Highly commended 2011 PICA Cover of the Year - B2B Publishing
www.miningne.ws
MEDIA
THE KNOWLEDGE YOU NEED
ining FROM THE INDUSTRY EXPERTS
HOT SEAT
Jane March, Marsh Africa mining divisional executive, on the merger with Alexander Forbes Risk Services
GOLD
Bluetooth demolition robots
The investment attraction is back
PLATINUM Players push production pipelines
TECHNOLOGY Advancements in underground robotics ISSN 1999-8872 • R35.00 (incl. VAT) • Vol. 5 • No. 3• March 2012
CONTENTS
T H E K N O W L E D G E YO U N E E D
ining
March 2012
FROM THE INDUSTRY EXPERTS
Highly commended 2011 PICA Cover of the Year - B2B Publishing
www.miningne.ws
16
MEDIA
THE KNOWLEDGE YOU NEED
ining
ON THE COVER
FROM THE INDUSTRY EXPERTS
Husqvarna
HOT SEAT
Jane March, Marsh Africa mining divisional executive, on the merger with Alexander Forbes Risk Services
GOLD
Demolition blue tooth robots P6 Bluetooth demolition robots
The investment attraction is back
PLATINUM Players push production pipelines
TECHNOLOGY Advancements in underground robotics ISSN 1999-8872 • R35.00 (incl. VAT) • Vol. 5 • No. 3• March 2012
EDITOR’S COMMENT
3
28
Raise your glass – a toast to Indaba 2012
MINING NEWS
4
Top mining stories headlining this month
HOT SEAT
10
Marsh and Alexander Forbes Risk Services A merger of great mining minds
PRECIOUS METALS: PLATINUM
32
12 16 18 24
Eastern Platinum’s meritorious Mareesburg Platinum Australia’s pipeline progresses Zimbabwe’s platinum gem Platfields pleads for cash
PRECIOUS METALS: GOLD
26 28
Cons Murch – still an attractive asset
32
Perseus the great – Edikan strikes gold
Barberton gold dump reclamation – a Phoenix equivalent
CONSULTING & PROJECT MANAGEMENT
40 44
Consultants with management flare ADP Projects – delivering engineering excellence
FINANCE
48
64
Handpicking the ‘cream of the crop’
TECHNOLOGY
56
Robotics – the future of underground safety and productivity
59 60
Solving AMD with dissolved air flotation The tail of Two Rivers
PROJECT DELIVERY: PUMPS
66
Pumping up on pump performance Inside Mining 03/2012
1
Editor’s comment Publisher Elizabeth Shorten Editor Laura Cornish laura@3smedia.co.za Creative Chief Executive Frédérick Danton Senior designer Hayley Moore Mendelow Sub-editor Patience Gumbo Marketing Manager Martin Hiller
RAISE YOUR GLASS
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South Africa: R350.00 (incl VAT & postage) SADC countries: US$80 Foreign: US$100 ISSN 1999-8872 Inside Mining Copyright 2012. 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 the publishers.
A toast to Indaba 2012 For most of us, this year’s Mining Indaba is already a long-gone memory, but one that will probably last a little longer than others. I may not have been attending the conference for as many years as most of Inside Mining’s readers have, but I have frequented it enough to know that 2012 was ‘hustling and bustling’ like never before. Apparently, there were over 7 000 delegates in attendance, and I can believe it since one couldn’t find parking at the Cape Town International Convention Centre after mid-morning. Walking between the aisles of exhibitor stands was like wading through a dense sea of miners and investors, a constant ‘networking buzz’ in the air. Honestly, I needed a weekend to recover fully from Indaba, but looking back I can say one thing with certainty – the African continent is on everyone’s top priority list and everyone wants a piece of the pie. Metaphorically speaking, Africa is the flame, and the global mining industry, the moth – attracted to nothing else! And evidence of a ‘healthy’ mining industry can be seen in the very pages of our March issue. The array of new and expansion projects underway seems almost infinite, I only wish I had an infinite number of pages to include and write about them all. The gold industry is re-emerging into its own – even low grade and ‘old lady’ revivals are getting the nod. My Cons Murch story on page 26 and Pan African Resources story on page 28 are prime examples of this. Our technology feature brings home the physical necessities, largely in the gold sector, for ensuring the sustainability of our old, deep-level gold mines. The CSIR is investing largely into robotics and robotic technology to reduce the ‘human element risk’ necessity at extreme depths. The industry still has some way to go to implement such technology, but it seems South Africa has the potential to lead the mining industry forward in terms of robotics specifically for the mining industry. Should this be the case, South Africa’s mining
status will re-gain some of its prestigious reputation – from a global context. And even though it is said that our platinum industry is one of our
Metaphorically speaking, Africa is the flame, and the global mining industry, the moth – attracted to nothing else! greatest strugglers at present, it appears that investment is nowhere near short supply. Ngezi’s growth plan seems endless and even Eastern Platinum’s long-term expansion strategy is significant. I suppose this is not true for juniors like Platfields though – MD Bongani Mbindwane says banks and investors remain reluctant to invest in start-up ventures such as his. Perhaps this would explain why there are so few juniors left, outside of the coal sector anyway. Will Platfields become another Chinese mining target? It’s possible in my opinion, but only time will tell. In honour of the successful Indaba, raise a glass and toast the mining industry’s current successes! May the Indaba represent a year of fruition, and plenty more exciting stories to share with you. Laura Cornish
Inside Mining 03/2012
3
Mining news www.miningne.ws
Top mining stories headlining this month SOUTH AFRICA
Harmony sells Evander Evander shaft
compiled by Ameerah Griffin
Source: www.businessday.co.za
| EUROPE | $90 billion merger for Xstrata and Glencore Source: www.miningne.ws
After years of courting, mining company Xstrata PLC and commodities dealer Glencore International PLC have agreed to marry in a $US90 billion (about R681.98 billion) deal that will create the world’s fourth-largest natural resources group. The combined company will control a chain of businesses from mining to refining, storage and shipping of basic commodities like coal, copper and corn.
billion, has applied for a large strip of prospects in the wilderness of South Australia around an area more associated with copper, uranium and gold mines than iron ore. Last year, Fortescue lodged its interest in the 10 exploration licences, covering 4 654 km² in South Australia, a company spokesman said. He declined to specify the type of raw materials that the company hopes to find in the area.
Gold and platinum company Pan African Resources and gold explorer Wits Gold have teamed up to spend between R1.5 and R1.7 billion to buy the Harmony Gold’s Evander mine. Harmony recently restructured the loss-making mine, which has a 34 Moz resource, of which 8 Moz are in the higher confidence category of reserves. Harmony is in effect selling these resources for $US5/oz, far cheaper than the typical price of $20US/oz to $US30/oz. Harmony CEO, Graham Briggs, says the company had been at pains to make sure the consortium was buying a sustainable asset that would be cash generative from the start. Harmony sold the Orkney mines to Pamodzi Gold, which went into liquidation, and those mines have since been stripped of assets and left idle.
| SOUTH AMERICA | Vale wins injunction in Brazil tax dispute Source: www.online.wsj.com
| AUSTRALASIA | Fortescue eyes new mining plans outside iron ore Source: www.marketwatch.com
Fortescue Metals Group plans to explore for new commodities in an area of Australia not known for iron ore, quietly laying the foundations for a possible diversification away from the steel-making material, and signalling its intent to compete for new markets in Asia. The company, with a market value of more than $US17
Mining giant Vale SA has won a court injunction in a dispute with the Brazilian government over taxes on overseas profits, and the Finance Ministry’s tax council will have to examine the issue again. The Brazilian government demanded $US5.6 billion in taxes on profits made by Vale’s foreign subsidiaries, plus penalties and interest after what Vale described as “unfavourable rulings” at the administrative level. In a statement, Vale said there was no time frame for resolving the dispute.
Pan African Resources CEO, Jan Nelson SOUTH AFRICA
Wits Gold CEO, Philip Kotze
A CEO to be remembered
It is with sadness that we take leave of a great leader in the mining industry. Neels Engelbrecht passed away on 14 January 2012 at the age of 52. He died of a sudden heart attack while cycling in the Hartebeespoort dam area. Neels Engelbrecht, CEO of RSV ENCO Consulting (ENCO), president of RSV USA Consulting, director of RSV Australia and executive director of RSV Limitada, will be remembered for his role as CEO of ENCO and the successful coal projects it brought into the RSV Group stable. His go-getter attitude was often the reason for being at the forefront of development that helped to establish new business on foreign soil for the RSV Group of Companies since 1998. Our condolences go out to his colleagues, friends and family.
Neels Engelbrecht
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Inside Mining 03/2012
Harmony Gold CEO Graham Briggs
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Cover story: Technology
HUSQVARNA’S NEW BREAKTHROUGH
Bluetooth demolition robot Husqvarna Construction Products (South Africa), a part of global construction and stone industries specialist, Husqvarna, has launched a new range of Bluetooth-assisted robotics that could help revolutionise underground safety in the mining industry, GM for Construction Products, Pieter Smuts, tells Laura Cornish.
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Inside Mining 03/2012
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Cover story: Technology
H
usqvarna Construction Products (Husqvarna CP) has extended its core-cutting range of construction products to incorporate a brand-new range of DXR remote-controlled, Bluetooth-operated robots whose applications in the mining sector specifically could promote safety substantially. “Even though the machines were developed primarily as demolition robots suited to the construction industry, we realised the
enormous potential for their use in underground and surface mining applications,” says Smuts. The robots are compact in design, offering impressive power-to-weight ratio and capable of manoeuvring into small, difficult-toaccess areas, and are able to access areas on or along steep inclines where typical larger underground machines cannot go. They are also ideal for going into areas after blasting to clean up blasted rubble, and are not susceptible to potential fatality situations which could be caused by loose overhanging roofs or walls. The machines also work with extremely hot materials, while still in operation, whose performance is also not impacted by extremely hot conditions. “While underground robotic machines are not a new concept in the industry, Husqvarna CP is the first company in the world to
year, the first Husqvarna demolition robot was launched in Sweden in 2009 with the second and third models following hot on its heels in 2010. The concept and development began when Husqvarna’s Swedish head office made the decision to supply the entire robot, as opposed to just the arm applications tools. “Although we have yet to sell a machine into the mining sector, we have received phenomenal interest from the platinum and coal industries in particular. We are already looking at adapting the machine to accommodate specific tools and applications that certain potential clients have requested,” explains Smuts. However, the company has sold two units to refractory installation specialists, Trident Refractory. Trident is the first company in Africa to purchase and use these machines and will use them across various
While underground robotic machines are not a new concept in the industry, Husqvarna CP is the first company in the world to launch an industrial Bluetooth, remote-controlled machine launch a Bluetooth, remote-controlled machine. This means no wires, and control up to 100 m away,” Smuts explains. The robot is designed to accommodate different tool attachments fitted to its arms, such as drilling, scaling, and breaking tools – making it a multi-purpose, technologically advanced machine. The user-friendly remote control is the heart of the DXR demolition robots. Most functions are carried out using the two ergonomically designed joysticks. The control box has an easy-to-read 3.5-inch colour display. With one-hand control, the tower and arm can be operated while the machine is being moved. Every robot is robust, stable and durable. Baseplates are cast in a single piece without welded-on components, and steel housings are strong and impact resistant. Additional features include reliable LED lights that can handle up to 20 000 hours of operation, and a comfortable stable harness with the remote control mounted on a curved aluminium bar that is worn over the shoulder – increasing safety and ease of operation. Although the robotics range was officially launched in South Africa in January this
ABOVE AND LEFT Husqvarna demolition robot launch, January 2012
industries around Africa, mainly for the demolition of cement and lime kilns, arc furnaces and industrial processing furnaces. Although the machines are manufactured in Sweden and imported into South Africa, Husqvarna is fully equipped to maintain the robots, and repair them when necessary. “We are focusing on establishing local service centres in all the main regions in
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Cover story: Technology
South Africa so we can assist our clientele more quickly and efficiently,” Smuts notes.
The DXR range is available in three versions that can tackle a wide range of jobs: • DXR 310: Perfect for demolition and smaller excavation work, the DXR 310 has a long high-quality excavation arm with a range of approximately 5.5 m. This offers step-less slow motion operation that ensures precision. It can be equipped with a number of different tools, further increasing efficiency, versatility and profitability. Individually controlled outriggers enable it to work on uneven surfaces and close to walls. Only 78 cm wide, it fits through most doorways and is equipped with a 22 kW electric motor. The track widener facilitates transport on uneven surfaces. • DXR 250: The DXR 250 is compact and light (1 620 kg) with a 18/22 kW electric motor, making it the most powerful in its class. Ideal for use in confined spaces, it comes with a fixed arm with a range of 4.5 m and ‘turn-able’ and extendable dozer blades that also function as outriggers. The robot’s low height allows the user good vision over the machine during operation and helps to give it a low centre of gravity. • DXR 140: The most powerful machine in its class, the
The DXR 310
ABOVE Husqvarna demolition robot launch: Dylan Lane, MD, Husqvarna SA; Pieter Smuts, GM, Husqvarna SA CP
DXR 140 is also the smallest and lightest. Its compact design and light weight (just 975 kg) make it easy to transport and manoeuvre in tight spaces. It climbs stairs easily and operates on uneven surfaces and close to walls, due to the individually controlled outriggers. The DXR 140 is recommended for light demolition and smaller excavation work. The fixed arm has unlimited rotation, reducing the need to move the machine between different steps of a job. The DXR 140 has an output of 15 kW. A wider range of mining-
Dylan Lane, Pieter Smuts, Daniel Lundberg and Malcolm Corns
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Inside Mining 03/2012
applicable tools within the mining sector, Husqvarna CP offers a variety of solutions particularly suited to surface infrastructure renovations. The company’s hand-held power cutting tools are ideal for cutting at great depths, up to 390 mm. “We have in fact been assisting in a hostel renovation for a mining company, cutting walls up to 200 mm in thickness. Its core drilling machines are also used underground, particularly in shaft collapsing scenarios. Contact For more information on Husqvarna, visit www.husqvarna.co.za For more information on Trident Refractory Specialists, visit www.tridentrefractory.com
Daniel Lundberg, Husqvarna HQ, Sweden
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Your symbol of confidence
Hot Seat: Risk management
MARSH AND ALEXANDER FORBES RISK SERVICES
A merger of great mining minds NYSE-listed Marsh & McLennan subsidiary, Marsh, has acquired Alexander Forbes’ brokerage business, Alexander Forbes Risk Services (AFRS) – a deal aimed at benefiting some of Africa’s major business sectors – mining being one of them, writes Laura Cornish.
T
he new entity, Marsh Africa, officially established on 1 January 2012, sees the emergence of a greater, stronger risk management company capable of best servicing the African
branches in Malawi, Mozambique, Nigeria, Uganda and Zambia – subject to the completion of due diligence and regulatory approvals. This is expected in the first half of this year.
The merger has combined two of the biggest and strongest mining teams in Africa, and globally
Guy Jameson, Marsh Africa head of sales and marketing
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Inside Mining 03/2012
continent, says Guy Jameson, Marsh Africa head of sales and marketing. Also included in the acquisition are Alexander Forbes’ broking operations in Botswana and Namibia, which will further be followed by the company’s sub-Saharan
“The combination of Alexander Forbes’ well-established South African operations, its regional network and respected team, together with Marsh’s existing South African business, global solutions, resources and placement skills, will bring dramatically
Hot Seat: Risk management
enhanced benefits to all our clients. Companies in the rapidly developing African region are increasingly looking for insurance brokers and risk advisers who can help them protect their vital assets and grow. This transaction, which is driven by our growth ambitions to be a pan-African leader, gives us a powerful platform to meet these expectations,” explains Jameson. “While Marsh already holds a very substantial market share of the global mining and metals insurance broking business, the acquisition has, practically overnight, increased its geographical footprint to include a vast amount of African mining business as well,” Jameson continues. “We are looking to grow our client base proactively in the African region using the real depth of resource we have locally and access to international placement capabilities that are clearly capable of providing a top quality service.” According to Jane March, Marsh Africa mining divisional executive, Alexander Forbes was one of the leading African mining brokers before the acquisition, and the
the acquisition, will benefit both us and our clients,” she explains. Marsh Africa’s substantial risk consulting business comprises engineers and specialists within respective business sectors, including mining, an industry that produces some of the most complex insurance claims. March says South Africa alone has 23 mining experts and specialists dedicated entirely to Marsh Africa’s mining and metals business, with strong support from specialist risk consulting experts and environmental resource professionals across Africa, and the globe. Internationally, there are over 200 mining specialists. Because they understand the intricacies and needs of the industry, they are able to deliver tailor-made, miningspecific structured risk programmes, assessments and advisory services. “Broadly speaking, the market is undergoing a difficult period currently, with pressure on pricing and retention levels, but we have
“Broadly speaking, the market is undergoing a difficult period currently, with pressure on pricing and retention levels”
it is offering the mining sector an “incomparable” level of mining expertise, with advice and services based on internationally recognised and accepted benchmarks. “Our approach is to partner with our clients to design programmes pertaining exclusively to them. By doing this, we are able to provide our clients with the best risk and insurance coverage at the most economical rates, ensuring we retain our clientele base – the most important component of our business,” March explains. On closing the transaction, Marsh retained its Level 3 status in its Broad-Based Black Economic Empowerment (BBBEE) scorecard rating. “Through focused investment and support, Marsh has made significant achievements in its levels of BEE. The combined Marsh entity will remain strongly committed to continuous improvement in its BEE performance levels,” Jameson concludes.
Jane March combination has brought together two very substantial mining portfolios. Within the present and immediate future, companies across the world are looking at the African continent to expand their mining businesses. It has become the mining continent of choice. “The merger has combined two of the biggest and strongest mining teams in Africa, and globally. We are seeing a lot of investment into Africa, and are expecting substantial growth from the region, which, thanks to
not seen a major reduction in capacity from the mining insurance market,” March notes. “And in comparison to the international mining arena, the South African mining book in particular, has been running well.” Thanks to Marsh Africa’s international connections,
The Marsh Africa mining team leaders: Jane March (left), Debbie Geraghty (right)
Inside Mining 03/2012
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Precious metals: Platinum
EASTERN PLATINUM’S
Meritorious Mareesburg TSX/AIM/JSE-listed platinum major, Eastern Platinum (Eastplats), owner of the Crocodile River mine is on its way to bringing a new mine on stream with the development of its Mareesburg project, GM for Eastplats’ Eastern Limb projects, Dave Marsden, speaks to Laura Cornish about the project’s revival.
E
ven though platinum prices are fairly volatile, and not as high as we would like, Eastplats is in a strong growth phase, and although there is substantial development expansion opportunity across all of our operations, our priority is to ensure our R1.8 billion Mareesburg project officially moves into production early in 2013,” Marsden says. It will increase Eastplats’ overall annual production to 225 000 oz in 2014. In January 2010, the company raised $US350 million (about R2.65 billion) for the project, and in January this year, announced it had also secured a $US100 million finance debt facility, meaning the company is very well financed to project completion and beyond. Situated on the southern part of the Eastern Limb of the Bushveld Complex close to Steelport, the project was first
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conceptualised as a 180 000 tpm run-ofmine (ROM) project, incorporating a new concentrator and underground development of its Spitzkop operation. “The recession forced us to revise the project completely, taking a more conservative approach to its development,” explains Marsden. The Mareesburg project now includes the development of a 90 000 tpm UG2 plant (with an upgrade design in place for a further 90 000 tpm) on its Kennedy’s Vale site, to process ore from the Mareesburg open pit deposit. New order mining rights for both Mareesburg and Spitzkop have been obtained. Once operational, the project will last about six and a half years, and deliver grades to the plant around 4 g/t. Marsden is hoping that the potential European economy financial crisis will
Project highlights: • M&I UG2 resource – 15.9 Mt at 3.92 g/t (3 PGE + gold) • Eastplats interest – 75.5% • Average grade of measured resource – 5.26 g/t • Feasibility study completed in 2010 • New order mining rights granted • Mining permits granted • EPCM well underway for new 90 000 tpm concentrator and open pit mine • Commissioning start-up – Q4, 2012 • Official production – Q1, 2013 improve by 2013, and enable the company to recommence with the Spitzkop underground mining development to contribute to group production. To date, the Mareesburg project is well underway, with R782 million committed.
Precious metals: Platinum
As of December 2011, the detailed engineering for the plant was 81% complete, construction of the plant 12% complete, and in terms of the overall project – 22% complete. The ore will be hauled by road some 30 km from the Mareesburg mine to the plant, which is planned to deliver 19 000 tpm of PGE concentrate at 185 g/t (for 100 000 ozpa) to Impala Refining Services in Springs. The off-take sale arrangement has already been concluded. “We will also produce about 200 000 tpa of chrome, as a by-product,” Marsden adds. An existing power line currently provides 800 KVA across the Mareesburg property – adequate to run administration and workshop/maintenance facilities and 3 MVA has already been secured for the construction phase of the concentrator. The company has applied for 40 MVA in total from Eksom, which will be required to run the concentrator and the Spitskop underground operation as well. Because the processing and plant aspects of the Spitskop project were quite far advanced when it was launched in 2008,
Our priority is to ensure our R1.8 billion Mareesburg project officially moves into production early in 2013 especially with regards to long-lead item procurement, the development since reinstating these aspects of the project has gone extremely smoothly, and meeting deadlines are well within reach. Both mills were purchased from a closed operation in the Philippines, and are currently being refurbished locally by Metso.
“With regards to employment, we have already hired our plant manager, HR manager, head of safety, environmental officers and the vast bulk of senior staff. Because there is huge pressure to employ locals, we initiated an apprenticeship programme, which has already seen 48 locals qualify to work in various positions on a mine. They are currently
LEFT Crocodile River process plant RIGHT On-site construction at Mareesburg
Project Execution Excellence in Platinum
www.fluor100.com © 2012 Fluor SA (Pty) Limited
Precious metals: Platinum Contractors and suppliers: Total contracts placed: 26 Contracts in total: 31
gaining experience at our Crocodile River mine operation until the Mareesburg project is ready,” Marsden explains.
Crocodile River “With the number of projects we have in the pipeline, we could eventually take our annual ounce production up to 500 000,” Marsden notes. Expansion plans at the Western Limbbased Crocodile River will make up part of this bigger growth strategy, together with the “very large resource base on the Eastern Limb at Spitskop and Kennedy’s Vale. While the Crocodile River mine currently consists of two operational sections – Maroelabult and Zandfontein – there are other potential new projects that Eastplats will re-introduce, should the platinum price stabilise at higher prices. Extensive deep development work is continuing at Zandfontein, where a new decline is underway starting at the bottom of the vertical shaft to reach a depth of over 500 m, ensuring access to reserves at depth as well. Extensive development is also underway at the Maroelabult section which consists
RIGHT UG2 platinum bearing reef at the underground Crocodile River mine-the same reef that will be mined at Mareesburg
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of two declines, one for men and material, the other equipped with a conveyor belt for rock transport. Mine development at the shallow Crocette section at Crocodile River mine has been temporarily postponed, but at full production is expected to deliver up to 40 000 tpm, enabling Crocodile River to increase its total output to 175 000 tpm. Kareespruit – another deep level section within the overall Crocodile River mine is also on hold. Overall, Crocodile River should deliver about 125 000 oz for 2012 – less than
K’Enyuka
EPCM plant contractor
Fluor
Project managers
Ukwazi Mining Services
Pit design
Metago (SLR)
Tailings dam design
Earthworks
Aveng Grinaker LTA
Civils
Concor
Tailings dam mobilisation
Fraser Alexander
SMEI
S.M.P.P
Mining contract
To be awarded shortly
E&I
To be awarded shortly
Scader and control
To be awarded shortly
ABOVE Aerial view of Crocodile River mine
its expected output of about 150 000 oz. “We anticipate a 100% increase in annual group production over 2011 production by the end of 2013. The revised development schedule for our projects takes into account the current and forecast market that we operate in to mitigate the financial risks that prevail in the sector. We have a rational, low-risk and low-cost approach to group expansion,” states Ian Rozier, president and CEO of Eastplats.
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Precious metals: Platinum
STABILISING SMOKEY HILLS
Platinum Australia’s pipeline progresses ASX-listed junior PGM company, Platinum Australia (PLA), has overcome various challenges at its single South African producing asset, Smokey Hills. However, the time invested in this mine has been worth it, since the cash it generates will help fund the company’s immediate, large-scale growth strategy, MD John Lewins, tells Laura Cornish.
A
n Eastern Limb-based underground operation, Smokey Hills produced its first PGM concentrate in 2009, but has yet to achieve its nameplate production capacity: 60 000 tpm (run-of-mine, or ROM). “Our business model to date has been contractor-based, and while this has proven successful on the process plant, it has been more difficult in terms of the underground mining contract portion,” Lewins explains. Having dismissed its first mining contractor, the performance of the replacement contractor, JIC Mining Services, was unfortunately impacted by illegal strikes and a fatal incident, all adversely affecting production targets.
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Inside Mining 03/2012
After evaluating the situation, PLA has undertaken to operate the mine “in-house” since early January this year, and implemented a strengthened management team. It has retained almost all of the contractor’s employees – about 800 workers – and is now on target to reach about 60 000 tpm within the second quarter of this year. The UG2 reef plant is designed to treat and produce up to 90 000 ozpa of concentrate, which PLA is targeting to reach within 12 months. (It is projected to produce 70 000 oz for the 2012 calendar year.) Although Smokey Hills currently has about five years of operational life left, Lewins describes the project as an attractive return on investment, but even more
Smokey Hills updated resource: Resource
Tonnes
Grade
Content
Million tonnes
4E g/t
‘000 4E ounces
Snowden – DFS July 2006 Measured
3.6
5.59
650
Indicated
1.9
5.61
344
Total
5.5
5.60
994
Geologix – July 2011 Measured
2.85
5.61
516
Indicated
1.68
5.64
306
Total
4.53
5.63
822
importantly, a cash provider which will help fund the development of its upcoming projects, which will be substantially larger in size.
Kalahari Platinum Project (Kalplats) JV with ARM Platinum – PLA earning up to 49% “Our company strategy has always been to seek out and develop open-pit or shallow underground prospects. These projects take less than half the time to move into production than deeper underground mines are less costly to develop and have lower operating costs,” Lewins outlines. For this reason, its two future projects fit perfectly into the PLA company strategy.
Precious metals: Platinum LEFT Underground stope at Smokey Hills RIGHT Smokey Hills plant
When Kalplats becomes an operational mine, it will represent PLA’s flagship project. Its definitive feasibility study (undertaken by DRA and Sound Mining Solution) has outlined a plant flow sheet with a throughput capacity of 1.5 Mtpa (expandable to 3 Mtpa). This will see Kalplats emerge as a 40– 50 Mtpa ROM operation, delivering about 120 000 ozpa of PGMs over the first five years of its life, with an average grade of about 3.1 g/t. “What makes this project so unique, in addition to its size, is its location, which is not on the Bushveld Complex. It is situated 350 km west of Johannesburg in the North West province,” says Lewins. The project will consist of eight open-pit deposits, with resources defined down to 200 m; all remain open at depth. There are additional four prospects, and numerous other targets. To date, the project has been defined as a 6.7 Moz PGM JORC-compliant resource, including high-grade resource areas of 32.5 Mt at 3.13 g/t (for the first five years). The completed DFS is based on a measured and indicated high-grade resource of 1.5 Moz to a depth of 130 m. “Unlike typical Bushveld Complex orebodies, Kalplats has between 10 and 20 years of open-cast life before it requires a review to develop it further as an underground operation,” Lewins adds. The complex comprises two unusually wide underground reefs (about 15 m apart), which PLA will mine simultaneously, although it remains undecided on whether to use a contract-type operating model (like Smokey Hills) or not. “Unfortunately, because Eskom cannot supply us with power until 2014, the development of this project will be delayed and brought on stream in line when its power allocation is available,” Lewins notes. First production is anticipated for 2015, following the inception of PLA’s third South African asset, Rooderand.
Kalplats – Definitive feasibility study Estimated capital cost: R1.1 billion DFS Results
Base Case
November 2011
ZAR
US$
ZAR
US$
Capital cost
Million
1.145
150
1.145
140
Throughput
tpa
1.5
1.5
1.5
1.5
Grade
g/t 3E
2.96
2.96
2.96
2.96
Opex
Per tonne
214
28.2
214
26
Per oz
3.155
415
3.155
385
Basket price
Per oz
7606
1001
9309
1150
NPV
Million
530
70
1347
164
Cash flow
Million
1 598
210
3 205
391
IRR
%
24.4
24.4
41.6
41.6
at 3.5 to 4.5 g/t, mining up to 40 mtpa in total from the open pit,” Lewins says. This will deliver about 115 000 ozpa of 4E PGM concentrate. Rooderand has a total resource of 28.8 Mt at an average grade of 4.55 g/t for 4.2 Moz of 4E PGM material. It outcrops to a depth of 500 m. The open-pit portion of the project comprises 9.6 Mt at 3.49 g/t to a maximum depth of 180 m, and the underground
portion (focusing primarily on UG2 ore) contains 7.3 Mt at 4.39 g/t from an average stope width of 1.2 m. PLA submitted a mining-rights application in December 2011 and expects the Department of Mineral Resources (DMR) to grant the licence in December this year. “Following this, we will commence with plant construction, which should take about 15 months, and move into production in early 2014.”
Pre-feasibility results PFS Results
Base Case
November 2011
ZAR
US$
ZAR
US$
129
968
118
Rooderand Platinum Project (Rooderand) PLA – 30%, Atla Mining Resources – 70%
Capital Cost Million
968
Throughput
t/annum
1.2
Situated on the Western Limb of the Bushveld Complex, Rooderand’s DFS is due for completion in the next quarter of 2012. The pre-feasibility study was completed in April 2011. Because the project has power and water allocation already, its development will overtake Kalplats. “At this point, the plant is designed to treat 1.2 Mtpa of Merensky and UG2 reef,
Grade
g/t 4E
3.46 (Open Pit) 4.39 (u/ground) 3.46 (Open Pit) 4.39 (u/ground)
Site Opex
Per tonne
605
80
605
74
Per oz
5.025
670
5.025
613
Basket Price Per oz
11.812
1,575
11.013
1.343
NPV10
Million
1.616
215
1.598
195
Cash Flow
Million
4.485
598
4.362
532
IRR
%
40
40
41
41
1.2
Inside Mining 03/2012
17
Precious metals: Platinum
ZIMBABWE’S PLATINUM GEM
Ngezi’s new belt notches Zimbabwe-based Ngezi platinum mine, one of the largest PGM producing operations in Africa, is currently undergoing the second phase of what will likely unfold as a multi-phase expansion programme across Zimbabwe’s Bushveld Complex-equivalent, the Great Dyke, writes Laura Cornish.
N
gezi mine first commenced production at the end of 2001 as an open cast operation. Today, having almost completed the objectives of the Phase I expansion programme, Phase 2's development is well underway.
Phase I and II The $US340 million (about R2.58 billion) Phase 1 project (which was started in 2006) included the development of two underground mines – Portal 1 and Portal 4, a new 2 Mtpa concentrator and surface infrastructure. Nameplate production capacity from Phase 1 was achieved in 2009. “By June this year the Phase 1 expansion will be finished. We are currently completing the final underground development at
18
Inside Mining 03/2012
Portal 4 with access given by the mine to Sandvik Materials Handling to equip Ore pass 4,” says DRA Minerals Processing project manager, Willem Postma. DRA is the EPCM contractor for the Phase I and II expansion projects. “The ultimate future expansion plan for Ngezi will see a network-like connection linking several crushing installations and conveyors to various portals, all linking to concentrators for processing,” Postma continues. The $460 million Phase II expansion (DRA’s managed portion is $320 million) commenced in August 2010 and includes the development of a new 2 Mtpa underground mine - Portal 3 – doubling the capacity at the concentrator to 4 Mtpa, and other infrastructure, including a 7 km
overland conveyor linking the Portal to the concentrator. “An entire new tailings dam is also being constructed and is designed to accommodate 10 Mtpa of material which is the anticipated final production capacity when all phases have been completed,” Postma notes. To date Phase II is progressing as planned with the box cut, surface infrastructure and pre-crushing development at Portal 3 completion expected by March this year. Development of the overland materials handling system, plant expansion and tailings dam construction is due to be completed in the first quarter of 2013. Sandvik Materials Handling has been contracted to manage the entire materials handling sections.
Precious metals: Platinum
Sandvik Materials Handling’s involvement in the project began in early 2004 when an initial pre-feasibility study, followed by fully-fledged feasibility studies, was carried out on the use of conveyors to transport ore and waste. This arose from a decision to move mining operations from surface to underground. “Our first project implementation involvement took place on the Portal 2 section, where the first portal was opened,” Anton van Niekerk, business division manager of Sandvik Materials Handling division, says. “The scope of work included a tip, crushing plant and 1.5 km of conveyors to an existing stockpile. Here the material is loaded onto 100 t capacity road trains that carry feed material to the Selous Metallurgical Complex (SMC) some 77 km away. “After this installation, we were approached to design and construct the Portal 1 conveyor system, which also included a tip, primary crushing and a 2.5 km conveyor with vertical and horizontal curves to the main stockpile.” “Our involvement has continued with the construction of the third decline —Portal 4
The indigenisation plan Zimplats will establish a community share ownership trust in Zimbabwe as an integral part of its indigenisation implementation plan. Shares, constituting 10% of Zimplats’ issued share capital will be sold to the Trust at a fair, independently determined value. Zimplats undertakes to fund the Trust to the amount of $US10 million over a period of three years to enable it to achieve its objectives prior to it receiving dividend income streams from the Trust’s shareholding in Zimplats. The Trust will provide a long term investment opportunity for the operation’s local communities and enable them to share in the future growth of Zimplats.
– which includes the installation of an underground conveying system comprising sacrificial belts, decline belts and four ore passes as well as a jaw crusher located on the surface.” Van Niekerk says material from the crusher is conveyed to a storage silo and from there to a road load-out station. At
The $US460 million Phase II expansion commenced in August 2010 and includes the development of a new 2 Mtpa underground mine
The 2 Mtpa Ngezi concentrator with expansion underway (in background)
Inside Mining 03/2012
19
Precious metals: Platinum
LEFT Underground mining at Ngezi
Phase III DRA has also undertaken to revalidate a bankable feasibility study (BFS) for a Phase
To date, Phase II is progressing as planned with the box cut, surface infrastructure and precrushing development at Portal 3 completion expected by March this year
the same time, an ore receiving and crushing facility has been installed at the new concentrator consisting of a tip, secondary and tertiary crushers as well as secondary and tertiary screens.
Postma adds that at the moment on Phase I and II, more than 2 000 personnel from 23 contractors are performing work. The project team also recently celebrated 3 million losttime-injury (LTI) hours on the project.
III expansion at Ngezi. The BFS will be submitted to the client, and a decision to the project will be evaluated in August. “Our BFS looked at establishing a new mine – Portal 6 – and the establishment of another 2.2 Mtpa concentrator,” Postma briefly notes.
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Precious metals: Platinum
GOODBYE DAVID BROWN
Welcome Terence Goodlace On 18 January Impala Platinum (Implats) CEO, David Brown, announced his resignation – with effect from 30 June 2012 – to pursue his own interests, he says.
B
rown joined the Implats board of directors in January 1999 as CFO and was appointed CEO in 2006. He was instrumental in the development of Implats’ Zimbabwean assets, and was also responsible in securing the Royal Bafokeng Nation as the anchor empowerment partner for the group, ensuring the development of this partnership to the benefit of all stakeholders. In addition, Brown has successfully guided the group through the difficult business environment of recent years, maintaining a strong balance sheet, while ensuring a balance between investment and return to shareholders. Dr Khotso Mokhele, chairperson on the Implats board, thanked Brown for his valuable contribution to Implats during his tenure as group CEO saying, “David Brown played a pivotal role in driving the success of the group. The board wishes him well in his future endeavours.” The end of January also saw Implats annce Goodnounce Brown’s successor – Terence O become mess lace, whose position as new CEO becomes effective as of 1 July 2012. Goodlace brings with him extensive ked iin n th thee mining experience, having worked 970s when mining industry since the late 1970s
international and South Afrihe started his working career can operations. as a learner miner. Dr Mokhele extended his He worked his way up to congratulations to Goodlace GM at Kinross and Evander on his appointment, saying gold mines, obtaining his Mine Goodlace, who has served on Managers Certificate of Comthe Implats board since August petency (Metallipherous Min2010, brings a wealth of mining) in 1988. He also holds a ing knowledge to the company Bachelor of Commerce degree and will be a great asset to the from the University of South Implats team. Africa and a Masters in BusiThis year already signifies a ness Administration from the David Brown tumultuous one for Implats – University of Wales. remaining extensively engaged He is currently the CEO of in what is probably one of the largest workMetorex Limited, a JSE company that was force strikes in the mining industry. de-listed on 16 January 2012, following the The company lost thousands of employsuccessful takeover by the Jinchuan Group. ees, due to an on-going strike, although Goodlace previously held various senior
The end of January also saw Implats announce Brown’s successor – Terence Goodlace, whose position as new CEO becomes effective as of 1 July 2012 stra st trate tegi gic ic an and d op strategic operational position ti ns wi with h Gold Gol old d Fields, F tions including member ship h of their executive membership committee and head of
it has re-employed a large portion of its original team. The company continues to engage with the relevant unions to resolve all issues.
Terence Goodlace
Inside Mining 03/2012
23
Precious metals: Platinum
ENCOURAGING PLATINUM PROSPECTS
Platfields pleads for cash The mining industry has largely recovered from the recession, but for those few junior companies active in South Africa, trying to raise cash continues to prove extremely difficult, despite the positive attributes of their project prospects, CEO of junior platinum company, Platfields, Bongani Mbindwane, tells Laura Cornish. Liger JSE-listed platinum-exploration company, Platfields, wants nothing more than to progress its well-advanced exploration asset, Liger, to operational status. “What stands between the company and its goal is a dried-out market, severely lacking in cash funds to invest in earlystage projects, despite their potential,” says Mbindwane. While the development of a full-scale underground mining operation requires about R2 billion, a small $US30 million (about R230 million) is all that is required to see Liger become operational and able to start generating
Leeuwkop is the priority area. Tigerpoort will contribute only towards the latter half of the project’s lifespan. Platfields has completed a desktop mine design and feasibility study for Liger, and believes that once the operation becomes cash-generative, it will assist in developing the project further. “Liger will eventually be a twin-decline Merensky and UG2 operation, starting at about 600 m underground, and will build up to a capacity of around 100 000 tpa of platinum material over a 28-year lifespan. “As the project currently stands, its value is about R194.4 million, but should the
Leeuwkop Resource category
Tonnage (Mt)
Grade 4E (g/t)
Content (Moz)
Inferred
9.552
4.75
1.459
Exploration target
23 - 31
3-5
2.2 - 5
Resource category
Tonnage (Mt)
Grade 4E (g/t)
Content (Moz)
Exploration target
9 - 13
3-5
0.8 – 2.1
Tigerpoort
cash as a 50 Mt open-cast operation. The cash would be used to firm up the resource and employ a contractor to start mining. “The plan at this point is to reach an agreement with one of the many concentrator operators in the region to process our ore, as opposed to undergoing a much more extensive cash-raising exercise to obtain enough money to build our own plant,” Mbindwane outlines. The project (comprising the contiguous Leeuwkop and Tigerpoort prospecting rights), is situated on the Eastern Limb of the Bushveld Complex, and lies immediately to the west and along strike of Anooraq Resources’ Bokoni mine. At this point,
24
Inside Mining 03/2012
confidence level and resource understanding increase, with an indicated resource defined to a depth of 1 300 m, the value of the project increases to R630.5 million,” Mbindwane explains.
Berg The 6 199 ha Berg UG2 project lies on the southern side of the Eastern Limb, bordering Nkwe Platinum’s Kliprivier project and Northam’s Booysendal project. “It lies, in fact, on the same strike as Booysendal,” Mbindwane notes. It has a 13.7 Mt indicated resource, averaging about 2.17 g/t, and a 10 Mt inferred
Precious metals: Platinum
resource average of about 1.82 g/t. Another phase of drilling is required to better define the grade and orebody structure. This project is not a priority at this stage, but remains an integral part of the Platfields long-term growth strategy. “Its future development would be wellsuited to a joint-venture arrangement, and though we have not finalised any such agreement, we are in discussions with ‘prospectors’ in the area.”
“What stands between the company and its goal is a dried-out market, severely lacking in cash funds to invest in early-stage projects, despite their potential” Bongani Mbindwane
Grootfonteinberg Platfields’ short-term focus is to emerge as a platinum miner and for this reason, the company is looking to divest its goldexploration project, but has not found a suitable buyer. It is situated in the Transvaal Drakensburg gold fields and covers a total of 301.1 ha. A single prospecting right is held over four discontinuous portions of several farms in the area, including Lisbon, Little Jonker and Ceylon. The main focus, however, is the portion of the farm Grootfonteinberg 561KT, which is adjacent to Simmer & Jack’s historic Beta gold mine.
FIGURE 1 Geography
BELOW The Liger project’s potential is massive, but remains untapped
FIGURE 2 Leeuwkop exploration budget vs. potential value addition
FIGURE 3 Berg PGM Project: location
Inside Mining 03/2012
25
Precious metals: Gold
HISTORY RE-CHARGED
Cons Murch: an attractive asset Cons Murch (formerly known as Consolidated Murchison) may be one of the oldest mines in South Africa, but 66.6% diversified resource company shareholder, Village Main Reef, is implementing an action plan aimed at rejuvenating the mine and enhancing its remaining life-of-mine (LOM) potential, writes Laura Cornish.
T
he near-surface reserves of Cons Murch may be largely depleted, but the antimony (and gold) producing operation, situated 50 km from Phalaborwa in Limpopo, still has significant ounces to offer at depth – currently around 1 km and below. Cons Murch is the only antimony concentrate producer in Africa, and the largest exporter of antimony concentrate to India. The mine has three operating vertical shafts: Beta, Monarch (including Monarch surface decline) and Athens. Monarch and Athens are currently being developed at depth through underground decline extensions, and Beta is currently undergoing deep exploration drilling to confirm mineralisation at depth. “We have outlined a very strategic business plan to see Cons Murch increase its monthly milled tonnage from about 23 000 tpm to 35 000 tpm over a three-year period,” explains Cons Murch metallurgist, Lebo Modise. The necessary steps required to see this vision materialise are already well under way and include the following: • Beta shaft deepening – deep exploration drilling under way • Athens shaft deepening – under way
26
Inside Mining 03/2012
• Monarch shaft deepening – under way • Gravelotte surface decline – site establishment and infrastructure planning • A feasibility study looking at slimes dam reclamation is also under way, although this is a separate project not related to the run-of-mine production build-up.
Athens Shaft Average antimony grade: 3.30% (in situ) Average gold grade: 0.26 g/t “We have intersected the reef at 29 Level (1 km underground) and are working towards establishing 31 Level (1.1 km) as well,” says Dalubuhle Ncube, Village Main Reef operations director. Although Athens is an active operating shaft, the intention is to increase its monthly run-of-mine (ROM) output from 6 000 tpm to 7 000 tpm. At full production it will be mainly a trackless, mechanised mining operation. Ncube expects this target to be achieved in the next 12 to 18 months.
Monarch Shaft Average antimony grade: 3.20 % (in situ) Average gold grade: 2.5 g/t The Monarch deepening project constitutes
two different projects: a decline development underground and the extended development of an old decline from surface. • Monarch underground decline A 31 Level has been established at about 1.1 km depth, and development towards 33 Level (1.2 km) is under way. This project is to ensure that the Monarch monthly production target of between 7 000 tpm and 8 000 tpm is maintained as certain upper levels of conventional mining approach depletion and closure. This development project is slightly ahead of that of Athens, and is expected to be complete and in production in 12 months’ time. • Monarch surface decline The surface decline is an existing shaft, linked to the main vertical shaft at Monarch, and functions as a second escape route. “The extension of this surface decline commenced in 2010 and is already in production, at around 1 000 tpm. We will develop and ramp this up to about 5 000 tpm in the next 18 months,” Ncube says. With the additional production from the surface decline, Monarch will contribute
Precious metals: Gold between 12 000 tpm and 13 000 tpm of the total production target.
Beta Shaft Average antimony grade: 1.93% (in situ) Average gold grade: 0.89 g/t The Beta shaft deepening project is not as far advanced as that of Athens and Monarch. “We are under way with exploration drilling at 22 Level, the lowest level at about 700 m depth, and need to upgrade our inferred category resource before deepening activity can commence.”
box-cut excavation. We aim to start blasting the decline in March/April this year,” Ncube explains. The decline will be developed in a spiral pattern to a depth of 150 m (5 Level). The development design and mining method will be similar to that of the currently operating Monarch surface decline. At full production, Gravelotte is expected –
“We have outlined a very strategic business plan to see Cons Murch increase its monthly milled tonnage from about 23 000 tpm to 35 000 tpm over a three-year period,” Cons Murch metallurgist, Lebo Modise
Like Monarch, many of Beta’s upper levels are due for imminent closure, and Village Main Reef needs to maintain its monthly output of between 7 000 tpm and 8 000 tpm. Newly established deeper levels are expected to start contributing towards production targets in the next 18 to 24 months.
like the vertical shafts – to deliver about 7 000 tpm of ore to the process plant. It is a high-grade antimony, shallow underground orebody, with low-grade gold contained. Ncube expects first production from Gravelotte in November/December this year, with ramp-up to full production by March 2013.
Gravelotte Project (capex: R7 million) Average antimony grade: 2.53% (in situ) Average gold grade: 0.32 g/t Without Gravelotte, the 35 000 tpm target for Cons Murch will be very difficult to achieve, Ncube notes. Situated close to the town of Gravelotte, this is a Greenfields surface decline project, and not an extension or deepening of the mothballed Gravelotte vertical shaft, although the same orebody is being targeted. “We are currently establishing surface infrastructure, and doing site clearance and
Slimes dam reclamation project The Cons Murch property contains two historic slimes dams, both with the potential to contribute further to the project’s overall output. A confirmatory drilling exercise and bulk sample-testing on both dams was completed last year. A feasibility study determining the economic viability of processing both dams is currently under way. “The project calls for a separate plant, designed specifically to treat tailings material, which we are evaluating as well. It needs
ABOVE Drill Rig Underground. The photos above are showing the trackless mechanised mining method that Cons Murch is moving towards
to have a minimum processing capacity of 50 000 tpm,” Ncube notes. The first dam likely to be processed has a 6 Mt resource, and the second dam an estimated 8 Mt resource. A combined extractable resource of 12 mt is expected to average a grade of about 0.46 g/t.
Plant refurbishment (capex: R11.2 million) Considering that the plant is historic, Village Main Reef has also invested in refurbishing and upgrading the plant, which already has the capacity to process up to 45 000 tpm. This project was completed at the end of February this year. At steady-state production of 35 000 tpm milled at the planned grades, Modise expects to see improved recoveries from the plant. He anticipates an increase in antimony recovery from 80% to between 85% and 90%, and gold recoveries to improve from about 60% to between 70% and 80%. FROM FAR LEFT The flotation circuit (images 1 & 2); The mill operation at the refurbished plant; Monarch headgear
Resources and Reserves Resources Antimony 9.5 Mt Gold 9.5 Mt
2.17% -206 848 t 2.44 g/t
Reserves Antimony 993 000 t Gold 993 000 t
2.67% 3 g/t
-26 547 t -96 000 oz
Life of mine 11 years +
Inside Mining 03/2012
27
Precious metals: Gold
Gold concentrate from Barberton operation
BARBERTON GOLD DUMP RECLAMATION
A Phoenix gold equivalent Platinum and gold producer, Pan African Resources (PAR), remains on track to elevating its production profile – in gold this time. Having recently brought its Phoenix tailings (platinum recovery from chrome tailings) project online, it is applying this successful formula to its Barberton gold project, writes Laura Cornish.
I
t has been a slow, but steady journey to elevate Barberton gold mine’s production profile to 100 000 ozpa. Having successfully achieved this, PAR is now implementing a new project at Barberton to increase the project’s status to 120 000 ozpa. “We have received board approval to retreat some of Barberton’s historical dumps, which for Phase 1 will deliver 160 000 oz of gold over nine years,” says MD, Jan Nelson. The dumps constitute 120 000 oz of material, and another 40 000 oz will be processed from underground current arisings. The Phase 1 Barberton Tailings Retreatment
28
Inside Mining 03/2012
Project (BTRP) will include its own process plant, with a 100 000 tpm/1.2 Mtpa (run-ofmine, or ROM) capacity. “Its methodology, design and construction are comparable with those of Phoenix. We have appointed the same engineers (Basil Read Matomo) who successfully delivered Phoenix ahead of time, to supply this new plant as well,” mining executive, Ron Holding, states. Around £27 million (about R325 million) of capital has been approved for Phase 1, which the company will fund from internal cash flow. “We also have a R150 million credit
facility with Nedbank Capital which we can use if necessary, but we will not need to go to the market to raise cash,” Nelson points out.
Phase 1 The BTRP Phase 1 project constitutes three tailings dams. The first to be treated is the Bramber dam, which comprises tailings material from the Fairview mine from 1988. It has been dormant since reaching the end of its life in 2010. The new tailings dam is an extension of Bramber, but its material is not included in the project at this stage. “Bramber has a 3 Mt resource, and consists
Precious metals: Gold of two portions: a BIOX high-grade and a conventional processed (flotation) one, ” new business executive, Pieter Wiese, explains. The BIOX portion (74 000 oz) will be processed first, and has an average grade of about 3.06 g/t. Once the Bramber tailings dam has been completely reprocessed, the remaining dumps (Harper North and South) will follow. PAR acquired these two dumps for R10 million last December, from a single operator whose own recovery plant was not producing adequate recoveries. “Harper North and South, also historic Fairview dumps, contain an additional 3 Mt, and comprise large portions of high-grade calcine material originally processed by roaster,” Wiese outlines. The acquisition included taking over all the Harper employees – 30 staff in total – who will all retain their jobs. PAR has also acquired property to the west of the Bramber tailings site, which will eventually be used as the new tailings facility. Construction of the plant (civil works and earthworks) started in February/March this year, and long lead items, such as tanks, a kiln and agitators, have already been ordered. Because the Bramber dump material is so fine, the plant does not require a mill, although space has been allocated for it, as one will need to be introduced at a later stage when the older dump’s processing starts. The plant will consume only 4 500 kW of power initially, and will require an additional 1 400 kW once a mill is incorporated. First production is scheduled for February 2013.
Phase 2 The BTRP Phase 2 project entails retreating Barberton’s 6.8 Mt Consort dump. “We are evaluating how we will incorporate this dump within the entire project profile,” explains Nelson. Options at this stage include optimising the Consort plant or trucking the material to the Bramber plant, about 15 km away. Either way, this dump reclamation will increase the total project’s lifespan to about 12 years, Wiese points out.
Beyond Consort, this tailings retreatment project remains open with opportunity. “We are evaluating the Sheba dumps, and may even look for agreements with other players in the area who have tailings dams that are worth retreating,” Holding mentions.
The future of Manica Although the Mozambique-based Manica gold-exploration project has been part of PAR’s portfolio since about 2004, Nelson announced his decision late last year to spin the asset outside of the company and list it on an international stock exchange, in March. TWP Investments CEO, Dean Cunningham, has been appointed as CEO-elect, and will run the company (to be called AuRoch) as CEO post-listing. Manica has 2.96 Moz of gold resource at 1.82 g/t. 1.38 Moz of this is already in the measured and indicated categories, at 1.75 g/t. “This is a typical Greenstone-belt deposit, which tongues into Mozambique from
Zimbabwe. It is the key project in the Manica area, and we hold a 25-year concession on the property,” Cunningham outlines. The project is due to move into a BFS shortly. Cunningham adds that they are still looking for and evaluating additional property opportunities in the surrounding areas. “The project will likely be more viable as a 5 Moz project, which means that a lot of additional exploration drilling is still required,” Nelson notes. The IPO (initial public offering) is anticipated to raise enough money to develop a 250 000 tpm milling operation (BIOX or CIL), which will last around 11 years. “The appointed team is extremely capable and competent, and I have no doubt this project will develop further now,” Nelson adds. PAR will retain a maximum stake in the project of 35%, and will not divest for two years. Nelson will take a seat on the board, as a non-executive director.
3D image of BTRP plant
BTRP Phase 1 project highlights • The BTRP comprises a total resource of 654 000 oz (13.7 Mt at 1.38 g/t). • It has a reserve of 248 000 oz (7.7 Mt at 0.56 g/t). • At a gold price of R400 000/kg, the project has an NPV of R336 million (discount rate of 7.5%). • It will increase current production at Barberton by 21% to 120 000 ozpa. • It is expected to produce gold at an operating cash cost of R194 000/kg.
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OfÀce 101 - First Floor The Firs Cnr. Cradock and Biermann Avenue Rosebank Gauteng Tel: +27 (0) 11 243 2900 Website: www.panafricanresources.com e-mail: info@paf.co.za
The African Focused Precious Metals Producerr
Profile
BASIL READ MATOMO
All that glitters – IS gold Metallurgical processing specialists, Basil Read Matomo (Matomo), will attribute a significant portion of its growth this year, and beyond, to the gold sector, thanks to three new projects it is currently working on, MD Erik Bruggink and projects director Ken Dyamond, tell Laura Cornish.
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atomo was recently appointed as EPC contractor for Pan African Resources’ Barberton Tailings Retreatment Project (BTRP) – Phase 1, having previously completed all the required feasibility work started in November last year. In October last year, the company also successfully completed the construction of Pan African’s Phoenix Chrome Tailings Retreatment Plant (CTRP) – within budget, and two months ahead of schedule. “The BTRP contract entails the development (including design, procurement and construction) of a 100 000 tpm (ROM) gold process plant that will be used to retreat material from the Bramber tailings dam – the original Fairview dump site,” says Bruggink. In addition to processing 86 000 tpm of existing Bramber material, it will also treat current tailings from the Fairview concentrator and the Fairview BIOX plant, totalling 14 000 tpm. The material will be pumped to the plant, where it will go through a conventional carbon-in-leach (CIL) circuit (including elution, electro-winning and a smelt house). It will also have its own gold room. Earthworks for the BTRP is planned to start at the end of March, with mechanical installation commencing in June. Commissioning is targeted to begin at the end of March 2013, with the achievement of full production occurring in August 2013. Bruggink adds that the plant should deliver recoveries of between 45% and 55%, at grades of between 0.96 g/t and 3 g/t. It will recover 160 000 oz of gold over the life of Phase 1, increasing Barberton’s total gold production from 100 000 to 120 000 ozpa. Of the £27 million (about R336 million) approved for the project, Matomo’s portion is valued at about R154 million – excluding the mill, some surrounding infrastructure requirements and a second thickener, which will be required to process the
Bramber tailings dam
adjacent Harper North and South dump material, following the completion of the Bramber dump retreatment. At the peak of construction, Dyamond expects to have about 150 workers (including contractors) on site, many of whom will be sourced from the Nelspruit/Barberton area, which will be part of Matomo’s continuous community involvement drive. “Matomo has extensive gold tailings retreatment experience, and we know the process inside out. We believe this project was awarded to us based on our experience and our previous record of successful project delivery. Barberton Mines GM, Casper Strydom, will also assist in heading up the project on behalf of Pan African Resources, together with Barberton Mines metallurgical manager, Jonathan Irons (in terms of processing).
“The study is being executed using the Matomo philosophy, which is tailored to suite the clients’ specific requirements, without compromising on quality and safety,” Dyamond notes. The study includes a 40 000 tpm gold processing plant, as well as a massive infrastructure portion, including major road upgrades to site from the closest town (Bunia), bridges, water, power, and even an upgrade of the Bunia itself. Matomo already has a six-team construction supervision crew on site, who have started with the ‘early works’ and are expecting to start full execution by mid-2012.
In addition: Matomo is also underway with an EPC contract for a small gold plant in northern Sudan, and have also been appointed by holding company, TWP Projects, to handle the full EPCM feasibility study for AngloGold Ashanti’s new Greenfield Mongbwalu Gold Project in the north eastern Democratic Republic of Congo (DRC). It is situated about 150 km south of Randgold Resources’ Kibali project. RIGHT 3D image of the BTRP
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Precious metals: Gold
PERSEUS THE GREAT
Edikan strikes gold It was nothing short of an extremely successful joint venture arrangement between minerals processing company, DRA Mineral Projects (DRA), and construction company, Group Five Projects, that delivered a new Greenfields gold processing plant in remote Ghana in just 14 months, DRA senior project manager, Roger Paton, tells Laura Cornish.
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SX/TSX-listed West African gold company, Perseus Mining, celebrated its change in status from an exploration and development company to
a gold operator following the successful first gold pour (21 August 2011) at its Edikan gold mine, situated just 65 km from AngloGold Ashanti’s 60 Moz Obusai gold operation.
Areas of responsibility • DRA was responsible for all the process, infrastructure, civil, mechanical, electrical, instrumentation and control engineering designs, as well as equipment procurement and inspections and all the commissioning of the plant. • Group Five’s scope was for the fabrication of all SMPP, logistical delivery to site of all fabricated SMPP and electrical and instrumentation (E&I) items, as well as the delivery of all discipline equipment manufactured internationally and the full construction management of the built plant. Group Five personnel conducted all the SMPP and E&I construction work and also provided commissioning assistance to DRA. • DRA’s sister company, Minopex, which specialises in contract operation and maintenance, assisted DRA with the commissioning of the plant and assisted in training the client’s operators prior to the start of commissioning. The company has an established Specialised Work and Training Team (SWAT), specialising in assisting clients or EPCM contractors with the commissioning phase of a mineral processing facility. They are experienced in the commissioning phase, the type of equipment found throughout the plant and with the specific process involved. They include shift superintendents, senior process operators and control room operators who will bring a recently constructed plant to order as the client may still be training his personnel. The dedicated SWAT will assist with the efficient ramp up to nameplate capacity of any mineral processing plant.
In context, Edikan (formerly the Central Ashanti gold project) is located 300 km north-west of Accra, Ghana. The DRA/Group Five (Central Ashanti JV) Lump Sum Turnkey (LSTK) Project kicked off in November 2009 and site construction started in June 2010. “From the start of jungle-clearing, from 0% on site to 100% construction and commissioning complete and the first client gold pour, this equates to 14 months, which is not bad for 'newly weds' given the remote location of the facility and the difficult working conditions,” Paton describes. The JV contract included the engineering design, equipment procurement, structural steel, plate-work and piping (SMPP) fabrication, logistical delivery to site, SMPP and E&I construction, as well as commissioning of the 5.5 Mtpa gold processing plant and ancillary infrastructure. “The success of the project can be attributed to the synergy that exists between DRA, with its engineering designs, procurement, commissioning and project management capabilities and Group Five’s fabrication, logistics controls and construction management expertise,” says Paton. At the peak of construction, there were about 800 personnel on site, largely employed from local communities – something Perseus placed great priority on. The plant features a 54-inch gyratory primary crusher, a stockpile with four vibratory pans feeding material that discharges onto the 196 m long, semi-autogenous grinding (SAG) mill feed conveyor with a feed rate of 685 tph. The SAG mill is a closed circuit grinding system measuring 34 ft in diameter, 22 ft in length and incorporating an 14 000 kW
RIGHT Edikan plant during construction
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Precious metals: Gold
Edikan project facts • • • •
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The success of the project can be attributed to the synergy that exists between DRA and Group Five dual-drive with classification hydro-cyclones and in-circuit pebble crusher. The gravity circuit, fed by hydro-cyclones underflow, consists of two centrifugal concentrators feeding product into the cyanide dissolution reactor. Secondary gold recovery is achieved through a 7-cell rougher flotation circuit, each cell with a capacity of 70 m3, fed by the SAG mill cyclone overflow, which operates in conjunction with a rougher concentrate thickener and concentrate re-grind mill that produces feed to the carbon-in leach (CIL) circuit. The gold is extracted from loaded carbon in the elution plant with the final electrowinning and refining taking place in the gold room. The plant infrastructure included compressed air, oxygen, water services, various flotation and CIL reagents, overland tailings pipelines, return water pump stations, roads
and various plant buildings. The process plant included a total of 230 electric motors and 750 instrumentation I/Os. Paton says, “Despite the tight construction timeline involved in this project, we remained on schedule. The DRA/Group Five JV model has proven to be highly successful for both companies, despite all the challenges encountered and overcome during the project life cycle. The excellent team effort and camaraderie that existed was one of the many reasons for the DRA/Group Five success story in Ghana. “Having established its track record in process plant mine engineering and construction in South Africa and internationally, DRA is currently expanding its footprint deeper into Africa. Our list of completed projects includes some of the largest in Botswana, Mozambique, Zimbabwe, the Democratic Republic of Congo, Tanzania and Zambia.”
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Tenement: 650 km² of tenements Acqusition: Mid-2006. Life of mine: Currently 14 years. First gold production: 21 August. 2 666 g represented gold recovered from the gravity circuit. Commercial production was achieved on 1 January 2012. Mining ramp-up is progressing, and is on schedule for an average mining rate of 1 100 000 m³ per month. Approximately 4 200 000 m³ of material has been mined to date, including about 700 000 t of ore. Measured and indicated resources: 5.2 Moz (December 2011). Inferred resource: 1.7 Moz (December 2011). Reserves: 3.3 Moz (December 2011). Bokitsi deposit is a new addition to the resource inventory. Indicated resources at Bokitsi total 2.6 Mt at 2.5g/t gold containing 212 000 oz of gold, and inferred resources are 1.6 Mt at 1.7g/t gold containing 89 000 oz of gold. Upside potential: Significant - with up to six drill rigs operating at Edikan during 2012, Perseus is aiming to add 500 000 oz of reserves each year for the foreseeable future, as well as make at least one new discovery each year.
Edikan production statistics • Average process throughput increasing from 5.5 Mtpa to 7.9 Mtpa. • Targeted gold production for 2012 is 225 000 oz, and 280 000 oz in 2013, with further intended increases beyond. • Cash costs $650/oz.
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Precious metals: Gold
DOING JOINT VENTURES – THE RIGHT WAY
DRA/Group Five deliver gold The key to delivering projects in remote Africa is collaborative team work and solid experience of working on the continent. It was these key elements that saw the DRA/Group Five joint venture (JV) successfully build and commission a 5.5 Mtpa processing plant for Perseus Mining’s Edikan gold project in Ghana, Group Five project contracts director, Tony de la Motte, tells Laura Cornish.
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he Edikan project’s success is based on the well-suited union between 50:50 JV partners, DRA and Group Five. “The people across both companies ‘gelled’ together perfectly, enabling every person to perform optimally and deliver a Greenfields processing plant in 14 months, in one of the more remote areas of Ghana,” De la Motte explains.
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The Edikan project celebrated its first gold pour in August last year, and is currently ramping up to its full production capabilities. De la Motte explains that the JV out-bid two other engineering companies tendering for the job – which was awarded as a Lump Sum Turnkey (LSTK) project. “We were the most competitively priced, and always aspire to save the client money wherever possible,” he adds.
Group Five’s specific work on the project included managing logistics, on-site construction and bulk procurement. At peak construction, the company was managing about 8 400 people on site, excluding those under DRA management. “Having been involved in numerous projects in Ghana over the last 16 years, our understanding of the country, how it operates, and how to operate in it, contributed
Precious metals: Gold
largely to our ability to satisfy the client’s needs and deliver on our promises,” De la Motte continues. On numerous occasions, Group Five applied innovative techniques to solve challenging situations and prevent project delays. “We constructed many of the buildings off base and then relocated them to their correct place later on in the project’s development, for example,” De la Motte outlines. “Overall, I cannot emphasise enough how smoothly Edikan progressed, thanks to such a sound partnership. I hope to have many more partnerships exactly like this one with DRA in the future.” Broadly speaking, Group Five’s aspiration for future projects is to focus heavily on limiting man hours as much as possible,
and to really understand what the client wants and needs. “We spent a lot of time during the worst periods of the recession training our staff and improving and developing their skills, and did not undergo a major retrenchment situation,” he reveals. Considering the company’s mining order book is 25% bigger than what it was prior to the onset of the recession, this has placed the company in a position of strength for projects it is underway with and will take on in the future. Group Five’s current project portfolio stretches across
numerous African countries at present, and includes work for a zinc project in Burkina Faso, three gold projects in Ghana, four copper projects and a gold project in the Democratic Republic of Congo, a portion of the plant expansion at Grootegeluk, as well as two heavy oil peaking hour plants in Balito and Coega.
OPPOSITE Ore being conveyed from the primary crusher at Edikan RIGHT Side view showing portion of the Edikan process plant
Group Five is a diversified construction services, materials and infrastructure investment group We have the skills and experience to deliver any aspect of an infrastructural project, including concept development, manufacturing, construction and operations and maintenance. – We operate in Africa, the Middle East and Eastern Europe – Ranked 4th in JSE SRI Index 2010 – Winner of DEKRA Ethics Award 2009 – 9th in Financial Mail’s top empowerment companies 2010 – Construction Charter Level 2 BBBEE rating – Employing 12 000 people in 23 countries – Celebrating 37 years as a listed entity
Group Five Civil Engineering (Pty) Ltd 16 Skeen Boulevard, Bedfordview, 2007 I PO Box 1750, Bedfordview 2008, South Africa I Tel +27 11 409 6600 I Fax +27 11 409 6750 I Email civeng@groupfive.co.za I Website www.groupfive.co.za
Group Five Projects (Pty) Ltd Corner Paul Smit & 13th Avenue, Anderbolt, Boksburg North I PO Box 26807, East Rand 1461, South Africa I Tel +27 11 899 4600 I Fax +27 11 918 2707 I Email projects@groupfive.co.za
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Years as a listed entity CERTIFIED BY THE CRF INSTITUTE
Precious metals: Gold
SANDVIK’S GOLD-STAR STATUS
Underground advance record set in Mali A team from underground mining contract service company, African Underground Mining Services, recently set a new record at Randgold Resources’ Gara gold mine Decline Project in Mali by advancing 603 m in one month using Sandvik’s DD42060 jumbo mining rig.
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he choice of Sandvik underground drilling rigs was based on experience gained in the use and performance of this equipment in the Australian mining industry by Barminco. African Underground Mining Services (AUMS) is a joint venture set up by Barminco and Ausdrill of Australia to undertake development and production mining work in Mali. The Sandvik DD420 jumbo is used for bolting, meshing and drilling faces that are 5 m x 5
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m in development mining at Gara. The Sandvik DL430-7C production drilling machine and two recently delivered Sandvik DL42015C machines are being used by AUMS for long-hole drilling in production mining. Kevin Flynn, AUMS operations manager in Mali for the Gara mine and the nearby Yalea North Decline Project where Sandvik underground drilling machines are also used, says the achievement of the record was a team effort.
“We were building towards the record in preceding months.The graph was on an upwards trend and we were improving our performance. In that particular month we commissioned a new Sandvik jumbo, and our highly skilled operators, supported by strong maintenance and electrical departments, all worked towards achieving the same objective.” AUMS was appointed by Randgold Resources in 2010 on a development mining contract for the two mines. Its contract was
Precious metals: Gold 2
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subsequently expanded in November 2011 to include underground production mining at both Gara and Yalea. Randgold also extended the contracts by a further three to five years for both development and production mining. “Our jumbos work 24/7, apart from a weekly 12-hour servicing routine in our above-ground workshop,” Flynn points out. “Having experienced operators is a significant advantage because they are able to identify operating issues before they develop into problems. Maintenance is carried out immediately with minimum impact on production efficiency.” Flynn says the first task to be undertaken by AUMS at Gara after arriving on site about 18 months ago was the cutting of the portal. This was followed by the development of the underground workings – work which is ongoing as AUMS opens additional levels. “The Sandvik jumbo is a good all-round machine. We started out with a single jumbo drilling machine and have grown our fleet to five jumbos and three long-hole drilling machines,” Flynn says. Another production drilling machine, the Sandvik DL420-15C long hole model with a 54 m hole length and hole size up to 127 mm, arrived on site at Gara at the end of November
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2011, after being transported from Dakar in Senegal. The machine will join the on-site production fleet. Caterpillar AD55 t dump trucks are currently carrying rock out of the mine to an ore pad from where the material is taken by road to Randgold’s crushing and screening plant prior to entering the processing works. Only limited infrastructure was in place at Gara when AUMS arrived on site in 2010, and accommodation for personnel was sparse. “We had very little equipment, but we had to commence operations. As work progressed, more equipment came on site,” Flynn says. Flynn, who has wide experience in Africa at various mines, mentions that the task of mobilising in Mali is not as rapid as in some other African countries, because Mali is landlocked and the processing of import documentation is slow. “All specialist mining equipment has to be imported from overseas. It arrives by sea in Senegal or Ghana and then has to be transported overland on roads that are largely in very poor condition. New equipment and spare parts not held locally or in Ghana can take up to four months to arrive on site from the date of placing the order.” Flynn points out that the logistics challenge coupled with the expansion of AUMS’s scope
1. A Sandvik DD420 jumbo drill undergoing its 12-hour weekly service, where hydraulic hoses, fluids and oils are replaced. The rigs undergo visual inspections at the beginning of each 12hour shift prior to the incoming operator commencing work. 2. A ‘live board’ methodology is used by AUMS at the Gara and Yalea gold mines to coordinate the activities of the production teams, including the drill operators, involved in mining operations. 3. AUMS has set up a facility on site at Gara mine to undertake the sharpening of drill bits for Sandvik drilling machines. 4. A new refuge chamber has been imported from Australia for installation in the Yalea mine where underground mining recently commenced. A similar chamber has already been installed underground. 5. A stores holding of several million United States dollars, including the stubby bolts and split sets seen here, is likely to increase by about 50% in 2012. This follows the extension and expansion of the AUMS contracts to include both development and production mining by three to five years for the Gara and Yalea mines. 6. A 500 kW fan being installed at the pit vent access point at Gara mine to draw air into the underground workings and development as production mining continues.
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Precious metals: Gold 7
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of work places even more significance on achieving a balance between forecasting and the spares and consumables stockholding. At present, spares and consumables valued at several million United States dollars are held in the AUMS stores on site at Gara, and this is likely to rise by an estimated 50% in 2012 in order to keep pace with increased
Construction’s Mali country manager, Nana Mensah Aidutwim, says the company is anticipating double digit growth in turnover in 2011 on the $13.3 million achieved in 2010. Sandvik opened an office in Bamako, Mali in August 2007 to support greenfields exploration, drilling, mining systems, crushing and screening, materials transportation and bulk
We established a warehouse in Bamako in 2011 to hold spares for our client base in order to reduce logistical delays production. Orders placed for explosives can take about three months to fill. Development at Gara mine includes the installation of conveyor and vehicle access declines. These are parallel declines running about 15 m apart. The gradient of the declines is an estimated 1:6, with some parts 1:7. Conveyors are also being installed at Yalea mine. At present, life of the Gara mine is estimated at between 10 and 15 years, but Boart Longyear is continuing with diamond drilling to locate further deposits and to establish the extent of the ore reserve. The success of Glenn Heard, AUMS GM in Ghana, in negotiating contracts with Randgold has had a positive impact on the growth of Sandvik in Mali. Sandvik Mining and
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materials applications. In 2008, turnover of $3.5 million was achieved with the figure growing to $6.5 million the following year. “We moved into the supply of underground drilling machines in 2010 when AUMS began working on the Gara and Yalea projects. Up to that point the bulk of our business had been the supply of rock crushing equipment,” Aidutwim says. “We established a warehouse in Bamako in 2011 to hold spares for our client base in order to reduce logistical delays. A support engineer for Sandvik rock crushing equipment will join us in early 2012.” Sandvik Mali has supplied nine underground drilling machines and an equal number of surface drilling machines.
7. A 55 t Caterpillar AD55B dump truck transporting ore up the incline from underground workings at the Gara mine. The civils work for the installation of a conveyor system is underway in the foreground. 8. A Sandvik jumbo rig with enclosed cab at work at the rock face in Gara mine. Drilling teams used a jumbo rig similar to this machine to set a new record of a 603 m advance in one month as part of the Gara mine development. 9. An operator controlling a Sandvik jumbo drilling rig in Randgold’s Yalea mine. AUMS has been awarded an extended contract to undertake development and production mining at Yalea. Production mining was previously performed by another contractor. 10. A new Sandvik DL420-15C production drill arrives at Gara mine after a sea and cross-country journey. The rig was offloaded in Dakar, Senegal, and transported by road to landlocked Mali – a journey that takes up to 12 days during the dry season. Pictured next to the machine from left are Kevin Flynn, AUMS operations manager in Mali for the Gara mine, and Scott Campbell, underground mining product support supervisor for Sandvik in Mali. 11. Water for the Gara and Yalea mines, including the gold processing plant located at the Gara mine, is drawn from the Falemé River that runs less than 1 km from Gara mine. Water ingress is being addressed with the installation of a pumping system at Gara mine.
TBWA\HUNT\LASCARIS 118107
Au 99.99
19 2 0
2 011
Perfection takes time... 91 years and still refining. At Rand Refinery we don’t believe that perfection is a destination. Or that perfection is a pinnacle that one reaches. To us, perfection takes refinement. It’s something one constantly strives for. It’s this belief that has made us the world’s largest single site gold refining and smelting complex and largest manufacturer of 400 oz London Good Delivery Bars since 1921. Which is why we are considered the hub for African mined gold and the perfect launchpad to a diverse international market. And when you service such a global market, the only thing more important than the gold you refine is your name. Which is why over our 90-year history we’ve worked hard to build and maintain a sterling reputation for unquestionable honesty and integrity. Testament to this is how we define ‘refinement’. To us, it’s more than just a process. It speaks to how we choose to value our partnerships, staff, environment and colleagues. This is evident in our relentless pursuit of employing bestof-breed expertise and technology value chain in Recovery, Refinement, Investment, Luxury and Industrial Products. And even though we’re evolving our emblem, our DNA remains the same. So our partners
and customers can expect to benefit from the same quality, expertise and heritage they’ve come to expect and enjoy from Rand Refinery over the years. It’s just another step in our constant pursuit and strive for perfection. INTERESTING FACTS ABOUT RAND REFINERY t 4JODF 3BOE 3Fm OFSZ IBT SFm OFE more than 50,000 tons of gold – nearly one third of all the gold ever mined in the world. t 3BOE 3Fm OFSZ IBT BO BMMJBODF XJUI UIF SA Mint and has manufactured, marketed and sold well over 60 million ounces of the Krugerrand range of coins. A minted product track record that it is now extending into minted bars.
Rand Refinery has developed an ingredient brand – RandPure. To ensure it’s quality and integrity, the gold used is produced from newly mined gold doré and not from secondary gold. Furthermore, at every stage of the refining process, our production line is kept completely segregated from other doré, recycle streams and secondary gold that don’t have the appropriate warranties. This is important because gold that is produced from doré with warranties, verifies our conformance to prevailing conflict zone regulations. It also confirms our adherence to guidance from the World Gold Council (WGC) and the London Bullion Market Association (LBMA) which, in turn, allows us to adhere to due diligence guidelines by the Organisation for Economic Co-operation and Development (OECD).
t 3BOE 3Fm OFSZ JT UIF POMZ -POEPO #VMMJPO Market Association (LBMA) accredited precious metals refiner and fabricator in Africa. t 3BOE 3Fm OFSZ IBT CFFO BQQPJOUFE as one of only five international LBMA Referees, meaning it has the authority to adjudicate on metal content disputes between other refineries and their customers, anywhere in the world.
STRIVING FOR PERFECTION
Consulting & project management
BADGER MINING & CONSULTING
Consultants with management flare Consulting and technical and management support company, Badger Mining & Consulting (BM&C), has developed a reputation for assisting junior coal companies in developing their projects to operational status. And it is growing its African portfolio off the back of this particular skills set, director John Simms, tells Laura Cornish.
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stablished nearly 20 years ago, BM&C offers a wide range of traditional consulting services, but its extensive technical and operational management support skills for start-up and newly established small companies lacking resources and skills have seen its business grow significantly over the years.
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“We implemented our first management contract at the Forzando colliery, when it was initially owned by Anglovaal. This was the first full mine outsourced contract in South Africa,” Simms explains. The success of this project saw the company acquire Coal of Africa (CoAL) as its next major contract, and to date the company remains one of its biggest clients.
“We have played a significant managerial and technical role in seeing thermal and coking coal company, CoAL, develop from its junior status, before it had even one operational mine, to a mid-tier player. We have been involved in its Mooiplats
BELOW Processing at Vele colliery
Consulting & project management
ABOVE Mooiplaats process plant
(operational), Vele (in development) and Makhado (advanced feasibility stage) projects,” Simms continues. As CoAL has developed to the point where it is able to employ a strong management team, BM&C will shortly retire from its position within the company, but will record it as one of the longest and largest client success stories in its portfolio.
Although CoAL has announced the sale of its Secunda-based Holfontein asset to newly established BEE coal company, Ghovani Resources, BM&C’s involvement with the project will continue. To date, BM&C has assisted Ghovani Resources with the exploration programme and completed a feasibility study on the Holfontein project,
exploration programme for its Imaloto project in Madagascar. “We have also signed the contract to undertake the scoping study for the project, which is currently on ‘start-up’,” Simms notes.
Although CoAL has announced the sale of Holfontein to Ghovani Resources, BM&C’s involvement with the project will continue which, according to Simms, is substantial. It will be a 5 Seam-mined operation, both open-cast and underground. The plan at this point is to start with a 190 000 tpm (run-of-mine, or ROM) operation, delivering about 100 000 tpm of coal from a plant whose design and construction has already been incorporated into the overall project’s immediate development requirements.
MADAGASCAR Pan African Mining Madagascar (PAMM) – Sakoa coal project Last year, BM&C completed a feasibility study for the Sakoa coal project in Madagascar. It belongs to PAMM, a subsidiary of Thailand’s largest construction company, Ital-Thai Development Pubic Company. It is an enormous thermal coal resource, from which only three blocks have been evaluated, says Simms.
Lemur Resources – Imaloto coal project BM&C is currently assisting junior coal company Lemur Resources with an
Lemur Resources acquired the project in May 2011, and subsequently
Consulting services • • • • • • • • • • •
technical feasibility studies project management mining-rights applications project/mine financial evaluations project presentation and documentation exploration programme management reserve modelling and evaluations due-diligence appraisals competent-persons reports mine planning and scheduling working with business advisory companies, merchant banks, Johannesburg Stock Exchange brokers and legal advisors to facilitate corporate activities – mergers, acquisitions and stock-exchange listings.
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Consulting & project management LEFT Mining activity is underway at Vele
coal mining has previously been carried out. The first two phases of the exploration programme were undertaken in 2008 and 2009, resulting in a gross in situ JORC-compliant inferred resource estimate of 176.6 Mt. “Madagascar is emerging as a major mining country, with loads of prospects and opportunities. We have established a significant presence in the country and have every intention of growing it further as the country’s mining prospects continue to transpire.”
NIGERIA Ashaka Cement and La Farge WAPCO
Madagascar is emerging as a major mining country, with loads of prospects and opportunities
raised A$25 million (about R202 million) via an APO on the Australian Securities Exchange in August 2011. The Imaloto project is located in the Imaloto Coal Basin, which is the northernmost coal field in the greater Sakoa Basin of southwest Madagascar, located approximately 30 km north-west of the Sakoa Basin, where
The School of Mining Engineering University of the Witwatersrand
BM&C is further evaluating a five-year-old coal operation in Nigeria for La Farge’s Nigeria-based subsidiary, Ashaka Cement. The coal is used to fire its cement plant, which it is currently expanding. It is also reviewing a new coal project for La Farge Cement WAPCO. Due to the latest civil unrest in the country, these two projects have been delayed.
CONFERENCE INVITATION ONE DAY CONFERENCE
WITS MINING INDUSTRY FORUM - WITS MINING CLUB PROF. FRED CAWOOD Head, School of Mining Engineering cordially invites you to attend the one day Conference.
ADVANCED MINE OPTIMIZATION TOOLS by simulation of excavation and haulage and site implementation of machine and fleet guidance DATE Thursday, 24 May 2012 COST R3750.00 (ex VAT) per delegate VENUE Wits Professional Development Hub, Gatehouse 6, 92 Empire Road, Johannesburg WHO SHOULD ATTEND Mining Company managers, Mine and equipment managers, Mining Engineers, Company strategic and asset optimization managers, Mining consultants, Equipment and technology suppliers and other seniorities from the Mining and Civil Engineering industries.
MAIN TOPICS TO BE PRESENTED AND DISCUSSED • Optimizing mining operation by machine and material tracking • Optimizing rock drill rigs and dragline operations • The methodology of mine design optimization in conjunction with modeling software • Software planning tools- long term to short term planning • Scenario (iterative) financial modeling • Technology optimization for underground mining operations • Remote control operations and monitoring for optimized mine management
Hear from the best! PROF. ZVI BOROWITSH will again lead a panel of international experts and academics. Presenters will be from leading consulting companies, technology and equipment producers and leading industry managers. Professor Cawood says “In pursuit of the School of Mining Engineering’s goal to build strong partnerships, Professor Zvi Borowitsh has found a unique way to intertwine the mining engineering community with the academic activities of the School. This 4th event will build on the accomplishments of the ‘OTR Tyres for Mining’(2010), ‘Advanced Management Tools in Mining’ and ‘Mine Equipment Maintenance Management’ conferences” (2011).
To register please contact: Melissa Moodley | 011 717 4598 | Melissa.moodley@wits.ac.za
www.witsenterprise.co.za
BADGER MINING & CONSULTING
The experts in the exploration, mining and processing industry • Technical feasibility studies • Project management • Mining Right Applications • Project/Mine financial evaluations • Project presentation and documentation • Exploration program management • Reserve modelling and evaluations • Due Diligence appraisals • Competent Persons Reports • Mine planning and scheduling • Mining Technical Services
Tel: +27 11 608 0527 Fax: +27 11 608 3044 E-mail: secretary@badgermining.co.za Physical Address: Unit F10 , Pinelands Office Park, Modderfontein , South Africa Postal Address: P O Box 569, Modderfontein, 1645 www.badgermining.co.za
Profile: Consulting & project management
ADP PROJECTS
Delivering engineering expertise Based in Cape Town, ADP Projects is an engineering design company specialising in providing engineering, procurement, construction, management (EPCM) and modular plant services to national and international marine and land-based diamond, mineral sands, coal and gold mining industries.
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DP started its operations in 1997 and boasts an impressive list of successful mining industry projects in Canada, Brazil, India and Australia. Today, ADP is a leading supplier of modular processing plants to the diamond mining industry, having supplied diamond plants and diamond mining equipment to De Beers, Debswana, Trans Hex, Gem Diamonds and Petra Diamonds, to name a few. ADP’s main focus, however, is on the African continent. It has built and supplied modular mining plants to most major diamond mines in South Africa, Namibia, Angola, Zimbabwe, Tanzania, the Democratic Republic of Congo and Sierra Leone.
ADP geared up for Lesotho Letšeng mine expansion ADP was appointed to execute a feasibility study for the Gem Diamonds’ Letšeng mine
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expansion (Project Kholo) in October 2010. The study was completed in October 2011, which culminated in the Letšeng and Gem Diamonds boards voting to proceed with project implementation, starting with the detailed design to double up processing capacity to 10 Mtpa. The feasibility study identified the need for optimal comminution technologies to reduce diamond breakage while unlocking the available value stream (Letšeng is the world’s largest producer of large high-quality diamonds). The use of cone crushers in secondary duty will reduce material size to that suitable for further processing and re-crush while running with operating gaps well above the top diamond size. The application of high-pressure grinding rolls in the re-crush duty will preserve larger locked diamonds while also increasing diamond liberation in the valuable coarse/
middles fraction and significantly reducing DMS capacity. Another innovation is the planned use of bulk X-ray sorting instead of the traditional coarse DMS technology. Trade-off studies are currently being conducted between two bulk sorting technologies: pulsed X-ray luminescence and X-ray transmissive. In addition, due to future encroachment of the pit affecting the existing infrastructure, the project scope also incorporates relocation of existing infrastructure as well as providing new plant office facilities, new plant workshops, a new mining complex and a heavy earthmoving workshop to cater for a larger earthmoving fleet. ADP will also be managing the expansion of the mines bulk-power requirements for the project, in association with Plantech . The project brief includes identifying and executing certain early-works and early
Profile: Consulting & project management
Projects and studies ADP Projects has a core group of qualified technical staff who are supported by financial and administrative personnel, as well as technical associates where required. Technical skills available include: • senior project managers with relevant minerals experience • multi-disciplinary engineering • AutoCAD draughting and 3D design • construction management • commissioning.
procurement of long-leads in order to mitigate the risk of time delays by virtue of adverse winter working conditions. ADP Projects was established as a separate EPCM company several years ago. The dedicated focus of EPCM services requires skills and resources suited to EPCM project work as distinct from Lump Sum or small project execution typically undertaken by its sister company, ADP Marine and Modular. Critical to the success of the Letšeng mine expansion is a strong management team with appropriate experience. ADP has recently upgraded the drawing office design system to utilise the latest suite of Auto Cad 3D Inventor software. This will greatly reduce engineering risk and design time, and allow accurate material take offs to be generated in real time for estimating and forecasting purposes. Project Kholo will be executed as an EPCM contract and, as such, ADP will act as the client’s engineering and procurement agent, offering experience and knowledge of procurement and contracting, financial management and systems, and the required reporting and controls. A specific procurement manager and controls manager will be working with the project team in Cape Town to ensure all major projects metrics such as time, cost and quality are properly catered for. ADP will also supply construction and management services to Project Kholo. Appointing suitably experienced and capable major contractors is key to the success of Project Kholo given the harsh, remote environment. Pre-qualification of suitable
contractors with a proven track record in Lesotho will commence shortly.
Modular tailings treatment plant (MTTP) After working closely with Debswana and De Beers over the past five years developing the MTTP concept, this project recently received the green light for entering the detailed design phase and implementation at the Jwaneng diamond mine in Botswana, scheduled for construction during 2013. This technology is centred around a largescale rapidly deployable, modular and movable diamond processing plant. At Jwaneng, the MTTP will reprocess the previously discarded tailings in order to recover diamonds that were historically not liberated from the initial processing. Jwaneng is one of the richest mines in the world and as it has a sizable tailings deposit, was selected as the pilot site for this new concept. After much time spent on evaluating possible designs, ADP and Debswana completed the feasibility study in late 2011 and began the detailed design and implementation phase of the project in January 2012. The project is being done in partnership with Debswana, where ADP is responsible for the engineering and procurement of equipment, while Debswana will undertake construction management of the project. A number of the key components and modular units to be used in the MTTP plant will be sourced from ADP Marine and Modular, a company containing ADP’s proprietary technology developed over many
ABOVE MTTP layout TOP Letšeng mine and plant
years supplying modular plants to the diamond industry. Of particular significance is that this project will act as a pilot for many future projects within the De Beers group where similar plants can rapidly be deployed to new and remote locations. An example would be to process a tailings resource and then relocate to the next site, shorting the project schedule as well as its costs and risk profile, given that the modular concept offers significant flexibility and expansion opportunity. The small footprint and limited infrastructure requirements of the plant are a further benefit of the macro-modular approach. ADP Marine and Modular t/a ADP Projects (Pty) Ltd PO Box 514, Paarden Island, 7420, South Africa 1st Floor, West Block, Business Connexion, Century Boulevard, Century City Tel: +27 (0)21 521 9400 Fax: +27 (0)21 521 9401 E-mail: adp@adpprojects.com www.adpprojects.com
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Consulting & project management
CATCHING CARATS
Consulmet brings shine to Botswana Process engineering and project house, Consulmet, is proving once again that its reputation in the diamond industry precedes it, thanks to one of its most recent contract awards – the construction of a new diamond process plant for Gem Diamonds’ developing Ghaghoo kimberlite project in Botswana, director, Justin Macnab, tells Laura Cornish.
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haghoo, formerly known as Gope, has travelled a long journey since it was first acquired by Letŝeng kimberlite owner Gem Diamonds in 2007. It was originally owned by diamond major De Beers, and was sold to Gem Diamonds for $US30 million (about R228.70 million). In 2008, Gem’s development plans for Ghaghoo were large-scale – a 6 mtpa open pit was planned, with a recovery estimate
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of 24 carats per hundred tonnes. And the design of a large-volume recovery plant was completed on the back of this mine development strategy, explains Macnab. At the time, Consulmet, whose relationship with Gem Diamonds is longstanding, was to supply a recovery plant to the overall process plant. “We have provided consulting services to Letŝeng and an optimisation flowsheet design for its Australia-based Ellendale operation,” notes Macnab.
Consulmet has seen substantial growth over the last year, which Macnab attributes largely to repeat business on the back of successful projects. Although the Ghaghoo project was temporarily mothballed as a result of the global recession, it has been revived, and its development towards production is advancing rapidly. “Our approach to Ghaghoo’s development is more conservative this time. The
Consulting & project management
intention is to develop the project in phases, and fund the project’s growth from the cash it generates once in production,” explains Gem Diamonds CEO, Clifford Elphick. “Once we start to mine the accessible orebody, we will use the cash returns to develop it further, which could either include mining at the rate at which we start, expanding the underground operation slightly, or possibly, if the grades and returns are better than expected, revisiting the idea of developing a massive open pit,” Elphick continues. “And we are confident that the grades are going to be better than the original bulk samples.” An $US85 million Phase 1 plan includes the construction of a box cut – already complete – and the development of a decline down 400 m to gain the quickest and easiest access to the orebody. The decline development was started in early December. This time around, Consulmet was awarded the full turnkey contract to supply a 100 tph run-of-mine (ROM) plant. “Having completed a revised pre-feasibility study in 2010, focusing on a smaller plant – by comparison with the original – we determined a 100 tpm plant to be the most viable, and make the most economic sense,” says Macnab. The design of the new plant is based on a “simple flowsheet” and comprises a jaw crusher, autogenous (AG) mill, sizing and screening circuit, a DMS plant and an X-Ray recovery plant. Consulmet is also providing a de-grit and water-recovery system, through which all material must be passed before being disposed onto the tailings facility. Water is not a surplus commodity in Botswana, and this will ensure that maximum quantities of water can be recycled and re-used, and the slimes dam kept as small as possible. “Although the recovery plant for Ghaghoo is new, it was originally supplied by us to Ellendale but was never used,” Macnab explains. “I travelled to Australia to evaluate the status of the recovery plant. The 2 tph X- Ray suits the Ghaghoo DMS perfectly. It will shortly be returned to South Africa, where the recovery plant will be entirely
re-erected and slight modifications made, as the requirements between the two mines differ slightly.” The Ghaghoo plant will be modular, so that it can accommodate future expansions. The plant will be entirely generator-driven, since its power consumption will be small – about 1.5 MW in total. The kimberlite ore body is 11 ha in size, meaning the long-term potential of the project is significant. Should this be the case, Consulmet remains on track to have the plant on site, commissioned and operational by the end of 2012. “The civils portion of the plant will start in May 2012, with the actual erection commencing in July. The plan is to have the plant operational by December, and take the project officially into production in July 2013,” says Ghaghoo project director, Ian McAdam. According to Macnab, the only challenge in seeing Ghaghoo materialise is logistics. “We had to rethink and design the plants’ components to be able to fit on modified 6x6 trucks with limited carrying space and capacity. “Ghaghoo is located in a very remote part of Botswana, and the only
access road to the site is arduous and takes hours of travelling over rough terrain. “Portions of the distance are not road at all. This makes transporting equipment to site difficult and lengthy, but this is a small difficulty compared with the conditions when working in other African regions – which Consulmet is familiar with. “During its erection phase, we will allocate about 50 expatriates (South Africans) to site, but will also include a large local labour contingency,” Macnab states. Consulmet was awarded Exporter of the Year in the Medium Manufacturing category by the Johannesburg Chamber of Commerce and Industry (JCCI) in November 2011.
Although the recovery plant for Ghaghoo is new, it was originally supplied by us to Ellendale, but was never used
LEFT DMS plant which Consulmet recently supplied to Australia, similar in appearance and functionality to the Ghaghoo plant currently in construction
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Finance
MINING’S FINANCIAL GURU
Handpicking the ‘cream of the crop’ Basil Read Group business unit, TWP Investments (TWPI), is on track to achieve a milestone year, with all three of its ventures expected to make significant progress – the completion of a bankable feasibility study, the commencement of another shortly, and an initial public listing announcement, CEO Dean Cunningham, tells Laura Cornish.
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Finance
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WPI’s mandate to source quality projects with promising production profiles, invest in them, and help create a pipeline of work for Basil Read and its wholly owned subsidiary, TWP Holdings, is well on its way to returning shareholder value. The company owns stakes in a nickel project in Tanzania, a manganese project in the Northern Cape and a gold project in Mozambique, and remains “on the lookout” for additional prospects. “We have conservatively and cautiously evaluated more than 1 000 mining projects over the last four years, and settled on projects
we believe have significant potential in the long run,” says CEO, Dean Cunningham. Although TWPI’s core focus since its inception has been to source, evaluate and invest in mining and minerals processing projects for TWP, its project spectrum since the Basil Read acquisition in 2010 includes any project suitable to the group, including infrastructure, energy and renewable-energy prospects. For now, the company is actively ensuring its three mining projects progress up the value chain. TWPI has access to a vast array of skills through its parent companies, which it can
provide directly to the projects in which it is involved. “This is essential, as quality skills sets are imminently going to be in short supply again. It also elevates the projects’ success-rate potential,” Cunningham says.
Lehating Mining TWPI owns a 13.3% stake in Lehating, a high-grade manganese deposit located in the northern portion of the Kalahari manganese fields in the Northern Cape. It is mineralised with manganese and iron, and is synonymous with the characteristics of the high-grade Wessels-type manganese ore mined at Assmang’s N’chwaning and BHP Samancor Wessels mines, but is not a contiguous extension of those deposits. “The bankable feasibility study (BFS) for the project is due to be completed in April this year, after which we will move into a capital-raising phase to obtain enough cash to develop a mine and process plants,” explains Cunningham. At this point, the Lehating mine design calls for an underground mine of 500 000 tpa nameplate footprint capacity, using a fully mechanised bord-and-pillar mining methodology. The ore seam typically averages between 270 m and 300 m depths, with 6 – 6.5 m seam width, and dips 4° - 6° east to west. Although Lehating is focused only on mining the “‘lower body” ore seam, it has intersected the “middle body” ore seam in certain of the exploration boreholes drilled. Nameplate mine capacity has been strategically selected to fit both capital intensity, life of mine over a 20-year period, and the ability to export the ore with constrained South African logistics. Lehating aims to be a low-cost, small-to-mid-tier niche producer. The company has already been qualified as a long-term allocation process (LTAP) customer with Transnet Freight Rail for future ore export.
Pan African Resources In August 2011, mid-tier gold and PGM mining company, Pan African Resources, announced its intention to spin out its Mozambique-based exploration Manica gold project into a separate entity. Cunningham has been appointed CEOelect of the entity, and will spearhead the project’s development once it has been LEFT Onsite drilling at Dutwa project in Tanzania
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POSSIBILITY IS EVERYTHING ESTABLISHED IN 1997, IN NELSPRUIT, MPUMALANGA TODAY COMPLETING PROJECTS THROUGHOUT SUB-SAHARAN AFRICA WE SPECIALIZE IN THE FABRICATION AND ERECTION OF STEEL. WE DON’T JUST CONSTRUCT STRUCTURAL STEEL, WE WORK WITH OUR CLIENTS TO HELP MAKE THEIR VISIONARY PROJECTS A REALITY. THIS IS OUR PURPOSE; TO EXPERIENCE THE SHEER JOY AND PRIDE THAT DEVELOP FROM MAKING OUR CLIENTS DREAMS COME TRUE WHEN BUILDING AND COMPLETING THEIR PROJECTS SUCCESSFULLY. TOGETHER WE DARE TO
CHALLENGE THE IMPOSSIBLE, BELIEVING THAT SUCCESS IS THE OBJECTIVE. WELCOME TO STEVAL ENGINEERING WHERE POSSIBILITY IS EVERYTHING
FABRICATORS AND ERECTORS
STRUCTURAL
MECHANICAL
PLATEWORK
PIPING
www.steval.co.za info@steval.co.za / Tel: +27(0)13 758 1015 / Fax: +27(0)13 758 1050
listed on one of the main international stock exchanges. “TWPI, which first became involved with the project around May 2011, will get an earn-in on the company once it has listed,” Cunningham notes. The listing is expected to take place in the first or second quarter of this year. Although Manica has been part of Pan African’s portfolio for some time, a newly appointed team will actively Onsite at Dutwa ensure that the project is advanced to productive status. Manica has 2.96 Moz of gold resource at 1.82 g/t, and 1.38 Moz of this is already in the measured and indicated categories, at 1.75 g/t. “This is a typical Greenstone-belt deposit, which is part of the Zimbabwe craton, extending into Mozambique from Zimbabwe. It is the key project in the Manica area, and we hold a 25-year concession on the property,” Cunningham outlines. The project is due to move into a BFS on one of its advanced targets soon, and Cunningham adds that they are still looking for and evaluating additional resources within their own ground, and also property opportunities in the surrounding areas.
Everything Absolutely Under Control.
African Eagle African Eagle’s Tanzania-based Dutwa nickel project is one of the first projects in which TWPI took an interest. Although its original investment in the project three-and-a-half years ago was 5%, this has been slightly diluted over time to 3%. The project consists of two deposits, with a combined resource of 98.6 Mt, grading 0.93% nickel and 0.02% cobalt. 46.2 Mt of resource are in the JORC indicated category, and the remainder in the JORC inferred category, with an additional estimated 8 Mt – 10 Mt upside. “The scoping and pre-feasibility studies for Dutwa have been completed, and the company is on track to complete its BFS by Nojected to be a 3 Mtpa project over vember this year. Dutwa is projected 26 years.
From beginning to end, any project needs critical attention to detail. Our sound governance, monitoring, control
Copper/cobalt interest
and organisation will ensure your project is successfully
“The next project which we expect pect to add alt project in to our portfolio is a copper/cobalt ongo (DRC),” the Democratic Republic of Congo says Cunningham. TWPI is currently reviewing and assessing potening a few projects with promising ctive tial. Zimbabwe is also an attractive mining country, and TWPI hass its eyes open for a sound projectt which makes financial sense.
executed.
“We have conservatively and cautiously evaluated more than 1 000 mining projects over the last four years, and settled on projects we believe have significant potential in the long run,” Dean Cunningham, CEO
Call us, or visit www.twp.co.za TWP South Africa T 0861 TWP TWP (SA) / +27 11 218 3000 E twpinfo@twp.co.za
Finance: Risk management
DELOITTE MINING ADVISORY SERVICES
Competent due-diligence reporting a necessity There are three major areas of risk in the mining sector: operational, technical and environmental/social. If not managed and continuously assessed properly, the result to the business can be detrimental, Ebrahim Takolia, mining advisory leader for Deloitte’s Mining Advisory Services (MAS) business unit, tells Laura Cornish.
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ining companies need to have a constant strong grasp on all the technical risk impacts facing their business,
says Takolia. “In most cases, risk assessments (based often and largely on due-diligence studies) are critical in an industry which evolves principally on the back of mergers and acquisitions, which is largely how Deloitte MAS has developed and become an extremely specialised service,” Takolia points out. Generally, he says the sector is slowly but steadily improving its fatality rates, which means that it is managing the health and safety-associated risks of its personnel. “Companies have become compliant in terms of technical resource and reserve statements (aligned with SAMREC and JORC), and management have become proactive in managing the environmental and social elements of their operations – including financial mine closure and rehabilitation, as well as community and stakeholder engagement.” Despite the industry’s progression, it still has a long way to go, particularly in certain areas such as safety, where government
is still targeting zero fatality rates. Technically, Takolia believes there will ultimately be a convergence between technical review documents (reserve and resource statements) and financial reporting. “This will enable better financial forecasts and forward planning when the operational risks are reflected in relation to the direct impact they have on a company financially.” The pending carbon tax is going to place additional pressure on mines to further enhance their environmentfriendly commitments.
The role of Deloitte MAS Deloitte MAS has a highly specialised team of experts who are able to assess an operation across the entire value chain. It will work with the relevant stakeholders at the company or project under review to assess the level and standard of information available, followed by the generation of a timeline and budget for the due diligence or valuation. It also compiles competent person’s reports, typically when a mining client seeks to raise capital through equity, debt financing, or for M&A. For equity financing, Deloitte will assess
FIGURE 1 Feasible studies
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the requirements of the relevant exchange. In this case, the competent person’s report is a public document that requires approval by the exchange. For debt financing, Deloitte will work with the mandated party to produce a competent person’s report that is a non-public document. From an environmental and social aspect, Deloitte audits and compliance assessments include mine works programmes, mining licences, water-use licences, environmental management plans, annual environmental rehabilitation provisions, social labour plans, and engagement with local and national stakeholders, and the society at large. “Without this level of review and understanding of potential risk, the corporate activity in the industry would be stagnant. Confidence levels in taking over projects or even companies would be too low to risk financially,” Takolia notes. With a noticeable pick-up in investor appetite from Chinese, Indian and Asian private-equity and hedge funds for commodities in Africa, Takolia expects to see a constant increase in the need for due-diligence reporting. FIGURE 2 Mineral resource
There’s great value in the right beneficiation strategy Beneficiation is on your priority list and we understand that. By partnering with Deloitte, your company will be able to identify how it can benefit from beneficiation and ensure business sustainability. Our mining experts have mapped out the potential opportunities for your business, helping to take your products and your business further. www.deloitte.com/za
© 2012 Deloitte Global Services Limited
Finance: Risk management
MINERP
High reward without the risk Mining (across the entire value chain) is often quoted as a high-risk business. This sometimes translates to the expectation of high reward, meaning industry players are prepared to absorb/carry that risk – unnecessarily, writes Laura Cornish.
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nvestors are investing in the leverage offered by mining, as a result of price volatility. This means that there is an expectation and demand that all other risks are managed and mitigated to acceptable levels, leaving the investor free to reap the rewards offered by this price leverage. There are solutions offered by MineRP worth investing in that enable these risks to be managed in a controlled, secure environment. MineRP (formerly Gijima Mining Solutions International) is a division of information technology company, Gijima. It is internationally recognised for its mining software solutions, as well as its technical consulting expertise for the mining industry. Potential risk is an unwavering constant for global mining corporations and junior companies. What may change is the profile and source of risk. The mining industry is especially exposed to external risk because of its diverse geographical nature and is therefore influenced by external risks (financial, political, economic, etc.). Mining companies are also heavily exposed to internal risks, including technical (geological, metallurgical, productivity, etc.), operational and project risks (design, completion, over-run etc). “Risk tolerance levels need to be defined at a corporate level. Thereafter, risk needs to be managed across all business levels, from the lowest level through to the boardroom, across the whole mining value chain, and brought back to a corporate reporting level,” says Alastair Macfarlane, mineral asset management strategic consultant for MineRP. ”This will result in risks being identified at source and dealt with at the appropriate level without being diluted,” he continues. MineRP uses four critical focus areas for the formulation of its business: planning, execution, optimisation and risk management. These four tactical areas support the developing field of mineral asset management, which aims to maximise the value of
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the mineral asset, and reduce its risk, to levels that are appropriate within a mineral asset management approach. “Not capturing sufficient data to determine risk, in terms of the impact of something going wrong, as well as probability of such an event happening occurs when there is not a coherent single, properly understood format,” Macfarlane continues. “The three largest mining risks seem to occur due to insufficient front-end loading (lack of adequate data and
With the MineRP framework, the rewards associated with the mining industry can be enjoyed without the need to carry unnecessary risk
take those files, understand them and provide a way to seamlessly relate the data stored in one file to the data in another file in a way that enriches the understanding of both. The MineRP framework allows the transformation of proprietary datasets into standardised information and stores that information in a centralised spatial database. The same elements apply to risk management. Based on this founding principal, MineRP has developed large-scale, integrated risk management tools and processes which are shared between processes, so a single approach to managing all risk areas becomes controllable, according to MineRP marketing vice president, Empie Strydom. “Because no two mining operations are the same, and mining environments are so vast, each system designed by MineRP caters exclusively to that operation. Our risk applications are not ‘one-size-fits-all’ systems,” says MineRP mining executive, Mike Woodhall. MineRP’s first venture into risk management was in the 90s, and became successful in all SHERQ (safety, health, environment, risk and quality) fields. “We have now integrated those tools with a suite of production and operational tools to provide the market with an integrated risk management solution,” Strydom continues. MineRP’s integrated enterprise mining solutions allow accurate capturing of planning, operational and risk information, and provide functionality to plan risk management controls, set targets and objectives, and monitor the implementation of planned control measures. Basically, MineRP’s integrated solutions identify ways to treat risk threats, monitor and prevent them, and record post-event incidents to identify repeating issues and trends.
rd a w
information), changes to project management personnel during project feasibility and construction, and changes in plant/ mine design after capital has been committed. In operations, inadequate data and information again emerges as the most critical risk, followed by lack of skills and experience.” Mining houses invariably have multiple, different systems employed across their portfolio of mining methods, ore body types and geographies, each system creating libraries of files stored locally at that mine. Integrating these libraries to allow central functions of planning, auditing and reporting is often near impossible using traditional or fragmented systems, mainly because actual integration depends on the ability to
Re
Risk
Mine Planning with Mine2-4D, mineCAD and EPS Mine2-4D is still owned and developed by MineRP (previously Gijima Mining), and together with mineCAD and EPS form a complete, automated mine planning and scheduling system that delivers cost and performance improvements through efficient and solution driven features. Producing fully integrated long and short-term mine plans, Gantt schedules linked to 3D designs, 3D animations and complete reconciliation is fully supported through the integrated, interactive process â&#x20AC;&#x201C; and has never been this easy!
www.MineRPSolutions.com
Technology
ROBOTIC AUTOMATION AND INNOVATIVE INSTRUMENTATION
The future of underground safety and productivity South Africa is emerging as one of the leading countries in the world in the field of robotics for deep-level underground mining. The successful implementation of a robotic underground fleet will ensure that human safety and productivity is not compromised at extreme depths, CSIR mining manager, Dr Declan Vogt, tells Laura Cornish.
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he Council for Scientific and Industrial Research’s (CSIR) Centre for Mining Innovation is devoted to achieving its long-term goal: delivering technologies which will improve the safety of mine workers underground, while enhancing productivity. “The key to achieving this is robotics, which could prove extremely successful for gold operations on the Witwatersrand gold basin and underground platinum mines, where uneconomic and unviable deposits lie dormant,” Vogt explains. While companies across the globe have been delving into the development of automated robotics for years, Vogt believes the CSIR’s robotics technology (in terms of automation and instrumentation), for mining in particular, is
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quite advanced, although a vast deal more research and investment is required. The CSIR has made significant progression with test-scale autonomous machines – which can perform certain tasks underground, independently of people. Incorporated technologies include sensing, mapping and path-planning, since GPS signalling does not work underground. “We have introduced a beacon technology principle, using ultrasonic waves and radio pulses, which will enable a machine to calculate its position underground, and in relation to strategically positioned beacons,” Vogt explains.By ensuring that machines follow specific paths underground, negligent
people in close proximity to those machines are less compromised. As this technology develops further, and machines are programmed to perform mining tasks, such as loading and hauling, independently of human interaction, mining at extreme depths becomes viable.
Instrumentation - the weather-map concept The idea, he explains, is to introduce a variety of technology innovations which address different dilemmas, and develop a cohesive system (like a weather map) which integrates information about a specific area in terms of safety probability, through the incorporation of technologies which assist in increasing safety practice and awareness. Such a system would provide critical information (gathered from various technology sources) regarding the overall safety of mining in a particular area, for people and machines, Vogt notes. “We have already developed a number of technologies in this field,” he says. The CSIR has created a device attached to the miner’s helmet which monitors rock stresses when entering a new mining area. Traditionally, miners tap the rocks and determine rock stability with their own auditory senses. Such a system provides a “second opinion” on determining rock stability in new mining areas.
Technology “We are due to license this technology in the next couple of months, and have already secured a local manufacturer,” Vogt notes. However, because this procedure is lengthy and time-consuming, Vogt says a
after blasting. Although within a network, the units can work independently of one another. It is ideal for remote areas and small, more localised monitoring requirements. Introduced to the industry about eight
The CSIR has made significant progression with test-scale autonomous machines – which can perform certain tasks underground, independently of people technology that can quickly identify unstable areas underground would be ideal. “We are under way with early-stage work to determine the accuracy of infrared thermal cameras in identifying such areas,” he points out. Similarly, drill and blast monitoring is not tightly managed due to the lack of information about what is happening underground. The CSIR has designed an architecture for underground measurement and control networks called AziSA – a wireless sensor network which provides a stope risk profile before and
years ago, the CSIR’s GoafWarn has already proven itself useful in long-wall underground coal operations – specifically at New Denmark and Matla collieries. It is a device that provides early warning or highprobability prediction of rock instability, anywhere between half an hour and two hours prior to a roof collapse. Such a system enables people and machines – continuous miners particularly – to evacuate the site prior to a roof or wall collapse. The technology is also applicable to operations for extracting pillars.
“Our ambition for a comprehensive safety weather map would incorporate and integrate all of these technologies into a single system, enhancing safety to a maximum and promoting productivity as well,” Vogt says.
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Technology
DISSOLVE AIR FLOTATION
AMD’s cost-effective solution The principal technology behind dissolved air flotation (DAF) was first established in the 1930s and has been proven successful in purifying wastewater over the decades. Minerals processing company, MC Process , MD, Mark Craddock, believes it is the ‘ultimate’ solution to solving acid mine drainage (AMD), particularly within the coal sector. Laura Cornish reports.
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here are a variety of applications and technologies that can resolve the coal sector’s concerning AMD conundrum. Craddock believes that one of the older, most tried and tested, and success-proven technologies could resolve the issue – without the need for massive cash injections, which in the case of AMD, do not see cash returns on investment. DAF is a process whereby suspended waste matter and other contaminants are removed by injecting high-pressure air bubbles during the flotation process (within a DAF chamber). The air is dissolved into water, mixed with the wastestream and released from solution attached to the contaminants. Microscopic air bubbles (white water) form (attached to solids of microscopic size – including viruses, oils, greases, unwanted heavy metals, etc.), increase their buoyancy and float the solids to the water’s surface. The waste product is then removed with a scraper, and in most cases can be reused conveniently for different applications. Flocculants and coagulants often help to improve the performance of contaminant removal, and lamella plates can be installed to remove ultra-heavy solids. “DAF emulates nature perfectly. Breaking waves often dump froth floating on the top of the wave surface (contaminants) on the shore,” Craddock states. It is nature’s answer to removing unwanted waste material from the ocean. “DAF is also the perfect complement to the solvent extraction (SX) process, and has been proven extremely effective in arduous applications,” Craddock adds. MC Process has a number of DAF units installed across numerous applications – across Africa, but largely in the Congo where it is being used in conjunction with SX plants.
“We are now in the process of sending a 250 tph DAF system to one of eMalahleni’s major coal operations to test its ability to treat AMD. This will have a two-tiered effect, the first being solving the AMD problem, and the second being removing a gypsum-like by-product coating from all the equipment within the plant and impacting on its performance,” Craddock explains. Although DAF technology can resolve the AMD problem cost effectively, enabling the processed water to be re-circulated within a plant or re-introduced into a water stream, it does not clean the water to a potable state. However, Craddock says when used in conjunction with a reverse osmosis (RO) circuit, it still remains a more cost-efficient method of delivering potable drinkingstandard water than installing and operating a desalination plant. MC Process’s DAF and RO system can be used in areas consuming water from most sources, which is ideal for small to medium operations, and more so in remote locations and areas where water is scarce. The skid-mounted modular potable water treatment units use a semi-permeable
membrane and water is forced against a concentration gradient, resulting in the removal of undesirable impurities. RO features: • modular design – contained units offer easy installation, set-up, operation and maintenance • skid-mounted design for easy installation and rapid start-up and portability • packaged turnkey system built off site and delivered fully prefabricated • minimal space requirements; small footprint with space-saving rectangular profile • complete start-up assistance • expert technical support before and after installation • digital monitoring
RIGHT Reverse Osmosis system compliments the DAF BELOW Over flow on DAF dosing
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Technology
TELL-TAIL RECOVERIES
The tail of Two Rivers
Specialised process engineering company, Tailing Technology (Tail Tech), is adding a new project to its portfolio of ‘build, operate and maintain’ tailings scavenging plants, at Two Rivers platinum mine, MD Dave Baigent and project director John Drummond, tell Laura Cornish.
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ail Tech specialises in the design, construction, operation and maintenance of small-scale process plants, whose purpose is to re-treat PGM (platinum, palladium and gold) current arisings to recover additional ounces not recovered in an operation’s main process plant.
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The company currently operates two scavenging plants – a 600 000 tpm (run-of-mine (ROM)) plant (called Kilken) for Anglo American Platinum’s Amandelbult operation, and a 1.2 Mtpm operation for Impala Platinum in Rustenburg. “In May 2011, we were awarded the contract to build and operate a tailings
scavenging plant for the Two Rivers project,” says Drummond. The operational contract is for five years. Two Rivers is based on the Eastern Limb of the Bushveld Complex, and is co-owned by African Rainbow Minerals (ARM – 55%) and Impala Platinum (45%).
Technology
Current Two Rivers Plant
The plant will retreat 250 000 tpm of current arisings, which will be fed directly into the scavenging plant from the main plant. After the material is re-processed, it will then be transferred to the tailings dam
ABOVE New tailings scavenging plant under construction
The plant will retreat 250 000 tpm of current arisings, which will be fed directly into the scavenging plant from the main plant. After the material is re-processed, it will then be transferred to the tailings dam. “Our study test work indicates that we can recover an additional 2.5% PGM material,” Baigent notes. The operation delivered 145 300 oz of platinum in 2011. According to Impala Platinum, the operation is forecast to increase its annual concentrate
production to 150 000 oz by 2013. Site establishment and initial earthwork preparation commenced in August – the timeframe between contract award and moving onto site was the result of time required to redesign an initial pilot scale test plant to a full-scale plant, Drummond notes. To date, Tail Tech remains on target to complete and commission the plant in May this year, after which the plant will not undergo a ramp-up phase, and will be immediately ready for full feed, nameplate capacity. “The structural concrete is complete, and major long-lead items ordered – deliveries started reaching site at the end of January. The electrical and instrumentation (E&I) contract was awarded to Selepe Project Management and Consulting,” Drummond outlines. In conjunction with Metso Minerals South Africa, Tail Tech has developed a high-energy flotation cell, which is able to float ultra-fine material and course material simultaneously. “A lot of thought goes into the small footprint plant overall – in fact, when a single item requires maintenance or replacement,
the plant can continue operating regardless,” Baigent notes. “And because we don’t need to liberate the product through grinding and polishing, it is the most efficient recovery plant-type in operation in South Africa,” Drummond adds. All of Tail Tech’s plants incorporate this technology. Outside of South Africa, Tail Tech is also underway with a bankable feasibility study for Impala Platinum’s Zimbabwe subsidiary, Zimplats, to build a replica plant for its process plant, also with the intention of treating current arisings. In addition to the company’s continual proactive approach to taking on additional projects such as the Two Rivers project, it is also venturing into conventional tailings plant operations (recovering PGMs from chrome dumps and vice versa). “We are already in discussions with a major blue key client about taking on such a project this year,” Baigent notes. Tail Tech boasts that with the incorporation of its technology into such a plant, it can achieve as high as 60% recoveries.
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A gem of a deal The development of local businesses and enhancing employment opportunities for citizens are national priorities for the Botswana government and were, therefore, key drivers for Komatsu Botswana when they recently contracted companies to assist with the delivery, building and commissioning of 16 new 930E-4 electric drive trucks at Jwaneng Mine.
Komatsu has commissioned 16 new 930E-4 electric drive trucks at Debswana Diamond Mining Company’s flagship Jwaneng Mine in Botswana. This new fleet of vehicles was recently delivered to the world’s most profitable diamond mine for the P24 billion Cut 8 expansion project, with an opportunity for Komatsu to provide a further 25 930E trucks over the next four years. Jwaneng Mine, which contributes more than 60% of Debswana’s total revenue, is currently mining to a depth of 350 metres. However, it is expected that the mine will reach 654 metres by 2017. Thereafter, the Cut 8 Project will ensure continuous production for at least an additional seven years, until 2024.
The 930E was the first haul truck to employ an AC electric alternator, which is more efficient; offers better operating characteristics; and is more cost-effective than a comparable DC power train. The current 930E-4 model is powered by a 2,700 horsepower (2,000 kW) Komatsu SSDAl6V160 V-16 diesel engine. The machines were all installed with the state-of-the-art KOMTRAX Plus technology
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The 930E – a flagship product Although the 930E is neither Komatsu’s largest nor highest payload capacity haul truck, Komatsu still considers the 930E to be the flagship of their haul truck product line. With a payload capacity of 290 tonnes, the 930E is one of the best selling, ultraclass haul trucks in the world.
930E which provides real-time information enabling effective fleet management within a production environment. The process of delivery - with the machines arriving in batches of four - and assembly on site - took around six months with a team of specialists on hand to fit the components together at the mine, including three secondees from Komatsu America Corp where the trucks are manufactured. Local business development Throughout the process, Komatsu used Botswana-based branches of international companies or companies whollyowned by Botswana citizens.
For this reason it is important for Komatsu to have a branch on site providing specialist product support and quality aftermarket service which minimises machine downtime and enhances production efficiencies. “We are excited about the role Komatsu will play in the successful outcome of this multi-billion Pula project which will not only make a significant contribution to Debswana’s bottom-line but will ensure that our country continues to benefit from its rich diamond resources,” concludes Cowley.
Botswana-based UTI Botswana was contracted to transport the trucks from Peoria Illinois to the Jwaneng site while, under contract to UTI, a 100 per cent citizen-owned Botswana company, Van & Truck Hire, transported the component parts of the trucks from South Africa to Jwaneng. Another company wholly-owned by a Botswana citizen, MCB, was by far the largest contractor for Komatsu on the project. Under the direct supervision and control of the Komatsu team, MCB was responsible for the full assembly of all the new trucks. The Botswana branch of Johnson Crane Hire assisted throughout the assembly and Cummins Botswana commissioned all 16 engines with their Jwaneng and Gaborone-based technicians. Says Martin Cowley, Managing Director of Komatsu Botswana: “The services provided by these contractors were outstanding and they all had a role to play in the safe and successful commissioning of the machines.” Cowley also acknowledges the cooperation from Debswana and Fluor throughout the project. Safety a priority Debswana, an equal partnership between the Botswana government and De Beers, places a high value on safety at its operations. Komatsu was commended for an excellent safety record throughout the assembly period and for the willingness of its on-site team to engage with Debswana towards continuous improvement, a philosophy that echoes that of Komatsu’s “kaizen”.
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Komatsu has a long-standing relationship with Debswana and has a large and varied range of Komatsu equipment already in operation at Jwaneng, as well as at the Orapa and Letlhakane mines.
Komatsu Southern Africa (Pty) Ltd, cnr Diesel and Isando Roads, Isando. Tel: 011 923 1000 | Fax: 011 923 1111 Customer Care Line: 0860 566 2878
www.komatsu.co.za
Technology
TECHNO BLASTERS
Data makes the difference Using data correctly separates effective companies from competitors, giving them the edge in improving and developing solutions and products that can add value to customers. However, if data is irrelevant, badly presented or left to saturate company processes, it can become a resource drain on a company, says Nicky Klacar, senior programmer at blasting company, BME.
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ME has devised a variety of software solutions to streamline the production and application of its data. The benefits gained are passed on to customers through highly specialised services that complement BME’s explosive and detonator products,” says Klacar. “Locally developed software has the edge as developers are able to write high-level customisations for each customer. Relationships are simultaneously built between the development team and the user base. Improved communication is the result, which facilitates the delivery of products for customer use. “For BME, this communications loop increases the software developer’s business knowledge and reduces the time required for software specification and design,” explains Klacar, adding that BlastMap, one of BME’s most successful software products, originated in such a manner. Modifications were made to BlastMap for a customer in Witbank, which dealt with customising reports on vibration and fragmentation and the ability to view and manipulate a plan of the blocks on the mine, before selecting them and adding blast information to them.
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This was followed by further customisation when another buyer wished to interpret data output from BlastMap to predict the elevation below surface of a coal seam and so pre‐plan the blast hole depths. From BlastMap, the use of data at BME has expanded to include the development of software solutions used to monitor and report on the development and manufacture of electronic detonators, as well as calculate and refine explosive formulations. Accurate data management and subsequent analysis is a pre-requisite in providing a quality output – in this case, a cutting‐edge electronic detonator or highly effective explosive formulation. “The geometry of blast design has a major impact on blast performance. BME recognised this, and re-designed the cast algorithm initially used in BlastMap. This eventually led to more effective blast designs and ultimately to the release of AxxiSoft in 2011,” reveals Klacar. AxxiSoft addresses the weaknesses of BlastMap and other algorithms by allowing multiple nodes, and introducing a burden response time to replace the chevron angle required in the old cast algorithm. The burden response can be changed along both the x‐ and y‐axes,
allowing the user to create a cast angle that is not symmetric around the direction axis. “This made it easy for the design of blasts with more than one initiation point. It also integrated virtual row with the cast module without having to group holes before applying timing,” explains Klacar. Since the introduction of Blast Map in 1998, BME has seen its offerings grow to a suite of nine products, she adds. Development has also resulted in internal process benefits, says Klacar. “BME’s Axxis detonators are now monitored during each stage of manufacture to ensure a high level of accuracy and reliability. “BME has also invested in rugged touchscreen mobile device development, allowing an upgrade from the Psion – a handheld device that was used in conjunction with DeltaDets – to a much more versatile user interface for the Axxis Logger. “BlastMap, DensDepth and BME’s other technical programs have been continually upgraded and improved in terms of software technology and add‐ins. AxxiSoft, BME’s blast design code for electronic detonator blasts, is rapidly becoming more and more flexible and powerful. BlastMap remains BME’s stalwart ‘general purpose’ blast design code.”
Project delivery: Pumps
XYLEM:
ITT’s new name ITT South Africa is poised for a name change that reflects its core focus and market position in the efficient transport and treatment of water and wastewater. From early 2012, the company will be known as Xylem, with the tagline, “Let’s Solve Water”.
P
aul Tring, MD at ITT, says Xylem is a botanical term The company’s extensive product offering includes that refers to the tissue in plants that brings water field-proven brands, such as Flygt premier submersible upward from the roots. pumps, mixers and mechanical aeration equipment “Our product brands, applications, experfor use in markets ranging from water and wastewater tise and technological strength are chantreatment, raw water supply, abrasive or contaminelled through a simple marketing stratenated industrial processes, mining and irrigation. gy – to provide water, infrastructure Xylem has the largest submersible rental and application solutions delivered A CD300M Godwin pump powered by a diesel fleet on the continent, consisting of more by a business that is fully focused on engine, skid mounted with a central lifting yoke than 600 units. It also has the most diverse water issues, such as the increasing rental pump range, encompassing potable, need to reuse water and the growing demand for water to support sewage and slurry pumps across four voltage ranges, together with urbanisation and population growth. dredging, mixing and turnkey solutions.
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Project delivery: Pumps
SLURRY SAVVY
Pumping up on pump performance While Weir Minerals Africa may have evolved into a company with a wide range of minerals processing equipment solutions, its slurry pump business remains one of its top priorities. Its commitment to upgrading and enhancing its vast slurry pump range over the last 18 months has been significant, marketing director, Gavin Dyer and slurry pump product manager, Rui Gomes, tell Laura Cornish.
O
ur slurry pump range will always be our ‘bread and butter’, but even though we want to be less dependent on one specific product range, it will always remain one of Weir Mineral Africa’s core equipment ranges, and at least 50% of the business,” says Dyer. The Weir Group is dedicated to research and development (R&D), continually launches enhancements, improvements and upgrades across its brands, and investigates the advantages of incorporating new materials and designs. In the last 18 months, the extensive innovations made to Weir's slurry pump range alone have been vast and will continue to help the company achieve its “substantial” overall growth targets over the next three to four years – which will materialise through the growing sector on the African continent. Another major growth aspect for the business is its service division. “We have many sales and service centres and agents positioned across South Africa and Africa, and every centre has been upgraded to accommodate the growing business being generated from our equipment ranges,” adds Dyer. “We are currently in the process of opening up a new service centre in Kathu in the Northern Cape to facilitate new business emerging from the region.”
The WBH Centrifugal Slurry Pump This new range of slurry pumps was launched globally last year, and according to Weir Minerals, offers more than 20 enhancements to the Warman slurry pumping RIGHT The new Warman WBH centrifugal slurry pump at Coal & Allied’s Mount Thorley Warkworth operation, Australia
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Project delivery: Pumps
RIGHT A Warman 150 WBH and 100 WBH on display at the CH Warman memorial garden at Weir Minerals Africa’s Alrode manufacturing facility
technology, including a fully adjustable and rotatable throatbush to spread the wear more evenly and maintain the pump to operate at its peak performance for longer periods. “This pump range was built with enhanced efficiency and operational savings, and further includes a one-piece frame for correct alignment of bearings, seal and impeller to front liner, as well as easier access for impeller adjustments,” Gomes explains. The front liner adjustment feature allows an operator to rotate and axially move the liner to minimise front impeller gap. This adjustment can be made with the pump running without needing to stop operation, Dyer adds. There are four different pump sizes available in this range (both metal and rubberlined), but will eventually include eight sizes in total. The pump is currently being tested in a coal application, and the first official WBH order has been placed. “I have every confidence that this slurry range will become a market leader, and set a new benchmark for pumps in this category,” says Dyer.
Vertical Spindle Sump Pump Weir Minerals Africa will launch a new vertical spindle sump pump towards the middle of 2012 which has ‘superior’ agitation capabilities. “We already have a test unit installed at a platinum mine in Rustenburg, and are due to install further test units at Foskor and additional platinum mines,” Gomes notes. At any given time, Weir has up to 40 different test trials underway, across its product range. “Test trials are extremely important to us. We have an allocated test budget, as we incur all the costs related to testing our products. It is essential to promoting our new ranges, and is the primary reason we are able to introduce them so successfully into the industry,” says Dyer.
WARMAN AH HEAVY DUTY RANGE The Hi Seal “Because this particular Warman range continues to showcase itself as one of the most successful slurry pump brands, a significant amount of R&D has been invested
In the last 18 months, the extensive innovations made to Weir's slurry pump range alone have been vast into the product to enhance its robust characteristics,” explains Gomes. A new Hi Seal design has improved the original expeller sealing method – the patented expelling vane shape and larger diameter expeller generates a significantly increased pressure in the expeller ring chamber at the same pump speed as compared to the previous sealing arrangement. According to Gomes, a Warman pump incorporating this new Hi Seal technology offers between 15% and 20% improved sealing performance, eliminates seal leakage, has extended component wear life, reduced power consumption, operation costs and maintenance-related costs. The sealing can be retrofitted to the standard AH range.
The WRT Weir Minerals Africa has, in addition, introduced a new wear reduction technology (WRT) to its AH range, which offers the benefit of substantially improved wear life – between 25% and 50%.
The technology specifically incorporates a new impeller and throatbush design – which incorporates a unique vanelet on the back shroud that streamlines the flow through the impeller. Although the WRT technology was intro-
ABOVE A Warman 6_4E AH pump with a Hi Seal expeller sealing arrangement fitted
duced into the market in 2010, Weir Minerals is incorporating it into the entire range of AH pumps. It will eventually cover the entire range in metal or rubber fit-up.
The AHF (MF/L) The Warman Froth AHF heavy duty pump is also based on the Warman AH pump, but
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Project delivery: Pumps Minerals Africa has decided to introduce it to the African market.
The SLR Minerals Processing Pump This medium-duty, rubber-lined slurry pump has been designed to handle fine slurries and relatively low heads. The pump range’s special features include: • internal liners can be fully worn before replacement is necessary • all SLR models are fitted with a pressure-relief feature to minimise the risks associated with over-pressurisation • easily removable shaft sleeve • simple side liner adjustment – can be carried out during pump operation • use of a single piece volute liner with no radial split at the cutwater • reduced seal pressure and re-circulation – vanes are deep-sealed on the front and back of the moulded elastomer impellers • no pulley re-alignment is required after impeller adjustments
ABOVE The new Warman SLR slurry pump with a pump liner manufactured with the new R55 material on display at Weir Minerals Africa’s Alrode facility
has been modified for ‘difficult’ froth slurry. An existing AH pump can be converted to an AHF with only a few minor modifications. It features an inducer blade impeller for positive froth feed and an enlarged high efficiency slurry throatbush to maximise the inlet size. “They are also suited to thickener and/or high viscosity applications,” Gomes states. Because this product range has had substantial success internationally, Weir
• unparalleled sealing (Hi Seal) • extended bearing life – through the use of a large diameter shaft with the shortest possible overhang, and large diameter flingers and static seals to prevent ingress of liquids into the bearings (in operation and while stopped) • bearing over-greasing is avoided through the use of grease relief holes.
ABOVE The 3D AHF showing the unique inducing vane design
INDEX TO ADVERTISERS ADP Projects
44-45
AMEC Minproc
HATCH
IBC
Pilot Crushtec Rand Refinery
39
RSV ENCO
IFC
2
Husqvarna
OFC
43
K'Enyuka
15
Basil Read Matomo
31
Komatsu Southern Africa
Clyde Bergemann
55 46-47
Badger Mining & Consulting
Consulmet
21-22
61-62
Sandvik
Marsh SA
10-11
SEW EURODRIVE
OBC
MicroMine
57
Shadeco Valves & Controls
68
Steval Engineering
50
5
Deloitte
53
MineRP
55
DRA Mining
20
TWP Projects
51
Fluor
13
Operational Excellence in Mining Summit 2012
58
United Fram
9
Group Five
35
Pan African Resources PLC
30
WITS Commercial Enterprise
42
VALVES, INSTALLATION AND REPAIRS • DECO, AMCO AND NINGBO VALVES
SHADECO VALVES & CONTROLS cc Reg.No.: 2005/104280/23 VAT No.: 4320235874
Tel: (016) 986 1768 Fax: (016) 986 3590 E-mail: sales@shadeco.co.za www.shadeco.co.za
56 Daimler Street, N.W.7 Solevaal Building, Unit 1 PO Box 1803, Vanderbijlpark,1911
A fully-equipped engineering workshop for maachining and drilling of all valve and actuator components. Rubber lining division within the company now open.
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