Inside Mining Sep/Oct 2011

MEDIA

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ISSN 1999-8872 • R30.00 (incl. VAT) • Vol. 4 • No. 6 • September/October 2011 ISSN 1999-8872 • R30.00 (incl. VAT) • Vol. 4 • No. 6 • September/October 2011

ROUNDTABLEZero harm on

the menu

DRCTenacity is the

name of the game

SHEQWaste not, want not

TECHNOLOGYSorting and

screening SA’s mineral wealth

Winner of the 2010 PICA Cover of the Year - B2B PublishingWinneCover

Smile you’re on C3’s

intelligent security system

ining

André du Preez, MD of the Horne Group, on their global success

HOT SEAT

T H E K N O W L E D G E Y O U N E E D F R O M T H E I N D U S T R Y E X P E R T S

ON THE COVERMEDIA

www.insidemining.co.za

ISSN 1999-8872 • R30.00 (incl. VAT) • Vol. 4 • No. 6 • September/October 2011 ISSN 1999-8872 • R30.00 (incl. VAT) • Vol. 4 • No. 6 • September/October 2011

ROUNDTABLEZero harm on

the menu

DRCTenacity is the

name of the game

SHEQWaste not, want not

TECHNOLOGYSorting and

screening SA’s mineral wealth

Winner of the 2010 PICA Cover of the Year - B2B PublishingWinneCover

Smile you’re on C3’s

intelligent security system

ining

André du Preez, MD of the Horne Group, on their global success

HOT SEAT



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

September/October 2011September/October 2011CONTENTSSmile, you’re on C3’s intelligent security system. With security systems from C3SS, criminals can run but they can’t hide P4

12

1

EDITOR’S COMMENT33 Risky business

MINING NEWS8 8 The top mining stories making the news in the past month

REGIONAL FOCUS12 12 DRC – There is more gold in those hills (and copper and a

few other things)

COMMODITIES

1616 Gold – The global boom in modular process plants

FINANCE

1818 Risk management – No risk, no reward

22 22 Investment – Putting your money where your future is

2525 Sustainability – One planet, one chance

SHEQ2727 Roundtable – Is ‘zero harm’ a pipe dream?

3131 Health – Ultraviolet germicidal irradiation annihilates TB

3333 Waste management - Rising from the ashes

3434 Environment – Race against time to tackle AMD

3737 Waste management – New technology makes AMD pay

HOT SEAT3838 Horne Group – Locally engineered solutions for global

conveyance safety

TECHNOLOGY: SORTING4141 Even when dumped, it’s a girl’s best friend

4242 The proof is in the pudding

4444 The come-back kid

TECHNOLOGY: SCREENING4646 The money or the box

4646 You couldn’t hear a pin drop

4848 Size counts

4949 A drive for innovation

CETERUM CENSEO5151 Africa is still not for sissies!

Ins ide Mining 09.10 /11

16

22

37

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EDITOR’S COMMENTEDITOR’S COMMENT

3

This issue of Inside Mininghas risk as its theme - security risk, political risk, health and safety risk, environmental risk and fi nancial risk. All of these, ultimately, af-fect the sustainability of the mining industry.

According to Grant Th ornton International’s Government Intervention R eport, increasing and unpredictable government intervention across the globe is adding further complexity to a sector that is already heavily laden with risk. For the most part, these interventions are motivated by fi nancial and political pressures.

Governments looking to increase revenue – whether to fund developing or indebted economies, recover from the fi nancial crisis or simply top up the coff ers – are targeting what they see as a thriving, profi table income source. With global demand creating high commodity prices, government taxes, royalties and other sector-targeted revenue-boosting measures are on the rise, particularly in Asia.

On the political front, governments are re-sponding to growing pressure from environ-mental interest groups and the public. In the face of devastating and very visible incidents, like the BP oil spill in the Gulf of Mexico, gov-ernments have increased environmental legis-lation with numerous regulatory frameworks being developed around the world.

Th e growing calls for nationalisation and indigenisation of mining assets and resources threaten the very existence of some mining companies. Organisations that have ‘jumped ship’ from their home tax jurisdiction look-ing for a more relaxed set of rules must now contend with an uncertain future, particularly in Africa.

Without clarity over the type and extent of government interventions, the development of the sector is in danger of stagnating and, ul-timately, threatening global economic growth.

According to the above mentioned report, the three key intervention areas are taxa-tion, nationalisation or indigenisation and the environment.

With regards to taxation, the tipping point can be reasonably estimated as the point where the government’s aggregate ‘take’ – corpo-rate taxes, sales taxes, payroll taxes, royalties and special costs associated with doing busi-ness in a particular jurisdiction – exceeds 50% of profi ts.

Nationalisation, the takeover of a private company’s assets or operations by the state, and indigenisation, increasing local participation in

EDITOR Tersia Booyzen

E-mail: [email protected]

CONTRIBUTING EDITOR Dr Willem Smuts

CONTRIBUTER Ameerah Griffin

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Danton

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ISSN 1999-8872 Inside Mining

Copyright 2011. All rights reserved.___________________________________

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protected and may not be reproduced either

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Risky business

or ownership of company assets, are forms of government intervention related in scope but with varying implications and perceptions. In

extreme cases of nationalisation or indigeni-sation, third-party investor interest could be wiped out. Even if measures don’t ultimately come to pass, interest will be highly limited as long as uncertainty remains.

Lastly but, to coin a cliché, by no means least, governments around the world remain acutely aware that the green agenda is increasingly im-portant and that legislation of the mining sec-tor is a political necessity as well as an ethical imperative. Although global governments are working to achieve common regulatory ground, the current global landscape remains diverse.

Th ough interventionist policies may success-fully meet some governments’ short-term fi s-cal requirements, they may ultimately hinder overall global fi nancial recovery. Th e report concludes that this will distort the cost of com-modities and capital and aff ect the viability of numerous international exploration and ex-traction projects.

The development of the sector is in danger of stagnating and, ultimately, threatening global economic growth

Your intrepid editor takes a major risk at this year’s Noshcon event

Ins ide Mining 09.10 /114In each issue, Inside Mining offers advertisers the opportunity to promote their company’s products and services to the appropriate audience by booking the prime position of the front cover which includes a two-page feature article. The magazine offers advertisers an ideal platform to ensure the maximum exposure of their brand. Please call +27(0) to secure your booking.

COVER STORYCOVER STORY

When you produce 373 900 tonnes of cop-per and 193 288 ounces of gold, and generate

US$1.9 billion (approximately R13.45 bil-lion) revenue per annum, you tend to become rather particular about your security. This is exactly the position First Quantum Minerals Ltd (FQML), a Brit-ish Columbia-based mining and metals company, found itself in last year.

The solution? FQML appointed South African company, C3 Shared Services (C3SS), to design and install a tailor-made, state-of-the-art ‘intelligent’ secu-rity surveillance system to protect the highly sensitive areas at the company’s Zambian Copperbelt mine Kansan-shi – the eighth largest copper mine in the world, which also happens to produce gold.

C3SS, a specialist in intelligent video and perimeter security solutions, de-signed and installed a unique solution incorporating CCD cameras, high-speed domes and image-intelligent video analytics to protect the perimeter and to monitor all processes within the plant eff ectively.

Theuns Claasen, security manager for the mine, says, “C3SS was chosen after a due diligence process was carried out on a group of suppliers bidding for our con-tract to install a CCTV monitoring system. The decision to appoint C3SS was unani-mous in terms of their superior product and after-sales service. Pre-installation was conducted professionally in terms of product packaging and care for the long delivery trip and the installation process was extremely professional.”

The intelligent video analytics are pro-grammed to detect and alert the control room operators to any intrusions on the perimeter, while the high-speed domes allow for the fi ner details within the plant to be monitored.

“This particular surveillance system has a very high probability of detection

You can run but you can’t hideSECURITY

Africa isn’t for sissies and, if it was up to C3, it also wouldn’t be a place

fit for criminals.

with a very low false alarm rate,” says Gary Egan, senior technical consult-ant for C3SS. He adds: “C3’s custom-de-signed solution off ers FQML the ability not only to monitor all security-sensitive areas from a single control room in real time, but to be notifi ed automatically in the event of a security breach.”

C3SS was tasked with not only protecting the perimeter and internal processes of the gold plant, but also providing supe-rior surveillance at the external main gate and the plant gate. Security at these entrances is in-tegrated with the advanced video management system situated in the control room. The control room, also designed by C3SS, is the heart of the security system. Operators in this state-of-the-art control room have access to all the cameras on the perimeter, as well as the internal cameras. The intelligent video analytics automatically alert the operators to the exact location of any at-

tempted breaches on the perimeter. This automated intelligent ability prevents operators from getting fatigued by hav-ing to watch numerous cameras as they can confi dently rely on the analytics to monitor the perimeter eff ectively.

C3SS’s tailor-made intelligent surveil-lance solution will provide FQML with a future-proof security system and a high return on investment. The solution is a fully integrated IP open-based platform, allowing for expansion and growth and for the integration of future cameras, ac-cess control systems, etc.

Nick Grange, technical director of C3SS, summarises the project as follows: “C3 managed to comply with all cus-tomer requirements, while off ering bet-ter than expected results. Our emphasis was on providing the client with a work-ing solution

a n d not just a security surveillance sys-tem. C3SS not only success-fully completed the project but were able to complete the project three weeks ahead of schedule.”

Turnkey security solutions

A large part of C3SS’s success can be attributed to the com-pany’s knowledge of and in-vestment in the latest and most advanced security technology on off er.

The company’s client list in-cludes an impressive number of blue-chip companies such as the Gautrain project, SA’s National Keypoints, gold and copper mines, precious metal refi neries, power sta-tions, as well as up-market residential and golfi ng estates. C3SS is a pioneer in South Africa, providing robust and eff ective military grade intrusion de-tection systems that provide clients

The solution is a fully-integrated IP open-based platform, allowing for expansion and growth

Ins ide Mining 09.10 /11 5


with instant visual verifi cation of the exact cause and location of any perim-eter breach, even in total darkness. The company’s directors have been involved in providing integrated electronic solu-tions for more than two decades; and as a result bring both a comprehensive and extensive wealth of knowledge in providing eff ective and working perim-eter security solutions for high risk and high value areas.

C3SS provide turnkey intelligent video and perimeter security solu-tions tailor made to suit a client’s in-dividual needs with the primary focus

being on the

implementation of intelligent video analytics and thermal cameras - perim-eters are equally secure day and night.

To illustrate, C3SS has formed a busi-ness partnership with Opgal Optronics Industries, a leading global manufactur-er of innovative thermal imaging safety systems and infrared cameras. The latter launched its latest superior EYESEC™ continuous zoom thermal camera ear-lier this year.

The new EYESEC™ uncooled thermal camera off ers continuous zoom capa-bilities, as well as superb performance, with crisp-clear images, and is the fi rst of its kind in the world. It is available in South Africa through C3SS. The compa-ny has been installing Opgal’s thermal

cameras combined with intelligent video analytics as part of its security

off ering for the past four years. Brendon Cowley, C3 director,

says, “Previously, the continuous

zoom capabilities were only available in the expensive cooled thermal cam-eras but now, thanks to Opgal’s very so-phisticated R & D, they are off ering this same technology in a more aff ordable uncooled camera. This continuous zoom function with auto-focus allows for un-matched ease of use by the control

Some of the additional benefits of the camera include:

• superb performance using advanced image enhancement algorithms

• remote-controlled focus on demand • zoom capabilities – continuous digital zoom

• rugged design – sealed against water, sand and dust

• easy integration using Pelco-D • continuous Optical Zoom from 40 degree field of view down to 6.2 degree

• high resolution up to 640 x 480 – 17 μm pitch

• IP 66.

Intelligent security control room



room operators, combined with supe-rior detection capabilities. We are very excited to be able to off er this new and innovative superior thermal camera to our current and future potential clients.”

Yoav Gross, director of security sales for Opgal, explains the motivation be-hind the development of such a unique thermal camera. “We wanted to give the control room operators the same ‘feel’

and convenience as that of conventional CCTV high-speed domes and pan and tilt devices, but with the thermal capa-bilities advantage. Not only have we suc-ceeded in achieving this, but we have surpassed all expectations with the de-velopment of the new EYESEC™ camera.”

Grange expands on this: “This cam-era allows the operator to zoom from 15 mm to 100 mm optic without having

to switch optics, as was done in the past, and is available in an array of op-tions to suit all applications. The top-of-the-range unit is based on a detector of 640 x 480, with a sensitivity of 17 μm pitch. This sensitivity allows for the de-tection and recognition of objects at further distances. One needs to see the

quality of image as well as ease of use to understand the eff ectiveness of this technology, both day and night.”

The new EYESEC™ off ers night and day, civilian and paramilitary surveil-lance for sites such as nuclear plants, mines, petrochemical installations, warehouses, national borders, airports, railroads, pipelines, oil terminals, elec-trical power plants, communication transmitters and prisons. The camera provides a clear thermal video image in total darkness, light fog or smoke.

Grange notes that the thermal im-aging is especially suitable for African mines as the general range of the cam-era can be set to exclude animals. If un-certain whether it is a human or game crossing the site, the operator can sim-ply verify the nature of the intruder by video. He adds that if you use thermal on mines you need only mount one camera very high to cover the entire site.

“But it is important to note that we don’t sell a system; we sell a solution. The technology mentioned above is very expensive and a single camera can cost upwards of R90 000. However, one of the new thermal cameras can replace nine of the old types of camera and it requires no maintenance or lights and works off solar power, so it does work out to be a cheaper integrated solution,” Grange concludes.

The camera provides a clear thermal video image in total darkness, light fog or smoke

Contact C3 Shared Services

Brendon Cowley Business development [email protected] 011 312 2041www.c3ss.com

LEFT An intruder detected at 450 m running behind a diamond mesh fence

A thermal image

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MINING NEWSMINING NEWSwww.miningne.ws

The top mining stories making the news in the past month

compiled by Ameerah Griffin

TTTTTTTTTTTTTTTTTThhhhhhhhhhhhhhhhheeeeeeeeeeeeeeeee ttttttttttttttttttoooooooooooooooooppppppppppppppppp mmmmmmmmmmmmmmmmmiiiiiiiiiiiiiiiiinnnnnnnnnnnnnnnnniiiiiiiiiiiiiiiiinnnnnnnnnnnnnnnnnggggggggggggggggg sssssssssssssssssttttttttttttttttttooooooooooooooooorrrrrrrrrrrrrrrrriiiiiiiiiiiiiiiiieeeeeeeeeeeeeeeeesssssssssssssssss mmmmmmmmmmmmmmmmmaaaaaaaaaaaaaaaaakkkkkkkkkkkkkkkkkiiiiiiiiiiiiiiiiinnnnnnnnnnnnnnnnngggggggggggggggggggg tttttttttttttttttthhhhhhhhhhhhhhhhheeeeeeeeeeeeeeeee nnnnnnnnnnnnnnnnneeeeeeeeeeeeeeeeewwwwwwwwwwwwwwwwwsssssssssssssssss iiiiiiiiiiiiiiiiinnnnnnnnnnnnnnnnn tttttttttttttttttthhhhhhhhhhhhhhhhheeeeeeeeeeeeeeeee pppppppppppppppppppppaaaaaaaaaaaaaaaaassssssssssssssssstttttttttttttttttt mmmmmmmmmmmmmmmmmooooooooooooooooonnnnnnnnnnnnnnnnnnnnnnttttttttttttttttttttttttthhhhhhhhhhhhhhhhhhhhhhTThhee ttooppppppp mmiinniinnggggggg ssttoorriiee ggThe top mining stories making the news in the past month

| AFRICA |

SOUTH AFRICA

Anglo American to divest minority interest in Palabora Source: miningne.ws

Anglo American announced that it will participate in the sale process initiated by Rio Tinto to dispose of both companies’ interests in Palabora Mining Company Limited. Anglo American currently holds a 16.8%

effective interest and Rio Tinto an effective 57.7%.

Palabora’s principal asset is a copper mine in South Africa that also produces vermiculite and magnetite and, while studies are underway for a potential extension to the copper

mine’s life from 2016 to 2030, the operation is no longer of a sufficient scale to suit Anglo American’s investment strategy. Palabora owns a magnetite stockpile and the future value creation at Palabora is likely to involve the on-site processing and beneficiation of magnetite, an opportunity that Anglo American believes will be best developed under new ownership.

LESOTHO

Financing agreement lifts Namakwa DiamondsSource: www.sharecast.com

Shares in Namakwa Diamonds sparkled after it announced it had reached an agreement with Javirne, the investment vehicle of Ukrainian industrialist Eduard Prutnik, to become a strategic investor in the stricken southern Africa-focused miner.

The investment will secure the immediate funding needs of Namakwa’s kimberlite mining project in Lesotho. Namakwa announced earlier this month that a previously announced $30 million loan facility was no longer available on the terms discussed.

Namakwa has entered into definitive agreements with Javirne for a $40 million two-year loan facility, of which $23 million will be made available between now and November. The agreement involves the issue of 61.75

million shares to Javirne. The remaining $17 million will be conditional on the issue of a second tranche of shares to Javirne. Following the issue of the first tranche of shares, Javirne will hold 28.45% of Namakwa.

NIGERIA

Nigeria sees first iron ore output in 2012 Source: www.reuters.com

Nigeria expects the fi rst signifi cant iron ore production next year from its Itakpe iron ore deposits as it looks to reduce its dependence on oil and gas revenues.

“Unfortunately, once we found oil, all the attention went to oil and we neglected (other areas)... mining is one of the key areas that we want to diversify into,” said Olusegun Aganga, the minister of trade and investment.

The West African country, which gets nearly 80% of its revenues from oil and gas production, will start receiving revenue from iron ore production next year, he added.

The Itakpe iron ore deposit contains 3 billion tonnes of iron ore reserves, according to the minister. He said initial production from the mine is expected to be 2 million tonnes per year, ramping up to 20 million tonnes annually in fi ve years, a development that will help Nigeria

BURKINA FASO Burkina Faso’s first zinc mine to start up

Source: www.reuters.com

A new zinc mine in West Africa is due to start up in mid-2012, just as some of the world’s largest deposits are winding down, creating the fi rst window in years for new suppliers in a chroni-cally over-supplied market.

The Glencore International-controlled Perkoa zinc mine in Burkina Faso will start shipments of concentrate by June 2012, rapidly building to an annual rate of 90 000 t of contained metal.

Blackthorn MD Scott Lowe said start-up of the mine, following an A$80 million cash injection by Glencore, would track the clo-sure of bigger zinc mines in Australia and North America, which is threatening to create a supply gap for the metal.

For now, analysts believe there is an over-supply of zinc of between 500 000 and 750 000 t, if global demand remains at around 13.5 million tonnes.



establish a track record in the mining industry and allow it to attract more investors.

BOTSWANA

Botswana to lift coal-licence moratoriumSource: www.iol.co.zaBotswana will lift a moratorium on new

prospecting licences for coal, coal-bed methane and related minerals by the end of September, a government offi cial said. The southern African nation suspended new licences in June, pending fi nalisation of a new strategy for the coal sector.

Botswana’s trade and industry minister, Dorcas

Makgato-Malesu, said the suspension of licensing allowed the government to “go back to the drawing board, come up with a roadmap that is more strategic, more focused, more thought through, as it were, and aligned to the national vision and national strategy of diversifying”.

Botswana must also diversify from its diamond sector, which generates half of the country’s revenue and a third of gross domestic product, she added. Botswana believes that its coal and gas reserves have the potential to grow into an industry as big as the diamond industry.

| AMERICAS |

USA

Two coal mines receive PPOV notices from MSHASource: www.emoneydaily.com

The US Department of Labour’s Mine Safety and Health Administration (MSHA) has issued notices of a potential pattern of violations (PPOV) to Randolph Mine operated by Inman Energy and Justice No. 1 Mine operated by Independence Coal Co. Inc. Both are underground coal mines in Boone County, West Virginia, which were formerly owned by Massey Energy.

The two mines did not receive PPOV notices during the last screening round in November 2010, but along with three other mines then owned by Massey Energy and two owned by Peabody Energy, were the subject of audits to determine whether they had failed to report injuries that would have affected their selection under the existing criteria. Both Massey Energy and Peabody Energy refused to turn over accident, injury and illness data to MSHA.

| AUSTRALIA |

Rio Tinto invests US$310 million in water project Source: www.miningne.ws

Rio Tinto will invest US$310 million to assure a sustainable water supply for its iron ore operations in the Pilbara region of Western Australia, ensuring a sufficient resource to accommodate the expansion of annual production capacity up to the planned 333 Mt/a. The coastal water supply project, which involves

SOUTH AFRICA SA awaits shale gas assessment outcome

Source www.miningne.ws

South Africa has very limited gas reserves and the Department of Energy is awaiting the outcome of the assessment of shale gas potential, which is currently estimated to be around 485 trillion cubic feet, the department’s deputy director-general for Hydrocarbon, Tseliso Maqubela, said.

The department noted eff orts by the Petroleum Agency of South Africa (PASA) in the promotion of gas exploration, while the national oil company, PetroSA, was busy with eff orts to source gas for its gas-to-liquids facility in Mossel Bay.

“There are also projects afoot to explore the potential of im-porting natural gas, as both liquefi ed natural gas (LNG) and compressed natural gas (CNG), to meet our country’s energy demands,” said Maqubela.

South Africa’s IRP2010 energy plan aims to improve the country’s global competitiveness as well as to support job crea-tion and reduce greenhouse gas emissions. Under the plan, imported gas is expected to make up 6% of all new electricity generation, hydro power 6%, open cycle gas turbines 9%, coal 15% and nuclear 23%.

Massey Energy mine

Massey Energy mine



the construction of a new borefield and pipeline system, will be completed by mid-2013, coinciding with the first ore from the planned increase in production capacity to 283 Mt/a.

Rio Tinto will build, own and operate the new borefield, located in the lower Bungaroo Valley, 35

km south-east of the town of Pannawonica, with an annual capacity of 10 Gℓ/a.

Under the proposal, Rio Tinto will surrender its existing priority entitlements to the Millstream water supply; in return, the government has agreed to amendments to secondary processing obligations.

| CANADA | First new Southeast copper mine since 1998 Source: www. castlegarsource.com

Having started production in June 2011, Copper Mountain is the third-largest copper mine in Canada and the fi rst major-metals mine to open in British Columbia since 1998.

The 7 285 ha (18 000 acre) site is located 20 km south of the town of Princeton and is expected to produce approximately 2.27 billion kilograms (fi ve billion pounds) of copper over its life. The mine life is estimated to be about 17 years, although ongoing explorations are yielding positive results that may ultimately extend that time.

When fully operating, the mine will provide about 270 mining jobs in the Princeton area. The BC mining sector hit $7.9 billion in gross revenues in 2010, returning to 2008 historic levels after rebounding in recent years.

Rencore starts drilling in the Ring of Fire area Source: www.marketwire.com

Rencore Resources’ first diamond drilling programme commenced on its wholly owned mining claims in the James Bay Lowlands of Northeastern Ontario (‘Ring of Fire’ area) within the Webequie First Nation Traditional Lands. This initial programme tests approximately one half of the high-priority drill targets; the other half of the drill targets are within the Kasabonika Lake First Nation Traditional Lands.

The main Ring of Fire structure hosts a number of chromite deposits as well as nickel-copper-PGE MMS and copper-zinc-lead VMS deposits presently undergoing economic mining studies by their owners.

The eight drill targets being tested by Rencore with ap-proximately 1 200 m of drilling are the highest priority anom-alies resulting from an electro-magnetic and magnetometer VTEM airborne survey carried out over the mining claims and surrounding area during 2010 by GeoTech Ltd of Au-rora, Ontario.

| EUROPE |

NV Gold to acquire exploration permit in Switzerland Source: www.marketwatch.com

NV Gold Corporation has entered into an agreement to acquire an exploration permit for gold and precious metals covering a total area of ap-proximately 136 km2 in the Commune of Medel/Lucmagn in the Canton of Graubunden in southeastern Switzer-land. The property is lo-cated in the Alps in a sparsely populated area.

The Medel permit encom-passes a large portion of the Gotthard Massif, made up of pre-Variscan basement rocks of the Central Swiss Alps. Dr Quinton Hennigh, a director of the company, stated: “Gold mineralisation is associated with a unit of quartz-sericite-pyrite schist occurring along an east-west-trending belt over 6 km long. Thickness of this schist horizon ranges from a few metres to approxi-mately 200 m.”

AUSTRALIA 2015 start for Carrapateena construction

Source: www. ninemsn.com.au

OZ Minerals bought Carrapateena in May for $US250 million (A$235.8m) from parties including famed Adelaide-based pros-pector, Rudy Gomez, and the Australian arm of Canadian mining giant, Teck.

The miner is studying options for mining Carrapateena, includ-ing the low-cost but sometimes risky block-caving method, which involves digging a grid of tunnels under an ore body and allowing rock to collapse to the ground – in a controlled fashion – where it is collected and removed from the mine for processing.

OZ Minerals said in a presentation that construction could start mid-2015, assuming results from a feasibility study are favourable. Studies on the mining style will continue through to early 2013.

The cashed-up OZ Minerals also said it continued to seek cop-per and gold opportunities, potentially joint ventures, in low- to medium-risk countries.

Pilbara water project

First new Southeast copper mine


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India, Iran and Canada bid for Afghan iron ore Source: www.bloomberg.com

Afghanistan’s richest iron ore deposit drew bids from an Indian government-backed group, two Iranian contenders and Canada’s Kilo Goldmines Ltd (KGL).

Afghanistan’s mines ministry opened the bids for the estimated 1.8 billion tonnes of ore at Hajigak, 100 km (60 miles) west of Kabul, said Abdul Jalil Jumriany, a

ministry director-general. The tender is the biggest on offer in a country that the US government estimated last year holds $1 trillion in untapped minerals.

Seven Indian steel and mining companies, led by state-owned Steel Authority of India Ltd (SAIL) and NMDC Ltd, offered a bid that is part of an effort by Prime Minister Manmohan Singh’s government for a bigger role in a nearby country whose stability it calls essential.

CHINA New rules for safety in coal mines

Source: www.chinadaily.com.cn

China’s top workplace safety regulator is introducing national standards for safety technologies used in the country’s accident-plagued coal mines. A set of four standards on polymeric mate-rials used for coal mining safety will take eff ect on 1 December, according to the State Administration of Work Safety (SAWS).

The standards are related to the prevention of coal mine acci-dents, including methane gas blasts, underground fl oods and shaft collapses, by using high-technology polymeric materials, Jiang Zhimin, the secretary-general of the China National Coal Association, said.


REGIONAL FOCUSREGIONAL FOCUS

DRC

There is more gold in those hills (and copper and a few other things)Many people will tell you that it is terribly tough to do business in the

Congo, yet both big and small players (with the required cojones) manage

to bring successful projects to life there. BY DR WILLEM SMUTS



M any junior miners are finding the country both challenging and exhila-rating. “We have quite

a different view of working in this country, where we have found peo-ple eager to leave the troubled past behind them and build a future char-acterised by economic opportunity, social development and political sta-bility,” notes Martin Jones, chairman of the Banro Foundation.

In my book, Anvil Mining, what must be one of the DRC’s recent suc-cess stories involves how Bill Turner pounded the Kinshasa pavements and the jungle for many a month chasing a dream in order to turn his minnow into a mid-tier copper producer. In the early days, Turner lived out of a suitcase and the ministry officials would laugh at him as he walked, sweating under the tropical sun, to their offices to save the cab fare which he would rather spend on moving An-vil towards that first live project in Dikulushi. Many thought the ‘white-boy’ was nuts.

That is not to say that doing busi-ness in the DRC is easy. It is not. There are many challenges that meet new ar-rivals, such as governmental red tape, poor infrastructure and lack of logis-tical support. The latter two have long since been addressed and the first continues to improve. Ultimately, the primary ingredient towards making it, not just in the DRC but all over Africa, is tenacity. That tenacity that enables the likes of Anvil, Banro and Tiger Resources, to name but a few, to go exploring and eventually make that difficult transition from explorer to producer. A close second to tenacity would be vision.

Lessons learntMartin Jones lists a number of critical lessons learnt in operating in the DRC:1. On-going consultation and dialogue

at all levels of society is absolutely critical to success in the DRC.

2. Along with consultation comes the obligation to listen, with great

sensitivity, and follow through fully on commitments.

3. Mining companies wishing to work in the DRC must have a strategic and comprehensive commitment to community development.

4. Transparency is critical.5. Job creation and on-the-job train-

ing must be the top commitment.

There’s a tiger in my jungleTiger Resources Limited (ASX/TSX: TGS) is a producing copper/cobalt company that only recently made the transition from explorer to producer. Tiger started production at its flag-ship Kipoi Project in April 2011 and will have an annual production of 35 000 tonnes of copper.

The first shipments of copper con-centrate produced at Kipoi were trans-ported from site on 15 June 2011 and the company expects sales to continue steadily as production is increased to achieve planned plant operating levels over coming months. Tiger has an In-dicated resource of 3.1 Mt at 1.6% Cu containing 49 000 tonnes of copper and an Inferred resource of 11.6 Mt at 1.3% Cu containing 151 000 tonnes of copper at Sase Central, a

THE BIG ENDConstruction activities on the approximately $2 billion initial development project at Tenke Fungurume are complete and production of copper and cobalt is underway. Production of copper cathode commenced in March 2009 and achieved targeted rates in September 2009. The cobalt plant and sulphuric acid plant were commissioned in the third quarter of 2009. Based on the 10-year average of current design operations, Tenke Fungurume expects to produce 250 million pounds of copper and 18 million pounds of cobalt per year.

Tenke’s ownership currently stands as: Freeport-McMoRan, 56%; Lundin Mining Corp., 24% and Gecamines, 20%. This ownership structure was agreed to by FCX, Lundin Mining Corp. and Gécamines in October 2010 and is being incorporated into related agreements.

Tenke Fungurume Mining has paid more than US$290 million in taxes, duties and other payments to the government of the DRC since construction began in 2006 and more than 50% of the economic benefits of the project will remain in the DRC through taxes, royalties and dividends. Including the provision of local services, more than two thirds of the project’s benefits will remain in the country.

ABOVE About 180 km northwest of Lubumbashi in the Katanga Province lies Freeport-McMoRan’s $2 billion investment in copper and cobalt. Annual production

of 250 million pounds of copper and 18 million pounds of cobalt is envisaged

OPPOSITE DRC is slowly retaking its prime position among the world’s

largest copper producersCredit: Freeport McMoRan

ABOVE Mineralisation on Kipoi North is predominantly hosted by malachite

in deeply oxidised and weathered siltstones and dolomites which are part

of the Lower Roan Mine Series Credit: Tiger Resources



deposit within its 100%-owned Lupo-to Copper Project.

Twangiza Phase I entering cold commissioning – production in Q4Banro Corporation’s construction of its wholly-owned Twangiza Phase 1 gold project in South Kivu Province, DRC, is proceeding on schedule, with gold production expected to begin in Q4 2011. ‘Cold commissioning’ - a test run of fluids through the ore process-ing plant - commenced mid-August with mechanical commissioning that will proceed to ‘hot commissioning’ - a test run of low grade ore material through the plant - by mid-September. Twangiza’s Q4 gold pour will represent the first new commercial gold mine in the DRC in over half a century.

“We are fast approaching a signifi-cant milestone for both Banro and South Kivu province in the DRC,” com-mented Simon Village, CEO. “Since Banro’s board made the decision to

BANRO CORPORATIONBanro Corporation is a Canadian-based gold exploration and development company focused on the development of four major, wholly-owned gold projects, each with mining licenses. The company controls most of the 210 km-long Twangiza-Namoya gold belt in the South Kivu and Maniema provinces of the DRC. Banro is constructing Phase 1 of its flagship Twangiza project. Banro’s strategy is to unlock shareholder value by increasing and developing its significant gold assets in a socially and environmentally responsible manner has been executed since the early days of exploration through the building of schools, a hospital and the upgrading of roads in the region. This work is carried out through its Banro Foundation.

ABOVE Kibiswa Primary School – then and now! Credit:: Banro

ABOVE This mine with a view was completed two months ahead of

schedule with a total of 1.2 million tonnes of earth being excavated

Credit: Banro

proceed with development and con-struction of the Twangiza Mine in the summer of 2009, we have worked dili-gently and to a tight schedule, which has allowed our company to pour its first gold in two years and, with weeks to go, we remain on schedule. This event will also signal a tremendous

achievement for the South Kivu prov-ince as it will be the first new com-mercial gold mine in the DRC for over half a century - and a testament to co-operation between the community, government and industry, which was necessary for this undertaking.”

Phase 1 construction updateThe successful activation of this 1.3 million tonne per year capac-ity gold production facility follows 24 months of achieving strict deadlines, starting with the plant site and con-struction camp civil excavation works that were completed two months ahead of schedule and with a total of 1.2 million tonnes of earth being exca-vated. The capacity of this plant is to be increased to 1.7 million tonnes per year by mid-2012.

Plant civil construction works are virtually complete, while the structur-al, mechanical, electrical, instrumenta-tion and piping is 93% complete. The Aggreko power plant - the diesel-pow-ered generation system with a design capacity of 7 MW - is 90% complete and a source of raw water for the pro-cessing plant has been secured. Cold commissioning commenced the first

week of August with the testing of the conveyer belts in the crushing circuit.

The construction of the tailings man-agement facility is on schedule. Some 350 000 tonnes of earth was excavated in the construction of the foundation for the tailings dam wall and, to date, 1.1 million tonnes of earth have been

placed in the wall, which will have suf-ficient capacity to commence opera-tions as per our mining schedule.

Grade control drilling for the initial mining has been completed, confirm-ing the resource model’s evaluation and, based on this data, an optimised mine plan has been finalised. Pre-strip, which was minimal owing to the out-crop of reserves at surface, has been completed and mining production is expected to commence towards the end of August. The mine planning is designed to optimise revenue by care-ful management of the cut off/cut over relationships of the ore body.

Currently, the mine is on schedule to pour gold in Q4 2011 and ramp up to full production of around 10 000 ounc-es per month early in 2012.

BELOW Cathode copper awaiting shipment from Anvil Mining’s Kinsevere

SXEW plant near Lubumbashi. All provisional copper cathode assays

received from an independent laboratory since the start of production

confi rm that all metal produced conforms to LME grade A specifi cations.

The company will be seeking LME registration for its Kinsevere cathode

Credit: Anvil

Co-operation between the community, government and industry was necessary for this undertaking

COMMODITIESCOMMODITIES


Appropriate Process Technol-ogies (APT), a South African-based modular process plant supplier, has a full order

book, with many more orders in the wings. “Gold is the flavour of the day and with the boom having no foresee-able end in sight the emphasis is on simple implementation and operation parameters, along with maximum re-covery in low-energy format,” says MD Kevin Woods.

Plants are designed to arrive in sim-ple modular units that can be combined in remote, inaccessible areas. Start-up is usually one to six days, depending on the size of the plant. Constant interac-tion with mining process operators on the ground is undertaken to ensure on-going upgrades are implemented at all stages, Woods explains.

GOLD

The global boom in modular process plantsThe mining sector, and the gold mining industry in particular, is booming,

and so is the demand for modular process plants.

Th ree RG scrubbing plants, one in South America and the other two in Central Africa, have been commis-sioned recently. Th ese plants are for processing gold: two being for alluvial plays and the other an alluvial/hard rock combination.

“Th e South American plant was a lo-gistical challenge as it was in a remote jungle site. Th is RG scrubber was imple-mented to rehabilitate existing riverbed material while simultaneously incorpo-rating recovery. Th ere was heavy rain – approximately 18 hours a day – and a new road had to be remade using an ex-cavator to get the plant in place. Once there, it was a wet and sticky few days to get it up and running,” says Woods.

An order has been received from West Africa for multiple RG scrubbing plants – both alluvial and hard rock

alluvial combo plants. Woods notes that this is in fact the fi rst phase of a three-part phased build for 11 plants in total, to be delivered over the next eight months, including two RG800s (80 t/h) and fi ve RG200s (20 t/h). Th e confi gurations include pure hard rock, alluvial and hard rock/alluvial com-bination modules. All of these plants incorporate the latest RG designs and will include Knelson concentrators to recover the gold.

In addition, a South American min-er has commissioned APT to build an SG200 plant. Th e all-new SG200 is a plant with a screen rather than a scrubbing drum to accept loose sand that does not require tumbling to pre-disintegrate the feed. Th e SG200 plant is equipped with a scavenger cyclone in closed circuit with a Knelson concen-trator to target particularly fi ne gold that has escaped the traditional sluice processing methods used to date.

Th is simple new plant introduces an unprecedented low capex entry level in a simple, easy-to-operate package fed by a gravel pump. “What is really exciting is that the plant is also specifi cally designed to re-cover mercury and thus de-c o n t a m i n a t e polluted are-as,” Woods en-thuses.

Th e Knel-son concen-trator used in this plant has a special feature to enable the capture of mercury to a separate

COMMODITIESCOMMODITIES

container. Th e South American mining company has also opted for a tradition-al RG200 scrubber with the same mer-cury recovery system.

An IC30 hard rock plant has been built and is now in production in Cen-tral Africa. “Th is is a very neat impact crusher and screen arrangement in a space frame with an integral GoldKa-cha concentrator. Th e entire plant, in-cluding concentrates upgrade table and internal water pumps, runs off a 40 kVA generator. Th e IC30, at 3t/h feed (-150 mm), is the baby brother to the IC120, which handles 10t/h (the IC120 is com-bined with a Knelson concentrator).

“Th e impact crusher up front acts as a primary and secondary/tertiary crusher in one pass,” Woods elaborates. “Th e well-fragmented and fi ne product produced by the high-impact blow-bar enhanced crushing system within the crushers ensures that gold is released in what is termed as ‘early liberation’ for easy concentration by gravity downstream.

Th e mining company using the IC30 in this instance has begun negotiations to swarm more of the same plants in high yielding areas and they are keen to get their hands on an IC120!”

Closer to home, an order has been completed for the supply of a new-style MK2 RG200 Scrubber – a low-slung,

wide-bellied scrubber rated at 20 t/h feed. “Th is machine will be installed in Mozambique shortly, along with a dou-ble-deck poly-screen to process baux-ite. Th is is a repeat order for APT, with the bauxite mine already having run a RG200 on bauxite successfully for the last fi ve years,” concludes Woods.

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FINANCEFINANCE

RISK MANAGEMENT

No risk, no reward


FINANCEFINANCE

Political turbulence, violence and change have been making headlines Political turbulence, violence and change have been making headlines

across the globe over the past year. across the globe over the past year. Tersia BooyzenTersia Booyzen speaks to the experts speaks to the experts

about the concomitant risks to companies doing business in Africa.about the concomitant risks to companies doing business in Africa.

T he Terrorism and Political Vi-olence Map for 2011, released by Aon Risk Solutions, per-fectly illustrates the signifi-

cant increase in political violence risk on the African continent. The map, which acts as a gauge for the intensity of terrorism and political risk to in-ternational business in each country, has named Zimbabwe, Nigeria, Egypt and Libya, among others in Africa, as countries with the most severe risk levels in the world.

South Africa’s country level risk is rated as medium, on par with coun-tries such as Russia, Saudi Arabia, Turkey and Cambodia. Nico Bianco, executive head of risk consulting at Aon South Africa, says that South Af-rican businesses that have commercial interests in Africa need to be vigilant of this increase in political risks.

“The map integrates an increase in risks that are not only exclusive to ter-rorism. Businesses also face threats associated with sustainability, busi-ness continuity and future growth from political violence, strikes, riots and civil war. In this regard, coup risk and rebellions in Africa reflect a conti-nent that presents a significant politi-cal violence risk.”

Bianco says the map highlights the need for businesses to be well in-formed on the current trends develop-ing rapidly across the world in order to protect their business interests.

“The reality of the situation is that threats to commercial success exist in a variety of forms and the updated map seeks not to undermine the inci-dence or severity of terrorist threats, but to promote a more holistic ap-proach to risk management services in Africa,” says Bianco.

He notes that companies should develop contingency plans to avert the possibility of suffering a discon-tinuation of business operations by identifying the threats they face and

South African companies with commercial interests abroad should adhere to the following guidelines:

• Conduct risk management audits via a reputable risk management provider.

• Keep abreast of the socio-political sphere of the country of interest.

• Make use of accurate and up-to-date country risk analysis reports.

• Develop and regularly update a business continuity process.

• Implement a check-in service with a designated local contact to provide ‘on-the-ground’ situational updates for satellite offices potentially at risk.

• Implement an escalation process using local personnel and/or associates if employees become unreachable during elevated risk situations.

• Provide risk management training seminars for employees based in high- risk countries.

implementing a comprehensive risk management programme to pro-tect their employees, physical assets and profitability.

Russell Davis, principal broker, Cor-porate Risk Services at Aon South Africa, notes that some of the major risks include skills shortages due to persons not wanting to work in those countries, environmental risks caused by ,or following, violent actions, com-modity and exchange rate risks, and legislation risks that follow from less investment due to the deemed insta-bility of a country.

“We need, however, to distinguish between insurable and non-insurable risks,” Davis says. “With insurable risks, the company needs to ensure that they look after the well-being of their employees because these risks can result in injuries, death and medi-cal exposures, including psychologi-cal treatment, etc. With regard to the operation, you could have damages to

assets including consequential loss-es, such as interruption in business, which is normally a far greater risk than the replacement cost of the asset.

“In a politically driven environment, there are other large risks such as eco-nomic changes (changes in exchange rates, overseas investments, etc.) which would not necessarily be insur-able, although trade credit policies can take some of the risk away from the company,” Davis adds.

What are the major threats to employees and other assets in a volatile political situation? Davis explains that a political/mili-tant/terrorist uprising can impact all

people and could result in injuries and death while at work and even outside the work environment. Some other

risks exist, including kidnap and ran-som or extortion – especially for key persons in the operation.

“With assets, the impact is usually damage to property and, following this, the company faces a period of business interruption. Interruption in the business could even happen if no damage is caused to the property and, in some cases, this is not insurable. Furthermore, accidental-type environ-mental impacts could also be a result,” Davis elaborates.

He notes that these risks can impact any business. “However, it is easy to understand that the mining industry is an easy target for these risks. The minerals and resources being mined

The map highlights the need for businesses to be well informed on trends developing across the world


FINANCEFINANCE

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FINANCEFINANCE

belong to the country or the peo-ple of that country, so they want to make sure that they are remunerated as, if they are not, this could lead to an uprising which will impact the country, the business and its people. Also, some minerals are scarce and others will fight to get hold of them. This industry generally also has em-ployees belonging to a union, which increases political risks such as riots and strikes.”

Is there a recommended risk management programme specific to the mining industry? According to Davis, every country and every company has its own specific risks and needs a programme that is aligned with these.

“Major mining groups already have good risk management programmes that are enterprise wide – meaning that they do not only relate to assets and people, but to all fields, such as infrastructure, IT, HR, finance, etc., and this is essential to maintaining

the profitability of the company,” says Davis.

He advises companies to asses all the risks before entering countries. “Companies normally carry out an analysis of poltical risks and they try to mitigate/minimise these risks as far as possible. Outside specialists and re-sources are crucial in the planning and

risk assessment phase because of the wider knowledge base they provide.”

Bianco adds that each business will have different requirements when it comes to risk management and should seek professional advice. “Risk man-agement programmes will involve a mix of both insurance and risk miti-gation measures, such as implement-ing and educating staff on personal security policies; improving security

of physical assets (such as buildings and other infrastructure) and ensur-ing that comprehensive response pro-cedures are in place to deal with low-frequency, but high-impact, events.”

We don’t have to travel far from home to see the impact of the risk men-tioned above. “In recent times we have seen news reports on comments from

political parties in South Africa want-ing ownership of mining, and even steel, companies. We also see that a strike in a particular industry can have a devastating effect on that sector and the country as a whole,” says Davis.

“These are some of the risks faced just inside the borders of South Africa, so you can imagine that other coun-tries would have similar and different risks,” Davis concludes.

A strike in a particular industry can have a devastating effect on that sector and the country as a whole

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FINANCEFINANCE

INVESTMENT

Putting your money where your future isSouth Africa’s fi rst Green Index has been launched by Nedbank Capital as a

benchmark for environmentally conscious investors. Tersia Booyzen is happy

to report that three of the top 10 companies are directly involved in mining.

According to Jacoleen Simpson, senior transactor at Nedbank Capital, the index has the po-tential to become the industry

standard in measuring the performance of companies with environmentally sus-tainable business practices. Th e index tracks the performance of companies se-lected primarily on environmental crite-ria, including carbon and climate change risks and opportunities.

Th e index has been developed by Nedbank Capital in line with its green

principles and commitment to preserv-ing the environment, and in response to the increased demand from environ-mentally conscious investors. Th e index consists of a selection of stocks from the

Environmental considerations in investing

Managing environmental risks and opportunities affects financial outcomes. In particular, climate change will result in a radically different operating environment for companies – from both a regu-latory and a physical perspective. Companies that are better able to mitigate their environmental risks and adapt to these changes are better positioned and more likely to outperform their peers.

Investing in companies with strong environmental credentials incentivises companies to be-have responsibly and allow investors to act on their environmental convictions. Both the recently launched Code for Responsible Investing in South Africa (CRISA) and the redrafted Regulation 28 for Pension Funds encourage investors to take environmental considerations into account in their investment decisions. The Nedbank Green Index provides a benchmarking and passive investment tool for this purpose.

top 100 largest South African companies listed on the JSE.

Simpson says, “We are proud to be able to launch South Africa’s fi rst Green Index, which demonstrates our


FINANCEFINANCE

commitment as a bank to delivering in-novative products in the green space. Furthermore, our work on the Nedbank Green Index has shown that taking the environment into account in investing can also make sense from a fi nancial per-spective. Investing responsibly does not have to come at a cost in performance for the investor.”

Th e index is rules based, with a clear, transparent methodology based on ob-jective and independent data. Th e in-dex will be verifi ed by an independent calculation agent on an ongoing basis, with daily values published on data ser-vice providers such as Inet, Bloomberg and Reuters.

To ensure its objectivity, the index is built on the Carbon Disclosure Project (CDP) database and the UN register of Clean Development Mechanism (CDM) projects in South Africa. Th e CDP is an independent not-for-profi t organisa-tion, based in the United Kingdom, which holds the largest database of corporate climate change commitment and action in the world. Th e CDP has 551 institutional investors as signa-tories, representing over $71 tril-lion in assets under management. CDM projects based in South Af-rica are also incorporated into the rules-based methodology as these represent demonstrable commit-ments from companies to reducing their carbon impact and growing the green economy.

Th e index combines these environ-mental credentials with liquidity screen-ing criteria to create an investable index. Unlike other South African indices cur-rently available, it uses environmental along with liquidity criteria to select constituents and weights these con-stituents according to environmental performance. Th is distinguishes it from the JSE’s SRI Index, which selects con-stituents based on environmental, social and governance criteria and thereafter weights constituents based on their market capitalisation.

Th e index is rebalanced in line with the quarterly review of the FTSE/JSE Africa Index Series. Constituent se-lection based on the CDM is also as-sessed quarterly and changes resulting from the CDP are reviewed after the release of every new report. Th e index

SECTOR ALLOCATION Inner circle: FTSE/JSE All Share Index

Outer circle: Nedbank Green Index

Top 10 holdings in the Nedbank Green Index with comparative index weights in other indices (%)

Company Green_IX SRI (J100) ALSI (J203) SWIX40 (J400)

GFI Gold Fields 5.8 2.7 2.2 1.3

WHL Woolworths Holdings 5.0 0.8 0.7

NED Nedbank Group 4.5 1.1 0.9 1.7

BAW Barloworld 4.2 0.4 0.3

MSM Massmart Holdings 3.9 0.5 0.4 0.7

MND Mondi Ltd 3.7 0.2 0.2 0.3

SOL Sasol 3.7 5.9 4.8 7.0

EXX Exxaro Resources 3.5 0.5 0.4 0.9

BVT Bidvest 3.5 1.4 1.2 2.3

VOD Vodacom 3.5 1.1 0.9 1.8

Risk and return metrics for different indices since June 2008 (p.a.)

Green_IX SRI ALSI SWIX40

Total return (%) 6.7 -4.3 -1.0 -0.5

Risk – standard deviation (%) 21.5 27.0 24.3 24.1

Risk-adjusted return 0.31 -0.16 -0.04 -0.02

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Th e premise for the index is that com-panies who are better positioned for a changing environment are better suited to sustaining their future performance

While the performance of the Ned-bank Green Index in relation to the market may vary in the future, what this demonstrates is that investing based on environmental criteria does not have to cost investors in performance. In a single stroke, investors can confi dently invest for their own futures and that of our planet.

Th e index will provide a platform for companies to show off their green cre-

dentials and hopefully it will encour-age other companies to implement more environmentally sustainable business practices.

At present, the index can be freely utilised as a benchmark for environmentally conscious inves-tors and it can be directly invested

in by local and international institu-tional investors through segregated

portfolios managed by Nedgroup Secu-rities. Nedbank is also in the process of gaining the necessary approvals to list an Exchange Traded Fund (ETF), which will provide easy, low-cost access for re-tail and institutional investors. Th e ETF will be the second to be launched in the BettaBeta ETF series.

Simpson concludes, “By launching this index, we hope to expand the in-vestment landscape in South Africa for green products and allow everyone to invest in the future – environmental as well as fi nancial.”

and should, in the long run, outperform their peers. Back-testing of the index has shown that it can outperform the market, as it has done for the past three years – by more than 20%.

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FINANCEFINANCE

The persistent abuse, pollu-tion and over-exploitation of natural resources is pushing humankind closer and closer

to the brink of extinction. The predic-tions made in the WWF’s Living Planet Report 2010 are unsettling - at the current rate of consumption of natu-ral resources, mankind will need two planets by 2030 in order to sustain it-self. According to the report, humans are using thirty percent more resourc-es than is sustainable.

Half a century ago, most countries consumed within the limits of their ecological resources. Figures shows that, today, three-quarters of the world’s population live in countries where the inhabitants consume re-sources at a rate faster than they can be replenished. Moreo-ver, there is ongoing pol-lution of air and water, deforestation, degra-dation of arable soils and worrying de-clines in the num-bers of species of flora and fauna.

Humanity finds itself very much wanting, as in-creasing mod-ernisation sees more and more countries adopting wasteful, consump-tive habits. The ques-tion is: what happens to all the resources after consumption?

All activities that cater to human needs – which range from those in the home to the large-scale production within industries

SUSTAINABILITY

“Waste not, want not”, or so the adage goes. Yet, year after year, people carry

on regardless of the negative consequences their careless behaviour has for

our natural resources.

BY TERRY BOOYSEN AND SIMON GEAR

One planet, one chance...

– generate waste. There is an ever-growing demand for a variety of re-sources, including space to dispose of this waste. This is particularly true for the carbon dioxide that results from burning fossil fuels and the dumpsites that are increasingly being filled with discarded materials.

Due to the fact that humans have shown scant regard for the manner in which they use natural resources, there is an inevitable security threat as supply shows signs of failing to keep up with demand. The link be-tween environmental policy and secu-rity is undeniable. A lack of resources - be it as a result of overuse, pollution or wastefulness - will destabilise pop-ulations as people grow desperate to fulfil their basic need to survive.

If we faced an anarchist plot to poi-son water supplies or release poison into the air, there would, no doubt, be swift action in response. Sadly, a more subtle, but no less insidious, threat to environmental security is growing day

by day. Society continues to poison natural resources with pollution

and disposal of waste. Whilst scientists and environmen-

talists have raised this alarm for many years,

response and remedy from government, business and civil society has gener-ally been lacking in decisiveness.

We only have one planet and our actions need to be informed by the fact that we are

‘borrowing’ natu-ral resources from

future generations. We need to ensure

that we leave future gen-erations an earth that can

sustain them.Within this context, the South

African government has passed the National Environmental Management

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FINANCEFINANCE

Waste Act (Act 59 of 2008), or NEM-WA. NEMWA entrenches interna-tional waste management best prac-tice and espouses an environmentally responsible and sustainable approach.

It is one attempt to respond to the growing threat of contamination and dwindling resources. NEMWA follows the National Environmental Man-agement Act (Act 107 of 1998), or NEMA, which was developed to inte-grate environmental management on a nationwide scale.

NEMWA gives effect to the Consti-tutional right of all South Africans to an environment that is not harmful to their health. The key aspects of the new legislation include: • decreasing the consumption of natu-

ral resources • minimising waste generation • recycling • appropriate and sustainable waste

disposal • preventing pollution • promoting effective waste services • remedying land degradation • achieving an efficient integrated

waste-management reporting and planning regime.

The NEMWA provides comprehensive and integrated waste management legislation for waste throughout its life cycle.

Companies must be familiar, and compliant, with the legislation as NEMWA introduces criminal liability for directors and companies and an offender may receive a fine of up to

R10 million or imprisonment of up to 10 years for certain offences. Moreo-ver, directors need to ensure that their companies are compliant with this leg-islation or they risk being prosecuted

by the Department of Environmental Affairs’ Enforcement Directorate and its dedicated environmental team, known as the ‘Green Scorpions’.

As legislative requirements become more rigorous and the costs associ-ated with the treatment and disposal of waste increase, so more companies are becoming aware of the need to improve their waste management so-lutions. Additionally, the costs asso-ciated with the treatment or disposal of waste are on the rise, which in turn impacts upon a company’s financial performance. The private sector has to act on the need to have improved and integrated waste management systems in place, and waste generation must be examined and reduced in all phases of a product’s life cycle.

In line with the philosophy of ‘waste not, want not’; the issue of waste man-agement speaks to the efficient use of resources and a reduction in waste gen-eration. While the generation of waste can be limited, it cannot be avoided en-tirely. This may be seen as both a chal-lenge and an opportunity. Any compo-nent of waste, once it has been re-used, recycled and recovered, ceases to be waste. Companies may gain revenue by selling recyclables, and recycling is a way to extract value from the waste stream. The other benefits include

ABOUT THE AUTHORS

Terry Booysen is the CEO of the CGF Research Institute and Simon Gear is a Kijani Green Energy director

NEMWA gives effect to the Constitutional right of all South Africans to an environment that is not harmful to their health

creating opportunities for small, me-dium and micro enterprises (SMMEs) and, in the process, creating jobs.

The challenge around waste and waste management is therefore two-fold: reduce the amount of waste that is generated and, of the waste that remains, try to re-use it for another purpose. Waste management strate-gies need to be informed by sound environmental practises, as espoused in the King Report for Corporate Governance (King III). These prac-tises must be sustainable in the eco-nomic and environmental sense and will form a critical component of a company’s integrated reporting. The methods used need to promote the ef-fective use of valuable resources, sup-port the reduction of waste generation and encourage resource conservation and recovery.

The risk to human health and the degradation of the environment may be reduced through the implementa-tion of systems that help to prevent pollution and promote a cleaner, ‘greener’ environment. This will en-sure that the different types of waste are separated, that waste is collected regularly, transported and stored safe-ly, appropriately treated and – as a last resort – disposed of.

What remains to be seen is which companies will rise to combat this growing threat and play a more active role in effectively championing, as one key area, sustainable and integrated waste management.

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SHEQSHEQ

Tersia Booyzen asked a number of experts for their views on occupational health and safety (OHS) in the mining industry.

Th e panel consisted of Dorian Emmett, head of safety and sustainable develop-ment, Anglo American plc; Vaughn van der Merwe, group general manager, Safety Smart (Pty) Ltd; Michael Feldon, managing director, DoseTech (Pty) Ltd and Guy Kimble, managing director, Metrofi le (Pty) Ltd.

What do you consider to be the biggest health and safety risks in the mining industry? Emmett: Th ere are numerous health and safety challenges facing the indus-try – insuffi cient capacity building, lengthy and impractical standard op-erating procedures, lack of leadership and accountability at various levels, tu-berculosis, HIV/Aids and poor working and living conditions. All of these con-tribute in some way or another to poor health and safety performance. Howev-er, the issue that poses the biggest risk is the lack of stakeholder engagement and collaboration on best practice. Health and safety is a pre-competitive issue and we should be engaging openly and frankly among our peers.

It is unfortunate that some industry players still have a tendency to revert to a blame culture when incidents occur – management may blame labour, labour may blame government and govern-ment may blame management. While stakeholders are busy blaming one an-other, the same kind of fatalities con-tinue to occur and there is still a high number of mining employees being in-fected with HIV/Aids and TB.

Th ere is a mindset that ‘zero harm’ is not possible – this is one of the root causes of incidents as you cannot strive for something that you do not believe is achievable. Th e predominant attitude

that mining is a dangerous industry and we should therefore expect fa-talities to happen in the line of duty is seriously fl awed.

Relationships founded on mutual trust and genuine care and respect can go a long way towards achieving zero harm. It is for this reason that Anglo American is a partner in the Anglo American Tripartite Health and Safety Initiative – a collaborative eff ort be-tween the global mining company, the Department of Mineral Resources (DMR) and labour unions. Van der Merwe: Th e biggest health and safety risks in the mining indus-try are fall of ground, fi re, ventilation, foot and hand injuries and, of course, head injuries. Feldon: Complacency is by far the biggest risk. Kimble: Poor or non-existent records management, which mitigates the pos-sibility of instantaneous retrieval of records pertaining to mine workers on duty and relevant safety check reports during emergency situations. Should an accident occur, mining companies will need to prove that proper safety meas-ures were in place and provide critical information, such as which employees were involved, in order to mitigate legal and fi nancial ramifi cations.

Are there risks specific to South Africa or are these risks global? Emmett: Each operation – whether local or abroad – has its own unique risks. However, on our Tripartite study tour, during which we visited a number of local and international mining and industrial sites, we observed that there are risks that occur on a global scale. Some companies with far greater risks than the South African mining industry have excellent safety records.

In February this year, a small delega-tion from the International Federation

of Chemical, Energy, Mine and General Workers’ Unions (ICEM) shared their experiences of the Australian mining in-dustry’s challenges and, from these en-gagements, it was clear that, although they had possibly advanced further, there were defi nitely some challenges that were similar to ours. Van der Merwe: Th e risks are global. Kimble: Th e risks are global. Every mine in every country should ensure that they have eff ective records manage-ment systems in place in order to miti-gate legal and fi nancial repercussions.

How can these risks best be managed? Emmett: Th ere were a number of key learnings from the study tour that shaped our understanding of what ar-eas of focus should form part of our journey, including connectedness and relationship building, standards, belief and motivation, capacity building and contractor integration.

The Declared Future in turn saw the foundation of the initial four work streams – capacity building, stake-holder engagement, extended visible felt leadership (EVFL) and aligned ap-proach to standards. A fifth work stream, health and wellness, was added in January 2010. Van der Merwe: Risks can be man-aged by eff ective procedures and worker education. Feldon: Constant reminders about the risk. Kimble: Risks can be managed through the implementation of eff ec-tive and reliable records management processes and procedures, or a dedicat-ed records manager.

Do you think that zero harm in the workplace is an achievable target? Emmett: Zero harm is undoubtedly achievable and this is an area that An-glo American has, for a long time, been

Is ‘zero harm’ a pipe dream?ROUNDTABLE

Globally, mining has always been a high-risk industry, with one of the

highest injury and fatality rates, which seemingly increases concomitantly

with commodity prices.


SHEQSHEQ

28

concerned about. In fact, it is for this rea-son that safety is the fi rst guiding value by which we operate. We are of the belief that zero harm is attainable and that all injuries are preventable – by working to-gether, we can make safety a way of life, whether it be at home or at the workplace.

Secondly, enlightened leadership is im-portant in the process – the Tripartite was catalysed by the three most senior leaders in each sector: Anglo American chief exec-utive, Cynthia Carroll; president of NUM, Senzeni Zokwana and Buyelwa Sonjica, the then minister of minerals and en-ergy. By agreeing to work in partnership, they set the direction for engagement on how a more connected approach could be followed.

Th e third success factor is this concept of mutual control, with each Tripartite partner being jointly involved from day one, in terms of both planning and under-taking the fi rst summit and managing the outcomes and work streams that emerged from it. It is not an easy task to follow this process – it requires respect, maturity and cooperation from all stakeholders. Van der Merwe: In reality, due to the human factor, as well as the nature of the industry, zero harm in the mining industry is not 100% assured. However, a strong programme of education and the implementation of a well-thought-out ‘standard operating procedure’ will certainly reduce the inherent risk of this industry. Feldon: Yes, if you practise and preach zero, then zero is achievable Kimble: Not really, because mining as a profession is associated with many risks due to the very nature of the work, which involves travelling and working under the earth’s surface in abnormal conditions. However, keeping current records of all mine workers on duty and ensuring that regular safety checks are conducted and recorded can assist greatly in the event of an emergency situation. Th is assists in knowing which miners have been in-volved and can help narrow down the cause of the accident.

Who is responsible for health and safety compliance in an organisation? Emmett: For Anglo American, the health and safety challenges should be tackled jointly and collaboratively. Fur-thermore, the mining industry needs to go beyond compliance if it is to achieve its goal of zero harm. Van der Merwe: Line management,

SHE managers, individual workers, trade unions and the Department of Labour. Feldon: Individual workers. Kimble: Th e CEO.

Who should be held legally responsible for any workplace-related fatalities, injuries or health issues? Van der Merwe: Line management, SHE managers and individual workers. Feldon: Th e individual is responsible, but all other departments should also be held responsible if they have not ensured that the individual has all the tools, equip-ment and training to ensure that they do not get hurt. Kimble: Th e CEO.

Are there any specific products or services that you believe can make a marked difference to the health and safety of workers in the mining industry? Emmett: Th e Tripartite continually seeks opportunities to contribute to a healthier and safer workplace through the activities of the work streams.

Th e stakeholder engagement work stream has coordinated a number of engagement and awareness events, such as International Health and Safety Day, Transport Safety Day and World Aids Day – and, most recently, a Fight-ing Fatigue awareness workshop. Th e stakeholder engagement work stream is also looking into the process of cascad-ing tripartite activities to all levels of the organisation.

Th e Visible Felt Leadership (VFL) site visits, facilitated by the EVFL team, are an ideal way of connecting with the un-ion leaders, mine management and re-gional inspectorate at the operational level. Th e EVFL team has also developed a comprehensive VFL standard for Anglo American and a VFL toolkit has been pro-duced as a pocket-sized guide to be used at operations.

Th ere have also been eff orts from the Tripartite to entrench the belief that zero harm is possible through the capac-ity building programme called the Train-the-Trainer Zero Harm orientation pro-gramme aimed at safety representatives. Th is programme, which was designed to build on the industry accredited safety representatives’ programme focusing on knowledge and skills, addresses the ‘hearts and minds’ aspect of eff ective leadership in safety and that the leaders themselves require a profound belief in and commitment to zero harm. To date,

45 full-time occupational health and safety representatives and 2 890 safety representatives have been trained.

Operating standards have been a key focus of the aligned approach to stand-ards work stream that has developed a ‘standard for standards’ to help make standard operating procedures simple and practical. Th is team has also been concerned with fall of ground manage-ment and reviewing protocols around safe and timely withdrawals from unsafe working areas.

Th e newer work stream, health and wellness, has successfully completed a lo-cal study tour from which they have iden-tifi ed fi ve priority areas of focus – disease management’s occupational hygiene and exposure, rehabilitation, compensation and aftercare, living conditions and la-bour-sending areas. Th e team has devel-oped a set of key deliverables, short- and long-term, and is in the process of devel-oping clear action plans. Van der Merwe: Th ere are a mul-titude of products and services which could make a diff erence to the health and safety of workers in the mining industry; however, it must be borne in mind that many of these products/services are not cost-eff ective, as well as being diffi cult and ineffi cient to implement. Feldon: I was introduced to the ‘Loss prevention system’ by James D Bennett, which is a life-changing programme in which you are constantly asking yourself the simple questions, including loss pre-vention self-analysis and do I have the skill, knowledge and tools to do this task safely. Obviously, there is a lot involved to get this to work and it includes the CEO and extends to the coal face. Kimble: Local mining houses have various options for eff ective records management and storage, including the management of the original documents, which are indexed at fi le level and stored in archive boxes in purpose-built storage facilities. Th e advantage of storing the original documents is that the intrinsic value of the original is retained and, le-gally, it will be accepted as the best evi-dence available. Alternatively, mines can implement an electronic records man-agement (ERM) system where paper documents are converted to electronic format through a scanning process. ERM is becoming increasingly popular globally due to benefi ts such as ease of fi ling, ac-cess, sharing, instant retrieval and digital backup options.

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SHEQSHEQ

Protecting workers’ health is es-pecially important in high-risk tuberculosis (TB) areas such as living quarters and transport

vehicles such as buses, and appropriate measures can dramatically reduce the rates of morbidity and fatalities as a re-sult of TB infections.

Mine workers and clinic staff run a higher risk of contracting TB as a result of frequent and prolonged exposure to people with undiagnosed, untreated and potentially contagious TB disease. Th e rate of infection and recovery is further exacerbated by the fact that the HIV prevalence rate in TB cases is 44%.

“Ultraviolet germicidal irradiation (UVGI) is a proven and cost-eff ective means of killing off viruses and bacteria. More proactive institutions and compa-nies are investing in the UVGI systems as a means of dramatically reducing the spread of diseases, with clinical trials showing reductions of up to 99%,” ex-plains Hylton Cowie, commercial direc-tor of Technilamp, a leading supplier of UVGI systems to the mining and health-care sectors.

“Th e UVGI systems are eff ective against virtually all communicable vi-ruses and bacteria and are being de-ployed in a number of South African mines in the fi ght against TB in particu-lar. South Africa has the fourth highest epidemic of TB in the world after India, China and Indonesia, with disease rates double that of any other country in the world.” Cowie continues: “Th e only tech-nology inexpensive and eff ective enough to be considered for the purpose of dis-infecting airborne pathogens is UVGII. TB is transmitted by the airborne route caused by inhalation of infected airborne droplets produced by infected and undi-agnosed individuals while coughing and sneezing. Transmission of TB occurs in

situations where infected persons come into close contact with others, such as in hospital and clinic environments and overcrowded living and transport facili-ties such as in mine hostels, taxis and buses, correctional facilities and so on.”.

Exacerbating the problem in South-ern Africa is the fact that TB acts syn-ergistically with HIV and increases the risk of primary TB infection developing into the active disease by a hundred-fold. Th e seriousness of the situation is compounded by the emergence of new strains of multiple-drug-resistant TB (MDR-TB), with case fatality rates of up to 93% being recorded from MDR-TB. Th e ever-present potential for the transmission of MDR-TB to workers is very serious.

Th e reality of today’s modern lifestyle is that indoor air is much more polluted than outdoor air, and even more so in the winter months when closed win-dows and doors dramatically reduce ventilation. Indoor air is trapped, 80% re-circulated and full of contaminants such as bacteria and viruses.

“UVGI lamps are proving highly ef-fective in reducing the number of new infections as well as the rate of trans-mission. Placed in areas such as living

quarters, lifts, buses and mining com-munes, the use of UVGI is both an af-fordable and highly eff ective solution in the management of communicable diseases in high-risk environments,” says Hylton.

In a study by Dr Edward Nardel of the Harvard Medical School, compar-ing the effi cacy of fans, fi lters and rays in the fi ght against TB, he noted that health-care workers live in the corridors of hospitals, which are also important conduits of air and patients. Th e study concluded that the only technology inexpensive and potentially eff ective enough to be considered for the purpose of disinfecting air in corridors, waiting areas, emergency and isolation rooms is UVGI.

“Medical professionals have used ul-traviolet irradiation in operating thea-tres and general wards around the world since 1937. Clinical tests conducted in general wards proved that the overall in-fection rates declined by more than 78% with the introduction of UVGI. Th ese tests are in accordance with a study re-cently published that stated that ultra-violet lights could reduce the spread of TB in hospitals and waiting rooms by up to 70%,” concludes Cowie.

Ultraviolet germicidal irradiation annihilates TB

HEALTH

Mining houses need to take a proactive approach to managing risks that

threaten the health and well-being of workers, especially in the case of TB.


SHEQSHEQ

Most of South Africa’s elec-tricity is generated by ther-mal power stations fuelled by coal. Lethabo Power Sta-

tion is no exception and at peak opera-tion it burns 50 000 t of coal every day. Giant grinding mills pulverise the coal to a very fi ne powder, which will burn as quickly as gas.

Because Lethabo is supplied by the Free State coal fi elds, the coal is of a very low quality and leaves a huge amount of ash residue.

Almost 90% of the ash produced in the generation process is called fl y ash or pulverised fuel ash. Th e fl y ash is re-moved from the fl ue gas stream by means of electrostatic precipitators or bag fi l-ter systems. While the ash used to be stacked on dumps or in slurry damns, a much greener alternative has now seen the light.

Approximately 1.2 million tonnes of ash is sold per year for use by, among oth-ers, the cement industry. Ash Resources is one of the companies turning this envi-

ronmental waste into a viable product.

WASTE MANAGEMENT

Rising from the ashesOne man’s waste can, with a little innovative research and development,

become another’s profitable and environmentally friendly product.

At Lethabo, Ash Resource’s production process is fully integrated with the Eskom power plant. An air classifi er is used in the particle separation process to monitor the fi neness, quality and other specifi cations of the fl y ash. Daniel Pettersson, MD of Ash Resources, told us during a recent site visit that this classifi cation of the fl y ash is the key diff erentiator in its products from those of other suppliers. Approximately 95% of the fl y ash is used in the cement and concrete industry and the quality of the ce-ment isn’t compromised but enhanced.

The scienceFly ash is a pozzolan, which means it re-acts with water and lime liberated during cement hydration to form cementitious hydrates, helping to reduce permeability. Used as a partial replacement for cement, classifi ed fl y ash improves the properties of concrete both in its plastic (fresh) and hardened state.

Th e diff erence between fl y ash and cement is best seen under a microscope. Fly ash particles are predominantly spherical in shape, in contrast to cement

particles, which are angular. Th e spheri-cal shape enables fl y ash to fl ow and blend easily in a concrete mix.

Fly ash concrete is resistant to sulphate attack and chloride ingress. It also has a low heat of hydration, reducing the risk of thermal cr acking. Chemically, the same elements exist in fl y ash and cement; the major diff erence between the two is the relative quantities of the diff erent oxides.

Recent construction projects using fl y ash include Soccer City, the Gautrain, the Medupi and Kusile power stations, the De Hoop Dam and Grootegeluk Coal Mine. Th ere is also the potential to widen the market scope for fl y ash to include areas such as mine rehabilitation, waste stabi-lisation, agriculture, soil stabilisation and asphalt production.

Th e best news is that for every tonne of fl y ash used as a cementitious binder, a tonne of carbon emissions is saved. Th e current fi gure in terms of reduced equiva-lent tonnes of CO2 is 200 million tonnes per annum.

BELOW The conveyor belt that integrates the processes at Lethabo


SHEQSHEQ

34

ENVIRONMENT

Race against time to tackle AMDThe Department of Water Affairs is racing against the clock to put out tender

documents for the construction and upgrading of water treatment plants to

tackle acid mine drainage.

In a report-back to the National As-sembly’s Portfolio Committee on Water and Environmental Aff airs at the beginning of September, the de-

partment and the Trans-Caledon Tunnel Authority (TCTA) outlined several steps they have been taking to treat aff ected water that is now decanting from the Western Basin. Th ey also outlined what they have done to stop rising water in two other basins, which might reach the surface as early as August next year if ac-tion isn’t taken.

Th e department, through TCTA – which was given a directive by the min-ister of water aff airs, Edna Molewa, in April to tackle acid mine drainage (AMD) – was to start with an immediate solution for the Western Basin between November and December by upgrad-ing Rand Uranium’s existing treatment

plant so that the amount of treated wa-ter could be trebled to 36 Mℓ.

Rand Uranium has agreed to fund a third of the operating costs.

Once heavy metals are removed from the water and the acidity of the water lowered, the water will be discharged in the Tweelopiespruit.

But committee chairperson Johnny de Lange expressed concern that the depart-ment might not be able to meet its time-line of awarding tenders for the building or upgrading of treatment plants and pipes for the three basins, as any decision on awarding the contracts may have to go to Cabinet because the costs for the work will run into billions of rand.

Th e immediate costs of upgrading and constructing new sludge plants and lay-ing pipes for the three aff ected basins

will amount to R924 million, while a fur-ther R385 million per year will be needed to operate the four solutions, TCTA’s ex-ecutive manager of projects and imple-mentation, Johann Claassens, said.

A request for funding of R924 million has already been submitted by the de-partment to the National Treasury.

However, Claassens said that to speed things up, the agency will also request that Molewa exempt the agency from some of the requirements of the Nation-al Water Act, as the processes that need to be followed could take up to two years – time the country doesn’t have if it is to tackle AMD successfully.

BELOW Water treatment plants are needed yesterday

SHEQSHEQ

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Marius Keet, the department’s acting director of institutional establishment for Gauteng, said the TCTA concluded a due diligence review for all three ba-sins on 7 July and had conceptualised a short-term treatment for each basin. Th is included the setting up of high-den-sity sludge plants and pipelines.

He said the department has already engaged with several mines in the cen-tral basin that have expressed interest in using treated AMD water.

Th e department has also put in place a monitoring team to track AMD.

At the time the aff ected AMD water in the central basin was 415 m from the sur-face and is expected to reach the surface between August next year and March 2013. Aff ected water in the eastern ba-sin was 628 m from the surface and will reach the surface in December 2013.

Claassens said the plan to tackle AMD in the short term will see the TCTA sink-ing submersible pumps and concrete pipes into the three basins to stem the rising water.

Th e aim is to pump enough water out of the respective basins so that it is at a

safe distance below the surface, which is 165 m below the surface for the Western Basin, 186 m for the Central Basin and 290 m for the Eastern Basin.

Claassens said that to tackle AMD on the Western Basin, a new high-density sludge plant is expected to be commissioned in August next year in Randfontein East.

Th e plant is expected to process be-tween 25 and 30 Mℓ/d, which will re-duce the water to a safe depth by June 2013. Th e treated water will be piped to Tweelopiespruit, ensuring less seepage than the channel currently proposed for the immediate solution.

To deal with the impending threat of AMD on the Central Basin, a new high-density sludge plant will be commis-sioned by August next year, at the South West Vertical Shaft, with a capacity to process 84 Mℓ/d. Treated water will be piped to Eslburgspruit.

On the Eastern Basin, a new high-density sludge plant to be set up next to Grootvlei No 3 shaft – with treated water piped to the Blesbokspruit – is planned to come online in June 2014.

Keet said the department has rejected the WUC proposal because of concerns that any subsidy paid to an entity will raise audit concerns if it isn’t put out to tender.

He said the other problem is that be-tween 60 and 70% of the mining area on the Western Basin, to which Western Utilities Corporation’s proposal is fo-cused, is ownerless and could therefore raise concerns that the department is unfairly favouring the company, which is a subsidiary of Watermark Global.

De Lange also laid into a departmental offi cial for failing to renew directives that expired at the end of last year, which the department uses to hold mines respon-sible for AMD.

However, Keet said the challenge is that if the department issues mines with directives, they may refuse to assist the government in tackling AMD while the matter is brought to court.

He singled out a recent directive is-sued by the department against Mogale Gold over AMD, where, after receiving the directive, the mine stopped pumping aff ected water.

© 2011 Caterpillar Inc. All Rights Reserved. CAT, CATERPILLAR, their respective logos,“Caterpillar Yellow” and the POWER EDGE trade dress, as well as corporate and productidentity used herein, are trademarks of Caterpillar and may not be used without permission.


SHEQSHEQ

Coal as an energy source has negative environmental im-pacts associated with its pro-duction, such as acid mine

drainage (AMD), large footprint opera-tions aff ecting biodiversity and exten-sive consumption of Africa’s scarcest natural resource –water.

AMD is defi ned as the release of dis-solved metals into the environment as a result of sulphide minerals, typically iron pyrite, being exposed to the atmosphere and water eff ectively generating an acid-ic environment. Th e dissolved metallic oxides have a major negative impact on the environment and aquatic resources.

During coal mining and milling opera-tions, a large amount of coal fi nes (-150 micron material) are produced. Th e coal fi nes are unavoidable and form part of standard coal production operations. Until recently these fi nes could not be economically benefi ciated in South Af-rica and mining operations were forced to pump the fi nes to slimes dams. How-ever, only a small fraction of this acidic water can be re-circulated and reused in the plant, while the remaining water is evaporated and some spills into the surrounding environment.

In an eff ort to reduce the environ-mental impact associated with the pro-duction of coal, it becomes important

WASTE MANAGEMENT

New technology makes AMD payThe need for scarce The need for scarce

energy sources is just energy sources is just

as dependent on the as dependent on the

effective utilisation effective utilisation

of currently available of currently available

energy resources as it energy resources as it

is on the development is on the development

of new renewable of new renewable

energy sources. energy sources.

to apply technologies that can reduce or eliminate the negative consequences associated with coal production. A zero effl uent plant is the ultimate goal.

Zero effl uent means that an operation does not produce any water/slurry by-product. Th is can be achieved by fi lter-ing the fi nes produced, and the fi ltered product can then be discarded in an envi-ronmentally friendly method. Th e fi lter fi ltrate (clean water) stream can be re-circulated back to the plant, eff ectively creating a zero effl uent plant and elimi-nating the need for a slurry dam (and all the negative impacts associated with it).

At the 2011 South African Coal Pro-cessing Conference held in Secunda, South Africa, Environmental and Pro-cess Technologies (Enprotec) presented a paper titled ‘Coal Flotation: A Case Study of Dual Cell Performance’. Dur-ing the presentation a new technology, namely the Dual Cell, which is currently operational at Anglo Goedehoop Col-liery, was discussed in terms of process performance. Th e technology is based on the process of froth fl otation, which turns the fi ne waste material into a sale-able product by means of exploiting dif-ferences in mineral surface characteris-tics. Th e Dual Cell incorporates unique methods with regard to energy transfer, aeration and reagent dosage, to achieve

a high yield and extremely effi cient fl o-tation cell.

Th e performance investigation proved that up to 66 % of the waste stream is re-covered at a product quality of 28.2 MJ/kg, which is export quality. Th e product from the fl otation process is then fi ltered and blended with another coarse export product stream ready to be exported.

Th e major advantages that can be real-ised by employing this Dual Cell fl otation technology are:• Generating an income from a waste

stream previously discarded with asso-ciated direct operations cost, meaning double impact on the bottom line of the coal mine.

• Recovering a valuable energy source from a waste stream, and so im-proving the effi ciency of coal as an energy source.

• Eliminating the need for slimes dams so the risk associated with negative environmental impacts, such as AMD, dust, water pollution, impact on bio-diversity and groundwater contamina-tion are eliminated – no more AMD!

• Reducing the water consumption of the coal operation by up to 50%, so reducing the environmental footprint of the mine, saving on costs associated with water pumping and saving our scares natural resource (water).


HOT SEATHOT SEAT

38

When I saw that the Horne Group reported mid-year sales of R12 million to Canada’s mining sector,

my curiosity was stirred, to say the

HORNE GROUP

Locally engineered solutions for global conveyance safetyWhen Chinese companies import South African-designed and manufactured

products, you know that the quality and innovation must be exceptional. Tersia

Booyzen catches up with Horne Group’s management to discover how it’s done.

least. Upon contacting the company I learnt that this was the result of a focus by Barrie-based Canadian sub-sidiary, Horne Conveyance Safety, on selling the Levelok and Technogrid

product lines into the global market – with Canada being only the tip of the proverbial iceberg.

A conference call is promptly ar-ranged from Horne’s local HQ to Cana-da with André du Preez, group manag-ing director at Horne, Eric Bruggeman, consultant, and I on one side of the world and Mark Andersen and Steve Hill on the other side.

The technologyBefore we get down to global business, Du Preez and Bruggeman explain the technology that is taking the world’s mines by storm.

The Levelok system is used purely in deep mines and has cage, skip and emergency braking options that all counter the problems associated with rope stretch or failure during the load-ing or unloading of rock, men and ma-terial. The system basically comprises clamps and a power pack, which hold the conveyance steady during loading and unloading. The secret lies in the decompression system: after loading or unloading is complete, the rope stretch is taken up in a controlled manner.

The other product, Technogrid, is a strain energy device that absorbs the kinetic or potential energy of a mov-ing object by deforming a metal grid of known design and characteristics through a stroke deformation of pre-dictable value. It consists of a series of multi-bar units connected in a stag-gered grid shape. On impact, the grid bars will yield and deform under dou-ble curvature bending. The yielding of the bars allows the units to open up and

LEFT Horne Group managing director, André du Preez



HOT SEATHOT SEAT

39

stroke with the strain hardening of the material absorbing the impact energy.

Technogrid is used in the following applications:• Arresting a falling conveyor belt

counterweight• Arresting a conveyance in the event

of overwind• Stopping or preventing under-

ground track-bound equipment from falling down the shaft

• Controlling any impact of known value“The systems were originally designed by a hydraulics engineer with many years of experience in the South Afri-can mining industry. All the products are 100% South African, including the design, manufacturing, components, steel, labour, etc. There is not a sin-gle item that’s imported,” Du Preez says proudly.

Getting back to CanadaAndersen and Hill join the conversa-tion and elaborate on the R12 million Canadian sales, which include two group firsts.

At Vale Inco’s Totten Mine in On-tario, two Levelok systems, one for skip-clamping and one for cage-clamping, have been installed for the first time worldwide on a single mine shaft conveyance.

Du Preez explains that the Totten Mine installation involves a dual Lev-elok system that will allow a single conveyance to be clamped in position at multiple levels for the on- and off-floading of mine personnel, and the same conveyance to be clamped in po-sition at the single skip level.

“For use on a cage, the clamps are mounted on the conveyance to grip guide steelwork running vertically down the shaft. The clamps are ac-tivated by a power pack installed on the conveyance.

“Conversely, for skipping, during which ore is removed from a single level only, the clamps are mounted on the shaft steelwork and grip the con-veyance itself. They are activated by an electric pow-er pack installed at the skip level and

automatically controlled by the mine’s PLCs,” Du Preez explains.

At Rocanville Mine in Sas-katchewan, the first sale of Technogrid into a Canadian over-wind application has taken place against a competitive product priced at 70% be-low the Technogrid tag.

Regarding the over-wind Tech-nogrid, Du Preez says that although this particular installation was a first because of the application, there had been steady sales over the years of Technogrid into Canadian conveyor systems, where the product acts as a counterweight arrestor in the event of conveyor failure.

“This contrasts sharply with slow sales into the same market locally. In Canada, more than 250 units have been installed to arrest coun-terweights in the event of conveyor belt failure, whereas in South Af-rica less than 30 have been sold into this market,” he notes, and adds that these are by no means cheap systems and both successes can be attributed to the technical superiority of the products involved.

Global expansionAny country in the world that has deep mines is a potential client for Horne. In-terest has already been expressed from mining houses in South Africa, the rest of Africa, Inner Mongolia, Russia, the US, South America and Australia.

“South American countries such as Mexico, Ecuador, Argentina and Chile are moving away from surface or open-pit mining to deep-level mining for ecological reasons,” Bruggeman says.

“Most of Horne’s exports are through the Canadian office as Toronto has displaced Johannesburg over the past few decades as the mining capital of the world,” Hill notes. “Canada offers us a safe place to parachute out of and expand into the rest of the world.

There isn’t a problem mar-keting South Afri-can products to the rest of the world as there is generally a healthy respect for

the country’s mining expertise. The only exception is the US, where South Africa is downplayed as they can be insular and not understand the differ-ence between South Africa and the rest of Africa.”

“In large countries such as Canada and the US, the source is less rel-evant than the service,” Andersen adds. “Through our Canadian of-fice we can offer local service and back-up support.”

Du Preez explains that Horne has an agreement with FKC Lake Shore, a manufacturer of hoisting, elevator and vertical conveyance systems, to supply the necessary back-up support in North America. “Most of the mines don’t have the infrastructure to deal with individual suppliers; they look at turnkey solutions where a single sup-plier offers a total solution. Our part-nership with FKC has given us more credibility but it has given them a com-petitive edge in the marketplace, too.

“Horne Conveyance Safety is taking off and right now the boom in min-ing worldwide creates a global market. Safety is no longer a grudge purchase and at a mine in Inner Mongolia in China we were even asked for informa-tion on Nosa’s five-star rating. For the group as a whole, I estimate substan-tial growth in the local market and a further up-tick of export sales over the coming year.

“Our sales were R14 million in 2010 and in 2011 they should be R40 million; we’re looking at selling approximately 16 systems this year in the range of R500 000 to R15 million per system, depending on the requirements. We are expanding our factory in Spartan in line with the anticipated growth and might have to look at bigger premises soon,” Du Preez concludes.

Now we can only hope that the Sprinboks perform as well in their global onslaught!

Levelok power pack

LEFT Levelok clamp


Tel: +27 11 794 3644 • Fax: +27 11 794 3699Email: [email protected]

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Whatever the sorting requirement – we will have a solution.

IMPULELO TECHNOLOGIESMultiple Brands. One Mission.

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eliminates the need for upfront DMS (>5mm gravels)

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minerals makes this technology unique as its detection

methodology is superior to other available products as

only diamonds are extracted. All types of diamonds are

recovered, including Type IIa diamonds.

The “baby” in the diamond sorting product range is the highly portable POLUS-M and designed for exploration and single particle sorting applications.

Other available sorters includes XRT, base metals and optical sorting machines.

A variety of analyzers are also on o er and includes XRF, X-ray Wave Dispersion and Luminescent Intensity (LI) units.

Through partnering and association with International based companies; Impulelo Technologies now o ers the best available products in sorting technologies.


TECHNOLOGYTECHNOLOGY

41

Impulelo Technologies pioneered the introduction of Bourevestnik X-ray sorters from the Russian Federation to the local diamond mining industry

and launched a range of 14 Bourevestnik X-ray sorting models at the 2010 Electra Mining Africa exhibition.

Th e fi rst large-capacity sorter (LS-20-05-2N) from Bourevestnik was contain-erised and successfully tested over a three-month period at Letšeng Diamond Mine in Lesotho early this year. Every specifi cation of the sorter was verifi ed and tested to maximum levels. Excel-lent results were obtained and in some cases the specifi cations were found to be very moderate. Type IIa diamonds were found among those diamonds recovered during the test period.

Using a highly portable bench-top Bourevestnik sorter, a number of audits were performed on tailing dump gravels throughout South Africa and Botswana and rendered excellent results, with the most signifi cant factor being the ability of these sorters to recover Type IIa dia-monds. Th ese diamonds are diffi cult to recover with conventional X-ray sorters.

Trans Hex Group was the fi rst to buy a Bourevestnik sorter, fully containerised with all integrated services and ready for use on its Baken Mine operation on the West Coast. In total, fi ve such container-ised Bourevestnik sorters have been sold to local diamond mines since the launch 10 months ago. A number of feasibility studies are currently being performed by potential clients, with Bourevestnik sorters included in the designs.

Th e Bourevestnik sorting machines are designed to process wet diamond-bearing ore. Th e factors that make these products superior to current available diamond sorters are:

Th e ore throughput capability of the sorters eliminates the require-ment of upfront dense medium sepa-rators (DMSs), without compromising

Even when dumped, it’s a girl’s best friendWith the new technology incorporated into portable X-ray sorters you can

virtually drive from dump to dump across Africa and recover Type IIa diamonds.

diamond recovery effi ciency when pro-cessing -75 +5 mm diamond-bearing ore: a long-time ambition of metallurgists that will result in signifi cant process cost savings.

Most important is the discrimination technique used during ore processing. Th is technique makes use of the pulsed excitation of diamond luminescence and several criteria applied during the digital processing stage of the luminescent sig-nal, including peak and kinetic character-istic analysis, which allow for the highly eff ective identifi cation of diamonds over accompanying minerals. Th is enhanced selectivity technique therefore enables the recovery of diamonds only and lim-its the extraction of other problematic minerals that behave very similarly to diamonds when exposed to X-ray radia-tion. Th is in turn results in guaranteed throughput rates and recovery effi cien-cies of the sorters.

Th e discrimination techniques used in these X-ray sorters are the most effi cient seen so far in diamond sorting machines, since this technology has also proven to recover type IIa diamonds.

Th is groundbreaking technology from Bourevestnik, capable of sorting run-of-mine (ROM) ore directly, is central to Impulelo’s plans to off er the best available diamond sorting equipment to customers at aff ordable prices, while complement-ing its existing range of sorting machines.

Pieter Wolmarans, MD of Impulelo Technologies, says that a complete fi nal recovery system utilising Bourevestnic sorters off ers the best sorter productiv-ity per unit of fl oor area, to achieve sig-nifi cant opex and capex savings.

“Vested in these products are 50 years of research and optimisation of X-ray sorting equipment, rendering full ma-ture and industrialised products,” Wol-marans explains. “Impulelo engineers and technicians have received intensive training on the products.

“Th rough its association and partner-ing with local companies, Impulelo off ers a one-stop solution in containerised re-covery plants and conventional recovery plant systems,” he concludes.

BELOW The sorter can be seamlessly integrated into existing operations



Extensive tests undertaken by CommodasUltrasort, Coaltech, Isambane and Exxaro of Commo-dasUltrasort’s dual-energy X-ray

transmission (DE-XRT) sorter at Arnot Colliery have proven that X-ray sorting is a viable dry-process technique for the de-stoning of coarse raw coal, says Lütke von Ketelhodt, CommodasUltrasort South Africa’s general manager.

“We have shown that CommodasUltra-sort’s PRO Secondary XRT sorter is capa-ble of processing up to 150 t/h of coarse raw coal and eff ectively removing the bulk of the contaminant stone, resulting in a signifi cant improvement in the qual-ity of the coal. Th is means, inter alia, re-duced ash content, an improved abrasive index (AI) of the coal and reduced sulphur content,” elaborates von Ketelhodt.

He adds that Coaltech is currently in-vestigating technologies that can be used to benefi ciate dry coal and that the XRT sensor technology developed by Commo-dasUltrasort off ers signifi cant potential in this regard.

“Previous X-ray sorter tests conduct-ed at Mintek using the fi rst-generation X-tract 1200 belt sorting machine showed that the tech-nique was effective

The proof is in the puddingIt is easy to make unsubstantiated claims, but a revolutionary new coal sorting

technology has gotten a major boost from on-the-ground test results.

but that the throughput rate of the sorter was too low for application in coal pro-cessing. But at Arnot we have shown that our next-generation X-ray sorter, the PRO Secondary XRT, can process coal at acceptable throughput rates and is thus a viable option,” Von Ketelhodt says.

X-ray sorting of coal is a revolution-ary technology that is increasingly gain-ing ground over more conventional coal processing techniques. In conventional coal processing, the density diff erence between coal and shale or stone is used to separate the coal from the unwanted contaminants, while X-ray sorters are able to distinguish lighter coal from heav-ier minerals based on the diff erences in atomic density.

“In an X-ray sorter, coal is radiated with X-rays and the amount of radiation that passes through the coal is measured. More radiation is absorbed by stone than by coal

and hence it becomes possible to distin-guish between coal and shale using this technique,” Von Ketelhodt explains.

He adds that the technology employed to sort coal from shale requires that the coal be presented to the X-ray source on a particle-by-particle basis in order to allow each particle to be scanned and classifi ed as either coal or shale.

“Once the classifi cation has been made, if the particle is accepted as coal it is al-lowed to fall onto the product conveyor. If it is classifi ed as shale it is rejected by applying a pulse of compressed air that blows the particle over a divider onto the reject conveyor,” he says.

Coal is a high-tonnage business and for X-ray sorting to be viable in the coal

BELOW CommodasUltrasort’s PRO Secondary XRT unit and X-ray source


the industry when handling abrasive materials.

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processing industry, relatively high ton-nage rates must be made possible by the sorting equipment so it is only with the advent of modern high-speed computers that X-ray sorting of coal on a practical tonnage basis has become possible. In modern X-ray sorters, two X-ray sen-sors, measuring the radiation from a broad-band X-ray source at diff erent en-ergy levels, are applied. Th is technique, DE-XRT sorting, makes it possible to dif-ferentiate between coal and shale of dif-fering particle sizes.

From a practical perspective, the coal is presented to the sorter via a vibrat-ing feeder, which feeds it into a chute as a single particle layer. In the time taken for the coal to fall through approxi-mately 250 mm in the chute, the indi-vidual particles are scanned as they pass through the X-ray beam. Th e transmit-ted X-rays are detected using a line scan sensor and high- and low-energy images of each particle are constructed. At this stage the images are in shades of grey, being a function of the intensity of the transmitted energies from the high- and low-energy channels.

Next, an algorithm is applied to the images to convert them to colour-coded images where every pixel in the image of each particle is assigned a colour: red if the specifi c part of the image corresponds to a low-density zone or blue if it is a high-density zone. A calibration curve is then used to assign these pixel values, with the relative proportion of red and blue pixels in the image fi nally being used to classify the particle as either coal or reject, based on a pre-determined set of criteria.

Arnot Colliery testsTh e central test at Arnot was run on a production basis, with the CommodasUl-trasort’s PRO Secondary XRT sorting unit in operation for 12 hours per day. Th e aim of the operation was to supply cleaned coal to Arnot Power Station while prov-ing that DE-XRT sorting can be used for this purpose.

During the test, raw coal from the Mooifontein Opencast Mine was the primary coal used, but raw coals from other mines were also tested. Th e coal was crushed to nominally - 120 mm and was then screened at 30 mm. Th e coarse

coal was fed to the X-ray sorter while the fi nes were stockpiled separately and later mixed back with the clean coal from the sorter.

Th ree separate test series at diff erent ‘cut-point density’ settings, ‘high’, ‘me-dium’ and ‘low’, were run. On average, the results obtained showed that a raw coal with an average ash of 32.7% was reduced to 27% by the sorter, the ash content of the discard was high at 65.5% and the AI of the feed coal was high at 1 200 units, while the AI of the product was somewhat lower at 969. “Th e high AI (3 781 units) of the discard proves that the X-ray sorter is capable of removing very abrasive stone from the raw coal,” Von Ketelhodt says.

He adds that the results obtained from the Arnot test are signifi cant in terms of the potential of XRT sorting for coal mines. “We proved that our PRO Secondary XRT sorter is capable of processing up to 150 t/h of coarse raw coal and eff ectively removing the bulk of the contaminant stone in the raw coal. I believe this technology will become standard on all coal mines in Southern Africa,” he concludes.



A ccording to Osborn market-ing director, Martin Botha, the robust machine that can-not be kept down because it

is the best machine for the job - is the rotary breaker. “This product is coming back into favour in the coal industry because customers are, once again, rec-ognising its value and the fact that its simplicity makes it, quite simply, the machine of choice for this application.”

Bulk materials handling and miner-als processing specialist Osborn has seen rotary breaker orders increas-ing in the last year, with a number of machines sold in the past 12 months. “The rotary breaker has proved to be the most efficient machine for use in ‘dirty’ coal mining environments,” says Botha, explaining that ‘dirty’ refers to coal mining where there is a lot of rock in the run-of-mine material.

The come-back kidYou just can’t keep a good man or machine down and in mining it’s very

possible for a popular, hard-working, tried-and-tested classic to make

a comeback.

“The rotary breaker has the dual function of reducing the feed size, while, at the same time, removing some of the rock from the coal stream,” he states. “This is very important as the rock reduces the calorific value of the coal.”

Explaining the operating process of Osborn’s rotary breaker, Botha says that coal is continuously fed into the breaker feed chute and is repeatedly raised by lifters and dropped until it is broken to size and falls through the grids or screen plates. Large harder pieces, mainly rocks, are dis-charged through the outlet end by a scoop assembly.

The company supplies two types of rotary breakers: the Osborn unit with chain drive and the Hadfields unit driven by conventional girth gear and pinion, as used on grinding mills.

“Whichever model a customer chooses, however, they can be as-sured that all Osborn rotary breakers are robustly constructed for 24-hour operation,” he stresses. “The break-ers are supported on four steel rollers with alloy steel tyres, which ensure maximum life and trouble-free opera-tion. Screen plates can be cast with cir-cular holes or the Hadfields patented fabricated type, manufactured from a variety of abrasion resistant materi-als. These fabricated plates give maxi-mum open area, high impact and coal breaking efficiency.”

Th e Osborn Rotary Breaker’s drive unit is manufactured in three diff erent diameters, with approximate through-puts ranging from 500 to 1 600 tph. Dust housings are supplied with all units.

BELOW The Osborn rotary beaker



Refl ecting the growing demand for its new locally designed and built modular crushing and screening plants, Johannesburg-

based Osborn has secured an order for a modular primary crushing tip that will be employed in the tough platinum industry, reports marketing director Martin Botha.

“Customers are increasingly seeking equipment that is easier to transport, and our new plants off er an aff ordable solution that fi ts this bill,” he says. A further order – for a modular primary crushing plant for a Lesotho diamond mine – is in the pipeline, while Botha adds that a number of secondary crush-ing and screening plants have also been sold since the company launched this modular off ering last year.

“Our aim is to have these plants avail-able to buy ‘off the shelf ’, but they are selling so quickly we haven’t been able to build up stock. Most of the plants we

Multotec’s polyurethane Sad-dle Top screen frame system has evolved rapidly from an initial innovative design

that made it possible to replace only the

You couldn’t hear a pin dropA revolutionary pinless screen panel fastening system is gaining worldwide interest.

screen panel fastening holes on conven-tional runners – instead of replacing the complete runner – to a unique and revo-lutionary pinless panel fastening system that is growing in demand worldwide.

The Multotec P3 pinless fasten-ing system, the third-generation of-fering in the company’s Saddle Top range and the result of ongoing panel design innovation, allows quick and

The money or the boxModular crushing and screening plants are becoming increasingly popular throughout Africa owing to the affordability and ease of use of these plug-and-play kits.

manufacture are sold before they are even fi nished.”

He adds that the modular plants are ideal for plant expansion. “All that a cus-tomer needs to do is put down a concrete slab, unpack their new modular plant, and their expansion is done. Th ey imme-diately have the desired capacity.”

Although they are not mobile, the plants are easily transportable. Dubbed Osborn’s ‘Kit in a Box’, three options are available: the modular jaw crushing plant, modular cone crushing plant and modular screening plant. Diff erent jaw crusher models are off ered, including small jaw crushers for smaller plants.

Th e components are broken down to fi t into two standard 40 ft (12 m) open-top shipping containers, with enough space for some spare parts, Botha ex-plains. “Th ey can be easily transported anywhere in the world and only a mobile crane is required for onsite erection. Th is

is essentially a ‘plug-and-play’ plant,” he quips. Th e ‘kit’ comes complete with modular conveyors, all electrics, all fas-teners and a service manual for the ma-chines. All the standard equipment is supported by Osborn’s 24/7/365 service and spares are readily available from Os-born’s Elandsfontein facility, he adds.

Botha notes that Osborn’s off ering is robust and long wearing. “We try to re-main on the heavier side of equipment supply. We have built our plants for strength and longevity. Th ey are per-fectly suited to the most arduous ap-plications – including platinum ore and truck dump material. Th ey are also safe and serviceable, with improved access for servicing the units.”

“Th e modular plant is fast becom-ing a sought-after addition to Osborn’s line-up of tough, high-quality machines, which includes apron feeders, screens and an expansive range of crushers for the mining and quarrying industries,” Botha concludes.

BELOW LEFT Osborn modular screening plant

BELOW RIGHT Osborn modular jaw crusher plant


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Mine-Wall presents a quality high impact mPVC pressure pipe range designed specifically for underground applications in mining. Our commitment to quality and safety ensures that Mine-Wall is designed to adhere to best practice and stringent safety standards, and consistently provides optimum performance under demanding mining conditions.

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simple panel maintenance, but also significantly reduces the wear of the rail system.

Multotec P3 has evolved from the original round pin and sleeve approach to the H-pins and H-sleeves that deliv-ered superior downward forces to hold panels together, and then to the H-system pinless fastening. This system builds on the H-sleeve concept and is compatible with existing tooling. It delivers effective hold-down forces and offers optimised installation and removal capabilities.

“Wear is reduced to such an extent that rail systems incorporating our pinless fastening system can last up

to five years, an achieve-ment previously

unheard of in the indus-try,” Multo-

t e c ’ s

Anthony Yell says. “Although the initial investment in this proprietary system is more than that for conventional systems, the savings achieved in the long term greatly offset this outlay. The P3 com-bines all the benefits of the established Multotec Saddle Top system, including replace-able screen support surfaces, quick change-outs and interchangeability between existing and traditional fas-tening systems.”

With the P3 system, only the panel and compatible saddle are required to fasten the screen to the deck. Fewer operations ensure more ef-ficient maintenance and im-proved operator safety.

“The P3 system ensures re-liable operations in the field, building on the benefits of the established H-Pinning system,

whereby adjacent panels are locked together to prevent gaps forming

between panels,” Yell says. “This prevents the intrusion of dam-aging particles.”All Multotec mod-

ular 305 mm square panels are compatible

with P3 pinning. The full range of apertures is avail-

able in Hi-Flow and standard configurations. Panels can be manu-factured with skid bars, retarder bars, weir bars and deflectors.

Th e Multotec Saddle Top rail system is an en-

gineered system that is purpose designed

to suit the spe-cifi c screening

machine and s c r e e n i n g a p p l i c a t i o n

in question .

The Multotec P3 panel with the Saddle Top rail system



In August, global mineral processing equipment manufacturer Ludowici offi cially announced its acquisition of leading South African screening

media manufacturer Meshcape, as part of the company’s overall commitment to serving the African market better.

David Sibley, previously MD of Mesh-cape and now MD of the newly created Ludowici Meshcape, says the company decided to retain the name Meshcape due to its excellent reputation in the marketplace. “Meshcape is well estab-lished across Africa and is known for the quality of its products, while Ludowici is known as a very innovative brand global-ly. Ludowici wanted to expand into Afri-ca and Meshcape was a very good vehicle.

“Meshcape’s range of screening media perfectly complements Ludowici’s in-ternationally recognised line of mineral processing equipment. Th e acquisition will enable both companies to expand

their overall product of-fering, while improv-ing responsiveness to customers’ needs,” he says.

Th e Ludowici Group’s cur-

rent turn-over in

Size countsWhether your

calculations are based

on microns or millions,

Ludowici Meshcape

is convinced it will

measure up.

Africa is around R65 million per annum and with the acquisition of Meshcape, this is expected to increase to R210 mil-lion per annum.

It therefore comes as no surprise when Ludowici Africa’s general manager, Fanie Swart, stresses that the current Mesh-cape business model will not be modifi ed as a result of the acquisition.

Sibley notes that the Ludowici acqui-sition will bring signifi cant capital in-vestment to Meshcape, in addition to advanced technology and internation-ally renowned expertise. “Ludowici has a global footprint and support structure, with worldwide revenue of more than A$220 million (R1.59 billion). Invest-ment from an internationally recognised and listed company will ensure that Lu-dowici Meshcape has access to increased capital for expansion,” he continues.

Swart points out that Meshcape was chosen as the ideal investment for Lu-dowici as the company’s products are recognised as the best in the country. “Th e Meshcape range of screening media is not marketed solely on pricing, but rather process effi ciency and consistency of quality. Ludowici Meshcape will ben-efi t the African markets by being able to provide process equipment in its entirety

– without having to rely on other suppli-ers – supplying superior-designed and engineered products at competitive pric-es. Th is will provide better process value for money for clients, in addition to pro-viding increased support to local manu-facturers,” he explains. “What’s more, the new entity will benefi t from a reduction in overhead costs as both companies will operate under one roof.”

Ludowici manufactures four main product ranges, namely: vibrating equip-ment such as screening machinery used to sort mined materials, mineral process-ing equipment such as centrifuges, refl ux classifi ers and cyclones, engineering con-sumable products such as ceramic wear materials and pneumatic and hydraulic seals, which are manufactured from rub-ber and polyurethane materials.

Swart continues: “At present, the most recognised Ludowici products in the local market are the centrifuges and feeders – which are predominantly used in the coal mining sector. Meshcape’s ranges of screening products serve as the ideal add on to these products, thereby off ering a complete and comprehensive all-in-one solution to the client.”

It is envisaged that, in addition to the manufacturing of screening media prod-ucts, including woven wire mesh, woven screens, wire conveyor belts, perforated material and polyurethane screens, the company will add the manufacturing of a complete range of vibrating screening machines to its South African operations.

“Th is is an exciting time for Ludo-wici Meshcape, which now forms part of a well-respected global company that provides equipment and services to the mining and general industries,” Sib-ley concludes.

their overall product of-fering, while improv-ing responsiveness tocustomers’ needs,”he says.

Th e LudowiciGroup’s cur-

rent turn-over in

ABOVE Fabrication of engineered products - size no problem

LEFT David Sibley, MD of Ludowici Meshcape

BELOW Fanie Swarth, general manager of Ludowici Africa

ULTIMATEBENEFICIATION

Haver & Boecker recently intro-duced the Niagara T-Class® with a newly designed drive system, off ering more am-

plitude/rotational speed combinations than before. Th is in turn allows for small cut sizes, as well as diffi cult classifying jobs with large cut sizes, to be realised.

Th e machine is also equipped with a newly developed wear-protection sys-tem that decreases the replacement time of worn elements, in this way reducing downtime.

Within the scope of the Niagara T-Class concept, screening machines with widths starting at 2.4 m were built in the fi rst phase of development. Since the introduction of a time and cost-saving modular construction system, machines with screen decks of almost twice the width (i.e. up to 4.2 m) can be built at the plant in Münster.

A recently built 3.5-deck model D180 3000 x 7200 machine of this type was sold to German engineering and plant designer Hazemag in Dülmen. It sepa-rates 450 t/h of limestone at 25/15/8 and 4 mm. Th e dimensions of this screening machine are 3 x 7.2 m, the to-tal screening surface amounts to 72 m² and it weighs about 25 000 kg.

A drive for innovationJust because it isn’t necessary to reinvent the

wheel doesn’t mean we should be content with

two rocks stuck on either side of a tree trunk.

In order to achieve the throughput and cut sizes requested by the customer, the Niagara T-Class is equipped with two shaft and bearing sets and powered by a 75 kW drive unit. Th e screening machine is easy to access and maintain, as the screen deck spacing is generously dimen-sioned, which provides ideal working conditions for the operating personnel.

Th e screen frame of the HSG machines is engineered in a traverse design. Th e deck structure is clamped onto the frame with a patented retaining bracket and without welded seams. Th e brackets form the mounting area for the screen panel support system and through the posi-tioning of the brackets the spacing of the longitudinal supports can be varied.

Th anks to bracket shapes with hori-zontal and vertical mounting areas, this concept can be applied equally well to modular or side- or end-tensioned screen media. At the same time, these brackets also support a newly developed wear protection system (Haver Snap Guard) of modular structure and that al-lows easy replacement.

ABOVE The HAVER & BOECKER team with a NIAGARA T-Class

screening machine built at the plant in Muenster, Germany

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CETERUM CENSEOCETERUM CENSEO

of people claim when I ask this question. It was Ashanti Gold and an African was at the helm – and Sam E. Jonah KBE was not trying to beat freebies out of mining companies, he got there by sheer hard work and tenacity.

In my opinion, Kusukuwere is doing his country-men a disservice by effectively implying that Zimbabweans are not capable of competing on an even playing field. It is easy to be all poor together – I would rather we all work at being better off together!

The indigenisation circus in Zimbabwe is still in full swing. The week before the Zimbabwe Mining Indaba, our man the Minister of Indigenisation, Empowerment and Youth Development, Saviour Kasukuwere, of the former ruling party Zanu PF, told Zimplats bosses that their operating licence had been withdrawn because their

indigenisation plans had been “rejected”.

Meanwhile, mines minister, Obert Mpofu, said his department has “no intention” of canceling mining licences in connection with ongoing negotiations between the government and

BY WILLEM SMUTS

Anglo American 29Appropriate Process Technology 17Barloworld 36Bavaria Safety Footwear 52, IBCBell Equipment 49BME 15C3 Shared Services (Pty) Ltd OFC, 4-5Commodas Ultrasort 35Dosetech 26Horne SA 38-39Impulelo Technologies 40Komatsu Southern Africa 24Ludowici Meshcape IFCMarley Pipe Systems 47Metrofile Holdings 30Metso Minerals 43Osborn Engineered Products SA (Pty) Ltd 45SB Media (Mining Indaba) 2Schneider Electric 7Technilamp 32Transnet Freight Rail ex Spoornet 11Weir Minerals OBCZest 21

INDEX TO ADVERTISERS

Africa is still not for sissies! mining companies over the implementation of the indigenisation law. He insisted that negotiations are ongoing with some parties and that no licence has been cancelled.

On the sunny side of the street I have personally seen more than one approved ‘certificate of indigenisation’ that makes

a lot of business sense without squeezing the living daylights out of the companies involved - clearly it can work.

Light a candle with your neighbours perhaps?The drums bring news that Zimbabwe is seeking to reform its diamond mining policy and establish an official diamond exploration company. Newswires quoted President Robert Mugabe as saying that work has already begun on legislation to found the Zimbabwe Mining Exploration Company (ZMEC), which is intended to be a joint venture between the public and private sectors, and said that the government was already attempting to recruit partners and investors. A good place to go take advice on this might just be Botswana or Namibia?

In terms of real practicalities, the government has reportedly

put out a very large multi-million dollar tender for airborne electromagnetic exploration in eastern Zimbabwe. Any such project would include the Marange diamond fields as well as diamond deposits in the Masvingo province and in northern Zimbabwe – now this is seriously overdue and a great step in the right direction! Spending money on these kinds of activities will ensure it comes back in multiples to government through renewed exploration efforts and results. Of course it also means that you have to issue exploration companies their licences so they can get on with what they do best.

Lest we forget … from shovel boy to CEOThe first African gold company that successfully listed on the New York stock exchange was not from the ‘South’, as 99%

The drums bring news that Zimbabwe is seeking to reform its diamond mining policy

President Robert Mugabe of Zimbabwe

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Inside Mining Sep/Oct 2011

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Transcript of Inside Mining Sep/Oct 2011