigue management system aimed at detecting and predicting mineworkers’ fatigue levels,

Nuclear energy currently

provides approximately 16% of

the world’s electricity needs. Eskom’s

Koeberg nuclear power station supplies

about 5% of South Africa’s total electricity

needs and powers most of the Western Cape.

Vaalputs, which is managed by Necsa (National

Energy Corporation of South Africa), is currently the

only disposal site for nuclear waste in South Africa and

is situated in Namaqualand where annual evaporation

exceeds annual rainfall, ensuring that even if

radioactivity should escape, it could not contaminate

ground water that may fi nd its way to the surface.

The waste is stored in trenches 10 m deep and

radiation at the surface is almost at natural

levels and does not constitute a

health hazard.

Eneergy faactss

ABOVE Kolomela’s new reclaimerRIGHT The crushing and screening plant

D i d y o u k no w?


When the stakes are high …In the fi eld of mining the stakes are way too high to settle for anything but the bestwhen it comes to choosing consultants to deliver on mining infrastructure projects.

Mine operators need partners they can rely on, whether it’s for roads, rail, aerodromes, housing, water, environmental – or anything in between.

J&G understands this.Our quality statement says it and our track record confi rms it.

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thus reducing the potential for fatigue-re-lated accidents.

An expansion already on the cardsAlthough it will only ramp up to full pro-duction in 2013, an expansion project is already under review and currently in

pre-feasibility phase. It proposes the de-velopment of a beneficiation facility that will increase production from 9 to 15 Mtpa by 2017. Kumba Iron Ore currently has rail line allocation for the full 9 Mtpa from Kolomela on the Sishen-Saldanha iron ore export channel.

“For any additional tonnage, we will re-quire further rail line capacity. Discussions with Transnet to expand the rail line beyond the current 60 Mtpa began a few years ago. Th e pre-feasibility phase for the rail expan-sion was completed during the fi rst half of 2012, confi rming the potential viability of the expansion. Th e feasibility study, accord-ing to Transnet, will be completed in 2013 and the expansion on the line is due for de-livery by the end of 2017, which will like-ly coincide with the delivery of the mine’s expansion project,” Van den Brink explains.

Off-site achievements“Th e R33 million we invested in regional de-velopment and upliftment in 2011 alone is proof that the physical asset that lies in Kolo-mela mine reaches wider than the confi nes of the mine itself. We have proven to our local communities that even before we develop a mine, we start developing a community and this integrity will continue throughout the life of the Kolomela mine,” former Kumba Iron Ore CEO, Chris Griffi th, said earlier this year.

In addition to new job opportunities, the Kolomela mine is building 718 new houses

A close-up view of the reclaimer in operation



long before mining did. We have, for exam-ple, established an open dialogue with land owners through the environmental forum set up in 2008 and fi rst started talking to the community in 2007. We recognise our mutu-al dependence, trust one another and have established a sound working relationship in which all parties know their respective roles and responsibilities. Th e mine has estab-lished itself as an integral part of the host community, not by giving hand outs, but by working with the community to jointly iden-tify priorities and attending to these in part-nership,” Van den Brink reveals.

Employment is a major issue in the North-ern Cape with more than 40% of the local community without jobs. Kolomela com-mitted to employ at least 75% of its work-

force from within the province – and has actually achieved about 85%. Infrastructure is another local priority. Th e mine has also spent more than R33 million on infrastruc-ture development and has further commit-ted another R50 million for improvements to bulk infrastructure such as water and electricity systems.

Sustainable development – breaking new groundFrom the start of the project, sustainable development issues such as water, energy and biodiversity have been prioritised says Van den Brink. Thanks to Kolomela’s dry-plant technology, the crushing and screen-ing plant uses less water. Low energy fea-

tures such as heat pumps, solar geysers and efficient motors have been integrated into the design of the mine. “And because of our sensitive location, we have put in place one of the most extensive programmes known in South Africa to monitor the mine’s im-pact on biodiversity in the area,” Van den Brink concludes.

for its employees at a cost of just over R1 bil-lion. Over 500 have been completed to date, with the rest to follow in May 2013.

“Another aspect that the Kumba and Kolo-mela team is particularly proud of is our en-gagement with our host community and the neighbouring farmers, which commenced

The mine has reached remarkable milestones with regards to its fast ramp-up, construction build-up and production achieved, as well as its safety accomplishments

Both of the equipment operators for the Kamatso 730 dump truck in the

Leeufontein open pit. A trainee operator is being shown the sequence of the list of inspections to do before shift commences

and doing routine inspection of vehicle. Gloria (right) has been with the mine since its inception in 2009. Both operators are

doing pre-shift inspection of the side walls of the tyres

Kumba Iron Ore’s Kolomela mine

Group Five Housing Woodmead North Office Park, 54 Maxwell Drive, WoodmeadTel: +27 11 253 8700 | Fax: +27 11 656 1210E-mail: [email protected]

A Group Five celebration

Group Five Construction, represented by Group Five Housing (Pty) Ltd, was responsible for the construction of 29 buildings on the Kolomela mine site. This included:• the erection of eight steel structures, including workshops and stores• the construction of various brick buildings to house the administration, security, training and

medical functions• the entrance to the new mine with its guardhouse• a restaurant and change house, built in the main admin area • and substations and ablution facilities strategically positioned around the plant area.

Group Five delivered its entire contract without a single lost time injury to any of its employees or appointed subcontractors, contributing almost a million LTI-free hours to Kumba’s exceptional safety record – which has since become an Anglo American worldwide record for LTI-free hours on a project.

This project illustrated Group Five’s ability to deliver projects in an exceptionally tough environment and to stringent standards without compromising on its philosophy of Zero Harm, thereby aligning itself with the ethos of a blue chip mining client - Anglo American’s Kumba Iron Ore.



TIP-TOP THARISA

Processing an abundant chrome and PGM resourceNot all junior mining companies start on the right foot, but Tharisa Minerals

is proving otherwise. Thanks to the successful relationship established with

EPC contractor MDM Engineering, the company is successfully ramping up its

expanded chrome and PGM process plant, writes Laura Cornish.

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The Th arisa mine and plant is a fl ag-ship operation in South African mining terms. Its growth plan is phenomenal and its expanded pro-

cess plant one of a kind,” explains MDM En-gineering executive director George Bennett.

Th arisa Minerals is currently ramping up its expansion project, which will increase its run-of-mine (ROM) production from 1.2 Mtpa (achieved during the 2011 fourth

quarter) to 3.6 Mtpa. It is expected to achieve its nameplate capacity in the fi rst quarter of 2013.

What makes this project quite rare is its ore body and the design of its process plant to optimally process the resource, which in addition to its high-grade PGM content con-tains 800 Mt of chrome, making it the larg-est single chrome mineral resource deposit in the world.

Th e expansion specifi cally entails the devel-opment of an opencast mine, capable of pro-ducing at a rate of 400 000 tpm of ROM ore, as well as processing capacity to treat approx-imately 400 000 tpm of feed to the chrome processing facilities and 300 000 tpm to the PGM facilities. Ancillary infrastructure such as power, water, road and rail sidings have also been provided – with the support of Eskom, Transnet and other government

institutions. Th e expanded project will produce 1.92 Mtpa of metallurgical grade chrome concentrate and 156 000 ozpa of PGM concentrate.

“Th e development of such a large-scale chrome and PGM process-ing plant, combined, is unique to South Africa and something we at MDM Engineering are extremely proud of,” Bennett continues.

Th e company commenced with the engineering design phase in May 2012 and was established on-site in June. Twelve months lat-er the crushers and conveyors were complete and 13 months later, the plant was mechanically complete and ready to receive ore. “We have never built a plant of this size and nature in such a short time-frame, with over 1 000 people on-site during the peak construction period. We delivered it on time and on budget,” Bennett outlines.

Mining is set to transition to underground mining once the open pit reserves are depleted.

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Eskom’s

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aims to inspire and

rally all South Africans

behind a common goal:

save electricity and create a

better economic, social

and environmental

future for all.

EEnnneerggy faccts

BELOW The Tharisa PGM and chrome metallurgical plant

D i d y o u k

n ow

?



THE WORLD’S OLDEST DIAMOND MINE

Cullinan reveals its true coloursHistorically, the world’s most celebrated diamond mine, Cullinan, looks set

to retain its status. Not because it is the world’s oldest diamond producing

kimberlite (operational since 1903), but because its owners Petra Diamonds are

investing billions of rand to expand it, writes Laura Cornish.

Eskom’s

100 MW Sere wind

farm in Vredendal in the

Western Cape takes its name

from the Namaword meaning ‘cool

breeze’. It is funded by the World Bank,

the African Development Bank, French

development agency L’AgenceFrançaise

de Développement and the Clean

Technology Fund. Construction is

under way, with the facility expected

to go into commercial

operation in October

2013.

Energy facts

EEEnneerrgy faacts

D i d y o u k n o w?



I t is common knowledge that LSE-list-ed diamond major Petra Diamonds is under way with numerous expansion projects across its operations. In addi-

tion to Cullinan, it is expanding its Finsch operation from 1.4 to 2 Mctpa by 2017, Koffiefontein from 40 000 to 100 000 cpta by 2016 and Williamson in Tanzania from 2.5 (run-of-mine (ROM)) to 3.6 Mt by 2016.

The R3.1 billion Cullinan C-Cut expan-sion programme, which officially com-menced in July 2011, is the largest expan-sion and development project in the Petra portfolio. It not only aims to increase the mine’s annual carat output, but extend its operational life beyond 2030 as well.

“The C-Cut Phase 1 project entails the development, construction and commis-sioning of a new block cave on the west-ern side of the ore body with a height of 200 m. The mine operates using the block cave mining method.

Once this block is in full production, it will increase Cullinan’s ROM tonnage from about 2.4 to 4 Mtpa, thereby increasing an-nual carat production from just under 1 to 2 Mctpa by 2019,” explains Petra Diamonds project manager, Andre Cloete. Overall production will be further supplemented with another 0.4 Mctpa through the recov-ery of carats from tailings material.

Expanding the mineFor the 2013 financial year, the C-Cut pro-ject will entail the development of over 4 000 m, generating around 270 000 t of waste. The total development for the pro-ject is around 31 000 m.

“One of the most important elements of the expansion project is the shaft sinking

and equipping (extension) contract, which was awarded to shaft sinking specialist Murray & Roberts Cementation in August 2012. The value of this contract alone is al-most R1 billion,” Cloete notes.

The Men & Material Shaft will be extend-ed from 805 Level (or 805 m below sur-face) to 880 Level and the Rock Shaft (for hoisting) from the 580 Level to 930 Lev-el. The overall resource has been defined

Who’s who and what’s what?

The project team:Consists of five groupings, totalling a maximum of 444 employees at peak of project execution, including:- mine crew – declines north and south- Jonrik Mining – horizontal development- Murray and Roberts Cementation – shaft deepening- raise bore and diamond drilling- engineering construction contractors – conveyors.

Contract developmentJonrik Mining was awarded the contract for all mining development and is currently developing at the south under-cut and extraction rim tunnels

Underground updateTo date, 2 305 m has been developed. 570 m of conveyor transport systems are already installed and operational.

Once this block is in full production, it will increase Cullinan’s ROM tonnage from about 2.4 to 4 Mtpa, thereby increasing annual carat production from just under 1 to 2 Mctpa by 2019.” Petra Diamonds project manager, Andre Cloete

LEFT Tailings conveyors on top of the Cullinan tailings dump

RIGHT Long hole drilling rig in action underground at Cullinan



X-Ray, grease and laser technology. This is a long-term project and will deliver about 0.4 Mctpa into the foreseeable future.

The process plantCullinan’s processing plant is almost as historical as the mine itself, and covers a

27 ha footprint with 13.5 km of convey-ors. “It is an ongoing objective to simpli-fy and streamline the processing route. Since our acquisition of the mine, we have made numerous changes to the plant,” Cloete explains.

While Jacobs acknowledges that the cur-rent plant is designed to handle the produc-tion increase, the possibility of construct-ing a new plant (incorporating efficient and modern technology) is “not off the

to 1 073 m below surface, and remains open ended.

The underground development work is also substantial. In addition to the shaft extension project, it also includes a new south and north decline together with con-veyors and new return airways, new south and north crushers and trackless equip-ment. Petra has advanced the south decline to access the new production levels, and work on the north decline has commenced.

Cloete mentions that Cullinan’s life be-yond the C-Cut Phase 1 expansion holds

promise as there is potential to access more ore leveraging off the new infrastructure.

Tonnes of tailingsPetra Diamonds is also currently com-missioning its new 2 Mtpa (head feed) tailings recovery process plant, which is due to ramp up to nameplate capacity in January 2013. “We have about 165 Mt of tailings material on-site, which will be re-treated,” says Cullinan surface manager, Louis Jacobs.

The plant comprises a 400 tph dense medium separation (DMS) circuit with a dedicated recovery process as well as

Crews busy installing the steel work for a stiff brow underground at Cullinan

For the 2013 financial year, the C-Cut project will entail the development of over 4 000 m, generating around 270 000 t of waste

LEFT Andre Cloete


Did you know?

• Cullinan continues to produce some of the world’s most ‘special’ diamonds

• It has the world’s second largest indicated resource, by in-situ value

• The expansion plan will see the mine’s average grade increase from about 36 to about 50 cpht

• The current 16-year mine plan will only exploit 21% of the mine’s total resource

table” in the future. “Ultimately, we need a plant that is large, diamond friendly, with significantly cheaper operating costs and is capable of treating the increased under-ground production.”

For this, adaptations to the plant would include the incorporation of mills, rolls crushers, a recovery plant and sort house, a large optical plant and a fines DMS.

Over the last four years, Petra has in-vested in numerous ‘smaller scale’ projects aimed at improving plant and energy effi-ciency. These include:• increase automation of plant significantly

• increasing the crusher gaps from 22 to 32 mm (in the crushing circuit)

• installing X-Ray technology to comple-ment the grease technology

• the implementation of a new large dia-mond recovery plant

• upgrading the washing plant which will assist with the increased capacity

• installation of jet pumps to replace the scrubbers

• centralised various control rooms into one• installed various interlocks to ensure im-

proved process efficiency• overall plant clean-up – the result, suc-

cessful increase of throughput from 6 500 to 10 500 tpd.

HEAD OFFICE: BLOCK C - Menlyn Corporate ParkC/O Garsfontein Road & Corobay Ave.MENLYN - PRETORIATel: +27 (0) 12 940 1111 FAX: +27 (0) 86 743 3100E-mail: [email protected] www.bvigroup.co.za

MDP

O f f i c e s : P r e t o r i a , P o l o k w a n e , C a p e T o w n , B l o e m f o n t e i n , U p i n g t o n , S p r i n g b o k , E m p a n g e n i , D u r b a n , P o r t E l i z a b e t h , V r e d e n b u r g , E a s t L o n d o n , J e f f e y ’ s B a y , U m t a t a ,

W e l k o m , M o z a m b i q u e , D R C , N a m i b i a , A n g o l a

Mining Infrastructure - Engineering, Procurement, Management

Mining InfrastructureEngineering ProcurementConstruction ManagementCivil EngineeringStructural EngineeringElectrical EngineeringMechanical EngineeringTown PlanningProject Management

BOTTOM The new South decline conveyorTOP One of the new underground crushers



Boldly breaking new groundBEEFY BAKUBUNG



The construction and development of junior PGM

company Wesizwe’s R7.9 billion Bakubung PGM mine

continues to bear testimony to the excellent skills set

that South African engineering companies deliver to

the mining industry, Wesizwe CEO Jianke Gao tells

Laura Cornish.

B akubung’s six-year progression from study phase to execution may be slow by comparison with other junior start-up operations

across the industry, but since securing the finance to take the project through to pro-duction, it is ‘all systems go’ for the mine. “As a mining engineer, I believe Bakubu-ng’s resource, by comparison with its neighbours, is excellent quality. It will also be easy to mine,” Gao explains.

Full steam ahead at Bakubung“Both major project engineering com-panies, EPCM contractor TWP Projects and shaft sinking contractor Aveng Gri-naker-LTA are on schedule and meeting their development targets,” says Gao. TWP Projects’ contract includes all surface pro-ject work, terraces, temporary offices, electrical facilities, winder houses, shafts,

A perfect partnership

While the entire project capital funding Bakubung’s development is Chinese-sourced and the core management team is from China, Wesizwe remains a South African company at heart. The CEO, financial director and projects general manager, along with two additional members are from China, while the rest of the company, including the 3 500 employees who will run the mine, will all be locally sourced. A local employment programme is already well under way.

headgears, ventilation fans, refrigeration plant and compressors, as well as all an-cillary work including workshops, storage facilities and access roads.

“TWP is one of the best EPCM contrac-tors in the country and will deliver the pro-ject successfully. What we like about Aveng Grinaker is its commitment to hard work and its passion and drive for growth.

Bakubung (formerly known as the Frischgewaagd-Ledig mine) has been de-signed to process 230 000 tpm run-of-mine (ROM), delivering 350 000 ozpa of PGMs at

LEFT & BELOW The construction of the main and ventilation shafts has

commenced. The headgears are due to be erected within the fi rst half of this year



full production for 35 years. Both Main and Ventilation shafts are due to be commis-sioned in the second quarter of 2018; this will be followed by an estimated four-and-a-half year of production ramp up reaching full production in 2023.

“Since the commencement of our twin shaft sinking contract, we have started look-ing at technologies and methodologies to speed up the project’s underground devel-opment and bring it on stream earlier than currently planned. We have established a partnership with a Chinese company that off ers such technologies and are investigat-ing how to implement them at Bakubung,” Gao continues.

Although unwilling to provide any fur-ther detail on the technology, Gao says it

is common in China’s mining industry and is being implemented in Zambia in similar shaft sinking projects .

While Wesizwe will follow traditional deep level mining practices and employ about 3 500 local people, the company intends to maximise on the skills, knowledge and technologies it can co-share with Chinese mining company Jinchuan. “Th e company is a leader in the mining industry with over 50 years of experience and many attractive Chinese technologies – especially from an operational point of view.”

Th e Bakubung complex will comprise an independent twin vertical shaft system: a Main Shaft and a Ventilation Shaft. “Th e Main Shaft will be 8.5 m in diameter and extend 1 000 m below surface, and the

Ventilation Shaft, 7.5 m in diameter, will reach 980 m below surface,” TWP project manager Robert Hull explains.

In November 2012, the Main Shaft had been sunk to 30 m and the Ventilation Shaft to 80 m. Th ere is a lot of visible in-frastructure on-site – the Main and Ventila-tion shafts winder houses are already visible from a distance and there is a lot of activity around the two shafts themselves, mainly the installation of all structural infrastruc-ture and the normal pre-sink operations.

Th e project cost since its launch in July 2011 stands at R550 million. A cash fl ow budget for 2013 has been submitted to the

Wesizwe’s empowerment partners:

Micawber 809: 5.98%African Continental Resources Venture: 4.52%Africa Wide Investment Holding: 2.82%Vunani Capital: 1.83%Green Tree Investments: 0.82%Inkwali Asset Management: 0.36% 16.33%

ABOVE AND LEFT TWP Projects’ contract includes all surface project work,

terraces, temporary offi ces, electrical facilities, winder houses, shafts, headgears,

ventilation fans, refrigeration plant and compressors, as well as all ancillary work

including workshops, storage facilities and access roads

Our engineering skills are world-class and we have the

people, systems and structures to make your project

world-class too.

Call us, or visit www.twp.co.za

TWP South Africa

T 0861 TWP TWP (SA) / +27 11 218 3000

E [email protected]

Agile, Powerful, Prepared And Determined.

board for approval. Th anks to the conclusion of the fi -nancing transaction with a consortium made up of Jinchuan and the China Africa Development Fund (CADFund) in May 2011, the project is fully fi nanced and de-risked until the mine reaches full production.

Th e Merensky reef (180 000 tpm, stope width of 1.35 m) will be mined using conventional stoping methods and the UG2 reef (50 000 tpm, stope width of 1.5 m) will use semi-mechanised Hy-brid methods. Underground crushing is planned to take place at the main shaft ore passes, from where the reefs will be separately conveyed to stockpiles on surface before the concentrator plant.

A separate contract will be awarded to open up the mining blocks underground or underground fl at development, which will take place between 2018 and 2023. Based on the monthly output, the design requires six mining blocks at any given time. Th e better quality Merensky Reef will deplete within the fi rst 10 to 15 years of mining, after which the mine will become a full UG2 operation.

Steel erection and fabrication specialist Louwill Engineering, in joint venture with two other local companies, was recently appointed to design and erect both headgears on-site. Th e head-gears for both shafts will be erected by June 2013.

“Since the commencement of our twin shaft sinking contract, we have started looking at technologies and methodologies to speed up the project’s underground development and bring it on stream earlier than currently planned.” Jianke Gao, Wesizwe CEO

Construction of all surface infrastructure is well under way

nks -

, and reaches

A

geothermal

power plant emits

no nitrogen oxides,

very few sulphur dioxides

and 1 000 to 2 000 times

less carbon dioxide

than a fossil fuel

plant.

EEnneerggy faccts

D i d y o u k

n ow

?


“Because our power allocation with Es-kom was secured years ago, our energy re-quirements on-site will not be a problem. Eskom’s power provision to the mine has been allocated according to two phases. The substations for the first 8 MW of pow-er secured for Phase 1 are already installed on-site and the Phase 1 supply will be com-missioned by end of November,” says Ham-let Morule, Wesizwe’s corporate affairs ex-ecutive. Phase 2 will include an additional

58 MW of power, which will be commissioned in 2014 on a load build-up slope.

Wesizwe has secured a temporary water supply of 200 000 ℓ/d, which is suf-ficient to the end of shaft sinking. However, the com-pany requires a supply of 6 Mℓ/d fresh feed at full production. A process to secure water supply is un-der way with the Magalies

Water and other interested parties, includ-ing neighbouring mining companies, local and provincial municipal structures, and community representatives.

To date, there have been no major chal-lenges on the project, Morule notes, and no major work stoppages, despite the recent labour unrest in the PGM sector. When the company released its latest annual report, it also announced reaching 500 injury-free days on-site; this milestone was achieved in February 2012. The project has also not accounted for any fatalities since start of construction.

Potential synergies (the concentrator plant)A mine owner’s forum comprising the three neighbouring mines (Wesizwe, Masseve and Styldrift) was launched four months ago to identify and implement projects that will yield synergies for the operations. Gao notes that there are potential synergies with Roy-al Bafokeng Platinum’s Styldrift operation and neighbouring Masseve regarding shar-ing of services and land for infrastructure, training and skilling programmes, security services, housing land, etc.

The future of Wesizwe“We ultimately know that a single project is not enough for a mining company in Africa. We are looking for other potential projects and are simultaneously under way with a PGM industry analysis, which we will report to the board. Acquiring cash-generating PGM assets is our first priority, but we are also looking at all other strategic mineral projects. While the mar-ket is currently depressed, I believe it will have fully recovered in four or five years’ time, meaning now is the time to move in and acquire PGM assets,” says Gao.

The substations for the fi rst 8 MW of power secured for Phase 1

LOUWILL BAKGONI JOINT VENTURESteel fabrication and erection

PROUD TO BE ASSOCIATED WITH THE WESIZWE PLATINUM PROJECT

Tel: 011 363 0794Fax: 011 818 5185PO Box 10834Strubenvale 1570

Factory:80 Butler Road

Nuffi eld, SpringsVat No. 4410259800

Pre-assembly activities on site



The beginning of something greaterAEMFC may be government-owned, a jun-ior and fi rst time miner, but it is already meeting and sometimes exceeding its monthly operational targets. Th is is a rarity in the junior sector, and a feat AEMFC and its mining contractor, Murray & Roberts Construction company, Concor Opencast Mining, can be proud of.

Th e Ogies-based, greenfi elds 1.6 Mtpa thermal coal property currently compris-es a shallow opencast pit and a crushing and screening plant, and has supply agree-ments in place with Eskom’s nearby Kendal power station, as well as smaller coal mer-chants including Masemanzi Mining and Just Coal. Th e 583 ha area is surrounded

by Anglo Th ermal Coal’s massive New Largo property.

“Concor Opencast Mining was awarded the fi rst portion of the Phase 1 mining contract in November 2010. We moved onto site in March 2011, mined 2 million cubic metres to develop the boxcut, and commenced with strip mining directly afterwards. Th is is our most recent truck and shovel coal mining contract. Our performance at Vlakfontein is providing us with the platform to re-af-fi rm our coal capabilities to the rest of the sector,” says Concor Opencast Mining alter-nate director Gert Buitendach.

“Our production schedule is one of the keys to our start-up and on-going success, and will position AEMFC comfortably in

the coal mining arena. It is the combined force and successful working relationship between ourselves and Concor Opencast Mining which has ensured our immediate 130 000 tpm production targets are con-stantly achieved. We are happy with their performance and are assured we remain on track to deliver 1.6 Mtpa for our next fi nancial year,” explains Msindo Mathebula, Vlakfontein acting mine manager.

“While most of the major traditional opencast mining contractors tendered on

VLAKFONTEIN FLIES

Making the contract mining grade

Government-owned mining company African Exploration Mining & Finance

Corporation’s (AEMFC’s) Vlakfontein mine is delivering a sterling performance

since it started operating in 2011. It is on track to meet its production

schedules and already has significant growth plans in the pipeline, writes

Laura Cornish.

ABOVE A night view of the Vlakfontein crushing and screening plant

RIGHT An aerial view of the Vlakfontein opencast pit with the Kendal power station

in the background



Concor Opencast Mining’s achievements to date

Topsoil: 150 000 bank cubic metres Overburden soft: 662 000 bank cubic metresBlasted overburden: 1.236 million cubic metresInter burden: 990 000 bank cubic metres Coal: 1.9 Mt

ABOVE Divann Pauley (Concor Opencast Mining blasting director), Gert Buitendach

(Concor Opencast Mining alternate director) and Jan Rossouw (Concor

Opencast Mining site manager)


this project, we ultimately settled on Con-cor, which we believe has many similarities to ourselves. Like us, it is new in the coal sector, and our vision is to grow together. It also has the plant capacity to start immedi-ately,” Mathebula continues.

And while Concor Opencast Mining is al-ready well into its 36 month contract, the possibilities for extending this, and growing it, remain open ended. “We are currently in discussions with AEMFC to extend our con-tract, which will see the Vlakfontein open pit extend substantially beyond its current borders,” Buitendach adds.

To date, Concor Opencast Mining has mined 3.1 million cubic metres of waste using 16 ADT trucks on-site including fi ve excavators, three dozers, two water cars, a grader and support vehicles. Th e pit extends no deeper than 39 m and comprises the 4

seam (about 8 m wide) and 2 seam (about 6.5 m wide), as well as a sporadic small 5 seam.

Th e company is also operating in a tech-nically challenging environment, which re-quires cutting through dykes and constantly managing operational activities in relation to an oil pipeline that runs next to the open pit. Th e main N12 highway to eMalahleni is also only a few metres away. Th e strict blast

Concor Opencast Mining’s overall targets

Totals:Topsoil: 370 000 bank cubic metresOverburden soft: 750 000 bank cubic metresBlasted overburden: 2.51 million cubic metresInter burden: 2.785 bank cubic metresCoal: 2.950 Mt

ABOVE Concor Opencast Mining’s Volvo truck tips the Vlakfontein mining material

into the crusherABOVE RIGHT The crusher after the

material has been tipped in


Dedicated to all mining aspects

Concor Opencast Mining believes that the key to operational success is delivery on all levels. The company employs locally, and provides extensive training, including operator training, first aid and basic fire fighting training. It also performs routine competency assessments every six months.

The company also adheres to strict environmental policies and guidelines and is currently working towards obtaining its ISO 14 001 accreditation.

vibration specifi cations require detailed blast design and control to ensure that we do not compromise these structures. “In addi-tion to remaining on track with our produc-tion targets, we have also recorded no lost time injuries (LTIs) for just more than 20 months and more than 500 000 man hours with a staff complement of 150 (including sub-contractors). “We execute highwall in-spections in the pit every morning before shift starts and have continuous inspections throughout the day.

Something greaterVlakfontein Phase 2 is planned to com-mence in January 2014, which includes a

larger block to the north. AEMFC is also in negotiation to obtain this block through a swap of ground with Anglo American Th er-mal Coal. “Our plan is to double our mining capacity from 1.6 Mtpa to 3.0 Mtpa by the end of 2015, which takes the mine’s lifespan to 2029,” Mathebula explains. “Th is has al-ways been AEMFC’s strategy. Our crushing and screening plant was designed and built for 3.6 Mtpa.

AEMFC is also in fi nal discussions to supplying coal to Eskom’s new Kusile pow-

er station, currently under construction. “Vlakfontein is situated just a few kilo-metres from Kusile, so it makes perfect sense. Th e intention is to construct a con-veyor which links with the Phola Kusile con-veyor,” Mathebula mentions.

Vlakfontein Phase 3 comprises the old Alpha and Beta under-ground collier-ies, which also fall within the company’s min-ing licence. Drilling on these two mine are-as will start imminently. Once the company defi nes the Alpha and Beta resource, it will

look at how to incorporate it into its overall Vlakfontein mine schedule. “Even though these mines are extremely shallow (15 m deep), we will look to mine them as open-cast pits as well,” Mathebula notes.

“We have also recorded no lost time injuries for just more than 20 months and more than 500 000 man hours”

asee

ng ne are-

A large

electricity-

producing power plant

fuelled by coal will burn

about 3 Mt of coal a year,

but if fuelled by uranium,

only 30 tpa of uranium

is used.

EE

nnneerggy faccts

BELOW The fi nal coal product before it is transported to the Kendal power station

RIGHT The Vlakfontein crushing and screening plant

• COAL BENEFICIATION • COAL TRADING • TRANSPORT & LOGISTICS • PLANT HIRE

Masemanzi Mining is a black emerging coal mining company which is aggressively making its mark in the mining sector, the company is involve in the Waterberg (Limpopo) province as well as Mpumalanga, Masemanzi mining has 79 mt which 25mt is Cooking coal in the Waterberg area and has various prospecting right in Mpumalanga and to this far Masemanzi mining await mining right and section 11 approval from Department of Mineral Resource.

Masemanzi is also involved with African Exploration Pty Ltd (known as government mine) whereby at least 30 000 tons/month is benefi ciated through Masemanzi mining to meet various product specifi cations.

Masemanzi Mining

6 Balmoral Rd, eMalahleni, 1035Wonderboy Manzini (Director)

Tel: 072 082 9999 • Fax: 086 519 7803E-mail:[email protected]

www.masemanzimining.co.za

D i d y o u k

n ow

?



BARBERTON TAILINGS RETREATMENT PROJECT (BTRP)

A new star attractionJSE-listed precious metals miner Pan African Resources’ latest venture, the

development of a large-scale gold tailings retreatment plant at its Barberton

mining operation is the latest in a string of successes, writes Laura Cornish.

Pan African Resources (PAR) may be small compared to many of South Africa’s precious metals compa-nies, but its achievements have

been numerous over the past few years. “We know how to manage our costs and maxim-ise on productivity, and unlike many of our peers, are not reliant on the gold price,” says CEO, Jan Nelson.

Th e ounces it continues to extract from one of South Africa’s oldest gold mines, Barberton, is suffi cient evidence of this, alongside the tailings process plant it is currently building to treat the mine’s historical dumps.

In April 2012, the company announced that it had commenced with bulk earth-works for the construction of its R300 mil-lion Barberton Tailings Retreatment Plant (BTRP), situated on the Barberton property adjacent to the Bramber tailings dam. Once operational, it will increase the mine’s pro-duction capacity to around 115 000 ozpa of gold (Barberton is currently delivering about 95 000 ozpa).

Th e intention is to commission the 100 000 tpm/1.2 Mtpa run-of-mine (ROM) BTRP in April 2013, with fi rst production scheduled for June should the environmen-tal impact assessment (EIA) and new tailings

storage facility be authorised. It will ramp up to nameplate capacity by August.

Basil Read Matomo, which delivered Phoe-nix seamlessly, is the appointed EPC contrac-tor again. “With this company in charge, I am confi dent it will deliver on time and on budget,” Nelson adds.

Th e dumps constitute 120 000 oz of mate-rial and another 40 000 oz will be processed from underground current arisings. It will deliver 160 000 oz of gold overall at an aver-age recovered grade of 0.54 g/t.

“Th is is the fi rst major mining devel-opment in this region in decades, an im-pressive feat in itself. It will also provide



base already installed. Th ree of the nine CIL tanks have also already been complet-ed thanks to the use of an innovative con-struction method, which sees the tanks be-ing built from the ground up.”

Current tailings from the Fairview con-centrator and the Fairview BIOX plant,

totalling 14 000 tpm, will be routed via a pipeline to the BTRP for treatment and 86 000 tpm will be reclaimed from the Bramber tailings storage facility. Th e fi rst phase of the project constitutes three

The 1 500 m deep Barberton operation currently has a lifespan of 17 years and despite its refractory nature, continues to be a highly profitable operation under PAR’s management

employment opportunities. We expect to employ around 85 people, including con-tractors, to run and operate the BTRP plant.

Phase 1Th e BTRP will treat its tailings through a carbon-in-leach (CIL) circuit using elec-tro-winning and smelting to produce a saleable product. “Th e plant’s construc-tion is going extremely well, with the gold room already completed and the thickener

BTRP Phase 1 project highlights

The BTRP comprises a total resource of 306 000 oz (6.91 Mt at 1.38 g/t), with a further 6 Mt drilled and tested at the New Consort Mine. • it has a reserve of 248 000 oz (7.7 Mt at 0.56 g/t)

• at a gold price of R400 000/kg, the project has an NPV of R336 million (discount rate of 7.5%)

• it will increase current production at Barberton by approximately 20% to 115 000 ozpa

• it is expected to produce gold at an operating cash cost of R194 000/kg.

tailings dams. Th e fi rst to be treated is the Bramber dam, which comprises tailings ma-terial from the Fairview mine from 1988. It has been dormant since reaching the end of its life in 2010. Th e new tailings dam is an extension of Bramber, but its material is not included in the project at this stage.

“Bramber has a 3 Mt resource and consists of two portions: a BIOX high-grade portion

Biodiesel

fuel can be

produced from a variety

of natural crops, including

rapeseed, soya bean,

mustard, fl ax, sunfl ower,

canola, palm oil, hemp, jatropha

and waste vegetable oils. Most

recently added to the list

is tobacco.

EEnnneerggy faccts

BELOW Bramber has a 3 Mt resource and consists of two portions: a BIOX high-

grade portion and the rest a conventional processed (fl otation) portion.

BELOW AND RIGHT The BTRP will treat its tailings through a carbon-in-leach (CIL) circuit using electro-winning and smelting

to produce a saleable product




and the rest a conventional processed (fl o-tation) portion,” says Ron Holding, Pan Af-rican Resources’ executive for mining. Th e BIOX portion (74 000 oz) will be processed fi rst and has an average grade of 3.06 g/t.

Once the Bramber tailings dam has been completely reprocessed, the remaining dumps (Harper North and South) will fol-low. PAR acquired these two dumps for R10 million in December 2011 from a sin-gle operator whose own recovery plant was not producing adequate recoveries.

“Harper North and South, also histor-ic Fairview dumps, contain an additional 3 Mt and comprise large portions of high-grade calcine material originally processed by roaster,” Holding outlines.

PAR has also acquired property to the west of the Bramber tailings site, which will eventually be used as the new tailings facility.

Because the Bramber dump materi-al is so fine, the plant does not require a mill, although space has been allocated for it, as one will need to be introduced at a later stage when the older dump’s

processing starts. The plant will consume only 4 500 kW of power initially and will require an additional 1 400 kW once a mill is incorporated. Power will be supplied via an overhead 11 kV line from Eskom.

“We have plans to evaluate the Sheba dumps over the next 12 months, which could be another 7.5 Mt of tailings in total.” Ron Holding, Pan African Resources’ executive for mining

Phase 2The BTRP Phase 2 project entails retreating Barberton’s 6.8 Mt Consort dump, which contains mainly concentrator tailings as well as calcine residue from his-torical roasters prior to the intro-duction of the BIOX technology. “We are expecting to process significantly high grades from the calcine on the Consort tailings dam, of between 4.5 and 5 g/t,” Holding notes.

PAR is already evaluating how to incorporate this dump into the whole BTRP project. The most viable option at this stage is trucking the material to the Bramber plant, about 15 km away. The addition of Consort will increase the total project’s lifespan to about 12 years.

Beyond Consort, this tailings retreatment project remains open with opportunity. “We have plans to evaluate the Sheba dumps over the next 12 months, which could be another 7.5 Mt of tailings in total,” Holding mentions.

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Southern Africa

The next exciting instalment

“Our core focus is optimising cash flow and extracting maximum value from assets. We are not preoccupied with size and status. We like South Africa and believe this country will still be a mining investment and destination of choice in years to come. PAR is definitely here to stay,” Nelson confirms. Even though the company will not be responsible for extracting the value from the blue-sky Manica project in Mozambique, it remains a significant shareholder in the business, which will reap rewards in years to come. Its recent Evander gold mine acquisition is also expected to deliver massive volumes of new gold ounces to its production profile.

The February 2013 edition of Inside Mining will include articles on both Manica and Evander in the gold feature focus.

s

-We tly high

Enough sunlight

falls on the earth’s

surface each minute

to meet world energy

demand for an entire

year.

En

eerrggyy faacts

D i d y o u k n ow

?

BTRP’s suppliers


Even though our focus as a company is global, and spreads across every continent, our interest in the lo-cal mining sector has not deteri-

orated and remains an important element of our overall business,” says Kemix MD, Gavin Veale.

In August 2012, the company was awarded the contract to supply its specialised equip-ment to the Barberton Tailings Reclama-tion Plant (BTRP). Th e project will recover tailings from the historical Barberton gold mines, increasing its annual gold production capacity from about 95 000 to 115 000 ozpa. “Our contract includes the supply of nine MSP 500(P) pumping interstage screens and 18 launder gate valves for the carbon-in-leach (CIL) circuit, along with a 250 kg/h electric carbon regeneration kiln and two 8-cathode/9-anode electrowinning cells,” says Kemix metallurgist Mark Proudfoot.

“Considering the BTRP project will pro-cess some of South Africa’s oldest tailings material, we are very proud to be involved

in the project. It also means we have local project work in addition to our extensive international business,” notes Kemix’s mar-keting director, John Rogans. Kemix also assisted engineering contractor Basil Read Matomo with certain aspects of the adsorp-tion circuit launder layout. “We have al-ready supplied all of our equipment to site,” Rogans continues.

Th e Kemix equipment range is ideal-ly suited to

the optimal adsorption of gold, making it ideal for Barberton’s gold tailings recovery plant. Mineral process separating pumping

(MPS(P)) interstage screen technology is de-signed for CIL circuits having the tanks and operating pulp levels at the same horizontal elevation. Th e pumping action of the impel-ler induces suffi cient head and pulp velocity to transport the pulp to the next adsorption tank in the circuit.

Th e Kemix Launder Gate Valves are de-signed for open launder circuits primarily in gold adsorption circuits. Th ey are manu-factured to suit the launder dimensions for specifi c applications and can be supplied ei-ther as manual or automated units.

Th e Kemix Carbon Regeneration Kiln is custom designed to meet appli-cation requirements, with regard to mode of fi ring, voltage, frequency and

throughput. Th e Kiln’s retort tube is manufac-

tured from special-ised alloys capable

of withstanding high

GOLD ADSORPTION

Making the gradeSouth Africa’s metallurgical adsorption circuit specialist, Kemix, has developed a

global reputation for its minerals processing equipment. While the majority of its

project work is currently international, it is making its local mark on Pan African

Resources’ Barberton Tailings Reclamation Plant project, writes Laura Cornish.

The Kemix equipment range

Kemix adsorption technology covers the CIL and CIP circuits for gold and silver recovery. Pumpcell technology can be adapted for resin-in-pulp circuits for the recovery of gold and silver, as well as metals such as uranium, nickel and other base metals.

“Even though our focus as a company is global, and spreads across every continent, our interest in the local mining sector has not deteriorated and remains an important element of our overall business.” Kemix MD, Gavin Veale

Carbon regeneration kiln

BTRP’s suppliers

temperatures associated with thermal re-generation. Th e design of the retort tube with consideration to peripheral speed en-sures carbon bed turnover, thus enhancing the complete thermal regeneration of the carbon. All Kemix Kilns have an automat-ic start up and shut down sequence, which reduces operator input. Speed variation of the screw feeder facilitates greater fl exibility and complete plant integration.

Gold or silver bearing solutions from an elution process or high-intensity concen-trate leaching system are suitable for treat-ment in a Kemix electrowinning cells. It is engineered as a non-complex, robust and easy to operate unit with minimal main-tenance requirements. Th e electrowinning cell consists of a sandwich arrangement of anode assemblies on either side of cathode compartments, all contained in a tank man-ufactured from 316 L stainless steel.

Kemix also supplies pumpcell technology, which is in essence a complete carbon-in-pulp (CIP) circuit, incorporating a pumpcell mechanism and launder system enabling the carousel mode of operation to be em-ployed. Th e design of the pumpcell circuit

allows all contactors to be placed at the same horizontal evaluation, in contrast to the stepped arrangement used for conventional cascade CIP adsorption plants. Th is feature facilitates the carousel mode of operation, where the pulp feed and tailings discharge positions are rotated in such a manner that a counter current movement of pulp

and carbon is achieved without the need to physically move carbon from one pumpcell contactor to another. Th e carousel mode of operation has been shown to result in signif-icant improvements in adsorption effi cien-cy, due to the elimination of ‘backmixing’ inherent in the conventional CIP circuits.

ABOVE Electrowinning cellRIGHT Interstage screen

BTRP’s suppliers


In March 2012, we were awarded the contract to complete all terracing (earthworks) and structural concrete work for Pan African Resources’ Bar-

berton Tailings Reclamation Plant (BTRP) project,” says M3 Construction’s director Terry Darlow.

Th e Level 4 BEE-compliant company moved onto site in April and completed the majority of its contract in October.

Amendments to the thickener and brick of-fi ce building will see the company conclude its contract in January 2013.

“We have developed a close working re-lationship with EPC contractor Basil Read Matomo, having worked with them on Pan African’s previous tailings reclamation plant, Phoenix, as well as the Two Rivers tailings plant currently in development stage where we have a similar contract to

BTRP,” Darlow continues. M3 Construc-tion, a member of the South African Fed-eration of Civil Engineering Contractors (SAFCEC), is due to complete its contract at Two Rivers in April 2013. At peak contract phase, M3 Construction had 11 dedicated senior personnel working on the BTRP pro-ject together with 70 general skilled labour-ers. “We experienced no project delays and remain ahead of schedule.”

Darlow believes the company has a sig-nifi cant competitive edge in the mining industry, which currently constitutes about 80% of its business. “Our management team is hands-on. I always visit my project sites at least once a week to ensure they stay on track and are being delivered to the client’s specifi cations.”

While the majority of M3 Construction’s work is in South Africa, its immediate fo-cus is to acquire work throughout the rest of Africa. The imminent contract award for a gold project in the Democratic Republic of the Congo will see this strategic goal move in the right direction.

CIVIL ENGINEERING SAVVY

BTRP’s solid foundationCivil engineering construction company M3 Construction Projects is making

major in-roads into the mining sector and is here to stay, thanks to the imminent

completion and success of its contract with Basil Read Matomo for the Barberton

Tailings Reclamation Plant project, writes Laura Cornish.

In March 2012, M3 Construction was awarded the contract to complete all terracing (earthworks) and structural

concrete work for Pan African Resources’ BTRP project in Barberton

M3 Construction moved onto site in April and completed the majority of its contract

in October

The US

Department of

Energy expects wind

power to supply at least

5% of the nation’s

electricity by 2020.

Eneerggy ffactss

D i d y o u k n ow

?

BTRP’s suppliers


It is common knowledge that most start-up companies fail within the fi rst fi ve years. MIP’s doors, however, re-main open for business, and the com-

pany’s growth momentum continues to climb. “2011 and 2012 have been our best business years since the company was es-tablished,” says MIP MD, Philip Hoff . “And our predictions for 2013 are showing equal promise. My intention is to double our forecast turnover.”

Th e company’s latest contract is for the supply of a 21 m diameter thickener and fl occulant plant for Barberton Tailings Rec-lamation Plant (BTRP). Th is follows the successful supply of primary and second-ary slurry samplers for the carbon-in-leach (CIL) tailings and fl otation tailings applica-tions for the same project.

Th e plant is located near Barberton and was designed by Basil Read Matomo for the

treatment of gold preleach materials prior to reporting to the leach circuit. “MIP has an excellent track record for this par-ticular application, having supplied a range of units to the gold industry over the last fi ve years,” Hoff points out.

“Our process selections are based on test work, coupled with our vast experience of thickening processes. Because we know that no two applications are exactly the same, we design and engi-neer a dedicated blue print for each thickener,” Hoff continues.

MIP thickeners have a special feedwell design and underfl ow arrangement to ensure high clarity of water for subsequent processes.

“New designs and equipment improve-ments and upgrades are vital to our

business. To strengthen our overall equip-ment profi le, we launched our new sampler

range at the beginning of 2011. Th e range complements the existing products and market areas that we serve, and

adds another dimension to our off ering.” It includes launder,

primary and secondary rotary, pipe samplers as well as fi xed cutter units.

In addition to the BTRP pro-ject, other major MIP successes include the largest thickener of bolted construction in Africa, the largest linear screens supplied to a customer in Australia, and the

successful introduction of a slur-ry sampler range.

THROUGH THICK AND THIN

Standing the test of timeProcess equipment and solutions provider MIP Process Technologies has celebrated its fifth year in business. The company’s project and equipment portfolio continues to expand with rapid speed, which now includes Pan African Resources’ Barberton Tailings Reclamation Plant project.

MIP’s equipment range

MIP provides the full spectrum of conventional, hi-rate as well as high density thickeners, and has the capability and capacity to design and erect units from 1 m diameter pilot scale thickeners to 90 m in diameter.

The company’s equipment lineup includes attrition scrubbers, Chemineer agitators and mixers, clarifiers and thickeners, depressant make-up plants, flocculant plants, horizontal linear screens, samplers and Moyno progressive cavity pumps.

ABOVE Single 450 mm vezin BELOW 21 m diameter thickener



F errex is an AIM-listed exploration and development company with a portfolio of iron ore and manga-nese deposits in Africa.

During its first year as a publicly listed company, Ferrex focused on its strategic goals to deliver value by developing iron ore and manganese projects with near-term resource potential and pursuing addi-tional low capital iron ore and manganese projects in Africa. Its Malelane project is progressing steadily along the project mile-stone checklist. In June 2012, the compa-ny announced a positive scoping study.

MALELANE

Making its move

The release of a scoping

study at its Malelane

iron ore project in

Mpumalanga proves

that Ferrex is staying

true to its strategy of

becoming a low-cost iron

ore producer in Africa,

MD Dave Reeves tells

Inside Mining.

Advancing towards iron ore productionFerrex has a 74% interest in the Malelane iron ore project, which incorporates the prospecting rights of a 4 192 ha concession in Mpumalanga.

Malelane is located over the Archean Bar-berton Greenstone Belt, which consists of volcanic, clastic and chemical sedimen-tary rocks, including banded iron forma-tion (BIF). Three distinct BIF horizons have been identified on the property with a combined strike length of 14 km and mapped horizontal width of up to 300 m.

Coffey Mining has estimated a total exploration target of between 775 and 930 Mt, with a total grade of 34 to 36% iron in the ground.

To date, Ferrex has completed several drilling programmes across the northern BIF. In March this year, it declared a maid-en JORC-compliant inferred resource of 139 Mt at 40.1% CaFe. The inferred resource shows a combination of direct shipping ore and beneficiate-before-shipping ore.

A simplified metallurgical processTh e Malelane project is 6 km from a reliable rail line that runs to the Port of Maputo in Mozambique, 175 km from the site.

It will produce up to 3 Mtpa of iron ore, with an initial life of mine plan of 20 years, although this will be fi ne-tuned as Ferrex fi nalises discussions with port and rail au-thorities for capacity, says Reeves.

Th e company is working diligently towards a pre-feasibility study, to be completed early in 2013. “When the pre-feasibility is com-pleted we will fi nalise the mining permit application, including initial environmental and social reviews, and apply for a mining right by June 2013. Th at will take some time, and during that time, we will complete the bankable feasibility. Our exact start will coincide with the port expansion in Mozam-bique,” Reeves continues.

Eskom’s

generation division

has 13 coal-fi red power

stations with an installed

capacity of 37 745 MW. Its total

net output, excluding power

consumed by its auxiliaries

and generators, currently

in reserve storage, is

34 952 MW.

EEnneerrgy ffactss

TOP Ferrex has completed several drilling programmes across the BIF

D i d y o u k

n o w?


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Th e scoping study revealed that dense me-dia separation (DMS) will be the most fea-sible processing methodology for ore. “We looked at the standard process for magnet-ite – magnetic separation and fl otation – but the capital costs and the operating costs are

too high and it makes no sense compared to the gravity circuits,” says Reeves.

Th e signifi cant benefi ts of simplifying the process route via DMS has resulted in a 25% increase in the project’s internal rate of return, while at the same time halving the capital costs and reducing the capital inten-sity fi gures for the project.

Work will now focus on fi nalising the fi nes process route, in order to further improve economics and overall yield.

Going forward“I think the project’s development chal-lenges will be ensuring that the operating

costs of the logistics chain is kept to a rea-sonable limit, because that will impact on the economics. The permitting side also presents challenges. The process seems to become more and more convoluted and complex,” notes Reeves. “From a technical

perspective, the actual mining and pro-cessing will not be challenging. We foresee logistics and administrative issues to be greater concerns.”

Although current labour challenges are per-ceived negatively by international investor communities, Reeves says Ferrex still views South Africa as a good place to operate inside Africa, specifi cally because of its skills base.

Will Ferrex only focus on export mar-kets? “If there are opportunities to take

The Malelane project is 6 km from a reliable rail line that runs to the Port of Maputo in Mozambique, 175 km from the site

it inland, we will pursue that, but for now we are targeting export via Mozambique,” says Reeves.

RIGHT The company is working diligently towards a pre-feasibility study, which is to

be completed early in 2013

Energy efficiency and renewables

P65 Big on iron ore – big on energy saving

While Anglo American iron ore company Kumba Iron Ore has already instituted numerous energy saving technologies and programmes at its operations, it remains focused on lowering its energy consumption and carbon footprint even further.

P66 New cogen technology

Smelter engineering fi rm Metix, part of the international SMS Siemag Group, has developed energy-saving solutions that enable cogeneration of power for the local furnace industry.

P68 A fi rst for 49M

AfriSam has achieved another signifi cant milestone in its history by becoming the fi rst construction materials company to sign the 49M pledge. This step signifi es the company’s commitment to the global agenda for energy effi ciency and playing a proactive role in contributing to energy saving across South Africa.

P56 Investing in clean energy, a true Gold Fields commitment

Meeting gold production targets is Gold Fields’ core business focus, a focus that will extend to Sibanye Gold, the new gold mining company unbundled from Gold Fields last week. Reducing its energy consumption and carbon footprint, however, is rapidly moving to the top of its priority list.

P60 Energy management delivers operational excellence

Energy has become a key driver of mining profi tability. Rising energy prices, carbon taxes and energy ineffi cient and ageing assets, as well as new mines in remote, energy-short locations, combine to present a serious challenge.

P62 Fans of the future

Signifi cantly reducing energy consumption and carbon footprints is the key to long-term sustainability in the mining industry. MechCaL was founded and established with the aim of helping to address the issue.


CONTENTS

P70 Rest assured, renewables arrive

The future of Africa’s mining industry depends largely on the ability to secure suffi cient power. The construction of the fi rst renewable energy projects is a major milestone, providing long-term sustainability to the country’s smallest and largest energy consumers.

P74 Cleaning up clean energy risks

Marsh has a well-established international reputation advising companies on risk management and insurance issues in the energy sector. Thisis a competitive edge for local subsidiary Marsh Africa as the fi rst round of renewable energy projects moves beyond fi nancial close and into execution.

P78 Embracing a new energy landscape

Mining companies and insurers have a common goal in ensuring that energy effi ciency and alternative energies feature highly on their respective agendas – although not necessarily for the same reasons.



Because energy costs keep rising and already constitute more than 20% of Gold Fields’ total cost base (which has more than doubled in

the last two years), the company is taking serious steps to ensure its operations remain sustainable for their remaining lifespans. Th is same philosophy will also apply to Sib-anye Gold.

“In March this year we launched our inte-grated energy and carbon strategy – a global project that sets out to understand how we can transform our management of energy

INVESTING IN CLEAN ENERGY

Energy efficiency & renewables

A true Gold Fields commitmentMeeting gold production targets is Gold Fields’ core business focus, a focus that

will extend to Sibanye Gold, the new gold mining company unbundled from Gold

Fields. Reducing its energy consumption and carbon footprint, however, is rapidly

moving to the top of its priority list, writes Laura Cornish.

Sibanye Gold

On 29 November 2012, Gold Fields announced the creation of new mining company Sibanye Gold. The creation of Sibanye Gold is a result of Gold Fields unbundling its Kloof Driefontein Complex (KDC) and Beatrix gold mines, together with various service companies. Neal Froneman, former CEO of Gold One International and Goliath Gold, will take up the position of CEO of the new entity.

Gold Fields CEO, Nick Holland says: “While some parts of the [local] operations have been in production for as long as 70 years, these assets still have inherent quality and extensive resource and reserve potential. The separation will liberate Sibanye Gold into a fit-for-purpose, sustainable gold mining company best positioned to maximise long-term value for stakeholders. By unbundling the cash-generative KDC and Beatrix mines into Sibanye Gold, its cash flows can be utilised to extend the life of the mines and improve dividend payouts to shareholders. The first priority, however, will be to achieve stable and safe production.” South Deep remains Gold Fields’ only gold mine in South Africa.

Both Gold Fields and Sibanye Gold will be SA-domiciled and have a primary listing on the JSE and a secondary listing on the New York Stock Exchange. In mid-February, the companies will be split and separately listed, with separate boards and management structures.

Kloof headgear (Kloof is part of the KDC complex)



and carbon through direct interventions and by changing our operating behaviour,” says Gold Fields CEO, Nick Holland.

Th e vice-president and group head of en-ergy, carbon and waste management, Jan du Plessis, says the strategy, which was de-veloped for use across all of Gold Fields re-gions – and now for Sibanye’s mines – was developed in three and a half months to en-sure that the fi rst stages of the strategy roll-out could be included in the company’s 2013 business cycle. For Gold Fields, it will be run through a steering committee that has rep-resentation in all the regions, including the company’s exploration projects.

Th e strategy aims to achieve specifi c tar-gets, in particular reducing group energy consumption by up to 10% by 2016, depend-ing on the investment required. Th is will en-able the company to cut its carbon emissions by 13% on the same basis, because energy, particularly in South Africa where 90% of electricity is derived from coal, is a proxy for carbon emissions.

Du Plessis adds that in addition to this target, at least 20% of energy use at new operations must come from alternative/renewable energy.

Holland explains: “Th e strategy provides a framework to guide the way we source ener-gy, the way we consume energy and the way we manage our core business activities that

drive energy effi ciency. It also looks at the linkage between energy consumptions and carbon emissions, and how we can mitigate these emissions. We have found signifi cant scope for saving energy in all our operating regions across both fuels and electricity.”

Ghana: Tarkwa and DamangEnergy in Ghana comprises 35% of total op-erating costs in the region, meaning that re-ducing energy as well as fuel costs is critical.

“We are currently investigating the feasibil-ity of a 30 MW biomass power plant at our Tarkwa operation and negotiating a power purchase agreement (PPA) alongside this. Once we have fi nal sign-off on the PPA, this project will move into execution. We are aim-ing for a completion timeframe of late 2014,” Du Plessis says.

Th is is the most advanced of Gold Fields’ renewable energy projects and will provide

Tarkwa with a long-term energy solution. “We could even consider building a power line to the Damang mine, 60 km away, should the mine expand its operations,” he adds.

South Africa: Sibanye Gold – KDC and Beatrix (500 MW)Th anks to the incorporation of Eskom’s De-mand Side Management initiatives, Sibanye Gold’s South African mines are already well

advanced in terms of ener-gy saving ven-tures. Th e plan is to introduce re-newable energy pro-jects into the mix as well.

Renewable energy initiatives“I am confi dent that renewable power prices will be on par with Eskom power tariff s by 2018, meaning that the time to start invest-ing in and building renewable energy pro-jects is now,” Du Plessis comments.

Sibanye Gold has completed a feasibili-ty study for a 3 to 5 MW biomass plant at KDC’s Driefontein site, using alien vegeta-tion as a feedstock. Th e project is currently in review.

“We are also providing space at our Beatrix site for the development of an 80 MW solar

The strategy aims to achieve specific targets, in particular reducing group energy consumption by up to 10% by 2016. Gold Fields CEO, Nick Holland

-an e re-gy pro-mix as well.

Eskom

has embarked

on a massive building

programme to add some

12 000 MW to its capacity

by 2019. However, power

supply from the two new coal-fi red

stations – Medupi and Kusile –

only started in 2013 and will

be 100% available in

2019.

Energy facts

Due to the high levels of methane gas at Beatrix, Sibanye is also looking at a methane extraction project which will generate about 4 MW of power while reducing carbon emissions by

approximately 250 000 t per annum.


plant, whose output would mostly be fed directly back into the na-tional grid,” Du Plessis explains.

Due to the high levels of methane gas at Beatrix, the company has built a methane extraction system on site, which will eventually have the capacity to generate about 4 MW of power, while reducing carbon emissions by approximately 250 000 t of CO2 per annum.

Energy recovery and efficiencyIn addition to renewable projects, Gold Fields continues to implement a number of operational initiatives aimed at reducing electricity con-sumption. According to Du Plessis, one of the company’s most excit-ing projects to date is the investment in energy effi cient fans. “Former CSIR employees founded a company in 2007 called MechCaL and have designed a high-effi cient 33.5 kW fan that provides the same airfl ow as a 45 kW fan. Th e company is rolling the fans out to the mining in-dustry. Gold Fields and Sibanye alone are taking delivery of more than a hundred fans every month.”

About 800 fans will be installed over the next 12 months and should save about 9 MW of power, resulting in R30 million in annual savings (in 2012 terms).

Another initiative is the three-chamber pump system or 3CPS (also known as a three-chamber pipe feeder system), which recovers energy from incoming water and uses it to pump water out of the mine. Th e system has been implemented at Driefontein 3 Shaft, Kloof 4 Shaft and will be commissioned at Driefontein 1 Shaft in 2013.

“We have also installed hydraulic power recovery turbines (HPRTs) at Kloof 3 and 4 Shafts, Driefontein 5 Shaft and Beatrix 4 Shaft,” Du Plessis continues.

HPRTs convert excess pressure into mechanical shaft energy and increase the overall process effi ciency. Sulzer Pumps has years of ex-perience in using reverse running pumps as turbines as an economical solution to recover energy. “Th ese turbines provide in the region of 15 MW of energy recovery.”

Sibanye Gold has further optimised ventilation across all of its operations thanks to the incorporation of inlet guide vanes, which lower the electricity consumption by more than 20% during peak demand periods.

Other power generation activities to achieve energy savings include:• fi xing leaks• monitoring demand side management valves on a daily basis in or-

der to increase eff ectiveness and uptime• investigating the compressor control system in order to identify im-

provements and reduce compressed air set points where possible• gold plant agitation air fl ow reduction and instrument air isolation. “We also recently launched a programme aimed at optimising the effi ciency of our comminution circuits, which will run over the next

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18 months to three years. Th is could im-prove our energy consumption by a further 3 to 5%.”

With up to 83% of processing plant ener-gy usage derived from comminution energy, which can in turn account for up to 51% of total site power usage, the optimisation of the blasting/crushing/comminution and/or classifi cation circuits (mine-to-mill) forms a key component of Gold Fields’ and Sibanye Gold’s energy effi ciency programmes. Sim-ilarly, comminution can account for around 28% of a sites total greenhouse gas emissions as measured in tonnes of CO2 equivalent.Th e Gold Fields comminution effi ciency project is aimed at the following key deliverables:• decrease power consumption per tonne

of ore treated by 5% to reduce unit CO2 emissions

• optimise throughput for each operation based on current design

• introduce group standards with re-gard to modelling and evaluation of comminution circuits

• reduce grinding media consumption by 5%• develop group standards with regard to

comminution practice, in particular the use of on-line control, measurement and logic systems

• develop group standards for engineering and maintenance of comminution circuits

• standardise group grinding media test-ing by establishing a group testing facility in Ghana

• facilitate the establishment of comminu-tion skills in each region sourced from within regional metallurgical teams.

RIGHT Due to the high levels of methane gas at Beatrix, Sibanye is also looking at a methane extraction project which

will generate about 4 MW of power while reducing carbon emissions by

approximately 250 000 tpa

Profile: Energy efficiency & renewables


In response to these pressures, glob-al strategy consulting company AT Kearney is helping industries around the world to manage and optimise

the energy intensity of their operations. A key element of this work is understanding energy intensity drivers, both in terms of consumption and production, as well as finding levers to manage these drivers for maximum energy efficiency.

The mining industry is a powerhouse in South Africa, representing key sources of income, foreign direct investment and job creation in the country. However, the in-dustry now faces fundamental changes.

The global energy climate is changing, and prices are increasing worldwide – fast-est in South Africa at about 16% per year. Mining companies are also pushing into new and remote locations from the moun-tains of Peru to the forests of the eastern Congo. The lack of electricity supply in these areas, and very unstable grids where it is available, means relying on expensive diesel generation.

Major mining challenges can be addressed by continuously improving operating effi -ciency. Th is means focusing on operational excellence: improved asset utilisation and productivity, reduced procurement and in-frastructure costs, optimised supply chains and complexity management. A key lever that can be used to measure, understand and drive improvements in effi ciency is energy.

Energy can be up to a third of the cost base of a mining operation and is therefore a major driver of profitability. “As a result, we have developed full energy manage-ment and carbon strategies to assist com-panies ensure their long-term sustainabili-ty,” says Martin Sprott, South Africa-based AT Kearney principal.

ENERGY MANAGEMENT

Delivering operational excellenceEnergy has become a key driver of mining profitability. Rising energy prices,

carbon taxes and energy inefficiency, ageing assets, as well as new mines

in remote, energy-short locations, combine to present a serious challenge,

writes Laura Cornish.

About AT Kearney

AT Kearney was established in 1926 in Chicago and employs 3 000 people across 40 countries in 57 offices. Its South African office was founded in 1995 and has been providing major industrial sectors, including mining, with strategic advice ever since.

“We believe that mining companies can and should use energy as a means to under-stand how effi ciently they are running their businesses. Focusing on how to improve

ABOVE Bringing average truck loads to the maximum load increases asset

utilization and reduces the carbon and energy footprint per ton

RIGHT Mining road “leveling” and “debottlenecking” increases the

turnaround time of the trucks and reduces carbon emissions and energy usage



energy effi ciency forces companies to optimise their operations for effi ciency, better prepare for the future and even closely evaluate human behaviour.”

AT Kearney’s energy management and carbon strategies provide a holistic approach to understanding performance, thereby delivering solutions to achieve goals and objectives.

“Th e process involves establishing a baseline in terms of the gener-ation and transmission landscape, the regulatory environment and a company’s consumption profi le within that. We then conduct a review of mining assets to identify patterns of consumption and potential ways to reduce energy consumption and optimise energy intensity.

“We employ what we call a ‘house of energy and carbon management excellence’.” Th is is a structured approach to assessing the activities of a company with an emphasis on understanding how the core business drives and is driven by energy. It moves through the full business cy-cle from corporate strategy through operations to company culture.

“We also consider alternative generation options. Renewable ener-gy sources are increasingly commercially viable options. Wind and photovoltaic solar generation in some locations are approaching or have reached parity with the grid cost of electricity. In some remote locations renewable energy can be an optimal solution given the long distances to grid power.”

Based on this analysis, a roadmap can be created to reach signifi cant energy savings and reduced CO2 emissions. Th is typically involves actions ranging from implementing energy management systems, investing in selected energy effi ciency projects, making processes im-provements and changing technologies. From a strategy perspective, AT Kearney:

• develops innovative ways to make the most of companies’ assets (value chain reconfiguration)

• formulates value-building growth strategies • prepares and implements mergers and acquisitions, divestures and carve-outs

• integrates support in both pre- and post-merger phases

From an operations perspective, AT Kearney:

• drives operational efficiency through energy management and carbon strategies

• develops integrated supply chain management • implements extensive restructuring and change management programmes

• reduces the product portfolio and implements active complexity management

• optimises production networks and increases site productivity • designs and implements sourcing programmes.

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

AttractivenessIndex1

Potential for Renewables

Chile

TanzaniaAustralia

Indonesia

SA

1. Comprised of competitiveness, security of supply, price levels

1 = low potential4 = high potential

= Country GDP

hgiH woL Mid

A.T. Kearney energy landscape assessment

Ultimately, Sprott says AT Kearney’s overriding approach to manag-ing energy is “one that constantly seeks out opportunities to achieve operational excellence. If you are managing your core business as well as you can, reduced energy and CO2 emissions intensity will fol-low suit.”



E s t a b -lished in 2002 and officially registered in

2005, MechCaL’s primary business pur-pose is to design, develop and manufac-ture high-efficiency, low-noise industrial ventilation fans for underground opera-tions. The company’s core management team comprises former CSIR employees, who have over 120 years of combined ex-perience in operations, aeronautical and mechanical engineering component man-ufacture and development.

“MechCaL excels in design and research and development (R&D) of customised fans, owing to our expertise in aerody-namics, and the use and incorporation of advanced materials, such as composites,” says the MD, Gavin Ratner. “It has taken us years to design and redesign a fan that

can deliver on its promise to achieve sig-nificant energy savings, reduce noise levels and deliver longer lifespans.” MechCaL’s fan product line includes axial flow fans, centrifugal fans, a fan monitoring system and a cooling system incorporating a novel centrifugal fan for Caterpillar (prototype in R&D).

From the beginningMechCaL spent four years ‘perfecting’ its innovative fan designs and was fortunate to secure financial backing from the IDC (Industrial Development Corporation), which currently holds a 30% stake in the

company. The product went through nu-merous pilot test stages across various mining sites, which saw structural and aerodynamic changes incorporated across all elements of the fan, including the ro-tor blades, the screen and barrel, coating material, motor and quality of steel used.

“The result is a unique product, com-pletely different in appearance and design, which can save between 8 and 12 kW per 45 kW fan (or about 30%) depending on the existing fan,” Ratner confirms. This means that an operation comprising 400 MechCaL fans would result in saved energy of about 4 MW.

Fans of the futureMECHCAL’S BIG BREAKTHROUGH

Significantly reducing energy consumption and carbon footprints is the key to

long-term sustainability in the mining industry. One such company was founded

and established to help address the issue, writes

Laura Cornish.

s t a b -lished in 2002 and officially registered in

2005, MechCaL’s primary business pur-pose is to design, develop and manufac-ture high-efficiency, low-noise industrial

il i f f d dcan deliver on its promise to

ifi i d

long-term sustainability in the mining industry

and established

Laura Corn



Since putting its new steel rotor fan on the market, in late 2012, the company has already sold and delivered about 400 fans to Gold Fields, has another 500 on order, with pending sales for an addition-al 500 units. The company has developed close working relationships with Anglo American and Gold Fields, which were in-timately involved in the development and testing of the MechCaL fan and it is pur-suing similar relationships with all of the major mining houses.

have been compromised, but rather en-hanced. MechCaL fans are developed using the most ad-vanced CAE tools. With the use of CFD and FEA, its auxiliary fans address the stringent legis-lated noise requirements

while exceeding performance expectations (unsilenced at 90 dBA, silencing results in levels below the required utopian level of 85 dBA). Advanced materials (steel alloys and composites) and design aspects mean that wear characteristics have also been improved. Mechanical component main-tenance is also reduced and aerodynamic efficiencies improved.

“Despite the significant advancements we have already achieved on our fans, we will continue to allocate between 5 and 10% of the cash we generate on R&D. Our long-term objective is to further improve the robust nature of our fans, which will have a positive impact on their life cycle.

“We also want to do further computa-tional optimisation design, improve aero-dynamics further and reduce noise levels below industry accepted levels. Our fans will be more robust in the long term, meaning their life will extend beyond the typical period.”

MechCaL is already establishing the benchmark for reduced fan noise levels and is one of a very few that have reached the required 85 dBa level. “Our scrubber fan noise levels are already below target

MechCaLs’ intellectual property

MechCaL already holds a full patent on its jet fan, which has a unique nozzle that determines how much air to inject into a working area.The company has an additional five patents in the pipeline, including:• an anti-vibration system for fans (increases system life)

• axial rotor assembly• composite centrifugal fan assembly• ventilation monitor

MechCaL’s 3 500 m² fl oor space facility boasts an assortment of equipment includ-ing a computer controlled router, milling machines, lathes, unique press claves and jigging, as well as electronically controlled ovens. Th e ability to execute validated per-formance evaluations on fans to BS848/ISO5801 standards, along with two cus-tom-built dynamic balancing machines, ensures the company is able to shorten the turnaround time for any prototype required prior to performance testing and eventual production development.

“We already have 53 people in our employ-ment, all of who have undergone training to ensure they can deliver to our high standards in a working environment where accuracy, attention to detail and technological process know-how is essential.

“We are manufacturing about 100 fans every month, but have the capacity to scale up to 160 in the current facility. Our process, how-ever, is extremely streamlined, which means scaling up is easy,” Ratner notes. Every fan is test-run before delivery. MechCaL currently has designs and can manufacture the follow-ing typical axial fl ow fan sizes, including:• 45 kW fan (740 mm – compatible with

762 mm ducting)• 22 kW fan (740 mm – compatible with

762 mm ducting).Th e following off erings are also in development:• 75 kW fan (1 016 mm)• 7.5 kW fan (406 mm)• 15 kW fan (570 mm).MechCaL does not only manufacture axi-al fl ow fans, but also produces a range of centrifugal fans, also designed and man-ufactured ‘fi t for purpose’. Th e company prides itself on its strategy and business model to design and build according to customer requirements.

One of MechCaL’s core products is a 423 mm centrifugal full carbon composite fan that is used on current Kumatso haul trucks at Exxaro and Sishen mines. Th is impeller replaced the metal fans being used with a mass reduction of over 50%, decreas-ing overall maintenance costs and increasing performance levels at the same time. Th e same product is also used in the main blower system supplied to Siemens for the Hitachi EH5000 haul trucks.

A grand designAn entirely new design does not mean that traditional fan operating requirements

ABOVE The MechCaL manufacturing facility is 3 500 m2

ABOVE Structural analysis of the cast steel rotor blades to ensure greater fatigue

life and low stresses in the fi nal assembly


MechCaL’s client base

• Sibanye Gold (formerly Gold Fields’ Kloof, Beatrix and Driefontein shafts) Anglo American (auxiliary cooling)

• Transnet (traction cooling)• Lonmin (auxiliary ventilation fans)• Caterpillar (cooling systems)• Siemens (grid cooling and main blower)• Hitachi (axial box and grid cooling)• Exarro (axial box and grid cooling)• Kumba Iron Ore (axial box and grid cooling)

• Assmang (auxiliary ventilation fans)• Colliery Dust Control (coal scrubbers)• AngloGold Ashanti (auxiliary ventilation fans)

• CSIR

and working well for Colliery Dust Control. Its dust suppression ‘Inline Wet Fan Scrub-ber’ system is designed to ensure high dust-capture efficiency.

Ratner says the company has further de-veloped a monitoring system for installed fans. “We have designed and patented a system to monitor a fan’s health from a single point.” The system is fully automat-ed and operates in real time online.

3D illustrations showing the internal components of the MechCaL fan

LEFT The traditional (old) support methods and barrel designs

RIGHT MechCaL design showing the four barrel sections and the patented motor barrel support, which reduces vibration

levels and improves blockage and generated noise

Further opportunitiesRatner explains that the company’s in-house experience and capabilities af-ford it with numerous opportunities going forward, particularly for the de-sign and production of customised fan solutions for original equipment manufacturers (OEMs). “We are already far advanced in the design and development of a fan for Caterpillar for one of its large-scale haul trucks. The security of a contract from this project alone is already sufficient workflow in

addition to our base load to consider ex-panding our premises and production ca-pacity,” he points out.



Kumba has embarked on a process to find additional energy saving opportunities at Sishen, which resulted in a total of 31 “feasible”

additional opportunities that will be inves-tigated further and implemented where possible to help Sishen achieve diesel and electricity savings.

Kumba has 74 energy efficiency initia-tives in development for possible imple-mentation between its Sishen, Kolomela and Thabazimbi mines.

The energy efficiency initiatives cover the following areas and technologies:• energy efficient water heating, lighting,

and HVAC• high efficiency motors

• process optimisation and automation (comminution)

• diesel management (operational effi-ciency, drilling and blasting, mine design and payload)

• conveyor optimisation (variable speed drives)

• compressed air (leak detection and vari-able speed drives)

• pumping optimisation• energy recovery• metering/monitoring• energy efficient plant design.The company is also realigning its energy management programme to meet Anglo American’s revised requirements. The new programme is used to develop “bottom-up”

site energy and carbon targets, and is called ECO2MAN (Energy and carbon di-oxide management).

Renewable energyKumba has procured the services of spe-cialised service providers to develop a Clean Development Mechanism design document for a renewable energy project in the Northern Cape. The project is still in development stage and a final implementa-tion decision has not yet been taken. Kum-ba aims to participate in the third round of Eskom’s renewable energy independent power producer bids to have the project in-cluded in South Africa’s renewable energy procurement plan.

BIG ON IRON ORE

Big on energy savingWhile Anglo American iron ore company Kumba Iron Ore has already instituted

numerous energy saving technologies and programmes at its operations, it remains

focused on lowering its energy consumption and carbon footprint even further.

Kolomela iron ore mine



A s the persistent rise in the cost of electricity in South Africa continues to place industries under increased pressure to

save energy, Metix has launched an inte-grated combined heat and power (CHP) en-ergy system that enables the cogeneration of electricity and heat from a single fuel source, such as process gas or waste heat from metallurgical processes.

Metix deputy sales director, Klaus Schmale, explains that up to 40% of the en-ergy generated during the smelting process

in a furnace escapes with off-gases, which are always hot and loaded with energy. “Metix offers energy recovery systems for the steelmaking and ferroalloy industries, which can benefit by saving up to 55% of this waste energy.”

Schmale notes that CHP systems can be modified to the requirements of the end user. “Owing to their higher efficiency, CHP systems use less fuel to produce a given energy output. What’s more, higher efficiency results in reduced emissions, increased reliability and a higher power

quality. These efficiency benefits also lead to economic benefits, which is apparent in reduced energy costs.”

In ferroalloy production, Schmale points out that semi-closed type and closed type submerged arc furnaces (SAF) are ideally suited for energy recovery. “The carbon monoxide (CO) and hydrogen (H2) gen-erated by semi-closed type furnaces are completely burned away as a result of the false air that enters the furnace via the doors and other openings,” he explains. “In these applications, large amounts of fully

NEW COGEN TECHNOLOGY

Off-gas uptake Smelter engineering firm Metix, part of the international SMS Siemag Group, has

developed energy-saving solutions that enable cogeneration of power for the

local furnace industry.

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combusted offgas with high amounts of sensible heat are generated at tem-peratures of about 650°C. The off-gas of closed type furnaces is up to 1 800°C, and contains large amounts of chemical energy in terms of CO and H2.”

According to Schmale, Metix is able to generate power by using this offgas with a process gas-fired boiler combined with a turbine and a generator unit. “The boilers burn low calorific value process gas with special burners in a combustion chamber. Our standardised boiler is a two-pass boil-er; the first pass is the combustion cham-ber, while the heat exchangers such as su-perheaters, evaporators and economisers are located in the second pass.”

Following this process, Schmale explains that the superheated steam runs the tur-bine island to produce steam, and boilers using up to 360 tph of steam at 540°C can produce up to 160 MW of electrical energy, depending on the heat source. “Cogeneration ensures a directly control-

lable and constant price of energy, as op-posed to sourcing electricity from the na-tional grid.”

Although the Metix CHP system has not been adopted in South Africa to date, Schmale points out that a Turkey-based ferrochrome producer ordered the energy recovery solution. It will be connected to two of its semi-closed SAFs. “The system is expected to start up early in 2013 and will produce steam, which will be used in a steam turbine with an attached power generation unit to produce 5 MW of elec-trical energy. The client expects an amorti-sation period of less than three and a half years, while the energy recovery unit is ex-pected to save over 25 000 t of direct CO2

emissions yearly.”Looking to the future, Schmale is opti-

mistic that the Metix CHP system will add considerable value to the South African market in the long term. “We also plan to approach Eskom to present the features of the technology and discuss how it can help overcome the shortfall in electrical energy. We are hopeful that Eskom will support the introduction of the Metix energy re-covery system as part of its range of energy saving initiatives in the long-term future,” he concludes.

peand

h l

A large

coal-burning

electric power plant

(500 MW) emits about 45

kg of carbon dioxide every

second and an equivalent-

producing nuclear

fuelled plant emits

none.

Eneerrggy ffactss

LEFT Metix plans to generate power by using the offgas of such closed-type SAF with a process gas-fi red boiler combined

with a turbine and a generator unit

ABOVE The hot 650°C offgas of semi-closed-type SAF can be used for

energy recovery

D i d y o u k n o w ?


Launched in March 2011, 49M is an Eskom initiative endorsed by gov-ernment and business partners to encourage the South Africans to

embrace energy savings as a national culture. “Signing this important pledge is an en-

dorsement of our eff orts and commitment over more than a decade to improve the elec-trical energy effi ciency of our various oper-ations, and thus reduce consumption,” says Stephan Olivier, AfriSam’s CEO. “Between 2000 and 2011, AfriSam reduced specifi c electrical energy consumption by 18%.”

AfriSam has recorded several signifi cant milestones on this journey to date, including major equipment upgrades at its operations

to reduce electrical energy consumption. One of the these was the installation of an energy effi cient vertical roller mill at the company’s Roodepoort operation in 2008. Th is mill was commissioned at a 20% higher cost than con-ventional technology and has since achieved a 24% reduction in electrical energy con-sumption. Vertical roller mills are also being earmarked for installation at AfriSam’s pro-posed Saldanha and Coega facilities.

Olivier says the replacement of old drives with variable speed drives, wherever pos-sible, is an ongoing activity across all oper-ations. Th is initiative was introduced more than 10 years ago and has also contributed to improved energy effi ciencies. Th e company

has also implemented a production and maintenance tool at its Ulco facility in the Northern Cape to assist with load shifting, predominantly during peak demand periods. Th is has contributed signifi cantly to energy saving and will be implemented at the com-pany’s other operations.

Indirectly related to energy effi ciency is the use of mineral components that are by-prod-ucts of the energy generation and steel man-ufacturing processes to produce AfriSam’s Advanced Composite Cement products. In addition to r educing the CO2 footprint of the cement making process, this has also created a market for a product that may otherwise be sent to landfi ll as waste.

CEMENTING AN ENERGY COMMITTMENT

A first for 49MAfriSam has achieved another signifi cant milestone by becoming the fi rst construction materials company to sign the 49M pledge, signifying the company’s commitment to energy effi ciency.

AfriSam CEO Dr Stephan Olivier and Eskom CEO

Brian Dames

KEMIX (PTY) LTDTAKING METALLURGY TO NEW LEVELS

Kemix (Pty) Ltd is a South African based company that specializes in carbon adsorption technology and the supply of equipment utilised in both adsorption and elution circuits.

The Kemix suite of equipment includes the Pumpcell circuit, Interstage Screens, Agitators, Carbon Regeneration Kilns and Electrowinning Cells.

Kemix has developed the Pumpcell technology as a process route for Resin in Pulp (RIP) type applications. Evaluations into using Pumpcells and

RIP technology for the recovery of Gold, Nickel, Cobalt and Uranium have been performed.

The synergy that exists between Pumpcells and RIP technology has been established and has resulted in the selection for the Pumpcell technology as the RIP circuit at Kayelekera Uranium Mine in Malawi.

Kemix provides a service covering scoping, sizing and selecting process routes employing either carbon or ion exchange technology for metal recovery.

TEL: (+27 11) 466-2490 • FAX: (+27 11) 466-2190E-MAIL: [email protected] • WEB: www.kemix.com



While security of energy sup-ply is one of the mining’s in-dustry’s major development concerns, so is the need to

reduce its carbon footprint.

A changing landscapeTh e country’s landscape is on the brink of changing, however, as the Department of Energy’s (DOE) fi rst round of renewable energy projects – part of the Renewable En-ergy Independent Power Producer Procure-ment (REIPPP) programme – moves into construction, bringing with it a new busi-ness sector. Th e programme sees 28 projects move into construction phase for Round 1. Additional rounds will follow, which in total must deliver 3 725 MW of additional power to the country’s national grid. Th e DOE has

further announced an addition-al 3 200 MW of power will be made available as well.

One of the fi rst projects changing the Eastern Cape’s terrain is the R550 million Metrowind Van Stadens 27 MW wind farm. It achieved fi nancial close on 7 November 2012 and issued the ‘Notice to Proceed’ to Basil Read Matomo, Basil Read Group’s EPC company, on 16 November 2012. Con-struction commenced soon after. Th e pro-ject, scheduled to be ready for operation in February 2014, will generate approximately 80 000 MWh per year of electricity for a contract period of 20 years and off set the equivalent of 80 000 t of CO2 greenhouse gas emissions every year as well.

“Th is is a major mile-stone for us and marks

our intention and capabil-ity to become a fully estab-

lished player in the alternate energy space,” says Basil Read

Energy (BR Energy) director, Ian Curry. Th e energy-focused compa-

ny is a subsidiary of major engineering and construction fi rm Basil Read.

BR Energy’s focus is to develop, own and operate clean energy power generation assets over the long term, and is assured success thanks to its ability to leverage off its parent company’s balance sheet. The company owns a 33% stake in 3Ener-gy, a facilities management company that specialises in managing plants on behalf of owners.

GONE WITH THE WIND

Rest assured, renewables arriveThe future of Africa’s mining industry depends largely on the ability to secure

sufficient power. The construction of the first renewable energy projects is a

major milestone, providing long-term sustainability to the country’s smallest

and largest energy consumers, writes Laura Cornish.

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It’s

estimated that

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Th e company owns a 23% stake in the Metrowind project. Founding developers, Afri-Coast Engineers, a South African Con-sulting engineering fi rm, owns a 13% stake alongside Old Mutual Life Assurance Com-pany with a 34% stake.

A project for the community“We have made significant effort to ensure the project truly benefits surrounding com-munities, from a financial and sustainabil-ity point of view,” Curry continues. Black economic empowered (BEE) MetroWind Community Trust (MCT), which holds a 5% stake in the project, will act as the vehi-cle through which all social and economic development funds will be channelled.

Spilled Water Renewable Energy (SWRE), a 25% stakeholder, is a newly formed re-newable BEE energy company focused on establishing a diversifi ed portfolio of re-newable energy projects for the South Afri-ca and sub-Saharan regions. SWRE has ex-perience in consulting on, and securing and executing climate change (carbon credits) projects and renewable energy projects. It

has strategic relationships with numerous utilities and independent power producers internationally. MetroWind has further committed 1.5% of its annual revenue to so-cio-economic and enterprise development.

A world-class leading exampleThe total project cost of R550 million has been financed on a non-recourse basis, with Standard Bank of South Africa pro-viding all the debt.

“Our ownership and South African pro-ject contractors makes us a truly and proudly 100% South African operation, ca-pable of delivering projects to world-class standards. The DOE is doing an extremely good job ensuring its REIPP programme is delivered to the benefit of all South Afri-cans. These projects have been awarded based on a competitive bidding scheme, which is quite unique compared to other countries and continents. The consumer is protected and the renewable energy sector is forced to deliver competitive tariff rates that are rapidly approaching Eskom tar-iffs,” Curry explains.

The future for BR Energy and the potential for industry growth“While we were not successful in secur-ing any projects in the REIPP’s Round 2, we have re-engineered and are resub-mitting a substantially larger solar pho-tovoltaic (PV) project in Round 3,” Curry mentions. Submissions for the last round close in May 2013. “We are looking at building a R1.2 billion, 75 MW solar PV plant in the Beaufort West region. Th e company currently owns 26% stake in the project.

“Ultimately, we want to provide cost-eff ective power to the consumer

Did you know?

South Africa has to reduce its carbon footprint – 1 ℓ of water is consumed for every 1 kWh of electrical power produced from coal. Because the MetroWind project will deliver 80 million kWh of power a year, it is effectively saving 80 Mℓ of water per annum. Renewable energy will alleviate some of the burden on water supply issues. The projects will further displace 1 t of greenhouse gas emissions for every 1 MWh of power produced (in the South African context).

The fast solution, however, to South Africa’s growing energy crisis is energy efficiency. This is a changing mindset that can make a big difference.

and not overexpose ourselves to gov-ernment-funded initiatives. We are also looking beyond South Africa, where

TOP Foundation rings being transported by container crane upon arrival in

Port Elizabeth; MIDDLE Foundation rings being loaded on to tank; BOTTOM Vessel

Maersk Sebarok carrying foundation ring containers

BELOW Aerial view of Van Stadens wind farm site before construction


www.basilread.co.za

BR Energy is a unique entity that understands the magnitude of simultaneously harnessing the value of renewable and non-renewable energy to achieve the optimal energy mix. It is this unparalleled, hybrid approach to addressing our continent’s energy concerns that makes BR Energy, a leading private equity investment fi rm, dedicated to capitalising on investment opportunities.

T +27 11 418 6300 | E [email protected]

Another legacyfrom Basil Read.

diesel-generated power remains one of Africa’s largest costs, particularly in the mining industry.”

The challengesNo industry – new or old – is without challenges. Curry explains that every in-dividual solar panel comprising a solar park needs to be maintained on a regular basis to ensure it runs optimally.

Power storage is also not being considered suffi ciently in the country, but Curry believes there will be a natural progression towards

technologies already in existence. Th is not only addresses the problem, but will provide cost-eff ective solutions, particularly to large-scale industrial users.

Curry explains: “Th e industrial gas indus-try’s technology, used in the production of bulk industrial gases such as nitrogen, oxy-gen or argon, can be used to create energy by converting the natural state of air to liquid.” In this state, it can be stored in special stor-age tanks at approximately -196°C. When

power is required, liquid air is drawn from the tank and pumped to high pressure. Am-bient heat is applied to the liquid air via heat exchangers, resulting in a phase change from liquid air to a high-pressure gas that is used to drive a turbine and generator. During the power recovery, very cold gas is exhausted,

which is then recycled back into the liquefac-tion process, reducing the energy demands for producing liquid air and thereby increas-ing the overall round-trip effi ciency during any period of the day. In essence, it is very similar to a normal pump storage scheme.

BR Energy has entered into a joint ven-ture partnership with UK-based Highview Power, a developer of utility-scale energy storage and power systems to optimise en-ergy resources. Th e company is known for

“Metrowind is a major milestone for us and marks our intention and capability to become a fully established player in the alternate energy space.” Basil Read Energy (BR Energy) director, Ian Curry

its proprietary process uses cryogenic (liq-uefi ed) air or its principal component, liquid nitrogen, as the working fl uid and the media for storing and/or transporting energy. “Our partnership gives BR Energy the exclusive distribution rights to this technology in Af-rica,” Curry notes.

ABOVE The project is already providing sustainability opportunities in the region

Profile: energy efficiency & renewables


The energy industry has never been more central on South Africa’s stage. Fundamental shifts of own-ership, wealth, risk and commod-

ity price are being driven by the imbalance between global supply and demand. Amid this turbulent environment, new risks and opportunities emerge.

The global energy sector is well estab-lished with hundreds of wind and solar en-ergy parks providing thousands of mega-watts to large-scale industries and homes. The South African and African energy market started emerging over the past few years and is only recently starting to grow at a rapid pace.

The South African Department of En-ergy (DOE) tender for renewable energy independent power producer (REIPP) procurement is being staged over three

rounds. There is 3 725 MW on offer. Thereafter there is a rolling tender for a further 3 200 MW.

“The result of this alternative energy surge is a desperate requirement for local energy specialists, in all fields, includ-ing risk and advisory management,” says Marsh Energy’s senior vice president, Nicola Harris. “Our intention is to provide these skills and transfer them locally.” An international energy risk specialist, Harris relocated from Marsh in London to South Africa to drive the business’s local business

and has been based in the country for the past three years.

“International energy players are invest-ing in South Africa, but more important-ly, local players are investing in their own technology, which will boost the econo-my. This will see large industries become self-sufficient, reliable, more environ-ment-friendly and perhaps even cost suf-ficient,” Harris continues.

Solairedirect Technologies, for example, manufactures solar photovoltaic panels in South Africa. Not only is the company providing so- l a r panels for various solar parks and roof mounted projects in the country, but is currently export-ing 95% of its pro-duction overseas

– strongly supporting the South African economy from a new business sector.

Having worked with numerous renewable energy projects around the world, Harris says that South Africa is the ‘perfect’ coun-try for the technology. “It has fabulous weather, vast land space, and wind and solar parks will be located in rural areas and supply rural areas with electricity. Th is makes it ideal for the mining sector as well.”

The local energy industry is developing at different speeds and phases. As a result, Marsh Africa is working with a variety of

MANAGING CLEAN ENERGY RISKS

Marsh Africa flexes its muscleMarsh has a well-established international reputation advising companies on risk

management and insurance issues in the energy sector, which is a competitive

edge for local subsidiary Marsh Africa as the first round of renewable energy

projects moves beyond financial close and into execution, writes Laura Cornish.

“Of the 28 projects in Round 1, Marsh Africa has been appointed on 64% of the total projects (in terms of megawatt capacity), in the capacity of sponsor and/or lenders insurance advisor.” Marsh Energy senior vice president, Nicola Harris

Not only is theng so- l a r

solar parksd pro- jectsut-



different companies as they progress for-ward. “Because we are providing insurance advice across multiple platforms to engi-neering contractors, banks and owners, we are able to offer the industry a 360 degree compass of expertise and knowledge. We also assist with contractual reviews and loan agreements as well as ensure insur-ance requirements are balanced and fair, and applicable for the duration of the con-tract, which can be 20-plus years.”

Worldwide, Marsh’s 300 professionals are primarily organised around two speciality

product lines: upstream energy and down-stream energy, offering a deep under-standing of industry issues within these segments. This wealth of expert knowl-edge is augmented by market leading risk engineering, project risk management and claims services.

Th e combination of its widespread inter-national experience and knowledge, coupled

ABOVE AND BELOW Africa is the perfect country for renewable energy technology. It has fabulous weather, vast land space, and wind and solar parks will be located in rural

areas and supply rural areas with electricity. This makes it ideal for the mining sector


MBE Minerals SA Pty LimitedFormerly KHD Humboldt Wedag SA Pty Limited

36 Wankel Street Jet Park, Boksburg

+27 11 397 4660 F +27 11 397 4411 [email protected]

www.mcnallybharat.com

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Produced by Coralynne & Associates +27 (011) 422 1949

Equipment supplied by MBE Minerals SA has been

operational in iron ore applications in southern Africa

for the past fifteen years.

MBE Minerals SA’s service offering includes feasibility studies,

laboratory and pilot-scale test work, process and equipment

design and manufacture, erection and commissioning of equipment

as well as after sales and service support.

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Screens including Resonance Screens, Linear Motion

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Magnetic Separation (WHIMS, MIMS and LIMS)

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with the company’s already well-established African footprint, is already ensuring the company’s local success, which it intends to extend across the SADC region.

“Of the 28 projects in Round 1 (fi nancial close on 15 November 2012), Marsh Af-rica has been appointed on 64% of the total projects (in terms of megawatt capacity),

in the capacity of sponsor and/or lenders insurance advisor.”

BioThermEnergy is one of Marsh Africa’s IPP clients and was successful in securing three wind projects in Round 1, which will generate up to 221 MW of power at full ca-pacity. “BioTherm Energy engaged Marsh as our sponsor insurance advisor from

pre-bid stage through to financial close on our three Round 1 renewable energy pro-jects under the REIPP. We found Marsh to be pre-emptive, engaging and prepared to go the extra mile during each stage of the process in order to meet all of our project insurance requirements,” states Andre Dip-penaar, CFO at BioTherm Energy.

Thanks to Harris and her Cape Town-based team, Marsh Africa has already established a solid understanding of the Eskom power purchase agreement require-ments. “To be successful in the local ener-gy space, we need to understand Eskom’s terms and conditions, and work closely alongside it, especially when advising our clients.” Considering a large portion of the Round 1 energy projects are located in the Western Cape region, the Marsh Africa en-ergy team is ideally located to work closely with its clients as the projects develop.

LEFT Of the 28 projects in Round 1, Marsh Africa has been appointed on 64%

of the total projects (in terms of megawatt capacity), in the capacity of sponsor and/

or lenders insurance advisor



M ining companies, particular-ly in Africa, are finding that conventional sources of en-ergy and power are not read-

ily available or are becoming increasingly expensive, while insurers globally are con-cerned about the frequency and severity of natural catastrophes arising from climate change brought about by the combustion of fossil fuels.

The traditional relationship between mining companies and insurers was fo-cused on the effective management and transfer of risk by mining companies to insurers such as Emerald Risk Transfer, which writes a substantial mining book on behalf of Santam, the only S&P-rated in-surer in South Africa.

Santam’s own commitment to sustain-ability was recently showcased by the Eden Project, which won the 2012 Climate Change Leadership Award in the financial services sector. The project, conducted in the Eden District Municipality in the Western Cape, studied the effects of cli-mate change-related risks and the ability of insurance to adapt. In future, the adop-tion of energy efficiency and harnessing of alternative and renewable energies by

MINES AND THEIR INSURERS

Embracing a new energy landscapeMining companies and insurers have a common goal in ensuring that energy

efficiency and alternative energies feature highly on their respective agendas –

although not necessarily for the same reasons.

mining companies should offer a greater incentive for insurers to participate on such mining risks.

Emerald Risk Transfer recognises that sustainability, which includes the use of alternative and renewable energies, is an increasingly important business imper-ative and in October 2011 established a

Sustainability Committee to monitor, ad-vise and make recommendations on any relevant issues that may have an impact on the company, its stakeholders and clients.

It is encouraging to learn that a number of mining companies, even those which are not directly involved in the energy supply chain, have taken up the challenge of both energy efficiency and alternative energy.

Harmony Gold is planning a solar pow-er plant at Mafikeng in North West with an initial size of 18 MW, which could

eventually more than double in capaci-ty to 40 MW by 2014. Harmony is also looking to possibly erect a biofuel plant at Virginia in the Free State, for which it will use growing crops like sugar beet. The Gold Fields methane capture project at its Beatrix mine in Welkom has been regis-tered as a clean development mechanism

project, allowing the company to earn carbon credits.

Coal producer Exxaro recently com-pleted an agreement with Tata Power of India to establish a stand-alone energy supply company called CENNergy. This company will focus on the development of cleaner production and renewal energy projects. Tronox, in which Exxaro holds a substantial share, also plans to construct a 14 MW cogeneration power station at Namakwa Sands.

It is encouraging to learn that a number of mining companies, even those which are not directly involved in the energy supply chain, have taken up the challenge of both energy efficiency and alternative energy


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Emerald is currently the largest Corporate Property and affiliated Engineering Underwriter in South Africa, and underwrites business throughout the African Continent.

The solution orientated approach of the Emerald team to create sustainable, quality products is part of their culture. This flexible approach, coupled with the support of their excellent Reinsurer panel, allows Emerald to be truly innovative.

The aim of the company is not to be the cheapest by cutting corners, but rather to be the best by offering expertise and skill.

For more information on how Emeraldcan assist your corporate clients:T +27 11 658 8200W www.emeraldsa.co.za E [email protected]

Samancor has been looking at investing R575 million in generating power from the waste gas emitted by closed furnaces at its ferrometals operations in Middelburg, potentially generating 45 MW of electric-ity to be fed back into the group’s smelt-ers to reduce its overall energy use. Also, a 30 MW waste heat recovery and electrical power generation project is well advanced at Samancor’s Tubatse operation.

South African mining companies focused on alternative and renewable sources of en-ergy also contribute to alleviating the pres-sure on the Eskom supply while achieving savings over and above the 10% agreed to as an industry standard.

Within SADC, African Barrick Gold (ABG) in Tanzania established a jatropha biofu-el project since 2007. More than 200 000 Japtopha curcas plants have been planted over 121 ha. By the end of 2016, 5.5 mil-lion plants will cover more than 1 200 ha. In addition, 86% of total energy usage at ABG’s operations is sourced largely from renewable hydroelectric power, the North Mara Grid connection project is a key ex-ample of this.

Africa also has substantial renewable energy potential and mining companies entering various countries should consider tapping into this and provide their own re-newable power or enter into partnerships to do so as a social development imperative.

With vast perennial rivers, central Africa has a huge potential for hydroelectric en-ergy, but only a fraction is harnessed. Th e total installed hydroelectric capacity on the continent is 21 000 MW, 90% of which is concentrated in eight countries (the Demo-cratic Republic of the Congo, Egypt, Gabon, Ethiopia, Nigeria, Zambia, Madagascar and Mozambique).

The highest installed capacity is found in the DRC, although both the hydroelectric power generation and the electricity sup-ply grid require substantial investment to achieve reliable and stable supply. None-theless, the potential for exploitable hydropower in Africa is vast, with indications that Inga III in the DRC could provide 40 000 MW of stable baseload power – virtually the capac-ity of the entire fleet of Eskom coal-fired power stations.

In addition, most African countries re-ceive an average of 325 days of bright sun-light annually, giving solar power the poten-tial to bring energy to virtually any location without the need for expensive large-scale grid level infrastructural developments.

From an insurance point of view, mining companies that embrace energy efficiency and the use of own alternative and renew-able energies should benefit from benefi-cial ratings and competitive premiums, not only because their own source of renewable power brings reliability to their supply, but also because these companies achieve the common objective of sustainability. Final-ly, insurers that are also investors of funds in listed mining companies should focus on and select those miners that achieve sustainability through harnessing alterna-tive energies.

Author: Hans Schollenberger, portfolio executive

Co-authors: Linda Dayanand, claims exectutive; Mary Driscoll, portfolio executive, and Anand Manilal, senior risk manager.


Profile: Engineering and construction

BVi Group’s (BVi) growth since its inception in 1967 has been a remarkable one. The compa-ny was established as a multi-

disciplinary engineering firm offering ‘traditional’ consulting engineering ser-vices in the fields of civil, structural, electrical and mechanical engineering. To-day, the Level 2 BEE company has a 47% black ownership status and is 300 heads strong. Thanks to the success achieved at Kolomela, it is now capable of offering engineering, procurement and construc-tion management (EPCM) services across its respective infrastructure fields. “This one single, but extremely significant pro-ject has provided us with the platform to further develop and continue with our

newly established strategy: to become recognised as a true expert infrastructure EPCM contractor in the mining and indus-trial sectors,” explains Hennie Maas, BVi director of mining and EPCM projects.

Recent mining projects:Kolomela“Our original contract at Kolomela includ-ed providing conventional consulting engi-neering skills, which we executed together with the owner’s team, but our contract evolved and we became further responsible for the project’s infrastructure EPCM ser-vices,” says Maas.

BVi was responsible for all bulk earth-works – moving in excess of 1.5 million cubic metres, dewatering the mining areas

at a rate of 2 400 m³/h, prefabricated elec-trical substations (developed off-site in conjunction with Kumba), bulk fuel instal-lation of 1.2 Mℓ of diesel and oils, heavy mining equipment workshops and all ad-ministrative buildings. “We were also re-sponsible for a major engineering portion of the company’s housing project, with some 700 housing units in total. We also created dedicated procurement, health and safety, and planning departments to oversee and properly manage the work-load. Although we provided safety re-sources to the project, we did not manage the safety aspects, but formed part of the

BVI GROUP’S JOURNEY INTO AFRICA

Driven by mining infrastructure EPCMBorn a small multidisciplinary consulting engineering firm, BVi Group’s successful

completion of its contract at Kumba Iron Ore’s Kolomela mine has enabled it

to realise its strategic growth path – and emerge as a significant infrastructure

EPCM player, writes Laura Cornish.

BELOW Clearing of site for a road –Mayoko iron ore project


overall team that helped Kolomela achieve its 15 million lost-time-injury-free hours.”

Maas adds that one of the company’s greatest challenges was facilitating, man-aging and interfacing between at least 30 different contractors on site. “Inter-face and coordination management was a huge challenge and one of the major focus areas from a construction management point of view, as it is not easy to keep up with the required progress while interfac-ing between disciplines and working in a safe environment.”

Sishen ramp-up programmeBVi also played a signifi cant role in the de-velopment of a new temporary bucket and bowl workshop at Kumba Iron Ore’s Sishen mine in the Northern Cape, which will see signifi cant growth over the next eight years. Th is requires the injection of cash into the mine’s on-site infrastructure to support its development.

Th e growth of the current 12 x 4 km Sish-en opencast pit necessitates additional haul trucks for overburden waste handling. With this in mind, the establishment of the new bucket and bowl workshop facility, complet-ed in July 2012, caters to the maintenance and service requirements of the mine’s ex-panded haul truck fl eet’s buckets and bowls. BVi Group was appointed as the design sub-contractor by overall project engineer TWP. Awarded in April 2011, the project took 14 months to complete.

Mayoko iron ore contractBVi was most recently appointed the in-frastructure contract for all infrastructure development at Exxaro’s Mayoko iron ore project in the Republic of the Congo (Congo-Brazzaville). Th is appointment

comprises all infrastructure studies and detailed design of the plant infrastructure, roads, construction camp, new personnel village, etc. Construction will commence in January 2013. “BVi was selected by Exxaro for this project based on its excellent min-ing infrastructure experience and the pro-fessional manner in which BVi projects are executed,” Maas notes.

In addition to mining

In terms of BVi’s traditional spectrum of engineering services, it currently has a reliable footprint across the country, enabling it to service almost all the districts and local councils countrywide. The company intends to increase its commitment and focus on local government by making use of an innovative project approach, including project finance models, public-private partnerships and other asset management options. It is also constantly improving its green building department as well as its renewable energy delivery resources. BVi believes the future lies in renewable energy and is positioning itself accordingly. The company is further expanding across borders to service its fellow SADC members with much needed skills and infrastructure requirements. With regards to South Africa specifically, the company believes it has a significant role to play in assisting government in reaching its service delivery and aspirations.

The project is located in the south-west corner of the Republic of the Congo and is approximately 300 km north-east of the port city of Pointe-Noire. The area already has existing rail infrastructure, which is to be upgraded and a new port is planned for development. The project has a 121 Mt re-source, but is targeted to increase this to more than 430 Mt. Long-term upside po-tential is more than two billion tonnes.

African strategy“Thanks to our growing track record, we now truly know what we can achieve and we have our sights set on attaining EPCM work in the rest of Africa next,” Maas out-lines. “We may have worked in conjunction with the owners’ team at Kolomela, but are ready to handle entire projects in-house.” The African continent is a hive of activity, particularly in the mining sector at pres-ent, but only those who have the cash to develop the necessary infrastructure will ‘get off the ground’.” For this reason, BVi believes its success will lead directly off the back of mining projects, as they comprise and form part of the original team respon-sible for a mining project’s development, from conception and feasibility onwards.

The company is looking to establish its presence in specifically in Namibia, Ango-la, the DRC, Mozambique, Lesotho, Swazi-land and Malawi.

ABOVE Heavy mining equipment workshopBELOW BVi played a signifi cant role in the

development of a new temporary bucket and bowl workshop at Kumba Iron Ore’s

Sishen mine



ONE SMALL STEP FOR TWP

One giant leap for international mining

Major engineering house and underground mine development specialist

TWP Holdings is moving one step closer to achieving one of its ultimate

goals: to partner with the world’s major mining clients, CEO Digby Glover

tells Laura Cornish.

Engineering and construction



One of the growing trends in the mining industry is seeing major mining houses looking to secure partnerships with

EPCM service providers that are able to offer their clients significant breadth and depth of skills and experience to get the job done and back it up afterwards,” says Glover.

While TWPs’ effort to secure such partnerships has been a strategic focus

for several years already, its imminent purchase by one of the world’s largest

engineering companies, WorleyParsons, will further enhance its capability to offer the international mining industry the full suite of EPCM partnership advantages.

TWP’s tier one partnership agreement with Anglo American, aimed at transform-ing its procurement and supply chain op-erations, has been very successful since its launch in March 2011. It represents a model the company wants to replicate. The tier 1 agreement involves supplying

the highest level of EPCM services for sig-nificant mining projects and has allowed strong partnerships to develop in a far more effective way than through tradi-tional ‘per-contract’ agreements. “As a re-sult, we have greater insight into Anglo’s long-term project pipeline, affording it

The acquisition announcement

On 23 October 2012, Basil Read announced it had entered into an agreement with WorleyParsons whereby WorleyParsons RSA Group, a wholly owned subsidiary of WorleyParsons, will acquire the entire issued share capital of TWP for a cash consideration of R900 million.

The acquisition of TWP excludes Basil Read Matomo Projects, TWP Investments and LYT Architecture (formerly TPS.P Architects). The excluded companies will continue to operate autonomously and as wholly owned subsidiaries of Basil Read. The transaction will be effective from January 2013.

The tier 1 agreement involves supplying the highest level of EPCM services for significant mining projects

LEFT Impala Platinum 17 ShaftABOVE TWP’s expertise in shaft sinking

EPCM project work is extensiveBELOW Aerial view of 17 Shaft



“By potentially being bought by WorleyParsons, we leapfrog into the international mining industry space. It gives us an immediate global footprint, scale and the ability to inject our specialist mining skills into a much bigger market space.” Digby Glover

sufficient time to allocate skilled resources to these projects,” Glover outlines.

As a result, TWP’s overall workload with Anglo American has increased significant-ly over the past 18 months – principally in coal and iron ore. “We are able to un-derstand their business needs, particu-larly upfront during the pre-feasibility study stage.”

There is a need to develop significant project pipelines in a skills and cash con-strained macro environment, for both the local and global mining industry. “Partner-ship alliances enable us to plan our work-load and improve our service offering and costs, thanks to the continuity of work, and also provide our clients with the op-portunity to understand the internal work-ings of our business and understand how we operate.”

WorleyParsons provides TWP with an immediate large-scale infrastructure

portfolio (ports, rail, etc.). This is a signif-icant advantage considering the majority of new mining projects in Africa are not viable without associated infrastructure, including housing, roads and bridges. “As a WorleyParsons’ company, we will have the size and presence to best compete for the largest and most prestigious global min-ing jobs. While we have been aggressively growing and diversifying our offering and geographic footprint, the acquisition will kick this drive up a gear. The merger will add TWP Projects’ 1 000 staff complement to WorleyParson’s 42 000 global headcount and will increase its mining-related busi-ness, which currently accounts for about 12% of its work portfolio. “From Worley-Parsons’ international platform, we can in-ject our deep level mining skills across the globe in the near future.”

A year in reviewWhile the Southern African industry has been operating in a cash constrained space, TWP’s 2012 year has been a good one. With a number of projects in execution stage and numerous more in studies, 2013 looks set to remain positive. The company has seven shaft sinking projects either in execution phase or due to move into exe-cution shortly. These include Wesizwe’s Bakubung PGM project, Royal Bafokeng Platinum’s Stydrift project, Impala Plati-num’s 17 and 20 Shaft projects, two gold projects in the Democratic Republic of the Congo (DRC), an underground diamond project and a new manganese project in the Northern Cape.

Th e company is also under way with a few process plant feasibility studies currently, which includes a new refi nery in the DRC.

ABOVE TWP is the EPCM contractor for Royal Bafokeng Platinum’s Styldrift project



AIMING HIGH

Group Five cements its African position

Group Five’s largest business cluster, construction, is driven by a single strategic

goal: to position itself as the mining construction partner of choice for all major

and junior mining companies across Africa, writes Laura Cornish.

The BEE Level 2 rated company has the ability to extract value from the full infrastructure life cycle, with the capability to deliver over the

whole cycle, from development and invest-ing to building, operating and servicing. Cur-rently 43% of the Group Five construction order book is multidisciplinary work. Th is highlights the group’s ability to delivering a project from start to fi nish, across its entire life cycle, which provides multiple revenues and a blend of margins.

While the construction cluster is one of fi ve within the Group Five group, compris-ing both the civil engineering and projects divisions, the overriding growth objectives are aligned.

A single, aligned growth strategy“We may already be the largest structural, mechanical, electrical and piping (SMEP) EPC contractor in Africa, picking up between 60% and 80% of our targeted new-builds in Africa, but we remain driven to have the min-ing industry recognise us as its preferential

The Benga coal handling and preparation plant in Mozambique



contractor of choice,” says Group Five Pro-jects contracts director, Tony de la Motte.

Group Five’s civil engineering contracts directors, Nelson Alfaiate and Gerry Henny, agree. “A signifi cant portion of our current and historical market share has been in the construction of new and the upgrading of existing mines and mining infrastructure across the full spectrum of resources. Our strategy is to position the group as the min-ing construction partner of choice. We have a strong track record in the mining sector and are well positioned to continue serving this market eff ectively,” Henny outlines.

Alfaiate continues: “Our focus lies predom-inantly on the emerging infrastructure and commodities growth in Africa, with a grow-ing pipeline in road, rail, ports and power. We have a proven track record of delivering on mining construction in very remote lo-cations in Africa, which involves enormous logistical and people management, some-thing we have done successfully for an ex-tended time. It requires an understanding of timelines and planning adequately to avoid

delays, managing various interfaces and problem solving on a daily basis.”

Group Five has an extensive African foot-print and attributes its growing success to its ability to secure repeat business with both mining houses and all major EPC(M) clients. “We off er solid working experience across all African countries, with locally based ex-patriates who understand each country’s cultural, legislative and compliance require-ments and know how to accommodate them accordingly. Th is has ensured our solid track

record for building to clients’ specifi cations and consistently meeting the required time schedule,” says Group Five Project estimat-ing manager Kevin Burnard.

Group Five’s Projects division has 16 years of working experience in Ghana, 14 in Mo-zambique, seven years in Burkina Faso and the DRC, and fi ve in Tanzania.

Strong commitment to corporate social initiatives Group Five commits 1% of its African project value to corporate social initiatives, which indicates its commitment to sustainability and local community support. More recently, this includes maternity clinics, orphanages and schools. “We have also started estab-lishing training schools, with facilities al-ready operating in Ghana and Burkina Faso,” says Group Five contracts director Donovan

Carroll. “We are currently building one of the fi rst practical training schools in the DRC.”

Carl Phenix, another Group Five contracts director, adds that the training facilities are fully accredited and provide training from arti-san level up to management supervisory level.

Its wholly owned subsidiary Everite Build-ing Products, which pioneered the creation of Advanced Building Technology (ABT) fi ve years ago, is providing a fast and effi cient alternative to traditional building practices – ideal for Africa’s infrastructure requirements in remote African locations. ABT involves building with a lightweight steel frame clad with Everite Fibre Cement cladding and lined

with Everite fl at sheets. A variety of external and internal fi nishes can be applied depend-ing on a client’s specifi cation.

Fast to erect, stable and robust buildings (such as offi ces, construction camps, kitch-ens, ablutions, labs, guard houses) are the ideal solution for mining houses looking to establish the necessary on- and off -site

“We remain driven to have the mining industry recognise us as its preferential contractor of choice.” - Tony de la Motte

The differentiating factor

One of the group’s differentiators in the market is that it has a concessions and manufacturing business alongside its core construction division, which ensures diver-sification. The annuity-type businesses of investments and concessions, and manufac-turing are particularly relevant against vola-tile construction markets. The concessions business is well positioned for the current and new markets in power and regional transport infrastructure. Its turnkey or EPC delivery capability is also an area of growth.

Anvil’s Kinsevere mine project, stage 2 and 3, in the DRC

Grootegeluk Medupi Expansion project – Lephalale, South Africa



infrastructure required to see the mine fully functional.

Everite is introducing a new product to the market that targets the quick erection of buildings in remote areas. See the story on page 90 for further information on ABT and Flatts.

Striving for excellent safetyGroup Five establishes a non-negotiable ze-ro-harm safety culture on every project. Safe-ty awareness, training and risk identifi cation are at the forefront of its entire project safety plan. Due to the diverse nature of the health and safety of people, the environment and host communities across Africa, unique strategies and leadership to ensure adher-ence and compliance are essential. Group Five has had no fatalities in the last 10 years and saw an improvement in its disabling

injury frequency rate from 0.54 to 0.21. Th e goal, however, is zero injuries or fatalities.

Th e company has achieved numerous safe-ty awards, including:• Rio Tinto ilmenite project in Madagascar –

Safety excellence award• BHP Billiton’s DMO coal project –

BHP Billiton Energy Coal South Africa (BECSA) achievement

• Anglo American Platinum – safety award for 2 million injury-free man hours

• Maandagshoek mine – Safety award for 20 000 lost-time injury-free shifts

• Central Ashanti Gold – 1 million lost-time injury-free shifts

Group Five Projects’ current and recently completed work portfolio“While the countries we are currently work-ing in are opening up extensively, we are

constantly looking to expand our reach and footprint even further. Th e market is very buoyant and we are actively pursuing pro-jects in Tanzania, Kenya, Ghana, Burkina Faso, the DRC, the Ivory Coast, Mozam-bique, Namibia and Guinea,” De la Motte and Carroll point out.

In addition to having worked on eight ma-jor copper and cobalt projects in the DRC’s Katanga province alone, the division is un-der way with the entire SMEIP contract for the Randgold Resources/AngloGold Ashan-ti jointly owned Kibali gold project, which will be one of the largest gold operations in Africa.

“We are working alongside DRA for this project, following the very successful work-ing relationship we established with the company for Perseus Mining’s Edikan gold project in Ghana. Th is alone is proof of our successful ability to secure repeat business with clients.

Th e division has an additional SMEIP contract with Newmont Mining’s Aykem gold project in Ghana, SMPP contracts with Blackthorn Resources’ Perkoa Zinc project in Burkina Faso, African Barrick Gold’s North Mara crusher in Tanzania and Buswagi mine in Geita, as well as its second coal plant in two years for Jindal Africa in Mozambique.

Th e company is also extremely proud of its contract with Exxaro’s Grootegeluk Medupi Expansion Project (GMEP), which will supply Medupi with a dedicated coal stream of 14.6 Mtpa of coal for at least 40 years. “We were awarded the fabrication, supply, installation and commissioning of the structural steel components, free issued mechanical equipment and components, as well as all piping for the run-of-mine (ROM)

BELOW Tonkolili stage 1B project - Sierra Leone

ABOVE Benga CHPP Project, Mozambique RIGHT Kipoi copper concentrator, DRC


feed conveyors from inside the pit to the ROM bunkers, and from the ROM bunker to the reclaim conveyors. Th e discard bun-ker and its feed conveyors, as well as the two reclaim conveyors and transfer areas, also formed part of the scope of work,” says Group Five projects construction director Chris Willemse.

Group Five Civil Engineering’s current and recently completed work portfolio“We have tendered on numerous mining projects, with many in the pipeline await-ing award,” says Henny. The following projects are currently in execution: a cop-per project for ENRC’s Boss Mining in the DRC, Kibali gold mine, the Mongbwalu

gold project in the DRC for Anglo Gold Ashanti, and the Kalagadi manganese pro-ject for Kalahari Resources.

Completed flagship projects include First Quantum’s Frontier copper project and Kansanshi copper mine in Zambia, and African Barrick Gold’s Lumwana mine in Zambia.

1 9 7 4 - 2 0 1 2

Years as a listed entity



The biggest challenge of building construction in Africa is the logistics in

getting products to sites easily and safely – especially in remote regions. The

cost of transport is often higher than the cost of the material, meaning the

number of square metres of finished building per truck/container becomes

the ultimate measure.

G roup Five manufacturing busi-ness unit Everite Buildings Products not only pioneered the division Advanced Build-

ing Technologies (ABT), which provides solutions to such typical construction chal-lenges, but has more recently successfully launched it into the mining industry.

The majority of new mining projects in Africa are only viable if mining companies

are able to inject additional capital and investment into necessary infrastructure, which in remote regions includes build-ing facilities, from housing and offices to change houses, as well as medical facilities and security offices. In the mining indus-try in particular, the need to erect such fa-cilities quickly is also equally as important.

ABT provides a fast and efficient alter-native to traditional building practices

without compromising on the quality of product being constructed on site. It uses alternative lightweight and durable build-ing components from the Everite product stable (including its Nutec fibre cement flat sheets, walls, ceilings, roofs, piping and building columns) to construct a varie-ty of ‘fit-for-purpose’ buildings, using low-skilled labour, yet at a much higher speed of construction than its conventionally constructed competitors.

Nutec Flat Sheets are manufactured from a combination of Portland cement, silica and organic fibres, and do not contain any asbestos fibres. These materials have con-siderable strength and do not deteriorate

Building in a flashADVANCED BUILDING TECHNOLOGIES

LEFT Due to the lightweight nature of the material used, the entire building

structure, all fi xtures and accessories are easily containerised to ensure safe transit

to the building sites anywhere in the world. All furniture and fi ttings are also

supplied if required – a complete building solution in-a-box

BELOW An entire camp can be built without the need for any potable water for the construction process. A completely dry

build without any curing times. The camp can be built and occupied in a quarter of

the time of a conventionally built camp



The foundations of the buildings can either be concrete or suspended fl oor

slabs, depending on the availability of raw materials or site conditions. The suspended

fl oor alternative shown here allows for ventilation under the slab and a clear path

for water fl ow in high precipitation areas

All items are accounted for in their specifi c position in the building envelope, which lends itself to a very clean building site,

with little to no waste left over to dispose of after the contract. Pictured above is one building in progress with the truss starting

to be erected on the back half of the building while the next fl oor slab is being

assembled adjacent to it

Covered walkways can be included in the design. High-quality exterior doors and

aluminium windows with mosquito netting sliders are provided. Additional netting

screen doors can be fi tted if required. The Nutec Flat Sheet fi bre cement wall panels

exhibit enhanced water resistant properties when painted and offer excellent insulation

properties from the encapsulated expanded polystyrene core material

with age. They are unaffected by moisture, therefore ideal for internal and external use in almost any application. These fac-tors facilitate easy handling and erection, and are major benefits on projects where low mass construction is an important fac-tor, such as on uneven terrain where ele-vated light weight suspended floors can be used. It is non-combustible and provides perfect protection against flying sparks and flame spread. Being cementitious, it is corrosion-resistant and UV stable. The flat sheets are manufactured to the highest in-ternational quality standards and compli-ance is ensured through strict adherence to ISO standards. It is the ideal cladding for the ABT walling system and in combina-tion with the engineered light gauge steel frame and EPS insulation core, creates a durable exterior building product.

Although the walls are panelised and modular, the combination of these panels allows for design flexibility, with very few limitations in dimensional requirements of the building. Whether it is for accommoda-tion units, offices, bathroom facilities, rec-reation, kitchen or dining facilities, ABT is able to meet the needs of each individual building design.

“ABT structures are also superior in terms of thermal insulation and overall comfort, and are more environment-friendly in comparison to conventionally constructed

buildings,” says Andrew de Klerk, ABT technical manager.

The best way to demonstrate the ben-efits of a modular panelised system is to show the actual product on the ground. When Group Five Projects was appointed to construct a mining camp in Lubum-bashi, in the southern region of the Dem-ocratic Republic of the Congo, the com-pany selected ABT to construct all of the camp buildings.

BELOW Finishing is controlled by the client to align with the allocated budget

Another product edition to the Everite product stable is Flatts – a conventional 20 ft container in which three complete thermally insulated buildings are neatly folded. Each building has a 24 m2 footprint, with a total building space of 72 m².

The container is included in the price and remains the property of the purchaser, adding another 14 m² that can be used for storage.

Flatts is ideal when rapid deployment is required and takes only two hours per building to erect. Like ABT, it is ideally suited to remote sites in Africa. It has

been approved by the US Military and, through Group Five, Everite is the licensee for sub-Saharan Africa. The self-contained system can be stored indefinitely in the open. The buildings can also be folded and reloaded within four hours with no damage or loss of small parts as per normal flat pack systems.

The combined effort of ABT and Everite Fibre Cement building products demonstrates the seamless integration of Everite’s Nutec Flat Sheets as a wall cladding used in conjunction with the ABT lightweight steel frame building system by Group Five ABT.

FLATTS



O ur rapidly growing gold port-folio may be one of the prima-ry reasons our growth curve has and continues to climb.

Coupled with our entire metallurgical and engineering project portfolio spread across multiple mineral sectors, I believe we are the most diversified engineering house on the African market, with be-tween seven and 10 projects in execution at any given stage,” says Bennett.

The AIM-listed company’s order book is about US$750 million (R6.5 billion), which only comprises projects in exe-cution. In addition to its gold portfolio, MDM engineering is actively working on

two local manganese projects in South Af-rica, a first-of-its-kind platinum/chromite project in the country, a local phosphate project and a major copper project in the Democratic Republic of the Congo (DRC).

“We have a further US$550 million in project value in the front end engineer-ing and design project phases, specifi-cally for gold and copper, and another US$1.5 billion in feasibility study work,” Bennett continues.

“Ever since the original MDM was estab-lished, our name has always been synony-mous with gold. Many of our current team members today have delivered more than 35 gold processing plants over the decades.

One only has to look at our current gold project pipeline in particular to see we are resuming our position as leading gold pro-cessing company on the continent.”

And its strategy could not have been bet-ter timed considering the positive outlook for the gold sector, which is flourishing in the face of a struggling economy. “As our headcount increases further, estimated to increase by between 100 and 120 peo-ple in 2013, so too will our head office floor space.”

The company is currently working on two major gold EPCM execution projects:

GOLD, GLORIOUS GOLD

Decades of experience deliversMDM Engineering’s drive to regain its position as the premium gold processing

specialists in Africa is gaining momentum as the company’s gold project

portfolio grows bigger, executive director George Bennett tells Laura Cornish.

BELOW Underground at Bulyunhulu


African Barrick Gold’s Bulyanhulu gold tailings retreatment project in Tanza-nia and Canadian gold company Banro’s Namoya heap leach project in the DRC.

The Namoya property lies at the south-ern end of the Twangiza-Namoya gold belt in Maniema province and is scheduled to start producing gold in 2013. It is ex-pected to deliver an average production of 124 053 ozpa of gold over a seven-year mine life. “We are also assisting Banro with a possible expansion at its first op-erational gold mine, Twangiza, in the DRC as well.”

MDM’s contract for African Barrick Gold includes the construction of a new 2 Mtpa carbon-in-leach circuit at Bulyanhulu’s process plant to process both historic tail-ings from the tailings storage facility and current tailings from the flotation circuit. The project is due to be completed in 2014.

In addition to the front end engineering work that MDM is currently under way with for a gold project in Ghana, it has a vast amount of gold study work. “Consid-ering our conversion from study phase to execution is more than 90%, our working

project pipeline is secure well into the fu-ture,” Bennett adds.

Projects in bankable, definitive and pre-feasibility studies

• a bankable feasibility study for a 600 000 tpa process plant at Vantage Gold Field’s Barbrook operation

• a pre-feasibility study for a 500 000 tpa process plant at Delta Gold Zimbabwe’s Eureka gold mine

• a scoping study for a 42.8 Mtpa gold and uranium tailings reprocessing plant at Synergy (a Gold Fields and Gold One International joint venture); the pre-feasibility study is due to commence in the first quarter of 2013

• a bankable feasibility study for a 2.4 Mtpa process plant at Archean Gold’s Tafrent gold operation in Morocco

• a definitive feasibility study and scoping study for a debottlenecking and expansion project for Golden Star Resources’ Wassa gold mine in Ghana

• a pre-feasibility study for GoGold’s Parral tailings project in Mexico

• a definitive feasibility study for Witwatersrand Consolidated Gold Resources’ Debron Merriespruit South project.

ABOVE An aerial view of African Barrick Gold’s Bulyunhulu gold operation

BELOW The headgear at Bulyunhulu at twilight



P rior to its merger with SMEC in the middle of 2012, Vela VKE had not seen significant busi-ness generated through mining-

related project work. This, however, is in the process of changing. “We are under way with the establishment of a global, highly qualified mining division that will offer the industry a niche service and skills set that fills a gap in the sector,” says Brits.

Brits joined the company in June 2012 and is responsible for setting up the compa-ny’s African project management and own-ers’ representative team capabilities within the new division. He is a civil engineer and project manager by profession, and was for-merly the head of projects at Kumba Iron Ore’s Sishen mine in the Northern Cape.

“An analysis of our personnel involved in mining projects showed that SMEC Group has a large number of employees worldwide who have specifi c operational mining pro-ductivity, infrastructural design and project management experience in the internation-al mining sector, and we aim to consolidate and knowledge share these skills to provide a highly specialised and effi cient service to our clients,” says SMEC Mining, Oil & Gas function head, Dave Gertzen.

The new division will also incorporate GMC Global, which SMEC acquired in 2011. GMC Global was established in 2001 and provides support and guidance to all levels of a mining client’s organisation, to optimise maintenance and supply chain in-tegration management performance.

SMEC Mining, Oil & Gas will comprise the following business units:• GMC Global • Africa Mining Development – Brits’ busi-

ness unit• Australia/Asia Mining Development –

social and environmental impact and performance studies and implementation

• Oil and gas.SMEC Mining, Oil & Gas capabilities include:• operational improvements and cost

control• optimal mining infrastructure design• mining risk management advice• mining technology and process advice• project management and owner’s repre-

sentative services (Brits’ focus)

Engineering consulting firm SMEC South Africa (part of the Australia-based

global consultancy SMEC Group) could see its revenue double in the next three

to five years thanks to the introduction of its Mining, Oil & Gas division, Gerrit

Brits, SMEC Mining, Oil & Gas divisional manager, tells Laura Cornish.

MINING, OIL & GAS

SMEC’s new global division

• social performance advice.“In addition to the high levels of consul-tancy and advisory skills provided by GMC Global, my intention is to offer a new lev-el of service and expertise to the mining sector rather than replicating mining en-gineering models already extensively avail-able to the market,” Brits explains. “We are already driving home the necessity for fully qualified project management and owner’s representative teams that can integrate, coordinate and offer total solutions to cli-ents in any mining and process area. We will ensure costs are minimal and solutions are optimal.

The Vela VKE/SMEC merger

On 13 June 2012, SMEC formally announced its merger with Vela VKE. The merger was effective on 1 July 2012. Today, the SMEC Group comprises over 5 000 employees and has an established network of over 70 offices in 36 countries throughout Australia, Africa, Asia, the Middle East, the Pacific, and North and South America.

Both Vela VKE and SMEC are well respected leaders in the engineering industry. “By combining the technical capabilities of both companies, I am fully confident that we will gain substantial ground in the wider African marketplace,” Dr Thomas Marshall, Vela VKE CEO (prior to the acquisition) and recently appointed COO for SMEC’s Africa division, stated during the merger announcement.

SMEC offers a range of professional consulting engineering services, including conceptualisation, planning, design, management, construction supervision, operation, maintenance and rehabilitation of infrastructure. These comprehensive services will be available to a broad range of sectors, including mining.

“We are confident of future prospects for Vela VKE (SMEC South Africa) in South Africa as a result of the merger. The merger signified the beginning of a successful partnership that will be highly beneficial to both companies. It is an exciting time for our valued clients and employees. Our clients will have access to a broader service offering with a global network of knowledge and resources, while our employees will have significant growth and development career opportunities as well as a wealth of resources to assist in meeting the needs of our clients,” Marshall concluded.

“Essential to this service is the neces-sity to establish close working relation-ships with the mining companies so that we fully understand their needs to provide the niche service we are offering. We are in talks with a few other companies that spe-cialise in project management, with the ul-timate intention of acquiring them to fur-ther boost our own project management skills and experience,” Brits continues.

Although the SMEC Mining, Oil & Gas division’s focus area will predominately lie in project management, Brits says it will draw from SMEC’s vast engineering capability and strategic engineering part-ners to provide its clients with specialists in any area of the projects value chain, including multi-discipline engineering de-sign, from studies through to execution and commissioning.

“By combining the proficiency of GMC Global with SMEC’s project manage-ment and infrastructure expertise, the SMEC Mining, Oil & Gas division is able to provide clients with a niche high-level service offering. With GMC Global estab-lishing an Africa presence, strategical-ly co-located at the SMEC head office in Johannesburg, I am confident that we can

Vela VKE has improved its mining consultancy and management capabilities

with the acquisition of GMC Global

Water is

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gain measurable market share in this sec-tor,” says Gertzen.

Brits says that SMEC Mining, Oil & Gas has already ‘landed’ a project, which is helping it establish the department. “An iron ore junior miner in South Africa has awarded us with the contract to project manage, design and build its process plant, which will commence next year following the comple-tion of its feasibility studies.”

Globally, SMEC boasts par-ticular consulting expertise in the iron ore, manganese and coal sec-tors in the mining industry – all of which are experiencing rapid growth in Africa

as a direct result of increased investment. “Our capabilities are further enhanced by the fact that GMC Global is currently in the process of delivering 115 productivity improvement programmes to mines across

the world,” Gertzen continues. “This sub-stantial experience and expertise places the SMEC Mining, Oil & Gas division in a

strong position to consolidate on current strengths, while entering into new areas

of expertise as the African mining sector continues to grow at a steady rate,” Gertz-en ends.

Gerrit Brits is a civil engineer and project manager by profession, and was formerly the head of projects at Kumba Iron Ore’s Sishen mine in the Northern Cape

The SMEC Mining, Oil & Gas Africa division offers a solution that is tailor made to the

client’s exact specifi cations

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1THREAD_4139_INS

Profile: project delivery


Mine2-4D is a complete, au-tomated mine planning and scheduling system that de-livers fully integrated long-

and short-term mine plans, Gantt sched-ules linked to 3D designs, animations and reliable reconciliation.

First developed in 1999 by MineRP (then ACMS), Mine2-4D has earned an interna-tional following among mine planners, fi rst

earning its spurs in underground mines and thereafter also expanding into open cut and pits.

Mine2-4D 2012After initially outsourcing the distribution and publication of Mine2-4D, MineRP made a decision to fully upgrade the software from the ground up. Under the leadership of Mat-thew O’Callaghan, product director for Ex-pert Solutions at MineRP, the upgrade pro-ject for the fi rst release started in October 2011 and took the best part of 14 months to complete.

Says O’Callaghan: “MineRP set out to de-liver a completely new product – not just a facelift of the old version 12.”

“We’ve simplifi ed the user interface and made it more modern. Th is means it’s easier for the user to step through all the processes

needed to complete the mine plan. Streamlin-ing all the steps from design through to the schedule, a major area of improvement lies in the way that the system handles small chang-es mid-process,” O’Callaghan continues.

Instead of having to reprocess all activ-ities for any change that has been made,

Mine2-4D 2012 is able to identify those changes and only process those. Th is dramat-ically speeds up the process.

Furthermore, Mine2-4D 2012 moves away from its previous proprietary fi le-based da-tabase and adopts an MS SQL database. Th is change, together with its certifi cation to exchange data with MineRP’s SpatialDB enterprise mining database, prepares it for signifi cant im-provements in the way it supports col-laboration with other mining systems up and down the mining value chain.

Product launchEven though Mine2-4D 2012 has been in beta testing since June 2012, MineRP only publically revealed the new software to the market in November 2012. Mine2-4D 2012 was formally launched on 21 December 2012 and is available for purchase from MineRP’s various offi ces around the world or from www.minerpsolutions.com.

Th e Mine2-4D 2012 reveal was done dur-ing a very successful worldwide road show where the company also announced the con-clusion of a transaction that will see it exit the Gijima group, to be owned by a consor-tium of companies including RMB Corvest, Shalamuka, Hasso Plattner Ventures and the MineRP Manco.

Special offerAs part of its previous commitment to the market, MineRP will be off ering free upgrades to all current holders of Mine2-4D v 12 or Stu-dio 5DP licenses willing to enter into support and maintenance agreements with MineRP.

For more information about Mine2-4D 2012, or the process of upgrading to this ex-citing new product, please contact MineRP at [email protected] or visit the website at www.minerpsolutions.com.

MINE2-4D 2012

Maximising the value of mineral assetsMineRP has once again raised the bar with the introduction of Mine2-4D 2012.

Developed as a focused mine planning application for underground and surface

mines, Mine2-4D is able to generate practical scenarios that will maximise the

value of your mineral assets.

BELOW Mine2-4D delivers quick and accurate evaluations

BELOW Integrated visualiSation within Mine2-4D

Profile: Project delivery


The combination of a thriving min-ing industry in Botswana, quality service delivery and ability to de-liver in the face of any challenge

has seen our business thrive and grow in recent years,” says Rudi Nagel, Transport Holdings business develop-ment manager.

Open-ended possibilities in Botswana and beyondLooking at the possibilities and opportunities in 2013, the com-pany’s key focus remains its customers and their ‘unique’ re-quirements. “Our client base and capacity also allows us to respond positively to spikes in short-term demands. We know our customers and their requirements intimately and their

challenges are ours,” says Nagel. “Botswa-na’s mining sector remains our greatest area of focus, which is seeing the entrance of new mines, while existing operations are working on maximising local resources and extending their lifespans. We are also

seeing an increase in demand for abnormal transport and will continue to grow our presence in this specialised field.

“Because the local mining sector con-tinues to expand, I anticipate an increase in the regulation of resources as well as

local suppliers servicing those investors, which will ulti-mately strengthen the local

transportation industry. Rail simply cannot cope with the

current and near future demand for exports, and this trend will not change very soon. Road transport-ers have for many years provided an alternative to keep up with eco-nomic demands such as mineral exports and we will continue to fill

that gap for the foreseeable future. We hope to see local companies supporting

SHARING THE LOAD

Botswana’s shining example

Botswana-based

service and supply

chain management company

Transport Holdings intends on retaining

its leading position in the country in 2013

and beyond. This means adapting and supplying

customised solutions, enhancing its vehicle capabilities

and understanding emerging industry trends. Growing its

footprint beyond Botswana is also on the table.

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Botswana-based

service and supply

chain management company

Transport Holdings intends on retaining

its leading position in the country in 2013

and beyond. This means adapting and supplying

customised solutions, enhancing its vehicle capabilities

and understanding emerging industry trends. Growing its

footprint beyond Botswana is also on the table.

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The Transport Holdings service

Transport Holdings is passionate about service and supply chain management and provides as much of both as its clients allow. The major requirements for the mining sector, within landlocked countries such as Botswana, include warehousing and consolidation, as well as transportation of equipment to and from the mines, to and from suppliers, and the transportation of the mine’s products to its customers’ preferred ports. In addition, the company provides abnormal transport services.

“We offer something we like to call ‘a courier service for mining equipment’ due to the fact that we are able to deliver to our clients within the same time as it would take to courier anything. We are proud of achieving quick turnaround times with general cargo and other commodities,” Nagel explains.

Profile: Project delivery


local industry, which is in line with the ob-jectives of the Botswana government.”

While Transport Holdings remains ideally positioned to continue servic-ing its home ground so efficiently, its plans for continued growth are seeing it look outside of Botswana for growth opportunities. Mozambique appears to be a “promising region”, with a myriad interesting developments.

Transport Holdings manages a fleet in excess of 200 vehicles and, as part of its local empowerment and social responsibil-ity, ensures the livelihood of some 25 local subcontractors. “We employ 100 people in Botswana and 70 in South Africa.”

The clientele – and their requirementsTh e company’s clientele, to name a few, in-clude BCL, African Copper’s Th akadu-Maka-la project, Debswana’s Orapa and Jwaneng diamond mines and Morupule colliery, No-rilsk Nickes’ Tati mine and Discovery Cop-per Botswana’s (a Discovery Metals subsidi-ary) new Boseto copper project.

Regardless of client or country, Nagel says that the industry’s requirements and needs remain fairly similar. As mining costs escalate, so does the demand for more efficient service providers and oper-ational delivery. “Our objective is always to ensure the benefits of efficiencies and well-planned supply chain solutions are passed onto our customers. Our pursuit to improve the status quo is relentless. As in any other industry, our customers continually want more for less. With the ever-rising fuel prices, it forces us to be increasingly innovative in or approach. As such, we are very proud of some innovative alternatives currently under review.”

The company’s involvement in African Copper’s Thakadu-Mowana project is a perfect example of its ability to deliver unique and customised solutions. “We are extremely proud of our production and

efficiency achievements with regards to this rock ore project between the client’s Thakadu-Mowana open pit and the exist-

ing Mowana operation. This is an off-road application, which poses a number of un-common challenges, and we have gone as far as grading roads to ensure downtime and vehicle maintenance is minimised. The

side tipper vehicles we use for this project are also unique. They work with cables as opposed to hydraulics, which also reduces

maintenance costs and downtime. We cur-rently boast record efficiencies in the re-gion of 76 000 tpm, which equates to 104 t moved every hour, 24 hours a day, seven days a week,” Nagel outlines.

“Our client base and capacity also allows us to respond positively to spikes in short-term demands. We know our customers and their requirements intimately and their challenges are ours.” Rudi Nagel, Transport Holdings business development manager

Project delivery

Mining companies should be open-minded to the possi-bilities that compact equipment today off ers the mod-ern world. Bobcat’s short wheel-based small- and me-dium-framed skid-steer loaders have come a long way

since they were fi rst introduced to the market and are surprising the mining industry every day with their versatility. Th ere is hardly an area of the mining sector – both underground and on surface – where our compact equipment is not being used today,” states Jordan.

Bobcat skid-steer loaders are currently in use across all the mining sectors across the African continent, including gold, platinum, dia-mond, iron ore, copper and coal. Although generally used for load-ing and cleaning, the machines can be fi tted with a multitude of at-tachments. In mining this includes buckets, dumper/hoppers, pallet

forks, a belt scraper (for cleaning conveyor belts) and four diff erent types of brooms. Bobcat also develops customised attachments to-gether with mining engineering clients that require a specialised piece of equipment that could be useful to them in their specifi c mining environment.

Th e latest small frame underground machine from Bobcat, with its short wheelbase for maximum manoeuvrability, has been specially developed and customised for South African conditions and incor-porates all the features of a big mining machine scaled down into a compact loader. Advanced features include a fl ameproofi ng system, the Boyco safety system (to warn miners of the machine’s proximity), green and red LED lights for direction, an on-board fi re suppression system, and an electrical micro switch system that cuts out the hy-draulics if the seat bar is lifted.

Bobcat also off ers a larger, big-frame, mid-loading surface machine with similar safety features as its smaller brother and a fully enclosed, pressurised cabin with suspended seat, air conditioning and heater. A unique feature of this machine is its modern technology, which en-ables an operator to switch over from skid-steer to joystick control with a fl ick of a switch. Th e cabin incorporates various electronic pan-els for diff erent features, like the recording of production time.

With a footprint that covers the entire South African mining sector, Bobcat is able to provide technical support, complete maintenance, repairs and spares. Th e company also off ers a short-term rental fa-cility for the mining industry with a wide range of machines and at-tachments available. Accredited operator training is provided in most mining regions and takes place on-site at the mines as required.

Compact mining equipment, which at its inception was not taken seriously, has become

a useful maintenance and production tool. Deryck Jordan, director of Bobcat Equipment

South Africa, speaks to Inside Mining about Bobcat’s commitment to delivering

compact equipment solutions that are tough, durable and dependable.

TOUGH AND VERSATILE

Dynamite skid-steer loader

Bobcat M-Series S650 skid-steer loader (above ground)

Project delivery

From capturing, managing, visual-ising and understanding data to controlling and reporting on mine production, Micromine has a solu-

tion for every stage of the mining value chain.Micromine systems take the user from tar-

get generation through to exploration, geo-logical modelling, resources modelling, pit optimisation, mine design, reserve estima-tion, production scheduling, grade control and beyond.

Th e software system comprises eight mod-ules and the modular structure means it is adaptable to the needs of diff erent users. As an operation grows and its requirements change, the system grows with it.

New products“We recently released our Geobank mobile data management system that provides the capability to capture information straight into the database directly from a mobile de-vice, such as a tablet,” explains Marc Ramsay, Micromine’s regional manager for Africa.

“Coal Measure, another new Micromine packaged solution specifi cally geared for the coal industry, focuses on the nature of coal ore bodies, the database, sampling and qual-ity assurance that has to be fed back to the customer in real time.

“We are also off ering customers a much more tailored return on investment

approach. Aiming to understand our clients’ requirements we off er them a specifi c confi g-uration that suits their needs. Micromine is ‘every miners’ software’. We accommodate from the juniors to the big corporates, not only in South Africa, but right across Africa,” concludes Ramsay.

Th e system’s philosophy of simplicity ex-tends to its streamlined 3D editing tools that allow complex geological modelling effi cient-ly, accurately and with ease.

Investment in R&DMicromine continually commits to tech-nology research, investing up to 25% of

software revenue in the development of its solutions, which are also enhanced by client contributions, including client focus groups and beta programme feedback.

Located in 21 of the world’s major min-eral producing capitals, the company is always close to mining operations, which means it can provide mines with local sup-port and services in a specifi c language and time zone.

Its intuitive solutions are delivered by a team of specialists who understand the software and its capabilities, and how it can be integrated into a specifi c operation for maximum results.

INTUITIVE SOFTWARE FOR MINING

IT’s IQ specialistWith a turnover that is up more than 50% since 2011 and more than 12 000 clients

across over 90 countries, mining IT specialist Micromine’s reputation for providing

intuitive software solutions to the mining and exploration industries continues to grow.

Project delivery


Two new VSIs were on display at the company’s Elandsfontein prem-ises, enabling customers to have an up-close inspection of these

versatile 1500 and 2500 machines. Osborn has already had remarkable success with the VSI, with both machines sold before they

landed in South Africa, reports Shane Beat-tie, Osborn product sales manager. Th ey will be used at quarry sites for sand production.

“Manufactured in the US by sister com-pany KPI-JCI, the VSI is highly efficient, has unmatched precision and proven flexi-bility,” he explains.

Hits South Africa’s shoresTHE LATEST CRUSHING EDITION

Late last year, materials handling specialist Osborn held a successful open day

to promote the addition of the KPI-JCI vertical shaft impact crusher (VSI) to its

product range.

KPI-JCI (which was formed by the amal-gamation of long-time industry leaders Kolberg-Pioneer and Johnson Crushers International), Osborn Engineered Prod-ucts, Telsmith, Breaker Technology (BTi) and Astec Mobile Screens are members of the Astec Aggregate and Mining Group

of companie). The group, which provides innovative solutions for the materials handling, mining, quarry-ing, recycling, construction and demolition industries, will be exhibiting at the Mining Indaba 2013 and Bauma Africa, where it will showcase its ability to design, manufacture and market a complete, world-class line of crushers, feed-ers, conveyors, screens and washing equipment for opencast mining and quar-ry operations.

Shane Beattie, product sales manager, and Noel Bessler, sales director, with one of

the two KPI-JCI vertical shaft impact crushers on display at Osborn’s Open Day on

15 October 2012

C R U S H I N G | S C R E E N I N G | M A T E R I A L H A N D L I N G | W A S H I N G & C L A S S I F Y I N G

VERTICAL SHAFT IMPACT CRUSHERS

Proudly distributed by Osborn South Africa

VISIT US AT THE MINING INDABA4 - 7 February 2013in Cape Town

M a x i m u m E f f i c i e n c y | W o r r y - F r e e O p e r a t i o n | R o b u s t C o n s t r u c t i o n

AG G R E G AT E A N D M I N I N G G R O U P

For more info call Osborn on 011 820 7600

or 0861 OSBORNor visit www.osborn.co.za

Project delivery

South African equipment manu-facturer Unique Engineering has launched a custom-made pump unit specifi cally for effi cient dispensing

and transport of explosive chemicals under-ground. Th e mobile, mounted helical rotor positive displacement pump, complete with tank, is only available from explosive chemi-cal suppliers, who assisted the company with its research and development of the product.

“Th e fabricated structure is fi tted with tanks that have been exclusively designed to carry the explosive emulsion used to fi ll the charge holes,” says Unique Engineering’s pump sales & marketing director, Peet Hart-man. “Th is type of technology is often used in opencast mining as well.”

Th e Eco range is rapidly gaining ground in the industry. According to Hartman, the

supply of spares as replacement components for other imported pumps has also enjoyed a rapid growth pattern, and this is mainly due to the fact that all parts are locally manufac-tured and more cost eff ective.

Benefi ts inclue self-priming with high suc-tion capabilities. It is reversible and has a uniform, non-pulsating fl ow, and is abrasion resistant with low shear characteristics. Th e pump also has a pro-gressive cavity design and is capable of op-erating under arduous abrasive conditions.

Hartman says that the company has sup-plied Eco pumps for grout, gunnite and void fi lling in mining and

construction sites, as well as dosing treat-ment used for shear sensitive products such as polymers, fl occulants and depressants.

Th e new explosive emulsion dispenser com-plements the current Eco range and further entrenches the company’s off ering to the deep level mining sector, albeit via explosive chemical suppliers. “Unique’s experience in the mining industry is extremely substantial

as it also manufactures and supplies the re-nowned workhorse of the industry, the Wil-

fl o double diaphragm pump,” said Hartman.

Th e company also manufactures a full range

of barricades used in the blasting areas of the mines.

NEW CUSTOM-MADE PUMPS

Assisting with underground explosives

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Project delivery

AFS GROUP MINING SOLUTIONSTo effectively manage any mining operation, AFS Group implemented a Total Fuel Management Solution for the mining environment. This involves the total automation of the entire operation which includes:

3 Automated Tank gauging

3 Home base site controller

3 Electronic ow meters

3 Vehicle identi cation technology

This technology is supported by our business intelligence services, which continuously monitor all wet stock movements, along with providing ongoing support and maintenance provided by on-site technicians.

Solutions can also be based on the vendor managed inventory model, consignment stock, total fuel management and facility management concepts, where the customer is billed on usage rather than the delivery.

At AFS, we verify the volume delivered and dispensed, we maintain wet stocks and ensure that all sites hold optimal levels of fuel at all times.

We Make Every Drop

Count!

Tel: 011 856-3600 • Cell: 082 821 4209 • www.afsgroup.co.zaAFS Group, Passionate about helping you manage your fuel spend.

Vigilant monitoring of large quan-tities of fuel and other lubricants is critical to the overall opera-tional success of any mining op-

eration. Low levels of stock or technical and equipment failures can cause signifi -cant operational delays, impacting overall production output.

“AFS has successfully implemented its To-tal Fuel Management solution in some of the country’s largest coal and platinum mines to address these issues,” says Tony War-rener, AFS Group CEO. Th e compa-ny provides and off ers fuel man-agement solutions to high-volume fuel consumers in South Africa.

AFS’s specialist technology and services (controlling and measur-ing various elements of the fuel

FUEL USAGE MANAGEMENT

Critical to production output supply chain) delivers reductions in fuel management costs and manage fuel as well as the related equipment and technical services, which allows mines to run at optimum levels with minimal interruption.

“For example, the technology utilised re-cords all volumes dispensed into and out of tanks and monitors the lubricants in the tank to detect volume. Th is allows for orders to be placed with suffi cient lead time for the

mine not to run dry. Th e data relating to volumes is also cap-

tured and consolidated with accuracy, ensuring

that the variants are better than the industry

s ta nd a rd ,” says Warrener.Th e Total Fuel Management solution pro-

vides high-level facilities management and

support. Onsite technical and support staff monitor readings, provide environmental services and carry out scheduled checks on all equipment to proactively detect failures. Th ey are also available 24 hours a day, seven days a week throughout the year, in order to respond timeously to any emergencies, thus ensuring that mine operations proceed without hindrance.

“In our experience, we have learnt that man-aging fuel usage in the mining environment requires intricate collaboration. By providing an end-to-end solution in the management of fuel, related equipment and technical servic-es, all fuel and lubricant related matters are holistically integrated to ensure that the mine enjoys optimal stock supply and that opera-tional equipment is taken care of, therefore maximising output,” concludes Warrener.

Advertorial

SOUTH AFRICA

For more information call 011 825 0230 or email [email protected]; [email protected] or visit www.logitank.com.au

Innovative Oil and Diesel storage from

1,000L to 1,000,000L

Logitank South Africa is an IQ Oil company

T he company’s self-bunded tank design has a double wall, which means that the customer does not need to build concrete bund

facilities on-site before installing and using the tank. The double wall – or double skin design – acts as the bund wall to catch any diesel that has leaked out of the tank, thereby satisfying the environmental concerns.

The built-in pump bund design ensures that all the pumps, dispensers, etc., are built into the tanks pump bund, meaning that when a tank needs to be moved to a new location, all of the pumping and oth-er equipment can be easily moved along with it.

Logitank tanks are not mobile but ‘moveable ’,

FUEL FOR THOUGHT

Thanks for tanksIQ oil filtration company Logitank South Africa provides its mining customers

with a complete solution to storage, purification and the management of oil/fuel.

Logitank SA provides:

• tanks only• tank farms up to 1 000 000 ℓ and more• all ancillaries such as pumps, dispensers, filters, hoses, reels, hose masts, etc.

• fuel management systems• tank gauging• oil and diesel purification systems.

meaning they can be moved from one site to another (when empty) without having to demolish any part of the structure.

Moveable tanks have numerous benefits for mining companies in particular. For example: mining companies may begin mining an area that is further away from the original store area and dump trucks end up driving vast distances to refuel. Mini-service stations can be set up to sup-ply fuel in remote areas. The mini-service station can be moved very easily if the lo-cation does not yield profits. The tank can even be moved from one mine to another, or sold off as an asset if the mine is closed or depleted.

The Logitank advantage• Roof design does not allow water collec-

tion, so no rust or water seeps into tank when the manhole is opened.

• All fasteners such as bolts and nuts are stainless steel to

prevent rust and seizing.

• Logitank tanks of-fer better

c a p a c i t i e s compared to com-

petitors when compar-ing the size of the container to

the tank capacity.

• Logitank’s 95% safe fill level valve is a new innovation in self-bunded tanks. The customer can now have 5% more fuel/oil in the same tank and they can take delivery of fuel faster due to the valve design, which remains 100% open for the entire delivery process.

• Logitank SA stocks tanks in South Africa with a 6 500 m² facility in Germiston, re-sulting in good lead times.

• Logitank owns the manufacturing facili-ty in China, which means that the prod-uct, price, engineering, development, etc., are controlled by Logitank rather than a third-party Chinese company.

• Logitank delivers, installs and commis-sions the equipment as required.

• Logitank offers service and maintenance.• In instances where the customer wants

to take delivery in Africa direct from the factory in China, Logitank can install all the required ancillaries at the facto-ry in China and deliver direct to Ghana (for example).

Project delivery

The IGCC technology is a high-ef-fi ciency process whereby a syn-thetic gas consisting primarily of hydrogen and carbon monoxide is

extracted from coal and used as fuel to gen-erate electricity. Th is gasifi cation technique is an extremely advanced technology and as such there are currently only a few demon-stration plants in operation worldwide.

The scope of supply comprises the com-plete equipment from the raw coal feeding

GENERATING 300 MW

A first for South KoreaMilling and grinding specialist Loesche has signed a contract

with Doosan Heavy Industries & Construction for the supply

of two Loesche coal mills (type LM 43.4D) for the fi rst coal-

based integrated gasifi cation combined cycle (IGCC) 300 MW

power plant to be built in Taean, South Korea.

system to the product bag filter, including Loesche grinding mills and hot gas gener-ators, flaps, fans, electrical drives and an automation system.

The throughput of the four roller grinding mill amounts to 95 tph coal with additives (dry-base), based on a fineness of 10% resi-due on 90 micron sieve. This particular coal mill simultaneously grinds, dries and clas-sifies a mixture of coal and additives with more than 25% moisture. The mill’s main

drive power rating amounts to 1 600 kW. Loesche has sold more than 60 coal mills for self-inert coal grinding plants to date.Complete delivery is scheduled for May 2013 and commissioning is scheduled for the first half of 2014.

Project delivery

Ins ide Mining 11.12 /2012110

The merger will create one of the largest law firms operating in Afri-ca, resulting in Fasken Martineau having the largest international

footprint of any Canada-based law firm. The merged firm will provide a full offer-ing of legal services to clients worldwide.

“Our firm has long been known for our unique understanding of the African mar-ketplace. This merger speaks both to the power of our brand and to the expanded capabilities and services we now offer to our global clients,” says David Corbett, Fasken Martineau managing partner. “The addition of the Bell Dewar team of lawyers along with our existing teams in Johannes-burg, London, Paris and Canada provides us with an unrivalled base of talent and ex-perience to bring to the African and world markets,” added Corbett.

“As we looked to expand our base and grow our Africa business, we considered a number of potential partners. Fasken Mar-tineau was the obvious choice given the firm’s reach, expertise and global capabili-ties,” says Blaize Vance, managing partner of Bell Dewar.

“We will fully integrate the two firms over the coming months. This will be completed by 1 February 2013. Upon completion of the merger, Vance will become the regional managing partner for Africa, based at the newly consolidated offices in Johannes-burg,” Vance continues.

Bell Dewar currently has 76 lawyers on staff. The new Johannesburg team will add to the firm’s existing capabilities in Africa, especially in the areas of mining, infrastructure, energy, project finance, capital markets and mergers and acqui-sitions throughout Africa. Bell Dewar currently has strong mining and energy teams, which will be incorporated into the merged entity.

Th e current mining team advises mining companies, mining and prospecting rights holders, fi nancial institutions, benefi ciaries and support industries. In addition to work in South Africa, the mining team has un-dertaken projects in Angola, Botswana, the Democratic Republic of the Congo, Gabon, Ghana, Guinea, Lesotho, Madagascar, Mali,

Mozambique, Swaziland, Tanzania, Zambia and Zimbabwe.

The firm was involved in the largest BEE mining transaction to date, namely the An-glo American/Kumba Resources/Eyesizwe empowerment project, which saw the crea-tion of the country’s largest listed empow-erment company and one of the world’s

EXPANDING ITS LEADERSHIP IN AFRICA

Fasken Martineau to merge with Bell DewarIn line with the drive towards excellence in South African law firms, Fasken

Martineau, a leading international business law and litigation firm, recently

announced that it is merging with Johannesburg-based law firm Bell Dewar.

largest resources corporations. Subsequently, the firm has ad-vised on the Impala Platinum (Implats) and The Royal Bafokeng Nation, as well as the Lafarge South Africa and Sinako Hold-ings BEE transactions. These deals have all been given awards for excellence.

Some of the mining team’s more recent work includes advising Wesizwe Platinum on acquiring Africa Wide Mineral Prospect-ing and Exploration from Platinum Group Metals, advising on project fi nancing for the Elandsfontein platinum mine project, acting for Implats in the US$2.3 billion (R20 billion) Ambatovy nickel project in Madagascar and advising Implats on its acquisi-tion of share capital from Afplats.

Bell Dewar is a company affi liate of the South African Institute of Mining and Metallurgy, and a member of the Fossil Fuel Foun-dation of Africa.

Th e fi rm also has experience in a wide range of energy project re-lated agreements, including power purchase agreements, electric-ity wheeling agreements and connection agreements, as well as with FIDIC-based EPC and turnkey construction contracts and in-terfacing with governmental authorities and regulatory agencies.

Th e combined expertise of these teams with Fasken Martineau’s 150 years of experience in the international mining industry will ensure that the client base of the merged company will have ac-cess to world-class professional service in South Africa, Africa and the rest of the world.

Ambatory nickel project

Project delivery

New crushing technologySanvik Mining’s patented Vibrocone crusher takes crushing technology into the next

generation, combining the best of conventional crushing and grinding principles to

produce an unprecedented amount of finely crushed product. It also enables up to 30%

energy savings in downstream processing.

Over 10 000 hours of 24/7 com-mercial operations in cop-per, gold and iron ore mine sites are proof of the tech-

nical and operational reliability of this comminution technology.

Th e product processed from the Vibro-cone crusher opens the possibility for new eco-effi cient comminution alternatives. For example, in existing comminution circuits with rod and/or ball milling stages, the Vi-brocone crushers can replace the rod mills or act as pre-grinding units for the ball mills. Vibrocone comminution will consid-erably improve the effi ciency and cost of the downstream grinding process.

A greenfi eld case study of a 10 Mtpa copper operation in South America, done by Ausenco, has shown that the Vibrocone solution is the lowest cost op-tion, with energy savings in the range of 20% relative to the SAG mill alternative.

“We want to be in the fore-front of developing technolo-gy and solutions, addressing the challenges that our customers are facing now and in the future. The focus on environment, health and safety, and

increasing costs are impacting every step of the mining process,” says Gary

Hughes, president of Sandvik Mining. “We will see a transfor-

mation in mining processes as new groundbreaking technolo-gies in comminution emerge.

The revolutionary Vibro-cone crusher is the

first step towards a more energy and water efficient com-minution circuit,” adds Hughes.

Vibrocone crusher

Project delivery

“DON’T BURN ROCKS!”

Come and see us:

MINING INDABA February 4–7, 2013Cape TownSouth Africa

Don’t waste time:www.tomrasorting.com/mining

Better burn pure and dry coal. Our new

movable sorting system PRO Secondary XRT

de-shales all kinds of coal and maximizes

yield without using any water.

Try the dry way.

Simulation boosts safety and output

The fi rst Cat simulator introduced lo-cally by Barloworld Equipment’s Op-erator Training Academy was a dedi-cated Version I unit designed for the

new M-Series motor grader line-up launched some three years ago. At the time, the

M-Series marked a

new tech-n o l o g i c a l b r e a k -

Local demand for simulator training is being driven by

key factors that include health and safety legislation,

improved machine utilisation and production

tonnage demands.

through as the fi rst grader models in industry to be wholly operated by joy-stick controls, setting a new standard for ergonomic performance.

Following favourable industry response, the Operator Training Academy is now introduc-ing fi ve additional simulator models, which will cater for a much broader machine spec-trum. Including M-Series graders, this latest generation Version II simulator product line

will cover small wheel loaders, large wheel loaders, large mining trucks, track-type tractors (based on the Cat D8 model, but applicable up to and including the top-of-the-range Cat D11T, covering both

construction and mining applications) and medium-sized hydraulic excavators (based on the Cat 330 model).

Featuring the very latest technology, the simulators are designed to make the training experience as realistic as possible. Examples include a ‘motion’ sensor tracking device, which is worn on the operator’s head. De-pending on the machine programme, as the operator’s head moves, so too does the site image on the computer screen panel, shifting to the left or right, up or down via ‘on-board’ machine camera systems.

“Every user has his or her own log-in ID and the system records individual operator performance on prescribed machine metrics via the SimU Campus records management software, which runs on the same computer as the simulation software,” explains Willie Haasbroek, head of Barloworld Equipment’s Operator Training Academy.

Parameters can also be built into the sys-tem and adjusted to match customer sites and equipment fl eets. The Cat M-Series grader simulator.

Making Women Visible In The Mining CharterLooking At The Statistics Of Women In Mining TodayWomen Participating In The Value Chain In Mining

4TH ANNUAL

Going Beyond The Required Quota Of Women In Mining

STANDARD PACKAGE R9999 EXCL. VAT

18 Conf ir med Speake rs Inclu de

Confe re nce Highl ight s

Women Participating In The Value Chain In Mining

The Pro’s And Con’s Of Unions

Ceterum censeo

Dawn come quickly!BY WILLEM SMUTS

The year behind us surely is one the South African mining industry would dearly love to forget, with labour unrest, deaths, insecurity around rights, etc. With this in mind, surely no thinking per-son will blame Gold Fields for cutting its South African op-erations from its global busi-ness and placing it in a new vehicle to ensure it retains its competitive edge.

Despite the gloom of the pre-vious year, Indaba 2013 will surely be as exciting as previ-ous years and will likely be big-ger than ever. I believe South Africa has a lot of work to do

to claw back our position as one of the worlds’ biggest and best mining destinations. We still sit on arguably the worlds’ largest gold resources – for 115 years we were the largest producer, a position we squan-dered in little over a decade to be fifth after China, Australia, the US and Russia. What hurts is that we now produce little more than half of what China produces and Peru is breathing down our neck...

The ghost of Zima-mbje lingers yet?*In my opinion, Zimbabwe still holds one of the highest

resources potential in all of the beloved continent, yet the people see no benefit from it. While ‘indigenisation’ as a pure policy makes sense and holds much promise, it now

merely serves as a conduit for a small band of insiders to benefit personally and everybody approaches it with

a beggars’ mentality. I see so many good projects and great business plans fall over and die because rather than stand up and take ownership as equal partners building the

success, people rather want ‘petrol money’ and are looking for opportunities where they ‘can eat first’... meanwhile

Indaba 2013 will surely be as exciting as previous years and will likely be bigger than ever

Ceterum censeo

Are you looking for cost-effective size-reduction and classification of ores, industrial minerals and concentrates? Contact Loesche SA to find out the advantages of the Loesche Grinding System for your beneficiation process.

MILLING & CLASSIFICATION IS OUR BUSINESS

Tel: +27 (0)11 482 2933 | Fax: +27 (0)11 482 2940 | Email: [email protected] | Web: www.loesche.com

Loes

che

six

rolle

r M

illFROM INVENTING BETTER SOLUTIONS

EVERY DAYE V E N 1 0 0 Y E A R S O F B E I N G A N I N N O V AT O R A N D M A R K E T L E A D E R D O E S N O T K E E P U S

AFS Group 107

Atlas Copco 96

AT Kearney 60

Barloworld Equipment 45

Basil Read Energy 72

Basil Read Matomo 12

Bell Dewar 37

Bell Equipment 95

BME OFC

Booyco Electronics 27

BVI 31

Centennial Trading Company

4 t/a Discovery Drilling IBC

Delloitte OBC

Emerald Risk Transfer 79

Everite Building Products 91

FLSmidth 19

Group Five Projects 89

Group Five Housing 25

Hansen Transmissions 68

Husqvarna 2

IQ Oil Filtration 108

ITC 114

Jeffares & Green 22

Kemix 69

Loesche SA 115

Louwill Engineering 36

M3 Construction 47

Marsh SA 77

Masemanzi Mining 40

MBE Minerals SA 76

MDM Engineering 93

MechCaL 64

MicroMine Africa 103

MineRP 98-99

MIP Process

Technologies 49

Model Maker Systems 102

Mpact Plastic Containers 58

Osborn Engineering 105

Pilot Crushtec 7

Polysius 39

RCM Plastics 23

Rosond 51

Royal HaskoningDHV

(Turgis) 53

Salvo Global 109

Sandvik Mining 73

SBS Water Systems 85

Senet Engineering 44

SEW Eurodrive 97

Sishen Iron Ore 15

SRK Consulting 67

ThyssenKrupp 59

Tomra Sorting

Solutions 113

Transport Holdings 100

TWP 35

Unique Engineering 106

UWP 18

Vermeer 111

Voith Turbo 112

Weir Minerals Africa IFC

Zest Weg Group 11

INDEX TO ADVERTISERS

vast amounts of foreign direct investment earmarked for this country sits idly waiting. I had much hope for Zimbabwe in 2012, but sadly reality fell far short of most peoples’ expec-tations; however, as long as there is even one African that will move from shovel-boy to CEO of a major mining com-pany purely on hard work and

natural ability I hold the flame of hope alive. May 2013 be the year where people take own-ership and responsibility as equals and Zimbabwe becomes the jewel it can be.

What does this year hold for us?I am a geologist and an ex-plorer – the eternal optimist

in other words – and I believe this year can only be better than the previous. I say again: generally, while the madness continues in traditional min-ing destinations in Africa, I am of the opinion that more play-ers will turn to newer fron-tiers. As ‘idiocrasies’ slaughter the goose laying the golden eggs, explorers will move on

to new prospective land with thinking governments. Ex Af-rica semper aliquid novi [Always something new out of Africa] and nowhere is this more true than in mining.

* Indaba, My Children: African Tribal History, Legends, Cus-toms and Religious Beliefs – Vusamazulu Credo Mutwa.




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DIAMOND DRILLING 2500m DEEP AND RC DRILLING

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Shooting Star Mechanical Engineer – Mining

Chillibush8492Deloitte

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Audit I Consulting I Corporate Finance I Risk Advisory I Tax

Belinda Hurwitz: “Success in recurve archery requires focusing on the target, the bow, the hand, the arrow shaft and arrow tip simultaneously. Optimising capital projects for mines also requires taking every factor into account to hit the mark.”

As a member of the Deloitte mining team, Belinda draws fully on her know-how as a national recurve archer in enabling mines to maximise their expansion targets, on time and within budget. A solid footing and firm eye on the target are as essential in archery as they are in enhancing the complete process of a successful mining project.

Visit us at www.deloitte.com/za for more about our unique people and inspired results.

Visit our stand at the Mining Indaba 4-7 February 2013

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inside mining jan 2013

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