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 .
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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