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

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

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

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

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

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

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

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

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

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

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.

Barrick’s new underground mine ramps up gold production

Dineo Phoshoko | Oct 4, 2021 | CEO Talk Featured Focus in Africa Industry Insight News Projects

According to Barrick Gold president and chief executive Mark Bristow, the Loulo-Gounkoto gold complex is set to remain a major contributor to the Malian economy as it continues to replace the ore depleted by mining.

Speaking at a media briefing, Bristow said Loulo-Gounkoto was on track to meet its annual production guidance, with its new underground mine at Gounkoto — the complex’s third underground operation — ramping up production. Through successful exploration it is on track to increase mineral reserves net of depletion for the third successive year and promising results from the Yalea Ridge and Gounkoto-Faraba targets reaffirm the potential for further life-of-mine extensions. “Loulo-Gounkoto is one of the world’s greatest gold mining operations and it continues to confirm its status as a member of the industry’s elite Tier One¹ club as well as the largest private sector contributor to Mali’s GDP,” Bristow said.

Mines operated in Mali by Barrick and its predecessor Randgold have spent some $8 billion in the country in the form of taxes, royalties, salaries and payments to local suppliers over the past 24 years. To date this year, it has paid $318 million to the government in taxes, royalties and dividends and invested more than $13 million in community wellbeing projects ranging from health and education to economic development initiatives such as its Business Accelerator program, designed to equip budding entrepreneurs with management skills.

“In addition to the enormous value it creates for its stakeholders, Loulo-Gounkoto also aspires to a high level of social responsibility. Almost 40% of employees have been vaccinated against Covid-19 and 335 people have been vaccinated in the surrounding community. Security staff and other employees who come into contact with the community have undergone rigorous training in human rights. Work is also under way to secure the new certification standardized by the International Cyanide Management Institute.”

Loulo-Gounkoto is maintaining its commitment to the employment and advancement of host country nationals, in line with Barrick’s global policy, and people from the nearby Kenieba village have been successfully trained to operate key equipment at the new Gounkoto underground mine. The complex is almost entirely staffed and managed by Malian citizens.

Impala and local taxi associations join forces against disruptive unrest

Dineo Phoshoko | Sep 8, 2021 | CEO Talk Industry Insight News

Impala Rustenburg is collaborating with three taxi associations in the Rustenburg area, in initiating a campaign to collaboratively encourage communities to stand together against any disruptive unrest. The initiative is part of a series of partnerships with local taxi associations.

Impala chief executive Mark Munroe explained that the destructive rioting and looting that erupted primarily across two provinces in July affected the sustainability of businesses, safety of citizens, and economic stability of the country. “They also further damaged national efforts to control the deadly Covid-19 pandemic, while adding greater stress on our already struggling economy. We have to guard against this happening in the North West.”

As part of Impala’s initiative to increase vigilance and demonstrate its on-the-ground support and efforts to protect the wider community, Impala and three taxi associations in the Rustenburg area surrounding Impala’s operations took to the streets to distribute information flyers.

Taxi association involvement

Commenting on the joint initiative to discourage disruptive unrest, deputy chairman of BAMTA Association Levy Modise said, “The management of Impala joined forces with the taxi associations to make people aware of the fact that looting brings about the most unwanted thing in our country, which is unemployment. We have to safeguard all our jobs. Already, unemployment levels are high so let’s try to keep our jobs safe by not destroying property.”

Chairman of KARAMATA Taxi Association, Arthur Makgale,commented, “As taxi owners we have started to talk to passengers to encourage them not to damage anything for the sake of our future and the future of our children.”

Public relations officer of Bafokeng Taxi Association, Thabang Ramushu, added, “As a taxi association, we are against looting because it causes people to lose their jobs and businesses to suffer. We are promoting awareness and encouraging anti-looting and we thank Impala for their continued support and relationship with the BTPC.”

“We at Impala have, for three-and-a-half years, been putting in tremendous effort to instil a culture of high performance, accountability and care not just within the confines of our mining operations, but also within the wider community. We recognise that we are only stronger by working together and are committed to continuously contributing to the upliftment and development of our greater Rustenburg community,” concluded Munroe.

Advanced drilling technologies for Bloom Lake Mine

Dineo Phoshoko | Aug 19, 2021 | Analysis Articles CEO Talk Equipment & Services Industry Insight News Top Tech

Champion Iron has signed a Letter of Intent with Caterpillar to implement artificial intelligence based advanced drilling technologies on Cat equipment at its Bloom Lake Mine.

“We are honoured to collaborate with industry leaders like Caterpillar and Toromont Cat, and are confident that our workforce’s proven operational expertise and ingenuity will be an asset in deploying these technologies,” said David Cataford, Champion CEO.

The project will progressively implement a remote-controlled, semi-autonomous and fully autonomous Cat electric drilling fleet, utilizing the Technologies engineered, designed, and/or integrated by Caterpillar. With Champion contributing its experienced workforce, and Caterpillar’s independent dealer, Toromont Cat, its aftermarket support, the collaboration will aim to optimize Bloom Lake’s operational productivity and reduce energy consumption, while demonstrating the capabilities of Caterpillar’s advanced drilling technologies. A Drill-to-Mill strategy (D2M) is expected to be deployed based on a series of tightly integrated systems, driven by Cat MineStar solutions, designed to optimise the drilling, loading and hauling processes. D2M is focused on delivering improved milling performance by supplying optimized mill feed, while contending with dynamic operational conditions.

Real time data and AI

Using real-time data, artificial intelligence and analytics, Caterpillar’s integrated technology will support Champion’s ability to assess the status of machines, technologies, and material to enable more timely and accurate operational decisions and consistent execution across Champion’s entire mining value chain. The goal of the collaborative effort will be to deliver a fully integrated drill-to-mill technology solution powered by data connectivity and advanced analytics to ultimately improve workflow between the mine and plant, providing a more efficient end-to-end enterprise process that delivers more consistent raw material for final product specification requirements.

Cataford explained that the aim and vision of improving mining practices and ultimately reducing waste and energy use is the foundation of this collaboration. The entire Bloom Lake team has already demonstrated its ability to operate at a consistently high level, since commissioning the mine in 2018. “In doing so, we have continuously strived to improve operations utilizing the best existing and new prospective mining technologies. Drill-to-mill aligns with our core value of respecting the land that we exploit, as it will enable us to responsibly extract non-renewable resources using the best means possible,” he concluded.