South Africa is missing out on some of the riches on offer from the commodities boom as a rail network beset by problems affects its exports.

While coal prices recently soared to a record and iron ore is historically high, miners are being forced to stockpile supplies as state-owned Transnet’s rail network buckles under issues from cable theft to breakdowns, compounded by years of corruption.

Last year alone, more than $2 billion in potential coal, iron ore and chrome exports were lost, an industry group said.

Transnet’s lines are critical for moving bulk commodities, which have rallied further during the war in Ukraine, from mines to ports.

As lost earnings mount for miners, executives are becoming more frustrated by rail failures. It has become such a headache that South Africa’s leading thermal coal shipper, Thungela Resources, is considering buying overseas assets to limit its local exposure.

“South Africa is losing money, we are losing money as an industry and we as a company are losing money,” Thungela chief executive July Ndlovu said.

“It doesn’t make sense for us to concentrate our risk on exactly the same infrastructure that has cost us as much.”

Transnet’s 31,000-kilometre network includes a route taking high-grade iron ore from Kumba Iron Ore’s giant Sishen pit in the Northern Cape to the west coast, and one from Mpumalanga’s vast coal fields to the east coast.

Companies using it also include Exxaro Resources and Glencore.

The network has become a target of thieves who take cables, disrupting operations. It has suffered from locomotive shortages and has even suspected sabotage of infrastructure.

South Africa is losing money, we are losing money as an industry and we as a company are losing money

July Ndlovu, chief executive of Thungela Resources

Bad weather and frequent locust infestations that affect traction on the iron ore line have added to the list of problems.

Transnet is among state companies that were hollowed out by mismanagement under former president Jacob Zuma.

It said it has turned to general freight locomotives to haul some coal after part of its fleet designed to transport the fuel was grounded by shortages of spare parts.

That is partly due to suspension of supplier contracts after widespread state corruption.

Coal, iron ore and chrome companies missed out on about 35bn rand ($2.4bn) last year from contracted volumes that could not reach ports, the Minerals Council South Africa said.

Even as coal prices and demand surged in 2021 on the back of an energy crunch, volumes of the fuel transported by Transnet fell to a 13-year low, said Anglo American spin-off Thungela.

The producer is among those stockpiling coal, chief financial officer Deon Smith said.

Kumba’s iron ore stockpiles totalled 6.1 million tonnes as of December, an increase of about a quarter from the previous year.

The company will maintain similar stock levels this year owing to the rail challenges, spokeswoman Sinah Phochana said.

It transported 39.3 million tonnes on the rail network last year, but wants to raise output to fully utilise its annual rail capacity that should be 44 million tonnes.

Kumba parent Anglo is open to exploring ways to help Transnet transport more, chief executive Mark Cutifani said.

“If that means we need to put a capital contribution or partner in some way, we are very open to that possibility,” he said in Johannesburg.

Improving efficiency is “at the core” of Transnet’s recovery plans, it said told Bloomberg.

It has identified areas for collaboration with customers, and one key area is prioritising investment towards growth in high-margin flows such as bulk commodities, it said.

That will become even more important owing to the effects of the Ukraine conflict pushes demand for South African supplies and prices higher.

After presenting a highly favorable feasibility study in 2004, KCA was awarded an EPCM contract for the mill and heap-leach facilities at this US $104 million gold-silver production complex.  Ocampo is comprised of a 4½ million tonne per year heap leach operation with a grinding circuit, an agitated cyanide leach, a low grade Merrill-Crowe gold processing plant, and a high grade Merrill-Crowe gold processing plant with a dry stacked tailings facility to handle 1500 tonnes per day of high-grade ore from the underground mine.

KCA completed a feasibility study for this mill/heap leach project and was subsequently awarded an EPCM contract for this US$134 million mine.  Site construction began in early 2008 and startup in 2009.  Pinos Altos includes both a 2,000 tonne per day heap leach pad and a 4,000 tonne per day Milling operation which includes an agitated leach circuit, a Merrill-Crowe extraction plant, and a CCD circuit with dry stack tailings.

Mascota is a 1.35 mtpa heap leach operation.

KCA Supplied an 375 m3/hr Adsorption Columns and Modified Zadra Pressure Strip Circuit.

KCA supplied detailed engineering, fabrication, installation and startup of the plant for the Mascota ADR recovery plant near Chihuahua Mexico

KCA was awarded the EPCM contract for this expansion project in 2015 and completed the Engineering for the project in 2016.

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The project is designed as a 5,600 tonnes per day two-stage crush, rod mill / verti-mill, filtration, mixing and agglomeration plant. The pre-existing Merrill-Crowe plant is utilized for metal extraction and the agglomerated product is blended with crushed ore from the pre-existing heap leach circuit and delivered to conveyors stacking ore onto the new heap leach pad.

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KCA completed construction and commissioning efforts of the expansion in 2017.

The 160 ct diamond is the twenty-eighth diamond of more than 100 ct to be recovered at Lulo and was mined from the same alluvial mining block as the “Lulo Rose”, the 170 ct pink coloured diamond recovered in July this year, Lucapa MD and CEO Stephen Wetherall told delegates at Paydirt’s Africa Downunder conference, in Perth.

The 160 ct diamond is the sixth largest recovered at Lulo to date.

Wetherall on Friday told delegates at the conference that Lucapa was working to discover the source of the large stones in Angola.

GAP continuously strives to make its customers’ lives easier by offering market-leading equipment and identifying demand for a pump rental service. To enhance the customer experience and meet environmental ambitions, GAP has created a high spec Pump Service. The hire company wanted a pump partner who could supply it with reliable and high-quality equipment tailored specifically for its customers’ needs while also being able to withstand the rigors of the rental market.

“At GAP we work closely with our customers to understand what equipment they require and continually look to expand our portfolio and services as appropriate,” says Richard Broughton, Head of Pumps Services at GAP. “We have entered the pump rental market with our Pump Services division and needed to source a pump OEM that could offer innovative solutions, with the ability to adapt, build, and supply a turnkey range of dewatering pumps.”

GAP Pump Services is currently operating from six locations nationwide in the United Kingdom in Tilbury, Derby, Tewkesbury, Bury St Edmunds, Warrington and Harthill with plans to open further facilities very soon.

Atlas Copco is renowned for its high-quality pumping equipment and is a trusted brand worldwide. Its energy-efficient pumps are durable, provide excellent long-life high performance, and are easy to service.

“We approached Atlas Copco and were incredibly impressed with their commitment to innovation and their ability to listen to and understand the market requirements from a modern pump rental business,” explains Richard. “We had some very specific demands, and Atlas Copco rose to the challenge.”

“At Atlas Copco, we always try to accommodate our customers’ requirements and are as flexible as possible,” says Colin Baker, Regional Sales Manager UK & Ireland at Atlas Copco Power and Flow. “GAP offered strong and loyal qualities and we are delighted to have been chosen to supply the pumps to their new division.”

“At Atlas Copco, we understand pumps, their application and most importantly the people using them. We pride ourselves in providing effective solutions that are key to our customer’s success, whilst offering sustainable and reliable products,” states Saksham Dube, Divisional Product Manager Surface Pumps.

GAP had various demands from the pumps so they would best meet the requirements of their customers. First, the pumps required engines compliant with the Stage V emissions regulations as well as being able to run on hydrotreated vegetable oil (HVO) fuel. The pumps also needed to have long-run fuel tanks so that GAP’s customers could remove the need for hiring external fuel tanks and therefore eliminate the risk of ground contamination. Furthermore, the pumps needed to include solar panels so they can charge batteries while on standby in remote locations.

Another key demand from the pumps was their ability to provide diagnostics. Atlas Copco pumps feature smart control panels, and the Innovative Build feature allows for exceptionally easy field service and maintenance so users can reduce downtime.

The pumps needed to be robust, with exceptional corrosion resistance, and so were supplied with galvanized frames. Finally, GAP required the canopies to be painted in its livery and branding.

“Atlas Copco’s manufacturing facility in Italy worked hard to ensure all of the special conditions were met, appropriate testing had taken place, and the pumps were delivered in time. Already more than 200 pumps have been delivered,” continues Saksham Dube.

“We are proud to offer the Atlas Copco pumps as part of our portfolio. Their value proposition is very much aligned with our needs, and we continue to work together to look at new pump builds which allows us to advance our offering and better support our customers,” concludes Richard.

Atlas Copco’s pump range has been developed as a result of over 140 years of experience with construction customers worldwide and includes small portable pumps, electric submersible pumps, centrifugal drainage pumps, high head pumps, and wellpoint surface pumps.