Mining Mirror February 2019 | Page 8

Industry intelligence Aspasa unpacks proximity detection MC acquires key properties Baobab Mining & Exploration, a subsidiary of coal mining company MC Mining, has acquired two key properties for its Makhado Project in the Limpopo province of South Africa. The two properties, Lukin and Salaita, which were being used for hunting purposes, were bought for about R70-million from private owners. According to David Brown, MC Mining’s CEO, the acquisition completes the suite of surface rights required for the Makhado Project permit. “With the acquisition of the properties, the company can proceed with the geotechnical and related studies for the mine’s infrastructure. The initial tranche of the purchase price will be funded from internal cash flow,” says Brown. MC Mining has made substantial progress on the Makhado Project milestones, including an off-take agreement for approximately half of the hard-coking coal to be produced at the mine. Negotiations for the sale of the remaining hard-coking coal as well as the thermal coal are at an advanced stage while funding initiatives are also progressing. The mining industry’s efforts to achieve a ‘zero harm’ approach are achievable, but this will need a fundamental change in mindset from mine leadership, which includes a relentless focus on managing catastrophic and fatal risks. This is according to Kumba Iron Ore’s executive head of safety and sustainable development, Philip Fourie. “By addressing the leading indicators for fatal accidents, they will be automatically eliminated. We know the fatal risks facing us, and we need to manage them properly,” said Fourie. A step-change in the way Kumba Iron Ore views safety has seen a dramatic drop in serious incidents and injuries across its operations, with zero fatalities since 2016. Since it began implementing a comprehensive ‘elimination of fatalities framework’ in the second half of 2016, Kumba has remained fatality free for almost two years, and it has made great strides in safety, with high-potential incidents reducing by 77% and total recordable cases by 45% for the first half of 2018. Fourie says the elimination of fatalities approach recognises that fatality prevention and accident prevention are two different issues, which demand a complete focus on managing fatal and catastrophic risk. “The traditional thinking is that several LTIs turn into a fatality — that’s simply not the case. The circumstances that cause fatalities are totally different to those that cause accidents. If we had continued with the old approach of addressing the top five causes of accidents, we would have only prevented two of our 47 fatalities since 1972,” said Fourie. Fourie outlined a six-point approach to achieving a ‘zero-harm’ approach — and it starts at the top. Firstly, leaders need to change their mindsets around safety and understand that whatever happens on their watch is a reflection of their leadership. At Kumba, safety results now form part of employee key performance indicators (KPIs) and as such, affect their performance-based remuneration. This is followed closely by creating a culture of safety and caring at the mines. This takes time and significant leadership commitment to establish. “To eliminate fatalities, leaders must be in the field where the risk work is taking place. When workers see this, they are [6] MINING MIRROR FEBRUARY 2019 Zero harm the way forward Philip Fourie, executive head of safety and sustainable development. encouraged to follow correct procedures more. This has had a major impact on reducing our accident rates,” said Fourie. Thirdly, it is vital to implement a well- designed risk and change management process that identifies the critical controls of the fatal risks. Using benchmark figures, a typical opencast operation has in the vicinity of 800 controls to prevent accidents. About 80 of these are critical controls, which can result in a fatal accident if they fail. “If we can ensure 100% compliance, 100% of the time, then we will eliminate fatal accidents,” said Fourie. Fourthly, mines must become learning organisations. They need to learn properly from their own experiences, from the broader South African mining industry, and from the rest of the world. Fifthly, is the imperative for proper planning and scheduling of fatal risk work — or, as Fourie says: “Unplanned work is unsafe work.” And finally, it is vital to monitor safety performance and address shortcomings. Every high-potential hazard and incident has to be treated as if it were a fatal accident, with the same rigour and investigation processes. “We truly believe that zero harm is achievable; this is supported by the fact that Kolomela Mine achieved a record 154 injury- free days in 2017,” said Fourie. “But it’s an ongoing process. We can’t rest until we have 100% compliance.” Mining association Aspasa is working closely with government and role players to ensure its members understand and adhere to new requirements relating to proximity detection systems (PDS) for mobile machines in surface mining operations. New legislation promulgated by the Department of Mineral Resources (DMR) requires mines to take steps within the next two years to physically prevent contact between mobile machines and humans, or to install PDS on trackless mobile machinery (TMM) for effective collision management. These measures need to be in place by no later than December 2020, failing which severe action will be brought against responsible parties and mine owners. According to Thys Greyvenstein of Minerals Council South Africa, this is not as straightforward as it may seem, as proper risk assessments need to be done first to know how to comply. “This is precisely why Aspasa is holding workshops and developing documentation that will guide our surface mines in future,” says Greyvenstein. Greyvenstein explains that to comply, mines’ management teams need to understand how to do effective risk assessments. They need to understand PDS control systems’ effectiveness and how to implement traffic management plans that remove people from harm’s way. They must also understand that by the time TMM or alternatives become mandatory where risk exists, the technology will still not be foolproof, and mine owners will still need to look at other ways to reduce the risk. Wescoal looks solid JSE-listed coal miner, trader, and supplier Wescoal Holdings reported solid results for the six months ended 30 September 2018. Despite challenging market conditions such as rand volatility, a technical recession, and policy uncertainty, Wescoal performed exceptionally well, with revenue increasing by 28% to R2.1-billion (HY18: R1.6-billion). According to Wescoal CEO Waheed Sulaiman, the company’s management team has consistently progressed the disposal of non-core assets and actively sought out acquisitive value- enhancing opportunities in line with its strategy. “The company is solidly on track to meet its production targets and is well positioned for steady sustainable growth,” says Sulaiman. Wescoal is in advanced negotiations with Ata Resources to join the consortium that intends to acquire the entire issued share capital of Universal Coal. The company disposed of Leeuw Braakfontein and Intibane Collieries as non-core assets in line with their strategy. According to Sulaiman, about R45- million has been spent on capital expenditure, with the focus areas being mine development, deferred stripping, and maintenance of plant and equipment. www.miningmirror.co.za