Industry intelligence
KIBALI AIMS FOR FULL PRODUCTION Eight years and USD2.5-billion after Randgold Resources started developing Kibali in the Democratic Republic of the Congo( DRC), the giant gold mine is expected to be in full production this year, following the successful commissioning of its underground operation’ s integrated automated ore handling and hoisting system.
According to Mark Bristow, CEO at Randgold, Kibali is on track to produce its targeted plus 700 000 ounces of gold in 2018, making it one of the largest of its kind in the world.
The mine’ s high level of mechanisation, which features multiple driverless loaders operating with full automation as well as a single haulage drive with a high-strength surface, is believed to be a first for the gold mining industry in Africa.
“ All that now remains to be done is to rampup the underground production and complete the construction of Azambi, Kibali’ s third new hydropower station, which is scheduled to be plugged into the grid by the middle of this year,” says Bristow.
DRA SECURES EXXARO CONTRACT Global engineering firm DRA has secured a contract with Exxaro Coal Mpumalanga, a subsidiary of JSE-listed Exxaro Resources, to construct a 500 tonne per hour( tph) coal handling and preparation plant in Belfast, Mpumalanga.
The coal handling and preparation plant consists of primary and secondary sizing stations, overland conveyor, two 7 500t silos, low-gravity and highgravity dense medium separation( DMS) modules, thickener circuit, filter plant, and stacker conveyor. The plant will produce both a domestic and an export product.
The project got underway in January 2018 and is expected to be completed in October 2019.
Cyril can solve mining’ s woes
There is new hope with Cyril Ramaphosa in the driving seat of South Africa, but a lot still needs to be done before the country returns to being a top global mining investment.
The South African mining industry is in danger of becoming paralysed by litigation and adversarial relationships. This is according to Owen Murphy, Africa desk leader at BDO South Africa. Murphy says there is a need for a fresh approach to finding pragmatic solutions and unlocking the sector’ s potential.
Mining’ s contribution to the economy has declined in recent years. Mining and quarrying currently contribute less than 10 % of the GDP, although a sizable proportion of South Africa’ s foreign exchange earnings is still generated by the sector.
With the appointment of President Cyril Ramaphosa, there is hope that the Mining Charter deadlock will be broken soon. However, it is not only the Charter that is regarded as being a constraint to the growth of South Africa’ s economy. The industry remains heavily regulated. There are onerous and contentious regulations governing exploration permits, including mining authorisations; tax; royalties; labour relations; health and safety; community relations; environmental issues; and rehabilitation.
“ One solution might be for a new player, with enough cachet in government, business, and labour, to broker a deal. One could identify the main points of disagreement, then establish an inter-ministerial task team with the power to call a moratorium on legal challenges, and try to negotiate. The obvious candidate to do this is Ramaphosa. He has the respect of business and knowledge of the industry from almost a decade leading the National Union of Mineworkers. Ramaphosa has also expressed sentiments along these lines. In Business Day earlier this year, he wrote of the need for,“ a new deal capable of unleashing the country’ s competitive and entrepreneurial energies,” says Murphy. Ramaphosa has brought a renewed urgency to find pragmatic solutions in the broader social interest.
Bloemfonteincourant. co. za
New age of mining
Stronger mineral markets underpinned a more upbeat mood at the Investing in African Mining Indaba, which took place in Cape Town in February. But the important messages from opinion leaders at the event had the sound of ushering in an age of mining differently.
“ Encouraging signs at this year’ s Indaba were the bigger contingent of junior miners and explorers pitching exciting projects around Africa; these were thin on the ground in recent years,” says Andrew van Zyl, partner and principal consultant at SRK
Consulting.“ Significantly, however, we are also hearing more assertive calls for more cost-effective application of mining investments— with greater collaboration and shared value among stakeholders.”
Van Zyl highlights how quickly the conditions for mining can change, for better or for worse, making it difficult to generalise about where the best investment destinations lie. It was increasingly clear, though, that short-termism— whether adopted by companies or governments— undermined the sustainability of individual projects and indeed the sector as a whole.
“ Closer collaboration between parties can create a more conducive environment for mining in Africa, especially when the commodity is not a precious metal, and requires longerterm and more diverse investments in infrastructure and in-country capacity,” he says.“ Broader engagement going forward between governments and mining companies will be essential, and this responsibility cuts both ways.”
[ 4 ] MINING MIRROR APRIL 2018