spot_img
Home Blog Page 53

Structural reforms required to encourage investment

0

Structural reforms are needed to enable a more business-friendly environment aimed at encouraging investment in order to grow the economy.By Raymond Obermeyer*South Africa requires creative and innovative solutions to put the economy back on a sustainable financial path.The country has benefited in recent months from a commodities boom which provided an unexpected tax windfall.This has resulted in an unprecedented trade surplus – meaning that more capital has flowed into the country than out of it – helped to underpin the rand, contained inflation and kept interest rates at historically low rates. The state’s finances have benefitted from the mining sector’s stellar results through improved tax collections which has, in turn, increased calls for a universal basic income grant.No commodity boom lasts forever. What happens when the price of commodities inevitably cool, and the state’s finances are no longer able to benefit from better than expected tax collections? Any commitment to a universal basic income grant must be based on sustainable sources of revenue. All indications are that the recent economic tailwinds are not enough to alleviate the tenuous position of the country’s debt to GDP ratio or avoid further future ratings downgrades unless government is able to significantly reign in public sector expenditure.Covid-19 pandemic impact

South Africa’s economy was in trouble even prior to the Covid-19 pandemic, characterised by low levels of growth, growing unemployment and poor business confidence. The pandemic has exacerbated the challenges facing the country.A deteriorating debt position is a risk to the entire economy. A financial crisis and deep recession will ultimately diminish confidence and reduce investment appetite.The fragile state of the economy is reflected in the disappointing month-on-month manufacturing output figures. According to Statistics South Africa manufacturing production fell by 0.7% for the third consecutive month in June this year, indicating that a recovery in this sector has stalled and failed to reach pre-Covid levels. Expectations are that the July figures will be even worse which will weigh on the sector’s contribution to GDP. In line with this, the latest Absa Purchasing Manager’s Index has fallen to a 14-month low representing declining sentiment.

Structural reforms required to encourage investment
SEW-EURODRIVE managing director Raymond Obermeyer.

There is extensive research available showing a strong correlation between economic growth and social stability. The former must urgently be prioritised with quick wins from low hanging fruit. These include the introduction of a business-friendly regulatory environment which is aimed at restoring private sector confidence and encouraging investment into local operations.Labour laws need to be amended so that they don’t dissuade businesses from hiring staff. We need to increase the beneficiation of extracted minerals into higher-value products and urgently increase the country’s manufacturing output. At the same time our country’s youth need to be armed with the necessary skills to ensure their employability in a rapidly approaching Industry 4.0 world.South Africa requires creative but practical policies which enable inclusive economic growth, boost confidence and encourage investment. The country has the potential to create a more positive future for itself, fuelled by opportunities for greater levels of trade as a result of the African Continental Free Trade Agreement. The time is now ripe for meaningful reform.

Epiroc & Ivanhoe’s R150 million partnership

0

Epiroc & Ivanhoe’s R150 million partnership

Dineo Phoshoko | Jul 29, 2021 | Articles CEO Talk Equipment & Services Featured Industry Insight News

Epiroc & Ivanhoe’s R150 million partnership

Epiroc has won an order worth over R150 million for battery-electric mining equipment from Ivanplats that will be used to develop its greenfield mine in South Africa in the most sustainable and productive manner possible.

Ivanplats, a subsidiary of Canadian mining company Ivanhoe Mines, has ordered several Boomer M2 Battery face drill rigs and Scooptram ST14 Battery loaders. The new Platreef underground mine, which will trial the emissions-free machines during its initial development phase, will produce palladium, rhodium, platinum, nickel, copper and gold.

“It is encouraging that Ivanplats is considering going all battery-electric at Platreef, and we are proud to support them on this journey,” said Helena Hedblom, Epiroc’s President and CEO. “Battery-electric equipment is increasingly embraced by mining companies as it provides a healthier work environment, lower total operating costs, and higher productivity. The technology is now well established, and Epiroc is driving this change toward emissions-free mining.”

Emissions-free mining equipment

Ivanplats plans to use all battery-electric vehicles in their mining fleet at Platreef. “We want to be at the fore-front of utilising battery electric, zero-emission equipment at all of our mining operations,” said Marna Cloete, Ivanhoe President and CFO. “This partnership with Epiroc for emissions-free mining equipment at the Platreef Mine is an important first step towards achieving our net-zero carbon emissions goals while mining metals required for a cleaner environment.”

Boomer M2 Battery face drill rigs and Scooptram ST14 Battery loaders are built in Sweden, and are automation ready and equipped with Epiroc’s telematics solution Certiq. The equipment will be delivered early in 2022. Epiroc will also provide on-site operator and maintenance training to Ivanplats.

Epiroc will offer its complete fleet of underground mining equipment as battery-electric versions by 2025, and its full fleet for surface operations as battery-powered versions by 2030.

Economic impact of technology & automation in a pandemic

0

The COVID-19 pandemic has given rise to a unique set of challenges within the mining industry and the rest of the world.

By Dr Nombasa Tsengwa*

Aspects of our daily lives, as well as the global economy, have all been forced to undergo significant changes to keep up with the pandemic.The opportunity presented to businesses by the pandemic, in many cases, has been the push needed to drive pace over perfection when it comes to technology testing and adoption.

Migrating from mechanised mining to automation

Exxaro’s migration from mechanised mining to automation began long before COVID-19; the pandemic has accelerated the pace of our digital transformation journey, but it’s something we have prioritised for a while. Our Belfast mine is digital and connected, using data science, automation, and connected workers to increase throughput, streamline operational costs, and promote innovation and sustainability. We’ve rapidly deployed ‘the new way of working’ – which is digital – leading to reimagined business models and enabling remote work.South Africa’s world-class mining industry can generate additional wealth and create new employment opportunities on a large scale. As the pandemic continues and vaccination programmes are being implemented in some countries, we must not lose momentum from this accelerated digital transformation. Technology and automation can help us increase productivity, safeguard our workforce, decrease costs, and help fight climate change, thus contributing to South Africa’s economy.An obvious strategic step for Africa’s mining companies is to now focus on technological advancements that promote workplace safety, reducing the risk of health and safety incidents. New technology has had to be implemented and fast-tracked to adapt operations and processes to evolving conditions; this includes the detection and pre-screening of COVID-19 to keep the mines and surrounding communities safer. Health and safety risks can be alleviated not only through improved health and sanitisation systems, but by the business’ ability to move operations online to a cloud-based platform, making it easier to continue operations anytime and anywhere. Enhanced business practices also help to identify areas of concern that need to be addressed and allow for immediate intervention – a critical component in ensuring business continuity.This means that when the next COVID-19-type event occurs, mining companies would be less affected, as operations can continue remotely, with employees separated by a healthy distance or by screens.

Ensuring Africa’s mining sector does not fall behind

Internationally, automation and tech are being embraced in the mining sector as “Mine 4.0” is adopted. We must ensure that Africa’s mining sector keeps up with this digital transformation, otherwise, we will not be able to compete when it comes to pricing or productivity.Labour and the mining industry need to work together to establish a way forward that preserves health and safety, increases productivity, and has the best interests of mining communities at its centre. Both labour and industry should consider how to accelerate implementation of automation and remote operations, which could have mitigated the closure of operations of some mines as a result of the COVID-19 pandemic.

Operating machinery remotely is physical distancing at its most extreme, as it ensures that employees can work away from their colleagues and away from areas where they are most at risk. If industry and labour work together to retrain and upskill labour for these new technologies where possible, it will benefit all stakeholders – employees, businesses, communities, and our country.

Economic impact of technology & automation in a pandemic
Dr Nombasa Tsengwa is the MD of Minerals at Exxaro Resources. (Credit: Exxaro Resources)

The choices made by mining companies need to be beneficial to the long-term outlook of the business. We are responsible for deploying these new technologies in a socially responsible manner while remaining mindful of potential ethical issues that may arise as a result, like unemployment, wealth distribution, and the unintended invasive potential of connected gadgets.Due to the size of the industry and the nature of the business, making the necessary changes to facilitate choices and changes like digital transformation requires a hefty investment. These investments often involve financial assistance with extended repayment periods, making rapid changes difficult to adapt to as businesses need to consider the long-term cost implications. Businesses can mitigate financial risks by using scenario modelling; looking at controllable uncertainties for demand and supply and the triggers affecting revenue and cost; and formulating response plans that consider the capital expenditures these plans require. Once the decision has been made to invest in new and innovative technologies, business will be able to reap the benefits of a hyperconnected world.With an exceptional minerals endowment, the South African mining industry has the potential to supply more commodities to world markets, if we can harness tech and automation.

Economic transformation and the environment

Research shows that environmental damage is lower in low-income countries, however, as incomes begin to rise, so does the potential for environmental damage. As industries grow and develop, they begin to have a more damaging effect on our environment.Finding ways to develop industries in an environmentally friendly manner needs to become a priority and, as such, investment needs to be made in green technology. The Paris Agreement seeks to promote sustainable economic development and growth while actively finding ways to reduce the impact of global warming. Exxaro is committed to doing our part in reducing our carbon footprint and fighting global warming, which is why one of our goals is to be carbon neutral by 2050. On our journey to sustainability, we’ve found that embracing new, green technologies is key to achieving these goals.

Creating a safer environment for employees and surrounding communities

Tech and automation can also help safeguard the health and wellbeing of communities. In the wake of the COVID-19 pandemic, the industry has implemented stricter health and safety protocols to protect employees and stakeholders. Technology has been leveraged to set up pre-screening measures, contact tracing, and even smart PPE. In this way, mining businesses are shaping healthier workplace behaviours that should continue long after the pandemic.The pandemic and the threat of climate change have shown us that the African economy cannot grow and develop without proper investment into new technologies – that is true for the mining sector, and all other sectors of the economy too. This will require an ongoing commitment from both the public and private sectors to ensure that Africa is not left behind when the Fourth Industrial Revolution takes place.

Brikor acquires 40% stake in Zingaro Holdings

0

Manufacturer and supplier of bricks, Brikor Limited has acquired a 40% shareholding to the value of R50 million in Zingaro Holdings – a business that provides multi-product road transportation services for bulk commodities. Zingaro Holdings primarily operates in South Africa and mainly services short to medium distance routes in Gauteng, North West, Mpumalanga and Limpopo, with a fleet of more than 100 specialised vehicles.“Zingaro Holdings is well-positioned with substantial market share. There are also many synergies between Brikor and Zingaro Holdings and the Brikor board of directors believe it will ensure additional income and profit opportunities for the combined group,” says Garnett Parkin, Brikor CEO.Zingaro Holdings also specialises in providing turnkey services for mine activities, such as loading, hauling, stockpile management and haul road maintenance by using a wide range of specialised trucks and earth-moving equipment. Its specialised vehicles include tipper, low-bed and flat-deck trucks as well as various plant and mining equipment.

“The company has shown exceptional growth of around 20% per annum since 2013, with significant growth in revenue of 111% for the financial years 2016 to 2017. During the following financial year, revenue increased by 42.5%,” Parkin says.According to Parkin revenue growth is expected to stabilise at an increase of between 8% and 9% annually for the foreseeable future.Brikor also has an option until 30 April 2023 to buy the remaining 60% shareholding in Zingaro Holdings for R90 million in exchange for Brikor shares at an issue price of 15 cents per Brikor share.

Chris Griffith appointed Gold Fields CEO

0

Chris Griffith has been appointed as the new CEO and executive director at Gold Fields. Griffith succeeds Nick Holland and will take over on 01 April 2021.“We are delighted that an experienced executive of Chris’s calibre will join Gold Fields. He has deep-rooted operational mining experience and an impressive track record of delivering safe operational performance and leading effective change,” commented Cheryl Carolus, Gold Fields’ chairperson.Holland, who was due to retire on 30 September 2021 after 13 years as CEO of the company, has agreed to retire six months earlier to facilitate the leadership transition. “Nick has defined Gold Fields as it is today; a global, highly profitable and sustainable company, which is widely considered a leader in its field. In 2008, two-thirds of our production came from South Africa; in 2020 approximately 90% emanated from outside of South Africa with all our mines highly mechanised and increasingly automated,” Carolus said.Griffith, 55, was previously CEO of Anglo American Platinum. He resigned from this position in April 2020 to pursue other career opportunities and is currently on gardening leave until the end of March 2021.

“Creating value for shareholders is paramount, but at the same time the environmental and social sustainability of our Company and value creation for all stakeholders has taken on increased significance. We are confident that Chris is the right person to take the business forward,” Carolus said.Prior to Anglo American Platinum, which he led as CEO since 2012, Griffith spent four years as CEO of Kumba Iron Ore, another company in the Anglo American stable. A graduate mining engineer from the University of Pretoria, he had joined Anglo American in 1990 from JCI.In a statement, the Board paid tribute to Holland’s leadership at Gold Fields, which he joined as CFO at the formation of the Company in 1998 and led as CEO since 2008. Carolus highlighted that Holland prioritised safety and wellness at all the operations and during his tenure Gold Fields, has seen a marked improvement in its safety record. “At the same time environmental, social and governance issues have been fully integrated into the day-to-day management of the business, further entrenching Gold Fields’ vision of global leadership in sustainable gold mining.”“On behalf of the Board and all our 17 000 employees we want to thank you for the leadership you’ve shown over the past two decades and more. The Gold Fields of today is a testament to your vision, strategy and leadership,” Carolus concluded.

Standard Lithium commissions direct chloride-to-hydroxide pilot plant in Arkansas

0

In a further update to its commercial development activities in El Dorado, Arkansas, Standard Lithium (TSXV: SLI) has now successfully commissioned the hydroxide pilot plant that it will test as one of the technology options for lithium production at its South West Arkansas project.

The hydroxide pilot plant was designed and constructed by a third-party global water and process technology vendor earlier in 2022. The technology is housed in a self-contained unit and takes the lithium chloride feed produced by the company’s existing direct lithium extraction (DLE) demonstration plant; it then converts this feed directly into a lithium hydroxide solution using a novel ion-exchange process.

The lithium hydroxide solution generated by the hydroxide pilot plant will be sent offsite to another location operated by the third-party vendor to complete evaporation and crystallization work to produce battery-quality lithium hydroxide. This hydroxide pilot will be operated at the South West Arkansas project location for several months.

“The successful installation and commissioning of this hydroxide pilot is another example of the company’s approach to using novel technological solutions to build a new generation of lithium plants in North America. The testing and operation of this pilot gives our design team and project partners greater flexibility when we come to design the commercial plant at our South West Arkansas project,” commented Dr. Andy Robinson, president of Standard Lithium.

To the company’s knowledge, the project location at Lanxess’ South plant in Arkansas is currently the only location in North America where lithium is continuously being extracted from brine using a modern DLE process and being converted into both lithium carbonate and lithium hydroxide.

In the meantime, with sights set on expanding its resource holdings, Standard Lithium has also been conducting an extensive geological, geochemical and geophysical review of large regions of the Smackover Formation, which is located west of the South West Arkansas project. The company and its contractors are currently redrilling an existing production well deeper into the Smackover Formation.

Additionally, the front-end engineering design (FEED) and definitive feasibility study (DFS) work for Standard Lithium’s first commercial project is also fully underway. The project – known as Phase 1A – contemplates processing the brine that is currently being handled by Lanxess at its South facility, where the company’s continuously operating pre-commercial DLE demonstration plant is located. The results of the FEED study will be summarized in an NI 43-101 DFS report during the first half of 2023.

“Our first 1A project at Lanxess’ South plant is intended to be the first of many Standard Lithium plants in the region, and as a result, we are working to actively expand our resources in a strategic manner to capture the highest quality brine assets available in the Smackover,” Dr. Robinson said.

“Based on the successful operation of our DLE plant, and our knowledge of extracting lithium from the Smackover brines and producing battery-quality lithium products, our resource team and our Smackover Formation experts have spent almost 2 years identifying key areas in the Smackover Formation that we believe are the most prospective for large-scale, high-quality lithium brine resources.”

Shares of Standard Lithium shot up 4% by 12:35 p.m. ET on the TSX Venture Exchange. The lithium development company has a market capitalization of approximately $822.8 million.

Epiroc to acquire U.S. maker of excavator attachments

0

Epiroc, a leading productivity and sustainability partner for the mining and infrastructure industries, has agreed to acquire the business of Wain-Roy, a U.S. manufacturer of excavator attachments for the construction industry.

The Wain-Roy business, with a manufacturing site in Kronenwetter, Wisconsin, is part of Oregon Tool. The company’s customers are mainly in the United States. Wain-Roy has about 100 employees and annual revenues of about $24.7 million. 

“Wain-Roy is known for its high-quality products and competence,” says Helena Hedblom, Epiroc’s president and CEO. “This acquisition will strengthen our presence in the North American construction market and increase our capacity for manufacturing advanced attachments in that region.”

The acquisition is expected to be completed in the fourth quarter 2022.

For more on Epiroc’s mining expertise, visit www.Epiroc.com.

JV Article: Sprung Structures: High performance tension fabric alternatives to steel buildings for mining operations

0

Sprung Structures was founded in 1887 and evolved into a major manufacturer of high-performance tension fabric buildings for multiple industries. The company developed and patented the stressed membrane structure, an innovative alternative to conventional construction utilizing architectural membrane panels placed under high tension within a non-corroding aluminum substructure.

This technology is a result of today’s mining operations’ need for a faster, more flexible and cost-effective building solution. With recent supply chain challenges affecting the market, Sprung structures can be shipped and erected much faster than typical steel buildings.

The company’s  nine inch fibreglass blanket insulation performs well in extreme cold weather climates and large cargo doors are designed to shed snow and handle hurricane force wind loads in the world’s most remote locations. The only building structure left standing in Buras, Louisiana after Hurricane Katrina in 2005 was a Sprung structure.

Today, Sprung counts the world’s largest miners, as well as NASA, Lockheed Martin, the US Army Corps of Engineers, Apple, Tesla, FedEx and Google among its roster of clients, and the company built Tesla’s Model 3 production  facility in California in just a few weeks.

“We’re really the only permanent type of fabric structures on the market,” says Vice President Jim Avery. “We pioneered this whole technology – we manufacture, and ship what can be put up in just about any location.”

Avery adds that a concrete foundation is not required, and Sprung Structures can be assembled on dirt and asphalt. Sprung has completed over 12,000 projects in over 100 countries, and its structures meet most building codes and standards around the world.  Sprung’s military-grade aluminum alloy has advantages over steel construction, such as corrosion resistance, lighter weight, better performance, malleability, and durability.

“Initially, this technology was a temporary application, but these are engineered as permanent structures and designed to be relocated for multi-use applications with bolted connections that can be disassembled, reconfigured, and relocated,” Avery says.

“We’re very entrepreneurial, and we’re the inventor of the product.  We’ve done a lot of work in the mining industry and [have] versatility in the product. It’s not like conventional bricks and mortar or steel building, it goes up much faster, which is essential when it comes to mining,” Avery says.

Structures at Resolution copper project site in Arizona. Image from Sprung Structures

Sprung also leases its structures, dependent on one-to-three-year applications with an option to purchase in mines all over the world.

“We’ve only used our product from a fabric building perspective, because it does handle the extreme wind and snow loads,” Avery says. “We use aluminum, not steel, and our tensioning method is patented, which means you never have retention in the membrane in the life of the building.”

Sprung Structures has up to two million square feet of inventory in both its Utah, US and Calgary, Canada, manufacturing and distribution centers. The minimal foundation requirements in some cases contribute to overall cost effectiveness as operating costs are lower than traditional buildings.

Sprung Structures’ business development manager Pablo Noriega points out the company also specializes in state-of-the-art dining facility structures that are a vital hub for the workforce in a mining camp environment.

Fourteen applications include dining facilities, warehouses, distribution centers, truck shops, there are many uses, in expandable modular sections. “That’s the other great attribute to the product – you can add to it,” Noriega says.

Dining facility. Image from Sprung Structures.

“We have many [structures] on mine sites in very extreme locations from the coast of Chile to the peak of the Andes 4,300 meters above sea,” Noriega adds. “When we have to ship around the world, even the most extreme location is going to have the structure in a few containers, and everything is well organized.”

 “The moment when we arrive on site with the containers, and in every single structure, we provide you with our technical consultant, our membrane guarantee is up to 25 years on the membrane and 50 years on the aluminum substructure.” 

The preceding Joint Venture Article is PROMOTED CONTENT sponsored by Sprung Structures and produced in co-operation with MINING.COM. Visit www.sprung.com for more information.

Shell launches consortium to speed up electrification of mining vehicles

0

Oil and gas giant Shell (LSX: SHEL) is tapping into the mining electrification market with the launch of a consortium that seeks to help miners speed up the adoption of electric trucks and reduces emission without compromising on efficiency or safety.

The British multinational has attracted eight companies working on energy storage, ultrafast charging technologies and renewables to launch an end-to-end, interoperable electrification system pilot for 220 off-road vehicles.

The partners include Skeleton, Microvast, Stäubli, Carnegie Robotics, Heliox, Spirae, Alliance Automation and Worley.

Some of the key components of the power provision and energy management solution come from Alliance Automation, a multi-disciplined industrial automation and electrical engineering company.

Spirae, a technology company that develops solutions for integrating renewable and distributed energy resources within microgrids and power systems, and Skeleton, a global technology leader in fast energy storage, also apported their know-how.

Worley, in turn, is providing expertise in project delivery and consulting services for the resources and energy sectors.

Shell launches consortium to speed up electrification of mining vehicles
The end-to-end mining electrification scheme. (Courtesy of Shell.)

Microvast, a leader in the design, development and manufacture of battery solutions for mobile and stationary applications, leads the in-vehicle energy storage side of things.

The ultra-fast charging element involves solutions from Carnegie Robotics, a provider of rugged sensors, autonomy software and platforms for defence, agriculture, mining, marine, warehouse and energy applications.

Shell described the initiative as being critical since transport equipment comprises up to 50% of mining’s carbon dioxide emissions.

Eight-year plan

By 2030, it is estimated that a battery-electric haulage truck will lower total cost of ownership, involve 20% lower maintenance costs, and 40% lower fuel costs than existing diesel trucks, Shell said.

“It is increasingly clear that no one, single organisation can solve decarbonisation alone,” said Grischa Sauerberg, vice president, sectoral Decarbonization & Innovation at Shell. 

The global company plans to be a net-zero business by 2050 in accordance to climate change strategy laid out in the UN Paris Agreement, which seeks to limit the rise in average global temperature to 1.5° Celsius.

The commercial offering from the partners is expected in 2025. It would follow a pilot solution that will be tested at a Shell facility in Hamburg, Germany, next year, as well as final field trials at selected mine sites in 2024.

Cameco and Brookfield Renewable agree to US$7.9B Westinghouse nuclear services buy

0

Canada’s largest uranium producer Cameco (TSX: CCO) has announced a significant expansion into the nuclear services sector after agreeing to buy U.S.-based Westinghouse Electric with Brookfield Renewable Partners (NYSE: BEP) in a US$7.9 billion deal, the companies announced on Tuesday.

Brookfield Renewable and its institutional partners will own a 51% interest in Westinghouse, while uranium fuel supplier Cameco will own 49%.

“The partnership of Brookfield and Cameco will help drive forward the growth of nuclear power the world needs for its clean energy transition,” said Brookfield vice chair and head of transition investing Mark Carney in a statement.

The deal combines Cameco’s expertise in the nuclear industry with Brookfield Renewable’s expertise in clean energy and positions atomic power at the heart of the energy transition. It also creates a platform for strategic growth across the nuclear sector.

Among the terms of the deal, Westinghouse’s existing debt structure will remain in place, leaving an estimated US$4.5 billion equity cost to the consortium, subject to closing adjustments. This equity cost will be shared proportionately between Brookfield and its institutional partners (about US$2.3 billion) and Cameco (about US$2.2 billion).