African Mining September 2021 | Page 27

BUSINESS •

The main study that then needs to be conducted is the Bankable Feasibility Study ( BFS ). The BFS proves the business case of the mining operation . The content would include , but is not limited to , engineering drawings , proposed mining methods and schedules to the documents that would prove the company is in a financially sound position in order to bring the mine to full operational status .

These are usually contained in technical and financial competence declarations . The relevant department could also request a breakdown of operational costs over certain reporting periods . A description of the required infrastructure in terms of electrical , water and other essential services need to be submitted .

The costs related to the technical and labour aspects , and the expected cash flow , forms part of the document . The technical and financial models ( TFM ) make up an essential component of the supplied documentation . This is the main services offered by Bowline Professional Services .

A full description of the deposit and a Competent Person ( CP ) report are required to establish the value of the deposit and to adhere to international mineral reporting codes . These competent person reports need to be written and compiled according to the applicable mineral reporting code for the country and / or the country where the company intent to list on a stock exchange . These reports would normally be accompanied by a mineral valuation report . A market study forms part of the applications .

Complying with environmental requirements In the last couple of years , the Environmental , Social and Corporate Governance ( or ESG ) as it is more commonly referred to , has become the leading trend in mining . Companies that adhere to the ESG reporting , has performed better in the last reporting year , according to several independent studies by PWC . There has been a steady increase in the environmental requirements in most African countries over the last decade . The documentation that needs to be submitted to the relevant departments or agencies for approval range from Environmental Impact Assessments ( EIA ) to Environmental Management Plans ( EMP ).

Separate applications usually need to be lodged for surface or groundwater use for production and processing purposes . It is now also a requirement in African countries with a large mining sector

Progressing a mine to production in parts of Africa may take several years .

and operations that have been operational for decades , to create and contribute to a rehabilitation fund .

These funds are only released post-closure for projects such as contouring of the landscape and erosion control and the reintroduction of indigenous fauna and flora and maintenance of infrastructure that remain post-closure , such as tailing storage facilities .

Mining activities like blasting can only commence once all the necessary licenses and permits have been awarded .