African Mining February 2021 | Page 37

CRADLE TO GRAVE • labour and equipment could potentially derail projects , or at least make them less profitable .

Given the risks associated with working in this sector , projects must be carefully managed at every stage to ensure maximum efficiency and ROI , without compromising the health and safety of workers .

From the feasibility study to excavation , mining companies are under pressure to optimise complex sites by keeping costs low , productivity high and goods moving . They cannot afford to sit on stockpile inventory for longer than is necessary ; instead , they need to calculate their volumes , so they know exactly what they have to sell .

No matter what the commodity , measuring stockpiles in mines and quarries is hazardous and time-consuming if you do not have the right equipment . Indeed , it can take as many as 200 work hours of time to calculate just one site using traditional survey methods , which may not be accurate enough anyway , given the irregular shape of stockpiles .

As companies are paid by volume , they need highly-accurate and up-to-date stockpile measurements . Any time-lag or miscalculation could quickly result in lost sales and revenues and commerciallydamaging disputes .

However , recent innovations in remote scanning technology are helping to address these problems , while also paving the way for more African mining companies to enter the market and attract international investment , even if their budgets are relatively small .

One system that has been gaining traction with mining companies is GeoSLAM Volumes , where operators calculate the weight and bulk of stockpiles by scanning its mass then generating a 3D representation using point cloud data .

The scanners used can capture data points ( even from hazardous and hard-to-reach areas ) and make complex calculations up to 10 times faster than manual surveying methods – without disrupting operations or compromising employee safety .

Tools like the Zeb Horizon scanner , for instance , use SLAM ( simultaneous localisation and mapping ) technology , and can be operated by workers with no prior training , either on foot or by UAV . The Horizon is capable of scanning 300 000 points per second at a range of 100m , with a relative accuracy of between 1 - 3 cm .

The capture process is so straightforward that users are able to complete multiple scans throughout the lifecycle of the project , so data is always accurate and up-to-date . Since this device uses SLAM not GPS , it is also suitable for areas with poor coverage and enclosed spaces such as tunnels .

The issue of health and safety is , quite rightly , a priority for any reputable mining company today . While it is certainly reassuring that South Africa saw mining-related deaths fall to an ‘ all-time low ’ to 51 in 2019 , it remains a dangerous occupation and there is no room for complacency . Commercial pressure to deliver more materials faster is no excuse to cut corners and risk the lives of those working on a site .

There are regular reports of miners being trapped underground , which only underlines the importance of regularly testing the shaft ’ s structural integrity and avoiding the most hazardous locations . On site , the height and instability of some stockpiles bring a risk of collapse , yet mobile scanning allows them to be managed remotely and safely .

Globally , the move towards renewable energy looks set to drive up demand for the minerals used in solar panels , batteries and other equipment , and Africa ’ s rich deposits mean it is well-placed to benefit from this . Continued investment in mining could transform the fortunes of nations , developing skills , creating jobs and building strong economies .

At the same time , it is important to bear in mind that African mining is competing on the world stage , against regions such as South America , Russia , and Australia . But , as we have seen , technology is helping to democratise the industry , breaking down barriers to entry and allowing more firms to operate safely , efficiently , and productively . As long as companies leverage the right tools , they should be well-placed to take market share from their international rivals now and in the future .

Critical consultations are still underway to deal with the sensitive matter of the payment of royalties and its application for nonprecious materials that are mined and processed as building materials or other low-value commodities .

Surface mining industry association Aspasa , has continued to represent this end of the mining industry where the determination of the value of minerals removed from the earth is fraught with complexities and disagreement .

Most recently , the association took on the South African Revenue Services ( SARS ) over its interpretation of where then value should be determined , as the handling of products once it is mined , as well as processing and site transportation adds additional cost to the product and should not in the opinion of Aspasa be included when determining the value .

According to Aspasa director Nico Pienaar , the association had been involved in the issue of the calculation of the Royalty Act for many years and even developed a guideline document which was used by its members to calculate the value of minerals at ‘ muckpile ’ level . SARS then changed their mind and wanted to add steps in the process . Then , while the same argument ensued , a legal battle to determine where value should be calculated began between SARS and United Manganese of Kalahari ( UMK ) and SARS lost the case .

“ The revenue service decided not to pursue the case to the constitutional court and the finding should set a principle for the future . In summary , the UMK case transport , insurance , and handling ( TIH ) expenses which a member can deduct are any expenditure after such mineral resource was brought to the relevant condition .

The difficulty which members may encounter in trying to determine the TIH expenses is what is meant by ‘ any expenditure actually incurred in respect of handling to effect the disposal of that mineral resource ’. However , it seems there is still