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Steel industry in financial distress because of lockdown

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The Department of Trade and Industry has warned that the steel industry would exit the coronavirus (Covid-19) lockdown in severe financial distress potential plant closures and job losses.

The department’s Trade and Industrial Policy Strategies (Tips) on Friday said the industry could experience a devastating R1 billion negative cash cost on the five-week lockdown unless the government intervened.
It said the situation would be made worse by the fact that  Chinese and Russian were expected to resume their low-price steel offering.
Tips said its research showed that the industry needed emergency funding and  consolidation for plants to reopen and be sustainable.
It said cash flow had been fundamentally disrupted with many customers reporting that they would not be able to pay as they had also not been paid.
“This lack of liquidity will force a spate of defaults and possibly some parts of the industry will not survive this crisis, not because they are bad businesses, but simply because the flow of cash dries up,” Tips said.

“Manufacturing companies integral to the supply chain of SA Inc. may not recover, which will have a longer-term impact on the competitiveness of some other sectors.”
Tips said steel production in the second quarter was expected to be 50 percent lower.
It said while there may be slight improvement in the third and fourth quarters, demand was still expected to be 30-40 percent lower than normal.
The group said domestic steel consumption was projected to be below 3.3 million ton this year, 26 percent lower than 4.5 million tonnes in 2019, “as the major part of the forward order book is cancelled.”  .
The local steel industry produces some 9 million tons a year, making it a small global player, compared with for instance China, the biggest producing country, with 928 million tons produced in 2018.
Tips said the downstream steel fraternity was “extremely pessimistic” from both demand and cash flow perspectives.
It said a possible solution to the liquidity crunch was for the Industrial Development Corporation to create a temporary lending facility to provide payment-term relief to customers of the steel industry, possibly administered by one of the industry bodies.
This would allow steel mills to offer extended payment terms to customers of up to120 days rather than the standard 30 days, which would  allow South African-based manufacturing to weather the short-term impact to cash flows.
The interventions also needed to cater also for large businesses with a turnover in excess of R50 million a year. The upstream steel industry also needed exemption from the
Competition Commission to work together “to save whatever was possible to save.”
A proposal for the government to protect the manufacturing industry included a review of imports to prevent a flood of products from countries that had opened up earlier, and had excess stock to dump into South Africa’s market.
There was ready-for-dispatch steel export cargo at the ports of Saldanha and Durban, but these were being held up because Transnet was unclear if this cargo was part of the so-called allowed activities, the Tips report said.

Why Nigeria needs to manage electronic waste better

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In most of Nigeria’s cities, there are visible piles of refuse that have built up on roads, river banks and swampy land. These waste dumps smell bad and are breeding grounds for germs that cause diseases.

Perhaps less well-known is the electronic waste that’s becoming a serious problem in parts of the country. This is obsolete electrical and electronic equipment that has been discarded. Because Nigeria does not have a formal recycling sector for safe management of e-waste, every month about 500,000 tons of electronic and electrical equipment is dumped in workshops, open spaces, water sources and landfills. More than half of this is near end of life or completely damaged .

When rain falls on informal waste dumps, polluted liquids leach out. These liquids contain toxic chemicals and metals, bacteria and viruses. They find their way into the ground and surface water, and can be taken up by plants and end up in animals and people.

Electronic waste is one of the fastest-growing types of waste in some parts of the world. Globally, the eco-friendly recycling of e-waste is optimally low. So more than half of almost 50 million metric tonnes of e-waste generated worldwide ends up in landfills or is illegally transported.

Some of Nigeria’s e-waste is equipment that was imported when new and is discarded after its useful life. Some is imported second-hand. Out of an average of 500,000 tonnes of used electrical and electronics equipment imported into Nigeria, more than 25% is dead on arrival.

I have carried out several studies over the years into the environmental and health impacts of this electronic waste. My findings show that metals from waste have contaminated land and water and that these substances are harmful to living organisms.

My studies standard and advanced techniques to explore the genotoxic and mutagenic effects and potential environmental and health impacts of this electronic waste. Specifically, I have shown how e-waste from Alaba international market and Computer Village in Lagos State induced genetic damage in the cells of microorganisms, plants, animals and people.

What we found

Even though these e-waste dump sites are a health hazard, many people make their living on them. According to the International Labour Organisation, up to 100,000 people  work in the informal e-waste recycling sector in Nigeria. They collect and dismantle electronics by hand to reclaim components that can then be sold.

These people are at risk of infection and physical injury from handling waste. They are in danger of direct chemical poisoning leading to organ dysfunction, or disorders that are an indirect result of exposure to hazardous chemicals. E-waste can also induce genetic damage that could affect future generations.

In one study, we collected blood samples and cheek cell samples from teenagers who were sorting through waste at the Alaba international electronic market. We found their blood contained much higher levels of heavy metals than a control group.

Within this group, higher levels also corresponded with longer periods spent in contact with e-waste, genetic predisposition (that is an individual’s genetic susceptibility), previous or concurrent exposures to other substances (such as cigarette smoke and alcohol), and the concentrations and types of toxic substances the person had been exposed to.

Genetic damage is usually due to exposure to chronic concentration or doses of xenobiotics. The most worrisome aspect is when the effect is not expressed in an individual but transferred onto another generation before it is expressed.

Genetic damage has been implicated as a cause of cancer and certain other disorders such as Down syndrome and nerve disorders although our studies did not provide evidence of such linkages in Nigeria. We hope to provide evidence of such linkage in future studies.

What needs to be done

There is an urgent need for greater awareness of the dangerous substances found in the environment. The attitude of Nigerians towards waste disposal should change: waste should be managed sustainably by reducing, reusing, recovering and recycling materials safely.

The government should build properly engineered landfills to contain waste. Residential areas should be separated from electronic markets. Contaminated soil and water should be treated to protect workers and residents.

Bulk Material Handling Systems

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Construction and mining industries look set to be the major winners particularly with the emergence of the bulk material handling systems which were launched recently.

With those two industries expected to be adopters of the bulk material handling machine, it is its demand-driven activities that are expected to be its trump card.

Such activities include ore extraction, crushing, grinding, site-cleaning, demolishing and decommissioning and others.

Furthermore, continuous migration, growing urbanization, and high-value infrastructure projects with healthy investment drive growth of the bulk material handling market.

The bulk material handling systems market was estimated at US$ 4.5 Billion in 2019 and is projected to register a CAGR of about 2.8% over the forecast period.

“Rental services play a pivotal role in the bulk material handling systems market, as this equipment is capital intensive. Hence, to gain profits in this market, players can focus on offering rental and leasing services while also directly selling bulk material handling systems,” says a report analyst.

Key Takeaways of Bulk Material Handling Systems Market Study include a focus on expansion of footprint in the developing countries, which also involves moving new products into new markets such as the Middle East, China and India where construction industry registered a double-digit growth in the past decade.

As per the recent trend in the mining industry in the Americas and Asia Pacific, the demand for bulk material handling systems is expected to be from open or surface pit mining especially for coal and ferrous mining.

Since the rental and leasing service is a strong aspect of the bulk material handling systems market, many players have incorporated rental services as business segment while directly selling bulk material handling systems.

Band conveyor and stackers have been identified as the most recognizable bulk material handling systems as they are capable of accomplishing various tasks such as stockpiling and transportation, particularly in packaging and manufacturing end-use industries.

Bulk Material Handling Systems: Competition Scenario

The bulk material handling systems market is assessed to be a fragmented market, where market players such as Hitachi Construction Machinery Co., Thyssenkrupp, Kawasaki Heavy Industries, Ltd. Liebherr Group, and Sumitomo Heavy Industries are estimated to maintain their dominance in the market throughout the forecast period and have strong order inflow.

Caterpillar Robot Trucks Haul 2 Billion Tonnes Autonomously

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Caterpillar is again hitting a significant milestone in autonomous haulage—achieving 2 billion tonnes (2.2 billion short tons) hauled using Cat MineStar Command for hauling. Caterpillar has doubled the amount hauled in the 16 months since reaching 1 billion tonnes hauled in November 2018.

“In just a bit over 6 years we’ve safely hauled 2 billion tonnes—a milestone we achieved significantly faster than our competitors,” says Sean McGinnis, MineStar Solutions Product Manager. “This milestone makes Command for hauling the most productive commercially available solution, and it’s something mining people are noticing.”

Since commercially launching Command for hauling in 2013, Caterpillar has continued to improve the speed of implementation. “We’re launching Command on more sites and implementing it more quickly, so more of our customers can experience the safety and productivity gains that autonomous hauling delivers,” says McGinnis.

McGinnis credits input from Caterpillar customers for the success of Command for hauling. “One of the reasons that Caterpillar has been so successful in expanding Command and delivering results is because we listen to and partner with our customers. They identify features, functionality, and even the autonomous truck models they need for their operations.”

Over the last 6 years, MineStar Solutions has also continued to grow its expertise in autonomous operations—not only in hauling but also with autonomous dozers, drills and underground loaders. “The skills and knowledge of our MineStar team are unmatched in the industry,” says John Deselem, Global Autonomy Operations Manager. “Beyond getting better at implementing the system, we’ve become trusted advisors for mine sites looking to take advantage of what autonomy makes possible. We listen to their needs, then work together to build the ideal solution for their mine.”

To date, Caterpillar has 276 autonomous trucks in operation – and counting. “The push toward autonomous mining doesn’t show any signs of slowing,” says McGinnis. “We have projects in the works with a number of large mining companies either looking to expand their current autonomous haulage operations or implement new ones.”

The Caterpillar autonomous fleet is made up of Cat 789D, 793D, 793F and 797F trucks, as well as a fleet of Komatsu 930Es. The Cat 794 AC electric-drive autonomous truck will be ready for autonomous haulage later this year. Command equipped trucks have driven over 67.6 million kilometers (42.0 million miles) without a lost-time injury.

“Command for hauling has proven its value to mining customers,” says McGinnis. “That value is reflected in the rate at which the Cat autonomous fleet achieved this milestone. The fleet is growing quickly and production continues to climb as mining companies benefit from greater truck productivity, increased truck utilization, consistent truck operation, and reduced costs.”

Werner Pumps helping to ensure essential wastewater services continue during lockdown

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During South Africa’s extended national lockdown, aimed at helping to prevent the spread of COVID-19, Werner Pumps SA is open and able to assist municipalities and contractors to ensure essential services such as sewerage, wastewater treatment and infrastructure maintenance continues.

“At Werner Pumps, our offices and manufacturing facilities have been given to remain open to assist our customers working in essential services, which include sewerage and wastewater infrastructure repair and maintenance,” says Sebastian Werner, Werner Pumps MD. “Proper sanitation is critical to prevent and control the spread of disease.”

This is why the South African government has designated cleaning, sanitation, sewerage and refuse removal as essential services. Werner notes that this includes the maintenance and operation of water-borne sewerage systems, which is what the equipment manufactured by Werner Pumps is designed for. The company designs and manufactures high-pressure jetting and vacuuming equipment, which is also used in other essential service operations, such as controlling fly ash on the coal mines that fuel South Africa’s power stations.

“We are available to service all our customers’ needs, including emergency spare parts supply and repairs, as well as to advise clients and facilitate sales orders for all Werner Pumps products,” he concludes.

EVOLUTION OF PDS DEEPENS ITS SAFETY IMPACT ON MINES

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Proximity Detection Systems (PDS) started out as a valuable mechanism to warn operators and pedestrians of imminent danger, but today they play even more powerful health and safety roles.

These include gathering and analysing site-specific data that allows management to plan safe and efficient traffic flows. According to Anton Lourens, CEO of leading PDS developer Booyco Electronics, the rapid development of digital communication and sensor technology is opening many doors to higher safety levels.

“PDS can today locate vehicles and personnel in real time, giving mines the ability to recognise patterns in traffic movement,” says Lourens. “From this starting point, traffic management strategies can be developed to keep people away from trackless mining machinery (TMM).”

Importantly, the data collected can identify ‘hot spots’ where potential collisions could occur. This makes a systemic contribution to the mine’s safety, as management can adapt traffic management plans to  create segregation of people from equipment, and equipment from each other. This feeds constructively into the mine’s ongoing risk assessment responsibilities, and provides strong mitigation methods.

“This is giving PDS a vital role in each mine’s code of practice (COP), making these interventions specific rather than generalised,” he says. “Every mine has its own specific traffic conditions and operational requirements, for instance, and PDS helps provide insight into those conditions so that the COP is kept relevant and effective.”

He points to the Booyco Electronics Asset Management System (BEAMS) software suite as an example. This is essentially a central information hub that gives mines the insight they need into operational interactions.

“BEAMS analyses a huge amount of data from vehicles, uncovering important aspects such as unsafe patterns of behaviour,” says Lourens. “This gives management the basis for responding with strategies that mitigate risk and enhance safety.”

He also highlights the growing use of sensor technology in enhancing the health and safety benefits of PDS. These innovations have, as example, added a close-up and more accurate sensing approach to the traditional long-distance detection technology.

“We have designed our CXS range of PDS solutions so that we can readily augment the system architecture with sensors,” he says. “By combining various sensing technologies, we develop flexible solutions that make for safer working environments – as they are specific to customer and operational requirements.”

Lourens reiterates that the application of PDS technology can only be effective when based on a thorough risk assessment. This, he says, will ensure that the mine’s selection of a solution is relevant to their needs and conditions.

“This means a well-planned process that includes careful change management and real engagement with all involved,” he explains. “By taking the required steps, PDS can play a significant role in enhancing health and safety – while providing long-term benefits in productivity.”

Mevas- Global Leader in Machinery and Heavy Equipment Inspection Services

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Heavy Machinery Appraisal

In the mining sector, situations arise time and again in which assets have to be evaluated. Be it when there is a change of contractor in opencast mining or when technology is to be replaced on a larger scale. Especially when there is a change in ownership or when used construction machinery and transport vehicles are to be replaced, an external valuation or technical inspection is appropriate. Sometimes an appraisal by the supplier of the technology is sufficient. However, it is often the case that each supplier can and wants to evaluate only his own products. It becomes more difficult when someone is needed to evaluate excavators, wheel loaders and mining trucks from different manufacturers and maybe additional processing plants. Here you need an appraiser who has a wide range of experience with different makes. Such an appraiser needs good management as well as technicians in different countries who are also willing to visit a mine in a distant country.

Who can inspect and evaluate mining equipment?

It is good to know that such a service exists. The German company MEVAS specialises in the appraisal and valuation of mining assets and construction machinery. Experienced inspectors are available in various countries and are ready to travel even to remote areas. The team has experience with large excavators, dump trucks, crushing equipment and anything else used in open pit or underground mining. Through the large number of projects already completed, a wealth of experience exists in both the technical analysis of condition and the evaluation of equipment.

How much does a mining-fleet appraisal cost?

The question of the price for evaluating a fleet of mining machines is not so easy to answer. It logically depends on the number of machines and their size. Another important cost factor is the location of the equipment. Which inspectors can be deployed to inspect the machines on site? By what means can the inspectors get into the mine? Are the machines still in use or have they been parked on the side-line for some time? Overall, one can conclude that compared to the value of the machines, the valuation is an insignificant cost factor. When taking over a fleet or buying individual machines, it may well be worthwhile to have the repair costs calculated in their current condition. An experienced valuer can be helpful here.

Why to choose Mevas?

A German management leads since 2006 a team of international inspectors. The team knows about equipment conditions and about valuation. Engineers are familiar with machinery of Caterpillar, Komatsu, Hitachi, Sandvik and many other brands. The range of inspected and valuated items reaches up to PC 3000, ZX 1900 CAT 777, larger rock drills, bulldozers up to D10T and any kind of articulated dump trucks.

Experienced Team of Engineers

Mevas has done a couple of asset audits and valuations for quarry, mining and open pit equipment. Engineers have been in Russia on pipeline projects, in African goldfields, in coal mines in Kentucky and on huge oil plantations in Western Africa. Upon request, some projects and clients for which the company is or was active can be named.

For more details visit the website www.mevas.net please. Sample reports can be provided and the management is available to discuss any requirement for machinery appraisal or inspection.

Grinding Techniques – Supplier of specialised abrasive products

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Grinding Techniques has been a solution-driven manufacturer of specialised abrasive products since 1981, offering a wide range of high-quality cut-off and grinding discs, vitrified and resin bonded grinding wheels, specialised industrial diamond tools and a wide range of surface finishing products. In 2014, Grinding Techniques became part of the global Tyrolit group – a leading manufacturer of grinding and dressing tools.

At the forefront of bringing top quality innovation to application solutions, our extensive range allows a perfect product solution with optimum balance between cost and performance.

With over 90 million SMEs (Small and Medium Scale Enterprises) in Africa, we are perfectly positioned to meet any customer demand when it comes to the supply of premium abrasives.

Choosing abrasives require careful consideration of certain elements to ensure both productivity and profitability. In any economic climate, overall cost reduction is a constant challenge, and product longevity remains a key element. If the need to replace or change products during application is less frequent, costs are not only reduced, but the bottom line is immediately influenced.

With a vast product range inclusive of Tyrolit products we are best suited to service all major industries, including the Manufacturing sector – which is widely viewed as the key to economic growth for any continent, and known as one of the most profitable components of any business chain.

Boasting premium quality with excellent durability, and proven longevity, Tyrolit is undoubtedly the preferred choice when it comes to any cutting and grinding application.

The Tyrolit product range include three tiers, ranging from Basic and Standard to Premium, all offering application tools suited to various materials including metals, concrete, stone, and composite.

The Basic cutting and grinding range are engineered for enhanced performance, with minimised tool wear, while the Standard range not only offers cost-effective application solutions, but premium performance with all the international safety standards customers have come to expect.

For optimum results on solid steel and heavy-duty metals, with excellent stability during application, the Standard cutting disc is the perfect choice.

When it comes to the Premium product line, the absolute best is delivered in cutting and grinding performance, boasting extreme fast cutting rates and excellent stock removal.

Apart from being manufactured to achieve optimum results during application, the Premium Tyrolit Stainless Steel range is free of contaminants to avoid impairments  such as corrosion, pitting  and or a reduction in the fatigue strength to the material.

With a special formula and production method, the Tyrolit non-ferrous range is best suited for a wide range of non- ferrous metal applications as it not only delivers optimum performance with reduced application times but clogging and dulling of the cutting wheel is eliminated.

Available in different diameters and thicknesses, the Tyrolit cutting and grinding range will suit any application, from hand program to stationary operation.

Apart from cutting and grinding solutions, we also carry a range of coated and non-woven abrasives, the latest addition to our product range, to cater for a wide variety of surface conditioning applications.

Tyrolit non-woven abrasives are manufactured from abrasive grains that are fused to a three-dimensional support of nylon fibres. Uniform distribution of the abrasives combined with the softness of the material ensures a constant and consistent finish throughout the working process and product’s lifetime for applications requiring a mirror, satin, or brushed finish. The most important characteristic and benefit of non-woven abrasives is that you can change or manipulate a surface finish without changing the shape and geometry of the workpiece.

With our complete non-woven range, surface finishing has never been easier.

From blending a scratch pattern after stock removal and achieving a matt finish, to reworking the same matt finish to a mirror finish with any of our light de-burring wheels, buffing wheels, or polishing compounds, you can restore and renew any surface.

Our non-woven abrasives offer exceptional product longevity and are available in different sizes and derivates.

At Grinding Techniques, we do not only offer premium quality products to your fingertips, but proven longevity of our product line could boost both output and profit of your business in the long run.

For a bespoke solution, contact us today.

Grinding Techniques – Your application, Our solution

+27 11 271 6400 | info@grindtech.com | www.grindtech.com

START WITH CHUTE DESIGN TO REDUCE DUST, SAYS WEBA

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Many industrial facilities, mines and power stations rely too much on dust suppression and extraction systems, when the real answer is to improve the flow of material through well designed chutes.

 

This is the considered opinion of Weba Chute Systems technical director Alwin Nienaber, based on decades of experience in this field. His view is that 50% to 80% of the dust problem around conveyors and transfer points can be resolved by applying the right chute system design and positioning equipment correctly.

 

“Many of the dust suppression and dust extraction systems that are applied in these applications are expected to do more than they are capable of,” says Nienaber. “A preferable approach is to get the chute design right first, and then apply these other systems to deal with the residual dust load.”

 

He explains that the advantages of doing this extend well beyond the health and safety benefits. He has seen more than a few situations where the dust created by a poorly designed chute can prevent personnel from moving or working in that area. This often prevents the checking or maintenance of critical equipment during operating hours, requiring more downtime to wait – literally – for the dust to settle.

 

“In examples like this, excessive dust can reduce an operation’s efficiency, so there is an opportunity to improve overall productivity by fixing the dust problem,” he says. “Other equipment in these areas also gets heavily coated with dust, and needs regular cleaning to ensure optimal performance. Cleaning becomes yet another avoidable cost.”

 

To address excessive dust creation, a good chute design is based on understanding the physics of material flow – and avoiding uncontrolled velocity and impact. A lack of control over the way material flows will degrade the material and create higher levels of aeration – which is what leads to dust dispersal.

 

“Our philosophy at Weba Chute Systems is to ensure that material flows more easily and remains consolidated as a homogenous stream,” he explains. “We base our designs on the ‘supertube’ effect, which also allows the controlled transfer of material onto the conveyor belt. Not only does this reduce dust, but it also cuts down on the wear rate of the belt itself.”

Kavango Resources restarts drill programme

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Kavango Resources PLC (LSE:KAV, OTC:KVGOF) has told investors that drilling is about to restart on the company’s Kalahari Copper Belt (KCB) project area following a scheduled summer break.

Drilling will resume to complete the sixth and final hole in the programme, rounding off a total of 1,640 metres of drilling across all the holes.

The remaining hole, KCBRD006, is targeting a major stratigraphic structure identified by its Controlled-Source Audio MagnetoTelluric (CSAMT) surveying.

“Through our innovative use of CSAMT, Kavango has identified major structures for the first time on our KCB licences,” Kavango chief executive Ben Turney said in a statement.

“Our ongoing drill programme has subsequently confirmed these to be associated with deformation, fluid flow, and alteration. This could be a game changer in exploration for a new generation of drill targets on the KCB.

“Given the large size of our KCB licence package, Kavango is currently working to optimise and prioritise these. Our COO Brett Grist is presently in Botswana with our senior consultants, the results of which work are expected to refine our 2023 KCB exploration strategy”, he added.