MINE EXCURSION
that the solution to this problem is to prosecute buyers of the illegally
mined products, who, if fined or imprisoned and held responsible for
purchasing illegal products, would prevent the material from entering
the formal sector. This would go a long way to assisting the DMR in
curbing and controlling these illegal activities. Another challenge, he
says, is the administrative procedure for permits and licenses. “It takes a
long time to get a blasting license and we wasted a lot of time mining
mechanically before we carried out our first blast. If I could do it again, I
would apply for the blasting license at the outset,” says Blackmore.
There has also been a considerable slowdown in the South African
construction sector across the board in the last three years, which has
impacted the purchasing power of the smaller businesses and offtakers.
Blackmore says that the increase in the cost of diesel has further
contributed to lower margins. “We are now paying R22 000 more for 4500
liters of diesel than what we did two years ago,” he says.
The mine is powered by a 225KVA generator which runs the wet screen
(washing plant). Blackmore says that the local Eskom transformer was
stolen about two years ago and was never replaced. “We
have applied for a reinstallation but we believe that
currently the cost is prohibitively high, effectively
excluding small mining operations from being
able to access electrical supplies,” he says.
“The most important thing is to remember that it takes much longer
to get licenses and permits than one would expect. There are no
simple guidelines to follow when starting a small scale mining
operation, and this can cause long delays in becoming compliant with
all the exacting demands of running a mining operation. Having said
that, the DMR has been a big influence in our success to date, as they
have given us great advice and assistance, ensuring we meet all the
legal requirement when operating a modern mining venture. During
this time you need to able to fund the operations; excavating bulk
samples and developing the market. But to convert your prospecting
permit into a mining license takes time,” says Blackmore.
AST didn’t buy their equipment directly from Original Equipment
Manufacturers, and converted used equipment into the very
effective fleet keeping the mine going today. However, Blackmore
says it might be worth investing in service contracts with OEMs,
although it might be more costly than maintaining the fleet in-house.
“We waited two years before we could blast – so apply for a blasting
license right from the beginning. We should have blasted a lot
earlier rather than struggling mechanically trying to
excavate the material,” he says.
“And the other important point is to
understand the market and conduct
extensive research – what the actual
tonnages are that can be delivered
and how big the demand for your
product will be. Most importantly
though, is to have the means
to weather an economic storm
like the one we are currenlty
experiencing,” he concludes.
Advice for small scale miners
So having been a small scale
miner in South Africa for more
than four years, what would
Blackmore’s advice be to budding
entrepreneurs in the South
African mining industry?
"It takes much longer to get
licenses and permits than one
would expect.
A Bell B30 ADT is used to
haul the material from the
dry screen to the wash
plant.
www. africanmining.co.za
African Mining Publication
African Mining
African Mining September 2019
23