ODERN MININGMarch 2021 - Crown Publications
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MINING
ODERN March 2021 | Vol 17 No 3
For people who are serious about mining
IN THIS ISSUE…
At the heart of Venetia’s transition to a mine of the future
First blast at East Manganese
Priority actions to improve mining competitiveness post COVID-19
CONTENTS 20
12
24
16 34
ARTICLES REGULARS
COVER MINING NEWS
10 ‘Africa-proof’ drilling solutions for contract miners 4 AngloGold Ashanti boosts reserves and dividends
4 Thakadu nickel sulphate refinery starts production
COMMODITY FOCUS – DIAMONDS 5 Sibanye-Stillwater ventures into battery metals sector
12 At the heart of Venetia’s transition to a mine of the future
6 Concor leverages global standards to lead in mining
MANGANESE 6 Record earnings for Implats
16 First blast at East Manganese 7 Kangra restarts operations
8 Silver production forecast to rise by 8,1% in 2021
MINING POST-COVID-19 9 Target production exceeded at Uis Tin Mine
20 Priority actions to improve mining competitiveness post COVID-19
SUPPLY CHAIN NEWS
COMMODITIES MARKET 36 Potential iron ore super cycle bolsters prospects for Rosond
24 Mining – a bull sector within a bear market
36 Master Drilling acquires stake in AVA Solutions
CONSULTING 38 Atlas Copco’s centrifugal dewatering surface pump solutions
28 Unpacking the minerals industry and the policy regime 38 Metso Outotec launches progressive Shutdown Services
programmes
OPENCAST MINING 39 Maptek celebrates 40 years of innovation
30 New dump truck with AC/AC drive system arrives in SA 40 Rand-Air provides dewatering solution to Northern Cape mine
32 Undercarriage sets and components direct to the end user 40 Mining industry to speed up investment in IoT in the next three years
34 Opencast contractors reminded about Bargaining Council 41 New intuitive user interface from TOMRA Sorting Mining
42 GHH fills the 7-tonne gap in LHDs
42 United heavy Industries to develop metallurgical laboratory
43 High flexibility, lower cost with mobile pumphouse
EXPERT VIEW
44 Four things government can do to increase mining’s GDP
contribution in 2021
ON THE COVER
The Soosan CSM range of hydraulic crawler drills,
previously JUNJIN CSM, has proved to be popular among
some of the biggest mining contractors in southern Africa
due to its competitive pricing, durability and ease of
maintenance. See story on page 10.
March 2021MODERN MINING1
Is SA its own worst enemy when it comes
COMMENT to the lack of exploration investment?
A
t this year’s Mining Indaba Virtual, in South African mining projects by members of
President Cyril Ramaphosa reiterated that the Council was tied up in regulatory hurdles, a
South Africa was banking on a rejuvena- position that undermines the industry’s ability to
tion of its struggling mining industry to increase its productivity.
help counter the economic devastation wrought South Africa, therefore, should rethink its regu-
by the coronavirus and the subsequent lock- latory framework to enforce regulation in a much
down that was imposed to curb its spread. The more permanent, stable and predictable manner.
need to rebuild investor confidence in a sector The global best practice approach for this is to
that once formed the bedrock of Africa’s most- legislate regulatory requirements and to leave as
industrialised economy has been identified as a little administrative discretion as possible in regu-
key tenet of an economic recovery plan for the latory requirements.
country. Mining investments by their nature are for the
There is talk of government’s target to lift min- long term, and when you change the rules of
ing’s contribution to the country’s GDP from the the game frequently, it becomes uncomfortable
current 8% to 10% in the near term. In my view, this for investors. A stable regulatory environment
remains a pipedream, until issues that are known is important for the country to attract the much
to be hindering competitiveness and investment needed mining investment.
into the sector are addressed. In an environment According to BCG, this would require a sig-
where reserves are depleting, mining exploration nificant amendment to the Mineral and Petroleum
can be the catalyst for future economic growth Resources Development Act (MPRDA). Although
and business opportunity. this would be an arduous and time-consuming
The lack of investment in new exploration process, it would be massively beneficial to regu-
projects in South Africa is worrying. According latory stability and certainty since, in the long term,
to data from S&P Global Market Intelligence, it would mean that mining regulation is subject to
South Africa’s exploration budget decreased from full parliamentary scrutiny.
US$404-million in 2007 to US$87-million in 2017. The incessant power issues in South Africa are
As you will see in this edition of Modern Mining, also a deterrent for investors. The mining industry
South Africa’s mining exploration has declined endured the equivalent of 30 days of no power in
from representing 2% of global exploration histori- 2019, and it is estimated that the sector lost in the
cally to less than 1% today. Geological database region of 4% of total planned output during the
quality also lags behind other jurisdictions, a factor same year due to power outages. The unstable
considered to deter mining exploration. power grid seriously hinders new mining invest-
Munesu Shoko In order to overcome this challenge and put ment. While the mining industry itself has the
South Africa in a better position to encourage capacity to self-generate its power, there is slow
exploration investment, a recent report by Boston progress in devising a legislative instrument to
Consulting Group (BCG) suggests that a compre- grant mining companies the liberty and licence to
hensive exploration growth strategy is required. It generate their own power.
should revolve around remapping high potential On the back of the estimated R7-billion to
geographical areas, improving the quality of the R12‑billion of lost production due to load-shedding
geomapping platform and encouraging risk capi- in 2019, which is anticipated to continue until 2022
tal through a flow-through share scheme similar to at least, there is need to open up generation,
the Canadian model. either through self-generation or independent
One of the stumbling blocks of mining invest- third-party generation, which is key to mitigating
ment in South Africa are the regulatory hurdles. this power risk.
Red tape remains an ongoing issue for many The government, as a matter of urgency,
businesses, but one that is particularly well-doc- should further ease the regulatory burden and
umented in the highly regulated mining industry. process barriers with regards to self-generation.
To provide context, during Mining Indaba Virtual, This will ensure that mining companies achieve
Minerals Council CEO Roger Baxter revealed that stable production and more predictable prices for
more than R20-billion of potential investments electricity.
Editor: Munesu Shoko Publisher: Karen Grant Printed by:
e-mail: mining@crown.co.za Deputy Publisher: Wilhelm du Plessis Tandym Print Average circulation
Features Writer: Mark Botha Circulation: Brenda Grossmann October-December 7 864
e-mail: markb@crown.co.za Published monthly by: Crown Publications (Pty) Ltd The views expressed in this publication
Advertising Manager: Bennie Venter P O Box 140, Bedfordview, 2008 are not necessarily those of the editor or
e-mail: benniev@crown.co.za Tel: (+27 11) 622-4770 Fax: (+27 11) 615-6108 the publisher. Publisher of the Year 2018
Design & Layout: Darryl James e-mail: mining@crown.co.za www.modernminingmagazine.co.za (Trade Publications)
2MODERN MININGMarch 2021
MINING News
AngloGold Ashanti boosts reserves and dividends compared to a dividend of 165 ZAR cents
per share (9 US cents per share) in 2019.
AngloGold Ashanti has reported a fivefold ounces to between 3,2-million ounces and AngloGold Ashanti embarked on a multi-
increase in its full-year dividend payment 3,6-million ounces, by 2025. year initiative at the beginning of 2020, to
and added 6-million ounces of new ore The growth will mainly include the increase investment in ore reserve devel-
reserve, on a gross basis, as it chartered a ramp-up of the Obuasi mine in Ghana, and opment and brownfields exploration. In its
return to growth in the coming years. incremental improvements from existing first year, the programme yielded 6-mil-
“After several years of rationalising our assets in the next two years. Beyond that, it lion ounces of gold – more than replacing
portfolio, we have a clear and credible path will include the addition of new production depletion from mining and extending the
to disciplined, high-return growth,” says from Colombia assuming plans for invest- overall reserve life of the company’s port-
interim chief executive officer Christine ment are approved by the board of the folio. These additions included 1,4-million
Ramon. “We have built a solid balance company later this year. new ounces of ore reserve at the Geita
sheet, which allows us to continue self- In fulfilling a strategic objective to Gold Mine in Tanzania, and 1,8-million
funding our capital investment, while improve direct returns to shareholders, ounces at Obuasi, in Ghana.
rewarding shareholders.” the company’s board declared a full-year The aim of this investment was to
The company aims to grow annual dividend of 705 ZAR cents per share increase the rate of ore reserve conver-
production from last year’s 3,05-million (approximately 48 US cents per share), sion, extend the reserve lives of its assets,
enhance mining flexibility and further
improve the knowledge of the ore bod-
ies. The programme was designed to
unlock latent value from within the existing
portfolio, with incremental investment in
sustaining capital. The company will con-
tinue to deliver on this programme in 2021.
AngloGold Ashanti has, since 2013,
used surplus cash generated by its mines
and the proceeds from the sale of assets
in the US, South Africa and Mali, to reduce
net debt by more than 80%, to the lowest
levels in a decade. The company also met
guidance for the eighth consecutive year
on production and cost.
Basic earnings for the period ended
31 December 2020 were US$953-million,
or 227 US cents per share, compared with
a US$12-million loss, or 3 US cents loss per
AngloGold Ashanti’s Geita Gold Mine in Tanzania. share in 2019.
the global market,” says Thakadu CEO, Ruli
Thakadu nickel sulphate refinery starts production Diseko.
Thakadu Battery Materials, a supplier of production,” says Thakadu chief operating Nickel demand from the automotive sec-
high-purity battery raw materials, has com- officer, Danie Smit. tor is growing rapidly with electric mobility
menced production at its U$20-million The new nickel sulphate refinery uses expected to represent the single-largest
nickel sulphate refinery in South Africa, proprietary process technology to purify growth sector for nickel demand over the
putting Africa on the map as a supplier of crude nickel sulphate extracted from a next 20 years. According to Roskill, nickel
battery-grade product to the growing global platinum group metal concentrate that sulphate consumption has grown at 20%
markets for electric mobility and stationary would otherwise be sold as a lower value a year since 2014 and that has primarily
energy storage. product. been driven by the rapidly growing EV bat-
Pioneering the responsible supply of Targeting production of 16 000 tpa in tery sector. The commodity research firm
battery raw materials from South Africa, 2021 with ramp up to steady state produc- expects to see demand grow from around
Thakadu’s 30 000 tpa refinery is the first tion of 25 000 tpa, Thakadu will refine crude 90 000 – 100 000 tonnes contained nickel
of a series of projects that will fast-track the nickel sulphate feed from its long-term sup- in 2020 to 2,6-million tonnes by 2040.
company’s aim to become a multi-asset pro- ply agreement with Sibanye-Stillwater and “We are excited about leading Africa’s
ducer of battery raw materials. other supplemental feed sources. contribution to a cleaner planet,” says
“This is a huge milestone for our team, “We see enormous value in having a Diseko. “We believe that investing in value
and we are pleased to bring this nickel battery materials platform with a producing addition of battery raw materials at source is
sulphate refinery to production at a time asset and we are pursuing synergistic M&A not only developmental but creates logistics
when high nickel cathode chemistries are opportunities to leverage that into a clean and supply efficiencies that are a net posi-
set to dominate battery and electric vehicle and reliable source of battery materials for tive for a greener future.”
4MODERN MININGMarch 2021
Sibanye-Stillwater ventures into
battery metals sector
Sibanye-Stillwater (Tickers
JSE: SSW and NYSE: SBSW)
has entered into an invest-
ment agreement with Keliber
O y. T h e t r a n s a c t i o n i s
expected to be implemented
in March 2021, subject to the
approval by the South African
Reserve Bank.
Keliber’s wholly owned,
advanced lithium project, the
Keliber project, is located
in the Kaustinen region of
Finland, one of the most sig-
nificant lithium-bearing areas
in Europe. Finland represents
an attractive low risk mining
jurisdiction (top five jurisdic-
Neal Froneman, CEO of Sibanye-Stillwater.
tion in the Fraser Institute) and
has developed a National Battery Strategy that outlines the objectives
for the country to become a competitive, competent and sustainable
player in the international battery industry. Europe is rapidly becom-
ing a leading hub for the manufacture of batteries for electric vehicles
and Keliber’s location in Finland enables efficient transport of lithium
hydroxide to European customers.
The Finnish Minerals Group, which manages the Finnish State’s min-
ing industry shareholdings, is the largest shareholder in Keliber and is
focused on creating partnerships and co-investments with a view to
developing the Finnish battery electric vehicle supply chain. Sibanye-
Stillwater shares this vision and in partnership with Keliber, FMG and
other shareholders, will progress the project to be the first vertically
integrated lithium producer in Europe.
The Keliber project consists of several advanced stage lithium
spodumene deposits, with significant exploration upside in close prox-
imity to the existing project. Based on a feasibility study completed in
2019 and improved in 2020, Keliber currently has 9,3-million tonnes of
ore reserves, sufficient for more than 13 years of operation. Planned
annual production is 15 000 tonnes of battery grade lithium hydrox-
ide. Production is anticipated to start in 2024. The project includes the
development of a chemical plant in Kokkola, approximately 50 km from
the mining area, which will produce battery grade lithium hydroxide.
Future lithium hydroxide production has not been committed to any
offtake party.
Sibanye-Stillwater will make an initial phased equity investment of
€30-million, for an approximate 30% equity shareholding into Keliber.
In addition a further €10-million equity issuance will simultaneously
be offered to the existing Keliber shareholders, on the same terms as
Sibanye-Stillwater’s €30-million investment.
The financing, together with a combination of Sibanye-Stillwater’s
extensive mining expertise that will complement the skills and local
knowledge of the experienced Keliber team, will ensure the contin-
ued progress of the project to a build ready phase. The €40-million
investment will allow for the completion of further detailed mining
optimisation studies, permitting, metallurgical test work and detailed
engineering design.
March 2021MODERN MINING5
MINING News
Concor leverages global standards to lead in mining
Meeting international standards is not tem aligned to global best practice.” able to tackle their important tasks in a sys-
an end-goal but an essential step in con- He emphasises that a key element of tematic and methodical fashion.
tinuously raising the performance bar, the ISO standards is the principle of effec- One of the certification requirements is
according to Concor Mining Services HSE tive control and continuous improvement to that internal audits are conducted on a reg-
& training manager, Neil Fourie. company procedures and processes. ular basis to determine the effectiveness of
With its quality, environmental manage- “Each year that we operate with these our systems. “The internal audits are con-
ment, and occupational health and safety certifications in place, our management sys- ducted at various levels and this interaction
management system certifications recently tem matures and improves,” he says. “This with our employees also has its own ben-
renewed, Concor has underpinned its guides us into deeper levels of auditing, efits, according to Concor Mining Services
world-class status, says Fourie. which in turn drives our efforts to become quality manager, Liz Diederichs. Far from
“These standards represent the life better at everything we do – including rais- being simply administrative checklist
blood of our business, as customers rely ing our productivity and compliance.” exercises, internal audits create valuable
on our management processes to pro- Good systems provide a backbone for opportunities for engagement, coaching of
vide them with the highest quality of the business, he notes, allowing the man- employees at all levels, raising awareness,
service,” he says. “Our certification in terms agement team to focus on the operations and often with inputs from the auditees’
of ISO 45001:2018, ISO 9001:2015 and and on smooth implementation of projects. opportunities for improvement.
ISO 14001:2015 gives them the peace of This is increasingly vital in a competitive “On a quality management audit, for
mind that we operate a management sys- market, where managers on site must be instance, we check that all systems on a
project are understood,
implemented and main-
tained, allowing us
to give considerable
support to site manage-
ment,” says Diederichs.
She highlights the col-
laborative culture within
Concor Mining Services,
where all the relevant
personnel are involved
in the audits and the for-
mulation of procedures.
“All activities and
tasks are discussed in
detail, ensuring that
employees buy into the
process of creating the
procedures that ensure
the best practice is fol-
Concor has maintained a zero fatality rate and a lost time injury rate of 0,00% for the past five years. lowed,” she says.
rather than structural in nature. A strong
Record earnings for Implats rebound in both demand and supply is
Buoyed by the high rand PGM basket price, tions from Impala Canada. This allowed expected in PGM markets in 2021. While
Impala Platinum Holdings Limited (Implats) the group to deliver higher sales volumes the expected short-term deficits in palla-
has posted a 328% increase in headline into robust rand PGM pricing and achieve dium and rhodium have been moderated
earnings and declared a record interim record financial results. by the anticipated release of in-process
dividend of R10 per share on a strong pro- “Record free cash flow has allowed concentrate inventory accumulated in
duction, safety and sales performance. further proactive management of the 2020, they remain meaningful and lend
Implats CEO, Nico Muller, says: “Implats group balance sheet, with a series of debt support to elevated pricing.
delivered stellar results for its half year repayments and targeted transactions to “Implats has successfully navigated the
ended 31 December 2020 despite the strengthen financial flexibility and secure impact of COVID-19 during the period and
challenges presented by navigating sustainable shareholder returns. is well positioned to deliver as planned
COVID-19. An improved fatal free safety “The factors driving current and future into robust rand PGM pricing. The focus
performance underpinned operational PGM demand and the characteristics of is on maintaining operational momentum,
momentum. Production volumes further the economic impact of the pandemic con- leveraging the windfall on pricing to reward
benefitted from increased processing tinue to support our view that, ultimately, investors and secure future growth and sus-
availability and the inclusion of contribu- the impact of COVID-19 will be cyclical tainability for the business.”
6MODERN MININGMarch 2021
Kangra restarts operations and low demand meant it was unsustain-
able for the Menar Group to carry the cost
Coal mining company, Kangra, which ing operations and is a natural extension of of running a high-cost underground mine.
was put on care and maintenance due to Kangra’s current coal resource. It has a coal However, over the past several months
COVID-19 lockdowns in the domestic and reserve of around 41,9-million tonnes and the gradual improvement in thermal coal
export markets has resumed operations. would extend the life of the mine by more prices, along with internal and external
The management of Kangra, a subsid- than 20 year. price modelling, has given confidence that
iary of private investment company Menar, Kangra was placed on care and mainte- the mine will operate profitably over the
has over the last few weeks engaged nance after the collapse of export markets. longer term, which has resulted in Kangra
various stakeholders to enable smooth Low thermal coal prices due to supply glut reopening.
commencement of operations that were
suspended in March 2020.
Bradley Hammond, Menar COO, who
is overseeing the resumption of opera-
tions, says that Kangra is in the process
of ramping up operations in order to meet
customer supply requirements.
“We want to thank the communities and
the Community Forum for the assistance
and support during the closure. If we work
together, we can stay open in these chal-
lenging times,” states Hammond.
Kangra recommenced operations with
the opening of the new opencast invest-
ment called Pit C. Kangra is also planning
to develop the Kusipongo resource, which At its peak, Kangra, which was acquired from Madrid-listed energy company Naturgy in 2018, produced over 2-million tonnes
is located to the west of the existing min- per annum.
March 2021MODERN MINING7
MINING News
Silver production forecast to rise by 8,1% in 2021
Global silver mine production is estimated contributors towards silver mine produc- ager at GlobalData, comments: “In Mexico,
to have declined by 2,4% to 849,7-million tion growth, with combined production in output was estimated to have fallen by
ounces (moz) in 2020, the fourth con- these countries expected to increase from 1,8% in 2020, with mining activities sus-
secutive annual decrease, partly owing to a forecast 393,9 moz in 2021 to 443,9 moz pended for almost two months through
lockdowns and restrictions at top silver pro- in 2024. to the end of May. Major silver produc-
ducing countries, particularly Peru, Mexico The greatest impact from the COVID‑19 ers in the country temporarily suspended
and China. pandemic on silver production was seen their mining operations during this period
In addition, depleting ore reserves have during the first nine months of 2020, and production losses were registered at
been a major concern for the industry in when eight of the top ten silver producers Pan American’s La Colorada and Dolores
the recent years. However, global silver reported a collective 13,9% year-on-year mines, Fortuna Silver’s San Jose mine,
production is expected to increase by 8,1% (Y-O-Y) fall in their output. Among those Industrias Penoles’ Saucito mine and Hecla
in 2021 to 918,3 moz and then exceed reporting significant falls in output Mining Company’s San Sebastian project,
1-billion ounces by 2024 – a 3,2% com- between Q1 and Q3 were Pan American among others.
pound annual growth rate (CAGR), says (6,8 moz decline), Hochschild (6,4 moz) “However, these COVID-19-related
GlobalData, a leading data and analytics and Compania De Minas Buenaventura production losses were partially offset by
company. SAA (6,3 moz). higher production from other key mines,
Mexico, Peru and China will be the key Vinneth Bajaj, associate project man- including the Penasquito, Guanacevi,
Zimapan and Ocampo projects, as well
as from the commencement of projects in
2020 such as the Rey de Plata, Capire and
Tahuehueto projects.”
Production in Peru fell more signifi-
cantly, down by an estimated 16% over
the course of 2020, having declined by
29,1% y-o-y in the first seven months of the
year. The Uchucchacua mine, owned by
Buenaventura, was the biggest contribu-
tor towards this decline and silver output
dropped by around 4 moz in the first nine
months of 2020 versus the same period
of 2019. Further, operational suspensions
at Pan American’s Huaron and Morococha
mines between May and September also
Global silver production is expected to increase by 8,1% in 2021. contributed towards the decline.
Northam increases its holding of Zambezi preference shares to 87,5%
Northam has acquired 1 525 728 Zambezi Zambezi redeem the Zambezi preference of 10% or more of the Northam shares in
preference shares and has agreed to shares through a distribution of ordinary issue. Accordingly, the PIC is a related party
acquire a further 9 876 775 Zambezi prefer- shares in Northam held by Zambezi, then to Northam as contemplated in paragraph
ence shares from a material shareholder, in the redemption of the Zambezi preference 10.1(b)(i) of the Listings Requirements and the
aggregate amounting to 11 402 503 Zambezi shares held by Northam at such time will related party acquisition is categorised as a
preference shares and representing a result in a distribution of Northam shares to “small related party transaction” in terms of
total cash consideration of approximately Northam, thereby reducing the number of paragraph 10.7 as read with paragraph 10.8
R1,1‑billion. Following implementation of the Northam shares in issue. of the Listings Requirements.
acquisition, Northam will hold 139 972 496 Northam reached an agreement with the In terms of paragraph 10.7 of the Listings
Zambezi preference shares, representing Public Investment Corporation SOC Limited Requirements, the related party acquisi-
approximately 87,5% of all Zambezi prefer- (PIC) to acquire 9 876 775 Zambezi prefer- tion is not subject to shareholder approval,
ence shares in issue. ence shares from the PIC on 11 March 2021, provided that an independent professional
Northam’s acquisition of Zambezi at a price of R97,84 per Zambezi prefer- expert confirms that the terms of the related
preference shares will reduce the prefer- ence share, for a total cash consideration of party acquisition are fair as far as sharehold-
ence share dividend expense and liability approximately R966,3-million. ers are concerned. Northam has appointed
included in Northam’s consolidated financial The PIC is a “material shareholder” of BDO Corporate Finance Proprietary Limited
statements, as well as Northam’s potential Northam as defined in the JSE Limited (BDO) as the independent professional
financial exposure under the guarantee it Listings Requirements in that, within the pre- expert for purposes of providing an opin-
provided in favour of the holders of Zambezi ceding 12 months, it has been able to exercise ion in respect of the fairness of the related
preference shares. Furthermore, should or control the exercise of votes in respect party acquisition.
8MODERN MININGMarch 2021Target production exceeded at Uis Tin Mine online. Our positive production results
have coincided with a strong tin price. The
AfriTin Mining Limited (AIM: ATM) reports lum minerals from the tin concentrate and LME three-month tin price hit its 10-year
that its Uis Tin Mine successfully main- will update the market with the results of high in February 2021 after unprecedented
tained a production level above its steady this test work in due course. turbulence, triggered by low stocks with no
state target during Q4 of the 2021 financial Anthony Viljoen, CEO of AfriTin Mining sign of relief from a constrained physical
year. During the quarter under review, Uis Limited, comments: “After reaching name- supply chain.
surpassed the target of 180 tonnes of tin plate capacity in November 2020, the “The global pandemic continues to
concentrate to produce 194,5 tonnes (con- team at AfriTin continues to optimise and affect businesses worldwide, yet by imple-
taining 126,2 tonnes of tin metal), a 28% develop our flagship asset, the Uis Tin menting all necessary safety protocols, we
improvement on the previous quarter. Mine. We are delighted to release our first have minimised its impact on our produc-
The production level achieved in Q4 quarterly production update and demon- tion. I commend the teams working on-site
represents approximately 108% of the strate that the company is operating 108% for all we have achieved in this time. Our
Stage I quarterly target in terms of tin con- beyond our production targets for Stage I. plan remains to become a large-scale,
centrate produced and 117% of the Stage I Our work is far from complete as we look to multi-stream, mining and processing facil-
quarterly target in terms of tin contained in incrementally expand our processing plant ity, and we look forward to sharing these
concentrate. The quarterly production per- and bring additional concentrate streams developments with the market.”
formance for the 2021 financial
year is tabulated below.
Tin concentrate produc-
tion for the 2021 financial year
totalled 473 tonnes, for a total
of 311,7 tonnes of contained tin
metal. The Company continues
to achieve an average pay-
ability of 94% (referring to the
percentage of the LME tin price
realised for the tin contained
in concentrate). The concen-
trate continues to be largely
free of deleterious elements,
resulting in a high grade, clean
concentrate.
AfriTin is committed to fur-
ther optimisation and expansion
of the operation. The company
plans to develop a modular
expansion of the pilot plant, and
production of by-products in
the form of tantalum and lithium
concentrates. The company is
currently conducting test work
to investigate the feasibility of
magnetically separating tanta- Uis surpassed the target of 180 tonnes of tin concentrate to produce 194,5 tonnes.
March 2021MODERN MINING9COVER STORY
‘Africa-proof’ drilling solutions
for contract miners JMH Equipment offers a wide
range of aftermarket
drifter parts.
JMH Equipment reports that its Soosan CSM range of hydraulic
crawler drills, previously JUNJIN CSM, has proved to be popular
among some of the biggest mining contractors in southern Africa of Soosan in
due to its competitive pricing, durability and ease of maintenance. the market, we
The company’s complementary aftermarket drifter spare parts can only grow our market
footprint further. We already have
for all major OEMs’ drill rigs also offer mining contractors a cost- a growing base of satisfied customers in
effective, yet quality alternative, writes Munesu Shoko. South Africa, Botswana and Namibia, and the
aftersales service to match this good product.”
J
MH Equipment has been supplying a Korean While the market for new capital equipment has
made range of hydraulic crawler drill rigs since been slow in the past two to three years due to low
2007 in southern Africa. A total of over 50 drills commodity prices, Holtzhausen has seen a major
have been delivered to customers operating improvement in business activity this year. “We have
in South Africa, Namibia and Botswana over the had some serious enquiries from contractors oper-
years. The Soosan CSM range, previously known ating in the Rustenburg area, for example, where
as JUNJIN CSM, has since gained significant popu- several new opencast mines have been opened
larity among major drilling contractors operating in recently,” he says.
the region. Some of the names that come to mind
include Benhaus Mining, Minetech Botswana, Three models
Mabunda Blasting, Coronado Mining, E3 Mining, Eire JMH Equipment offers three hydraulic crawler rig
Contractors, Domino Blasting, Rosh Pina Namibia models, the JD-800, JD-1300E and JD-1400E. The
and Limeco CC Namibia. JD-800 is the smallest in the range, offering a hole
Maurits Holtzhausen, MD of JMH Equipment, range of 64 mm to 102 mm. The mid-size JD-1300E
believes that, following Soosan’s acquisition of offers a hole range of 76 mm to 115 mm.
JUNJIN CSM, the brand will leverage the trusted name The JD1400-E is the latest and most favoured
of Soosan in the market for further growth. “In 2018, model in the range with a 400 – 490 cfm GHH
JUNJIN CSM sold the company to Soosan, where- Rand compressor, Yamamoto YH135 drifter and a
With the mechanical layout and hole range of 89 mm – 127 mm. It is fitted with a
after the factory name changed to Soosan CSM,”
absence of computers, the drills
are easy to maintain, ensuring
explains Holtzhausen. “Although no changes were Cummins CTAA8.3 or QSL9 engine, which is war-
minimum downtime for drilling made to the company, product and staff, I believe ranted by Cummins Southern Africa, as well as
operations. that with the favourable name and service record Kawasaki hydraulic pumps. Its powerful dust collec-
tor, fitted with four filters, has a suction capacity of
40 m³ per minute. It also comes with a Turnstile type
auto-rod charger which can carry six rods with an
auto-grease to lubricate the rods at the push of a
button from inside the cab. The cabin is ROPS and
FOPS certified with an air conditioner for maximum
operator comfort.
A key competitive edge of the range is the price.
The machines are competitively priced against some
of the premium offerings in the market, yet they offer
the same quality, durability and performance, if not
better. According to Holtzhausen, the range comes
at about 10 – 15% less than some of the premium
offerings in the market.
Another key selling point for the range is that it
is easy to maintain, which makes it ideal for Africa,
where technical skills are a challenge for many com-
panies. In fact, most of JMH Equipment’s customers
service their own machines. “With the mechanical
10MODERN MININGMarch 2021COVER STORY
layout and absence of computers, the drills are easy
to maintain, ensuring minimum downtime for drill-
ing operations,” explains Holtzhausen, adding that
for ease of serviceability, the panel type bonnet and
vertical type fuel tank make ample room for machine
inspection and services.
Reliability is another key attribute of this machine
range. To provide context, mining contractor Lubanzi
Mining Worx operates four JD-1400E models, which
have been deployed at mines around the Rustenburg
area in South Africa. One of its oldest rigs has
completed over 9 000 hours and still maintains
availability of 80 – 85% in tough conditions.
“The company is very happy with the average
of 17 m/hour over a two-year period, with the
drill still going strong,” says Holtzhausen.
Other key features include an anti-jamming
system, collaring and automatic rig control (ARC).
The anti-jamming system stabilises operation of the Above: For ease of serviceability,
rig across all kinds of rock, making the rig easy to the panel-type bonnet makes
ample room for machine
operate for novice operators. Collaring makes it
inspection and services.
easy to take a correct position for drilling and
for unskilled operators to drill holes correctly. Left: JMH Equipment is renowned
With ARC, the operator connects or dis- for supplying aftermarket drifter
connects the rods by controlling only a few parts for any make and model of
underground and top-hammer
levers in the cabin, without an assistant. The
drill rigs.
automatic rod exchange can be performed by
means of sequential hydraulic schematic. Five
rods (including the first rod) can be equipped in
the cartridge of the ARC.
Drifter parts
JMH Equipment is also renowned for supplying
aftermarket drifter parts for any make and model of
both underground and top-hammer drill rigs. The the biggest suppliers for Montabert in France, which
company has over the years supplied these parts is testimony to their good quality control and ability
to some of the largest contract miners operating in to manufacture parts to OEM specifications,” says
the region. One of the major names which has relied Holtzhausen.
on JMH Equipment’s drifter parts is Benhaus Mining, Another reason for the growth of JMH Equip
among many other well-known contractors. ment’s drifter parts division is that the company
Holtzhausen is aware of the disdain with which can offer a wider range of options for different
aftermarket parts have been viewed over the years. brands from a single supplier. The company’s drifter
As a matter of fact, he says, the build quality of after- parts are compatible with brands such as Epiroc,
market parts has significantly improved during the Furukawa, Sandvik and Montabert, among others.
last couple of years. Several equipment owners are
therefore starting to choose these affordable and
efficient options.
Advantages of aftermarket parts include cost,
Key takeaways
selection and quality. The main reason why there JMH Equipment has over the years delivered over 50 hydraulic crawler
is big preference for JMH Equipment’s aftermarket drill rigs to customers operating in South Africa, Namibia and Botswana
parts is that they are significantly more affordable The Soosan CSM range, previously known as JUNJIN CSM, has gained sig-
than OEM parts. “In terms of price, our parts cost nificant popularity among major drilling contractors operating in the region
about 30 – 40% less than OEM parts, yet the quality JMH Equipment offers three hydraulic crawler rig models, the JD-800,
is exactly the same, if not better,” he says. JD-1300E and JD-1400E
Apart from price, these aftermarket parts have The JD1400-E is the latest and most favoured model in the range with a
also proven themselves in terms of quality. “We 400 – 490 cfm GHH Rand compressor, Yamamoto YH135 drifter and a hole
have become well-known for the quality of our after- range of 89 mm – 127 mm
market drifter parts. Our parts are imported from JMH Equipment offers aftermarket drifter parts compatible with brands
Europe and the factory that we buy from is one of such as Epiroc, Furukawa, Sandvik and Montabert
March 2021MODERN MINING11COMMODITY FOCUS – DIAMONDS
At the heart of Venetia’s transition
To successfully transition from surface to underground mining and
to establish a mine of the future at Venetia, De Beers has adopted
an operational readiness framework to enhance the transforma-
tion of people, processes and systems. By Munesu Shoko.
H
aving operated Venetia successfully as an
opencast mine since 1992, De Beers took the
decision to develop an underground mining
operation, to economically extract kimberlites
that extend well below the depth limit of open-pit
operations. The two orebodies at Venetia – K01 and
K02 – extend well below surface to depths of up
to about 1 000 m. From an economic perspective,
it made sense for the mining giant to transition the
mine at the end of the current cut (Cut 4).
In developing the US2,1-billion Venetia Under
ground Project (VUP) – the single biggest investment
in South Africa’s diamond industry in decades, which
will treat about 132-million tonnes of material con-
Morrison Maseko, operational readiness and transition manager at De
taining an estimated 100-million carats over the
Beers’ Venetia Underground Project.
course of its life – De Beers had the ‘mine of the
future’ clearly in mind. With any mine of the future, perspective, including people, processes and
operating practices basically entail the adoption and systems.
incorporation of new technologies such as automa- The people aspect, says Maseko, was always
tion and digitalisation, among others. going to be important, if not principal, given that
To be successful, not only with the implemen- the success or failure of technology initiatives
tation of these new technologies, but also with depend, to a large degree, on the effectiveness of
the transition from opencast to underground min- an organisation’s change management strategies.
The Integrated Owners Team
ing, operational readiness and transition manager The transition from opencast to underground also
Operators working together to Morrison Maseko tells Modern Mining that De demanded a complete mindset shift and new skills.
deliver safe production. Beers viewed the project delivery from a broader There were many factors to take into consideration:
12MODERN MININGMarch 2021to a mine of the future
Are the people ready? Are their skills at the level reflect what the company wanted to do and achieve The underground portal at Venetia
they need to be to operate this new entity? Will the at the VUP. This speaks to the quality, design and Mine.
facilities support the demands of the new operating the technical requirements to support the company’s
environment? What about the cultural aspects? goals and targets at this project,” he adds.
“One of the crucial aspects from a people trans-
formation perspective was looking at the future of The people factor
work at the VUP, which had to be captured in how People are central to where De Beers wants to be,
we planned and implemented the project. Bringing says Maseko. The people transformation aspect has
that approach to this mine of the future project was been approached through several perspectives,
very important, because it reiterates our commitment including assessments, training and skills transfer.
to people. We don’t just see the mine of the future in “We have some employees who have worked at
terms of technology, but also from a people perspec- Venetia for many years and they have been success-
The VUP introduced the transition
tive,” explains Maseko. ful operators in our surface operations, for example. change mascot, Lutendo, to help
With the implementation of the VUP, we are now communicate the transition
Operational readiness exposing them to an underground asset, which is journey to employees.
De Beers adopted an Operational Readiness Frame
work to manage the transformation at VUP. This
ensures the operating environment is prepared to
effectively support and accept the changes resulting
from the project.
De Beers’ Operational Readiness Framework
entailed the assessment of people readiness as far
as transformation was concerned. It also looked at
systems and processes, as well as at assets and facili-
ties. “In light of these three aspects, we had to look
at our organisational design principles at Venetia. We
also had to look at our processes; how do we trans-
form the processes and systems that we have always
used as a surface operation to those that will support
a mechanised underground operation, especially
given that new technologies are coming on board
and the ways of working will be changing.
“We also considered our assets, which needed to
March 2021MODERN MINING13COMMODITY FOCUS – DIAMONDS
new to them. They don’t have the necessary skills
and know-how to work or operate in this environ-
ment. We looked at the people aspect and at how
we could transition them through training, assess-
ments and skills transfer, to empower and prepare
them to function in an underground mining environ-
ment,” he says.
The first group of 20 employees transitioned from
surface to underground in Q4 2019. Since then, the
company has transitioned four more groups, translat-
ing into about 100 people to have gone through the
process thus far.
To enable this people transformation, De Beers
has invested in the necessary infrastructure. The
company is building a state-of-the-art training facility,
which will be commissioned during the first quarter to create ownership. We needed all our people – The VUP change mascot, Lutendo.
of 2021. employees and management – to own the change
“Our own training facility is central to developing that we are going through and to understand the
our people and the skills we need to operate this objectives and benefits of this change.”
new mine of the future. The new skills training centre The second layer of the change management
is equipped with all the necessary new technologies, process is to ensure that every level is involved,
including virtual reality and simulators, among oth- looking at different areas and departments. “We
ers,” says Maseko. have introduced a change network approach where
This has been complemented by the investment we use change champions to promote change at
in a heat tolerance screening facility on site. The heat employee level. We have also understood that the
tolerance chamber enables the company to assess change brought by the new technologies requires
its people’s readiness/fitness to work underground not just training, but adaptation to the new ways of
where ambient conditions are different to those on working,” he says. “We have introduced cultural inte-
surface. gration for new employees and those transitioned to
VUP will be an owner-maintained mine, mov- learn leading underground ways of work.”
ing away from the previous contractor-maintained The last layer of the change management pro-
approach the company has always used at its sur- cess is to communicate the message. De Beers
face operation. “As a result, we are going to increase has introduced a mascot called Lutendo, a change
the number of our workforce for the underground champion who will take the team through a journey
operation. This offers us opportunities, and one of of transition. “This creates a focused role player
them is the ability to recruit additional people from to associate with our communication. We regard
local communities,” says Maseko. Lutendo as our change champion who will take us
through the process of transition in the next four
Change management years. Employees will be able to relate to the change
Many tend to think of change management as ’good and messages that are communicated through the
communication’, but that’s only the beginning, says character,” concludes Maseko.
Maseko. While good communication is important in
spreading information about the change, it shouldn’t
be mistaken for the change process itself. For De
Beers, change management is certainly critical, as
Key takeaways
demonstrated by the way it has been handled at VUP. In developing the US2,1-billion Venetia Underground Project, De Beers had
It has taken a lot of thought and leadership, through a the ‘mine of the future’ clearly in mind
deliberate set of activities that facilitate and support To be successful, not only with the implementation of new technologies,
the success of individual and organisational change but also with the transition from opencast to underground mining, De
and the realisation of its intended results. Beers viewed the project delivery from a broader perspective, including
“We have given change management the people, processes and systems
attention it deserves. We have approached it in a sys- The people aspect was always going to be important, if not principal, given
tematic way and in three layers,” he says. “Firstly, we that the success or failure of technology initiatives depend, to a large
needed to create ownership because we understood degree, on the effectiveness of an organisation’s change management
that change is not always embraced by everyone. We strategies
had to carry out assessments and surveys, dealing De Beers adopted an Operational Readiness Framework to manage the
with people at a personal and organisational level to transformation at VUP. This ensured that the operating environment was
help them understand the challenges that the change prepared to effectively support and accept the changes resulting from the
is bringing. At the same time, we used that process project
March 2021MODERN MINING15MANGANESE
First blast at East Manganese
Having opened the first box cut at the start of September last year, diversified mining
investment group, Menar, recently undertook its first blast at East Manganese, the compa-
ny’s first manganese asset located near the Northern Cape town of Hotazel in South Africa,
writes Munesu Shoko.
I
n a major project milestone, Menar Group project receive allocation for its Manganese Export Capacity
manager Kobus Rothmann tells Modern Mining Allocation (MECA2).
that the company successfully had its first blast The establishment of the East Manganese Mine
of about 35 000 m³ on February 27 this year at will aid economic activities in the area and create
its flagship East Manganese project, the company’s between 70 and 80 direct new jobs on the mining
first foray outside its traditional mainstay of coal and complex, once peak production has been reached.
anthracite in South Africa. “If we multiply this figure by 10 (which is the average
Commenting on the latest developments on site, number of people that are dependent on a single
Rothmann says the stripping of overburden and salary earner in South Africa), then in essence 700
Kobus Rothmann, Menar Group infrastructure construction continues, with the pol- – 800 people will benefit from this project,” explains
project manager. lution control dam, screening plant foundations and Rothmann.
workshops among the major priorities. The plant is “Indirect economic benefit of the operation,
being constructed off-site and on completion it will even though not fully quantifiable at this stage, will
be transported to site and erected on the founda- more likely be far-reaching. The mine’s recruitment
tions that have already been put in place. process was undertaken in conjunction with Joe
“The main tip wall of the plant has reached its Morolong Local Municipality, which through its Local
final height. The upgrading of the access road inter- Economic Development (LED) forum, has been key
section within the main road is in progress, with to ensuring that all candidates are in fact locals,” says
the contractor already on site. A key milestone for Rothmann, adding that East Manganese is bringing
the project achieved thus far is the final blast on meaningful benefits to the local community, which
the Calcrete overburden on 15 February,” explains will undoubtedly increase as the mine develops in
Rothmann. the coming years.
Focus areas First ore
Menar is currently engaging with an existing opera- First ore is expected in June this year, confirms
Stripping of overburden and tion that has a private siding, in order to gain rail Rothmann. Mining operations at this project
infrastructure construction access. The company, says Rothmann, has also commenced at the start of September last year fol-
continues at East Manganese. submitted a proposal to Transnet Freight Rail to lowing the granting of a mining right and water use
16MODERN MININGMarch 2021licence in August 2019. During the second week scope to grow its manganese portfolio in the region, The reserve consists of a total of
of July 2020, the project team started grading the given that East Manganese is located in the manga- 1-million t of run of mine (ROM)
entrance road. The first box cut was opened on nese rich Kalahari Basin, which is host to 80% of the and will produce and process
30 000 t of ROM per month.
4 September 2020. world’s manganese ore bodies.
East Manganese Mine will be an opencast mine Due to the depth and footprint of the ore, which
with a single mining pit, which is located on a small is situated about 50 m below surface at the bottom
50 hectare (ha) portion of the total 1 000 ha mining of the pit, Menar cannot apply conventional strip
right area. The remaining unused portion of the min- mining, hence the conical shape with a ramp down
ing area will be used for cattle and game farming by to the ore. The initial phase has seen the company
a local farmer. use load and haul mining processes. Waste mate-
Menar acquired the land portion on which the rial is being hauled to the waste stockpile area in
proposed pit will be located. The reserve consists order to be used at later stages fo mine rehabilitation
of a total of 1-million tonnes (t) of run of mine (ROM) purposes.
and will produce and process 30 000 t of ROM per A dry crushing and screening plant will be oper-
month, over an expected three-and-a-half years life ated on site. A major advantage of using a dry
of mine (LoM). crushing and screening plant is that it will reduce A Volvo hauler deployed at the
However, the company is confident that there is water requirements and limit pressure on local water East Manganese site.
March 2021MODERN MINING17MANGANESE
sources. An additional benefit of a dry crush/screen for our venture into manganese,” adds Mkhabela. A Volvo excavator working at the
process is that there won’t be any need for a slurry Mkhabela is also encouraged by the prospects East Manganese site.
handing facility. Products will include both lumpy of the global manganese market. Manganese has
(85%) and fine material (15%). numerous applications which impact people’s daily
lives. The main uses are in industrial and metallur-
Sound investment gical applications. Manganese is essential to the
Having purchased East Manganese from Southern production of steel, aluminium alloys, copper alloys,
Ambition in September 2018, the R250-million batteries and a variety of chemicals.
project, part of Menar Group’s planned R7-billion The manganese mining sector is an integral part
investments, was granted environmental authorisa- of South Africa’s economy. According to the Minerals
tion in February 2019, followed by the mining right Council, over 10 800 people were employed in the
in August 2019. sector which equalled over R3,5-billion in employee
Speaking to Modern Mining late last year, Menar earnings in 2019. The sector produced over 16,4-mil-
chairperson Mpumelelo Mkhabela said the purchase lion tonnes and totalled over R47,6-billion in total
of the East Manganese project was in line with the sales during the same period.
company’s strategy to diversify its commodity portfo- “We are encouraged by the macro supply and
lio, which is integral to its quest to become a leading demand fundamentals of manganese. South Africa
South African diversified mining company. holds the overwhelming majority of the world’s man-
The R250-million investment, said Mkhabela, is ganese resources. We are confident that we can
significant for the Menar Group. “We are on track to leverage our group’s existing skills and relationships
invest at least R7-billion in the next two years. The in South Africa to build a strong manganese busi-
start of the East Manganese project in the middle ness,” concludes Mkhabela.
of a pandemic is an indication of fulfilling our invest-
ment promise to South Africa. We are looking for
more assets in the manganese sector,” he said.
“It is our aim to build a larger manganese port-
Key takeaways
folio in the area over time. We are committed to In a major project milestone, Menar has successfully undertaken its first
realising South Africa’s full mining potential, by con- blast of about 35 000 m³ on February 27 this year at its flagship East
tinuously seeking out new investment opportunities Manganese mine
and East Manganese is a clear illustration of this The stripping of overburden and infrastructure construction continues,
continued commitment. The move into manganese with the pollution control dam, screening plant foundations and workshops
from our controlling and management positions among the major priorities
in Canyon Coal, Zululand Anthracite Colliery and The plant is being constructed off-site and on completion it will be trans-
Kangra forms part of our strategic diversification ported to site and erected on the foundations that have already been
into minerals and metals beyond coal and anthra- constructed
cite. We believe the skills and knowledge we have A key milestone for the project achieved thus far is the final blast on the
gained from coal mining will hold us in good stead Calcrete overburden on 15 February
March 2021MODERN MINING19MINING POST COVID-19
Priority actions to improve mining
competitiveness post COVID-19
In order to turn around the South African mining growth trajectory and rebound stronger
from the COVID-19 crisis, a set of collaborative actions is required from all key stakehold-
ers, including government and labour. Speaking to Modern Mining’s Munesu Shoko, Lucas
Chaumontet, MD and Partner at Boston Consulting Group’s Johannesburg office, details
eight primary actions for government and industry to improve mining competitiveness in
SA post COVID-19.
T
he COVID-19 pandemic presented significant cost curve compared to their global counterparts.
challenges for the mining sector in 2020. The industry was also lagging behind global best
Although commodity prices did not fall closer practice in terms of modernisation and digitisation,”
to trough levels as expected at the start of says Chaumontet.
the pandemic, the crisis led to significant produc- South Africa’s mining industry, notes the BCG
tion losses through the resultant lockdowns. In its report, has struggled to be cost competitive inter-
report, Mining After COVID-19: The South Africa nationally, due in part to geological factors. Despite
Case, Boston Consulting Group (BCG) estimates the country’s large reserves, deteriorating cost com-
that approximately 350 mines globally have lost petitiveness and quality of remaining deposits are a
some production as a result of country lockdowns. cause of concern. The country’s deep gold reserves,
Lucas Chaumontet, MD and
South African mines suffered significant mining in particular, are becoming more challenging and
Partner at Boston Consulting
Group’s Johannesburg office. production losses during the country’s hard lock- costly to extract relative to the gold mining costs in
down. The impact of COVID-19 on the South African competitor countries.
mining sector, says Chaumontet, was exacerbated “There are also other elements that are exter-
by the fact that the industry was “already in bad nal to the mining sector itself, but are part of the
shape structurally” well before the pandemic hit. South African operating landscape, for example,
“The mining industry in South Africa was already the unreliable energy supply,” says Chaumontet.
Through technology, structurally challenged well before the pandemic, To provide context, the report notes that the min-
mechanisation and digitisation,
mines can improve operational
from a production and jobs perspective. There were ing industry endured the equivalent of 30 days of
performance, cost efficiency, also lingering issues around competitiveness, with no power in 2019, and estimates that the industry
safety and productivity. several mines already sitting on the higher end of the lost in the region of 4% of total planned output
20MODERN MININGMarch 2021You can also read
