Inisde Mining October 2012

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ISSN 1999-8872 • R35.00 (incl. VAT) • Vol. 5 • No. 10 • October 2012

PRECIOUS METALSPan African announces

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ON THE COVERMEDIA

Highly commended 2011 PICA Cover of the Year - B2B Publishing

www.miningne.ws

SRK chairman, Roger Dixon, is proud to sell a global brand

ISSN 1999-8872 • R35.00 (incl. VAT) • Vol. 5 • No. 10 • October 2012

PRECIOUS METALSPan African announces

strong results

GOLDVillage Main spots

under-valued assets

MineRP

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 SF R O M T H E I N D U S T R Y E X P E R T S F R O M T H E I N D U S T R Y E X P E R T S

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October 2012October 2012CONTENTSMineRP has announced the long-anticipated transaction that will see the company position itself as the premier provider of integrated mining technical solutions to the global mining industry

P6P6

10

12

25

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1Ins ide Mining 10 /2012

EDITOR’S COMMENT33 “Boom and doom” in mining?

MINING NEWS44 The top mining stories headlining this month

HOT SEAT

1010 SRK – selling a global brand known for its integrity and quality

PGMS AND GOLD1414 Lesego Platinum – a world-class asset in the making

1616 Blyvoor’s turnaround – a terrifi c start

2020 Pan African Resources announces excellent results

2323 Implats’ sustainable keys

2525 Tharisa defi es the economic climate

EXPLORATION2828 Botswana – the Tsodilo Phase 1 exploration drill

programme

DEEP LEVEL MINING3030 TWP – the challenges of deep-level mining

INFORMATION AND COMMUNICATION TECHNOLOGY

3535 Improving safety, productivity and effi ciency in underground mining

3737 NSSLGlobal – Satellite communication, from exploration to full production

PANEL DISCUSSION3838 Adroit introduces bulk material handling system

3939 DataSaint – Gilbert McCaul – projects manager

MINERALS PROCESSING4040 Multotech – mobile spiral plant attracts growing

interest

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Editor’s comment

There has been a lot of “boom and doom” talk in the mining industry lately. If what international mining commentators say is true, then growth among the large players in the inter-national mining arena seems to have slowed down somewhat and it looks as if the sector is busy ad-justing itself to the new market conditions. Howev-er, junior miners in the international market seem to be making use of new opportunities with some showing exceptional growth. While the mining in-dustry is not totally unaff ected by the global fi nan-cial crisis and talk of another “recession”, there is still a healthy demand for natural resources from strong growing economies like China and India. Be-ing a continent blessed with an abundance of these much sought after natural resources, Africa is, in the view of various mining commentators, fast be-coming a global growth point with big international mining companies operating in most parts of the African continent.

In the case of South Africa, however, strikes of all types – unprotected, protected, wildcat, trucking, automotive… you name it – have been dominating the news since the preamble to Marikana and have aff ected the economy and us all to a greater or less-er extent. Whether or not there are good reasons

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Global mining industry is readjusting itself

“BOOM AND DOOM” IN MINING?

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behind them, most become violent with disastrous eff ects in terms of loss of life, injury, damage to pri-vate and public property, hardship for mine work-ers and their families who do not receive any in-come, intimidation of workers who are prepared to work in order to put food on the table and care for their families, labour unions at each other’s throats, mine management and their representatives failing to respond eff ectively, and bureaucrats and politi-cians pointing fi ngers at each other. Strikes have become viral and contagious, spreading from one industry to the next and making headlines in the local and international media.

Th e bottom line is: strikes are hurting brand South Africa. Th ey are hurting our economy, our country’s fi nancial and social reputation and, in the end, each and every one of us. Ostrich politics does not work. Mine workers, mine management, labour unions and government must reach an agreement – sooner rather than later – before the labour un-rest becomes an all-devouring monster that can no longer be contained.

Electra Mining 2012 has come and gone. More than 800 mining supply companies big and small, from all parts of the world, were there to showcase their new products, services and technologies in an exhibition space of about 36 000 m2. Exhibitors entertained visitors to the show with new product launches, live demonstrations, interactive product displays and the latest in supplies, machinery and equipment. As a fi rst time mining visitor comment-ed after the show: “It is abundantly clear that tech-nology can be integrated into virtually all aspects of the mining industry. I was amazed by all the hi-tech solutions on off er.” According to the organisers, Specialised Exhibitions, the number of visitors at 38 296 over the fi ve days of the show was signifi -cantly up from the 34 836 fi gure of 2010. Now we can all start planning for the next show, which will be held at Nasrec from 15 to 19 September in two years’ time.

Hans Alink

Ins ide Mining 10 /2012

compiled by Ameerah Griffin

4

The top mining stories making the news in the past month

Mining newswww.miningne.ws

| SOUTH AFRICA | Wescoal announces new CEOSource: www.miningne.ws

Dutch Botes has been named as the new CEO of Wescoal Mining. The appointment comes as the company aligns its strategy to expand its mining capabilities.

Botes is a qualifi ed mining‚ electrical and mechanical engi-neer who has over 34 years of experience in the mining sector. He previously held the position of CEO at Umcebo Mining‚ a junior coal mining house, where he successfully brought a total of six new coal mines into produc-tion, including an underground operation at Klippan Colliery.

Before his tenure at Umcebo Mining‚ Botes was general man-ager at various BHP Billiton Ener-gy Coal South Africa operations, including Middelburg mines‚ Khutala Colliery‚ Optimum Col-liery‚ Koornfontein Mines and Delmas Colliery.

| AFRICA |

Kaboko Mining secures strategic Zambian licenceSource: www.miningne.ws

Kaboko Mining has secured a joint venture (JV) agreement for an initial 51% interest in the Rockstone Manganese Project.

The JV is a large-scale prospect-ing licence 120 km north of the company’s Peco Manganese Project in Zambia.

The acquisition is a strategi-cally important and signifi cant addition to Kaboko’s existing Zambian manganese projects,

given recent technical results and a broader geological un-derstanding at the Peco Project, which is forecast to become a primary production and process-ing location.

The company has also secured a AUD$1 million [Australian dol-lars] (R8.66 million) debt facility with Perth-based investment group Celtic Capital, to fund fur-ther exploration and complete reverse circulation drilling at its Emmanuel and Peco Projects.

| AUSTRALIA |

Anglo American cuts coking coal outputSource: www.miningne.ws

Anglo American has announced plans to reduce its coking coal output in the coming months, the miner’s coking coal chief executive, Seamus French said, warning that industry-wide cuts would continue.

Coal producers have raised concerns over the profi tability of the sector in recent months as prices have slumped, particularly in Australia, where the country’s resources minister, Martin Fergu-son, said the nation risked miss-ing out on billions of dollars of new projects due to high costs.

French said: “We are going through a planning process where we will adjust to the mar-ket conditions and, in the short term, we will cut back.

“It’s times like these that re-ally are the right opportunity to re-evaluate things,” French stated, adding that the market had become over-supplied after strong prices at the start of last

year encouraged miners to ramp up production.

French said cuts would be made on a case-by-case basis in its operations, concluding that any decisions were likely to come in the next few months.

| EUROPE |

Lundin Mining cancels acquisition of Spanish copper mineSource: www.miningne.ws

Lundin Mining has announced that the company will not exer-cise its option to buy a stake in the Touro copper mine in north-ern Spain.

The reason for this decision is that the company believes that

it will not receive returns from the project.

President and CEO, Paul Coni-bear said: “Despite the diligent eff orts of our team and the co-operation of the authorities, the local community and the owners of the project, we unfortunately are not able to progress with the Touro project.”

Lundin Mining announced in April it had signed a deal with two Spanish companies for an option to buy an 80% stake for €60 million (R658.5 million).

Lundin Mining has operations in Portugal, Sweden, Spain and Ireland, and an equity stake in the Tenke Fungurume copper and cobalt mine in the Demo-cratic Republic of the Congo. The

ASIA Newmont cuts Indonesia copper, gold mine output forecast

Source: www.miningne.ws

Newmont Mining has revised down 2012 target production fi gures for its Indonesian mine to 71 000 ozunces of gold from 114 000 ounc-es previously.

Annual copper output from the Batu Hijau mine on Sumbawa Island is now expected to be 170.6 million pounds, from an earlier forecast of 192 million, said spokesman Rubi Purnomo.

The lower forecasts come as Newmont processes lower grade ore from stockpiles in preparation for a new phase of mining at the vast opencast in the mountains of Sumbawa. Production in the fi rst six months of this year has been about 90 million pounds of copper and 40 000 ounces of gold, said Ian McGaffi n, the mine’s general manager.

Newmont has already fl agged that its 2012 attributable Indonesian output is expected to be signifi cantly lower, a factor that led the Colorado-based fi rm to post a 30% drop in second quarter profi t.

Mining news

company produces copper, zinc, lead and nickel.

| SOUTH AMERICA |

Pan Pacific Copper to acquire 40% of South America copper mineSource: www.miningne.ws

Pan Pacifi c Copper has an-nounced that the company will purchase 40% of a large South American mine. The Japanese-owned Pan Pacifi c, which has Ja-pan’s largest smelter, will purchase the mine from the Japanese gov-ernment. The massive mine is located across Argentina and Chile in a region called Frontera that spans across 60 000 acres. The mine is expected to have an estimated output of 150 000 t (165 347 tons) a year.

Once the acquisition is fi nalised, it is expected to be one of the largest copper mine stakes held by a Japanese company.

NORTH AMERICA Strike Energy will begin fracking in the US

Source: www.miningne.ws

Strike Energy says it will begin a 21-stage fracture stimulation programme in Texas, United States.

The Eagle Landing joint ven-ture (JV) with Strike Energy, which holds a 27.5% stake in the JV, is a 151.3 km2 project located within the northern Lavaca and southern Fayette counties in Texas.

The JV began in September at the Eagle Ford shale project. Four Texas-based companies hold the remaining interests in the ven-ture. The fracking programme is scheduled to start at the pro-ject’s fi rst production test well, Bigham 1H.

Upon completion of the frack-ing operations, the partners plan to carry out cement plug drill-out and fl ow-back op-erations. Production testing is

expected to start once the well has cleaned up.

The Bigham 1H well was drilled about 5 400 m deep, with a 157 m horizontal section drilled and cased in the Up-per Eagle Ford formation. The

Eagle Landing JV has identifi ed more than 300 potential drill-ing sites within the Eagle Ford gas-condensate fairway and has estimated a potential resource equivalent to 135 million to 165 million barrels of oil.


Further to the cautionary announce-ments published to the general public earlier this year, South Afri-can ICT fi rm Gijima’s shareholders

were advised at the end of September that MineRP has entered into agreements with a consortium led by RMB Corvest, Shalamuka Capital, Hasso Plattner Ventures Africa and a representative management committee from the MineRP business, in terms of which the consortium will purchase the MineRP business from Gijima. Th e conclusion of the transaction is subject to certain conditions, which have been set out on the websites of both Gijima and MineRP. Th e entire transac-tion should be fi nalised and signed by No-vember,” says Nel.

Reason for the transactionTh e MineRP businesses have historically attained a position among the top mining technical systems providers worldwide. Th is market has seen signifi cant growth over the past years as opportunities for market con-solidation were identifi ed by large corporates and companies were able to invest in various expansion initiatives.

In the recent past, it has become evi-dent that MineRP requires similar levels of investment to achieve its various glob-al growth objectives. As the business of MineRP is essentially non-core to Gijima, the required investment was not sanctioned, and for this reason, Gijima has taken a view that in order to set MineRP on its own growth trajectory, it should be sold to investors that would adequately invest in its strategy.

“MineRP is not 100% fi t for Gijima as we only make out 10% of the company’s busi-ness,” explains Nel. “Our business requires investment, especially if we want to see in-ternational growth. Th e consortium of new

owners believe in our strategy and want to support us to grow the business and support the mining industry on a higher level than what we have been doing up to now.

“Also, unlike MineRP, Gijima focuses more on the South African market, while the min-ing industry is global. Although the local mining industry remains highly important to us, we need to grow our business inter-nationally, for which a lot of investment is needed. We are busy opening offi ces in Accra, Ghana, and in Tanzania, East Africa, to have a greater presence in sub-Saharan Africa, and are also establishing a presence in Lima, Peru, and in Brazil and Indonesia.

“Furthermore, MineRP needs capital to in-vest in the continued R&D of its products.

Th e mining industry will benefi t from this, both locally and internationally. Th e South African mining environment is changing. A greater selection of software solutions that have been tried and tested in the internation-al market is now being used, and a depend-able integration partner is required to make this new world work.”

The consortiumTh e parties to the consortium acquiring Min-eRP have been carefully selected and will in-dividually and collectively contribute signifi -cantly to the future success of the business.RMB Corvest is a South African private equity

MINING TECHNICAL SOFTWARE AND CONSULTING

MineRP Goes Global

company and a member of the First Rand Group. Th e company participates predomi-nantly in management buyouts and buy-ins, leveraged buyouts and BEE transactions in-volving businesses with a value of between R50 million and R1 billion. Th e company also invests in established, well-managed, me-dium-sized busi-nesses with a prov-en track record of solid performance. Its mission is to be a guiding force and strategic partner in the fi nancing of selective trans-actions, always

seeking to yield maximum returns for each party involved.

To the initiated in the technology industry, the name Hasso Plattner is very meaning-ful. Hasso Plattner Ventures Africa, based in Cape Town, South Africa, is the largest technology-focused venture capital fund in Africa, with most of its capital committed by SAP co-founder and chairman, Prof Dr Has-so Plattner. Hasso Plattner Ventures Africa turns local technologies into global assets by investing in software, telecommunications, internet and clean energy companies in emerging markets with the potential to grow internationally. As a partner in the MineRP

MineRP has announced the long-anticipated transaction that will allow it to realise

its position as the premier provider of integrated mining technical solutions

globally. MineRP president, Pieter Nel, speaks to Hans Alink about the takeover,

the parties forming the consortium that acquired MineRP, the company’s future

strategy and new products to be launched.

Cover story

“

“A greater selection of software solutions that have been tried and tested in the international market is now being used , and a dependable integration partner is required to make this new world work.” Pieter Nel, MineRP president

Cover story


consortium, Hasso Plattner Ventures Africa’s expertise and global network will allow Min-eRP to broaden its off ering and thrive in the global marketplace.

Shalamuka Capital is the private equity company for the Shalamuka Foundation. Shalamuka off ers investment partners a key advantage through its status as a broad-based BEE private equity company, which uses its own funds for investment rather than third party funds. Th e funding received by the Shalamuka Foundation from Shala-muka Capital is used to facilitate the growth of the Penreach programme and ultimately improve the lives of the children and educa-tors of South Africa. Penreach is an award-winning non-profi t, in-service educational development-training programme that was developed to improve the teaching skills of qualifi ed and unqualifi ed educators, as well as their schools in and around Mpumalanga. Th rough the eff orts of Shalamuka Capital and its involvement in Penreach, more than 2 000 teachers, 900 schools and in excess of 350 000 learners a year are reached and ben-efi t from the programme.

MineRP’s future strategyIn business since 1997, MineRP started life as Graphic Mining Solutions International (GMSI), an in-house service provider to the Anglo American Gold division, developing its mining technical software portfolio. In the past 15 years, the company has seen remark-able growth and is now one of the top four

providers of mining technical solutions in the world in terms of revenue.

“For a newcomer in this industry, where all the other players have been around for 25 years or more, we made a signifi cant im-pact on this market. Th is is mainly due to the South African mining industry and the knowledge that we gained from underground mining in this country. However, over the past decade we also spent a lot of time build-ing our capability and technology to support surface mining, where opencast has become important for us,” comments Nel.

With its dual focus on both software engi-neering and professional mining consulting, MineRP is uncontested as the world’s big-gest supplier of enterprise-level integrated

mining solutions. Th is has been achieved through a combination of the development of natively integrated expert solutions within the MineRP stable, as well as the establish-ment of the MineRP Foundation Blocks. Th ese Foundation Blocks are a set of innova-tive enterprise technologies that allow for the horizontal as well as vertical integration of not only systems provided by MineRP, but also those of any other mining technical solu-tion willing to share data in an open stand-ards-based spatial format.

MineRP has seen signifi cant growth in both local and international business, doubling its

BELOW Mine2-4D 2012 will be launched globally in November 2012

RIGHT The MineRP Strategy for delivering integrated enterprise solutions

Cover story


revenue twice over the past six years and has established offi ces on each signifi cant mining continent. According to Nel there is almost no mining company in South Africa that is not a client of the company. Also internation-ally, its client list boasts most of the top 50 mining houses in the world.

World ranking“Internationally there are only three com-panies bigger than us in our market. These companies offer expert applications, i.e. stand-alone applications for different min-ing disciplines, which typically integrate to some degree with other solutions devel-oped within the same company.

“Where the solutions offered by other players in our market only allow integra-tion of their own expert applications, we set ourselves apart in that our enterprise system (MineRP) has the complete flexibil-ity to integrate expert applications from different vendors to obtain an integrated view. It also has the flexibility to link up with any commercial enterprise applica-tion like SAP, Oracle, and other ERP solu-tions to link all mining data with commer-cial data in order to get an enterprise wide view of the entire operation. To top it all, our system is totally web-enabled, which means you can run your application on the mobile device of your choice and view

intricate mining graphics over the web. The flexibility of our system and its ability to provide a full enterprise view of the busi-ness is strategically important in our plans for international expansion,” explains Nel.

New productsOn the expert product side, MineRP will launch Mine2-4D 2012 in November, which will be ready for the market in January 2013. New releases of MineRP Foundation Blocks will also be published in November 2012. Th ese products will be launched at a series of international open days over a fi ve-week period, starting in South Africa in the last week of October, followed by

launches in Australia, Latin America, the US, Canada and Europe.

“All the information on our new products and the presentations for the launches will be available on our website. We are also go-ing to send free versions of the new soft-ware for a trial period to all our customers. Mine2-4D 2012, our new mine planning tool, is a real winner and excellent feedback from our Beta testing programs predict that the latest version of this thoroughbred

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

mine planning tool will be as well received as previous versions. Mine2-4D has always been one of the best underground planning tools, but it is also excellent for opencast mining. Th is product has been rated as the top planning tool for underground en-vironments in the Australian market, an endorsement that is a good benchmark for us,” says Nel.

In South Africa, where mining is more conventional, the generally used planning tool is CADSMine. As part of its future road map, MineRP plans to merge Mine2-4D and CADSMine into one product. Th e company is also busy upgrading all the foundation blocks for MineRP, including Spatial Dash, MineORC,

Mine Forms and Spatial Analys-er, which will allow customers to integrate any collection of expert applications and thereby achieve total fl exibility.

From a MineRP perspective, it is currently business as usu-al. According to Nel, the market can expect MineRP to redouble

its eff orts to support its global client base, as well as maintain the impressive invest-ment in research and development, which has made it the force to be reckoned with that it is today.

“With the new consortium in place, we are confi dent that we will soon achieve our stated objective of being the number one global provider of enterprise, integrated mining technical solutions and consulting,” concludes Nel.

ABOVE Utilising MineRP SpatialAnalyzer to visualise Stope and Block

Model intersections

MineRP has the complete flexibility to integrate expert applications from different vendors

Hot seat


We are proud to sell a global brand that is known for its integrity and a quality prod-uct that our clients can use

when they go into the market,” says Dixon. “When people raise money for projects, af-ter the financial meltdown of 2008, they want to know that the projects in which they are investing their capital are the real deal. There have been many cases where investors have been misled. They don’t want that to happen again. In countries like Canada and Australia, regulators have introduced checks and balances to ensure that what is contained in project plans and valuations is actually going to come to fruition.”

Major mining houses and junior resource companies regularly approach SRK for reviews, audits and independent assess-ments of their projects. Resource estima-tions, using the most appropriate methods

based on rigorous data analysis and sound geological assessment of ore bodies, pro-vide clients with a clear understanding of reliability and risk at all stages of reserve development projects.

“We provide technical advice and do not get involved in downstream activities,which sets us aside from others that may have an interest in downstream activities. Th is makes us truly independent. Our independ-ent engineer reports, comprehensive com-petent persons reports and due diligence reports and programmes carry the weight

of our global reputation in the stock mar-kets and banks of the world.

“We off er a wide range of specialist con-sulting services for natural resources from greenfi eld explorations through to mine

SRK

Selling a global brand known for its integrity and qualitySRK Consulting (South Africa) has been appointed technical consultant to

the government of Cameroon for a US$5-billion (R41.2 billion) mining and

infrastructure project to span over a period of at least five years. SRK (SA)

chairman, Roger Dixon, speaks to Hans Alink about the products, services

and expertise of his group and their most recent African projects.

“

“We provide technical advice and do not get involved in downstream activities, which sets us aside from others that may have an interest in downstream activities.” Roger Dixon, chairman

and partner of SRK Consulting (SA), part of the global consulting group

OCTÉA’s Koidu Diamond Mine in Sierra Leone where SRK has been involved since 2002

Hot seat


closure. Th is encompasses a broad spectrum of disciplines that are involved throughout, which we are proud to have in-house.” SRK staff includes world-recognised experts in structural geology, seismic interpretation, alteration geochemistry, and design and management of exploration projects.

Th e group’s customers – large and small – are as widespread as their projects are var-ied. Th ey include mining companies, fi nan-cial institutions, national and local govern-ments, government departments, regula-tory authorities, property developers, water authorities, power utilities, contractors and consulting engineers. “Our current strategy is to focus on large companies, because one tends to diff use a lot of one’s energy trying to help everybody. We don’t want to spread ourselves too thinly,” explains Dixon.

“We currently have one major client, the government of Cameroon, which is an enormous project. We are advising it not only on mining circumstances, but also on its national infrastructure, including 510 km of railway line and port facilities. On the mining side, we are involved in the areas of geotechnical, tailings, water and waste management.”

SRK SA recently secured the role of pro-ject management consultant and engineer for Brazilian mining company Vale for the Nacala Rail Corridor Project Section 3. Th is new section of rail infrastructure runs from the Mozambican-Malawi border, close to Tete, to the existing rail line at Nkaya Junction in the heart of Malawi. Th is is the most challenging section of the rail line and is 162 km of the total 940 km being built. SRK SA has a team of 150 people working full time on this project.

Apart from doing geotechnical and hy-drogeology work for oil companies like Chevron, Shell and BP, and for power util-ity Eskom in South Africa, SRK has in re-cent years been very active in West and Central Africa.

In West Africa, the company has done fea-sibility work in Sierra Leone on the Koidu Diamond Mine, for diamond company OC-TEA Holdings, and in Ghana it designed tailing facilities for Idiapruim, an Anglo-Gold Ashanti project.

In Central Africa, in the Democratic Republic of the Congo (DRC), SRK was commissioned to complete a big, multi-discipline project involving geotechnical engineering work, water management and

RIGHT AngloGold Ashanti’s Iduapriem open pit where SRK has been providing

geotechnical review services for a number of years

ABOVE Mongbwalu community forum meeting – SRK was the independent

environmental practitioner that led the environmental and social studies for the

Mongbwalu project in the DRC RIGHT SRK Consulting’s team on-site in

the Cameroon jungle

hydrogeology work, environmental impact assessments, environmental and social impact and management work, and com-munity development work for the Tenke Fungurumi project, one of the world’s larg-est copper-cobalt operations. In the eastern DRC, SRK is doing geotechnical work at AngloGold Ashanti’s Mongbwalu project, and was the independent environmental practitioner to lead the environmental and social studies for the project. In neighbour-ing Congo, the company has been involved in a large iron ore project.

In Angola, SRK has done at least three geotechnical projects and environmental work for oil companies through its joint venture with ARC, while in Namibia it was involved in a gold project for a number of years and carried out studies for various companies. Th e company completed geo-technical work for coal and diamond com-panies in Botswana. Th e group is also active in Zambia and Zimbabwe. In Zambia, it has a long-standing relationship with Konkola Copper Mines, owned by international

company Vedanta for which it is doing tech-nical studies and work.

Speaking about the technology that is relevant and required for the company’s ar-eas of expertise, Dixon states: “Computer technology has made our life much easier. For instance, we use satellite technology for mapping and I don’t think we realise how this technology has improved. We also use specialised software for the opti-misation and scheduling of opencast and underground mining. Nowadays everyone wants to be scheduled by a computer, the software is available and we are applying this on our projects. We are using it spe-cifically on the coal side of the mining busi-ness, which is on the move in South Africa and Mozambique.”


PGMs and Gold

Consulting engineers Turgis Con-sulting has been appointed to undertake the detailed engineer-ing and mine designs, while min-

ing engineer house MDM Engineering has been appointed to focus on the metallurgi-cal plant and related design aspects.

Turgis recently completed the positive pre-feasibility study (PFS) at De Bron Merriespruit (DBM) on time and within budget, and the study confirmed that a mine at DBM was both technically and economically viable.

“We are pleased to continue our solid working relationship with Turgis, which de-veloped a thorough knowledge of the DBM orebody since its involvement began at scoping study level. Th e specialist expertise brought in by MDM Engineering to provide the detailed plant design will result in the fast-tracking of the fi nal feasibility study. It is an exciting stage in the development of the company when its fi rst project is taken to such an advanced stage, and we look for-ward to commencing with the construction of South Africa’s next shallow gold mine,” says Wits Gold CEO, Philip Kotze.

The pre-feasibilityTh e PFS delineated a probable gold reserve of 23.5 Mt at a grade of 4.1 g/t (3.1 Moz), which is contained within that portion of the resource at DBM that occurs at depths shallower than 1 000 m and contains an indicated mineral resource of 26.7 Mt at 5.8 g/t Au (4.99 Moz).

DBM will be a shallow underground mine comprising a planned twin shaft system to 660 m, with average gold production expected to be 200 000 ozpa over an 18-year life of mine. Production is expected to peak at 246 777 ozpa at 5.5 g/t during year nine, and fi rst gold production is expected 47 months after shaft sinking commences. Th e PFS estimates production cash costs of US$628/oz (R5 279/oz) with peak capital funding of R2.37 billion.

The feasibilityTh e feasibility study will further refi ne certain aspects identifi ed in the PFS that will aim to improve mining effi ciencies by introducing safer, semi-mechanised mining equipment and down-dip mining methodologies. In addition, further upside

exists if the study investigates the inclusion, through additional drilling, of the existing shallow inferred resources of 5.97 Mt at 5.7 g/t (1.1 Moz) that is readily mineable from the current mine design. Mineral re-sources that are not mineral reserves do not have demonstrated economic viability.

On 22 February 2012, the Department of Mineral Resources accepted the company’s application for a mining right for gold, silver and uranium over its advanced prospecting rights areas in the southern Free State gold-fi eld, which includes the DBM, Bloemhoek, Robijn and Hakkies project areas. Wits Gold holds 14 new order prospecting rights over 1 195 km² in the southern Free State, Potch-efstroom and Klerksdorp goldfi elds.

Th e mining right is expected in the sec-ond half of 2013, once the company com-plies with requirements in terms of the Minerals Act, such as obligations in terms of feasibility studies, environmental im-pact assessment as well as social and labour plan commitments.

Once granted, a mining right is valid for a period of 30 years and renewable for a fur-ther period as required.

DOING DE BRON

Rapid roll-out

JSE/TSX-listed gold junior Wits Gold is rapidly advancing its shallow De Bron

Merriespruit project in the southern Free State goldfield and is due to complete

the final feasibility study during the third quarter of 2013.

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PGMs and Gold

Everything we do with this project reaffi rms it to be a world-class pro-ject. I believe this project alone is worth more than all four gold pro-

jects that currently make up our market cap: Buff elsfontein, Tau Lekoa, Cons Murch and Blyvoor,” says Village Main Reef (VMR) joint CEO Marius Saaiman.

Located near several large-scale platinum mines on the Eastern Limb of the Bushveld Complex near Burgersfort, Lesego is a large, shallow, high-grade resource with a poten-tial production life of 50 years (39 Moz,

5.95 g/t over 1.23 m) from 350 m down. Th anks to funding support from the In-dustrial Development Corporation (IDC), which has a 23% eff ective stake in the pro-ject, it is fi nancially covered up until the completion of its bankable feasibility study – which is currently under way and due to be completed in April 2013.

VMR recently announced an updated mineral resource estimation on the pro-ject, based on borehole data generated from a database compiled by specialist min-ing consultants MSA Geoservices, of all

available data from previous and present drill campaigns up to 31 March 2012. Th e campaign included shallow drilling results from 300 m below surface. Th is latest da-tabase includes the results from 116 590 m of drilling, of which 13 973 m was from the 2007/8 drilling and 102 618 m from the 2011/12 boreholes.

In total, 1 704 m of core were assayed for PGMs and gold, as well as nickel and copper.

Th e updated resource estimate was pre-pared by MSA in accordance with the SAMREC code and signed off by competent

LESEGO PLATINUM

A world-class asset in the makingPlatinum is the foundation upon which diversifi ed mining company Village Main Reef was

established. Today, its single platinum project, Lesego, is set to become one of the most

attractive platinum mines on the Bushveld Complex Eastern Limb, reports Inside Mining.

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PGMs and Gold

person, Venmyn. MSA has reduced the overall tonnages by applying a 17% geologi-cal loss, as recommended by Venmyn, to ac-count for possible losses due to factors such as faulting, pillar losses and potholing.

Th e updated resource estimate reports 39.03 Moz from 204 Mt of ore. Th e updated resource width of 1.23 m was selected to take account of some of the known min-ing parameters, thus moving the resource closer to what could be expected in a re-serve statement. In addition, the resource contains combined nickel and copper of 600 000 t. Th e amended resource esti-mate has improved the measured and in-dicated categories to 65% from the 55% previously reported.

“Based on our current pre-feasibility

results, Lesego looks set to be a 300 000 tpm run-of-mine (ROM) project, which will de-liver over 500 000 oz of PGMs and over 8 000 tpa of nickel and copper,” Saaiman states. Th is indicates a robust business case, returning an IRR of 18.7% (real) and NPV of R6.7 billion.

Th e project requires a twin shaft system (ventilation and men and materials to a 1 600 m depth, with an 11 m diameter shaft circumference). Th ere will be an interim mid-shaft loading point at 800 m using the main ventilation shaft for early extraction and a temporary ventilation shaft, raise-bored from 800 m. Ore below 1 600 m will be accessed via declines.

“Given the size and scope of the project, we continue to believe that it would be op-timally suited to be exploited by a bigger company focused on PGM assets, and as

such we continue to engage with potential strategic partners,” Saaiman comments.

Th e project’s current status and develop-ment programme – intended to see produc-tion start-up in 2017/18, will not be infl u-enced by the current PGM market, which is currently in dire distress.

“Th e fundamentals of the platinum market remain attractive in the medium term, mak-ing Lesego the right asset to come on stream at the right time,” Saaiman concludes.

Resource highlights

• 39 Moz from 204 Mt of ore at an average grade of 5.95 g/t over 1.23 m

• Merensky – 14.7 Moz at 5.66 g/t• UG2–- 24.4 Moz at 6.13 g/t• Approximately 65% in measured and indicated categories

• Significant nickel and copper credits – 600 000 t

• Defined from 350 m below surface

Regional geology

• The Phosiri Dome uplift brings the Mer-ensky and UG2 reefs to mineable depths

• The current Merensky resource is de-fined from 350 m to 2 100 m. The reef continues below

• The UG2 reef lies 200 to 300 m below the Merensky reef

• Fully developed, undisturbed reefs• Good grades, widths and reef continuity.

LEFT Exploration drill rig at Lesego


PGMs and Gold

B lyvooruitzicht (Blyvoor) has be-come recognised as a ‘problem child’ gold mine. Late last year the operation called for business

rescue. Gold production sunk significantly after DRD closed Shafts 4 and 6, and 1 800 employees were retrenched.

“Because Blyvoor is an old mine, which first started producing in the 1930s, it re-quires care, attention, optimisation and ef-ficient processes. Even though we have not fully acquired the mine, we have already evaluated its needs and identified a num-ber of opportunities to ensure it delivers to its best ability,” says Village Main Reef (VMR) joint CEO, Marius Saaiman.

Turning Blyvoor aroundPart A closure of the Blyvoor acquisition was successfully concluded and Blyvoor consolidated with effect from 1 June 2012, which effectively allows VMR to operate the asset without owning the equity yet. Part B closure requires Blyvoor’s old order mining rights to be converted and Section 11 con-sent after which the equity will transfer.

Saaiman says that Blyvoor holds substan-tial promise and is suffering somewhat from the effect of having been the only un-derground operation in a portfolio focused on service re-treatment.

“Already in its fi rst month under Village ownership, Blyvoor contributed R5.6 million

towards our overall operating profi t, despite the fact that the company incurred major winter tariff energy costs – 30% of total oper-ating costs,” Saaiman notes. “Th is means that even if we maintain the same production lev-els for the next fi nancial quarter in the sum-mer months, the mine will deliver a profi t.”

Looking ahead, Saaiman says Blyvoor will remain a one-shaft mine (5 Shaft),

BLYVOOR’S TURNAROUND

A terrific startDiversified mining company Village Main Reef is once again proving it has an

eye for under-valued assets with long-term potential. Its latest acquisition, DRD

Gold’s distressed Blyvooruitzicht gold mine has a bright future, thanks to its new

owner, reports Inside Mining.

ABOVE Celebrating 2 million fatality free shifts at Blyvoor as well

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PGMs and Gold

although the company must continue to incur the mine’s massive pumping costs. The main pumping infrastructure is in 4 and 6 Shaft, and needs to continue running to ensure Blyvoor and sur-rounding gold mines are not flooded. The underground plant is also standing idle and may be dismantled, which could release sub-stantial gold lock-up.

“We have already re-evaluated the orebody and will seek to in-crease development to give the mine greater flexibility. We have furthermore identified opportunities to reduce overall operat-ing costs and intend to implement methods to ‘pump smarter’,” Saaiman notes.

VMR has also revised Blyvoor’s total measured reserves consid-erably. It has dropped from 7 Moz to just 828 000 oz. According to Saaiman, this is no cause for concern: “We intend to ensure the mine operates at a run-of-mine (ROM) capacity of between 35 000 and 40 000 tpm, which in turn will deliver between 50 000 and 60 000 ozpa of gold at an average grade of about 4.5 g/t. At these levels, Blyvoor’s life will continue for another 15 years.”

And these volumes and levels are not the finite boundaries in which Blyvoor will operate until its end. Saaiman says that once the company implements cost reduction initiatives, it will most likely result in ounces being again classified into the reserve category.

Even as a single shaft operation, Blyvoor still employs some 3 000 people (including contractors) and unlike South Africa’s traditional ultra-deep level gold mines, will not mine beyond 3 000 m below surface.

On surfaceWhile all surface infrastructure not associated with 5 Shaft has already been decommis-sioned, there are additional production opportunities, such as the mine’s surface tailings, which have another nine months of production capacity. Treating this ma-terial through the surface plant will provide VMR with the flexibility it needs to impact on the underground

operational costs and increase production from underground, while remaining profitable.

Blyvoor – aligned with VMR’s business model and strategy“Our focus has never just been to acquire distressed assets and turn them around, but rather to source undervalued assets and implement operational strategies to help them realise their full potential. And Blyvoor is perfectly aligned with this strategy,” Saaiman explains.

“There is also a misconception that we are just a gold company – bear in mind that our first venture started in platinum, fol-lowed by our acquisition of Cons Murch – an antimony-focused mine, with gold by-product.”

VMR is a diversified commodity company, aligned with the models and values of a private equity fund, but the company ac-knowledges that attractive opportunities currently lie in gold, platinum and coal in South Africa.

“We want to create sustainable mines, pay fair value on acquisi-tion, impact on the assets and create value for all our stakehold-ers, enabling us to return capital to our shareholders, and retain some value to enable us to do it all again, ” concludes Saaiman.

“Our focus has never just been to acquire distressed assets and turn them around, but rather... to help them realise their full potential.” Marius Saaiman, joint CEO of VMR

ABOVE Village Main Reef joint CEO, Bernard Swanepoel (front right)


PGMs and Gold

For the fi rst time ever, Pan African Resources broke the R1 billion barrier with revenue of more than R1.2 billion, up 41% from the previ-

ous year. Th is increase in revenue was main-ly due to a 24% increase in the gold price to US$1 694 per ounce for the period under review, as opposed to a price of US$1 366 (R11 943.86) per ounce of the previous fi -nancial year. In rand per kilogram terms, the gold price was up 37% to R422 000/kg, up from R306 000/kg of the previous year. Apart from the favourable gold price, strin-gent cost management at the operations also contributed to improve profi ts.

When presenting the annual fi nancial results Pan African CEO, Jan Nelson, com-mented: “We have produced an excellent set of fi nancial results and achieved two signifi -cant corporate milestones. Barberton mines produced a consistent 94 449 oz gold at a consistently high head grade of 10 g/t and we started construction on our tailings re-treatment plant at Barberton.

“At Phoenix Platinum, we have also seen signifi cant improvement. We agreed on terms to acquire Evander Gold Mines from

Harmony, which is a game changing acquisition for us and sets us on a path to mid-tier production status. In addition, post year end we found the right opportu-nity for Manica in Terranova Minerals NL on the ASX.” Last month, the company informed the market that it was selling the Manica gold exploration project in Mo-zambique to Australian-list-ed Terranova Minerals for £4 million (R 55.99 million) and 96 million shares.

Th e Barberton operations delivered a solid performance. Tonnages were up 4% from 296 000 t to 308 000, while the grade was slightly down to 10.45 g/t from the previous reporting period when the mine reported a head grade of 10.55 g/t. Attributable profi t in rand terms was up 88% from R190 mil-lion to R358 million. Cost of production was up by 12% (still below mining infl ation of about 14%) to R566 million from R503 mil-lion the previous year. Other costs were

PRECIOUS METALS

Pan African Resources announces excellent resultsPan African Resources has announced strong full-year results for the financial

year ending 30 June 2012. Profit margins for the reporting period improved,

significantly increasing by 57.19% to US$918 per ounce, while revenue for the

year was up 27% in £101.1 million.

ABOVE A schematic lay-out of the Barberton Tailings Retreatment Project

BELOW LEFT The leach tanks in an early stage of construction with the Bramber

tailings dam in the backgroundBELOW RIGHT The BTRP carbon in

leach tank pads at an early stage with the Gold Room under construction in

the background

up 133% from R31 million to R72 million. Th e main reason for this is that the com-pany built a school for the communities at

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PGMs and Gold

Barberton Mine, which cost close to R8 mil-lion. It also invested signifi cant funds on social development projects. Th ere were also costs for investigating the Evander transac-tion and the disposal of Manica.

Th e royalty also impacted on the costs and the charge was up 79% from R26 million to R47 million. Th e write-off of a very old plant

at Barberton cost an additional R591 000. Th e other major cost component was tax, which was up 55% from R102 million to R151 million.

“All this translates back to our headline earnings per share, which has almost doubled comparable for the period under review,” says Nelson. “Regarding our headline earnings per share and the impact on our dividend, Pan African is probably one of the highest divi-dend yield companies in the sector,” he adds.

As a result of the Evander transaction the Pan African Board, in consultation with their major institutional shareholders, have decid-ed to forgo the dividend for this year due to the rights issue that they are doing. It is, however, the board’s intention – and they have given a commitment to their institutional sharehold-ers in this regard – to resume the payment of the dividend next year. “We are currently – as a percentage of revenue – spending 20% of all our funds on capital projects, which are all organic. Th is bodes very well for the future of the company. Th e fi rst big capital invest-ment was for the development of the Phoenix processing plant, which is in production now. A second large investment this year is being used for the development of the Barberton Tailings Retreatment Plant (BRRP) project. All these investments together are expected to contribute to the revenue and profi tability of the company in future.”

OPERATIONAL HIGHLIGHTSOffer accepted for the acquisition of Evander Gold Mines• On 30 May 2012 the group entered into an agreement with Harmony Gold Mining to acquire the entire issued share capital and claims against Evander Gold Mines for a total purchase consideration of £116.2 million, subject to certain terms and conditions.

• Evander Gold Mines reported a net profit of £21.9 million for the six months ended 31 December 2011.

• Evander Gold Mines has an expected life of mine (excluding the reserves from the Rolspruit area that is contiguous to the current mining area) of more than 10 years.

• Expected production profile of approximately 100 000 oz of gold per annum.

• Evander Gold Mines total underground resource represents 28.74 Moz (110 Mt @ 8.16 g/t) and a reserve of 7.66 Moz.

• (28 Mt @ 8.45 g/t).

Mining operations – Barberton Mines• Gold sold increased by 2.44% to 94 449 oz (2011: 92 197 oz).

• Capital investment of £10.7 million (2011: £6.8 million).

• Sustained a head grade in excess of 10 g/t.

• Lost time injury frequency rate increased to 3.26 (2011: 2.2) and the serious injury frequency rate to 0.74 (2011: 0.66).

Retreatment operations – Phoenix Platinum Mining • Sale of concentrate agreement concluded during November 2011.

• Hot commissioning completed in April 2012.

• Production of 3 384 oz PGE 6E#.• Ramp up phase completed by July 2012.

Near-term production – Barberton Tailings Retreatment Project • Capital expenditure of approximately £23.2 million approved for project

• Construction commenced in April 2012• Capital expenditure to date of £4.5 million

• Commissioning is scheduled for July 2013

Explaining the key drivers for continued growth, Nelson states that the company is targeting a production of 250 000 oz of gold production. With the successful com-pletion of the Evander transaction and the BTRP project coming on stream, they should achieve up to 230 000 oz. Pan African is also looking to grow its PGM production up to 50 000 oz. “Our balance sheet remains very strong, which enabled us to develop. We are only looking at developing orebodies

organically and inquisitively with Evander, where we have a low cash cost base, a high-grade margin and a long life.”

Nelson comments that Pan African’s busi-ness approach has been a successful driver for the company’s wellbeing. Th is approach is based on the relationship between three part-ners: the shareholders; the employees, who are the business partners of the company; and the communities around its operations. It is very important that the company fi nds a balance between these three stakeholders to ensure that it has a viable and sustainable business in future. “Th e fi rst quarter sees Pan African Resources in excellent health and we are very excited at the prospects 2013 will bring,” he concludes.

The carbon in leach tanks half way up. Construction of the Gold Room in the background, which is almost complete

“Regarding our headline earnings per share and the impact on our dividend, Pan African is probably one of the highest dividend yield companies in the sector”

PGMs and Gold

The entire PGM mining community is suff ering at the hands of a de-pressed platinum market, which has had an equally debilitating im-

pact on Impala Platinum’s (Implats) latest bottom line.

“Coupled with the six-week illegal strike in Rustenburg earlier this year, which lost the company 150 000 oz of platinum, the year has been challenging to say the least,” says new CEO, Terence Goodlace.

Goodlace, who offi cially took over from former CEO David Brown in July this year, is looking to see Implats prosper and grow. “Our current model is not sustainable, meaning we need to implement cash preser-vation strategies and ensure our new shaft projects come on stream as scheduled,” Goodlace continues.

Reviewing the entire business model also requires a strategic review of its Marula

operation, which has been a ‘problem child’ for years. “It is not sustainable at its current production levels, and we will make a deci-sion on this asset by the end of the year.”

Implats currently operates 14 diff erent shafts across the Rustenburg area, and in the coming years, the older generation shafts will be closed, production from the fi ve ma-jors (1, 10, 11, 12 and 14) sustained, and most importantly, the three new shafts (16, 17 and 20) ramped-up to full production.

Alongside the expansion of its Zimplats operation, the three new shafts are so inte-gral to Implats’ production future that the company has already invested billions in their development and R7.3 billion over the last fi nancial year (July 2011 – June 2012).

While the three new shaft projects will contribute signifi cantly to Implats’ port-folio, they alone are only part of the com-pany’s portfolio growth plans. Goodlace has

also eventually announced his intentions to see the R9.8 billion Leeuwkop project’s construction start.

Implats acquired Afplats, and its undevel-oped UG2 project, Leeuwkop, in 2007 and the project has lain dormant ever since. “I received a lot of disapproval for overpaying

RUSTENBURG AND LEEUWKOP

Implats’ sustainable keysThe world’s second largest platinum producer, Impala Platinum, is focusing on

ensuring it has a sustainable business model well into the future. This means

bringing its new shaft projects on stream – and on time, reports Inside Mining.

Leeuwkop time frame and development

Capital spend for FY2013 R261 million

Remaining capital spend R9.8 billion

First production date FY2021

Full production date FY2026

Steady-state throughput 2.16 Mtpa

Steady-state platinum production

145 000 ozpa

ABOVE Impala 17 shaft

PGMs and Gold

for Afplats in 2007,” former CEO, David Brown admits. “But the mining business is a long-term one and CEOs need to make decisions that will impact positively on the business in the future. Th e Afplats deal is one of them. It is a good UG2 resource, with an 83 Moz resource in the ground. It will add signifi cant ounces to Implats’ production profi le down the line at the low end of the cost curve.”

Goodlace continues: “Th e Implats board has approved R1.4 billion for Leeuwkop Phase 1, but has restricted spend to R261 million for the 2013 fi nancial year. Th is cash will be spent on sinking the Main Shaft to a depth of about 330 m,” Goodlace states.

SafetyGoodlace acknowledges that the company’s 12 fatalities over the year are unacceptable.

“Th is is an area that Im-plats needs to address and as a result, we are going to implement a new cultural transformation frame-work, which will adopt best safety practices,” says Goodlace.

Th is includes:• safety nets and in-stope

bolting (R200 million over the next year)

• proximity devices on trackless mobile machin-ery (R36 million to be spent at 11 and 12 Shafts; R40 million already spent at 14 Shaft and Marula)

• shaft safety devices (R60 million to be spent over the next two years)

• training of 3 200 safety representatives by 2014

• internal safety stoppages will also increase until all problem areas can be addressed and solved.

PGM marketPGM markets have been primarily influ-enced by macroeconomic events rather than fundamentals for the metals them-selves. The recovery in world markets post the 2008/9 global financial crisis has been negatively impacted by the financial woes currently being experienced in Europe. The resultant low metal prices in conjunc-tion with low productivity and high mining costs have stressed the platinum mining industry. The key drivers for PGM demand, however, remain sound. Automotive sales still show positive growth globally, driven by the US and China, but offset by a decline in Europe.

“Th e long-term fundamentals remain sound, and we continue to invest in our cur-rent suite of capital projects to ensure future production,” Goodlace concludes.

Major capital projects – 16, 17 and 20 Shafts

20 Shaft 16 Shaft 17 Shaft Zimplats Ph II

Capital spend for FY2012 R997 million R960 million R581 million US$176 million

Remaining capital spend R3.2 billion R4.1 billion R8.3 billion US$240 million

Full production date FY2018 FY2018 FY2020 FY2015

Steady-state throughput 1.7 Mtpa 2.7 Mtpa 2.7 Mtpa 2 Mtpa

Steady-state platinum production

125 000 ozpa 185 000 ozpa 180 000 ozpa 90 000 ozpa

Current primary activities Development of the ancillary includes and declines. Production build-up has commenced with 26 000 oz planned for FY2013

Main shaft equipping under way. Development towards reef has commenced from the ventilation shaft. Production start-up scheduled for FY2014

Sinking of the main and ventilation shafts and excavating Merensky reef and shaft pillars. Production start-up scheduled for FY2017

Construction of the concentrator plant, development of Portal 3 and associated infrastructure under way

PGMs and Gold

T rial mining at Tharisa first started in October 2008, following the operation of a 1.2 Mtpa PGM and chrome test pilot scale concentra-

tor, successfully developed and commis-sioned during the fourth quarter of 2011. It provided steady state commercial pro-duction of 420 000 tpa of metallurgical grade chrome concentrate and 40 000 ozpa of PGM concentrate.

Work on the Tharisa R1 billion expansion project, which includes a larger processing facility undertaken by engineering house MDM Engineering, will process an estimat-ed 3.6 Mtpa of run-of-mine (ROM).

“With commissioning already under way, we anticipate a short ramp-up period to full production, which we are aiming to achieve in the first quarter of 2013,” says Tharisa Minerals MD, Mark Farren.

“The expansion specifically entails the development of an opencast mine, capable of producing at a rate of 400 000 tpm of ROM ore, as well as processing capacity to treat approximately 400 000 tpm of feed to the chrome processing facilities and 300 000 tpm to the PGM facilities. Ancil-lary infrastructure such as power, water, road and rail sidings have also been provid-ed – with the support of Eskom, Transnet

and other government institutions,” Farren continues.

The expanded project will pro-duce 1.92 Mtpa of metallurgical grade chrome concentrate and 156 000 ozpa of PGM concentrate.

Earlier this year, Tharisa Minerals con-firmed it had secured R1 billion in debt finance, enabling it to quadruple ROM production to 4.8 Mtpa. Mining is set to transition to underground mining once the opencast reserves are depleted.

The mine has total contained chrome resources of approximately 800 Mt, making it the largest single chrome

AN UPSIDE FOR PGMS

Tharisa defies the economic climateThe Tharisa PGM and chrome mine, located on the Western Limb of the Bushveld

Complex, is under way with the commissioning of its 3.6 Mtpa expansion project,

with plans to expand even further, reports Inside Mining.


PGMs and Gold


mineral resource deposit in the world. Tharisa Minerals is favourably positioned in the PGM space, largely because of the current economic devastation that the ma-jority of the players are facing.

“The current commodity market is tough, but Tharisa has the advantage of being a high volume, low cost producer,” Farren discusses.

Strategic role playersAfriSam has been commended for the high quality and consistent strength above spec-ification of readymix concrete delivered to the Tharisa expansion project.

Burt van der Merwe, project manager for Civcontract Civils, the civils contractor on the project, says that during the pro-ject peak in recent months, an estimated 220 m³ of readymix was poured each day.

“AfriSam, a leading supplier in advanced composite cement, secured the contract to supply up to 22 000 m³ of readymix by road in November last year,” says Gerhard Ma-ree, branch manager, AfriSam Readymix: North West province.

“Our challenge was to ensure a smooth supply of readymix during three big pours: 725 m³ for the SAG mill one base, fol-lowed by two pours of 687 m³ and 715 m³ for the SAG mill two bases. The first pour saw product supplied from our 600 m³/day Marikana plant, 15 km from the project site.”

“With the second pour, we split supply between our Marikana and Brits plants, the latter providing 200 m³ of product. The Brits plant is 45 km from site.”

At all times, another AfriSam plant was on standby, and Maree explains that the geographic location of the site allowed the company to have standby plants at Brits and Rustenburg.

Maree indicated that the extent of the large pours, as well as the need to ensure smooth supply to the project site and to

AfriSam’s other customers, motivated a strategic decision to supplement the exist-ing fleet of AfriSam readymix trucks in the Rustenburg area with additional vehicles from Johannesburg.

“We had two concrete pumps on site with a third on standby for the big pours, and thereafter a concrete pump was on site from 07:00 to 18:00 daily for 37 consecu-tive days. In addition to this, AfriSam had concrete pumps on site on 42 other occa-sions,” Maree says.

On some days, AfriSam delivered readymix to four diff erent pours at the same time and had two concrete pumps on-site pumping concrete for two diff erent foremen.

An additional logistical challenge was to ensure that sufficient supplies of cement, aggregate and slagment were available on time at the Marikana plant to manufacture readymix in sufficient quantities to meet peak pour demands.

To monitor the quality of the AfriSam product, concrete samples were taken on a daily basis and tested in the company’s lab-oratory in Rustenburg. A production team leader was also in attendance at AfriSam’s Marikana plant to maintain quality and en-sure appropriate levels of service as per the company’s service pledge.

Junithan Moodley, Civcontract Civils site agent at Tharisa, says that substan-tial quantities of readymix were required for much of the extensive civils work that forms part of the contract on the expansion project.

Substantial quantities of readymix were required for much of the extensive civils work

BELOW A general view of the Tharisa mine expansion project with the new plant in the foreground and the existing chrome concentrator and PGM processing plant on

the far left

LEFT A view of the concrete structure and 21 m high wall constructed by Civcon prior to the installation of the primary crusher at

the Tharisa expansion project

PGMs and Gold

From the outset, building the R1-billion Tharisa Minerals chromite and platinum expansion plant was always going to be a gem of a challenge: a fast-track, scope-changing project that would require expert management to deliver a quality result.

Driven by a strong leadership team and an ability to execute turnkey solutions, Civcon successfully handed over a diverse range of work, including concrete foundations, bases, crusher columns, the thickener chamber, columns and the floor slabs for the primary and secondary spiral. Civcon also ‘green slipped’ the process water tanks, additional bases and columns for the mill screening building, large bases for the Sag and ball mills, stockpile tunnels and other key items.

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Among the civils elements which Civcon constructed using readymix supplied by Afri Sam are:• the foundations and 21 m high wall for

the high primary crusher• a 47 m x 11.3 m high circular

thickener chamber• three flotation lines ranging in height

from 6 m to 18 m• foundations and bases for two SAG

mills as well as a bore mill – the biggest readymix pours on the project with 85 t of reinforced steel

• two stockpile tunnels, each 72 m long and 8 m high from the bottom of the foundation to the top of exterior walls

• a 16 m high concrete trestle to support the stockpile conveyor.

Further deliveries of readymix were re-quired for the construction of concrete bas-es and columns for the secondary and ter-tiary crushers, the foundations, columns and floor slabs for the primary and second-ary spiral, the construction of a process wa-ter area comprising circular tanks ranging from 3 to 30 m in diameter, bases and col-umns for steelwork for the 20 x 20 m mill

screening building, and bases and columns for structural steel work for the PGM plant. All these structures required 150 mm con-crete surface beds with bund walls and sumps. A total of 2 100 t of reinforced steel was used on the project.

Th e scope of work was increased over the duration of the project with concrete

required for the construction of a 15 m di-ameter thickener, the secondary and tertiary crushers, the platform of the Eskom incom-ing 88 kVA feed substation, outgoing 11 kVA feed, and six mini substations throughout the plant yard, chrome dewatering pads comprising a 80 x 60 m surface of 150 mm reinforced with 30 MPA concrete.

Concrete was used in the construction of several 80 m x 60 m chrome dewatering pads

Exploration


The Tsodilo Phase 1 exploration drill programme identifi ed three diff er-ent targets all within Katangan-age sedimentary rocks similar to those

of the Central African Copperbelt of the Democratic Republic of the Congo and Zam-bia: the Xaudum Rapitan-type BIF magnetite project in the north, the Copperbelt style sedimentary rock hosted stratiform miner-alisation, and the skarn deposits associated with late-stage intrusions in the southern part of the company’s licence area. Th e com-pany is currently focused on a detailed drill-ing programme on the Xaudum Magnetite BIF Ironstone prospect.

Recent isotope dating of Late Proterozoic diamictites interbedded within the mag-netite units has provided ages (734 Ma) that are equivalent to the ‘Grand Conglom-erate’ of the Zambian Copperbelt. Th ese rocks have been identifi ed as being part of a

EX AFRICA SEMPER ALIQUID NOVI

First there were sniggers when Tsodilo stated exploring for diamonds in Ngamiland – that

died away when the company turned up several kimberlites, some diamondiferous. More

recently the sniggers were back when Tsodilo fi rst announced they discovered what looks

like an extension of the Copperbelt in Botswana – nobody is laughing anymore. Willem

Smuts takes a look at some recent developments.

Rapitan-type iron formation both in terms of age and lithology, Rapitan-type iron for-mations are Neoproterozoic (0.8 to 0.6 Ga) iron formations that are characterised by their distinct association with glaciomarine sediments. Th ey are thought to have been deposited in the immediate aftermath of a so-called ‘Snowball Earth’ state. Examples include the Rapitan Group in north-west Canada (18.6 billion tonnes of 47% Fe); Mat-to Grosso, Brazil-Bolivia (36 billion tonnes of 50% Fe); the Yudnamutara Subgroup, Aus-tralia; the Chuos Formation, Namibia; and the Jacadigo Group, Brazil.

What’s in the basket?Tsodilo is currently focusing on the following projects:1. Th ree metal areas identifi ed on Tsodilo’s

prospecting land (14 900 km²):• Xaudum Magnetite BIF: Fe grades ~70%

and anomalous Ag, Co, Mo, U, V. Belt 35 x 5 km.

• Copperbelt-type mineralisation: Strata-bound Cu (Co) and (Ni) in meta-sediments. Belt ~90 km long; 30 and 40 km wide.

• Sepupa Skarn-type: Demonstrated Cu-Fe-Au skarns associated with ~535 Ma intru-sions (IOCG)

2. Kimberlite exploration (7 300 km²) con-tinuous with:

• evaluation of K10 and K11

About Tsodilo Resources Limited

Tsodilo Resources is an international diamond and metals exploration company engaged in the search for economic kimberlites and metal deposits at its Newdico and Gcwihaba Resources projects in north-west Botswana. The company has a 98% stake in Newdico (3 949 km² under Precious Stone – diamond licences). The Gcwihaba project area: 3 728 km² under Precious Stone – diamond licences, 14 914 km² metal (base, precious, platinum group, and rare earth) licences, and 6 925 km² under Radioactive Minerals licences is 100% held by the company. Tsodilo manages the exploration of both the Newdico and Gcwihaba licence areas. The company has offices in Toronto, Canada, and Gaborone and Maun in Botswana.

ABOVE Members of affected communities where Tsodilo operates are kept informed

as to company activities – this includes visits to operations

Tsodilo

Tsodilo proves this old Roman saying true yet again

Exploration


• targets in the most northern licences3. Uranium (7 000 km²) will focus on:• Duricrusts within the regional

geomorphology• Neoproterozoic mineralised meta-sediments.

Bruchs on the way forwardSmuts: What is the programme for the near-term?Bruchs: We will start on a 43-101 Technical and Mineral Reserves Report on the north-ern section of the Xaudum iron deposit.Smuts: You have a great deal of prospec-tive land. How are you going to advance it all? Bruchs: We are confi dent that we can ad-vance the iron project and it is no secret that we have been and are in discussions with mining companies with respect to advanc-ing the metals exploration – especially cop-per. We are a bit diff erent than most junior exploration companies, and it is important that we fi nd the right partner so that it is a win/win situation for both parties.Smuts: How’s that going?Bruchs: All I can say is that discussions are ongoing and we hope to reach an accord be-fore the end of the year.

Th is series of projects is an excellent exam-ple of a situation where unexplained drill results were not ignored but unraveled and taken right back to academic basics to rebuild the big picture so as to fully under-stand what one is dealing with. Th ere is cer-tainly a lot more work to be done here, but the company is on the right track to writ-ing a beautiful story in this north-western corner of Botswana, which will greatly add to our understanding of the structural and economic geology of the region, while at the same time unfolding a new dawn for mining in Botswana.

In a follow-on article, Inside Mining will look at the regional implications for Tsodi-los projects and the work being carried out to bring these and other signifi cant resource projects of the region to market.

IFC does a private placement

Tsodilo Resources closed a non-commissioned private placement financing agreement for gross proceeds to the company of US$2 million (R16.4 million) on 11 September The financing is for 1 818 181 units of the company. Each unit is comprised of one common share priced at C$1.10 and one common share purchase warrant per unit, each such warrant entitling the holder to purchase one common share of the company for a period until the close of business on 29 June 2015 at US$1.21. The common shares to be issued as a result of the financing will have a statutory four-month hold period expiring on 8 January 2013. The proceeds of the financing will be used by Tsodilo for advancement of the Xaudum iron ore and metals project in Botswana, and for general corporate working capital.

IFC, a member of the World Bank Group, is the sole placee in this financing and, as a result, will own upon the closing thereof 4 520 883 common shares (representing 16.11% of the issued and outstanding share capital of the company and up to 30.27% on a partially diluted basis, assuming the exercise of all of IFC’s warrants granted to date [2 802 802 priced at C$2.17, expiring on 29 June 2015, and 1 818 181 priced at US$1.21, also expiring on 29 June 2015]).

James Bruchs, chairman , said: “IFC is our ‘Partner of Choice’; its participation, professionalism, guidance and expertise combined with the economic, political and social stability afforded by the government of Botswana, together with the assistance and support provided by the Ministry of Minerals, Energy and Water Resources and the Department of Geological Survey, create a winning atmosphere for mineral exploration and development.”

RIGHT Tsodilo’s complex geological package within the tectono-sedimentary

context of Southern Africa

LEFT Bernard Amaning, IFC Infrastructure and Natural Resources Department: Mining Divi-sion, and Tsodilo drill foreman, Gosaitse Moabi (right), during a recent IFC visit RIGHT The fi rst Davis Tube Recovery Results from the Rapitan-type Fe formation at the base of Grand

Conglomerate produced Fe with recoverable grades of between 69.5% and 72% with only 0.9% to 3.5% SiO

2, 0.05% to 0.2% Al

2O

3, 0.002% to 0.04% S and less than 0.05% P. The

DTR tests recorded between 71% and 79% recovery by magnetic separation with most of the iron reporting in the magnetic fraction (high magnetite and low hematite).

A new dawn is unfolding for mining in Botswana... and there is certainly a lot more work to be done here


South Africa has some of the deepest mines in the world, most of them located in the provinces of Gauteng and North West. Only a few years

ago, the deepest deep-level mining project exceeded a depth of 3 000 m in a single wind, which was a record at the time. Today, deep level mines exceed a depth of 4 000 m and there seems to be no limit to the depths mining companies can go; the only limita-tion being man’s ability to master the deep underground environment. Macnab paints a futuristic picture of mining in the 21st cen-tury and beyond.

“Deep-level mining projects’ biggest chal-lenges are costs and safety. Costs are from an energy and effi ciency point of view. Th e cost of cooling at depth is one of the great-est challenges and diff erent methods of cooling have a direct eff ect on the costs. Th e commodity price can only support a certain cost. Beyond that you can’t mine profi tably. For example, South Africa has gold reserves that seem to go deeper and deeper. Th e chal-lenge is to contain costs so that you can access those deeper gold deposits and still give the investors a competitive return. If you can contain your costs you can increase your depth; it is as simple as that. Safety is addressed through the correct application of mine design and the combination of modern technology,” explains Macnab.

It all boils down to increasing effi ciencies. Technology is being challenged in order to get to these aggressive environments with-out having to try and tame the environ-ments to man’s satisfaction, as we have be-come accustomed to doing in the past.

A lot of experimental work and R&D, funded by the various mining houses, is cur-rently taking place to mine continuously and by remote control. Th is work is aimed not to tame the environment through cooling, but focuses on remote mining and mecha-nisation where man is not required to work under the extreme temperatures of around

TWP – INCREASING EFFICIENCIES

The challenges of deep level miningThe introduction of new technology and mechanisation in deep-level mining has and will play a major role in future mining, and will dramatically reduce the number of people having to go underground. Hans Alink speaks to Murray Macnab, TWP executive director and general manager: Mining, about the challenges of deep-level mining.

Deep level mining

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Providing Flexible Mining Solutions Takes Great Skill.

60°C and higher (virgin rock temperatures), but where machines will extract the ore. Th is may be achieved using mini continuous tunnel boring machines – similar to those used in the coal min-ing industry, but running up and down the reef and not along it. Th erefore there is no longer a need for people to access the tun-nels. Th e only snag is that these machines can break down and someone has to go underground to maintain and repair them. So, instead of having to cool the whole environment you put a person in a mini space suit and send him underground in an air conditioned micro-environment to do his work. Th is is the type of lateral thinking that is now taking place.

Despite the fact that mechanisation of deep-level mines means having less people underground and reduces job oppor-tunities underground, Macnab says the real challenge of cre-ating jobs lies after benefi ciation of the ore, thereby creating downstream opportunities for industries. Th is will employ ten times the number of people above ground than could ever be employed underground.

Describing the big picture, he says: “Take the inherently dan-gerous and high heat environment out of the picture – get the metal away from that zone using as few people as possible, get it to surface and from there create secondary and other industries using the raw metals. Th at way you will create more employment in an ergonomically friendly environment than could ever be achieved underground.”

When designing a deep mine, one of the greatest challenges is accessing the deposit, taming the environment for miners to mine safely and then getting the ore to the surface as economi-cally as possible. Remember you are competing against mines elsewhere, which are often opencast (opencast mining is the most economical), mining the same metal. When designing ver-tical shafts the cost challenge can simply be overcome by speed-ing up the schedule, which equates to the rate at which one can sink a shaft. To overcome this challenge, technology is used to access the new mine quicker and safer. Th e longer it takes before the mine starts giving a return on its investment (ROI), the less likely the project will become fi nancially viable. Some of the deep shaft projects take longer than 10 years to come into production. Investor appetite generally focuses on quicker ROI and therefore the challenge lies in sinking shafts faster. Th e technology and skills mix has proven that shafts can be sunk beyond 1 000 m in South Africa without a single lost time injury (Impala 20 Main Shaft from 2004 to 2008).

South African companies have become renowned globally for the fast and effi cient way they sink shafts. Th ey are also now being recognised for adopting the safest methodologies and methods. However, shafts were sunk faster in the 1960s, us-ing old technology, than they are today. Despite the use of new technology the average daily advance through rates for shaft sinking have become progressively worse, mainly due to a num-ber of constraints such as ergonomics and a host of new safety rules and regulations. In the 1960s, the bottleneck was the rate at which concrete could be placed behind the shutter ring, with drilling and blasting being stopped so that the concrete could catch up. Today, that is rarely the case in hard rock where the drilling, blasting and cleaning cycles result in the concrete crews waiting for the advance rate to improve. In the 1960s, every new shaft was setting a new world record. Today, we rarely see 2 m per day average through rates in blind sunk shafts.

Mechanised shaft sinking is currently in R&D stage and will be fully implemented in the next few years. Concrete lining will

Deep level mining


once again be challenged to keep up with the shaft bottom. In order to sink shafts faster, concrete constraints must be addressed in parallel to the mechanisation challenge. “Th e challenge now is to halve the time it takes to sink a shaft,” says Macnab. “If we succeed, a lot more projects are going to become eco-nomically viable. Th is is where new technol-ogy comes into play.”

Th e safety issue has been addressed large-ly by new methodologies, which have re-duced crews from 300 persons to less than 70. Th is has been achieved through more

mechanisation. Although mechanisation has introduced the potential for new inju-ries, it has reduced the injury rate by cutting down the number of persons exposed to falls of ground.

When considering constraints on the productivity of the workforce estimations are that deep-level mines have “less than four hours on the work-face times”, which means workers spend about four hours of their day travelling/walking to and from the workplace underground. To improve effi ciencies, productivity and safety, travel-ling time has had to be reduced to get the workforce to the work-face of the mine

using modern methods of transport. Th is can be done through improved mine design, deeper shafts, better positioning of shafts in greenfi elds projects and implementing mod-ern underground transport methods like chair lifts, conveyor belt systems, high speed trains and monorails.

South Africans are well-respected in the fi eld of deep-level mining. According to Mac-nab, TWP is being invited more and more to tender on deep-level projects all around the world in countries like Australia, Chile, Peru, India, Indonesia and Kazakhstan.

Elaborating on their international projects Macnab states: “We have set-up in Australia as shaft and underground mine design ex-perts because ramps are going to be a thing of the past. Travelling times related to the depths of ramps means shafts are the eco-nomical alternative. Th e Australian mining industry will be forced to look at vertical shafts when they hit the economical thresh-old. TWP is currently busy with a shaft de-sign for Newmont’s Tanami shaft project in Australia.

“In Chile, Codelco has asked TWP to be on its Owner’s Team. Six of our engineers will be stationed on that project for the next two

years as Owner’s Team advisors. We’ve also set-up in Lima, Peru, and there have been further enquiries from this region interested in the South African deep shaft and under-ground mining experienced engineers.

“In India, we have been invited by Tata to tender for the EPCM work for a chrome mine. Tata is also after the South African ex-perienced engineers.”

Asked why it’s essential to sustain South Africa’s deep-level mining industry, Mac-nab responds that the country still has about a third of the world’s known gold re-serves, which is a strategic resource for the country. Government and mining houses need to work together to realise that op-portunity, regardless of the depth. Despite the fact that the South African gold min-ing industry has been in decline for the past 20 years, it does not make economic sense to close these mines, because once they are closed it will become uneconomi-cal, if not almost impossible, to reopen these deep-level mines again. Once such a mine is closed it floods, deteriorates and collapses, which makes it a very dangerous place to go back to. While the mine is open and maintained – and bearing in mind that the capital cost of getting to the 4 000 m depth has already been amortised over the past 50 years – it is better to develop these mines deeper. To put in a new shaft to a depth of 4 000 m and develop a mine will take about 15 to 20 years at a capital cost

The country still has about a third of the world’s known gold reserves, which is a strategic resource

Deep level mining

of tens of billions of rand. According to Macnab, we must rise to the challenges now.

Asked to what depth deep-level mining can go, Macnab explains that most of these operations are currently mining for gold in am-

bient temperatures, which are very high due to their VRT infl uence at depth. However, temperatures at platinum deposits are even higher than in the gold deposits because of the higher thermo-conductivity of the rock mass in the Bushveld Complex. “Th e heat at 2 km depth in platinum mines is almost equivalent to that at 3 km in a gold mine. So, although the platinum mines have not so much rock mechanics depth challenge with rock pressure bursts, they have the same environmental temperature challenge that comes with the deepening of platinum mines. Consequently, what-ever technology we get to master the environmental challenges in the gold mines, it would also be applicable to the platinum mines and vice versa.” Cooling amounts to a large electrical cost and often makes deep projects uneconomical as a result.

Th en there is the question of how long South Africa’s deep-lev-el mining projects will remain viable. Macnab expects this to be for another couple of generations. “Large mining companies, like Anglo Gold Ashanti and Gold Fields, still have very large gold de-posits in South Africa and have invested large amounts of capital in them over the years, and as explained earlier, they will want to benefi t from their previous investments. Government also has an invested interest in the successful exploitation of this resource. Th is symbiotic relationship will therefore ensure the two will move in the right direction to secure a winning recipe for gold and plati-num mining, long into the future of South Africa.

“Man loves a challenge and we are therefore mining for gold at greater and greater depths for as long as we can do so economi-cally. Th ere are enough engineers out there who will rise to the challenges. It’s in the DNA of South African engineers. Th e rest of the world doesn’t have this great depth challenge yet, but at some stage down the line they are going to get to the same challenges. By then South Africa would have mastered these challenges and will be world leaders of deep-level mining once again. South Africans simply started mining tabular steep dipping orebodies a hundred years before anyone else did, which has forced us into the forefront of deep-level mining.”

Looking at safety and special safety considerations that com-panies need to be aware of when developing deep-level shafts and mines, Macnab says that falls of ground is still one of the big challenges, as always, when working underground and under the eff ects of gravity. “However, as you get deeper the hazard of loose rock type falls of ground start being overtaken by the pres-sure burst (sudden energy release by the rock, including footwall bursts), and so rock bursts have become the new challenge. Th is is often confused with falls of ground. Rock bursts are completely dif-ferent to falls of ground. Th e deeper you go underground, the more potential energy there is to contend with all around you. We are trying to tame more and more of this energy that wants to release

itself into the new void we are creating. In treating the symptoms of rock bursts we often try and use the same mechanisms and tools as developed in the past 20 years for support purposes. However, the right way is to eliminate pressure bursts by applying the cor-

rect design to the mine data gained in seismic surveys, ground penetrating radar and drilling reports. In so doing, one minimises the impact of the natural stress zones.

“Additional stresses to the inherent natural stresses can be induced by poor mine design or mining sequence. Th is is where South African engineers have gained a lot of experience and data over the years. We have acquired deep-level

mining experience in gold over the past three decades (often the hard way), and although there may be many incidents of rock bursts where no injuries have occurred, many have occurred that prevented further mining in the area or fractured the area to such an extent that it constitutes a dangerous environment to undertake remedial repairs and resulted in production losses for many months.”

By using the newest technology and computer power, which in-cludes the installation of strain gauges, microphones and geo-phones underground, miners can monitor rock stresses and the ad-ditional induced rock stresses straight after a blast. Miners can also monitor how much energy is released after the blast, which is when most rock bursts occur. Th ey can then forecast and predict events that may be hazardous to the next shift or subsequent shifts. It’s a combination of all these technologies, experience and engineering knowledge that will lead to an overall improvement in the safety of

“We are therefore mining for gold at greater and greater depths for as long as we can do so economically.” Murray Macnab, TWP executive

director and general manager


deep-level mines and the viability of deep-level projects. Th ere has not been a quantum leap in a new direction in the area of mining safety through mine design in recent years. As in the past, old methods were simply re-fi ned. Th e industry seems to have done a lot of work in the past few years in achieving bet-ter effi ciencies out of existing designs. How-ever, that is changing as we strive to go safely to and beyond the 5 000 m mark, using tech-nology and remote mining methods.

Macnab spoke about a revolutionary new shaft sinking technology that is being inves-tigated by some of the major mining houses and technology providers, which is in the R&D phase. He believes that in the next decade this technology will be in operation and man will be totally eliminated from the shaft bottom during the sinking process. Th is technology will also double the rate of sinking shafts and thus make more projects profi table and therefore viable. “In deep level mining, South Africans are already progres-sively moving away from labour-intensive shaft sinking to more mechanised shaft sinking technologies, combining the best of diff erent countries’ technologies with our own technology. I believe that this is going to be the great leap forward in the interim,” said Macnab. “Everyone is looking at the De Beers’ Venetia mine shaft project, which TWP designed and Murray & Roberts are going to execute using a combination of the Canadian

methodology and the South African technol-ogy. We’ve used what we believe is the best from both worlds to improve safety and effi -ciency in shaft sinking.”

According to Macnab, there is one other technology that TWP is looking at integrat-

ing into its next shaft design for improving concrete linings and eliminating side wall falls of ground. “Th ere are a lot of accidents during shaft sinking because of the exposed side wall of the shaft before the concrete is placed in situ. Typically the concrete can be anything between 6 and 24 m away from the shaft bottom. We spend a lot of time to fi rst make the area safe by barring it down and stabilising it, by drilling and inserting rock bolts, installing wire mesh, even shotcreting – we do all kinds of things to treat that tem-porary 24 m area. In the process there are a lot of falls of ground and injuries. It makes sense to concrete it as soon as possible with as little eff ort and personnel exposed to the hazards of temporary support.”

He explains that the Chinese put very little eff ort into temporary support of that 24 m area. Th ey try to get the concrete onto the side wall of the shaft as fast as possible by

lining it to shaft bottom immediately after the blast. Th is is done independently of the stage position. In the current South Afri-can shaft sinking methods, the shaft lining is dependent on the position of the stage and the position of the stage is dependent

on the mucking and loading arrangements that are fi xed under the stage. Th e Chinese have, however, divorced the two from each other, as they believe the two have noth-ing to do with one other. Accordingly, you can have the stage wherever you want as it is related to the mucking and loading ar-rangements, which is independent from the concrete lining. Macnab says TWP is inves-tigating how this technique can be success-fully integrated into the new South African/Canadian methodology.

“We must give South African miners credit. Th ey’ve gone from the worst shaft sinking safety records to having one of the best in the past few years. We need to give recognition to all the time, eff ort and money that has gone into the continuous improvement in safety in our mines. We still have a way to go, but there is a willingness to be the best and we are do-ing something about it” he concludes .

Deep level mining

There has not been a quantum leap in a new direction in the area of mining safety through mine design in recent years

IT in mining

Pitram records, manages and pro-cesses mine site operations data in real time and provides the tools needed to increase production and

effi ciencies, reduce costs and improve safety and real-time business intelligence capabili-ties. “Pitram has gained considerable ground in the African opencast mining sector and can off er unique additional benefi ts as it is further used in underground operations,” says Marc Ramsay, regional manager of Micromine Africa.

“Pitram is available in four product suites with varying scalable functionalities and ca-pabilities and is currently being used by more than 40 underground mining operations

PITRAM SYSTEMS

Improving productivity in underground mining

Underground mining projects across Africa can comply

with increasingly stringent operating conditions by

optimising every asset and process using Pitram systems

developed by leading mining and exploration systems

provider Micromine Africa.

worldwide with impressive results. I believe that Pitram has the potential to substantially improve safety, productivity and effi ciency in the predominantly labour-intensive African underground mining sector,” he explains. Th e suite of products includes the entry-level Pitram Report, the real-time Pitram Control managing system, the fully automated Pitram Optimum solution and the more general fl eet management programme, Pitram Fleet Man-ager. Ramsay says that as an operation grows and becomes more complex, Pitram can be confi gured and be seamlessly upgraded to suit the mine’s expansion. “Pitram’s underground functionality has been developed with hard rock and deep-level mining in mind, and the

systems have been designed as a ‘toolkit’ of applications and functionality as standard, and operate within commonly used industry technology standards. What’s more, these tools are confi gurable to all mining opera-tions, thereby shortening implementation times while allowing for the required fl ex-ibility to suit all relevant operational require-ments,” he continues.

He highlights the fact that limited commu-nication is a major challenge in underground mining projects in Africa. “Pitram has been specifi cally designed to cater for this aspect of underground mining, as the system can oper-ate independently of any communication sys-tems by managing information through intui-tive operator screens, and catering for sporad-ic communications by updating automatically when assets enter communication hot spots.”

Another major benefi t of Pitram is that it is also hardware independent. “Th e benefi t of Pitram being non-hardware reliant is that it allows our clients to consolidate systems and integrate them with third party systems without any additional costs and unnecessary downtime periodsTh is ultimately ensures that our clients are provided with a shorter re-turn-on-investment cycle as we assist them to achieve information accuracy and improved decision making,” explains Ramsay

“Th e Pitram strategy is to provide clients with intuitive and user-friendly solutions that simplify system processes for opera-tors. As Africa continues to move towards automation and control-room-type operation centres, I believe that this technology will sig-nifi cantly benefi t our local underground cus-tomers across all commodities.

Reliable communications from exploration to production_

Fastest speeds in the industry now available 8 Mb / 1 Mb

Please contact NSSLGlobal Ltd w w w . n s s l g l o b a l . c o [email protected] + 4 4 1 7 3 7 6 4 8 8 0 0


Satellite communications

The nature of the mining industry involves workers spending long pe-riods of time in remote areas, which makes reliable communications

key. Until recently, satellite communications (Satcoms) was deemed to be an expensive luxury. However, with the latest technology and more competitive price plans, compa-nies like NSSLGlobal have made Satcoms an increasingly viable option with costs that are competitive with mobile roaming.

A new mine goes through many stages of development, from mobile exploration through to fully established large mines. Add to this the growing use of remotely operated sites and increasingly mobile staff working across several sites, and it is apparent that there are a wide range of requirements for mining companies when considering a com-munications solution.

In order to provide cost-eff ective communi-cations that meet the requirements of min-ing companies, NSSLGlobal has a dedicated team with a fi rm understanding of mining, and the ability to provide bespoke solutions for the diff erent stages of the mining process.

ExplorationTh e initial stages of the mining process fo-cuses on the geologists, with one geologist or

a small team researching across a large area in a short space of time. Th ey are highly mo-bile, and frequently send data back to head offi ce from ever-changing locations.

To meet the needs of such small mobile operations, NSSLGlobal has developed solu-tions that include small data and voice ter-minals (BGAN) and satellite phones. Th is so-lution allows teams to make voice calls and send data for analysis in real time, allowing for a free fl ow of information between the offi ce and the exploratory team and effi cient use of time. Having portable units also al-lows companies to have fewer staff in the fi eld. Vehicular solutions are also off ered, providing highly mobile communications links to small teams.

DevelopmentAs the mine is developed there are larger teams on-site, leading to a change in the communications requirements. As more people need access to communications chan-nels the demands on capacity increase; how-ever, the need for high mobility decreases, as activity will be restricted to a specifi c area.

In order to accommodate more users, NS-SLGlobal recommends a fl exible and cost-eff ective solution, which includes mobile satellite modems, satellite phones and trans-portable satellite broadband systems. Th is solution allows the larger capacity required by the larger user group. Users will have access to high speed, high capacity com-munications, without being constrained to

individual locations and without inordinate changes in cost.

Fully operational, large-scale minesFull-scale operations require a high capac-ity, full broadband connection, capable of both high capacity data and multiple voice services, which allows all the workers on-site access to full communications solutions. Th e benefi ts of this are both commercial and wel-fare orientated. When teams are working on a mine in a remote territory for prolonged periods, it is important that they have com-munications links for their work and for their personal lives. Th is makes satellite com-munications vital.

In this scenario, NSSLGlobal provides full-scale VSAT solutions that allow for the speed and capacity required for the mine to fulfi l its commercial functions and support the welfare of its staff . Th is kind of solution can be highly tailored to fi t the requirements of the customer.

SATCOMS FOR MINING

Satellite communication from exploration to full production

Satellite communications provider NSSLGlobal

offers reliable communications, suited to the needs

of the mining industry; offering combat-proven

products that are tough, reliable and highly

durable, the company provides solutions designed

specifi cally for use under harsh mining conditions.

LEFT NSSLGlobal’s unit for Broad-IP VSAT service RIGHT An IsatPhone Pro Handset

as provided by NSSLGlobal

BELOW An Inmarsat BGAN Class 2 Terminal provided by NSSLGlobal

IT panel discussion

The Rail-Veyor® bulk material handling system combines the best of conventional

railroads, overland conveyors, trucks and slurry pipeline

transport, moving materials by using light rail track systems with a series of cars that repre-sent a long, open trough mov-ing along the track.

An integrated software solu-tion was required that allowed for seamless electronic information flow between the Mit-subishi PLC platform and visual control stations for operator use, as well as a bulk engineering tool for rapid development. A permanent, sustain-able solution was

found with Adroit, Mitsubishi and MAPS.

Performance is monitored, including production and op-erational cost. Complete record keeping, from spares used, elec-tricity consumed, production delivery and personnel activity, is available through the extend-ed product range from Adroit.

A visualisation and report-ing software platform was required to fulfil the needs of global mining houses, to form an integral part of the Rail-Veyor. MAPS addresses the shortcomings of standard SCADA software programs, of-fering value to the engineering

and integration phases. Some benefits include optimised engineering, reduced costs and single point of configuration, deployment and management.

MAPS is a life cycle software tool that offers value along the entire value chain. It extends the integrity of the ‘as deliv-ered’ solution and customers can handle the normal exten-sions and maintenance of any automation solution.

Contact Gareth Davies of Deebar Automation [email protected] or Jan-Hendrik Rust of Adroit Technologies [email protected] for more information.

ADROIT INTRODUCES BULK MATERIAL HANDLING SYSTEM

MAPS chosen for Deebar’s Rail-Veyor

Adroit’s Rail-Veyor®-dumping loop

IT panel discussion

Intelligent Business SolutionsAre you looking for…Technologically advanced ERP solutions?Information anywhere, anytime?Delta ERP will add value to your businessCall us for a round table discussion

Tel: +27 12 807 [email protected], South Africa

What IT solutions do you provide to the mining industry? DataSaint is a provider of comprehensive ERP solutions, branded as Delta, with real-time integrated business modules, designed to meet the challenges of cost-control, multi-currency reporting and administration.

Why has it become essential to include state-of-the-art IT technology for ERP Projects? Increasing demands for cost-effective operations, on-the-fly management information and distributed decision-making has driven us to develop business and IT solutions to meet high standards of data warehousing

and graphical representation of trends and information. This requires that we use the latest IT tools and techniques. Our latest developments are focused on the ‘Cloud’ computing environment.

What makes your company or IT solutions stand out as the obvious choice for current and prospective clients? With more than 15 years of experience and close engagement with the mining industry’s ERP applications, our dynamic real-time interactive Delta product provides the functionality, user-friendly interfaces and enhancements required by mining operations.

GILBERT MCCAUL – PROJECTS MANAGER – DATASAINT

Give us an idea of typical projects in the past. Projects that stand out would be producing individualised business solutions, such as restricted area access control, clinic management, cross border supply chain

management. These all enhanced the core ERP modules to provide customised user solutions.

Gilbert McCaul in a training environment, describing the

match between Delta ERP and user’s business processes

Minerals processing

[email protected]

Tel: +27 (0) 11 827-9372

Fax: +27 (0) 11 827-6132

Weba Chute SystemsAbsolute Material Flow Control

www.webachutes.com

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Successes with this pilot plant include treating -1 mm ROM chrome in various South African and Zimbabwean operations, sup-

plying a plant to a mineral sands opera-tion in Gambia and plants to various local coal operations.

With a lead time between 12 and 14 weeks, depending on the specific configuration re-quired, the plant can be despatched quickly to a site. Easily transported inside two 12-metre containers or on two 12-metre low bed trucks and quickly assembled on-site using a crane to manoeuvre it onto a

MULTOTEC

Mobile spiral pilot plant attracts interestA mobile spiral pilot plant manufactured by

Multotec is generating growing interest, particularly

from junior miners and operations that need pilot

plant information to design full-scale plants.

Minerals processing

Multotec, a leading mineral process solutions provider to the mining and mineral benefi ciation industries, partners with customers for perfect equilibrium between the life of equipment and process effectiveness in every individual customer application.

Our value-added products and extensive application knowledge have established our global reputation for providing optimum technical solutions and the highest levels of support through consulting services and fi eld service teams.

Partner with us today

www.multotec.com

the ingredients

for the perfect mix

concrete base or compact floor, the plant can just as easily be dismantled and relo-cated to the next site.

The compact plant has been engineered as a pre-assembled unit, complete with all electrical requirements. The design in-cludes Multotec’s field proven technology with cyclones and spirals. Set-up is simple and only requires connecting the process feed line, power supply and water line to the plant.

On display at the recently held Electra Mining Africa 2012 exhibition in Johan-nesburg, this innovative plant comprises spirals and cyclones, and sieve bends for coal applications. The unit was modified to operate independently on four spirals, allowing four different minerals to be run through it in closed circuit. The plant has design capacities of 10 and 20 tph for heavy minerals, and 36 tph for coal, once fully installed.

“This mobile pilot plant is proving par-ticularly useful where mines are running on a tight budget that doesn’t extend to building their own plant,” says Dean Lin-coln, general manager, marketing and

business development at Multotec. “For mining operations planning to build their own plant, once the pilot plant test data has been reviewed, it becomes possible for customers to embark on the design of the most appropriate full-scale plant for the

chosen application and conditions. This ensures absolute plant flexibility, enabling the treatment of almost any type of min-eral including beach sands, titanium, chro-mite, iron ore, silica sand and tin, as well as coal.”

ABOVE Multotec’s mobile spiral pilot plant being used on-site. The plant

generated great interest among junior miners at the recently held Electra Mining

Exhibition 2012

Set-up is simple and only requires connecting the process feed line, power supply and water line to the plant


Mining products & services

A frican Oxygen Limited (Afrox), sub-Saharan Africa’s market leader in gases and welding products and supplier to the

mining industry of a comprehensive range of products and services, is launching its new Saffire Legend 916 range of heating, welding and cutting torches into the min-ing market, hot on the heels of the intro-duction of its new AfroxPac 35i self-con-tained self-rescuers for mine workers.

“Afrox aims to offer its mining customers products that are cost-effective, economi-cal, robust, durable and safe, which will add value to the different mining applica-tions and processes. Our new Leg-

end 916 forms part

of the Afrox Saffire premium range of cut-ting torches, which have been specifically developed for the the mining industry. The main feature of the Legend is that the ac-tual control mechanism is positioned at the bottom of the torch, which is where min-ers prefer it to be. With our normal Saffire range of torches, the control mechanism is at the top of the torch. Probably the most important benefits of the Legend are that it is very robust, durable and safe, which is exactly what the mining environment re-quires,” comments Van Wyk.

Afrox has served the needs of the min-ing sector over the past 80 years and is the leader in supplying industrial gas and weld-ing process solutions. The group offers

application solutions from the first stages of ore extraction and mining, through to surface processing and mineral recovery. Its product offerings include industrial gases and welding kits for general main-tenance (heating, cutting and welding), lamproom calibration gases, refrigerants for mine shaft cooling, scientific gases for laboratories, underground self-contained self-rescuers (SCSR) and bulk gases for metallurgical product recovery and water treatement processes.

The following product categories and products are on offer:• Industrial packaged gas: industrial

gases such as oxygen, acetylene, nitrogen and shielding gases, among others

• Speciality gas: such as special gas mixtures of Methcal and Cocal, specifically formulated to customer require-ments. Other special gases include refriger-ant gases such as am-monia and R134a, as

NEW AFROX PRODUCTS

Offering all-round products and services to mining“With our all-round, 360-degree products and services offer, we are probably

the only company in South Africa that offers a total solution in terms of all the

different products, end-to-end solutions and value-added support services into

the mining industry,” Gerhard van Wyk, Afrox’s business manager: hard goods,

explains to Hans Alink.

tions and processes.end 91

“We offer a wide range of mining application and process solution for the mining sector, which supports both surface

and underground mining operational requirements” Gerhard van Wyk, business manager hard goods of Afrox

Mining products & services

MARTHINUSEN AND COUTTS - LEADERS IN ELECTRIC MOTOR AND POWER GENERATION

REPAIR, MAINTENANCE AND SPECIALISED MANUFACTURE.

Large AC / DC Motors

Small AC / DC Motors

Traction & Flameproof Motors

Transformers

Power Generation

ON SITE SERVICES

CUSTOMISED ELECTRICAL

AND MECHANICAL DESIGN

Marthinusen & CouttsYour Assets. Your Needs. Your Service Partner.Your Assets. Your Needs. Your Service Partner.

A division of ACTOM (Pty) Ltd

Tel: +27 (0)11 607 1700 www.mandc.co.za [email protected]

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• well as the HiQ scientific range of high purity gases and specialty equipment for laboratory applications

• Self-contained self-res-cuers (SCSR): includes the new robust and heat resistant AfroxPac 35i self-contained self-rescuers (SANS 1737:2008 com-pliant), used as standard underground emergency breathing apparatus in the mining industry

• Gas equipment: includ-ing regulators, flashback arrestors and torches, as well as welding and cutting kits, including other parts and accessories

• Arc welding equipment: including MIG equipment, MMA equipment, TIG equip-ment and accessories

• Welding filler materials: such as market-leading brand Vitemax, as well as other spe-cialised filler materials, in-cluding hydrogen controlled, carbon steel and stainless steel electrodes

• Personal protective equip-ment: including heating, cutting and welding-related, and general PPE

• Bulk industrial gases: bulk industrial gases such as oxy-gen, nitrogen and carbon di-oxide and other gases

• LPG: including Han-digas cylinders, and bulk Handigas supply.

“We offer a wide range of min-ing application and process solution for the mining sector, which supports both surface

and underground mining oper-ational requirements in the fol-lowing specific areas: general maintenance heating, cutting and welding; gas equipment maintenance, repair and re-placement; PPE; self-contained self-rescuer packs, lamproom gas solutions; mine shaft cool-ing and ventilation; the Goldox gold recovery technology; laboratory gas solutions; and

water treatment technologies for cyanide destruction and acid mine drainage, specific to gold mining.

“We also provide mines with a no-cost, value-added con-sulting service to monitor and report on the condition and safety of the equipment that we sell to them in order to com-ply with legal requirements,” concludes Van Wyk.


Well-known market observer Alec Hogg believes that South African mining is in a crisis and that the national anxiety will spark overdue ac-tion – on mining and Malema. I suspect Hogg has too much faith in the national will to fi x anything and I certainly agree with him on the crisis, but in my opinion the hour is very late for severe measures in address-ing the ever-growing problem.

I think we are now at the point where companies like Lonmin need to stop the bleeding and close down those shafts – if the company doesn’t, eventually its shareholders will, and that is a place where no company would like to end up, for then it ends really badly for every-body. Hope springs eternal, but if both government and the mining sector do not take de-cisive steps on their own turfs the current situation of un-controlled demands and spiral-ling violence will take us to the abyss in no time. We have, over the past six decades or so, seen what that looks like on our con-tinent – we really do not have to test it for ourselves.

A much bigger jinxBY WILLEM SMUTS

Ceterum Censeo

Zimbabwe change of feet again?Th e cancellation of exclusive prospective orders (EPOs) by the Ministry of Mines and Min-ing Development has resulted in the release of additional ground, Zimbabwe’s perma-nent secretary in the minis-try, Prince Mupazviriho, told attendees at the recent Min-ing Indaba held in Harare. He stated that in excess of 344 EPOs were withdrawn in order to deal with speculative hold-ing of mining rights. Targeted companies included large play-ers like RioZim and Metallon Gold Exploration. Mupazviriho, who chairs the Mining Aff airs Board responsible for allocating the EPOs, said the government had withdrawn the EPOs after it emerged that they had been lying idle for over 10 years. He stated that the ministry would push for the enforcement of “use it or lose it” policy for land that would not be used in the immediate future.

Meanwhile, the talk about amendments to the Mines and Minerals Act and what to do about the diamonds rolls on

endlessly. Perhaps they should visit Eritrea and learn how to get something that works once and for all? No “structures around the policy” can “address the structural defi ciencies” of the current legislation, but you can fi x security of tenure and transparency. Mupazviriho also said he believes there was need to look at every mineral to see how the sector could come up with benefi ciation strategies. Forget benefi ciation if you can’t get the basics right fi rst.

Here is some free advice to the ministry and the Mining Aff airs Board: the two most critical investment criteria for spend-ing money in mining are geo-logical potential and security of tenure.

Now be assured that in terms of item one, Zimbabwe is in my opinion (and I am certainly not alone in this) one of the most prospective countries on the beloved dark continent.

Th e problem is that Zimbabwe fails miserably on issue two! Nobody has faith that their tenure is safe at all. Policies keep changing, are clear as mud and the way decisions are made

even worse. If indeed it is true that major players in the indus-try are ignoring the Ministry of Mines over latent EPOs then clearly there is a great discon-nect and I would expect respon-sible offi cials to have sleepless nights over this.

Investment opportunities exist in greenfi eld exploration and known highly prospective areas. Th ere are also many pro-jects at embryonic stage in the country. It is a fact that there are numerous investors with approved funds and technical teams in place to explore and develop late-stage projects in Zimbabwe who have been beg-ging deaf ears in the ministry for years to get their tenure confi rmed, with absolutely no joy. Chamber of Mines presi-dent Winston Chitando said the sector requires US$5illion to US$7 billion (R41.7 to 58.4 bil-lion) to recapitalise. Th is will never happen unless the gov-ernment cleans the house and sets clear, simple rules without discretion.

In my opinion a good start for this ministry would be to get a copy of the last few years’ Fraser Institute annual mining reports. Th en read them, get a good fright, take some good advice and get off from the bot-tom of the barrel!

In my opinion Zimbabwe re-ally should not be one of the hyenas of African mining...

Abeco Tanks 15

Adroit Technologies 38

AFROX 2

Aquadam 14

Civcon Construction 27

Datasaint 39

DRA Mineral Projects 5

FLSmidth South Africa IFC

Global Mining IT & Communications Summit 21

Gold One International 13

Junior Mining & Exploration 17

K'enyuka 18

Kulkoni-ITSt/a SKOK Machines 9

M & J Engineering 40

Marthinusen & Coutts 43

MDM Engineering 24

Melco Conveyor Equipment 23

Micromine 35

MineRP OFC

Mining Indaba IBC

Model Maker Systems 33

Multotec Group 41

NSSL Global 36

RCM Plastics 19

TWP Projects 31

Weir Minerals OBC

INDEX TO ADVERTISERS

Recently the news wires and press have been awash with saucy

headlines like “Juju jinxes Zuma over mining unrest” and many of

similar ilk. Unfortunately, these storylines all too often miss the bigger

picture as it is ultimately the workers that get sucker-punched and

the South African economy that gets the jinx.

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Weir Minerals. Expertise where it counts.

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Copyright © 2012, Weir Slurry Group, Inc. All rights reserved. WARMAN is a registered trademark of Weir Minerals Australia Ltd and Weir Group African IP Ltd; HAZLETON and MULTIFLO are registered trademarks of Weir Minerals Australia Ltd; FLOWAY is a registered trademark of Weir Floway Inc.; GEHO is a registered trademark of Weir Minerals Netherlands bv; WEIR is a registered trademark of Weir Engineering Services Ltd.

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Documents

Inisde Mining October 2012