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www.miningne. ws ISSN 1999-8872 R50.00 (incl. VAT) Vol. 7 • No. 8 • August 2014 DEEP INNOVATION Embracing innovation can result in a 10% to 30% increase in productivity on any particular shaft RANDGOLD RESOURCES Mark Bristow on challenges in Africa www.mining ne . ws ining AFRICAN UPDATES ON THE GROUND AND UNDERGROUND TEGA INDUSTRIES MD Fernando Monteiro on supplying the evolving African mining sector MOPANI’S MINDOLA Copper mine deploys largest raise drill in Africa HUSAB URANIUM MINE The world’s second-largest uranium mine OTJIKOTO GOLD MINE Specialised lifting solution for remote sites

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The August 2014 edition of Inside Mining

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Page 1: Inside Mining August 2014

www.miningne.ws

ISSN 1999-8872 • R50.00 (incl. VAT) • Vol. 7 • No. 8 • August 2014

DEEP INNOVATIONEmbracing innovation can result in a 10% to 30% increase in productivity on any particular shaft

RANDGOLD RESOURCESMark Bristow on challenges in Africa

www.miningne.ws

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

TEGA INDUSTRIESMD Fernando Monteiro on supplying the evolving African mining sector

MOPANI’S MINDOLACopper mine deploys largest raise drill in Africa

HUSAB URANIUM MINEThe world’s second-largest uranium mine

OTJIKOTO GOLD MINESpecialised lifting solution for remote sites

Page 2: Inside Mining August 2014

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2014

Page 3: Inside Mining August 2014

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

iningCONTENTS

12

32

32

August 2014

Survival of the fi ttestTega Industries, a key supplier to mining operations across Africa, is constantly evolving, though consistently keeps its customers' best interests at heart.

ON THE COVER P8

STmicb

OO

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

ENDORSED BY

EDITOR’S COMMENT

3 Crossroads

INDUSTRY COMMENT

5 Mining is not blameless

AFRICA ROUND-UP

6 Mining news from the continent

COVER STORY

8 Survival of the fi ttest

IN THE SPOTLIGHT

10 Team Africa

PROJECTS IN AFRICA

12 Redbore 100 in Africa

16 High fi ve for Husab in Namibia

18 Namibia’s Otjikoto gets uplifted

20 Zambia powering up Kansanshi

22 Ran gold, a model African miner

26 Rio Tinto’s superlative Simandou

28 Big push at Kipushi in the DRC

MINERALS PROCESSING

30 Smart savings at Tschudi

AROUND THE GLOBE

32 More bang for your buck

COMPANY PROFILE

34 Manitou: Made for mining

TECHNOLOGY

37 Creating shockwaves

INFRASTRUCTURE

38 Making tracks

UNDERGROUND DEVELOPMENT

40 Deep innovation

COMMINUTION

42 Screens for Africa

44 Good vibrations

46 African solutions

RENEWABLES

50 Don’t let the sun go down

INFORMATION TECHNOLOGY

52 Keeping your assets in line

ENVIRONMENTAL

54 African mining goes green

ELECTRICAL

56 Igniting sparks

INSIDE MINING 08 | 2014 1

Page 4: Inside Mining August 2014

4

Page 5: Inside Mining August 2014

3

Crossroads

Publisher Elizabeth Shorten

Editor Gerhard Hope

Online editor Sylvester Haskins

Head of design Frédérick Danton

Senior designer Hayley Mendelow

Designer Kirsty Galloway

Chief sub-editor Tristan Snijders

Sub-editor Beatrix Knopjes

Contributors Mark Bristow, John Eccles

Production manager Antois-Leigh Botma

Production coordinator Jacqueline Modise

Marketing manager Hestelle Robinson

Digital manager Esther Louw

Financial manager Andrew Lobban

Administration Tonya Hebenton

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ISSN 1999-8872 Inside Mining

Copyright 2014. All rights reserved.___________________________________All material in Inside Mining is copyright protected and may not be reproduced either in whole or in part without the prior written permission of the publisher. The views of contributors do not necessarily reflect those of the publishers.

THERE ARE 1 600 mines and quarries in South Africa, employing over 500 000 people directly. Th is emphasises the central role of the mining industry in the

South African economy, said Minister of Mines Ngoako Ramatlhodi on the occasion of the Budget Vote in the National Assembly in July.

Minister Ramatlhodi argued that South Africa was at a crossroads in terms of resource develop-

ment. “Th e potential of the upstream petroleum industry, both shale gas and increas-ingly off shore deep-water oil and gas, is profound, and if stewarded properly, has the potential to drive the development of our economy for all our people in a manner contrary to a historic injustice infl icted upon our people by the mining industry.”

An Inter-Ministerial Committee has been established to comprehensively evaluate and accommodate concerns related to the MPRD Amendment Bill. Th e regulatory framework relating to mine health and safety is also being reviewed, in order to en-sure alignment with the MPRDA Amendment Bill. “We are also aiming at ‘zero harm’ in the mines, as well as an appropriate environment for women mineworkers. Th e Mine Health and Safety Bill will be submitted to Parliament this fi nancial year,” said Minister Ramatlhodi.

Th e African Exploration, Mining and Financing Corporation was resuscitated as the nucleus for the establishment of the state-owned mining company (SOM-CO), which at present is a wholly owned subsidiary of the Central Energy Fund. Th e company has already exceeded production volumes at its pioneering mine at Vlakfontein in Mpumalanga, with two further coal mines expected to be in production by 2017. “Th is year we will submit the SOMCO Bill to parliament for processing, with the aim of establishing the entity as a standalone company,” said Minister Ramatlhodi.

In terms of the Mining Charter, the Minister reiterated the key requirement for mining companies to “implement ways of improving housing and living conditions of mineworkers and to achieve a set of targets by 2014, which includes the conversion of all hostels into family units.”

Commenting on the Minister’s Budget Vote speech, Economic Freedom Fighters leader Julius Malema said that all 1 600 mines in South Africa must be inspect-ed “in one year”. He added that Minister Ramatlhodi “does not even want to tell us how many inspectors there are, and there is not even money allocated for mines’ inspection.”

Th e EFF leader pointed out that mining is “currently the biggest contributor to environmental degradation, mining towns experience the highest levels of diseases, particularly TB and other occupational diseases.”

Malema also called on the Department of Mineral Resources to establish a com-mission to investigate ‘legislative changes’ to the remuneration and living conditions of mineworkers. “Th e legislative changes should include passing a law that say[s] all mineworkers should be paid a minimum of R12 500, after deductions.”

In this issue, SRK Consulting chairperson Roger Dixon and Randgold Resources chief executive Mark Bristow talk extensively to Inside Mining about the challenges and opportunities posed by the African mining industry. We also present a selection of Prestigious Projects in Africa, showcasing the best innovations and technological developments brought to bear in pursuit of cost-savings and increased productivity.

Gerhard Hope

EDITOR'S COMMENT

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

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INSIDE MINING 08 | 2014

Page 6: Inside Mining August 2014

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Ben Magara,Chief Executive Officer, Lonmin Plc

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Page 7: Inside Mining August 2014

5

INDUSTRY COMMENT

INSIDE MINING 08 | 2014

The mining industry is not blameless in its drive to exploit short-term

opportunities, argues Randgold Resources chief executive Mark Bristow.

Mining is not blameless

IT ARRIVES IN A country and brags about how it is going to invest money and it expects everybody to bow and scrape. Then the gold price

drops and everyone leaves. When you re-ally boil it down, the government carries much more risk, because politicians go out on a limb when they inform their electorate of mining investors coming in who are getting tax breaks, and the next minute there is nothing there and jobs are being cut.

This is why Randgold Resources’ en-gagement with the Ivory Coast govern-ment on an industry basis is construc-tive. We sat down and argued points, and we agreed on a percentage of revenue for community work, which I fully support. Your biggest single risk in emerging markets is social risk. We have put more than $1 billion in tax into Mali, which is able to fund many desks and schools.

Community responsibilityWe have a bigger responsibility to our communities than just patting them on the back. It is something that the in-dustry and investors have to realise. In-vestors are very quick to throw the rule book at us and tell us what we have to do, and where we have to comply, but as soon as something does not look right, they sell up and leave, which means they have exploited the opportunity. It is a complex situation, and it requires fairly long-term and strong leadership with-in the company and the board in terms of how relationships with stakeholders are  managed.

What about the relationship between social responsibility and mechanisation? Mechanisation is an evolution that is ab-solutely aligned with the development of

an economy. Loulo-Gounkoto in Mali is highly mechanised. It has remote load-ing: the haul truck is sent remotely into the stope and loaded up. It also has com-plex, highly computerised drill booms that will drill and bolt in a single oper-ation. Its staff are quite competent in running that machinery. A few Austral-ians were brought in to teach them, and we very quickly became neck and neck with them in terms of efficiencies.

EvolutionIn theory, if you become more mecha-nised – which, by definition, means you become more efficient – you should em-ploy more people, you will mine more, you will make more money, you will do

many things better. We do not employ the sort of numbers that South African miners employ, but we employ highly skilled people.

Inefficiency in labour goes back to in-vestment in skills, and the culture of how labour works. It is a trade-off at the end of the day, not only in the number of employees, but also in skills. Randgold Resources does not employ externally; we rather want our people going home at the end of the day and so invest in their skills. In this way, we are completely op-posite to the South African, labour-in-tensive structure.

Employment strategyWhen we do our quarterly press con-

ferences in our host countries, we show the population the percentage of local employment on a provincial, national and continental basis. Our employment strategy is first local, then regional, country, sub-continent and continent; only when we cannot find the required skills after that do we go international.

Th e key is that we employ much more because we favour local business partners. All our service providers are local, and they also employ locally. Th is means our impact is massive. Mali is a very small economy, and we make an impact. How do you be-come an integral part of the economy? You cannot do it by being exclusive.

I think the industry has got a long way to go to get there. There is a culture in the mining industry that puts all these barriers in place in that it is still not an open business and is one prone to ex-ploitation of resources.

Community responsibility, more than mechanisation, is the real power of eco-nomic activity.

“We have a bigger responsibility to our communities than just patting them on the back.” Mark Bristow, chief executive,

Randgold Resources

Page 8: Inside Mining August 2014

INSIDE MINING 08 | 20146

poorest countries prosper, but mine development has been mired by disputes over conces-sions. Earlier this year, the Guinea government revoked the mining rights over the northern half of Simandou held by VBG, a joint venture between BSG Resources and Vale, after a government re-port determined that the for-mer had won those rights through corruption.

LESOTHO Follow-ing completion of

the Liqhobong diamond mine fi nancing in May, Firestone Diamonds has reported that construction and development

is expected to take 24 months. Th e company said that name-plate production of 300 000 t is expected to be achieved in the fi rst half of 2016, with the main treatment plant and sup-porting infrastructure already underway, under the leader-ship of chief project offi cer Glen Black. About 73% of the EPCM budget had been com-mitted to date, with major equipment deliveries aligned to its current baseline sched-ule. “I am pleased to announce commencement of the earth-works programme at Liqho-bong in the Lesotho High-lands, which follows the re-cent completion of the fi nanc-ing,” commented Firestone CEO Stuart Brown.

REPUBLIC OF CONGO AIM-listed

exploration company African Potash has appointed RCT to undertake a maiden 1 000 m

diamond-drill programme at the company’s Lac Din-ga potash exploration pro-ject in the Republic of Congo. “Th e appointment of RCT represents further progress. With two highly prospective target areas identifi ed and a drill team in place, we are now set to commence our maiden drilling programme in July,” said African Potash CEO Edward Marlow. Th e project is located in a min-eral-rich region, proven to host extensive potash mineralisation. Marlow noted: “I look forward to proving up the value po-tential of our asset through this upcoming drill programme.” CSA Global conducted a geolog-ical study that resulted in a regional structural geolog-ical framework and an interpretation of the ex-tent of the evaporite se-quence across the area.

Elemental Minerals has appointed John Sanders

as its new managing director, replacing Iain Macpherson. Sanders was instrumental in the development of the Sin-toukola project in the Repub-lic of Congo. He will continue as a non-executive director to allow a smooth transition and retain technical skills and achieve a level of continuity. He was general manager and executive director from 2009 to 2012. Sanders has 30 years’ experience in African explora-tion and mining projects. He previously held the positions of VP: exploration for UraMin, CEO of Niger Uranium, re-gional exploration manager: East and West Africa at Anglo-Gold Ashanti, country manag-er: AngloGold Mali and coun-try manager: Anglo American Botswana. Elemental Minerals is an advanced mineral ex-ploration and development company, whose primary asset is the 97%-owned Sintoukola potash project in the Republic of Congo. Sintoukola has the potential to be among the world’s lowest-cost potash producers. Its strategic loca-tion near the Congolese coast of Central West Africa off ers a transport-cost advantage to key Brazilian and Asian fertil-iser markets.

MALI Th e Mali gov-ernment has award-

ed four mining permits to Qatar Mining, as the West African country seeks to boost exploration to off set ageing mines. Greenfi eld projects are set to be developed over the next few years. Th is agree-ment follows a meeting be-tween the president of Mali, Ibrahim Boubacar Keita, and a visiting Qatari investment delegation in June. Th e newly established Qatar Mining Mali Greenfi eld will represent the interests of Qatar in Mali and the region. Qatar Mining was established in 2010 by the state of Qatar to undertake targeted investments in the mining and metals sector. Th e

MINING NEWS from around the conti nent

AFRICA ROUND-UP

GUINEA Anglo American has ruled

out a bid for the Simandou iron ore project in Guinea. However, the company is still looking to expand its portfolio in the region, according to a Reuters report. “Do not ex-pect us to be bidding for a project such as Simandou,” said Anglo American head of marketing and iron ore sales Timo Smit, on the sidelines of the Metal Bulletin 20th Iron Ore Symposium in Sweden. “Our focus is on expanding in West and Central Africa. We will not be making any large-scale investments any time soon.” Exploiting Siman-dou could help one of Africa’s

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Page 9: Inside Mining August 2014

INSIDE MINING 08 | 2014 7

company aims to become a multinational commodity player by 2022, using Mali as a base for all ventures into West Africa. Qatar Mining’s invest-ment in Mali purportedly cov-ers four zones, namely Tab-ako, Mininko Nord, Netekoto and Linguekoto in the west and southern locations.

Th e feasibility study for the Kobada gold project in the Kangaba region of Mali will be completed in quarter four of 2014, with project devel-opment the following year, African Gold Group (AGG) has announced. Th e company has just announced the appoint-ment of a feasibility study coordinator for the 216 km2

Kobada gold project. Misha Anthony Collins will also sit on the AGG advisory board. Both of the appointments

have been made with immedi-ate eff ect.

“Management views this appointment as an important milestone for AGG as the company embarks on the road to production at Kobada,” it said. Collins is currently the non-executive chairman of Si-hayo Gold and non-executive director of Ask Funding. He has a diverse background in technical, fi nancial and over-sight roles. He is also a signifi -cant shareholder in AGG. Col-lins holds a fi rst-class honours degree in Metallurgical Engi-neering from RMIT University of Melbourne, Australia.

“Collins’s extensive metallur-gical and fi nancial experience will signifi cantly strengthen and complement AGG’s ex-isting project-development team,” said AGG president and CEO Declan Franzmann.

Collins commented: “Th ere is a unique opportunity to build a signifi cant and highly profi table gold business at Kobada, with demonstration of concept at a meaningful but manageable scale, followed by rapid incremental growth.

“Combined with high sub-sequent gravity recoveries as previous work has demon-strated, there is the potential for this project to deliver exceptional returns. Th e large resource also allows for a long mine life and scalable growth well beyond the initial 5 000 t/day modular plant that is currently being contemplated.”

ZIMBABWE A major underground

collapse has halved platinum production at Zimplats’ Bhima platinum mine, the company

said on Friday 18 July. Th ere were no reports of fatalities at the mine or any capital equip-ment damage at the opera-tion. Bhima is Zimplats’ big-gest of four platinum mines in Zimbabwe. Th e collapse was triggered by a deterioration of ground conditions along a fault that was fi rst identifi ed in 2011. As a result, produc-tion at Bhima has been down-scaled by 50%, equating to 45 000 oz of platinum in matte, said Zimplats, a mem-ber of Implats South Africa. Zimplats is a key source of revenue for Implats, the sec-ond largest platinum producer in the world.

Zimplats said it will take around 15 months to reach full production as per prelim-inary estimates, and around 50 months to reconnect to current declines.

AFRICA ROUND-UP

Page 10: Inside Mining August 2014

INSIDE MINING 06 | 20148

COVER STORY

MODERN REQUIREMENTS

favour suppliers who have the right technical solu-tions and are able to provide

products that are backed by a full array of services needed to support the custom-ers’ mining operations or processes. Th is leaves comparatively less room for ‘in-the-box’ type sales of products and requires far greater product knowledge wherever tech-nical input is sought.

As a key supplier to mines throughout Africa, Tega Industries’ managing direc-tor, Fernando Monteiro, is keenly aware of these changing requirements and has spent much of his time at the helm of the business shifting the company’s focus to providing all-round solutions to an ex-panding customer base.

Manufacturing and moreHe says that although the company re-mains a manufacturer of linings and en-gineered rubber products (among others), supporting services of the company’s products are becoming more important and advanced.

Nowadays these include assistance with identifi cation and specifi cation of prod-ucts and solutions for customers’ require-ments. Products are then manufactured and tailor-made for the job, and the tech-nical expertise to install and support the company’s engineered rubber and related

Survival of the fittest

Mining in Southern Africa is evolving and key suppliers are working tirelessly to adapt their offerings to meet the demands of an increasingly sophisticated market.

Fernando Monteiro, managing director of Tega Industries South Africa

“We will continue to expand our infrastructure in Africa to be closer to the customers we serve.” Fernando Monteiro, MD, Tega Industries

INSIDE MINING 08 | 20148

TEGA INDUSTRIES

Page 11: Inside Mining August 2014

INSIDE MINING 08 | 2014 9

COVER STORY

products is critical. Work studies on cli-ents’ sites are becoming common-place (to identify and rectify problems on custom-ers’ sites) using the right rubber or engi-neered combination products.

“Over the past two years, our product sales have become more closely aligned with our customers’ business requirements. Th is echoes the close working relationships be-tween our own technical personnel and the mine’s technical teams. In many instances this close working relationship even means we are able to suggest diff erent products to solve multiple issues on customers’ sites and this adds great value to our service of-fering. It is one of the many reasons why Tega Industries South Africa continues to grow and attract new customers.”

Process of changeMonteiro continues that it is not as simple as just deciding on a new path and setting off . “We took a long-term approach to gearing for the future and decided to com-pletely re-engineer almost every aspect of our company in order to become 100% customer centric.

“Th is meant evaluating our status quo at the beginning of the transformation and measuring it against perceived future re-quirements (medium and long term) of our customers. Th is, in turn, led to the identifi cation of a series of improvements that would be required. After obtaining the buy-in of all stakeholders, we embarked on a process of constant improvement.

“We started by addressing product qual-ity and ensuring that we could meet the increasingly stringent requirements of our clients. We also made allowance for our fast-growing customer base and needed to ensure we could meet forecast volumes with quality product manufactured time-ously, and being able to off er customers the facility to hold stock should they require it.”

Home-grown solutionHe continues that as part of a global or-ganisation, they had a choice to either

source more products from the group’s other manufacturing hubs in India, Aus-tralia and the Americas, or to invest in the economy of South Africa.

“I am happy to say we proudly decided on the latter and so started the compa-ny on an all-out improvement campaign some two years ago.

“One of the fi rst things I wanted to do was uplift and empower our staff . By do-ing away with labour brokers, we have converted our staff to full-time employees with a renewed sense of belonging, pride and job security.

“Next, we purchased a new 45 000 m² facility in Vulcania, Brakpan, which is cen-tral to major mining activities throughout the region and provides ample space for our manufacturing processes. We also in-vested in advanced low-energy moulding machines, as well as high-tech laboratory and testing equipment to ensure we pro-duce the best possible, world-class prod-ucts in a safe and responsible manner.”

Skills developmentMonteiro says that training has subse-quently become central to the company’s ongoing improvement policy. He believes enriching workers in all areas of the business with work and life skills should have long-term benefi ts for the compa-ny through having a more skilled, better equipped and motivated workforce.

Tega Industries South Africa is convert-ing its quality systems to the internation-ally accredited TÜV Rheinland assurance system as a means of assuring consistency of products leaving the factory door. On completion, the systems will include OSH 18000 health and safety and ISO 14000 environmental protection accreditation alongside its ISO 9001:2008 accreditation.

“We believe these are integral to growth from simply being a price-based product supplier, to evolving into a trusted ser-vice provider with world-class products, backed up by a large complement of world-class staff across all areas of our business.

Continuous improvement“Other areas we are concentrating on in-clude reducing our energy consumption, even going as far as generating our own electricity requirements by means of heat that is released in the moulding process. We are converting our manufacturing environment to become a 0% industrial waste effl uent generator. In this way we are transforming our organisation, be-coming a responsible partner to our cli-ents and adding value to the communities in which we operate.

“We will continue to expand our infra-structure in Africa to be closer to the cus-tomers we serve. Needless to say, we keep investing in the right technical skills and the right people in all areas of our oper-ation to ensure we add value to our cus-tomers’ operations. Th rough the addition of leading-edge technologies and equip-ment, we are now positioned to produce world-class products, proudly supplied and supported by our professional staff .

“We believe that our eff orts are paying dividends. We are growing at a sustained pace and are eager to invite would-be cus-tomers to talk to us – they will be pleas-antly surprised at our new and improved capabilities,” concludes Monteiro.

t +27 (0)11 421 9916

www.tegaindustries.co.za

ABOVE LEFT Thousands of engineered rubber items are made by Tega on a daily basis

RIGHT A mould being prepared at Tega Industries’ new plant in Vulcania

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Page 12: Inside Mining August 2014

INSIDE MINING 08 | 201410

IN THE SPOTLIGHT

ICES WILL CREATE a platform for knowledge-based dialogue to promote informed policies for Kenya’s mining sector; this will not only help attract

investment but will better leverage mining investments in the broader development of the country’s economy, says Dixon.

“Th e main issues when doing business in Africa are stability and certainty, so mini-mising political risk and creating a frame-work for sustainable development will en-courage direct foreign investment,” he says.

Dixon emphasises that the mining in-dustry must prevent a repetition of the uneven development that characterised the colonial era.

“Governments and companies see it as a business imperative to exploit natural re-sources, but in many cases the people of these countries continue to live in abject poverty,” states Dixon. “Th is has led to a trend towards resource nationalism in some countries, as an attempt to redress historic imbalances. Th ere is also a growing expectation that any company wishing to work in an African country has to be regis-tered there.”

Africa Mining Vision (AMV)AfDB director for the Eastern Africa Resource Centre Gabri-el Negatu says the opportunity to use the sector to accelerate

understand Africa well to help contribute to sustainable growth,” he explains. “While there is a lot of hype about the positive growth being experienced by economies such as that of Nigeria, one should look at the growth rate per capita in order to get a better picture of Africa’s achievements.”

While Zimbabwe is often referred to when pundits point to how Africa is fail-ing its citizenry, Dixon says that this is an example often taken out of context. Th ere are many other more positive examples around Africa, where nations are working to address the key challenges to unlocking their rich mineral wealth.

Th e Democratic Republic of Congo has a magnifi cent resource endowment, for instance, but is held back by a lack of reg-ulatory certainty and adequate transport corridors in many areas.

“It is fi ne having several major deposits of various minerals, but a country needs the means of transport to a port and

back,” points out Dixon. “Th e continent often lacks the enabling infrastruc-ture in-country and across country boundaries.”

Furthermore, he says that Africa cannot follow a simple project develop-ment model that dedicates a rail line and port to just one large mine, as there are

Team Africa

national development and promote eco-nomic growth “requires careful planning at this critical stage.

“AfDB supports the AMV, which sets out how mining can be used to drive con-tinental development. We believe that, as stakeholders, we have a special role to play in promoting knowledge sharing in Kenya, given our proven track record as a trusted convener and facilitator of Africa’s sustain-able development agenda,” says  Negatu.

According to government estimates, extractive industries currently contrib-ute just 1% of Kenya’s national income, and less than 2% of export earnings. Th is contribution is set to grow signifi cantly. Current estimates suggest the sector may grow to 10% of GDP.

Dixon points out that, with 200 Austral-ian companies involved in 700 projects on the continent, initiatives such as ICES in Kenya are essential to promote local ex-cellence and expertise. “You have got to

SRK Consulting corporate

consultant and chairman

Roger Dixon says the

launch of the Information

Centre for the Extractive

Sector (ICES) in Nairobi,

Kenya, by the African

Development Bank

(AfDB) is the sort of

initiative that makes

Africa proud.

By Gerhard Hope

“The main issues regarding doing business in Africa are stability, certainty and fairness.” Roger Dixon, chairman, SRK

Page 13: Inside Mining August 2014

OPPOSITE PAGE The continent often lacks the enabling infrastructure in-country and across country boundaries

RIGHT Sign of the times in Africa

often several stakeholders requiring rail and port services.

Dixon says that government ministries may also inadvertently hold back mineral investment and development by not col-laborating closely enough with each other.

“In South Africa, for instance, most min-ing projects require permits or licences from the Department of Water Aff airs and Sanitation, the Department of Envi-ronmental Aff airs, and the Department of Mineral Resources – each of which have their own mandates and agendas,” he ex-plains. “Th ey operate within the context of the Ministry of Finance, which sets the fi scal regime. When these departments do not communicate with each other, in-vestors can face confl icting or competing requirements, making business very diffi -cult. Th is is replicated at a country level in Africa, where you also fi nd that national governments do not communicate with each other. We need a regional approach.”

Institutional capacityAnother issue is the institutional capac-ity of many African countries to monitor

construction and mining standards, and to assess compliance with international benchmarking and national regulations.

“We have seen an infl ux of Chinese and other foreign investors who sometimes appear not to understand local priori-ties and standards,” he says. “Th ey tend to bring in their own consultants, engi-neers and even workers, which is a cause of concern for me in that the host pop-ulation ultimately does not share in the wealth  generated.”

Dixon argues that it is important for countries like South Africa, Zambia and Ghana – which have a rich history of min-ing – to pool their resources and expertise to create a ‘team Africa’ to tackle local op-portunities. “Companies from outside of Africa face increased visa and work permit issues and exorbitant travel and accom-modation costs,” says Dixon. “Th ere is also the question of adequate accommodation

IN THE SPOTLIGHT

INSIDE MINING 08 | 2014 11

and facilities for expatriate workers, in ad-dition to health and safety issues such as malaria and even Ebola virus outbreaks.”

Dixon says that foreign companies, lured to Africa with a perception of easy pick-ings, are now fi nding similar cost pres-sures to those in their home countries; this presents a unique opportunity for the local ‘team Africa’ to make inroads on the continent.

Page 14: Inside Mining August 2014

INSIDE MINING 06 | 201412

PROJECTS IN AFRICA

Redbore 100 Contract miner Redpath Mining South Africa (RMSA) is introducing the Redbore 100 raise drill at Mopani’s Mindola copper mine in Zambia.

INSIDE MINING 08 | 201412

Page 15: Inside Mining August 2014

PROJECTS IN AFRICA

in AfricaT

HE NEXT-GENERATION raise drill, believed to be the largest of its kind introduced into the African mining market to

date, is due to arrive on-site at the Mopani Synclinorium Shaft pro-ject by the end of August.

“We are entering an exciting pe-riod within our business, consider-ing the successes we have achieved thus far with the Mopani Shaft project and the establishment of our raise-boring division. Th e new technology RMSA is bringing into Africa is strengthening our raise-boring and shaft-sinking capabili-ties, which, in turn, is assisting us in se-curing additional work,” comments RMSA managing director Ockert Douglas.

Th e contract RMSA has secured with Glencore will see an expansion of the mining production operations at Mopani Synclinorium via raise boring – a process of excavating circular holes between two levels of a mine without the use of explo-sives. Th e upcast ventilation shaft, due for completion in August 2015, forms part of the Synclinorium Shaft project. Th is comprises two shafts, a rock-wind-ing shaft and the ventilation shaft.

1 167 m undergroundUpon completion, the new 6.1 m-diame-ter, 900 vertical shaft will reach 1 167 m deep and will intersect the main haulages on 2370 Level and 3960 Level. Th is will provide 600 CFM of ventilation air to the underground workings.

RMSA raise-boring manager Johan Dav-el explains that the raise-boring process begins with the Redbore 100 raise drill being placed on the upper level of the two levels that need to be connected. A small-diameter pilot hole is drilled to the level required. Once the drill has broken into the opening on the target level, the bit is removed.

Th e cutting tool, known as a reamer, is then attached to the drill string and raised back towards the machine, while it is pulled and rotated against the rock

face. Th e drill cuttings from the reamer head fall to the fl oor of the lower level, where they are removed. Th e fi nished

raise has smooth walls, however, from time to time, rock bolting or other forms of ground support are required.

Drilling vs blastingDavel indicates that this type of drill-ing method is faster, cleaner and more cost-eff ective than traditional drill-and-blast methods. “A distinct advantage of the new Redbore 100 is that it has the ability to cut holes up to 8 m in diame-ter – to depths of up to 1 km – through solid rock. Th is is achieved thanks to its hydraulically driven cylinders, with an

output of more than 15 500 kN of thrust.”Th is immense thrust, combined with

a maximum torque of 1 016.9 kNm, en-ables the pilot drill to cut through a variety of solid rock types. As the bit descends, 2.1 m-length drill sec-tions are added to push the instru-ment further into the ground. Each of the 345 individual sections have a unique thread design to withstand the torque and thrust.

Th e threads work together with the torque to lock the sections together, which is critical in ensuring that the drill remains straight at all times. To

minimise deviations, RMSA makes use of a directional tool.

76 t behemothTh e Redbore 100 raise drill was designed and manufactured by Redpath Cana-da in 2009, and was last deployed on a raise-boring project at a large mining op-eration in Australia. Upon the successful completion of that project, the 76 t be-hemoth was dismantled and transported to RMSA’s premises in Isando, Johannes-burg. Following an inspection and pre-as-sembly process, the Redbore 100 is being transported to Zambia.

“The short-term outlook for RMSA’s raise boring division involves the con-struction of a workshop facility at our headquarters that will enable us to cater for further expansion of our raise-boring business. This major capital investment, which falls within the strategic objec-tives of the business, aims to provide our current and future clients with a facility to service raise-boring equipment,” ex-plains Douglas.

All of the individual components are stored in 35 cargo containers, which will remain at sea for roughly two months. Th ereafter, 18 long-haul trucks will trans-port the containers across South Africa and Zambia, where a fully trained team, assisted by Redpath engineers, will be on hand to ensure that the Redbore 100 is operational as soon as possible.

Planning and logistics“Th e planning and logistics involved in getting the Redbore 100 to South Africa has been a lengthy process. We initiated

OPPOSITE The Redbore 100 raise drill was designed and manufactured by Redpath Canada in 2009

INSIDE MINING 08 | 2014 13

OCKERT DOUGLAS ON MECHANISATION“Mechanisation is the future of the contracting mining industry. We have established ourselves to sell this as a product to our clients. The formation of the raise-boring division is testament to this philosophy. The benefi t to our clients is a safer, highly effi cient and more cost-effective product that will eventually ensure the upskilling of people, which in turn will contribute towards the future of the mining industry at large.”

“A steady infl ow of international investment

has resulted in the establishment of new

mine shafts, as well as the upgrading of existing mine

shafts, across Africa.”

Page 16: Inside Mining August 2014

this capital-intensive piece of equipment doesn’t remain idle,” says Davel.

“Th e logistics of transporting the ma-chine are so onerous that we had to assess the potential for work in the South Afri-can and African markets. Once we estab-lished that opportunities exist, Redpath Canada gave the go-ahead to move the machine over to Africa,” says Douglas.

Davel states that the highest demand for future large-scale raise-boring pro-jects will come from African mining op-erations. “A steady infl ow of investment has resulted in the establishment of new mine shafts, as well as the upgrading of existing mine shafts, across Africa. As this trend continues, I believe that the Redbore 100 will play a central role in providing local operations with a maxi-mum return on investment long into the future,” he concludes.

INSIDE MINING 08 | 201414

Please supply caption

PROJECTS IN AFRICA

communications on planning and demo-bilisation in November and December of 2013. We had a dedicated logistics team that spent 80% of its time on that single project. Finally, it is all starting to come together,” comments Davel.

“Progress in on target. Most of the equipment is already in South Africa, where it is being serviced, checked and assembled. Th e Redbore 100 is one of the largest of its kind in Africa, ever.”

Once up and running, a multi-skilled team from RMSA will operate the Red-bore 100 on a 24/7 basis for an estimated 15 months. In order to drill through the granite rock, which has an ultimate com-pressive strength of up to 200 MPa, the Redbore 100 will require 250 000 ℓ of wa-ter an hour, which will be reused through recycling dams. Th is water will be pumped through the hollow drill string to remove fractured rock generated during its down-ward rotation.

Meeting industry needs “Th e success of our raise-boring division will ensure sustainable future growth for RMSA, which will give our clients more fl exibility in terms of product delivery. What’s more, our ability to custom-de-sign raise-boring machines through our

Canadian counterparts will further serve towards developing specifi c solutions for our clients. We are currently working in conjunction with the same client in Zam-bia to design a machine for a specifi c appli-cation, with the manufacture of basic com-ponents having commenced already. Th is is a good example of RMSA’s new technol-ogy meeting a client’s specifi c needs for a specifi c application,” explains Douglas.

Although there are similar machines that have been deployed in the African mining industry, the Redbore 100 of-fers a more efficient and cost-effective solution due to its low-profile, compact design. In comparison to other machines with similar capabilities, the extended height of the Redbore 100 is approx-imately 30% lower. This lower profile ensures substantial savings on opera-tional space, which is severely restricted underground. It is cheaper to transport and can be dismantled easily, ultimately ensuring safer and more efficient equip-ment mobilisation.

Remain in AfricaStrategically, RMSA sees the Redbore 100 remaining in Africa upon completion of the Synclinorium Shaft project. “Planning is running months ahead to ensure that

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PRODUCTION BOOSTCarlisa Investments Corporation’s Mopani Copper Mine Plc says it expects to commission the $323 million Nkana Synclinorium Shaft in February 2016. About 10 000 direct jobs have been created, with an additional 500 jobs generated during the construction phase. Mopani manager for exploration projects Wellington Makumba said the Synclinorium Shaft project will boost the mine’s lifespan by 25 years. “The project is steadily progressing, having reached a depth of 1 235 m from surface. The fi nal depth is 1 277 m,” Makumba revealed at the recent Zambia International Mining and Energy Conference and Exhibition in Lusaka. The new shaft will allow Mopani to increase production from the current 3.4 million tonnes to 600 million tonnes of ore a year.

Page 17: Inside Mining August 2014

EXPERIENCE

A mining contractor providing innovative full-service quality mining solutions

commitment to maintaining the highest safety standards.

redpathmining.com

| | | | |

Consider it done.

Page 18: Inside Mining August 2014

INSIDE MINING 07 | 201416

SPEAKING AT THE offi cial com-missioning of the Husab mine, Hifi kepunye Pohamba, Pres-ident of Namibia, said: “Th e

development and opening of this mine demonstrates that Namibia continues to be an attractive destination for foreign direct investment.” Project investors, Taurus Minerals (90%) and Epangelo Mining (10%), have injected signifi cant resources into Husab. “To date, N$7 bil-lion has been spent on the development. It is envisaged that the total capex will exceed N$20 billion. Th e construction of Husab is one of the largest single invest-ments by a Chinese company in Africa to date. It is also one of the largest construc-tion projects ever undertaken in Namib-ia,” said President Pohamba.

Chinese Ambassador Xin Shunkang said: “As the largest uranium discovery and development project of the 21st cen-tury, Husab is a widely watched project, featuring the world’s third largest urani-um ore reserve and second largest urani-um mine once in production.”

Groundbreaking ceremonyTh e Husab project was inaugurated on 18 April 2013 with a groundbreaking cere-mony at the mine site. Guests included company executives and government of-fi cials. An important development early this year was the securing of buff er stor-ages for water so that the project can con-tinue uninterrupted until the permanent water line is constructed and comes on stream. A long-term off -take agreement

to be signed with NamWater will ensure that all water used during and after the project is desalinated, thus preserving coastal aquifers.

Th e fi rst blast on the Swakop Urani-um Husab project site was detonated on 12  March, heralding the start of mining activities on what will become the world’s second largest uranium mine. Th e plan is to ensure that a run-of-mine stockpile will be ready for processing upon completion of the processing plant. Th e mine and pro-cess plant are designed to produce 15 mil-lion pounds of uranium oxide a year. Elec-tricity from the NamPower grid was con-nected on 3  February through a 17  MVA mobile substation. Th e Husab mine site will have up to 50 MVA by the end of the year through a permanent substation.

High five for Husab

Swakop Uranium is developing the Husab uranium mine about 76 km by road from Swakopmund in Namibia. The mine is planning fi rst production at the end of 2015, and will achieve nameplate production by 2017. By Gerhard Hope

PROJECTS IN AFRICA

Page 19: Inside Mining August 2014

In April, the permanent road and bridge over the river Khan were completed. Th e turnoff to the Husab mine is 45 km from Swakopmund, and meanders over the Khan River valley on the way to the mine. Th e bridge over the Khan River is 160 m long, linking the mine to the main B2 transport route leading to Swakopmund. Th e surfaced road connecting the mine with the Namibian road network stretch-es over 22 km.

Sulphuric acid plantSwakop Uranium has confi rmed plans to build a 500  000  tonne sulphuric acid plant at the mine. Sulphuric acid is a key chemical used to recover uranium in an ore body. Construction of the sulphu-ric acid plant will start in quarter two of 2014. Th e Husab mine is expected to utilise all the sulphuric acid produced at the envisaged plant. Additional acid will be imported or sourced locally if needed.

Swakop Uranium has started fi lling per-manent positions well in advance of the opening of the mine as part of its oper-ational-readiness programme. Th is will ensure that staff are suffi ciently trained and ready to hit the ground running. Training and development programmes

OPPOSITE LEFT Swakop Uranium ordered 39 haul trucks and four hydraulic face shovels for Husab

OPPOSITE BOTTOM Guests and dignitaries at the offi cial commissioning of Husab in May

RIGHT Hifi kepunye Pohamba, President of the Republic of Namibia, and Ambassador Xin Shunkang

are designed to ensure that Swakop Ura-nium has world-class Namibian skills to manage this challenging operation. It was a proud moment for the Husab project team when the fi rst giant-haul trucks and hydraulic face shovel were fully assem-bled on-site early this year.

Th e trucks and hydraulic face shovels were delivered to site in a knock-down kit form, ready for assembly. Swakop Uranium ordered 39 haul trucks and four hydraulic face shovels for the Husab mine.

Eleven of the giant-haul trucks have been assembled and handed over to the operations team for training and commissioning fol-lowing manufacture of the various components all over the globe and

PROJECTS IN AFRICA

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Leslie Dann +230 5499 [email protected]

Willem Schoeman +27 (0)72 386 [email protected]

Jozi Power Limited rents out,

containerised 1MW and 2MW diesel generator sets to African mines and other large consumers for short to medium term periods. The gensets are used in combination with our range of step-up transformers to provide fast-track power stations of 1MW to 15MW.

Rental and Independent Power for Africa

INSIDE MINING 08 | 2014 17

their shipment to Namibia. Two hydraulic face shovels, which are used to load the haul trucks, have also been handed over to the operations team for pre-mining. Rope shovels are another main machine for loading the haul trucks and one has al-ready been assembled and handed over to operations. Th ree rope shovels will be used on the Husab mine.

HEAVY EQUIPMENT AT HUSAB• Four front-end loaders (which are used

for secondary move), one of which has been assembled and handed over to the operations team

• Nine drill rigs, two of which have been handed over and commissioned

• Three 85 tonne water tankers, which are used for mining dust control

Page 20: Inside Mining August 2014

INSIDE MINING 08 | 201418

Otjikoto gets

upliftedJohnson Crane Hire has successfully completed a specialised lifting solution at the B2Gold Otjikoto project in Namibia.

PROJECTS IN AFRICA

ABOVE (Main image) Craning of the base frameLEFT Early set-up of the sliding system

THE SCOPE OF WORK involved lifting, moving and position-ing Cat gensets. The gensets were manufactured interna-

tionally, shipped to Walvis Bay and then

transported to Otjikoto via road. Over a period of eight days, Johnson Crane Hire offloaded the genset components from the low-bed trucks onto the company’s recently acquired jacking-and-sliding

system. This was achieved by using a 200  tonne mobile  crane. This new sys-tem is unique. It is ultra-portable, which allows optimum flexibility in where this sort of lift can be undertaken.

“This is especially important at re-mote sites like Otjikoto, where access to technology is limited by logistics,” says James Robinson, engineer and heavy lift manager (who has 13  years’ experience in alternative lifting) for crawler cranes and projects at Johnson Crane  Hire. Each of the gensets comprised three ma-jor components: the base frame, engine and alternator. Once offloaded, they were assembled in collaboration with an OEM  representative. Each   120  tonne

Page 21: Inside Mining August 2014

INSIDE MINING 08 | 2014 19

This new system is unique. It is ultra-portable, which allows optimum

fl exibility in where this sort of lift can

be undertaken

PROJECTS IN AFRICA

TOP The sliding system in actionABOVE A job well done by the Johnson Crane Hire team, with the generator in its final position

genset was slid into position along a Tef-lon rail system. With the aid of a plumb line, Johnson Crane Hire was able to place the gensets laterally and longitudinally within an accuracy of one millimetre.

“One of the biggest advantages of the portable jacking-and-sliding system is that it is easy to set up, and does not need additional equipment to reposition it,” explains Robinson.

Otjikoto,   300  km north of Windhoek, will rank as Namibia’s second – and big-gest – gold mine when it enters produc-tion by the end of 2014. Th e current mine plan is based on probable mineral reserves

of 29.4  mil-lion  tonnes, to be mined over an initial 12-year period.

Schedules to complete the mine infra-structure and plant are tight and require a lifting solution

that will save both cost and time.“The successful completion of the

specialised lift at B2Gold’s Otjikoto is testament to Johnson Crane Hire’s market-driven  competencies. It demon-strates clearly that speed and safety are not necessarily mutually exclusive when the correct team and technology are ap-plied,” concludes Robinson.

LIFTING SOLUTIONSEngineer James Robinson explains that Johnson Crane Hire’s ability to understand its customers’ specifi c requirements enables the company to offer the most appropriate lifting solution. “You need to have an understanding of the nature of the lift, the risks involved and any limitations.”

The planning process is critical to the success of a heavy lift. This begins with an initial site inspection, followed by a more intensive on-site visit by Johnson Crane Hire’s technical heavy lift team. In this way, the team is able to verify measurements and dimensions, which are then passed on to the engineering team, which undertakes a 2D or 3D CAD rigging study.

Underlining everything that Johnson Crane Hire does is a focus on safe lifting techniques. This has stood the company in good stead for the past 35 years, and forms a critical cornerstone in its SMART (safety, maintenance, availability, reliability and total cost-effectiveness) business credo.

Page 22: Inside Mining August 2014

KANSANSHI IS THE largest cop-per mine in Africa and is situat-ed 10 km north of the town of Solwezi and 180 km northwest

of the Copperbelt town of Chingola. Th e mine has undergone several expansions since it began operating in 2005, and this contract from Zest WEG forms part of the latest phase of the upgrades. From an ini-tial production capacity of 110 000 tpa of copper, Kansanshi is now capable of pro-ducing 340 000 tpa and more than 3.4 tpa of gold. A multi-stage expansion project aims to increase copper output capacity to 400 000 tpa by 2015.

Mining is carried out in two pits, desig-nated Main and Northwest respectively, using conventional opencast methods and employing hydraulic excavators and a fl eet of haul trucks. Ore treatment is fl exible to allow for variation in ore type, either through an oxide circuit, a sulphide circuit or a transitional ore ‘mixed fl oat’ circuit, with facilities to assist fl otation concen-trate to a fi nal cathode via the HPL circuit.

Sulphide ore is treated via crushing, milling and fl otation to produce copper in concentrate. Th e expansion of the sul-phide milling circuit was commissioned in

The Zest WEG Group has secured a contract to supply containerised gensets for the Kansanshi mine in Zambia.

Powering up Kansanshi

PROJECTS IN AFRICA

quarter four of 2008 to maintain fi nished copper production, as oxide ore is depleted and sulphide ore grades begin to fall as the mining horizon deepens.

Oxide oreOxide ore is treated via crushing, milling, fl otation, leaching and the SX/EW process to produce a sulphidic and gold-bearing fl otation concentrate, as well as electrow-on copper. Gold recovery by gravity was expanded by the addition of four new grav-ity concentrators in April 2010, providing two concentrators per milling train and increasing gold recovery from all ore types. Gemini tables were installed to treat the gravity concentrates and produce a high-grade concentrate for direct smelting to gold bullion.

Th e contract for three 1  500  kVA and two 1 250 kVA containerised gensets was awarded based on Zest WEG’s track record in the mining industry, the capabilities and experience of its team, its manufacturing capacities and know-how, as well as the cost-eff ectiveness of the solution supplied.

“Th e African continent suff ers from a gen-eral lack of reliable electricity grid capacity. While Zambia’s power supply is slightly

more reliable than that available in many other African countries, there is still a need to provide an alternative power source for the sustainable operation of the Kansanshi plant,” says Bruce McCracken, sales man-ager for Zest WEG’s genset division.

First for gensets“Although the Zest WEG Group has sup-plied products to the mine in the past, this is the fi rst time we have been asked to provide gensets. Each package comprises a Cummins QSK50G3 diesel engine coupled to a single-bearing alternator rated for 550  V, mounted on a purpose-made sim-plex-type base frame,” says McCracken.

Each combination genset is enabled for singular or synchronous operation. “Th is facilitates and satisfi es a larger electrical output from the generator backup system. Th is capability is required due to the varied load demand experienced on the mine. In addition, the units act as backup for each other in the event of failure of one unit. Th is ensures that backup generator power will always be available to the mine.”

Th e gensets are placed in 12  m cus-tom-modifi ed ISO-certifi ed shipping con-tainers, manufactured by Zest WEG to suit

INSIDE MINING 08 | 201420

Page 23: Inside Mining August 2014

PROJECTS IN AFRICA

the specifi c confi guration of the generator solution and the precise needs of the cus-tomer. “By placing gensets in containers, we enable the swift and easy transporta-tion of the genset and all its components to any location required by the customer, in a ready-to-run format,” says McCracken.

On-board fuel tankIn addition to the genset components, each container includes a 2 000 ℓ on-board fuel tank, complete with an automatic fi ll-ing system fed from an external bulk-fuel tank. Th e container is dampened to absorb the sound generated within its confi nes, and has an acous-tic breakout limit of 85 dB at a distance of about 7 m.

Th e order for the fi rst two units was received in May 2013, while the second or-der was received in October 2013. Deliv-ery of the fi rst units was expedited in January 2014 and the re-maining units were delivered in May 2014. Commissioning of the fi rst two units was followed by commissioning of the third unit three weeks later. Th e fi nal commis-sioning was undertaken in the presence of Zest WEG’s technical team and the mine’s personnel.

Zest WEG has a fully  integrated genset manufacturing facility where the fabrica-tion, assembly, testing and commissioning of gensets are conducted in accordance with the group’s high standards of quality assurance and compliance with the OSH Act. Th e facility manufactures in accord-ance with the relevant ISO quality and procurement standards.

Substantial investment“We have made a substantial investment in our manufacturing facilities to ensure that customers are provided with reliable and robust gensets. Many suppliers rely on subcontractors to provide them with canopies, containers and exhaust systems. We are able to manufacture all of these el-ements, ensuring consistent quality and timeous delivery of a complete solutions package,” says McCracken.

Th e division’s success is based on a num-ber of strategically linked factors, including the experienced team, which is able to pro-vide customers with application-specifi c solutions as opposed to ‘boxed’ products.

“Th e design engineer and electrical engi-neer are responsible for providing a solu-tion that considers best practice for each customer’s unique requirements. Project management ensures that the process and procurement is timeously facilitated and that the fi nal solution matches the original specifi cations, while the manufacturing team is responsible for working according to the Zest WEG Group’s extremely strin-gent quality-control procedures.

“We have been involved in supplying gen-sets to a large base of customers in South Africa, Mozambique, Zimbabwe, Nigeria

and the Demo-cratic Republic of the Congo for the past 27 years, placing us in a position to understand and overcome the challenges of working in Africa. Anoth-er advantage we bring to the

table is that within Zest WEG we are able to source a complete portfolio of off erings, including gensets, electric motors, drive systems, transformers, installation sys-tems and electrical distribution panels,” says McCracken.

“Th is turnkey service provides custom-ers with the assurance that all solutions are manufactured in adherence to our quality assurance standards. An added benefi t is that the customer has the con-venience of dealing with one source for their supply, commissioning, after-ser-vice support and maintenance needs,” concludes McCracken.

ZAMBIAN FISCAL UNCERTAINTYCanada’s First Quantum has delayed investment projects worth more than $1 billion in Zambia due to uncertainty over the fi scal regime in Africa’s second-biggest copper producer, Reuters reported in June.

This follows Zambia’s planned review of its mining taxes to boost government revenue after ‘inadequate’ receipts from the sector last year, according to Finance Minister Alexander Chikwanda. The country also introduced a 10% export duty on unprocessed minerals.

“There has been a lot of uncertainty over the fi scal regime. First Quantum has either slowed down or postponed over $1 billion in capital expenditure due to this uncertainty,” company director Matt Pascal told a mining conference. “If this chorus against the mining industry continues, it will end up killing the golden goose.”

Pascal said First Quantum had stockpiled 200 000 t of copper concentrates worth $350 million at its Kansanshi mine after Zambia, which has limited smelter capacity, introduced the 10% export duty on concentrate exports.

The projects affected were the Kansanshi expansion and the second phase of the smelter, which was initially delayed due to technical issues.

A multi-stage expansion project aims to increase copper output

capacity to about 400 000 tpa

by 2015

TOP The ability to provide an engineered backup power supply solution that will ensure optimum reliability in a remote mining region secured Zest WEG Group a contract to supply containerised generator sets for First Quantum Mineral’s Kansanshi mine in ZambiaABOVE Placing generator sets in containers enables the swift and easy transportation to any location required by the customer, in a ready-to-run formatOPPOSITE Zest WEG Group secured a contract to supply containerised generator sets for First Quantum Mineral’s Kansanshi mine in Zambia

INSIDE MINING 08 | 2014 21

Page 24: Inside Mining August 2014

A model African miner

INSIDE MINING 08 | 201422

PROJECTS IN AFRICA

Mining is a multifaceted business

in a demanding jurisdiction,

particularly in emerging markets.

Gerhard Hope looks at how

Randgold Resources is a model

miner in Africa.

THE KIBALI MINE IN the Democratic Republic of Con-go remains on track to deliver the 550  000  ounces of gold

that its management has forecast for 2014, making this one of the flagship gold-mining projects on the continent. It is the very model of efficiency and good planning. However, Africa and the mining industry in general pose significant hurdles that can make the unwary stumble, says Randgold Re-sources chief executive, Mark Bristow.

“Mining has so many challenges. It is a multi-faceted business in a demanding jurisdiction, certainly when operating in emerging markets. Forcing a margin into your business ensures that you re-main profi table. However, what is going to haunt this industry is the fact that we have not invested in our own future.”

Bristow says that the bulk of current exploration spend has been squandered “on old deposits that started to look at-tractive as the gold price rose. Now we have a situation in the mining industry where a large part of forward-looking production is derived from junior min-ing companies who discovered small deposits on the back of a booming gold market, and who subsequently made promises to their shareholders. West Africa is full of those situations.”

Looming questionThe looming question now “is how much damage the industry needs to be

Page 25: Inside Mining August 2014

We have never seen so many significant conflicts in the history of the world in such a short period of time. The oil price has also started to creep up, and we have seen no major commodity boom indicat-ing an emergence from recession.”

Therefore, Bristow believes that emerg-ing markets will be key. “The US will nev-er grow at 9% to 10%. If it gets to 2%, it will be beneficial, for it remains a signifi-cant player. Emerging markets will drive the next phase in the global economy. That is where all the money is at the mo-ment.” This is also why these reserves are so important for Randgold Resources.

“It is a big driver in our business. The only way to create value is through dis-covery and development. The mining industry, in the first instance, is quite short of new discoveries and is merely exploiting its old dogs slowly. That in it-self is attractive to us, because ultimately it underpins the gold price. Exploration is an integral part of our business.

Exploration vs shopping“Industry pundits are of the opinion that they are not going to do any more explo-ration and instead buy assets, because it is cheaper. However, there still is noth-ing in the market that I have seen where you are not paying a premium. Every now and again an opportunity like Kibali arises, which may be largely circumstan-

tial. We had a good look at the geology and we believed it was a world-class project.”

Bristow explains that Randgold Resources has

a rolling five-year plan for its business. “I challenged my team to compile a

10-year plan. It is interesting when you start looking long term, as you can start seeing possible gaps and work on them.” This will see an extensive drilling programme  being undertaken at Lou-lo-Gounkoto in Mali. “We have between 1.5  million and 2  million ounces of re-sources at +5 g. If we can convert that into reserves, we will be able to change the grade profile closer to 2019 and keep it up at 600 000 ounces.”

Tongon in the Ivory Coast has a six-year plan, and “we have to pull something out of the bag to make it a 10-year plan,” says Bristow. Due to the technical challenges at Tongon, a grade of 2 g is now consid-ered breaking even. “It is seen as a spe-cial place: it has low-cost power, fantas-tic infrastructure and good people. So we aim to become a very low-grade, low-cost producer. It is in the right jurisdiction, and would give us a big opportunity to pursue some of the other resources in that country that are marginal.”

Ore-body extensionsBristow reveals that Randgold Resourc-es will continue to focus on brownfield ore-body extensions. “That is why the Ivory Coast is so significant for us. We have put a lot of energy and investment into  that.

It is our biggest exploration expendi-ture in the budget. It is a very exciting country; the infrastructure is efficient and it has two ports.”

Looking at other country hot spots, Bristow says that Mali “has not really

PROJECTS IN AFRICA

LEFTGounkoto crusherBELOW A striking sunrise at Kibali

INSIDE MINING 08 | 2014 23

subjected to in order to reduce supply sufficiently to drive up the gold price to rescue the rest of the industry. When you oversupply the market, the gold price goes down – we saw that in the 1990s with hedging and extra ounces supplied that were not even mined.

“As soon as we tightened up supply in 2001, the gold price shot up. Then we saw more and more gold being pro-duced out of desperation as the gold price plummeted. The industry has become renowned for investing in the peaks and not supporting investment in the troughs. At the moment we are actually only in a small trough.”

The average grade in the gold-mining sector has plunged from 2.6 grams to just over a gram. “The revenue stream is lower, which means you have to mine double the tonnes to produce the same amount of gold as an industry. That is why costs have gone up. It is our con-sidered view that the gold industry is bust at $1  300 an ounce. It is funda-mentally broke, and cannot make re-turns,” argues  Bristow.

Big demand for goldDespite this, there is still a big demand for gold, which has helped to bolster the price. “The demand is definitely there and it is surprising. I did not be-lieve that the gold price would stay up where it is. However, I do not think the world economy is as healthy as it claims to be. This is a tough place to be.

Page 26: Inside Mining August 2014

INSIDE MINING 08 | 201424

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attracted any new discoveries. In Sene-gal we are wrestling with the Massawa project. If we had cheap power, it would have been built already. It is another technical challenge for us. Ivory Coast is first in terms of greenfield projects, as it has never been explored. In the north-east of the Democratic Republic of Con-go, we are hunting more ground, and are struggling to get it.

We are looking at Cameroon and Gabon because the Central African Republic has gone off the radar. We have had a look at South Sudan, which has a different geol-ogy; we will wait and see how it goes. We have just been through Kenya and Ugan-da. We would love to go back into Tan-zania, although it has been so corrupted by previous mineral rights management that you cannot get a big enough lot to really invest in.

“We venture off the continent every now and again, and then scuttle back, as we know where our competitive ad-vantages lie. We are very grateful we did

not do anything in Russia. We have al-ways looked to South America from time to time, as it has a similar geology to West  Africa.

When you balance it all out, and you look at the successes, I am very bullish about Africa. I have always said that

when the march to democracy starts, you cannot stop it. Global communica-tion is too powerful. As soon as you free up the grip of dictatorship or military conflict, the population carries you, and I think that is what we are starting to see now. I am very positive.”

“We venture off the continent (of Africa) every now and again, and then scuttle back, as we know where our competitive advantages lie.” Randgold Resources chief executive

Mark Bristow (third from the left)

PROJECTS IN AFRICA

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Page 28: Inside Mining August 2014

SuperlativeSimandou

Rio Tinto’s Simandou will be the largest

combined iron ore and infrastructure project

ever developed in Africa.

THE PROJECT IS A world-class iron ore mining development lo-cated in the south-east of Guinea and partners include:

• Republic of Guinea, 7.5%• Rio Tinto, 46.57%• Aluminium Corporation of China

(Chinalco), 41.3%• International Finance Corporation

(IFC), 4.625%.Simandou will be the largest combined iron  ore mine and infrastructure pro-ject  ever developed in Africa, with the potential to transform the Guinean economy and its transport infrastruc-ture. Th e  project is comprised of three principal  components:

INSIDE MINING 08 | 201426

PROJECTS IN AFRICA

• a high-grade iron ore mine (Blocks 3 and 4 of Simandou) of 100 million t per year at full production

• a new 650 km trans-Guinean, multi-user railway to transport iron ore to the Guin-ean coast

• a new deep-water multi-user port in the Forécariah prefecture.

Th e infrastructure will be funded, built and owned for 30 years by a new infrastructure company, InfraCo, which will be made up of world-class international investors with the fi nancial resources and technical skills to deliver this large and complex project. Th e infrastructure will be transferred to the Republic of Guinea after the 30-year period has been concluded. New ‘hub

towns’, such as Forécariah, will emerge on the infrastructure route because of the provision of services and business gener-ated by the project.

Significant milestoneA signifi cant milestone was achieved to-wards the end of May when the invest-ment framework for Blocks 3 and 4 of the Simandou project was signed in Co-nakry by the government of Guinea and its partners: Tinto, Chinalco and the IFC. Th is fl agship project will provide Guinea with the opportunity to reap the benefi ts of its rich mineral wealth and transform its wider economy.

A key feature of the investment frame-work is the ‘multi-user’ nature of the transport infrastructure, which means it will be accessible to various Guinean commercial and private users, in order to facilitate cross-country mobility for Guinean people, and boost the economy through enabling the transport of goods inside and outside Guinea to global ex-port markets opened up by the port.

Th e rail and port will diversify the econ-omy and maximise opportunities in sec-tors such as horticulture, agriculture, for-estry and mining. Th e multi-user regime within the investment framework will allow access to mine producers along the Southern Growth Corridor.

Bankable feasibility studyTh e signing marks a signifi cant milestone and provides the legal and commercial foundation for the project. It also allows the project to move towards realising the opportunities it presents for Guinea and all the shareholders. Th e bankable feasi-bility study for the project is expected to be fi nalised within a year of the ratifi ca-tion of the IF, paving the way for project parameters such as cost and timeline.

Th e parties, under the leadership of Rio Tinto, are working together to assemble a consortium of investors who will fi nance, build and own the multi-user 650 km rail-way and deep-water port infrastructure within the agreed timeframe and along procedures laid down by the bankable feasibility study and involving all parties.

When fully operational, the project has the potential to double the country’s cur-rent GDP. Th e project will create signifi -cant employment and, at full capacity, will stimulate an estimated 45  000 jobs throughout the economy. It will also in-duce subcontracting and procurement activities. New and upgraded roads and

TOP Simandou in GuineaBELOW (From left) Jin-Yong Cai, IFC executive vice president and CEO; Alpha Condé, President of the Republic of Guinea; Sam Walsh, chief executive, Rio Tinto

Page 29: Inside Mining August 2014

the development of fi bre and wireless communications will underpin indirect economic development for communities along the infrastructure route, designat-ed the Southern Growth Corridor.

Infrastructure investmentPresident of the Republic of Guinea Alpha Condé said: “With massive infrastructure investment, this project is of critical im-portance for the people of Guinea. It is a nationwide priority that goes beyond the mines and far beyond our generations. With transparent and fair deals, our min-ing sector has the potential to be a game changer for Guinea. Th is project also rep-resents a symbol of our continent’s tre-mendous eff orts to meet its infrastructure challenges and build inclusive growth.”

State Minister of Mines and Geology of the Republic of Guinea Kerfalla Yansané said: “Simandou is one of the largest and best-quality iron ore deposits in the world. It has the potential to provide the global market with highly competitive ore for more than 40 years. Th is estimat-ed $20 billion project, aiming to develop

Blocks 3 and 4 of Simandou along with the associated infrastructure, will boost Guinea’s whole economy and spur our Southern Growth Corridor through min-ing, agriculture, forestry, livestock and trade. It is about unlocking our huge po-tential, supporting our eff orts to tackle poverty through jobs creation and eco-nomic diversifi cation, and becoming more attractive to foreign direct investment.”

Sam Walsh, chief executive of Rio Tin-to, says: “Th is is an important milestone

in the development of this world-class iron ore resource for the benefi t of all shareholders and the people of Guinea. I would like to welcome the government of Guinea as a shareholder and thank the President for his continued commitment to the project.”

Alan Davies, chief executive of dia-monds and minerals, Rio Tinto, says: “Th e signing of the investment frame-work is testimony to the commitment of all the partners.”

ABOUT THE COMPANIESRIO TINTO is a leading international mining group headquartered in the UK, combining Rio Tinto PLC, a London and New York Stock Exchange listed company, and Rio Tinto Limited, listed on the Australian Securities Exchange. Rio Tinto’s business is fi nding, mining, and processing mineral resources. Major products are aluminium, copper, diamonds, thermal and metallurgical coal, uranium, gold, industrial minerals (borax, titanium dioxide and salt) and iron ore.

CHINALCO (the Aluminum Corporation of China) is a pivotal state-owned enterprise, supervised directly by the Chinese central government. It is an international, diversifi ed mineral resources company, and one of the largest diversifi ed metals and mining companies in China. Chinalco conducts exploration and mining, processes various mineral resources and also provides engineering and technical services to the mining industry.

PROJECTS IN AFRICA

INSIDE MINING 08 | 2014 27

Page 30: Inside Mining August 2014

Big pushat Kipushi

SOUTH-EAST OF THE company’s Kamoa discovery, the project is adjacent to the town of Kipushi, and about 30  km south-west

of the provincial capital of Lubumbashi. Ivanplats, now Ivanhoe Mines, acquired a 68% interest in Kipushi in November 2011, and assumed responsibility for ongoing refurbishment, dewatering and drilling. Th e state-owned mining company Gécamines holds the remaining 32% inter-est in Kipushi.

Kipushi is based on a high-grade, underground zinc-cop-per mine in the Central African Copperbelt, which mined about 60 million t, grading 11% zinc and 7% copper, between 1924 and 1993. In addition, the mine produced 12 673 t of lead and about 278 t of germanium between 1956 and 1978.

Work began on the planned diamond-drilling programme in early March 2014, a ma-jor advance made possible by the ongoing dewatering pro-gramme directed by Ivanhoe during the past two-and-a-half years, fol-lowing its acquisition of a 68% interest in Kipushi in November 2011.

Care and maintenanceTh e mine, which had been placed on care and maintenance in 1993, fl ooded in early 2011 due to a lack of pump maintenance over an extended period. Water reached 851 m below surface at its peak. A major milestone was reached in December 2013 when Ivanhoe Mines restored access to the

mine’s principal haulage level at 1 150 m below the surface.

Since gaining access to the 1 150 m lev-el in December last year, crews have been upgrading underground and surface in-frastructure to support the drilling pro-gramme. Two rigs have been conducting underground drilling at the mine, with ongoing dewatering. Access to the critical 1  272  m level hanging-wall drift was ex-pected by the end of quarter two of 2014,

which will allow Ivanhoe Mines to begin the drill programme’s phase of twinning the historical drilling.

High-grade copperTh e next stage of the dewatering pro-gramme is to replace the winding ropes on the Shaft 5 conveyances and re-estab-lish the main pumping station in Shaft 5 at the 1 210 m level for ongoing dewater-ing. Ivanhoe’s 2014 drilling programme is scheduled to complete about 100 holes

totalling more than 20  km, budgeted at $9.8  million. Th e drilling is designed to confi rm and update Kipushi’s estimated historical resources and further expand the resources on strike and at depth.

Big Zinc depositGécamines discovered the Big Zinc de-posit prior to 1993, and it remains un-mined. Historical estimates of the Big Zinc’s resources between the mine’s 1 295 m and 1 500 m levels total 4.7 million  t, averaging 39% zinc and 0.76% copper. Several exploration holes confi rmed the continuation of the Big Zinc deposit below the 1 640 m level. Kipushi’s historical re-source estimates above the 1 500 m level total about 17 million t, averaging 16.7% zinc and 2.3% copper, including Big Zinc’s historical resources.

Ivanhoe Mines executive chairmanRobert Friedland says that the fi rst batch of assay results have confi rmed initial visual estimates of high-grade zinc and copper mineralisation in both the Big Zinc and copper-rich Série Récurrente zones. “Th ese initial assay results high-light the remarkable metal endowment of the mineralisation extending below the Kipushi deposit as previously mined by Gécamines,” comments Friedland.

“At current spot prices of about $2 000 a kilogram for germanium and $21 an ounce for silver, we expect the germanium and silver grades could add to the overall metal value at Kipushi,” says Ivanhoe Mines CEO Lars-Eric Johansson. “Sulphur content, particularly in the Big Zinc, also represents a potentially signifi cant value addi-tion, given the scarcity of prima-ry sulphur supply in the Copper-belt region, and the demand for acid in conventional in-country oxide recovery circuits.”

Underground and surface infrastructure

Ivanhoe Mines continues to upgrade un-derground and surface infrastructure to support the drilling programme, and pre-pare the mine for potential future rede-velopment and operations, subject to en-gineering and other studies. Th e mine has been dewatered to the 1 305 m level on the Cascade side (Shafts 1 to 4), where drilling operations are taking place.

Th e scope of drilling has been expanded to evaluate the high-grade, copper-rich Série Récurrente zone. Th e 1  272  m

Ivanhoe Mines will complete about 100 holes totalling

more than 20 km, budgeted at $9.8 million

Ivanhoe Mines has announced the fi rst batch of assay results from its underground diamond-drilling programme at its Kipushi project in Katanga, DRC.

PROJECTS IN AFRICA

INSIDE MINING 08 | 201428

Page 31: Inside Mining August 2014

Don’t Miss CIMEOGIS 2014

To download event brochure, sponsorship brochure and registration forms, visit www.cotedivoiresummit.com or contact us below:

Who Attends?

Mining Companies;Oil & Gas Companies;Energy Companies;Infrastructure Companies;Utilities;Service Providers;Regulators and Policy Makers;IPPs;Financiers;Private Equity Firms;Project Developers;Contractors;

Other Relevant Stakeholders.

COTE D’IVOIRE OFFICE:Roland Kouakou

4 Grand Bassam, Cote d’ivoireCIMEOGIS 2014 Organising MemberTel: +225 4949 7625Email: [email protected]

SOUTH AFRICA OFFICE:

Tel: +27 11 051 6133 Cell: +27 83 884 2283, +27 84 052 5561Email: [email protected] or [email protected]: www.cotedivoiresummit.com

Cote d’Ivoire’s International Mining, Energy/Oil & Gas and Infrastructure Summit (CIMEOGIS 2014)

ENDORSED BY:Ministry of Industry & Mines

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The Cote d’Ivoire government has adopted a pragmatic investment policy which is designed to enhance investment in the mining, energy/oil & gas and infrastructure industries and to ensure the development of a self-sustaining extractive industry.

INSIDE MINING 08 | 2014 29

PROJECTS IN AFRICA

level hanging-wall drill drift has been dewatered and is being prepared for drill access. Drilling from this level is expected to commence once the Série Récurrente programme is completed. Th is drill access will facilitate detailed confi rmatory and exploratory deep drilling of the Big Zinc, and of down-plunge unmined extensions to the copper-rich northern portion of the historical Kipushi deposit.

Also on the Cascade side, a water dam is being constructed on the 1 112 m level to reduce pumping requirements. Fabrication of a new ventilation fan for Shaft 4 is com-plete, with the fan to be commissioned later this month. Refurbishment of Shaft 5 is on-going, with replacement of the hoist ropes. Resumed operations at Shaft 5 will facili-tate the refurbishment of the main pump station at the bottom of the shaft, improv-ing the effi ciency of pumping operations, and delivery of mechanised underground equipment to the active part of the mine.

Previous miningPrevious mining at Kipushi was conducted from surface to about the 1  220  m level,

with mineralisation projected to extend to 1  800  m below surface, based on Gé-camines’ drilling. Mining historically oc-curred mainly within three contiguous zones: the northern and southern zones of the approximately north-south strik-ing, about 70° west-dipping Kipushi fault, and the approximately east-west striking, steeply north-dipping Série Récurrente zone in the footwall of the fault. Th e Série Récurrente derives its name from the geological formation with which it is associated, characterised by a series of alternating (recurring) beds of dolomite and siltstone/shale.

High-grade copper was particularly well developed in the North and Série Récur-rente zones. Historically, Gécamines re-ferred to a portion of the North zone as the Nord Riche (Northern Rich) area, which occurred at the structural junction of the Kipushi Fault and the Série Récurrente zone. Th e Nord Riche area has been incom-pletely explored below previous workings. Historical underground mine plans show that mineralisation in the Nord Riche area was signifi cantly thicker than in the

Série Récurrente area where Ivanhoe has been drilling.

To date, Ivanhoe has been unable to ex-plore for extensions of the Nord Riche area due to a lack of suitably positioned under-ground drilling stations in the footwall of the Kipushi Fault. However, dewatering and re-establishment of drill stations on the 1  272  m level hanging-wall drift and crosscut, and along the deeper portions of the access decline, will allow Ivanhoe to explore down-plunge extensions of this area.

Ivanhoe Mines executive chairman Robert Friedland

Page 32: Inside Mining August 2014

Smart savings

Tschudi is a greenfi eld heap leach SX/EW copper project for Weatherly International, which has two operating copper mines at Otjihase and Matchless.

MINERALS PROCESSING

ITS TWO OTHER projects are Tsumeb West and Tsumeb Tailings. Th e over-all project, which includes opening up the mine, is valued at R800  million.

First copper is expected to be produced by quarter two of 2015.

Managing director Nicholas Beukes and CEO Sharadh Padayachi of Logiman tell Inside Mining that the Tschudi pro-ject was initially priced in the market at R1.2 billion. “By sitting down, thinking it through and applying ourselves, we were able to chop hundreds of millions of rands off this number,” says Beukes.

He confi rms that the project is within budget and on schedule. “It is lined up for success. We have a good team on-site and in our Johannesburg offi ce, so we hope to be able to turn the fortunes of Weather-ly International around and, at the same time, cement our place in the market as the company able to provide project solutions. Weatherly International came to us to get a better number. We were able to give it to them and secure the work.”

Beukes says that Logiman is already well-established on-site. “All our sub-con-tracts have essentially been placed and the earthworks are well underway. Th e construction camp is up and running and most of the ordered goods and material will begin to arrive soon. We are on track, and we are very proud of that.”

Weatherly International says that the much-anticipated Tschudi mine is now around 57% complete. Output from Tschu-di will augment production from the Cen-tral Operations, which delivered record results following the drive to improve productivity and reduce operating costs. Fourth quarter production of 1  507 t of copper contained in concentrates was the highest quarterly result since the mines were reopened in 2011. Th e cash cost was $5 710/t, the lowest level in two years.

Chief executive Rod Webster says: “We are delighted that our production guidance in May has been met and we expect further improvements in the next quarter as pri-mary stoping in the Hoff nung Fault West area starts to have an impact.”

Weatherly International says it has paid off $550  000 of the working capital loan owed to Orion Mine Finance, which now

TOP Dignitaries at the Tschudi groundbreaking in November 2013LEFT Tschudi site aerial viewOPPOSITE TOP Construction at Tschudi is well under way

INSIDE MINING 08 | 201430

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INSIDE MINING 08 | 2014 31

stands at $1.38 million. In June, Logiman, the engineering com-pany constructing the Tschudi plant, subscribed for £1.7 million in shares in Weatherly International.

Th e production numbers indicate that Weatherly is ‘well posi-tioned’ to achieve its targeted 7 000 t/year production run rate at the Central Operations, thanks to its improved mining method, better labour management and the opening up of new mining ar-eas. At Tschudi, a further $11.7 million was spent, with a further $33.6 million of its facility undrawn.

“Th is is a great vote of confi dence in both the management and the project itself, especially given the fact that Logiman bought the shares at a signifi cant premium to the market,” an analyst commented.

Logiman was established in 2007 with fi ve members, and has now grown to a staff complement of 52, with double-digit growth year-on-year. Its core business is project development within the mining and mineral space. “I use the term ‘project development’ because it is a little bit more than the traditional engineering procurement and construction management model. Much of our work is fi xed-price lump sum turnkey risk-type projects,” notes Beukes.

Th e company’s in-house skill set runs the gamut of engineering disciplines, from mechanical to civil, process, electrical and instru-mentation. It also has a fully fl edged design offi ce producing drawings and coordinating project and construction man-agement services. It focuses on the gold, platinum, chrome, coal, copper and uranium sectors, and has worked for many of the mining majors, from Gold Fields to Amplats, Lonmin, Paladin Energy and Sasol Mining.

In terms of its involvement in Africa, Beukes comments: “We have taken a very fl exible approach in that we go where the work is. We have done work in Malawi and are busy in Namibia. We have done some design for the DRC and Tan-zania, and have looked at opportunities in other parts of Southern Africa.

“We have not done any work in West Africa, as that is something that has not come across our doorstep just yet. But we certainly take a broad view on it. We feel very com-fortable in the Southern African region, and that includes South Africa. Probably on average about 50% of our work is over the border, but it varies from year to year and project to project.”

Th e company’s competitive edge in the market is due to “a very good understanding of the construction side, and be-cause of that we are able to reduce the costs quite signifi -cantly.” Th e dramatic reduction in the Tschudi price tag was “based purely on our knowledge of construction. We have taken full responsibility for certain aspects of the construc-tion,” says Padayachi, explaining that the project has a dedi-cated construction team in place.

Beukes acknowledges that “mining is in a diffi cult place right now. We have been able to secure work in the fi eld by being able to off er really competitive prices, assuming the risk ourselves, and obviously by understanding that risk and being able to give pretty deep discounts on the overall con-struction of the project by being able to optimise what we are

doing and getting it right the fi rst time.“Th at boils down to a deep understanding of what is actually

required to build whatever plant it is, coupled with the trust and skill we have in our team here in this offi ce. One of the key success fac-tors for us is that the team here, the designers, engi-

neers and construction personnel, the planners and all the sup-port staff , are all highly talented and committed to doing a good job, and that makes a huge diff erence in terms of our success in delivering for our clients,” says Beukes.

The much-anticipated Tschudi copper mine is

now 57% complete

MINERALS PROCESSING

Page 34: Inside Mining August 2014

AROUND THE GLOBE

More BANG for your buck

“With commodity prices under pres-sure at the moment, in addition to the trend of opencast operations being con-verted to underground mining as easily accessible reserves are depleted, we will see that innovation extending to loading capabilities underground.

“In Indonesia, AEL brings in skilled drill-and-blast engineers on board in order to optimise our clients’ opera-tions, starting from the drilling, with supervising and technical recommen-dations that form the baseline to ap-ply such technology. Usually one of the issues is going with the latest det-onation technology, but if the mining basics are not correct, the outcome will not be as expected. One of the challenges is to get those basics right,

so we can bring benefits directly to our clients as well as to ourselves, including more safety on bench, easier loading and improved coordination.

Major coal exporterPaz is based in Indonesia, which is a ma-jor coal exporter with the world’s  fifth largest reserves. “It is the largest econ-omy in South East Asia, and is growing

THE KEY TO significant savings in drill-and-blast operations is investing in new technolo-gies and solutions, which can

unlock benefits further downstream in mining operations, says Carlos Paz, technical manager at AEL Indonesia. He speaks exclusively to Inside Mining on the sidelines of an internal AEL con-ference in Johannesburg.

“Every explosives company will be looking at its own technology and its commercialisation in order to be able to achieve that. It is finding where the gap is with the customer, bring-ing it in from R&D, commercialising it, getting the people trained, and then applying it. Larger companies like AEL are looking into that.”

AEL spends about 4% of its turnover on R&D, which is a major driver for the company. “These R&D projects differ-entiate AEL in the marketplace. It is quite inspiring for the technical teams to see R&D push, especially as it indi-cates a singular commitment towards our customers,” says Paz. He adds that it is important to strike a necessary bal-ance between meeting clients’ needs and

AEL Indonesia has embarked

on various projects to

optimise drill-and-blast

operations for its customers

globally, says Carlos Paz.

By Gerhard Hope

developing the technological capabilities of the company.

Latest trends in miningPaz points out that more and more com-panies are set to optimise load-and-haul and crushing operations. “One of the drivers here is drill-and-blast, where

new, cost-efficient initiatives such as electronic initiation and customised density products come into play. It also involves customising the energy of the explosives for every application. For ex-ample, it is ideal to crush metalliferous ore on the bench. This means you need to increase the energy level of the explo-sives, in order to fragment the material before it reaches the crusher.

INSIDE MINING 08 | 201432

“If the mining basics are not correct, you

will have issues. One of the challenges

is to get those basics right.”

Page 35: Inside Mining August 2014

AROUND THE GLOBE

at about 5% to 6% a year. It is a very rich country in terms of minerals.  There are large coal-mining areas, providing 83% of AEL’s business in this country.

“Hopefully in the next months we will be starting a non-coal operation in South Sumatra, with both a surface and an un-derground operation, namely Sumatra Copper & Gold. One of the challenges for AEL in Indonesia is to diversify its port-folio. There are also big opportunities in metalliferous mining.

“There are high hopes for the Indo-nesian market, and it continues to be-come more and more competitive. The coal price has been declining, and that is making us even more proactive. We need to add even more value because our clients are asking for effective solutions.

Ammonium nitrate plantA particular initiative in this regard is the establishment, in joint venture with BBRI, of an ammonium nitrate solution plant in Indonesia for the Asia Pacifi c market, which will render it self-suffi -cient in explosives ingredients. “It will al-low us to off er integrated solutions, with huge benefi ts for our clients, as they will no longer have to rely on external supply. Th is will provide them with explosives closer on hand to their sites that are of an international quality.”

AEL Indonesia has also markedly in-creased its uptake of used oil, with 80% of recycled oil now being utilised in the manufacture of its base emulsion. “There are huge volumes available in In-donesia, with added benefits for our cus-tomers,” comments Paz. The used oil is taken from equipment, transferred into

tanks and left to stand for eight hours, whereafter the impurities are drained off and it is blended with virgin fuels. “Not only are you saving on raw mate-rials, but the disposal of those oils is a costly environmental challenge.”

AEL Indonesia is capable of offering a one-stop service. “We are creating partnerships with some of our clients and are running a two-year project with Leighton Contractors of Australia. It has been a great success, specifically in terms of improving overburden removal. This partnership has enabled AEL to be seen as a premium supplier of explosives and solutions. It is not only products; it is leveraging solutions; it is technical support, with assistance from drilling to blast analysis. It goes into mine plan-ning, maximising the blast size, as it can be customised accordingly.”

OPPOSITE AEL brings in skilled drill-and-blast engineers to optimise operations

INSIDE MINING 08 | 2014 33

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COMPANY PROFILE

INSIDE MINING 08 | 201434

MANITOU HAS A complete range of automotive and mechanical machinery and implements that include

the world’s largest telescopic handler, the 35 t lift MHT-X 14350.

With the unique ability to modify its French-engineered machinery for South-ern African mining, 2014 sees Manitou Southern Africa expanding its under-ground mining inventory, with several new innovations, all of which encapsulate the company’s reputation of high perfor-mance levels, improved safety standards and lower operational costs throughout the life cycle of a mine. Manitou engineers machines that perform in rough and haz-ardous environments to their full per-formance capacity with maximum levels of safety.

Manitou’s mining equipment range• Telehandlers: Th ese machines are char-acterised by their rough-terrain power, ability, manoeuvrability and versatility, with lift from 2.3 to 35 t on a range of duplex and articulated turret lengths. Th e MRT range with stabilisers features 360° rotation for even greater versatility and  performance.• Conveyor belt handler: Manitou’s con-veyor belt handler accepts belt reels of all widths, and can integrate winders and reel clamps to improve productivity of con-veyor transporting and laying. A conveyor

belt saw attachment enables a safer cutting opera-

tion 15 times faster than conventional belt hand-sawing.

• Tyre handler: Th e Manitou tyre handler delivers safer, more productive

and cost-effi cient tyre maintenance on large dump trucks, load haul dumps and industrial utility vehicles. Eight hydrau-lically powered movements provide ver-satile, three dimensional handle ability of conventional, chained and foam-fi lled tyres of various dimensions.• Truck-mounted forklifts: Th e

truck-mounted forklift off ers both a fi xed handling solution to process loading and offl oading of heavy materials from the truck rear, but can also be detached for conventional forklift operation, with up to 2.5 t lift at 3.3 m.

MANITOU

From a lineage of innovation that includes the construction of the world’s first all-terrain forklift in 1958, Manitou Southern Africa continues to define the forefront of materials handling equipment.

MANITOU

made for mining

TOP The Manitou tyre handler enhances tyre maintenance for tyres of various dimensions

LEFT The world’s largest telehandler: 35 t lift capacity with a height reach of 13.6 m

1

Page 37: Inside Mining August 2014

• Rough-terrain and conventional forklifts: Rough-terrain and conven-tional forklifts are available in electric and diesel/LPG variations and have lifting capacities of up to 7 t at 4 m in height. Th ese forklifts feature compact designs that enable them to operate in confi ned spaces.

• Loaders – skid steer, articulated track: Th ese Gehl machines are com-pact, rigid-framed, engine-powered, rough-terrain material loaders with lift turrets for attaching a wide variety of tools or attachments. Th e Gehl loaders deliver versatile yet powerful lift func-tionality for spatially constrained materi-al handling applications.

• Access platforms: Manitou’s large-ar-ea articulated and vertical access plat-forms and scissor lifts in electric- and diesel-powered confi gurations enhance access to elevated, locations. Twenty plat-form confi gurations guarantee an access solution suited for your requirements, whether these are defi ned by reach or load, confi ned space or power preferenc-es – all with maximum safety.

• Attachments: Machine attachments al-low a single vehicle to fulfi l the function of many, eliminating the need for stan-dalone, dedicated solutions. Th e larger telehandlers feature an automatic attach-ment recognition system, which enables these vehicles to calibrate weight limits and envelope tolerances for enhanced safety in every application. If required, Manitou’s engineers and designers will carefully customise attachments for the specifi c application and safety require-ments of the customer’s operation.

Performance anchored in safetyMinespec technologies for hard-rock mining include an array of mechanical and component solutions that equip ma-chines for rigid, rocky terrain operabili-ty and improve underground air quality through the inclusion of catalytic fume fi lters and diluters for greater compliance with health, safety, environmental and productivity regulations.

Flameproof technology for fi ery soft-rock mines includes an additional ar-ray of combustion traps that limit the possibility of components igniting fi nely dispersed coal dust in hazardous underground  environments.

Apart from modifying its machines for enhanced underground performance, Manitou’s vehicles are equipped with failsafe brake systems, which halt the

machines at inclines of up to 17° with a friction coeffi cient of no less than 0.3 and auxiliary brakes. Manitou machinery carries a series of internationally recog-nised and locally specifi c certifi cations and accreditations.

A total materials handling solutionManitou prides itself on its after-sales ser-vice and support. From nine service deal-ers located across South Africa off ering a 95% parts retention, Manitou supports its products with ongoing maintenance, and 24-hour technical dispatch, with a critical

breakdown response of four hours. For larger mining operations, Manitou sets up on-site service centres.

The Manitou International Mining Club (MIMC)Th e MIMC assembles industry members from each mining sector to collaborate on technological advancements and industry trends. Th e 2014 MIMC will coincide with Electra Mining Africa 2014, hosting 40 key industry members to discuss, experi-ence and evaluate the latest Manitou min-ing technologies.

INSIDE MINING 08 | 2014 35

COMPANY PROFILE

1 The world’s largest telehandler: the supersize MHT-X 14350 (opposite page) With a maximum lift of 35 t on its 14-m duplex turret, the MHT-X 14350 combines all-terrain operability and ergonomic designs with exceptional handling capabilities for the lifting of massive deadweight loads. A 7.2 l, 6-cylinder Mercedes-Benz engine delivers 240 kW of all-terrain handling force and a massive torsional rating of 1 300 Nm to handling operations.

In spite of its overall size and 68-tonne tare weight, a conventional turning radius of 7.34 m coupled to a steering confi guration enabling two-wheel, four-wheel and crab steering functionality delivers a high level of manoeuvrability.

The MHT-X 14350 incorporates an array of safety features designed to minimise the dangers of operating large mobile machinery, including ROPS- and FOPS-compliant cabin housing; front and rear awareness cameras; ergonomic cabin designs and the 3B6 Load State Monitoring System.

2 ManiTrax Tow Tractor The ManiTrax Tow Tractor is a utility vehicle for hauling, towing and transporting equipment, tools, skids and tanks. This tow tractor is designed for maximum manoeuvrability, with full four-wheel and crab steering functionality allied to sleeker, more compact exterior designs, while retaining exceptional hauling capacities. The fl exibility of the vehicle design enables wide scope for modifi cations and optimisations for a variety of process-enhancing functions.

3 Manitou Scaler As required by South African mining law, the Manitou Scaler enables operators to scale detonated hard and soft rock from secure areas on a seven metre, 180° rotational turret, either from

within its fully enclosed cabin, or from up to 20 m away via remote control for maximum safety. The scaler has secondary functions in pipe and cylinder fi tment, mesh erection and the destruction of large rocks.

4 Manitou Roof Bolter The Manitou Roof Bolter is an automated drill and bolt rig that operates in confi ned soft and hard rock hanging walls as low as 1.8 m. The Roof Bolter comprises a single rotating carousel head carrying six roof bolts, and enables drilling, automatic epoxy insertion and bolting functions in a single procedure, enhancing bolting capabilities and effecting savings.

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NEW ADDITIONS TO MANITOU’S MINING EQUIPMENT RANGE

Page 38: Inside Mining August 2014

Flameproof range

Page 39: Inside Mining August 2014

Creating shockwavesSelfrag AG of Switzerland has developed a unique technology based on high-voltage pulse power aimed at revolutionising the comminution process within the mining industry.

THE COMPANY HAS already sold a number of batch units to institutes around the world, including the globally  re-

nowned Julius Kruttschnitt Mineral Research Centre in Australia. Th ey are now in the process of developing an in-dustrialised, continuous system for mining applications.

Th is high-voltage fragmentation is a revolutionary comminution technique that uses electrical discharges to weak-en and/or fragment rocks. Specialised high-voltage generators are used to cre-ate very powerful underwater high-volt-age discharges, resulting in the forma-tion of shockwaves that cause widespread fracturing inside the aff ected particle.

Fracture patterns generated by high-voltage breakage resemble those re-sulting from normal blasting, indicating that high-voltage fragmentation can be thought of as a smaller-scale analogue of normal blasting using  explosives.

Th e method has two major advantages over conventional comminution. First, the interaction between minerals and the induced electrical and mechanical stress fi elds inside a rock matrix is highly selec-tive. Th is makes such high-voltage frag-mentation exceptional at liberating min-erals; ores treated using between 1 and 10 kWh/t are generally liberated coarser and more selectively.

Th is improves concentrate quality for nickel and copper ores. Alternatively,

TECHNOLOGY

this improved liberation may be used to increase the grind size of an ore, which represents a considerable energy saving. The Selfrag Lab system, sold to geology and mining institutes, has proven suc-cessful in liberating zircons and other minerals for dating of rocks.

Second, it has the ability to weaken rocks using small energy inputs; ener-gy inputs of 1 to 4 kWh/t, typically give weakening values of up to 160% (based on an increase in A*b values and bond reductions in the range of 5% to 20%.

JKSimMet simulations have demon-strated that these strength reduc-tions can result in significant overall energy savings.

In the case of a SABC circuit with two ball mills, power draw of the SAG mill was kept constant to produce a finer product from the weakened feed; this change in the circuit power balance was sufficient to allow shutdown of one of two ball mills, resulting in significant

power savings as well as considerable re-ductions in other costs such as grinding media and liners.

“At Selfrag, we currently have a pilot plant capable of processing up to three tonnes per hour, explains CEO Frédéric von der Weid. We have been using this plant for internal development, as well as processing of bulk samples for mining and exploration companies. In the last six months, third-party projects have included platinum, copper, gold and silver applications.

“We have also already completed engi-neering work on a modular 10 tph pilot unit; this modular design represents a scalable concept allowing for through-puts of 100 tph or more to be reached,” says Von der Weid. Selfrag also offers services in high-voltage characterisation of ores to the mining  industry.

In addition to mining applications, Sel-frag is also actively developing explora-tion solutions for the diamond market, machines for the recycling of a wide va-riety of feed stocks, and units suitable for ultra-high purity fragmentation ap-plications such as silicon rod crushing. Its batch lab unit is already installed in over 20 institutes around the globe, in countries such as Australia, Japan, China, North America and Brazil.

Selfrag CEO Frédéric von der Weid with the Selfrag Lab – the fi rst commercial high-voltage pulse power laboratory equipment for selective fragmentation

High-voltage fragmentation is a revolutionary comminution technique to

weaken and/or fragment rocks.

INSIDE MINING 08 | 2014 37

Page 40: Inside Mining August 2014

A new coal export rail link that will boost both the Mozambican and Malawian economies is a flagship project for Pilot Crushtec International.

INFRASTRUCTURE

THE NEW RAIL link will ex-tend from Tete in north-cen-tral Mozambique through Malawi to the port of Nacala

capacity to meet the project’s needs in two important areas.

Jaw crusher“First, it is able to process up to -63 mm material from a jaw crusher working at maximum capacity in a single pass. Sec-ond, the quality and quantity of its out-put is exceptionally high, namely that it produces well-shaped material, accom-panied by a minimum quantity of fines,” says Warren.

The outcome was the customer’s in-vestment in a complete suite of Sandvik products, which, in keeping with Pilot Crushtec International’s Southern Afri-ca distributorship credentials, were all available ex-stock with full installation backup. The three products constitute a primary crusher QJ341 mobile jaw crush-er that feeds the US440i. The US440i heavy-duty cone then, in turn, sends

the crushed material through to the QA451 triple-deck screen.

Oversize materialAll oversize material is fed directly back to the US440i on the screen’s oversize belt, which min-imises the rehandling

Making tracks

“The required size is too small to be produced by a jaw crusher in high volumes and too large for a conventional cone crusher.” Wayne Warren, Africa

sales manager, Pilot Crushtec International.

INSIDE MINING 08 | 201438

on the Mozambique coast. Its prima-ry function will be to act as a conduit for the shipment of coal destined for export markets.

Africa sales manager Wayne Warren ex-plains that a Sandvik US440i heavy-duty cone was supplied to meet a customer’s specific need for -63  mm stone for use as rail ballast material. “The required size is too small to be produced by a jaw crusher in high volumes and too large for a conventional cone crusher to pro-duce without over crushing and generat-ing an excess amount of waste.

“Our partnership with Sandvik has given us access to the US440i, a product designed to meet these circumstances and something we believe will add value to many of our customers’ operations.” The client was invited to South Afri-ca to see the cone crusher in operation and executives were impressed by its

Page 41: Inside Mining August 2014

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of the final product. The combination is achieving results well beyond the customer’s original expectations. Warren explains that the crusher’s large close-size setting allows it to reliably deliver up to 150 t of well-shaped rail ballast an hour.

The remoteness of the site was not an obstacle, even though all three tracked machines had to be trammed the final few kilometres to their destination. The installation and commissioning process, conducted by a joint team of Sandvik and Pilot Crushtec International personnel, took place without a hitch, clear evidence that the products and technical backup proved more than a match for the most severe African conditions.

$17 BILLION IN TRANSPORT PROJECTSTransport projects worth $17 billion are in the pipeline in Mozambique, according to PwC’s ‘Africa gearing up’ report. These include additional rail links to ports, as well as expanding port capacities to allow for greater exports, mainly for the natural resource sectors. Transport infrastructure is mostly being developed transversally (that is, west-east) connecting mining and agricultural clusters in Mozambique and neighbouring countries to exit ports. The central transport infrastructure extends from the Port of Beira to Zimbabwe, and marginally to Malawi and Zambia.

The concentration of urban population in Maputo means that this will continue to be the hub for infrastructure development projects over the medium term. The southern transport network links the Port of Maputo to the north-eastern part of South Africa, Swaziland and Zimbabwe. These two ‘transport clusters’ are, however, only connected by road.

Despite good port performance and considerable upgrades, demand will not be properly met. There are seven main seaports in Mozambique, of which Maputo, Beira and Nacala are the most important. All of these have functioning rail linkages to the hinterland and neighbouring countries via the rail network, as well as adequate road linkages.

Sandvik US440i heavy-duty cone crusher supplied by Pilot Crushtec International to meet a customer’s specifi c need for use as rail ballast material

INSIDE MINING 08 | 2014 39

Page 42: Inside Mining August 2014

HATCH GOBA (a member of the Hatch group of compa-nies) is so confi dent about this achievement that it is already

approaching various clients in this regard. “We are currently busy proving it on a number of shafts. I do not think clients realise what a major improvement this can yield in terms of the limited expenditure it requires,” says Lister Sinclair, director for mining and mineral processing in Africa.

Th is is the result of a constant focus on innovation and improvement, which has seen the Hatch logo featured prominently on the Williams Formula 1 racing car. “It is a mindset as well as a philosophy. In the past there has been a focus on major pro-jects as opposed to a focus on operational support and improvement. In our region, this aspect is gaining momentum. It is be-ing driven by high power and labour costs, as well as the labour disruptions, making it an imperative for the industry to actual-ly change the way it thinks.”

Th is implies looking beyond business as usual. “It is about adding value, which means improvement in costs, safety and  productivity,” says Sinclair. “In Aus-tralia, we have been delivering that kind of support to various clients for years. It is bread-and-butter work for us.” Th is has become such a critical driver for the com-pany that it now actively pursues those opportunities where it can put its technol-ogies to good use.

UNDERGROUND DEVELOPMENT

Deep innovationEmbracing innovation can result in a 10% to 30% increase in productivity

on any particular shaft, according to Lister Sinclair from Hatch Goba.

By Gerhard Hope

Smart team“We put together a ‘smart team’ for our cli-ent. Th e skills composition of such a team is vital, as we do not want to merely regur-gitate what the industry has been doing for the last century. We are excited about it, and our clients are more receptive than they were before. It is seen as a real val-ue-add, if not an absolute necessity.”

Hatch Goba employs 22 mining engi-neers in Africa at pres-ent and over 50 global-ly, but its current work-load in terms of mine design and scheduling is such that it is actively recruiting an additional four to fi ve at present. “We fi nd we have to pull in skills from associat-ed companies we work with if we do not have suffi cient capacity.” An example of its current work includes optimis-ing operations for a Tanzanian client. “Th ey want to lower costs and boost productivity, and have identifi ed a slew of projects in this re-gard with which we are helping them.”

Having such proactive clients that are open

to innovation and technology is a boon. Sinclair adds, however, that this has in-creasingly become a business imperative. “If you do not innovate in this day and age, especially with the level of the com-modity prices at present, your scenario is short-term at best and not sustainable. In addition, it is not adding any value to client shareholders.”

Technology partnerHatch Goba has been act-ing as a technology part-ner for a core client for a number of years now, with the main focus being on mining safely and eco-nomically at ultra-depths of 4  000 m and below. “I am unsure how many of our deep-level gold mines will still be operational af-ter 2019. Th is will largely be determined by the gold price. At the current price, it is not looking too rosy in the future, unless you ap-ply innovative technologies and forward thinking to reduce costs and enhance mine safety.”

Th is is why Hatch Goba “prides itself on being an innovative company”, with its main target areas

“If you do not innovate in this day and age... your scenario is short-term at best and not sustainable.” Lister Sinclair, director for mining and mineral processing in Africa at Hatch Goba

INSIDE MINING 08 | 201440

Page 43: Inside Mining August 2014

being operational support and improve-ment. “R&D spend is a major focus,” says Sinclair. “Our furnace technology group is one area where we have trademarked technologies used around the globe. We are always looking at other areas of min-ing, such as hoisting, either by entering into joint ventures with manufacturers, or identifying and branding technologies by ourselves. An important part of our turn-over is generated by technologies that we have developed.”

A showcase of Hatch Go-ba’s international stand-ing in this regard has been its eight-year involvement with the South Deep gold mine, which has clocked up a series of impressive world fi rsts, such as the biggest steel headgear in the world and the largest winders ever installed. “In terms of the anatomy of a typical underground or surface mine in South Africa, there is nothing we cannot undertake. We have the infrastructure and skill sets to design and project manage, in-cluding operational sup-port of any mining ven-ture, be it greenfi eld or brownfi eld sites. We have specialist metallurgical and hoisting engineers, among others, to carry out the designs; then un-derground we can carry out the full spectrum of engineering, such as mine planning and sched-uling designs, including shaft sinking, loading stations, pump cham-bers and all associated underground infrastruc-ture,” explains Sinclair.

Desktop studiesWith a dearth of invest-ment for new projects, and extremely tight time-frames, a major trend at the moment is for some mining companies to cut down on lengthy study

costs and times by carrying out their own high-level desktop feasibility studies. Funds will typically be decided on for such a project upon completion of the desktop study, including a margin for contingency, “because the engineering would not have been carried out to the degree we would normally have done it, so we simply come along and execute the project.”

Sinclair says that this approach does en-tail a special relationship with the client and a high degree of trust. “Th ey have got to know you have the skill sets to deliver as promised, that you have a history of doing

this, and that you are capable of taking such a relationship forward.” Sinclair says that Hatch Goba has tackled various pro-jects of this nature in Zambia and the DRC. “It is important to understand and control the margin of error involved, which allows you to migrate into the execution phase.

“Th is new approach is a major change from the tried-and-tested way of doing ‘projects by phases’, where you end up studying the project to the nth degree, thus minimising risk. I think those days for some of our clients are largely some-thing of the past.

OPPOSITE The risks facing the mining and metals sector in Africa have become extreme and complex

UNDERGROUND DEVELOPMENT

Page 44: Inside Mining August 2014

INSIDE MINING 08 | 201442

THE GROUP’S

S C R E E N I N G

capability took a major step for-

ward in 2012 with the ac-quisition of Ludowici, the leading provider of refl ux classifi ers, coal centrifug-es, vibrating screens and complementary wear-re-sistant products and ser-vices in the minerals in-dustry. Th is has allowed FLSmidth to complete its coal-processing fl ow sheet and to complement its copper and iron ore-processing off erings with leading technologies.

“Our principal screening and feeding installations in Africa are in Ghana, Zambia and Mozambique. We are currently busy with a very large project that will showcase our capability in this fi eld in South Africa,” says Ju-rgen Cneut, FLSmidth technology specialist: vibrating equipment.

Th e group’s technolo-gy centre for screening and vibrating equipment is located in Brisbane, Australia, where ongoing R&D is focused on devel-oping new designs and manufacturing processes to boost effi ciencies and optimise designs, while maintaining the product quality to which the mar-ket is accustomed.

FLSmidth South Africa is one of the few vibrating screen manufacturers to have its own in-house panel manufacturing oper-ation under the FLSmidth Screen Media (formerly Meshcape) brand. Research into combining the company’s Ludowici and Meshcape panel designs is progressing rapidly, and aims to boost the durability of the end product to achieve a reduced total cost of ownership for customers.

A major benefi t to the local market is that screening and vibrating equipment is manufactured at FLSmidth’s Supercenter in Delmas, Mpumalanga, which exists as a multifaceted hub for FLSmidth activities throughout Southern Africa. “Th e major drivers are saving costs and providing local

COMMINUTION

drives used on the bigger banana screens.

“In addition to the stand-ard designs in the range, we are also able to tailor screens to suit individual customer applications,” adds Cneut. “For example, we have just completed a year-long test of a 4.8 m-wide screen designed for the coal industry, proving that a screen of this size can work extremely effi ciently over the long term. Anoth-er recently completed large screen, destined for a custom-er in South America, is a dou-ble-deck unit weighing 54 t.”

Th e FLSmidth Ludowici range of vibrating equipment comprises primarily linear motion, high-G-force and heavy-duty designs suitable for all mining and miner-al-processing applications. Sizes range from 0.6 m to 4.8  m wide, with lengths from 1.2  m to 11  m. Th e range largely consists of me-dium- and heavy-duty vibrat-ing screens, primary grizzly feeders and medium- and heavy-duty vibrating feeders. Also of interest in the prod-uct range is the FLSmidth Ludowici Jetslinger, which distributes free-fl owing bulk materials, inaccessible by other mechanical means, to form storage piles and the FLSmidth Ludowici stockpile discharger, which facilitates a controlled out-loading rate of

up to 8 000 t of coal per hour. Th e stockpile discharger eff ectively prevents rat-holing and bridging of the material to achieve a greater live area in the stockpile.

FLSmidth is the African market leader in the supply of centrifuges, boasting an un-equalled track record of performance and reliability. Th e range includes coarse- and fi ne-coal centrifuges, with benefi ts such as high capacity, advanced technology, durability, value and effi ciency. All centri-fuges are backed by professional support and on-site service. Th e fi ne-screen prod-uct range is completed by the company’s innovative Refl ux Classifi er technology, now accepted as the preferred fi nes gravity separator by the major global producers of metallurgical coal.

support, including inventory holding, to customers,” says Cneut. “Manufacturing these products locally speeds up the entire supply chain.”

FLSmidth screening and vibrating equipment is distinguished in the mar-ketplace by its robust design that deliv-ers a longer lifespan and incorporates unique features, such as an integral feed box as a separate component from the screen unit, which can be replaced with-out the need to cut or modify the screen. Th e unit simply unbolts from the screen frame and is replaced with a new one. FLSmidth is one of only a few companies to off er this design feature in Africa. Th e company is also distinguished by design-ing and manufacturing a range of exciter

Screens for Africa

FLSmidth is seeing an increasing installed base across mineral processes and commodities in several countries

on the continent.

Page 45: Inside Mining August 2014

Many SolutionsMany SolutionsMany SolutionsFLSmidth is your One Source for crushing, grinding, classifying, thickening,

clarifying, slurry handling, flotation, mine shaft systems, pyroprocessing, material

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Page 46: Inside Mining August 2014

Good vibrations

MANAGING DIRECTOR

Mark Houchin tells In-side Mining that the new manufacturing facil-

ity will improve turnaround times for Aury Africa’s products. Th ese products are stock-consumable items in the com-minution sector and are used mainly for separation applications.

Aury Africa stocks and supplies a com-plete range of consumable products, including polyurethane and rub-ber panels, cyclones, woven-wire screens, weld mesh, wedge wire prod-ucts, pipes, pumps, belt scrapers and ceramics. In addition, the company’s capital equipment off ering features vibrating feeders and screens, fi ne and coarse coal centrifuges, crushers, conveyor systems and scrapers.

Aury Africa is part of the Aury Tianjin stable, and the group boasts a 100 000 m2

fabrication facility in China. “Aury is prob-ably the largest vibrating screen manufac-turer in the world, supplying mostly into China. However, we also have an Australi-an offi ce which was established seven years ago.” Houchin adds that the South African branch, Aury Africa, was registered in 2010 and began trading in March 2011.

Market gap“Most of the vibrating screen manufactur-ers, who do a very good job, tend to be Eu-rope-based and costly, whereas the quality and pricing out of China are comparable,

COMMINUTION

INSIDE MINING 08 | 201444

if not better.” Aury Africa began selling screen media to mines and quarries in South Africa and then gradually branched out into Southern Africa. Th eir footprint now extends as far afi eld as East, West and Central Africa. Houchin says that Mo-zambique – a rapidly developing, regional coal hub – represents a major market for the company, as Aury is renowned for its coal-processing equipment.

In terms of the growth of Aury Africa to

date, Houchin says it started off with two employees in 2011, and has now expanded to 36 employees. “We have increased our turnover tenfold in three years,” he says. “We hope that when the mining industry is on an upswing again, we are ideally po-sitioned to take off from there. Th is is why we have just recently started focusing on capital equipment.”

All woven-wire screens imported from China will be manufactured locally from this month, with Aury Africa putting the fi nal touches on its relocation from its cur-rent stockholding site in Edenvale to a new manufacturing facility in Jet Park, Boks-burg. “We have invested R1 million in two new looms,” reveals Houchin.

Substantial stockholding“Th e reason for doing this is that we have got a fairly substantial stockholding. Even though Aury Tianjin is on the ball, from the time we place an order, to the time we actually unpack a container on our prem-ises, you are looking at a signifi cant turn-around time. So, we decided to cease man-ufacturing in China and bring the equip-ment over here, in the form of a small and

a large weaving loom. Th e next machine we will bring in is a pol-yurethane injection moulding machine.

“Th is is a major val-ue-added service that is sure to further consolidate our trusted reputation,” says Houchin. He adds that Aury Africa has successfully distanced itself from the stigma of inferior quality and service as-sociated with the Chinese manufacturing sector, as a result of its highly competi-tive, price-to-quality ratio, together with an unrivalled after-sales and technical support service.

Continued growthGiven its continued success and growth in Africa, Aury Africa will be exhibiting its product range at Electra Mining Africa 2014. “Th is will be our second time exhibit-ing. At the 2012 event, the company was a

junior competitor with the objective of gaining recognition. In just two years, we have developed a reputation as a tried-and-trusted market leader. We aim to reinforce this position by engag-ing with high-profi le decision-makers from across the continent in a central-ised location,” says Houchin.

“Th ere cannot be many people left in the South African mining and quarrying in-dustry that do not know who Aury Africa is. I think Africa itself is opening up. A lot of previously unexplored, uncharted terri-tory is being developed. As long as a mine or quarry is operating, it will always need consumables such as screen media.”

Houchin says that Aury Africa has techni-cal expertise on hand on the consumables side. “We have teamed up with a number of smaller engineering companies that are familiar with panel and centrifuge basket change-outs and installation of piping and screens. Th e idea is to form strategic part-nerships, and to look at entering this area ourselves in the foreseeable future.”

Screening and vibrating equipment solutions supplier, Aury Africa has established a 5 000 m2 manufacturing facility in Johannesburg.

“As long as a mine or quarry is operating, it will always need consumables such as screen media.”

OPPOSITE The Aury Africa team at their Jet Park manufacturing facility

Page 47: Inside Mining August 2014

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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

AS A TECHNOLOGICAL pio-neer, Loesche follows on from the success of the largest coal mill, LM 43.4 in India, and the

world’s largest raw meal mill, LaM 69.6 in Nigeria. Th is latest triumph involves the largest slag mill in the world, which already produces 255  t/h blast-furnace slag meal in Taiyuan, northern China.

In September 2011, Loesche received an order from the Taigang Group Internation-al Trade, which commissioned a Loesche vertical mill of the type LM  63.3+3 for grinding granulated blast-furnace slag for its clients. Th is was to be the largest slag mill in the world.

Record productionIn March 2014, the plant went into oper-ation in the steelworks of TISCO, Shanxi Taigang Stainless Steel in Taiyuan and at-tained a new record product rate with 255 t/h blast-furnace slag meal after only a short time.

In the steelworks of TISCO, the LM 63.3+3 has now been used for the pure grinding of granulated blast-furnace slag for the fi rst time. Th e mill is driven by a

COMMINUTION

motor with an output of 7  400  kW, the most powerful motor to have been installed in a mill by Loesche so far.

Th e projected guaran-teed values of 255 t/h granulated blast-furnace slag at a fi neness of 4 400 Blaine are reliably attained here. Th is is also ensured by the newly developed Loesche LDC classifi er, used in the grind-ing plant and ideally customised to the Loesche mills.

Technological challengeTh e fi rst Loesche mill of the type LM 63.3+3 commenced production in 2009 in Nallalingayapalli, India, and has mean-while proven its merit as a reliable mill for OPC – PPC cement.

After examining the feed material and performing diverse tests in the Loesche pilot grinding plant, IT recommended one large mill with a grinding table diameter of 6.3 instead of two smaller mills for the ce-ment works in Nallalingayapalli. Th is was to achieve the planned product capacity of 360 t/h OPC or 355 t/h PPC.

The Loesche mill type

LM 63.3+3 – proven

technology for cement

grinding

INSIDE MINING 08 | 2014 45

Loesche’s order from the Taigang Group of China represents the largest slag mill in the world to date.

LOESCHE SYSTEM DEVELOPEDLoesche developed the 2 + 2/3 + 3 system to improve grinding-bed stability. Here, upstream support rollers with up to 20% of the M-roller grinding pressure lie on the grinding bed to ventilate this. The process improves the internal friction of the grinding stock on the table, resulting in more effi cient crushing. It is possible to produce OPC with a fi neness of up to 6 000 Blaine and blast-furnace slag meal with a fi neness of over 7 000 Blaine.

Page 48: Inside Mining August 2014

INSIDE MINING 08 | 201446

THE NEW YORK-based OEM is represented locally by Derrick Solutions International (DSI), which was established in Janu-

ary this year, explains vice-president Nic Barkhuysen. “Derrick manufactures fi ne screens and some associated equipment for the mining and oil and gas industries. We probably do about 70% of our busi-ness in oil and gas and about 30% in min-ing. In terms of size, we do somewhere between 10 and 15 machines a day. Our inter-crane system in our factory in the US is the third largest in the world after Caterpillar and Boeing.”

Th e company specialises in fi ne screen-ing, which comprises polyurethane pan-els with apertures from 45 microns up to 0.8  mm. “We manufacture dry, wet and slurry screens, as well as dewatering

Derrick Corporation of the US has about 70  installations in South Africa and 240 in Africa.

systems. Th e major application is for the closing of ball-mill circuits, replacing the cyclones with screens, resulting in a much better cut point. It prevents circulating loads and increases the throughput be-cause you can put more tonnes through it. In most cases, in fact, the increase in capacity is so huge that such equipment can pay for itself in a matter of months, sometimes even weeks.”

A particular focus area for such produc-tivity improvement is fl otation, subse-quent to milling, where over-grinding is a major problem. “Th e more you grind, the more surface area is generated. You can mill down to your liberation point and then remove the liberated material, which results in even more benefi ts.” Barkhuysen comments that while this equipment is of-ten retrofi tted, “slowly and surely the engi-neering houses are starting to realise they have to put these into new circuits, and that is happening more and more.”

Derrick itself was established in 1951, with DSI having offi ces in Indonesia, Du-bai in the UAE and also in Canada. It has had a presence in Africa for about eight years now. “We also appoint agents and representatives. Th ey typically do the up-front work, as they have the contacts on the mines, and then we back them up with technical support and equipment supply. We service all of the commodity sectors, from coal to uranium, though iron ore is our biggest sector right now, with 1 000 installations there at the moment.”

Looking more closely at the specifi c bene-fi ts of its fi ne-screen products, Barkhuysen points out that they have a high open area, similar to woven wire. “We state categor-ically that they do not blind, which really gives us the major advantage. Our ma-chines tend to be smaller and lighter, with high capacities. We really do not compete against other screening manufacturers as it is such a specialised, niche product. In-stead we really compete against other tech-nologies, such as jigs and cyclones.”

Barkhuysen says that a large focus of DSI is to educate the mining industry on the latest trends and developments, and to get it to accept new technology, as opposed to the traditional way of doing things. “Th at is our biggest challenge – convincing customers. Once they see the light, then it normally goes quite well.”

Commenting on the current state of the mining industry, Barkhuysen notes that “all commodity prices are down at the moment, and have been depressed for some time. It is unusual for them all to be in a trough. However, they have to turn sometime, which is obviously what we are waiting for to happen.”

He adds that the mining slump has had an impact on business, with projects be-ing ‘parked’ as investors either withhold funding or prefer to wait for the market to turn. “Once these sectors turn, we will see huge demand again. At the moment our delivery runs at about 40 weeks, and we will see that escalate quite signifi cantly as the cycle turns up.”

African solutions

“We manufacture dry, wet and slurry screens, as well as dewatering systems.” Nic Barkhuysen, vice-president, Derrick Solutions International

COMMINUTION

DSI vice-president Nic Barkhuysen with a line of dry screens

Page 49: Inside Mining August 2014

EXCEPTIONALRETURN ON INVESTMENT

Derrick Stack Sizer® Brings High Returns

The unique combination of the patented high capacity Stack Sizer® and Derrick Polyweb™

urethane screen surfaces (as fine as 45 microns) now makes fine wet screening a practical reality. Over a thousand Stack Sizers currently operating at mineral processing plants worldwide are earning significant returns.

For example, replacing hydrocyclones with Stack Sizers can result in increased mill capacity and production rates, reducing power consumption per ton. Improved classification also minimizes overgrinding of valuable minerals, improving the performance of downstream processes.

DSI Africa (Pty) LtdOffice: +27(0)126536843

E-mail: [email protected]

www.derricksolutions.com

EXCLUSIVE DERRICK® DISTRIBUTOR

Page 50: Inside Mining August 2014

SITE SERVICES

THE UNIQUE CAPABILITY of Fedics Site Services is that not only can it build a camp, but it can provide a total solution to

keep it running smoothly. “Our solution encompasses early site establishment to construction and handover, servicing of the camp and its demobilisation af-terwards. In most instances, the infra-structure is donated to the community for use as part of their corporate social investment.

Fedics Site Services and Tsebo have a well-established process for community engagement, including programmes for local sourcing, local employment and skills development, and community outreach. “We consider it vital to create communi-ty partnerships that leave a legacy for the

future; it is part of every contract we are involved in. Th at is the ‘A to Z’ of our di-versifi ed off ering, and we have the skills in our organisation to be able to provide that,” says managing director Andrew St Clair-Laing.

“Where we do not have the skills – for example, such as construction – we have

preferred suppliers that can support us through Africa. Also, for example, with catering equipment, we use preferred suppli-ers to procure everything on behalf of the client. Th e client can concen-trate on his core business and leave the rest up to us,” says St Clair-Laing.

Greenfield campA typical greenfi eld camp ranges from the civil infrastructure such as waste and water reticulation through to the actual buildings themselves. “Once all the build-ings have been erected, they have to be equipped with beds, lockers, and furni-ture, as well as all ancillary equipment for the kitchen, dining room and recreational areas,” explains sales and marketing man-ager Denis Hourquebie. “Only then do we as a division come in and manage that pro-cess. We buy the food; we cook the food; we serve the food. It is like a mini hotel – a home away from home.”

“We try to cultivate that mindset among our team, of being a home away from home, and this is the expectation of our customers as well. Th ey want to be well fed

and rested in a secure and comfortable e n v i r o n -ment. Our clients have a diff erent set of criteria though, as they are fo-cused more

on return on investment and operational cost-eff ectiveness,” says St Clair-Laing.

Fedics Site Services has successfully completed projects as far afi eld as Verdan-ta and Tsumeb in Namibia. “We conduct business in Bostwana, Lesotho and Zam-bia. Th e Tsebo Group has a signifi cant footprint and capabillity in Mozambique

through Servco, which is our local-ly-based business that is well positioned to service our clients and customers in Mozambique. We also have aspirations to service the oil and gas sector, which will extend our reach into key countries such as Uganda, Kenya, Tanzania, Nigeria and Angola. Tsebo has extensive intellectual property in this market sector, as it cur-rently enjoys a strong market share and track record in both Saudi Arabia and Bahrain through Karam Fedics, based in Al Khobar and  Jeddah.

Huge scope in Africa“It is absolutely amazing; there are many opportunities in Africa. As long as all that wealth can fi nd its way back into some of the infrastructure in Africa and generate prosperity for the citizens of the continent,” says St Clair-Laing. In terms of challenges, he highlights the logistics of establishing eff ective supply chains in remote locations as the company’s biggest challenge.

“Th e Moma project in Mozambique was a challenge because of its remoteness. Th e All Africa Games in Abuja, Nigeria, was a challenge due to the sheer size and scale and the amount of planning required. For-tunately we had smart local partners. You cannot do business in Africa unless you have progressive local partners.

“You cannot go into somebody else’s country and think that you can tell them how they should be running their busi-ness. You cannot be streetwise in some-body else’s country, because every single Africa country has its own nuances, chal-lenges and its own set of rules in the way it works and operates.

Good governance“As an organisation, we have chosen a very moral and well-governed position. We do not tolerate any bribery or corruption. We have been around for 47 years. We will nev-er compromise our brand, and we have lost opportunities because of our ethical posi-tion. A big challenge is fi nding like-minded local partners who are prepared to roll up

Fedics Site Services, part

of the Tsebo Outsourcing

Group (TOG), off ers an ‘A to

Z’ solution for remote camp

infrastructure. By Gerhard Hope

AA toto ZZ solutionsolution

“Our solution encompasses early site establishment to construction and handover, as well as servicing of the camp and its demobilisation afterwards.” Andrew St Clair-Laing, MD, Fedics

INSIDE MINING 08 | 201448

Page 51: Inside Mining August 2014

SITE SERVICES

INSIDE MINING 08 | 2014 49

You give us a set of GPS co-ordinates, anywhere in Africa. We give you a fully operational, catered and serviced site that brings value, productivity, morale and sustainability to your remote project location.

It’s this dependable logistical capability that has allowed us to create a home away from home for remote projects in Africa since 1985.

Your African Partner in Facilities Solutions

REMOTE SITE SOLUTIONS THAT DELIVER A “HOME AWAY FROM HOME”

www.tsebo.com

www.fedicssiteservices.co.za

their sleeves and get stuck in and do the work,” says St Clair-Laing.

Hourquebie adds: “You al-ways have to plan for and work around any contingencies.” Every single project that Fedics Site Services is involved with

has its own dedicated health and safety manager. “Our commitment to health and safety and environmental awareness is an extension of our business philosophy. We try to take the element of risk away from the client,” notes St Clair-Laing.

He adds that the company’s employees embody a ‘pioneering’ spirit. “We em-ploy people who think on their feet and are very solution-minded. Th ese are peo-ple with a wealth of experience, and who know how to articulate our plans with our clients. I like to call them our ‘make-a-plan’ team. We are not a bunch of cowboys. We are highly principled; we are astute busi-ness people; we know how to make good returns and still deliver the best deal for our clients and customers. It is such an ex-citing part of the industry to be involved

with. Every single project is unique, and we have a good track record.”

Future growthLooking at future growth, Hourquebie says the company has its sights set fi rmly on Africa. “We want to move into Africa. For many new developments and projects, the money will not come from within the min-ing industry itself, with notable exceptions being major mining houses. At the end of the day, the impetus for new projects is go-ing to come from foreign investors. So we are positioning ourselves to be ready now to take on the opportunities that are com-ing to Africa.”

St Clair-Laing adds that Tsebo has an ac-tive mergers-and-acquisitions strategy as part of its overall growth strategy. “Our intention as an organisation is to have a hub in East and West Africa, and to grow our presence accordingly, which will ena-ble us to service our clients more diligent-ly. We have a full-on strategy in that re-gard, which is revisited and revised on an ongoing basis.”

Th is means that the company is very re-sponsive to changing market conditions, says Hourquebie. “Being part of the mul-tinational Tsebo Outsourcing Group, with its pan-African footprint and 40 years’ experience, just further enriches the value we bring to our clients.”

TSEBO IN NUMBERSStaff: 20 000Group companies: 14Countries: 12Sites 4 500

TSEBO FACTS AND FIGURES• TOG changes enough light

bulbs to light up all ten 2010 World Cup stadiums

• TOG saves its clients 15 000 MW of electricity

• TOG serves enough beef to make over fi ve million burgers

• TOG uses enough milk to fi ll 3.7 million ice cream cones

Page 52: Inside Mining August 2014

EMPLOYING SOPHISTICAT-

ED photovoltaic (PV) hybrid solutions that supplement ex-isting power sources, such as

the electricity grid or diesel generators, can help mining companies address their daytime electricity supply challenges, while minimising costs and lowering their environmental impact.

Don’t let thesun go down

INSIDE MINING 08 | 201450

RENEWABLES

Though mining has traditionally relied on electricity grids and on-site diesel generators, there is a growing global move towards an energy source that is sustainable and more aff ordable than ever before: solar power. By John Eccles

Let us examine the case of a remote mine, operating independently from the electrical grid and largely reliant on die-sel generation to support its power re-quirements. Th e mine’s operational costs will need to factor in the price of diesel to power its generators, which is subject to international volatility in price and cur-rency exchange. Depending on the mine’s

location, the logistical cost of transporting diesel to the site will also have to be added, as will the cost of investing in and main-taining the generators.

Now, consider the possibility of a solu-tion that combines a diesel genset with a PV power plant to create a reliable and aff ordable source of electricity. Let us assume that a 10  MW AC First Solar FuelSmart solar-diesel hybrid plant is in-stalled at an existing 15.3  MW site, with 24-hour base-load generation, in South Africa. Th e two sources complement each other, using a sophisticated control sys-tem that ensures stable electricity genera-tion for optimal mining operation.

Dynamic power controlTh e system ensures that the power is dy-namically controlled, not unlike cruise control in a car. Should cloud cover inter-fere with the PV plant’s output, the con-trol system will compensate by increasing the output of the diesel generators to en-sure stability.

Conversely, on a particularly sunny day, the system will moderate the diesel gener-ators allowing the mine operator to max-imise fuel cost savings from the elevated solar capacity.

Th ere are numerous benefi ts from in-vesting in such a system: unlike liquid fuels, sunlight is abundant, free and not subject to market or foreign exchange fl uctuations. From a cost point of view, this system could hypothetically save over 84 million litres of fuel over a 25-year pe-riod, reducing the total energy generation cost by as much as R1.07 billion over the project lifetime, when compared to a die-sel-only generator. In addition to these projected savings, the hybrid system could also reduce greenhouse gas emissions by over  258 300 tonnes.

Page 53: Inside Mining August 2014

INSIDE MINING 08 | 2014 51

RENEWABLES

While solar power is a variable resource, a hybrid combination of diesel and solar adds the stability and reliability nec-essary for a mining operation’s power needs. In addition to enabling opera-tional continuity, hybrid solutions also help to extend the operational life of the generators, minimise their operation and maintenance costs, as well as reduce fuel-supply logistical costs and risks.

From an environmental perspec-tive, they help reduce emissions, noise pollution and a mine’s overall carbon footprint.

Value propositionBy entrusting their energy generation to First Solar, with over 8  GW of modules installed globally and over 3  GW con-tracted, mining companies such as Rio Tinto are benefiting from a reliable and meaningful value proposition.

With cost and operational efficiencies forming the backbone of the mining

OPPOSITE TOP The new Enduron cone crusher being installed on-site in South Africa

RIGHT TOP An elevated view of a KHD HPGR machine being assembled

RIGHT BOTTOM A 3.7 m-wide Enduron horizontal screen on the test bed at Weir Minerals Africa's Alrode facility

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RIRIRRRIRIRRRIRIRRRRRRRRRIRRRRRIRIRIRIRRRRRRRRRRRRRIRIRIRRRIRIRRIRRIRIRIRIRIRRRIRIIRIRIRIRRIRRRIRIIRRRRIRRRRIIIIRRIRRRIIIRRRRRIRRRRRRIIIRRRRRIRRRRR GGGGGGGGHHHHHHHHHHGHHGHGGGHHGGGHHGGGGHHGGGGGGGGGHGGGHGHGGGGGGGGGGGGHGGGGGGGHGGGGGHGGGGHHHHTTTTTTTTTTTTTTTTTTTTTT BOBOBOBOBOBOOOOOOOOOOBBOOOOOOOBOOOOOOOOOBOBOBOBOOOOOOOOBOBBOOOOOOOOOOOOBOBBBBOOOOOOOOOOOOOBBBOOOBOBBOOOOOBOBOOOBOOOBBBBOOBBBBBBBBBBBBBOBBBBBBBBBBBBBOOOOOOBOTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTOOOOOOOMOMOMOMOMOMOMOMOMOMOMMOMOMOMOMOMMMOMOOOOMOMOMMOOOOOMOMOMOOMOMOMOOOOOOOOMOMOMOOOOOMOMOMOOOOOOOOMOOOM AAAAAAAAAAAAAAAA 3.7 m-wide Enduron horizontal screen on thetetetetetetetetetetetetettetetteeestststststssssss bbbbbedddedededdededeeddededededededededededddddeddddedddedddededdeddedddeedddeededdedeededeeeeeeddd aaaaaaaaaaaaaaaaaaaaatttttttttttttttttt WWWWWeWeWWeWWeWeiiririr MMiiiniiiiiiiiiiiiiiiiiiiiii erals Africa's Alrode facility

Tel: +27 (11) 826 6111 Fax: +27 (11) 826 6162 Website: www.uniqueeng.com Email: [email protected]

business, innovative hybrid system solu-tions can provide solar energy as an al-ternative source of fuel, reducing fuel consumption and variable costs with reliable and affordable solar electricity.

Today, hybrid power generation solu-tions offer the mining industry the op-portunity to take control of energy costs by leveraging solar electricity’s cost competitiveness to its advantage.

“This system could hypothetically save over 84 million litres of fuel over a 25-year period.” John Eccles,

director of fuel-replacement solutions, First Solar

RIGHT & OPPOSITE First Solar modules installed globally

Page 54: Inside Mining August 2014

INSIDE MINING 08 | 201452

INFORMATION TECHNOLOGY

Keeping your assets in line

THE MAIN AIM of asset management is to bring all of SKF’s products and services under a single umbrella, explains Lailvaux, who is in charge of segments and key accounts. Th ese include metals, mining and ener-

gy. “We look after the business from a customer-relationship and sales-development perspective. Our aim is to upsell SKF to the point where we are able to give customers increased reliability in their production processes to the products and services we are able to integrate with them. It is a total package.”

Lailvaux says that SKF achieves this by understanding customer

The latest trend in mining is to favour reliability over cost. Giscard Lailvaux speaks to Gerhard Hope about the asset management programme being spearheaded by SKF.

applications, either by means of plant audits or application of en-gineering assessments. “If it is specifi c – such as a pump, fan or motor – technology can be applied in the form of handheld mon-itoring products such as an SKF Marlin unit, or complex online protection and surveillance systems that are found in turbines in the power-generation industry. Th ere are many ways to identify what products and services we can integrate for our customers.”

In this regard, asset management is a key tool to bring all of SKF’s value to their customers. “For customers, asset manage-ment means aligning maintenance practices in the achievement

of their business goals. As a discipline or practice, it entails examining how the asset behaves in order for the customer to be able to achieve those goals.”

Cost versus reliabilityTh is means that Lailvaux and his team travel extensively to visit customers, in order to assess their specifi c needs. “We enter into discussions about managing and caring for their assets. What is interesting is that it has changed from a purely cost-based view to one of reliability, especially in the mining industry.”

Mining is particularly capital intensive, because many ore bodies are at such a depth that operations require extensive shaft sinking and infrastructure development before produc-tion can commence. “Th is is why increased reliability of equip-ment is so important,” says Lailvaux.

“In the past it was about trying to use as many diff erent technologies as one could fi nd, with little cognisance of the actual cost.” Even if a budget had been compiled, this often only refl ected asset price versus actual cost. “We have become much better at partitioning those costs and how we under-stand them, and this is where asset management really comes to the fore.”

Mining is a major focusEven with the downturn in the mining industry, it still re-mains a major focus area for SKF. “I would say it is our pre-dominant focus,” says Lailvaux. “Even with the associated challenges, we are still fi nding ways in which to help our cus-tomers and asset management is a good example of this.”

SKF constantly strives to make the market aware of its innovation and latest developments. For example, in Sep-tember the company is launching a campaign for its range

Page 55: Inside Mining August 2014

INFORMATION TECHNOLOGY

INSIDE MINING 08 | 2014 53

of upgraded spherical and sealed-roller bearings, aimed specifi cally at the mining industry. A product expert will be brought in from Europe to conduct internal train-ing and then embark on an extensive road-show for prospective customers. SKF has a unique approach in that it enters into spe-cifi c agreements with customers in which they are provided products for the pur-pose of testing in operation for an agreed period – typically six months – in order to discern the reliability and effi ciency bene-fi ts for themselves. “If they are satisfi ed, they quickly become loyal customers,” says Lailvaux.

Th e upgraded bearings feature improve-ments mainly in the heat-treatment pro-cesses and the cleanliness of the material of their construction. “Th e longer the material behaves in accordance with its design characteristics, the more reliability the customer can expect. Steel impurities are often the fi rst cause of major failures,” says Lailvaux. “For customers, the benefi t is an application that can run a lot longer. Productivity increases, as things do not need to be changed out in unplanned

stoppages and there are fewer planned maintenance intervals.”

Extensive R&DSKF also has a number of service-related products such as handheld tools that it is developing constantly, based on extensive applications research in their R&D facili-ty based in Holland. “We also have eight centres of excellence worldwide, each with a distinct single capability, while South Africa has a fully fl edged solutions facto-ry for the continent.” Th is allows the local company to off er the full global range of SKF’s products and services, which also encompasses reliability services such as remote analysis.

“Th is means that we install an online system at a customer to transmit opera-tional data to the remote centre, where it is then processed and a report submitted back to the client, all in a seamless process, where the only human interface is the ac-tual interpretation of the data,” explains Lailvaux. “Th at is another major advan-tage we are able to off er mining customers in particular.”

How has the mining industry respond-ed to the concept of asset management? Lailvaux says the industry has been quite open to the concept. “In high-risk areas of their mining operations they need to min-imise the number of personnel, so health and safety, cost and environmental issues are all major drivers in this regard.”

Protection and monitoringWhat appeals to mining customers is SKF’s dual capability in off ering systems that protect and carry out remote mon-itoring and control. “With something as complex as a mining operation, you not only need to ensure that the equipment is operating optimally, but you also need to know when any problems may arise.”

Th is is a philosophy that SKF is also tak-ing into the rest of Africa. “Africa is a huge focus for us, as it is rich in natural resourc-es and economies such as Nigeria are expe-riencing an absolute boom.”

Lailvaux says that SKF has satellite of-fi ces throughout the continent and is growing its foothold constantly in order to meet the growing demand.

Page 56: Inside Mining August 2014

ENVIRONMENTAL

Brian Gonsalves Vice President: Global SecurityANGLOGOLD ASHANTI LTD

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Pravin MaharajHead: Protection and Emergency Services KUMBA IRON ORE

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African mininggoes green

MINES IN AFRICAN coun-tries should not wait for the inevitable tightening up of measures on cli-

mate change and carbon emissions be-fore exploring greener energy options on mining sites, especially as there are signifi cant cost savings to be made from fast-evolving renewable technologies.

Many operations must make their own power-supply arrangements, as they are too remote to access the national elec-tricity grid or the supply of electricity is not reliable. Th is usually involves establishing diesel generation on-site, an option which both increases energy costs – because diesel must be delivered to site – and adds signifi cantly to the carbon footprint of the mine.

Mines in Africa, like those interna-tionally, are required to comply with resource effi ciency and pollution pre-vention standards stipulated either by

national regula-tions, by Equator Principles Financial

Afforestation of sand tailings in Sierra Leone

INSIDE MINING 08 | 201454

By Vis Reddy (left), principal scientist and partner, and Paul Jorgensen, environmental

scientist, SRK Consulting South Africa

Page 57: Inside Mining August 2014

ENVIRONMENTAL

Institutions (EPFI) like the International Finance Corporation (IFC), or by index listing requirements such as the Dow Jones Sustainability Index.

Greenhouse gas emissionsTh e requirements usually include quantifying and reporting on greenhouse gas emissions in accordance with internationally rec-ognised methodologies and good practice such as the Greenhouse Gas Protocol.

In terms of the Equator Principles, the EPFI requires clients to report publicly each year if the project emits over   100    000  t of CO2 an-nually. If emissions are over 25  000 t, then clients are en-couraged to report publicly. Th is can be done through voluntary reporting mechanisms such as the Carbon Disclosure Project.

Th e IFC’s Performance Standards on Environmental and Social Sustainability stipulate that mines should consider energy gen-eration and usage alternatives, and “implement technically and fi nancially feasible and cost-eff ective options to reduce project-re-lated greenhouse gas emissions during the design and operation of the project”. Th is could include use of renewable energy for generation and driving increased energy effi ciency of operations.

Useful and reliable accounting systemsDeveloping useful and reliable accounting systems for mon-itoring carbon emissions is a lengthy process, but is key to proactively managing risk and insulating the business from the eff ects of future regulations, especially as more onerous climate change policies are on the way in most developing countries.

It is easier to adapt the systems and measures in place rather than trying to address the problem retroactively. South Africa has committed itself to applying a carbon tax, for instance, although it is not yet clear when it will be imposed and how the grounds for exemption will be negotiated.

Treating cleaner energy as a ‘nice to have’ instead of a neces-sity would be missing a valuable opportunity. Th ere is merit in being more innovative about managing greenhouse gas emissions, especially taking advantage of improved small-scale renewable energy generation technologies.

Africa’s abundant sunshineAfrica’s climate, and its abundant sunshine in particular,

can open up various opportunities for improving a mine’s bottom line. Regardless of the scale of the operation, a mine could benefi t from renewable energy as a strategy to gain a measure of energy independence – not just from an unrelia-ble grid, but from the carbon-based fuels traditionally used on-site. Th ere are already quite a few small-scale solar-pow-er projects that have proved successful in supplying capacity of up to 10 MW, enough power to run a factory process or a small mine.

Opportunities also lie in the fact that mines often exist in clusters, where operations mine the same or adjacent ore bodies. In an ideal world, it would make sense for neighbour-ing mines to investigate energy solutions on a cooperative

basis, using the economy of scale and sharing facilities. Interest-ingly, the current push towards renewable energy in many African countries suggests that future policies and programmes in other parts of the continent will be more progressive than South Africa has been, despite the latter’s larger internal market. East African countries are enthusiastically involved in the Africa Clean Power Corridor initiative, and are setting ambitious renewable-energy targets for themselves. North Africa has a planned network of so-

lar-generated elec-tric schemes, which has its eye on ex-porting electricity to Europe.

Hydro for small-scale applicationsEven hydropower

is on the table as an option for small-scale applications, and is being explored in countries in West Africa, as well as in the Dem-ocratic Republic of Congo. Looking 20 or 30 years ahead at Afri-ca’s power options, the energy mix is likely to be very diff erent, and this will no doubt bolster any eff orts that mines are making to fi nd clean energy solutions. Indeed, reliable and aff ordable technologies in renewable energy may well open up opportu-nities for mining in areas where access to conventional sources was prohibitively expensive.

Mines in African countries should not wait for the inevitable tightening up of

measures on climate change and carbon emissions before exploring greener

energy options on mining sites

INSIDE MINING 08 | 2014 55

Page 58: Inside Mining August 2014

INSIDE MINING 08 | 201456

ELECTRICAL

INDEX TO ADVERTISERS

B&W Instrumentation and Electrical 14

Cote d'Ivoire International Mining Summit 29

De Beers Consolidated Minerals 33

Derrick Solutions International Africa 47

Drillcon 11

Electra Mining Africa 2

Fedics Site Services 49

FLSmidth 43

Hencon Vacuum Technologies 50

Investing in Resources & Mining in Africa 4

Jozi Power 17

JVT Vibrating Equipment 52

Kimberley Diamond Symposium 25

Loesche 45

Liugong 27

Managing Mine Security 54

Manitou 34

M&J Engineering 24

Model Maker Systems 55

Multotec Group 41

NOSHCON 7

Process Vacuum 6

Redpath Mining South Africa 15

Roymec Technologies 31

Schneider Electric IFC

Sub Sahara Power Distributors OBC

Tega Industries OFC

ThyssenKrupp 53

Unique Engineering 51

Weir Minerals IBC

WorleyParsons 39

ENI ELECTRICAL IS committed to a long-term vision of changing the way electrical construction work is conducted. Th e company

aims to achieve this by applying the same principles its holding company, the Zest WEG Group, has harnessed to achieve its own extensive growth and success.

“We intend to become the largest elec-trical construction company in Africa,” comments managing director Trevor Naudé. Th is is in line with the greater WEG Group’s global growth strategy,

“Instead, we have adopted a strategy based on forming long-term client rela-tionships. Th is is not a catchphrase. We are actually ‘walking the talk’ by ensur-ing we understand the basic project re-quirements and mitigating against scope changes during the initial pricing stage.”

Over the past three decades, EnI Elec-trical has established a solid track record for successfully completing electrical construction projects. Since the Zest WEG Group acquired the company in 2008, processes and procedures have been developed to take this success-ful medium-sized company to the lev-el where it will be acknowledged as a world-class player.

“Th is is particularly signifi cant given that much of the work being done is in Africa, with some 70% of the company’s revenue being generated outside South Africa’s borders,” says Naudé. “Operating in Africa requires a certain mindset. It is essential for companies to clearly un-derstand the factors that drive successful project execution in this region, including the issues associated with logistics.

which is expected to increase its sales by at least 17% year-on-year until 2020, ar-riving at a turnover of $10 billion.

Shifting dynamics“We are cognisant of the ever-chang-ing needs of our market, as well as the shifting dynamics of our clients’ require-ments,” says Naudé. “Our response is to challenge the market’s perception of elec-trical construction as a sector character-ised by low tender pricing and utilising scope changes to be profi table.

Igniting sparks

Leading electrical construction company Enl Electrical is poised  to open facilities in Liberia and Namibia.

ABOVE Installation of electrical control panels at a site in Africa

LEFT EnI Electrical has completed projects throughout Africa

Page 59: Inside Mining August 2014

Copyright © 2014, Weir Slurry Group, Inc. All rights reserved. ENDURON is a trademark and/or registered trademark of Weir Minerals Europe Ltd;

WEIR is a trademark and/or a registered trademark of Weir Engineering Services Ltd.

To learn more about Enduron® machines go to : weirminerals.com/enduron.aspx

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Page 60: Inside Mining August 2014