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Different Sides of Industrial Fire Hazards

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Because damage can be widespread and severe, responders need effective and rapid consequence modeling of the hazardous materials emanating from a fire.

Fire and explosion accidents are of major concern to the owners and operators of refineries and petrochemical, gas processing, terminal, and offshore facilities. Statistics have shown that the majority of monetary loss in these types of complexes is due to fire and explosion.

According to statistics, 77 percent of the monetary loss in refinery and petrochemical complexes is due to fire and explosion.1 The breakout of accidents due to fire and explosion is 65 percent vessel (container) and vapor cloud explosion and 35 percent fire. The causes of these accidents are mostly attributed to mechanical issues, process upset, and operator error.

Fire in an industrial setting can pose a number of hazards for the facility, its personnel, and the surrounding communities and can result in an assortment of damage. The release of a flammable material may result in several scenarios: a fireball, pool fire, flash fire, flare or jet fire, and an unconfined vapor cloud explosion.

Two of the main inherent hazards associated with fires are thermal radiation and smoke. Smoke is defined as the products of combustion, including toxic gases, water vapor, and carbon soot particles. The smoke created from fire poses two types of danger. Soot particles may obscure visibility, and hazardous chemicals may constitute a health hazard due to inhalation and eye irritation.

A fire also may present indirect hazards. One is its possible impingement on a vessel containing liquid, such as a large storage tank. In this circumstance, a condition called BLEVE (Boiling Liquid Expanding Vapor Explosion) may occur. Boilover is a second indirect hazard caused by the effects of a fire. Boilover is especially dangerous when water is used to put out oily hydrocarbon liquid fires from a vessel. In the following paragraphs, we describe each of the above items in more detail.

Types of Fire Hazards

Thermal radiation. One of the main dangers of fire is its thermal radiation and the effect of that radiation on people and property. Thermal radiation diminishes with the inverse square of distance. The American Petroleum Institute and TNO, a Dutch research group, have published books explaining how to estimate the thermal radiation impact and the radiation’s estimated damage potential based on distance from a fire. According to these guides, the thermal radiation necessary to generate second degree burns on exposed skin is 9500W/m2 (~370 C), given an exposure duration of more than 20 seconds.

Smoke. Fires generate smoke, which is a mixture of soot particles, toxic gases, and water vapor. Factors such as smoke yield, fire size, particle size, and ambient conditions dictate smoke’s transport into the environment. Studies show that soot particles can be generated in a range of 0 to 20 percent of fuel by weight during a pool fire. However, the air-to-fuel ratio and the amount of carbon in the molecular structure of chemicals play a major role in soot yield.

A higher soot rate is expected for a large pool fire with heavy hydrocarbon fuels. Soot particles in a range of 0.01 to 10 microns are respirable and can penetrate into the alveolar region of the lungs. A mean soot particle size for the majority of these fuels can be considered 5 microns. The generated soot particles may adsorb toxic gases from the products of combustion, which present public health concerns due to the inhalation potential of these toxic particles. Given this, the downwind dispersion and deposition of these particles and their effects on the environment and humans is of major concern.

For example, consider a pool fire of 4500 Kg crude oil in a diameter of 40 meters that generates a soot particle plume. The soot particles yield a maximum of 20 percent of crude oil mass. The weather conditions are assumed to be unstable with a wind speed of 5 m/s and ambient temperature of 70º F.

Soot particle concentrations are considered in the three isopleth levels of 1, 10, and 100 mg/m3. In this case, the soot particles are rising to high elevation due to high temperature and buoyancy. Thereafter, the soot particle plume starts to touch the ground about 1,200 meters distance from the fire source. In this example, calculations show soot particles can expose a region of 4,500 meters distance, after two hours of simulation, which would represent the area to be notified of possible evacuation or shelter-in-place.

Ground-level soot particle deposition occurs in a wide area with a distance of 8,000 meters. The isopleth concentrations on the ground are defined in the three levels of 1, 10, and 100 mg/m2. This mapped information helps hazmat and emergency responders to identify the high impact areas of soot particle deposition for immediate evacuation. However, it should be noted that wind speed and direction, pool fire size, soot yield, and soot particle size can change the impact of the soot plume on the environment and the population located near the fire.

Deliberate ignition

Fire can sometimes be a great tool for mitigating a hazardous chemical’s potential impact. The technique of igniting gases containing hazardous chemical substances has been successfully used for many years at oil and gas well sites. A prime example is the sour gas from wells; considerable amounts of hydrogen sulfide (H2S) are contained in the natural gas.

Hydrogen sulfide smells like rotten eggs and is extremely toxic and irritating, even in a lower concentration such as 100 ppm. The dispersion of 40,000 ppm H2S in the sour gas can create a large hazard zone in the ambient. However, igniting the sour gas will produce CO2, CO, and a small amount of SO2, plus unburnt H2S, with no ground-level impact of the H2S. Therefore, fire can sometimes serve as an effective mitigation technique for hazard reduction.

BLEVE (Boiling Liquid Expanding Vapor Explosion)

BLEVE is a phenomenon that is caused by an external fire impinging on a storage vessel, causing the heating of the liquid contents with a resulting pressure buildup. If the vessel’s relief valve is not designed to vent the vapor as fast as it is generated or the relief valve malfunctions, then the vessel may fail completely, resulting in an explosion with vessel fragments being projected over the surrounding area. These fragments have the real potential to puncture pipes or other vessels in the vicinity of the explosion, causing a domino effect. Fragment projectiles traveling distances of up to one mile have been reported in a BLEVE.

Boilover

When fighting semi-enclosed oil or petrochemical fueled fires using water, a secondary hazardous event called boilover may occur that is extremely dangerous. Some of the water will sink to the bottom of the tank or other vessel due to density differences, which will result in the formation of a water layer. The heat from the fuel will ultimately boil the water, creating steam. The rapidly expanding steam expels the fuel upward to boil over and out of the container, discharging the still-ignited fuel onto a large and uncontrolled area outside the container. The best way to prevent this phenomenon is to open the valve at the bottom of the tank to drain the water.

A common household example of this phenomenon can occur when water is used to put out a burning pan of cooking oil.

Vessel Venting/Flare

When dealing with a vessel that is about to explode, one option is to vent and burn the discharging material, basically turning the explosive event with its uncontrolled disaster potential into fire which has a lower hazard impact and is more controllable.

Conclusion

This article has exposed the many faces of fire hazards and fire damage possible in an industrial setting. The details presented highlight the need for effective and rapid consequence modeling of hazardous materials emanating from a fire. Such modeling can help firefighters, hazmat teams, and other emergency responders properly study and better understand the impact of the many hazards associated with fire, such as thermal radiation, toxic smoke, and particulates, thus enabling better situational analysis and more informed decision making during and after a fire event.

Such analysis and decision making permits faster life-saving measures to be undertaken regarding evacuation, shelter-in-place, and other essential response actions. In the end, these measures help to reduce the potential for injury, loss of life, and property and environmental damage.

Fire extinguishers: Everything you need to know before you buy one

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Fire extinguishers can stop small accidents from turning into full-blown catastrophes. Whether it starts with a pan of oil left to smoke while you’re checking on the kids or a plugged-in curling iron left beside a curtain, small blazes aren’t all that uncommon in the modern household. But fire can spread quickly — and a singed curtain or blackened pan are nothing compared to a seriously damaged home.

Fortunately, fire extinguishers can help stop that escalation, if you have the right kind, at the right place, at the right time. Problem is, many of us don’t know much about when and how to use fire extinguishers — if we even have one.

That’s where we come in. Here are all your questions about fire extinguishers answered.

Are there different types of fire extinguishers?

You bet there are. When you shop for fire extinguishers, they come with classifications (A, B, C, D and K) corresponding to which fires the model puts out. Here’s a basic breakdown of each letter represents:

A: Fires from wood, cotton, and cloth

B: Flammable liquids (cooking sprays, gasoline, etc.)

C: Fires resulting from live electricity

D: Flammable metals

K: Cooking oils (restaurants must have these kinds)

Some extinguishers will put out a variety of fires. It is not uncommon for some to have A, B, and C capabilities. It indicates they can put out all common kinds of household fires.

Moreover, Underwriters Laboratories measures the effectiveness of each extinguisher relative to the type of fire they put out. When you read a label, it might say the unit has a 3-A rating. The higher the numeric rating, the more effective it is at putting out a type of fire.

Does weight matter?

Fire extinguishers do come in different sizes. Generally, the heavier it is, the more extinguishing power it provides. However, wielding a 10-pound model in the midst of an already chaotic moment might be a little more than you want to handle. Striking the right balance between size and functionality is important — and the right choice will largely depend on what you feel comfortable handling.

For specific areas, you may consider smaller units — such as 5-pound canisters for the kitchen. These are easier to grab and maneuver, making it easier to put out a small fire. Some even attach above the stove. If you go this route, buy one that has pressured cans that pop open from the heat of the flames, releasing baking soda.

You can also buy even smaller (2-pound models) for your vehicle. It is a wise option to have on hand in case your car engine catches on fire.

How many extinguishers should I have in my home?

You should have at least one near your kitchen, where most common house fires start. If you live in a multilevel home, consider having one for each level of your home. Along with placing one in the kitchen, have one near the exit of your house as well. It can ensure a safer getaway if flames are close to your house’s entry points.

grilling-4x3-cnet-smart-home-9344-026
It’s best to have a fire extinguisher on hand when you’re cooking — even if you’re outdoors.Josh Miller/CNET

How do I use them?

Use the PASS method to put out a fire. To start, you want to stand 6 to 8 feet away from the flame. Next, remove the pin to operate. Aim the extinguisher at the base of the fire, then squeeze the lever. As it discharges, use a sweeping motion (think side to side) to put out the flame.

After the fire goes out, watch it closely to ensure it does not start again. And if it does, follow the same steps.

If the fire gets out of control, the best course of action is to get to safety and allow emergency services to assist with fighting the flame.

How long do extinguishers last?

Some household fire extinguishers contain dry chemicals. Over time, these chemicals can lose their charge. Further, with compressed gas units, the seals loosen over time, resulting in leaks.

You can determine how long your unit lasts by examining the expiration date on the tag. Most models last anywhere from five to 15 years. And with some models, you can have them professionally recharged to extend their life.

To see if your extinguisher is in working condition, you need to inspect the pressure gauge (if applicable) located at the top of the extinguisher. If the needle is in the green area, then it should work. Moving forward, set up a time each month to inspect the pressure gauge. Doing so ensures your model will work when you need it the most.

Are extinguishers rechargeable?

There are multiple types of extinguishers available. Some are for one-time use. Once you discharge them, you will need to replace the unit, as they will not be fully operational as intended for emergencies.

Meanwhile, some models do have recharge capabilities. With these, you need to recharge them once you use them or during long periods of inactivity. To do so, a certified fire equipment dealer must do the recharge for you. You can use this directory to find a dealer near you.

Other considerations

Some extinguishers (cartridge-operated and carbon-dioxide) will not have gauges. For cartridge-operated units, check the indicator to ensure it is depressed. Meanwhile, in the case of carbon dioxide models, weigh the unit, then compare the weight to the information on the tag. If there is a substantial difference, then it indicates your extinguisher could be empty.

Another part of the monthly inspection involves checking the tamper seal. Inspect it to make sure it holds the pulling pin and does not have any damage.

You also want to check the hose for damages or any signs of leaks. If you notice some, and the model has recharge capabilities, take it to a certified specialist for repair.

You can also keep your home and your loved ones safe with these helpful guides:

ZIEGLER delivers first tanker with new ALPAS and new Z-Control

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ZIEGLER has delivered the first tanker, a TLF 4000, with the new ALPAS super structure and the new Z-Control.

The Gangelt fire department is the first customer to receive a tanker with ALPAS and Z-Control of the latest generations. ALPAS of the latest generation offers up to 30 % less weight compared to the previous super structure as well as up to 10 % more space volume due to protected arrangement of the shutters on the roof.

ZIEGLER delivers first tanker with new ALPAS and new Z-Control
Hans Mayr (Head of Sales Germany) officially hands over the vehicle to the Gangelt fire department

You can find more information about ALPAS of the latest generation here: https://www.ziegler.de/the-new-alpas. The new Z-Control also offers exciting innovations: The user guidance is intuitive and self-explanatory, which makes the pump control even easier and usable for everyone.

An assistance system for warnings and errors is also built in. More information about the new Z-Control can be found here: https://www.ziegler.de/the-new-z-control.

ZIEGLER delivers first tanker with new ALPAS and new Z-Control

The vehicle also has a 6,000-liter water tank, a 500 + 200-liter foam tank, an Alco APF 3-C electric roof-turret with lift and operation via Z-Control as well as a ZIEGLER ZW 800 electric bumper turret, also operated via Z-Control and has a total weight of less than 18 tons.
Basic Information

  • Type TLF 4000
  • Customer Gemeinde Gangelt
  • Chassis Type MAN TGM 18.320 4×4
  • Wheelbase 4,200 mm
  • Performance 235 kW / 320 PS
  • Total weight 18,000 kg
  • Water tank 6,000 l
  • Foam Tank 500 l + 200 l
  • Pump ZIEGLER FPN 10-3000-1H
  • Cabin / Crew Original MAN C Compact cabin, 1+2
ZIEGLER delivers first tanker with new ALPAS and new Z-Control

Additional Special Equipment

  • ZIEGLER Foam System 96
  • ZIEGLER Top-Integro Line marker light
  • Side LED marker lights Z-Vision Side
  • Tailgate with integrated shutters
  • Eletrical roof turret Alco APF 3-C withlift and operation via Z-Control
  • Electrical front turret ZIEGLERZW 800 with Z-Controloperation
  • Self-protection system
  • Pneumatic lightmast with4 LEDheadlights

First Quantum unveils US$1. 35 billion package of new projects at Mining Indaba

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Together, the two investments represent the largest investment in Zambia since FQM’s Sentinel project was approved in 2012 and are the first step in realising the government’s vision for the mining sector, which includes increasing production to 3 million tonnes of copper a year within the next decade.

Doubling down on Zambia

Commenting on the announcement, Minister of Mines and Minerals Development Paul Kabuswe said, “We are extremely positive that this phenomenal investment will translate into tangible benefits for our people in terms of jobs and participation in the supply value chain.”First Quantum’s representative, Dr Godwin Beene, said the mining company has always been deeply committed to Zambia, with 78% of its annual global financial contributions paid over in Zambia, but that recent years had been characterised by an unhealthy stalemate.“These investments have been waiting in the wings for years now, and it is deeply gratifying to me that, through these two major projects, First Quantum is committing itself to a long and bright future in Zambia, to the benefit of the company and the nation jointly.”

Safeguarding the presentKansanshi has been the lynch pin of Zambia’s copper mining industry over the last decade and a half, and was the first of the three massive, ultra-modern copper mines that have put North Western Province on the mining map. In 2020, Kansanshi paid more than 495 million in taxes and other public contributions to Zambia, a significant portion of the total First Quantum contribution to the country of more than $850 million. However, as with all mines, ore grades have deteriorated over time, and without a pit expansion and realignment, together with significant investment into the processing facilities, the mine was destined to come to an early end in a matter of years.First Quantum Minerals has now announced that it will proceed with this major investment, which will cost approximately 1. 25 billion to undertake, and is known by the company as the S3 project. The project will extend the life of the mine until the 2040s, increase copper and gold production by around 25%. It will also add approximately 800 permanent jobs, and a further 1 800 during the construction phase. Crucially, it also safeguards the futures of the 8 500 people already employed at Kansanshi.

Building for the future

The new Enterprise nickel mine, located approximately 14 kilometres from FQM’s Sentinel mine in Kalumbila, has also now been given the go ahead, following FQM’s pledge this week to invest a final $100 million. It is expected to be operational within 12 months’ time, and will employ approximately 700 full time staff.Zambia has long been synonymous with, and economically dependent upon, the copper mining industry. Minerals’ diversification has been a vital national aim of the New Dawn Government, and with the announcement it is now a distinct reality. Once operational, the Enterprise mine will be a top 10 global nickel mine, producing some 30 000 tonnes of nickel in concentrate annually, making Zambia Africa’s preeminent nickel producer. Enterprise’s high grade nickel sulphide deposits provide precisely the type of nickel that is required to manufacture batteries for Electric Vehicles (EVs) thus positioning Zambia as a producer of strategic metals, namely copper and nickel, that are vital to the production of new technologies and the ‘energy revolution’.“The Government deserve a great deal of credit for the approach they have taken since this administration commenced last year. They want to see a radical improvement in the size and scale of the industry over the next decade, confident in the belief that when mining does well, so does Zambia. These things do take time to come to fruition, but it does feel today like we are entering into a new and better future for the industry,” concluded Kabuswe.

Nkwe Platinum introduces solar-powered water system to community

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The pumps installed on the water borehole and storage tanks are powered by a complete solar system. In addition to providing round the clock water for the members of the community, the solar system also powers a security electric fence for the water supply infrastructure, making it a self-sustaining unit. The community will now have access to over 55 000 litres (continuous flow) of clean water from a pipeline which spans over 2 kilometres within the community. Taps and water troughs are stationed at various strategic points along the pipeline to cater for both the community and livestock.Commenting on the project, Pudieswana Lekoadu, Ga Mpuru Community Liaison Officer, said, “We are really pleased with the new solar-powered water supply system. The community waited for over 2 years for Eskom power supply to no avail. The mine has immensely helped the community with this alternative and sustainable energy source which has enabled the provision of clean drinking water for us and our livestock. In the past, we used to get water from far away, but this is no longer the case. The community is very happy that water has been brought closer to their homes here at Ga Mpuru Village.”

Benefits of water storage tanks

The advantages of using water storage tanks include the allowance of instant water supply during any point of the day when the demand exceeds the water supply using the solar-powered water pump. Emergency water storage is available from the water tanks, in case of pump failure or low irradiance (during mornings or evenings as well as on a cloudy day). Also, this system has brought clean water to relatively dry sections of Ga -Mpuru village that had not intercepted any water during the company’s drilling campaign.  

This solar-powered water system forms part of Nkwe Platinum’s second-generation Social and Labour Plan, which enables Local Economic Development (‘LED’) projects in the form of clean water supply to the local mine communities over the next few years.To date, Nkwe Platinum Limited has spent over R45 million on its Social and Labour Plan. The investment included the upgrading of the Garatau Community Access Road, as well as adult training and education, bursaries, learnerships, internships, traditional leadership training and excavator operations, which have benefited the surrounding mine communities of the Zijin Garatau Platinum Mine.Zhiyu Fan, the MD and CEO of Nkwe Platinum Limited said, “The successful implementation of this solar-powered water supply system highlights the importance of the mine development being closely related to the sustainable development of our surrounding communities. It serves as an example of our commitment to this core belief. We are honoured that it contributes to the improvement of the lives of community members living around the mine.”

President Cyril Ramaphosa’s address steers SA mining in the right direction

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President Cyril Ramaphosa’s address steers SA mining in the right direction

Dineo Phoshoko | May 10, 2022 | Analysis Articles CEO Talk Event News Featured Industry Insight Mining Indaba

President Cyril Ramaphosa’s address steers SA mining in the right direction

President Cyril Ramaphosa’s speech at the Investing in African Mining Indaba noted the successes that can be achieved if the public and private sectors work together.

The Minerals Council took note of the President’s commitments for his government to remove obstacles blocking growth of the mining industry and to support this critical sector of the economy.

President Ramaphosa’s comments on the second day of the conference are a welcome acknowledgment of the role South Africa’s mining industry has played in stabilising the fiscus and the country’s economy in 2021 for the second consecutive year, creating jobs in a difficult economic environment, and keeping its workforce safe during the Covid-19 pandemic since early 2020. The industry has vaccinated three quarters of 458 000 employees, making it the leading economic sector in protecting its workforce.

Cabinet ministers have similarly acknowledged how important mining’s contribution has been during the past two years.

President Ramaphosa’s speech did not shy away from the difficulties the industry faces when considering investments to sustain and grow mines, or to explore for new mineral deposits. Mining companies are in a tough operating environment, with high levels of crime, expensive and irregular electricity supplies, and logistical bottlenecks on rail and at ports costing companies and the fiscus billions of rands.

“This is a constructive and realistic speech by the State President and it has highlighted the industry’s contribution to the country,” said Minerals Council CEO Roger Baxter.

“We have a high degree of resonance between the government and the Minerals Council on the components that will shape the industry for sustainable, inclusive growth going forward. President Ramaphosa’s commitment to reducing legal and regulatory constraints is critical,” he said.

“From our side, we will continue discussions on improving energy security and returning Transnet to a position it can deliver contracted tonnages and ultimately fill its installed capacity,” he said at the Mining Indaba in Cape Town.

Structural and policy reforms

President Ramaphosa acknowledged South Africa’s ranking of 75 out of mining jurisdictions in the latest Fraser Institute’s survey needed the government to respond with urgency and purpose to remove impediments to growth and development of the mining industry. The Minerals and Energy Minister Gwede Mantashe has indicated that the DMRE will meet the Minerals Council to discuss the concerns raised by the survey and to work collaboratively to improve the perception of South Africa as an exploration and mining destination.

The Minerals Council supports and endorses the work done by Operation Vulindlela, an initiative by the Presidency and National Treasury, to drive structural and policy reforms to kickstart economic growth. The decision to allow embedded electricity generation of up to 100 MW from 1MW without needing a licence was the most important structural reform in a decade. Minerals Council members have more than 4GW of energy projects worth R65 billion that must be expedited. What is needed is a significant shortening of the timeframes related to environmental authorisation and grid tie connection processes.

Through Operation Vulindlela, the Department of Water and Sanitation is working towards resolving 80% of water use licences submitted by mining companies within 90 days down from years, President Ramaphosa said.

“This is an important development for the mining industry for which water is a vital part of their operations and another instance of the government addressing the constraints delaying investments, but we also need the DMRE to clear the backlog of more than 4 000 of mining and exploration permits to unblock extra investment in exploration and mining,” concluded Baxter.

Barrick’s Tanzania mines headed for Tier One Status

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Barrick’s Tanzania mines headed for Tier One Status

Dineo Phoshoko | Jan 26, 2022 | Articles CEO Talk Featured Focus in Africa Industry Insight News

Barrick’s Tanzania mines headed for Tier One Status

Barrick Gold’s North Mara and Bulyanhulu gold mines delivered a combined production of more than 500 000 ounces in 2021, meeting a key criterion for membership of the company’s elite Tier One portfolio.

The operations were moribund gold mines when Barrick took over their management two years ago. The within-guidance performance was achieved with both mines retaining their ISO 45001 safety and ISO 14001 environmental accreditations, in common with Barrick’s other operations.

North Mara is on track to become a fully integrated mine with the planned commissioning of the Nyabirama pit during the current quarter and the scheduled commencement of the Nyabigena pit in the third quarter of 2022. This is expected to add substantial resources and increased flexibility to its plan.

Bulyanhulu has been re-established as a world-class, low-cost, long-life underground mine as it achieved steady state production on the successful ramp-up of its mining and metallurgical operations in December 2021. Both mines are expected to report a significant growth of their mineral reserves, net of depletion, for 2021.

Increased footprint

Barrick has increased its footprint around Bulyanhulu through the acquisition of six highly prospective licences bordering the mine, and its exploration teams are also looking elsewhere in Tanzania for new opportunities.

According to Barrick president and chief executive Mark Bristow, the mines’ performance had been supported by reinforced Covid-19 protocols and the roll-out of vaccines to its workforce, 26.45% of whom have already been partially vaccinated and 20.25% fully vaccinated. Barrick is working closely with the country’s health authorities to supply four PCR machines to hospitals around the mines.

The mines also continued to recruit and upskill local people. Tanzanian nationals now account for 96% of their workforce, with 41% drawn from the surrounding villages. They are also strengthening their partnerships with local suppliers. Since Barrick re-entered Tanzania in 2019, it has spent more than $1.8 billion in taxes, salaries and payments to local businesses. It has also invested $6.7 million in community education, health and infrastructure projects.

Referring to Barrick’s recently published Human Rights Report, Bristow said the environmental and other issues it had inherited from the mines’ previous operators had been or were being settled.

The company’s significant progress on this front was exemplified by last month’s landmark completion of the restoration of North Mara’s tailings facility pond to within its permitted design capacity, Bristow said. The rehabilitated facility has been complemented by a new high recovery water treatment plant.

First ore for Kropz’s Elandsfontein plant

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First ore for Kropz’s Elandsfontein plant

Dineo Phoshoko | Jan 10, 2022 | Articles CEO Talk Projects

First ore for Kropz’s Elandsfontein plant

Kropz Plc has reached a major milestone with the first introduction of ore to the plant at the company’s Elandsfontein mine, located in the Western Cape in South Africa.

Now that ore has been introduced to the plant, the team is ensuring all the front-end circuits are balanced and running stably. The flotation circuits will then be commissioned and the reagents added in due course for the production of the first concentrate. Commissioning activities will transition into full scale ramp-up of the mining and beneficiation plant over the coming six months.

Mining activities commenced in October 2021, and significant volumes of ore are available to support the commissioning rampup.

CEO Mark Summers said, “The introduction of ore to the processing plant reflects the successful culmination of the construction phase and signals the commencement of the next chapter in the Company’s development. I would like to express my gratitude and appreciation for the tireless efforts of all of those involved in reaching this milestone safely and on time, despite the many challenges that the past two years have presented.”

Transnet approval

Transnet has provided the Kropz with a draft port access agreement to support the long-term export of Elandsfontein’s phosphate rock through the port of Saldanha. The contract is now being finalised between the parties. First phosphate rock ore exports from Elandsfontein are expected in Q1 2022.

It is anticipated that the imported reagents required for the recovery of phosphate concentrate will be delivered in December 2021, however, the supply chain situation remains a challenge, with the recent force majeure declared by Transnet Port Terminals in Cape Town on 21 December 2021, presenting further risk to the project. The Company is investigating options to off-load containers at alternative ports, and transport the commodities to the mine site by road to arrive in early January 2022.

The current and further potential effects of COVID-19, and the fourth wave of infections in South Africa remains a risk to successful completion of commissioning. The Kropz has mitigated this risk as far as reasonably practicable by compliance to the Kropz’s COVID-19 policies and procedures.

The company will provide further updates on the Elandsfontein project and further commissioning progress in due course.

Kumba partners with black owned community in R1.6bn mining contract

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Kumba partners with black owned community in R1.6bn mining contract

Dineo Phoshoko | Dec 17, 2021 | Articles CEO Talk Featured Industry Insight News

Kumba partners with black owned community in R1.6bn mining contract

Kumba Iron Ore has awarded a R1.6 billion mining contract to a new black owned and community-based joint venture to mine iron ore at its Kolomela Mine in the Northern Cape.

The joint venture represents another major advance towards Kumba’s goal of developing sustainable communities and businesses that help transform the South African mining industry. Kumba Iron Ore CEO Themba Mkhwanazi said, “Awarding a R1.6 billion contract to community-based miners is truly ground-breaking. It is the most tangible demonstration yet of Kumba’s commitment to the economic inclusion of local suppliers from our community.” 

The joint venture will start mining operations at Kolomela’s Kapstevel South project in Q1 2022, with an initial target of producing between 5-10 million tonnes of ore in the 1st year. As part of the contract, Kumba will provide ongoing upskilling and support to the joint venture to ensure quality and safety standards are met.

“This is a major step in showing how South Africa can unlock its growth potential through mining. We’ve always seen mining as a catalyst for broad-based development. This contract goes far beyond philanthropy or corporate social responsibility. This is the business of mining, and it will help ensure host communities become direct participants in, and beneficiaries of, the mining operations that take place in their own back yards,” said Mkhwanazi.

The contract marks the first in the industry where local community suppliers will be used to run mining operations of this scale and magnitude.

Black community-owned companies

The joint venture comprises four 100% black community-owned companies:

  • AND310 Mining Services is the majority shareholder at 60% and is 51% black female owned based in Mothibistad. Its MD Kabelo Burks Andreas has extensive mining experience with De Beers and BHP Billiton.
  • Postmasburg-based Andisa Holdings holds 15% shareholding and has been supplying loading and hauling services to the mining industry for more than 10 years. Its MD is Wayne Witbooi.
  • Matshla (Pty) Ltd services the mining and agriculture industries holds 10% shareholding. It is headed by Kennedy Botsheleng, who has nearly two decades of experience in the mining industry, in both underground and opencast mines.
  • Peontle Investment (Pty) Ltd also holds 15% shareholding and is based in Boichoko, Postmasburg, and is headed by Mangaliso Kies.

Joint venture spokesperson Kabelo Andreas, said the contract was a ‘massive step for transformation’ in the local mining industry, as the communities would for the first time operate and benefit directly from their local mining operations.

“This is very exciting and big step up for us. We may be small businesses, but we are all steeped in mining and in our communities. Now we will have iron ore under our fingernails and on our balance sheets. We want to be the proof that mining, through local models like this one, can deliver real value that can be shared by all stakeholders – from local businesses and our community. We’ve been walking a road of transformation with Kumba for several years, and this contract demonstrates their commitment to getting local communities involved in the decisions that affect their lives,” said Andreas.

The community mining contract marks the summit of Mkhwanazi’s drive to grow local and black owned business in the communities around Kumba’s mines by developing them as suppliers to its mines. In just five years Kumba has grown its local procurement spend from around R60 million on local procurement in 2016 to around R4 billion a year. The company now procures goods and services from 309 of community-based suppliers while providing training and mentorship to new companies wanting to join its supplier network.

“This contract underscores our commitment to developing host community suppliers with an additional focus on increasing the number of black-, women-, and youth-owned businesses around our mining operations,” said Mkhwanazi. “We’re 100% committed to taking a long-term view of development and creating thriving communities in line with our Sustainable Mining vision. When our mines are gone, the communities will remain, and it’s critical that we do everything we can to ensure they are still thriving and sustainable beyond mining.”

State reforms will unlock SA rail’s potential – ARIA

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State reforms will unlock SA rail’s potential – ARIA

Dineo Phoshoko | Oct 6, 2021 | CEO Talk Featured Industry Insight News Projects

State reforms will unlock SA rail’s potential – ARIA

According to the African Rail Industry Association (ARIA), the South African government’s proposed structural reforms to the rail sector, which will see private rail operators operating on the country’s core rail network, will breathe new life into an industry which is currently under severe pressure.

The reforms, announced by President Cyril Ramaphosa in October 2020 as part of the country’s Economic Reconstruction and Recovery Plan, aim to supplement Transnet’s capacity, migrate freight volumes from road to rail and stimulate broader economic growth. The plan initially proposed a deadline of October 2021 for its introduction. Speaking at the recent ARIA webinar Dr. Sean Phillips, head of the National Treasury’s Operation Vulindlela unit said that the current target date for enabling third-party operators in the freight sector was August 2022, with ongoing efforts under way to accelerate the time frame put on the table by Transnet.

ARIA estimates that only 17% of South Africa’s general freight currently moves by rail. “Transnet moved 215 million tonnes in 2019, down 5% from 2018, with vandalism often paralysing the country’s electric fleet. However more than 80% of the country’s 36 000km network has ‘significant capacity,” said Mesela Nhlapo, ARIA CEO.

Potential opportunities

ARIA research shows that 190 million tons of intercity freight and 20 million tons of bulk commodities currently move by road every year. Of this, around 58 million tonnes could move to rail almost immediately, with the sectors that would benefit including agricultural commodities, metals and minerals, cars, containers, hazardous chemicals and liquid bulk.

An estimated R45 billion in rolling stock alone would be required to service this volume requirement, which would provide a massive boost to the local rail manufacturing industry, with significant locomotive and wagon build programmes on the cards. Unlocking this capacity would also grow the rail services segment, finance markets and the advisory market, as specialist advisors would be required across the supply chain.

Nhlapo said it was important to note that third-party access in this context did not mean privatisation, but rather the use of the rail network by private sector rail operators at a fee, similar to how trucks pay toll fees to access roads to move freight across the country. Importantly, no new regulation is required to enable third-party access. Regional trading partners have already moved to this model, supporting interoperability and regional trade for pan-African operations.

“The value of this move to the state and Transnet would be significant. Right now, we have a massive network with excess capacity, which could unlock significant incremental cash flows through access fees from private operators. In addition, the existing infrastructure requires no extra state investment, as track maintenance costs should be largely fixed costs,” said Nhlapo.