RSA – R14,50 (Incl.VAT) ISSN 1562-9619 Volume 21 no 4 February 6–12, 2015

NEWS FOCUS Eskom urged to go for stability before improvement Page 14

INSIGHT First output from Lace mine due in second half despite AMCU strike Page 6

FEATURES Platinum-Group Metals Page 24 NEW POSSIBILITIES With launch of Africa’s first nano computer tomography scanner, SA university opens way for 3D analysis of ores

Page 10

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10 With launch of Africa’s first nano computer 15 DRC conflict gold being sold 20 African growth tied to trade, tomography scanner, SA university opens on international markets not mining – consultant way for 3D analysis of ores

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6 First output from Lace mine due in H2 despite AMCU strike 17 African Modular Building Solutions 7 Treasury unlikely to raise, amend mining taxes in 2015/16 – Deloitte 29 BMG 30 Cyest Technology 8 Mining boosts world’s poorest regions – ICMM 33 Dymot Engineering 8 Glencore mulls closure of some South African coal operations 13 ExecuJet South Africa 12 Record-quarter Sibanye forecasting best ever 2015 gold output 21 Filvent 12 Lonmin’s refined platinum output plummets on smelter shutdowns 12 GoIndustry 12 Anglo may record noncash impairment charges in price plunge parry 30 Hansen+Genwest 14 Eskom must go for stability before improvement – GE 15 Hot Platinum 14 WCC advances Eskom talks, export coal project 38 I-Cat Environmental Solutions 15 CoAL’s Vele colliery receives enviro nod for plant upgrade 14 L & J Gemmell Plant Services 16 Industry pleased with new environmental system – DMR 7 Maxam Dantex South Africa 17 Chinese slowdown affecting viability of new West African iron-ore projects 26 MDM Technical Africa OBC Nalco 18 Indian company mulls major developments at its Mozambique mine 28 Prepquip 18 Chinese breathe life back into Uganda’s Kilembe copper/cobalt mine 23 Prospectors and Developers Association 19 Minerals royalty tax regime to remain in force – Zambia’s new leader of Canada 20 Resource prices source of adversities and opportunities for Africa 25 Sweet-Orr 21 De Beers aiming to grow Forevermark brand in SA this year 24 Ukwazi Mining Solutions 36 Australian company starts trial reef residue mining in Pilgrim’s Rest 7 Vesco Plastics 36 Petra declares dividend, ups diamond production guidance 31 WorleyParsons

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LO MINING WEEKLY | February 6–12, 2015 3 PERSPECTIVES Picture by Chief Photographer Duane Daws KANGALA PIT: This opencast operation, the ASX-listed Universal Coal’s Kangala Colliery, is located in South Africa’s Witbank coalfield. The 2.4-million-ton-a-year run-of-mine operation has an installed plant capacity that can be expanded to 4.25-million tons a year if required. Most of Kangala’s thermal coal is supplied to South Africa’s State electricity utility, Eskom. Saleable tonnages averaging 2.1-million tons a year are planned from the 2.4-million yearly run-of-mine production rate. Kangala’s defined and proven reserve of 21.55-million tons will sustain a life-of-mine (LoM) of more than eight-and-a-half years. An LoM offtake agreement has been concluded with JSE-listed Exxaro for the export of thermal coal.

4 MINING WEEKLY | February 6–12, 2015 LO EDITORIAL INSIGHT

FACTS INFIGURES Tax change in SA unlikely, Zambian tax sting to stay, 31.6 10 Zimbabwe spews tax mess The percentage by which The amount in billion China’s iron-ore imports rands that South Africa’s CONSULTING GROUP DELOITTE BELIEVES it unlikely that South from Australia rose to Department of Water and African Finance Minister Nhlanhla Nene will introduce new 584.4-million tonnes in Sanitation has allocated mining taxes or increase mining’s prevailing tax burden in his 2014, as soaring production to mitigate acid mine drain- upcoming maiden Budget speech on February 25. Read on page 7 by miners drove prices age in the Witwatersrand of this edition of Mining Weekly of Deloitte instead expecting Nene down and eliminated some goldfields. to acknowledge mining’s stagnation and indicate the future steps smaller players. that government is likely to take to stimulate mining. It would, in SHEILA BARRADAS | RESEARCH COORDINATOR & SENIOR DEPUTY EDITOR any case, be folly to make changes ahead of the recommendations of the Davis Tax Committee, as well as the tweaking of the Mineral and Petroleum Resources Development Act Amendment Bill, which President Jacob Zuma last month referred back to the National Assembly, citing possible unconstitutionality. Such fiscal foresight appears to have been lost on the countries north of South Africa, with incoming Zambian President Edgar Lungu blocking his ears to the warnings that his country’s onerous new mineral royalty tax regime seriously threatened the economic viability of several mines. Read on page 19 of this edition of Mining Weekly of Zambia seemingly failing to have learnt from its 2008 windfall tax debacle, which left many out of work and which had to be ignominiously withdrawn a year later. Surely by now, everyone in Zambia must know that a tax burden on the mining industry, without taking into account the cost of production and unpredict- ability of the copper price trend, will inevitably lead to mine closure, DIAMOND PRICE LAID BARE: Diamond price weakness will continue job loss and adverse knock-on effects. until new sources of liquidity are found, say Liberum Capital mining Also constantly failing to understand the destructive economic analysts Ben Davis and Richard Knights. The share price of London-listed consequences of government uncertainty is the Zimbabwean gov- Gem Diamonds fell sharply after Petra Diamonds announced it was experiencing weak pricing and the analysts are encouraging investors to ernment, which, at the time of going to press, had sowed confusion look beyond current negativities, given that diamonds have the advantage among the country’s platinum mining companies around the issue of being the most consolidated of all world commodities. To soften the of taxing the export of mined products. Platinum companies Impala illiquidity blow, De Beers is allowing its sightholder customers to defer 25% Platinum (Implats) and Aquarius Platinum were chasing their tails of their allocation and Alrosa is expected to follow suit. last Friday as they put out Stock Exchange News Service announce- ments on the failure of Zimbabwe to defer the 15% revenue export tax on unrefined platinum, as had been expected. Investec Securities SPEAKOUT complained in a note that Zimbabwe was inflicting greater hardships “It’s a number we want to beat.” on an already struggling industry and Liberum’s mining analysts – South Africa’s Richards Bay Coal Terminal CEO, Nosipho warned the tax would have a “disastrous” effect on profitability. At Siwisa-Damasane, referring to the 71.3-million tons of coal the the time of going to press, Implats was seeking clarity from the terminal exported in 2014 authorities. For Aquarius Platinum’s Mimosa mine, the implied impact on its second-quarter results would be to reduce cash margins from $182/oz to $17/oz. It appears, further, that the export “We shall try as much as possible to balance your interests against tax will not necessarily be tax deductible those of our people.” against corporate tax. Aquarius cautioned – Zambian President Edgar Lungu, explaining that his that, if platinum mining companies com- government wants to maintain an open dialogue with investors, plied by building processing plants within while providing for its citizens Zimbabwe, the risk of those assets being nationalised would be raised on the basis of it being far easier to sell a final product “Declining oil prices? You take it and smile.” overseas than a raw product. – Chief executive of MMG, a subsidiary of China’s State-owned Minmetals, Andrew Michaelmore, referring to declining oil prices as a boon for mining companies, such as MMG, which buy vast quantities of diesel

SHEILA BARRADAS | RESEARCH COORDINATOR & SENIOR DEPUTY EDITOR

LO MINING WEEKLY | February 6–12, 2015 5 NEWS&INSIGHT

DIAMONDS Tailings Retreatment In the year ended December 31, the company processed 308 047 t of tailings and recovered Counting Down 18 534 ct of diamonds at an average recovered grade of 5.96 carats per hundred tons (cpht), First output from Lace mine due in H2 despite AMCU strike compared with a budgeted recovered grade of 5 cpht. Tailings retreatment processing ceased NATALIE GREVE | CONTRIBUTING EDITOR ONLINE in September, as the surface earthmoving fleet was relocated to build a iamondCorp’s developing 150 000 m3 surface process water Lace diamond mine, in storage dam in preparation for Dthe Free State, is likely kimberlite mining. to come into production in the “This activity was successfully second half of this year, despite completed in the dry winter a six-week strike by members of months ahead of the summer the Association of Mineworkers rains. The construction of the and Construction Union (AMCU) new dam, plus additional in October and November. surface drains has allowed the Following the implementation mine to capture all of the water of a revised underground required for 2015 kimberlite develop­ment schedule by processing,” DiamondCorp 74%-owned subsidiary Lace outlined. Diamond Mines (LDM) in early An additional large sur­face 2014, dual-listed DiamondCorp dam is planned for construc- announced in July last year that ­tion this year, which will the ramp-up of commercial store sufficient water for production from underground full production require­- kimberlite mining could be ments during low rainfall brought forward by six months years. to the first half of 2015. The timing of the restart of Although LDM is no longer tailings retreatment this year expected to start commercial will be determined by the dam production from underground TREASURE TROVE building schedule. kimberlite mining in the first half The Lace diamond operation, in the Free State of this year, production will still Diamond Sales, Market start four months ahead of the original mine DiamondCorp outlined in a statement. Diamond sales for the 12 months totalled schedule. It added that the mine had remained 21 700 ct for proceeds of $1.36-million at an DiamondCorp said last week that the strike unaffected by the electricity supply average sales price of $63/ct – slightly ahead by AMCU members had revealed several constraints in South Africa, but cautioned of the forecast for the year. underground workplace inefficiencies, which that there had been a growing delay in value- Profit share on two diamonds, which were were addressed when the workforce returned added tax refunds from the South African beneficiated from a 15.2 ct stone recovered to work. Revenue Service. from tailings, and the sale of fine diamonds As a consequence of these changes, a 15% Despite this, the overall mine development added a further $58 544 to income for the year. improvement in development productivity expenditure remained “close” to budget. “Short-term demand for rough diamonds had, thus far, been achieved and first DiamondCorp, meanwhile, took delivery of continues to be soft in response to slower commercial production from underground its new Sandvik 421 drill rig over the quarter, polished sales and tightening liquidity as a kimberlite mining is expected in the second which has the capacity to drill longholes up number of banks that finance the cutting half of 2015. to 54 m in length and 127 mm in diameter and polishing sector reduce their exposure The company had, meanwhile, continued and will be used to complete all the longhole to the sector. with the implementation of a revised drilling on the production levels in the Upper “[In the] longer term, the outlook remains underground development schedule K4 (UK4) and 47L block cave. positive as world economic growth recovers and budget in the three months ended Operator and artisan training is now under and demand for diamonds outstrips supply,” December 31. way, and the rig will shortly go underground, said the group. Tunnel development costs, to date, are where it will be tested and commissioned The company said it had not factored averaging R40 764/m against a revised budget ahead of drilling the slot drive and troughs for diamond price increases into its Lace of R37 000/m. the first stope in the UK4 block. project model since the 250 m level bulk test “The overspend continues to be the result of Underground core drilling of the UK4 block diamonds were valued at $160/ct in 2012. increased operating costs on the company’s continues to delineate significant volumes Nonetheless, in light of the current market underground mining fleet and delays of high-grade kimberlite above the 365 m weakness, DiamondCorp is currently resulting from the AMCU strike. level. modelling the Lace project at $150/ct. “The benefits of maintenance and repair The drilling, bulk testing and release of At the current rand/dollar exchange rate, cost-saving initiatives reported previously an updated resource statement will now be this gives cash operating margins of 81% on are currently being offset by cost increases on completed in the second quarter, rather than the UK4 block and 71% on the deposit spare parts resulting from the weaker rand,” the first quarter, as previously planned. overall.

6 MINING WEEKLY | February 6–12, 2015 EG NEWS&INSIGHT

TAXATION Holding Steady Treasury unlikely to raise, amend mining taxes in 2015/16 – Deloitte

NATALIE GREVE | CONTRIBUTING EDITOR ONLINE

mid a growing appreciation by govern­ ment of the challenges constraining the A South African mining sector, consulting group Deloitte believes it is unlikely that Finance Minister Nhlanhla Nene will, during his 2015/16 National Budget speech later this month, intro­ duce new mining taxes or increase the sector’s prevailing tax burden. “Our view is that he is unlikely to introduce Vesconite Hilube or raise taxes in the mining sector [as a result of its] current performance. We do, however, expect Pump Bearings him to acknowledge stagnation in the sector and G Can run dry intimate what future steps government will be taking to try [to] stimulate the sector. NHLANHLA NENE G Longest life “The discussion is no longer about how much Mining tax changes not expected in his G revenue [government] can get from the industry, Budget speech Avoid shaft seizures but rather how it can assist it,” Deloitte mining tax specialist director Alex Gwala told a pre­ Vat refunds by Sars. “Since introduction in Tel +27 11 616 1111 Budget media roundtable last week. 2010, mining royalty collections have remained [email protected] Amendments to mining tax legislation insignificant in comparison with the collection www.vesconite.com were also unlikely to precede the Davis Tax of other taxes. The poor performance of this Committee assessment of the regime and clari­ sector is also reducing these collections further, fication of the Mineral and Petroleum Resources as the royalty is calculated on [dwindling] gross Development Act (MPRDA) Amendment Bill, sales,” Gwala said. which President Jacob Zuma this month referred Commenting more broadly on the firm’s Budget back to the National Assembly, citing possible speech expectations, Deloitte Africa Taxation unconstitutionality. Services managing partner Nazrien Kader told Zuma stated on January 10: “This year, we the roundtable that Nene would be under “intense must finalise amendments to the applicable scrutiny” during his February 25 address, and laws to ensure that mineworkers and mining would take to the podium against the backdrop communities share equitably in South Africa’s of a much-debated electricity crisis, moderat­ Shaping the world mineral wealth.” ing inflation, a volatile rand, subdued economic “We [thus] expect Nene to give clarity on growth and a rising government wage bill. we live in whether these amendments [will] include any Globally, ratings agencies would also be watch­ tax-related legislations. In my opinion, the ing closely, with at least one major rating agency MPRDA Bill [will be passed this year] – it’s going to having South Africa’s current sovereign rating on happen . . . it’s positive,” Gwala told Mining Weekly. a ‘negative’ watch. According to the National Treasury and the “Given the Presidential commitment to an South African Revenue Service (Sars), income tax ambitious mandate involving a significant invest­ revenue from the mining sector had increased by ment in infrastructure to revitalise the economy, an average of R1.5-billion a year, from R9-billion all eyes will be on Nene as he tries to balance in 2009/10 to R15-billion in 2013/14. expansionary measures with austerity ones . . . “However, we are likely to see a reduction in while staying the course set by his predeces­ this trend in 2014/15 as a result of reduced com­ sor to limit spending and hold real noninterest pany profits in the face of weak commodity expenditure growth to a yearly average of 1.8% prices, unforeseen shocks to economic activity, over the three-year spending period,” she said. labour disruptions, safety stoppages, as well as Moreover, while raising personal taxes may be the impact of energy shortages,” he noted. “unwise and unpopular”, Kader said, it was con­ According to 2014 tax statistics, while value- ceivable that Nene would increase the marginal added tax (Vat) remained the second-largest tax for individuals to 45%, while maintaining a Maxam Civil Explosives source of tax revenue for the fiscus – contribut­ robust approach to the alignment of tax policy +27 11 831 1300 ing 3.8% – the mining industry negatively con­ with global standards. Focus would also likely tributed to the overall Vat collections owing intensify on compliance­ by high-net-worth E-mail: [email protected] to the large volume of zero-rated mineral exports, individuals and companies­ to counteract tax- www.maxam.net the funds of which accounted for 22% of the total base erosion and profit shifting. © CM 070214CG

EG MINING WEEKLY | February 6–12, 2015 7 NEWS&INSIGHT

GLOBAL MINING can flow from the mining and metals industry,” Hodge adds. Of the 35 countries most dependent on Growth Spur mining, all but Australia and South Korea are developing countries, and of the top 70 countries, Mining boosts world’s poorest regions – ICMM 63 are low-income countries that stand to expand their national economies through mining-linked investment, exports, taxes and employment. MARTIN CREAMER | EDITOR The report notes that the critical focus is not on how mining can be sustainable, but on how he global mining industry makes its big­ mining, minerals and metals can contribute to gest contribution in the world’s poorest sustainable development. Tregions, an International Council on The traditional approach to understanding Mining & Metals (ICMM) study has found. the economic importance of mining has been to The study, which became available in published focus on the percentage that any single country form last week, finds that mining spurs the growth accounts for in total world mining production and development of national economies in gene­ and, from that perspective, the five Brics coun­ ral and impoverished economies in particular. tries of Brazil, Russia, India, China and South Created to catalyse strong environmental and Africa have the biggest share of world production social performance in mining, ICMM shows in its value, while Uzbekistan and Turkey are rising up latest report that it is both possible and essential the production value rankings to join emerging to strengthen the contribution of mining to eco­ countries like Chile, Indonesia and Mexico. nomic and social development to make the world The ancient mining industry has fostered eco­ an economically stronger place. nomic development since the dramatic evolu­ Mining can account for as much as 60% to Picture by Chief Photographer Duane Daws tions of humankind in the bronze and iron ages. ANTHONY HODGE 90% of foreign direct investment (FDI) in low- It is both possible and essential to strengthen In contemporary society, the critical need for and middle-income countries and 30% to 60% the contribution of mining to economic and mining and metals across all societies is undis­ of total exports. social development puted. But this report dramatically illustrates Like the first edition in 2012, ICMM’s new that mining in today’s world is also a potentially report also assesses the different ways that Lonmin, BHP Billiton, Rio Tinto, Mitsubishi powerful engine of development. mining brings growth to national economies, and Sumitomo. The research underpins the priority of ICMM with the most important channels being FDI Taxes and other fiscal revenues from mining members to foster sustainable development based when foreign corporations invest in min­ typically bring in only 3% to 20% of a government’s on a strong understanding of the role of mining ing and metals operations and exports of the total revenues in low-income countries. and evidence of what works. mining products. Some very low-income countries, however, While global mining companies have the poten­ “This report increases our ability to strengthen do rely heavily on mining for fiscal revenues, for tial to generate significant economic benefits and the contribution of mining and metals to example, the Democratic Republic of Congo, also have disruptive economic, social and envi­ development,”­ says Anthony Hodge, the presi­ which relies on mining for 25% of its fiscal reve­ ronmental impacts, the report says that positive dent of ICMM, which has among its 21 major nues, and Guinea, which relies on mining for 23%. impact is best assured by companies working mining and metals members indigenous South Botswana, a middle-income country, draws together with governments and communities, African mining company African Rainbow 44% of its revenues from mining. using evidence and experience to plan well, and Minerals, headed by executive chairperson “If mining makes a major contribution to a basing strategic decisions on long-term sustain­ Patrice Motsepe, Anglo American, AngloGold small economy, national decision-making will ability and the multiplier effects mining can have Ashanti, Antofagasta, Glencore, Gold Fields, be driven by the development opportunities that throughout the economy.

DIVERSIFIED MINERS ship at Optimum, arising from difficult market power station. Outlining that the proposed clo­ conditions and the continued deterioration of sure would affect about 1 070 employees, Glencore Glencore mulls closure the export coal price. said that Optimum had informed the Department of some South African The company said in a media release that the of Mineral Resources and relevant unions of the coal operations affected operations included the Optimum open­ potential closures and would now enter into a cast operations, large portions of the coal pro­ Section 189 process with the recognised unions MARTIN CREAMER cessing plants and associated support services, and employees to determine the settlement for EDITOR which would be placed on care and maintenance all affected employees. DIVERSIFIED mining major Glencore is con­ and considered for reopening should economic In addition, Optimum would ensure that the sidering the closure of some of its coal mining conditions improve. employee engagement process was conducted operations in South Africa, which would reduce Optimum produces 10-million tons of sale­ in line with applicable labour legislation. its overall South African production by at least able coal a year from opencast and under­ Optimum would explore options for rede­ five-million saleable tons of coal a year and affect ground mines, half of it bought domestically by ployment across the Glencore South African more than 1 000 employees. State-owned power utility Eskom and half of it coal opera­tions as well as putting in place sup­ This announcement by the London-, Hong exported. port services for affected employees and their Kong- and Johannesburg-listed company, headed Optimum intends retaining the underground families. by CEO Ivan Glasenberg, follows a detailed mining operations as well as sufficient process­ The company added that it was continuing to review of its Optimum Coal subsidiary, which ing capacity at Optimum to ensure the conti­nued review all of its coal operations in light of the was initiated because of ongoing financial hard­ supply of coal to Eskom’s coal-fired Hendrina prevailing negative economic climate.

8 MINING WEEKLY | February 6–12, 2015 EG ENVIRONMENTAL PROTECTION

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NANOTECHNOLOGY NEW POSSIBILITIES With launch of Africa’s first nano computer tomography scanner, SA university opens the way for 3D analysis of ores

ZANDILE MAVUSO | SENIOR STAFF WRITER

TRAILBLAZER Stellenbosch University’s central analytical facility is the only facility in Africa that has the NanoCT scanner at their disposal

tellenbosch University’s (SU’s) Central can be investigated in 3D. SRK Consulting corporate consultant and Analytical Facilities department “This has proven to work well for many partner Hennie Theart notes that the nano CT Slaunched the first and only nano mining companies internationally, owing scanner provides a new method to determine computer tomography (CT) scanner in to the technology using a nondestructive the 3D size distribution of minerals. Africa in September last year, with the technique. As a result, it provides useful and This will be possible in cases where the technology having the potential to benefit fast structural information about the inside of desired mineral has an atomic density that the mining industry in a cost-effective and the rock, which, in many cases, allows for more contrasts with that of the surrounding time-efficient way. selective analysis to take place,” says Du Plessis. minerals in the rock and there are no Small samples – such as a rock chip or Being aware of its ability to affect the complex assemblies of ore minerals with a a small stone – can be analysed at a very mining industry positively, consulting firm similar atomic density. high resolution of up to 500 nm He adds that, while this using the NanoCT scanner, method is more suitable for enabling scientists and engineers initial mineralogical studies for to visualise the inner structure mineral extraction purposes than of an intact object, seeing shapes for direct exploration work, “there and connectivity in three might be some applications where dimension (3D). such information can be useful in As a result of its precision and exploration, such as to determine increasing awareness of the power the grain size fraction that needs of the technology, SU CT scanner to be sampled in stream-sediment facility manager Dr Anton du regional geochemical surveys”. Plessis says that, in Europe and SU CT facility analyst Stephen the US, many mining companies le Roux indicates that, in South are using the technology to Africa, most analyses in explo- investigate orebodies to better ration are currently conducted analyse their deposits in 3D and using field mapping and drilling two-dimensional (2D) slice images programmes. As these methods or virtual thin sections. In the oil entail only visual analysis of the and gas industry, the porosity SLICED ORE surface, only 2D analysis of a and pore connectivity of rocks The technology allows for orebodies to be investigated in 3D slice images project can be obtained.

10 MINING WEEKLY | February 6–12, 2015 LO roots of peridotite and eclogite. Peridotite is a dense, coarse-grained THE TWO-MINUTE igneous rock comprising olivine and INTERVIEW pyroxene minerals and eclogite is a metamorphic rock comprising pyroxene omphacite and pyrope-rich garnet. Moreover, this has indicated that the concentration of diamonds in a metasomatic vein can be extremely high and a greater bulk of these mantle rocks are barren of diamonds and have either not been metasomatised or have not been metasomatised by the correct diamond-producing fluids. “Once the understanding of this notion is accepted, it conceptually enables one to develop an understanding of what the HENNIE THEART problems are in the establishment of diamond ANTON DU PLESSIS The availability of the NanoCT scanner to the distribution throughout a kimberlite pipe,” The NanoCT scanner at Stellenbosch mining industry can affect exploration positively Gurney explains. University is the first in Africa and aims to Gurney states that, for the mining industry service the mining industry through sample However, exploration and mineralogical holistically, there are a lot of other applications scanning of orebodies investigations can be done in 3D using the for which the scanner would be useful. These NanoCT scanner, allowing for not only the include assessing beach sand, silicate deposits Stellenbosch University CT Scanner Facility minerals to be viewed in accurate dimensions and platinum or gold distribution in drill core manager Anton Du Plessis tells Mining but also the findings to be revisited at anytime spring, as well as many other applications Weekly about how the NanoCT scanner after leaving site, as the data can be stored in where the distribution of a primary ore or the works in order to bring about desired results a laboratory. detection of minor phases is of interest and and also indicates the different orebody “The scanner is more of a preprocessing commercially important. sizes that can be scanned with the scanner. type of tool that enables you to see if all the Theart adds that the scanner will be useful He points out the different analyising meth- mineral samples that you bring into the for those elements and associated minerals ods used in the scanning of different sam- plant are in actual fact what you need,” says that have a relatively high atomic mass, ples, making particular distinction between Le Roux. compared with the enclosing silicate minerals the extended release (XR) and the induc- Theart states that using the scanner and relatively monomineralic ore mineralogy. tively coupled plasma mass spectrometry becomes pivotal during the initial phases of Silicate minerals include gold ores, tin, (ICPMS) methods. mineralogical investigations of some types tungsten, niobium, certain types of What makes the NanoCT scanner effective of orebody samples when they are collected molybdenum, uranium ores, platinum-group regarding drill cores in the mining sector? and submitted for mineralogical studies. element ores and rare-earth minerals. Full three-dimensional (3D) X-ray imaging of “Also, when the economic mineral is drill cores is a fast, nondestructive method disseminated in trace amounts, such as in Skills Development that can fit into the drill core analysis work- the case of gold deposits, the mineralogist Although the scanner enables the mining flow, enabling a geologist to get images has to study a large number of polished industry to use an effective method that quickly and 3D information of each drill core sections using either conventional micro- could affect the industry positively, Du Plessis nondestructively. This further enables a geologist to select scopic studies or advanced equipment, such highlights that, in some cases, where the good samples for further analysis using as the quantitative evaluation of minerals by investigation is not routine, there is a need traditional methods such as assay, XR and the scanning electron microscopy method,” for skills development for all personnel using ICPMS. Le Roux explains. the scanner, especially in 3D image analysis Theart says the NanoCT scanner could, techniques, in order to make the most of the With the availability of micro CT scans, how therefore, provide an alternative and cost- technology. does this work well with the XR analysing effective method of scanning such minerals. “In as much as the scanner is useful for the method? In this new service to exploration and However, he warns that it should be noted that sector, companies still need someone who can mining companies, we offer a fast analysis the observations on the grain size of a specific set up the scanner correctly to view the desired of rock drill core samples using microCT mineral has to be considered in combination samples. Secondly, the person viewing the scans to visualise the minerals of interest, with observations on whether the mineral is sample has to know which software proce- based on density and atomic composition situated on the boundary between other min- dures are needed for the samples so that this differences, and then confirm the composi- erals or occurs as inclusions in other minerals. yields positive results for the investigations tion of different materials of interest using Illustrating the effectiveness of the or analysis,” he explains. a portable XR analyser. So they correlate NanoCT scanner in the diamond industry, The SU CT facility offers analytical and with each other. exploration and mining consulting services consulting services to mining companies, Can the scan apply to all types of orebodies company Mineral Services Group chairperson where it conducts samples to mitigate the irrespective of their density? John Gurney says using the scanner has current lack of skills to operate the NanoCT Even a dense iron-ore core can be scanned demonstrated that some diamonds are scanner. Everything is effectively provided to in a very short time to provide visual infor- formed by metasomatic – the chemical make best use of this technology. mation of the core in 3D and measure void alteration of a rock by hydrothermal and For more information on the scanner, log on volume, for example. This type of scan can other fluids – processes in veins that have to http://www.sun.ac.za/ctscanner. cover four samples an hour over 120 mm. crystallised in the cratonic upper mantle MINING WEEKLY COUPON ON PAGE 19 E357542

LO MINING WEEKLY | February 6–12, 2015 11 NEWS&INSIGHT

GOLD Glittering Outlook Record-quarter Sibanye forecasting best ever 2015 gold output

MARTIN CREAMER | EDITOR

outh Africa-focused gold mining company Eskom, in the December quarter. Sibanye Gold, which achieved record latest Its cost guidance was also on target, with total Squarter production, is forecasting best ever 2014 cash costs at $850/oz (R295 000/kg) and the output for the new year. all-in cost at $1 080/oz (R376 000/kg). Sibanye, headed by CEO Neal Froneman, Sibanye’s Kloof, Driefontein and Beatrix mines which hit the 452 700 oz (14 079 kg) quarterly produced 1.45-million gold ounces (45 127 kg) in high spot in the three months to December 31, is 2014, just over 1% more than in 2013. guiding a best ever 1.67-million ounces (52 000 kg) Underperformance necessitated a Section 189 for 2015. restructuring process at the Coke 4 shaft and a “We’ve been increasing production year-on-year slower-than-anticipated build-up at the Cooke Picture by Chief Photographer Duane Daws since listing,” Sibanye senior VP investor relations Operation overall contributed 138 400 oz NEAL FRONEMAN James Wellsted commented to Mining Weekly on (4 305 kg) of gold in the seven months of We have been increasing production the production performance of the Johannesburg- incorporation of the company’s newly acquired year-on-year since listing and New York-listed company, which bills itself asset outside Randfontein. as South Africa’s largest individual gold producer Uranium production from Cooke, which and a top-ten player globally. continued uninterrupted from May 2014, gave rise to R3.6-billion ($320-million) on the back of the Sibanye’s total latest quarter cash cost was an to a stockpile of 180 000 lb of uranium by year- expenditure needs at the Burnstone gold project impressive $790/oz (R285 000/kg), with $1 040/oz end at an average cost in the December quarter and the life-extension plans for the company’s (R375 000/kg) its all-in chalk up. of $24/lb. Uranium production of 250 000 lb is operating mines. Last year’s gold production hit the 1.59-million forecast for 2015. Dollar estimates for 2015 are based on an ounces (49 432 kg) guided, despite an Capital expenditure (capex) of R3.3-billion average yearly exchange rate of R11.20 to the underground fire at the Driefontein gold mine ($300-million) in 2014 was marginally lower than dollar. The average exchange rate for 2014 was and load-shedding by troubled State power utility guided. However, 2015 capex is set to rise 10% R10.82 to the dollar.

PLATINUM-GROUP METALS DIARY Lonmin’s refined platinum output plummets AUCTION on smelter shutdowns Online CONSTRUCTION Last bids by: 10 Feb from 14:00 MARTIN CREAMER drastic surgery,” they said. TRANSPORT, FLEET & CONSTRUCTION EDITOR Q1 underground production Construction Equipment, Mechanical Horses, SMELTER shutdowns cut a big was the highest since 2011 and chunk of refined platinum out of saleable metal-in-concentrate Trucks, Trailers, Cars & Reach Stackers Disposal incl Lonmin’s production in the three of 200 170 oz is the highest since Bell 770C Grader and Komatsu BR380 Jaw Crusher John B : 071 603 4478 months to December 31, when 2007. Lonmin expects to be the company’s overall platinum- able to process the concentrate Online MINING Last bids by: 12 Feb from 14:00 Online group metals (PGM) output build-up by the end of September. ASSMANG KHUMANI MINE slumped by 31.1%. Concentrator recoveries in Q1 High quality mining equipment & spares incl Atlas The world’s third-largest plati- were lower at 87.1%. Copco rock drills, Austentic manganese crusher num producer managed, however, The closure of the leaking liners, Phosphor bronze brushes and more to record 9% higher sales to Number One furnace for repair Herman : 082 452 8811 146 890 oz and 11.7% higher over- lowered refined Q1 output by all PGM production to 274 425 oz. 28.8% to 139 823 oz and total PGM VISIT THE WEBSITE TO VIEW ALL OF OUR The London- and Johannes- production fell to 265 128 oz. UPCOMING AUCTIONS burg-listed platinum major is The Number Two furnace is also maintaining its forecast of down because of electrode breaks. 19 Feb from 14:00 Multiple Vendors Sale 27 730 000 oz for the year and “We’re making good progress with 24 Feb from 14:00 Unitrans Fleet Disposal reducing its capital expenditure repairs,” the company, headed by 25 Feb from 14:00 Assmang Sale 13 from $250-million to $185-million, CEO Ben Magara, said in a media 26 Feb from 14:00 Transnet Engineering Sale 35 which has won analyst applause. release. While the dollar basket But Investec Securities mining price was 7.1% lower at $1 033/oz analysts Hunter Hillcoat and in Q1, the rand basket price of For more information, Marc Elliott made it clear R11 488/oz was 1.7% higher on visit in a note that they were not currency weakness. www.go-dove.com enamoured with the company’s Lonmin has been fatality current business plan. “It’ll require free for the fourth successive

12 MINING WEEKLY | February 6–12, 2015 RA NEWS&INSIGHT

DIVERSIFIED MINERS Price Impact Anglo may record noncash impairment charges in price plunge parry MARTIN CREAMER | EDITOR iven the sharply lower commodity price the overall Q4 exploration spend to $61-million. environment, particularly for bulk Equivalent refined platinum production Gcommodities, Anglo American said rose 14% to 593 900 oz mainly on higher output last week that it expected to record noncash at the Amandelbult, Rustenburg and Union impairment charges in its 2014 results. underground mines. Th e opencast Mogalakwena The London- and Johannesburg-listed mine also lifted Q4 production on higher diversifi ed major, headed by CEO Mark Cutifani, concentrator throughput and better mining MARK CUTIFANI added in a media release that full details of the productivity. At the helm of Anglo American 2014 fi nancial year impairment charges would Kumba Iron Ore’s Q4 output rose 10% to be provided when the company published its 12.4-million tons on the implementation of Australian and South African output. preliminary results on February 13. the group’s operating model and a production Copper production was down 18% to 174 800 t On the production front, higher platinum, recovery plan, with waste removal at the Sishen as a result of the decline of grade at Los Bronces iron-ore, coal output for the three months to iron-ore mine continuing to be the operational and Collahuasi in South America. December 31 saw the company’s shares rise by focus. The fourth quarter also saw iron-ore In light of the rebuilding of the line two furnace more than 2.6% in Johannesburg before mid production beginning at the Minas-Rio iron-ore at the Barro Alto nickel operation in Brazil, nickel afternoon. project in Brazil. production fell 34% to 6 700 t. Th e company also outlined in its quarter-four Production of export metallurgical coal rose 4% Diamond production decreased 8% to 8.4-mil- (Q4) production report that exploration and to 4.9-million tons in Q4 on a performance step lion carats, owing to lower grades at the Orapa evaluation expenditure had been cut by 34% to change at the Grasstree colliery in Australia and mine in Botswana and the Venetia mine in South $110-million, 52% out of evaluation expenditure, on longwall moves made a year prior. Africa’s Limpopo province. Snap Lake in Canada which fell to $49-million, and $2-million out of Export thermal coal production increased 2% also produced fewer diamonds as a result of a mainly nickel exploration expenditure, reducing to 9.7-million tons mainly as a result of upped mandatory safety stoppage.

Production at Karee was 1 124 000 t, with the biggest K3 shaft increasing production by 8.2%. Production at Westerns was 1 045 000 t, an increase of 3%, and the second largest Rowland shaft, increased production by 1.4%. Th e Newman shaft delivered a 9% increase and the Hossy shaft a 4.9% increase. Production at Easterns rose 22.3% and production at Saff y shaft rose 30.1%. Production at Pandora rose 30.5% and produc- Picture by Chief Photographer Duane Daws tion at Merensky opencast opera- BEN MAGARA We are making good progress tions was 28.2% lower than the with repairs prior year period as this operation is reaching the end of its life. Total tons milled in Q1 quarter and its lost-time-injury increased by 9.5% to 3.1-million frequency rate for the 12 months tons and the underground milled to December 31 improved by 2.7% head grade increased slightly to to 3.58 incidents a million person 4.55 g/t. hours, compared with 3.69 in Lonmin expects its net borrow- 2013. ings to be higher at the end of Th e Marikana underground March as a direct result of the mining operations produced lower sales volume. Th e company 2.7-million tons during the fi rst is confi dent of managing its work- quarter, an increase of 7.9%, or ing capital requirements through 0.2-million tons, on the prior year cost conservation measures and period. capital discipline.

RA MINING WEEKLY | February 6–12, 2015 13 NEWS&INSIGHT

ELECTRICITY 1 Power Woes Eskom must go for stability before improvement – GE

MARTIN CREAMER | EDITOR

roubled South African State power had taken long to create and would take long utility Eskom should place emphasis to put right. Ton stability ahead of improvement, “ ey won’t be xed overnight,” Immelt GE chairperson and CEO Je rey Immelt commented. suggested. Stability had to come rst and tough choices Speaking at the Gordon Institute of Business had to be made to rst stabilise Eskom’s Science (GIBS) in Johannesburg, the head of the current installed base. 137-year-old, 350 000-employee US company Immelt was also of the view that it would be said his experience of business turnarounds inappropriate for countries in Africa to opt for had made it clear that stability should always nuclear power at this stage. come rst. “In the long term, nuclear is going to have its “So I would put an emphasis on stability in day but it’s a really hard thing to do. On a scale the short term,” Immelt said in response to a of 1 to10, the building of a nuclear power plant Creamer Media question on how GE, which is a 12,” he said. has a market capitalisation of $240-billion Rather than implementing challenging – some two-thirds of South Africa’s gross nuclear power, he believed in always trying to domestic product – could help Eskom to be do the easy things rst as providing nuclear more e cient. would be hard. Tough decisions would have to be taken to “Always start with those things that can be JEFFREY IMMELT I would put an emphasis on stability in the remove day-to-day pressures so that a time- managed, done and grasped. short term framed plan could be embarked upon. “Do the really hard stu as time goes on,”  e CEO of the world’s largest infrastructure said the man who gave the exact same answer technology company said Eskom’s problems when he was on the panel of the Africa Summit is not big enough to do things to scale,” he in Washington DC. commented at question time. He viewed the South African market on its GE South Africa, which employs more own as being insu ciently large to attract than 450 people at its South African o ce, Mining Equipment Hire: signi cant volumes of foreign investment in Midrand, has its electrical distribution • 30 – 100 ton Excavators and advocated the creation of an enlarged equipment in nine Eskom power stations and Southern African regional market. is reportedly investing R700-million to develop • 40 – ton Articulated Dump Trucks “ e South African market on its own critical skills and small businesses locally.

ELECTRICITY 2 secured facility remained on an on-demand basis, with the revised balance on October 17, WCC advances Eskom talks, including accumulated interest, at A$39.3- million. export coal project Further elaborating on its developing export project, the company reiterated that infra- NATALIE GREVE structure engineer Ardbel had been commis- CONTRIBUTING EDITOR ONLINE sioned to complete a DFS on the viability of a COAL producer Waterberg Coal Company standalone export project, located in the south (WCC) and State energy utility Eskom remain in of the WCP area. discussions to resolve the “outstanding require- Stage 1 of the project would likely see the ments” to convert the Waterberg coal project’s build-up to two-million tons a year of export (WCP’s) o take memorandum of understanding product, with fi rst coal to be produced during into a coal supply agreement (CSA). the fi rst quarter of 2016. The outstanding requirements included coal Based on the draft DFS, the project team was specifi cation fi nalisation, fi nal pricing, delivery currently undertaking an optimisation exercise dates and providing Eskom with a satisfactory on the mine and production plan to increase due diligence report on the defi nitive feasibility production to four-million tons of coal over a six- study (DFS). year period by adding additional plant modules. The proposed CSA would see the WCP “Based on the draft DFS and the optimisation Tel/Fax: 011 965 1463/5/9 deliver coal to Eskom for an initial 30-year term. exercise for the export project, the WCP part- Cell: 083 320 7132 WCC sought to resolve all outstanding ners are in discussions with certain banks and requirements early this year. potential coal o take partners with respect to Email: [email protected] The coal development company last week funding arrangements for the proposed project also said that an extension of its convertible development,” said WCC. ©CM 220814MF

14 MINING WEEKLY | February 6–12, 2015 RA NEWS&INSIGHT

GOLD Conflict Gold Gold from DRC rebel-controlled areas being sold on international markets

ANINE VERMEULEN | SENIOR STAFF WRITER

old smuggled out of the Democratic failures in Dubai’s regulation of the minerals Republic of Congo (DRC), some of it from sector, which subsequently increased the risk Grebel-controlled areas, has been sold on of money laundering and of ‘dirty’ gold from the the international market through Uganda and DRC and other conflict zones entering the global the United Arab Emirates (UAE) in the past year, supply chain in 2012. HARD TO TRACE according to a report published last month by the The UAE has taken measures to correct the Compared with tantalum, tin and tungsten from United Nations (UN). situation in the gold trade, but these “fall short” the DRC, there are no operational traceability The report, titled ‘Final Report of the Group of of what is needed, according to the UN report. or due diligence systems for the country’s gold Experts on the Democratic Republic of the Congo’ Dyer notes that, compared with tantalum, sector and based on a year’s research by the UN, found tin and tungsten from the DRC, there are no evidence that gold produced in mines controlled operational traceability or due diligence systems The companies were suspended for six months by rebel groups was sold to traders in Uganda. for the country’s gold sector. from the supply chain initiative run by the Nonprofit organisation Global Witness states “The UN report says that gold smuggled into International Tin Research Institute at the request that the report documents that one of these Uganda in the past year included metal from of the Rwandan government. traders officially exported the precious metal mines controlled by rebel groups such as NDC, “The US has legislation in place that requires last year to Dubai, in the UAE, where gold from headed by Ntabo Ntaberi Sheka, who is wanted US-listed companies to check that their purchases the DRC is sold “without any difficulty”. for crimes against humanity, and the Democratic of metals have not funded warring parties, and “The UN report lifts the lid on the dirty mineral Forces for the Liberation of Rwanda, a group the European Union is developing regulations on trade that helps prop up rebels in the DRC. It linked to Rwanda’s 1994 genocide,” he says. conflict minerals, although the current proposal brings fresh, detailed evidence of individuals Further the report says that coltan, a tantalum is only for a voluntary scheme,” he concludes. and companies that are profiting from the illegal ore found in eastern DRC, is also smuggled into MINING WEEKLY COUPON ON PAGE 19 E0358189 trade. It is a scandal that the country’s mineral Rwanda, indicating flaws in responsible sourcing wealth continues to fund conflict more than schemes. a decade after hard evidence of this came to A UN investigation highlighted two cases of light,” says Global Witness resource campaigner “suspected smuggling” – involving two Rwandan Nathaniel Dyer. companies – of white coltan, which is produced Global Witness previously revealed major only the DRC.

COAL await the receipt of all regulatory approvals before starting with the modification of the CoAL’s Vele colliery receives plant. enviro nod for plant upgrade Licence Renewal NATALIE GREVE The company had also sought renewal of its CONTRIBUTING EDITOR ONLINE integrated water use licence (IWUL) and its THE Department of Environmental amendment. Affairs (DEA) has granted Coal of Africa The current IWUL will expire in March Limited’s (CoAL’s) Vele colliery, in Limpopo, 2016 and the company feels it prudent to an amendment to the environmental renew this licence prior to committing further authorisation in terms of the National shareholder funds to the project. Environmental Management Act and The approval of the renewal is expected in the Environmental Impact Assessment the second quarter of this year. Regulations. “We will continue to engage with the regulatory authorities and other stakeholders Planned Modifications at Vele as we continue to set a new benchmark This amendment was the first of several for the coexistence between mining, required to allow the company to make agriculture and heritage land uses within the planned modifications to the colliery’s area in which we operate. processing plant and was a step closer to “This period also gives the company further the project achieving the full regulatory time to assess the outlook for coal prices. compliance required for construction to start. Discussions continue with appropriate end- CoAL CEO David Brown welcomed the users regarding offtake agreements,” he DEA’s decision, adding that the group would commented.

RA MINING WEEKLY | February 6–12, 2015 15 NEWS&INSIGHT

MINERALS ADMINISTRATION timeframes for the consideration and issuing of permits, licences and authorisations in their respective legislation. Kudos All Round They have also agreed to synchronise the pro­ cess involving the issuing of permits, licences Industry pleased with new environmental system – DMR and authorisations to within 300 days. Should a decision to issue a licence be appealed, an addi­ tional maximum period of 90 days is provided ILAN SOLOMONS | STAFF WRITER for to finalise the process. Until all the requisite legislative amendments he Department of Mineral Resources mental management in South Africa is governed have been effected to formalise these timeframes, (DMR) says it has received only posi­ by a single piece of legislation. those stipulated in Nema will apply. Mineral Ttive comments regarding its new One “The system entails the synchronised process­ Resources Minister Ngoako Ramatlhodi is Environmental Management System from ing, granting and issuing of the respective licences authorised to appoint environmental mineral parties applying for prospecting or min­ and authorisations by the DMR, the DEA and the resource inspectors, who will have the same ing rights. DMR media liaison officer Phuti Department of Water Affairs.” powers as environmental management­ inspec­ Mabelebele says the DMR and the Department Mabelebele asserts that the integrated licensing tors to enforce the provisions and regulations of of Environmental Affairs (DEA) started discus­ regime “will enable improved turnaround times, Nema regarding mining and related activities. sions in 2010 about the system, which came into create regulatory certainty and further enhance The finalisation of the regulations governing effect last month. the ease of doing business”. the development of residue stockpiles and resi­ The system was publicly announced by Under this environmental system, the Minister due deposits, as well as the financial provision President Jacob Zuma during his State of the of Mineral Resources will issue environmental for rehabilitation regulations in terms of Nema, Nation address in February 2014 and aims to high­ authorisations and waste management licences is still pending. light government’s commitment to improving the in accordance with the provisions of the National Until these regulations have been finalised, ease of doing business in mining and enhancing Environmental Management Act (Nema) and the the Mineral and Petroleum Resources South Africa’s global competitiveness as a min­ National Environmental Management Waste Act Development Act (MPRDA) regulations will ing investment jurisdiction. for mining and related activities. Environmental remain in force. Mabelebele tells Mining Weekly that the sys­ Affairs Minister Edna Molewa will be the All environmental management plans or pro­ tem provides an integrated licensing regime appeals authority for these authorisations. grammes approved in terms of the MPRDA prior for the granting of rights, the issuing of water Mabelebele notes that the Ministers of Environ­ to December 8, 2014, will remain effective in terms use licences and the approval of environmental mental Affairs and Mineral Resources, as well of Nema. authorisations, thereby ensuring that environ­ as Water and Sanitation, have agreed on fixed MINING WEEKLY COUPON ON PAGE 19 E357267

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16 MINING WEEKLY | February 6–12, 2015 EG NEWS&INSIGHT

FERROUS METALS Nonetheless, the company states that, in contrast to the iron-ore projects in West Africa, much of the supply growth in the Copperbelt Negative Impact has been brownfield developments of existing operations, with much of the capital for these Chinese slowdown a ecting viability of new projects already invested. “However, existing higher-cost copper pro- West African iron-ore projects ducers are faced with surviving the current lower ILAN SOLOMONS | STAFF WRITER price environment.” Pickens points out that gold mining major he slowdown in the growth of Chinese steel our expectations are now even lower. Barrick Gold has initiated procedures to suspend production has resulted in a large-scale “The price of iron-ore has been negatively operations at its openpit copper-producing Treduction in its iron-ore requirements, affected by not only lower Chinese demand Lumwana mine, in Zambia, following the increase which has had a signi cant impact on the viability growth but also the rapid growth in Australian of royalty rates last month on openpit mining of new West Africa-based iron-ore projects iron-ore supply,” states Gray. operations in the country. and the expansion of existing projects, says Wood Mackenzie points out that China  e company estimates that Zambia’s mines international research rm Wood Mackenzie. accounts for two-thirds of global iron-ore imports, are, on average, in the top quartile of the cost Wood Mackenzie’s gross domestic product but that most other metals and minerals depend curve; therefore, further price weakness could growth outlook for China this year is 7.1%. less on Chinese demand than iron-ore. result in more closures of some of Zambia’s older, “China would have been a key destination “Following iron-ore and coal, copper is arguably high-cost mines. for West African iron-ore as Chinese entities the next most significantly China-dependent Meanwhile, Wood Mackenzie also forecasts were involved in nancing and signing o take commodity, with the [bulk] of production China’s total oil demand to grow by 3.3% year-on- agreements for a number of iron-ore projects,” stemming from the Copperbelt region of Zambia year, or by 350 000 barrels of oil a day, reaching Wood Mackenzie principal iron-ore markets and the Democratic Republic of Congo,” adds 11.03-million barrels a day by year-end. analyst Paul Gray tells Mining Weekly. Wood Mackenzie global copper mine costs The company believes that lower oil prices Wood Mackenzie also highlights that several of principal analyst Nick Pickens. in the long term will negatively impact on oil these projects are based in Liberia, Sierra Leone Wood Mackenzie says the appetite for investing supplies sourced from Africa. and Guinea, which have been severely a ected in new projects and exploration has waned, which “The biggest impact will be on oilfield by the Ebola virus that has claimed more than is reflected in the decrease in the share price developments that have not been sanctioned. 7 500 lives to date. performance of the junior mining companies If prices remain low, then those with marginal “We never had very high expectations for West listed on the London Stock Exchange and economics will be postponed. ” African iron-ore production, or exports; however, the JSE. MINING WEEKLY COUPON ON PAGE 19 E357195

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RA MINING WEEKLY | February 6–12, 2015 17 NEWS&INSIGHT

COAL He affirmed that the Benga and (once they had entered operation) Zambeze and Tete East mines would be apply to supply these steel plants with Big Plans their required metallurgical coal for, at a mini- mum, the next 35 years. Indian company mulls major developments The decisions to set up the thermal power station and CTL plants at Benga were taken in at its Mozambique mine order to achieve economies of scale at the opera­ tion. While 70% of Benga’s reserves of 2.6-million KEITH CAMPBELL | SENIOR DEPUTY EDITOR tons are metallurgical coal, the remaining 30% is thermal coal. ndian State-owned company International Meanwhile, the executive director of the STORY HIGHLIGHTS Coal Ventures Limited (ICVL) is to invest • ICVL plans to invest some $1.9-billion in and Botswana Chamber of Mines, Charles Siwawa, Isome $1.9-billion in Mozambique. This has around its Benga operation. has told the O País newspaper in Maputo that been revealed by ICVL Mozambique director- • Botswana coal will be exported through coal miners in his country intend to start export- general Nirmal Chandra Jha to The Indian South Africa and Mozambique until the ing their output through South Africa, using the Express newspaper. The company now owns Trans-Kalahari Railway is built. Port of Richards Bay, and Mozambique, using the 65% of the Benga coal operation, and 100% of Port of Maputo. These routes will be used until the Zambeze and Tete East coal projects, in partnership between the Steel Authority of India the completion of the Trans-Kalahari Railway. the African country’s Tete province, having Limited (SAIL), Coal of India Limited, Rashtriya This will run for 1 500 km and connect the mines bought them from Rio Tinto (reportedly for $50- Ispat Nigam Limited (RINL – a steel company), of Botswana’s Mmamabula coalfields to the million) last year. the National Mineral Development Corporation Namibian port of Walvis Bay. The Trans-Kalahari ICVL will use the money to construct a and NTPC (India’s largest power producer). All is expected to cost some $9.2-billion, which will 300 MW thermal power station at the mine, these companies are wholly or predominantly be raised from private investors. increase Benga’s output to 13-million tons by State-owned. India cannot domestically produce The feasibility study for the project, that has 2017 and set up a coal-to-liquids (CTL) plant. enough metallurgical or coking coal to meet the been agreed by the Botswanan and Namibian On January 12, the company invited expres- current needs of its steel industry. These needs governments, is expected to be published early sions of interest for the construction of the CTL are increasing, as both SAIL and RINL are in the this year. plant. This is expected to cost more than $300- middle of major production capacity expansion Siwawa observed that any delay in the comple- million, the thermal power station about programmes. tion of the new railway and/or the associated coal $830-million and the expansion of the Benga So far, ICVL has exported three shipments terminal at Walvis Bay could be disastrous for operation around $800-million. of coking coal from Benga to India to feed blast Botswana’s economic ambitions, which include ICVL is a special purpose vehicle created at furnaces at both SAIL and RINL steelworks. Five becoming a coal supplier to India and China. (It the initiative of the Indian Ministry of Steel, more such export shipments are planned for should be noted that there has been a proposal with the purpose of obtaining metallurgical and this year. Jha expects the “crisis” regarding the that, once built, the Trans-Kalahari could be thermal coal assets in foreign countries, in order supply of coking coal to India’s State-owned steel- extended to reach the Waterberg coalfield in to assure the supply of imported coal. It is a makers to come to an end in the near future. South Africa.)

BASE METALS came to an abrupt halt in 1982 owing to Chinese breathe life back deteriorating security and a decline in copper prices. The investment also includes increasing into Uganda’s Kilembe power production at the Maluku power plant copper/cobalt mine from 5 MW to 12 MW. “We have been executing technical work JOHN MUCHIRA on the mines and have completed most of the CORRESPONDENT T

necessary rehabilitation of facilities. OG O THE machines at Uganda’s Kilembe mine, “We project to start production in May,” which fell silent more than three decades ago, says Guo. UGANDA are set to roar into life again, after the Chinese He adds that, besides rehabilitating some consortium that bought the mines announced of the machines at the mine, the company copper production would restart in May. has installed newer machines with a life span Tibet Hima Mining, a consortium of Chinese of at least 30 years and is in the process of companies that won a 25-year concession renovating the roads and tunnels leading up for the mine, in south-western Uganda, in to the mines, located on the foothills of the 2013, says it is gearing up to restart copper Rwenzori mountains, about 370 km south of and cobalt production and smelting after the capital, Kampala. completing the rehabilitation of the operations. According to Uganda’s Department Tibet Hima Mining deputy CEO Lu Guo Geological Survey and Mines, Kilembe had says the consortium has completed the 4-million tons of copper and 5.5-million tons rehabilitation of the smelting, refining and of cobalt reserves when it ceased production in Copper, paid the Uganda government a production plants. 1982. By then, only 10% of the area believed to signature fee of $4-million and will pay The consortium is investing $175-million in hold copper ore deposits had been explored. a yearly fee of $1.5-million for the next the project which was once a major economic The consortium, which includes Shanghai 25 years. Uganda will also benefit from backbone of the region before production Baosteel Group and Chinalco Luoyang statutory payments and taxes.

18 MINING WEEKLY | February 6–12, 2015 EG NEWS&INSIGHT

MINERALS LEGISLATION been and would most likely remain highly unpre­dictable. “This is because copper is a base Staying Put metal which is heavy, plentiful and cheap, when, . . . compared with pre­ Minerals royalty tax regime to remain cious metals such as gold and silver. As such, it is purchased by consum­ in force – Zambia’s new leader ers when required, making it diffi­ cult to speculate on future prices,” ILAN SOLOMONS | STAFF WRITER Shula added. Moreover, he emphasised that ncoming Zambian President of the adverse impacts of the global the new tax regime would be very Edgar Lungu has averred that financial crisis that started in 2008 complex to administer, as mines Ithe country’s controversial new and that threatened more job losses often have openpit, underground minerals royalty tax regime is there and mine closures. and processing operations at the to stay. “I hope that Zambia will learn same site. “Government’s desire to ensure from this experience and ensure that [With] declining copper prices companies pay the correct taxes it does not repeat previous mistakes, and a new tax regime, Zambia will will continue,” he said shortly after which could once again result in move into unexplored fiscal territory. being sworn in last month. He was mine closures and many Zambians “Government must, therefore, elected to complete the term of being unemployed,” stated Mhango. reverse its decision to introduce the Michael Sata, who died in October Additionally, the Zambia Chamber new tax regime that places a higher EDGAR LUNGU and was replaced in an acting capa­ of Mines (ZCM) issued a statement Government’s desire to ensure minerals royalty as a final tax and city by Guy Scott. highlighting that more than half of companies pay the correct taxes instead institute dialogue with all However, during a panel dis­ Zambia’s copper production was will continue stakeholders to come up with cussion at research and invest­ lossmaking following a consistent an equitable fiscal policy which ment advisory firm Frontier decline in the international cop­ account the cost of production and is consistent with promoting Advisory’s 2015 Africa Outlook per price. unpredictability of the copper price mining investment and generat­ confe­rence, held in Johannesburg “As of January 14, 2015, the base trend, will inevitably lead to mine ing adequate revenues for the last month, investment banking metal was trading at $5 353.25/t, its closures in the short and medium treasury on a sustainable basis,” firm Renaissance Capital sub- lowest since July 2009,” according to term,” stated Shula. He noted that Shula concluded. Saharan Africa economist Yvonne business news agency Bloomberg. the trend in copper prices was, had MINING WEEKLY COUPON ON PAGE 19 E357972 Mhango warned that legislative ZCM economist Shula Shula uncertainty and increased minerals added at the conference that the royalty taxes, such as those imple­ commodity price slump, in addi­ mented in Zambia, during a time tion to structural factors, legacy of low commodity prices, would issues and the new tax regime, “will jeopardise the economic viability severely penalise the vast majority of of many mining operations. Zambia’s mining operations”. The new royalty tax regime, “Profitability is derived from total which came into effect on January 1, revenue minus total costs. Most of increased underground mining roy­ Zambia’s mines are high-cost opera­ alties from 6% to 8%, with opencast tions, significantly higher than other mining operations being charged a copper mining provinces in the ENQUIRY SERVICE 20% minerals royalty. world. At the current copper price, She pointed out that, in 2008, nine out of eleven of the country’s the Zambia government passed large mines, both opencast and the Mines and Minerals Act, which underground, are uneconomical For more information about any product subsequently introduced a tax to operate,” he stated. or service in this issue, please email windfall regime that significantly Shula said, considering that the increased the tax rate on mines mining industry accounted for [email protected] from 31% to 47%. more than 86% of Zambia’s foreign Telephone (011) 622 3744 or However, the windfall tax regime direct investment and about 80% of Fax (011) 622 9350 was withdrawn in the 2009 Budget, exports, “these figures are alarm­ after the policy had been heavily ing for the state of the country’s criticised by mining companies, economy”. with thousands of Zambians left He said government’s taxation All information produced will be dealt with without work owing to mines clos­ of the mining industry must take in terms of Creamer Media’s information processing policy at http://www.creamermedia.co.za/page/consent-to-process-information ing down and significant reduc­ into account the collection of equit­ tions in staff at the operations that able revenue required for national did manage to continue operating develop­ment while ensuring the DATE OF EDITION 06/02/2015 during this period. sustainability of the sector as a con­ According to government authori- tributor to national development. ties, the decision to revoke the tax “An excessive tax burden on the The magazine that brings results wind­fall regime was largely a result mining industry, without taking into

EG MINING WEEKLY | February 6–12, 2015 19 NEWS&INSIGHT

AFRICA & MINING – 1 Diminishing Relevance African growth tied to trade, not mining – consultant

ILAN SOLOMONS | STAFF WRITER

ineral commodities would become to significantly increase product output and less relevant to the development of export volumes,” he added. MAfrican countries in the long term Scott cited Africa’s largest copper producers, as they diversified their economies away from the DRC and Zambia, as examples of countries raw resource extraction, said local mining that did not capitalise the way they should ARRESTED DEVELOPMENT consultancy The MSA Group MDKeith Scott have from the high copper prices, as they only African countries benefited from high during a panel discussion at research and marginally increased their outputs. commodity prices, but mines were not able to significantly increase product output and export investment advisory firm Frontier Advisory’s “Simultaneously, during this ten-year period, volumes 2015 Africa Outlook conference, held in mining giant Rio Tinto managed to increase Johannesburg last month. iron-ore outputs tenfold at its operations Fellow panellist and fleet management in Australia. South Africa increased its infrastructure, such as railway lines, roads and services provider Skais SPRL MD Salim Dewji iron-ore output by 20% and increases were port terminals, being built. concurred with Scott, adding that African also recorded in platinum production,” he Cairo-headquartered international countries that could not decouple themselves highlighted. However, Scott said South Africa’s financial institution African Export-Import from dependence in commodities would find coal production volumes remained static, Bank finance banking and administrative 2015 very challenging. while gold output decreased significantly. services executive VP Denys Denya added “If countries like Angola can stop depending He attributed Africa’s failure to increase that the infrastructure challenges that African on oil and focus . . . on increasing trade export volumes to a lack of developed countries faced had to be addressed at regional with neighbouring countries, such as the infrastructure in most countries, while South level. Democratic Republic of Congo (DRC), there Africa’s mining sector was hampered by the He pointed out that Chinese investments are incredible opportunities to be had,” Dewji country’s ageing infrastructure. were playing a critically important role in asserted. Scott lamented that, amid the current low connecting regions of Africa. Further, Scott pointed out that The MSA commodity prices, “it is very difficult to see” For example, China is financing the bulk Group had noted a rapid decrease in capital how Africa is going to attract the investment of the $5.2-billion East Africa railway project available to develop exploration projects. required to develop new infrastructure that currently under construction, and will, on Companies were also unable to raise sufficient will assist in improving mining export volumes completion of the first stage in 2017, link funds to not only develop new projects but also in the long term, “when commodity prices Nairobi to Mombasa, Kenya. recapitalise existing projects. invariably rise once more”. The second phase of the project will link the “During the commodity boom . . . from 2002 He added that large iron-ore development Kenyan section of the railway line to South to 2012, African countries benefited from high projects in West Africa were particularly Sudan, the DRC and Burundi. commodity prices, but mines were not able vulnerable, as they relied heavily on major MINING WEEKLY COUPON ON PAGE 19 E357902

AFRICA & MINING – 2 points more than what it was for the region in the business-friendly growth models, rather than 1990s, or a one-third increase in export volumes. aid-supported, reactive and commodity-price- Resource prices source of Most of the increased trade involved new driven ones that result in nothing more than adversities and trading partners such as China and India. dependence,” he emphasised. “However, the exports were fairly concen­ Meanwhile, local mining consultancy The MSA opportunities for Africa trated in raw materials and commodities.” Group MD Keith Scott stated at the conference Schimmelpfennig pointed out that, for Gabon that bulk commodity prices had bottomed out, ILAN SOLOMONS and Angola, oil exports accounted for about 50% but that it would take at least two to three years STAFF WRITER of their respective countries’ GDP, while it before they would start to rise again. THE significant and potentially persistent decline accounted for about 80% of Equatorial Guinea’s “The mining sector is a cyclical sector and it in oil and other commodity prices, as well as GDP. takes many years for projects to be developed. slower-than-projected growth in the eurozone, Frontier Advisory CEO Dr Martyn Davies Therefore, it is important that mining companies China, Japan and Russia, has substantially added that many African countries’ development have a long-term vision to ensure that they altered the economic prospects for most prospects were inversely proportional to their invest in and develop projects now, so as not to African countries, according to the International natural resource endowment. miss out on the next [commodity price] upswing Monetary Fund’s (IMF’s) recently released “The so-called resource curse is an endemic in years to come,” he concluded. regional and world economic outlook update. challenge across Africa,” he lamented. Addressing research and investment advisory Davies said it was likely that this year would To watch a video in which Dr firm Frontier Advisory’s 2015 Africa Outlook be a catalyst for change in terms of African coun- Axel Schimmelpfennig, Dr Martyn Davies and Keith Scott provide conference, held in Johannesburg last month, tries actively seeking to diversify away from insights into the global economy IMF South Africa senior resident representative purely resource extraction to manufacturing and and its impact on Africa, scan the Dr Axel Schimmelpfennig noted that exports service-based economies. barcode with your phone’s QR accounted for about 27% of sub-Saharan Africa “At policy level, for Africa to mimic Asia’s reader, or go to Video Reports on countries’ gross domestic product (GDP). developmental trajectory, sub-Saharan www.miningweekly.com. He highlighted that this was seven percentage Africa States will need to forge proactive, MINING WEEKLY COUPON ON PAGE 19 E357641

20 MINING WEEKLY | February 6–12, 2015 RA NEWS&INSIGHT

DIAMONDS their most important promise of love with a Forevermark diamond. At Caratco, we intend to grow Forevermark in the local bridal market, Growth Focus in line with the global goals.” She adds that Forevermark is a diamond De Beers aiming to grow Forevermark brand in SA this year brand and not a jewellery brand, and that countries and businesses involved – such as Caratco – that are licensed to distribute ANINE VERMEULEN | SENIOR STAFF WRITER Forevermark, are encouraged to create their own Forevermark collections for their own iamond major De Beers will be focused assurance of their ethical credentials. market and customers. on growing its Forevermark brand in In 2014, the company inscribed its millionth “At Caratco, we created a new Forevermark DSouth Africa this year by promoting Forevermark diamond. collection last year. It is a collection designed to the Promise campaign, which it launched in “Forevermark provides the opportunity meet the demand of the South African market mid-2014. for additional margin to be captured and, to and we are developing it in the bridal market The Forevermark brand is distributed in date, Forevermark jewellers are consistently especially,” Russo says. South Africa through the local diamond achieving about 10% premium above Russo comments that, with the new business Caratco, under whose initia­tive the equivalent generic diamond jewellery,” Promise campaign, Forevermark aims to brand is expanding in Southern Africa to Mellier states. drive awareness of the brand’s own promises, Namibia and Botswana. Forevermark brand manager at Caratco which include a commitment to beautiful, De Beers CEO Philippe Mellier says the Anna Russo states that the new Promise rare and responsibly sourced diamonds. group is committed to Forevermark and to campaign reinforces the value of the ‘diamond Caratco’s new Forevermark collection is a growing the ‘diamond dream’, and that there is dream’, adding that Forevermark will drive collection of classic designs for engagement great potential in the bridal market worldwide. that dream in South Africa. and anniversaries. The inspiration behind He notes that the Forevermark brand “At the core of the ‘diamond dream’ is the the new collection is “timeless”. answered consumers’ increasing desire idea that the diamond carries a timeless “The primary goal of the De Beers group for branded products that could provide promise. Customers can feel proud to make is to establish Forevermark as the biggest diamond brand in the world. Globally, the goal is to strengthen the existing markets and to acquire new ones,” she says. She adds that, locally, Caratco’s goal is to grow both the local and tourist markets. “Visitors from all over the world understand that South Africa is a global diamond hub and tourists want to buy diamonds here, so we must be able to meet the tourist demand by offering a premium diamond brand such as Forevermark,” says Russo. To expand the tourist offering in Southern Africa, Caratco opened an outlet at Maun International Airport, in Botswana, last year. Caratco also arranged a Forevermark jewellery display at the thirteenth Confederation of Commerce, Industry and Manpower conference in Maun last year, in support of the De Beers group, ANNA RUSSO which sponsored the conference. Locally, Caratco’s goal is to grow both the local and tourist markets MINING WEEKLY COUPON ON PAGE 19 E358182

Manufacturing & Specialising in: Ÿ Automotive & Industrial Filtration, Ÿ Ventilation, Ÿ Dust Extraction Ÿ HDV Mining Washbays Tel: 013-656 2726/7/8 Fax: 013-656 2688 6 Arnhem Crescent, Die Heuwel, Witbank 1035 Email: chrisv@filvent.co.za | peterc@filvent.co.za | Web: www.filvent.co.za

EG MINING WEEKLY | February 6–12, 2015 21 COMING UP COMING UP Global mining company Rio Tinto has formally The prefeasibility study on the Winchester approved the development of the fourth pipe, magnesite direct shipping ore project, in known as A21, at the remote subarctic Diavik Australia’s Northern Territory, proposes a low- PROJECTSIN mine, in Canada. The A21 production will cost, opencut mining operation. The study was provide an important source of incremental based on a mine that could operate at various supply for Diavik, ensuring the continuation of capacities: 250 000 t/y of run-of-mine (RoM), existing production levels 500 000 t/y RoM and 1 000 000 t/y RoM PROGRESS By Sheila Barradas

PLATREEF PGM, NICKEL, Mining zones in the current Platreef mine 2015 will focus on the Shaft No 1 sinking COPPER AND GOLD plan occur at depths ranging from about programme, which is expected to be MINE 700 m to 1 200 m below surface. Access covered by existing dedicated working to the mine will be through four vertical capital. The funds were provided by an Name and Location shafts. Shaft No 2 will have the main investment of $280-million made by the Platreef platinum-group elements, nickel, personnel, material and ore-handling Japanese consortium, which holds a 10% copper and gold mine, Limpopo, South system, while Shaft No 1, 3 and 4 are interest in the project, in 2011. Africa. designated ventilation shafts. Shaft No 1 is As at December 31, 2014, $109-million Client under development and will be used for remained available for development work Ivanhoe Mines owns 64% of the Platreef initial access, bulk-sample collection and at Platreef. The cumulative investment by project through its subsidiary, Ivanplats, early underground development. Ivanhoe on the Platreef project to date and is managing all mine development Mining will be performed using highly total about $241-million. work. The South African benefi ciaries productive mechanised methods, Key Contracts and Suppliers of the approved broad-based, black including long-hole stoping and drift-and- Whittle Consulting (optimisation study). economic empowerment structure fi ll mining. The ore will be hauled from the On Budget and on Time? have a 26% stake in the project and the stopes to the bottom of Shaft No 2, where Not stated. remaining 10% is owned by a Japanese it will be crushed and hoisted to surface. Contact Details for Project Information consortium of ITOCHU Corporation; Japan Net Present Value/Internal Rate of Return Ivanhoe Mines (South Africa), Oil, Gas and Metals National Corporation; The project has an after-tax net present Jeremy Michaels, tel +27 11 088 4300 or ITC Platinum Development, an ITOCHU value at an 8% discount rate of $972-mil- [email protected]. a liate; and Japan Gas Corporation. lion, and an after-tax internal rate of return Whittle Consulting, tel +61 3 9898 1755, Project Description of 13%, with a project payback of seven fax +61 3 9898 1855 or The Platreef project is a Tier 1 discovery, years. email [email protected]. which contains the Flatreef deposit, Value located on the northern limb of South Preproduction capital is estimated at JAY KIMBERLITE PIPE Africa’s Bushveld Igneous Complex, $1.17-billion, including $114-million in PROJECT the world’s premier platinum-producing contingencies. region. Ivanhoe has declared an initial Duration probable mineral reserve of 15.5-million According to the previously released Name and Location ounces of platinum, palladium, rhodium preliminary economic assessment, Jay kimberlite pipe project, Northwest and gold. The mineral reserve is expected Phase 1, which will establish an operating Territories, Canada. to support a 31-year mine life at a steady- platform to support the start of production Client state production rate of four-million tonnes at a nominal plant capacity of four-million Dominion Diamond Corporation. a year. tonnes a year is expected by 2020. Project Description An independent prefeasibility study (PFS) Phase 2, which includes a ramp-up to a The Jay kimberlite pipe is located in the proposes the development of the mine in plant capacity of eight-million tonnes a south-eastern portion of the Ekati mine three phases. year, is expected by 2024. Phase 3, to a property, about 25 km south-east of the The fi rst phase involves the development steady-state plant capacity of 12-million Ekati main facilities and about 7 km to of a large, mechanised, underground mine tonnes a year, is expected by 2028. the north-east of the Misery pit, in the Lac with an initial four-million-tonne-a-year Latest Developments de Gras watershed. The Jay project is an concentrator and associated infrastructure Ivanhoe has retained Australia-based extension of the Ekati mining operation to establish an operating platform to Whittle Consulting to conduct an optimis- and can potentially extend the mine life to support future expansions. ation study based on the Platreef PFS. about 2030, more than ten years beyond The second phase will double production The work is progressing and the current closure date. The facilities to eight-million tonnes a year. recommendations from the study required to support the development of The third phase involves the expansion are intended to provide guidance for the project and to process the kimberlite of the mine to a steady state of 12-million the feasibility study and subsequent already exist at the Ekati operation. The tonnes a year, making it among the largest expansion phases. project entails the construction of a water- platinum group metals mines in the world. The development work at Platreef in retention dike following a horse-shoe-

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22 MINING WEEKLY | February 6–12, 2015 RA shaped alignment from the shoreline into assessment (PEA) on the San Miguel separate ventilation and dewatering Lac du Savage to isolate the portion of project has confi rmed that the project systems because of their remote locations the lake overlying the Jay pipe. The dike represents a potentially robust economic from each other. Access/haul roads to would be 5 km long with an average water opportunity to develop a low-cost mine in each mining operation will be developed. depth of 5 m. the prolifi c Sierra Madre belt in Mexico. It is assumed that personnel for the mining Net Present Value/Internal Rate of Return The new PEA adds an e cient, operation will live in the local communities Not stated. inexpensive openpit, heap-leach of Temoris and that no camp facility will Value operation to the front-end of the be built. Not stated. production scenario, which helps fund Net Present Value/Internal Rate of Return Duration underground mining and related mill The project has an estimated base case The project timeline currently envisions construction from cash fl ow. The new PEA pretax net present value of $472.6-million the construction of the dike to start in also features a very substantial increase at a 5% discount rate and an internal rate mid-2016 and to continue until 2019. in measured, indicated and inferred of return of 23.2%, with a quick payback Dewatering and prestripping will then resources, compared with the 2013 PEA. of initial capital in the third year of take place, followed by conventional The PEA proposes a 4 000 t/d mill with production. openpit mining, with production currently a heap-leaching facility fed by openpits Value expected to begin in 2020. and underground mines, resulting in a Total capital expenditure is estimated at Latest Developments projected 17-year operation, with a total $439.5-million. Dominion announced in November metal production of 933 000 oz of gold Duration 2014 that it had fi led the developer’s and 47.1-million ounces of silver. Not stated. assessment report (DAR) with the The PEA has determined that the most Latest Developments Mackenzie Valley Environmental Impact suitable mining scenario for the project is In December 2014, Paramount announced Review Board for the Jay kimberlite an underground operation for the high- results from three additional core holes pipe. The purpose of the DAR is to meet grade Don Ese deposit, a combination of drilled at the high-grade Don Ese deposit, the requirements set out by the review openpit and underground mining for the located on the San Miguel project site. board for the environmental assessment La Union and San Miguel deposits, and Exceptional grades and widths from these process. The submission of the DAR is openpit extraction for the San Antonio, La infi ll holes are likely to upgrade resources the next step in the permitting process Veronica, Monte Cristo and San Francisco to the measured and indicated categories to develop the largest diamondiferous deposits. and potentially increase the resource size resource in North America. Following The recommended openpit mining and grade. Paramount is drilling the Don the submission of the DAR, the analytical method is conventional drilling and Ese and Dana structures using three core and hearing phases of the environmental blasting with mineralised material and rigs as part of its programme to move the assessment process are expected to overburden loaded into rigid-frame haul San Miguel project towards a prefeasibility result in a Ministerial decision in late 2015. trucks. Mechanised underground mining study. Once this decision is issued, the water will be from sublevel open stoping with Key Contracts and Suppliers licence and land-use permitting process delayed backfi lling. None stated. will take about a further six months. The development of mining and On Budget and on Time? Key Contracts and Suppliers processing infrastructure has been Not stated. None stated. defi ned in a conceptual plan, based on Contact Details for Project Information On Budget and on Time? a central process facility with a tailings Paramount Gold and Silver Corp investor Not stated. storage facility and a heap-leaching relations, Chris Theodossiou, Contact Details for Project Information facility. Individual openpit mines will tel +1 866 481 2233. Dominion diamond corporation VP be developed as satellite production – corporate development Richard operations, with haul trucks transporting Chetwode, tel +44 7720 970 762 or the mineralised material to the process Readers of Mining Weekly are email [email protected]. site by haul truck. requested to email details of A main electrical power line and power projects to Sheila Barradas at SAN MIGUEL GOLD AND centre will be developed at the process [email protected] SILVER PROJECT facility, with individual power lines linked to the underground mining operations at Don Ese, San Miguel and La Union. Name and Location Don Ese’s distance from the main mining San Miguel gold and silver project, and processing facilities will require it to Chihuahua, Mexico. have its own facilities and infrastructure, Client whereas San Miguel and La Union will be To receive regular updates on these and Paramount Gold and Silver Corp. able to use shared facilities and most of other projects, subscribe to Creamer Project Description their infrastructure. Media’s Research Channel Africa. The new preliminary economic The underground mines will have Email: [email protected]

International Convention, Trade Show & Investors Exchange March 1 – 4 Toronto, Canada

PDAC2015_Creamer_strip.indd 1 11/1/14 2:46 PM RA MINING WEEKLY | February 6–12, 2015 23 Client: PDAC 2015 Live: Bleed: Desc.: strip ad Trim: 190 mm x 35 mm Pub: Creamer Media Platinum-based fuel cell technology successfully powers 34 houses PLATINUM-GROUP Page 27 Mechanisation, automation only answer Page 29 METALS Compiled by DAVID OLIVEIRA

latinum-group metals (PGMs) demand remains strong, despite the industry Phaving lost more than one-million ounces PGMs demand remains of platinum production in 2014, owing to the five-month Association of Mineworkers and Construction Union strike, which pushed the global market into a significant deficit, says high, despite 2014 losses PGMs market researcher Johnson Matthey principal analyst Alison Cowley. DAVID OLIVEIRA | STAFF WRITER “Assuming that strike losses in South Africa are lower in 2015 than they were last year, Johnson Matthey believes that production losses in 2015 are likely to be lower than those of 2012 and 2014, which would result in the recovery of underlying South African platinum mining output.” She states that platinum production in 2015 could outstrip the 2013 total of 4.21-million ounces, despite shaft closures in the intervening period, but that “this will depend on the extent to which mining is disrupted by safety, as well as technical and geological factors”. Platinum production from the strike-affected mines, owned by platinum majors Anglo American Platinum (Amplats), Lonmin and Impala Platinum (Implats) resumed in July 2014 and the “post-strike ramp-up has proceeded more rapidly than many industry observers expected,” Cowley notes. She highlights that Amplats and Lonmin

reported production close to planned levels Picture by Chief Photographer Duane Daws at the close of the third quarter of 2014. PRODUCTION RECOVERY However, Implats’ build-up was stalled by a Platinum production in 2015 could outstrip the 2013 total of 4.21-million ounces series of accidents at its Rustenburg lease area, resulting in four fatalities and the mine being by the performance of mines on the eastern to trigger industrial action”. closed for two days in September 2014. However, and northern limbs of the Bushveld Complex. Cowley highlights that the uncertainties Implats had said that it expected to improve Cowley adds that production recovery by pertaining to supply are because of Amplats’ production in the final quarter. strike-affected mines on the western limb of intention to either sell its Union and Rustenburg “Recent shaft closures, combined with the Bushveld Complex is forecast for this year, tenements, in the North West, or consolidate delays in the ramp-up of replacement projects, as these mines produce significant quantities them into a separate company; Implats is mean that capacity at these operations is now of platinum- and rhodium-rich upper group reviewing its operations, with the results to be considerably lower than it was five years ago,” two ore. disclosed this month. Cowley states. However, she notes that there are uncertain- Rumours that diversified miner Glencore Meanwhile, she notes that the local produc- ties regarding platinum supply in 2015 and “any intends to sell its platinum interests, which tion of rhodium is likely to increase at a higher decisions to rationalise mining operations, by include the Eland mine, in the North West; rate than that of palladium that was affected existing or future owners, have the potential • To page 28

mining engineers & mine planners

24 MINING WEEKLY | February 6–12, 2015 LO 999228_EN_MW_Bleached_275x210_FA_V3.indd 1 2013/01/11 9:43 AM PLATINUM-GROUP METALS

Damant points out that unions operating in South Africa can Further platinum wage acquire organisational rights only when it represents 30% or more of the workers employed by a com- pany. “With tens of thousands strikes unlikely – law firm of employees at mining compa- nies this means that very impor- DAVID OLIVEIRA | WRITER tant interest groups might be neglected.” Bowman Gilfillan consultant t is unlikely that there will be be wildcat strikes in the sector, as He states that the strike, which John Brand notes that “collective further strike action over wages evidenced by the six-day strike at ended in June, makes it evident bargaining also needs to be brought Iand working conditions in the platinum-group metals producer that better regulation is needed to closer to the coalface”, attributing South African platinum sector this Northam Platinum’s Zondereinde control rivalries between compet- this to a need to recognise specific year, as the agreements reached by mine, in Limpopo, last month. ing unions, as well as the interplay bargaining units with an identity the Association of Mineworkers and Damant states that last year’s between centralised and decentral- of worker interest, and to permit Construction Union (AMCU) and protracted strike, organised by ised collective bargaining. union representatives to represent the country’s top platinum produc- AMCU, had a material and signif- In addition, mining houses also those interests at company level. ers last year are valid for a three- icant impact on labour relations in need to focus more on workplace He points out that there is also year period, making any strikes not only the platinum sector but relationships to enable them to a need to promote the tenets of over wages or working conditions also the larger South African min- deal with the disparate interests industrial democracy in compa- before 2017 unprotected, law firm ing industry, and “highlighted seri- of workers in-house. nies. Employers need not wait for Bowman Gilfillan partnerGraham ous weaknesses in the way in which legislation to achieve these goals, Damant tells Mining Weekly. organisational rights and collective Collective bargaining as employers can change “the However, he states that there bargaining rights are regulated in needs to be brought way they structure organisational might, in the next couple of years, South Africa”. rights and the structures that closer to the coalface they engage in during collective ZONDEREINDE STRIKE bargaining”. – JOHN BRAND MINING WEEKLY COUPON ON PAGE 19 E357579 • About 5 200 National Union of Mineworkers (NUM) members embarked on an unprotected strike at Northam Platinum’s Zondereinde mine last month. • The NUM members were protesting against what they claimed was a transgression of employment equity policies and the unfair dismissal of several workers, in addition to demands relating to disruptions and sick leave issues. • Northam obtained an urgent Labour Court interdict to force the striking employees to return to work or risk dismissal; however, the next day, only 40% of the striking workforce returned. • NUM spokesperson Livhuwani Mammburu told Mining Weekly that the striking workers had been briefed at a mass meeting on the implications of extending the strike action in light of the interdict, but had elected to continue with the industrial action. • The six-day strike, which ended after the workers accepted a draft memorandum, cost the company 1 000 oz/d in

platinum-group metals production – equating to a revenue Pictures by Chief Photographer Duane Daws loss of R11.5-million a day – with workers forfeiting some NO STRIKES FOR 2015? R2.4-million a day in wages and benefits. Any strikes over wages or working conditions in the platinum sector before 2017 will be unprotected

26 MINING WEEKLY | February 6–12, 2015 MM PLATINUM-GROUP METALS

Pillay points out that plati- num-based fuel cell technol- Platinum-based fuel cell ogy offers Amplats a means of developing a new market for the precious metal, which will help improve demand for plati- technology successfully num-group metals (PGMs). “Ensuring that PGM producers have sustainable markets for the powers 34 houses metals is key to ensuring a sus- tainable PGM mining industry. Developing markets helps ensure DAVID OLIVEIRA | WRITER the future of PGM mining oper- ations and secures tens of thou- sands of direct mining jobs that latinum mining major factured by Canada-based holds forming part of the pilot the industry supports.” Anglo American Ballard Power Systems and inte- project with sufficient electric- Amplats and its partner, PPlatinum’s (Amplats’) plat- grated into a power generation ity for lighting, cooking, refrig- Ballard, have invested $20-mil- inum-based fuel cell, 12-month system that includes batteries, eration and charging laptops lion in the development of mini- mini-grid trial in the Naledi Trust direct- to alternating-current and cellphones, as well as using grid fuel cell technology. community, in the Moqhaka inverters, controls and a metha- radios and television sets. Pillay highlights that the suc- municipality of the Free State, nol fuel supply tank. Pillay notes that fuel cell mini- cess of the Naledi Trust trial will has successfully supplied low- Each fuel cell also has its own grid systems offer several ben- go a long way towards helping cost electricity to the 34 partici- methanol reformer and about 6 g efits to communities who have government realise its objectives, pating households. of platinum, which acts as a cat- low- to medium-density energy particularly regarding beneficia- Amplats precious metals mar- alyst to generate electricity from requirements, with the systems tion, local manufacturing and job ket development head Kleantha the methanol fuel source. specifically suited to communi- creation. Pillay notes that the 15 kW sys- Pillay states that, with the aid ties comprising 50 to 200 house- “The window of opportunity tem has made about 99% of its of batteries, the solution can gen- holds that are between 8 km and to establish South Africa as a fuel capacity available to the com- erate up to 70 kW. 22 km from existing power infra- cell manufacturing hub is open munity since the inception of the The fuel cell mini grid is a com- structure. now,” she avers, pointing out that project in July last year. plete off-grid and automatic solu- “Despite government’s aggres- the fuel cell system operating in The system comprises three tion, the first of its kind in the sive plans for expanding power the Naledi Trust was designed 5 kW fuel cells, which are manu- world, Amplats says. capacity and extending trans- and integrated by South African The technology employs a tele- mission lines in South Africa, engineers, while the site work metric data-logging and ware- there are still about 1.3-million and the installation of the system Fuel cell mini-grid housing solution, which allows rural households without access were contracted out to local sup- systems offer several for near-real-time remote moni- to electricity. pliers. toring of system operations from “Extending an existing grid Further, the mini grid and benefits to communi- three continents. comes at significant costs, par- reticulation work was also car- ties with low- to The telemetric system can ticularly in difficult terrain. Add ried out in South Africa and the medium-density also be programmed to schedule to this the power capacity issues methanol tanks were locally energy requirements maintenance, detect faults and that the country is facing and it is sourced. Local companies will schedule fuel supply delivery. clear that both grid and nongrid handle operations, maintenance Amplats states that the fuel technologies will have to play a and refuelling for the duration of – KLEANTHA PILLAY cell mini grid provides the house- part in rural electrification,” she the trial. elaborates. Pillay suggests that public pro- Platinum-based fuel cell mini curement or government com- grids have a more attractive level- mitment to the use of fuel cell ised cost of electricity, compared systems, as an alternative to elec- with diesel-fuelled power genera- tricity supplied from the national tion, as the cost of diesel is about grid, is key to the successful twice as much as the HydroPlus deployment of the technology methanol fuel used at the Naledi and the creation of a local fuel Trust project. cell industry. Diesel generators also have a “The most important step now relatively short life, compared is for the country to develop a with an equivalent fuel cell sys- procurement strategy for fuel cell tem, as diesel generators require mini grids and to recognise how

Pictures by Chief Photographer Duane Daws more frequent replacement. In implementation can lead to the NALEDI TRUST COMMUNITY addition, fuel cells are signifi- establishment of the desired out- Thirty-four participating households in the community, in the Moqhaka cantly cleaner and environment comes,” she concludes. municipality of the Free State, have been receiving low-cost electricity friendly. MINING WEEKLY COUPON ON PAGE 19 E357620

MM MINING WEEKLY | February 6–12, 2015 27 PLATINUM-GROUP METALS

• From page 24 PGMs remained firm in 2014, owing to unu- prices, which were at about $1 270/oz at the a 50% share in the Mototolo mine, in Limpopo; sually high demand from the global chemicals time of going to print. and a 25% stake in Lonmin, also in the North industry. West, have also contributed to the uncertainty Further, platinum sales to the automotive Upcoming Projects of platinum supply. industry were positive, resulting from increased Cowley avers that, despite the difficulties Further, Cowley states that the age and depth diesel car sales in Europe and the implementa- facing the industry, several PGM mining pro- of many existing mines, poor productivity and tion of Euro VI legislation on light- and heavy- jects are under development in South Africa. complex labour relations are major challenges duty vehicles. The demand for platinum jewellery “In the short to medium term, the largest faced by the PGMs sector, but that new infra- dipped slightly last year, compared with record potential for expansion is on the western limb structure development, combined with the levels achieved in 2013, however, the Chinese of the Bushveld Complex.” implementation of methods to improve pro- market remains robust. Platinum projects currently under way on the ductivity, such as mechanisation and changes Cowley states that, in 2014, there were tem- western limb of the Bushveld Complex include in shift patterns, might help to mitigate these porary shortages of palladium sponge, which midtier platinum miner Platinum Group Metals’ challenges. is used for autocatalyst production and other Western Bushveld Joint Venture (WBJV) mine, Meanwhile, she tells Mining Weekly that, industrial applications. To meet demand from which it owns in conjunction with Amplats and despite the platinum production losses in 2014, automotive and industrial customers, fabrica- management consultancy Africa Wide. The the dollar price of a typical basket of South tors and refiners converted several hundred WBJV mine has a production target date of 2016. African PGMs fell last year, as the depreciating thousand ounces of palladium ingot into sponge Other upcoming projects include Chinese- rand acted as a hedge for the local PGMs sector in the same year. backed emerging platinum producer Wesizwe against the dropping dollar price. However, She warns that the platinum market is Platinum’s Bakubung mine, in Rustenburg, she asserts that any gains incurred from rand- likely to be in deficit again this year, regardless which will start production in 2019, and the denominated prices have been cancelled of improvements in primary supply. “Gross construction of the Styldrift mine by midtier out by increased labour and other costs. demand for platinum totalled 8.5-million platinum miner Royal Bafokeng Platinum, “PGM destocking by producers helped to ounces last year and we expect this figure to adjacent to its existing Bafokeng Rasimone mitigate the impact of the strike on PGM increase in 2015 as a reflection of gains in the operation, in Rustenburg. supplies to the market and we estimate that autocatalyst sector, particularly in Europe, Cowley notes that there are also plans to during the first half of 2014, producers shipped and as we expect further improvements in increase production at mines on the northern more than 500 000 oz of platinum and smaller industrial purchasing.” limb of the Bushveld Complex, including the amounts of other PGMs from in-process and Cowley asserts that platinum miners will be expansion of Amplats’ Mogalakwena opencast refined inventories,” Cowley notes. hard pressed to make sufficient returns from mine, in Limpopo. She points out that industrial demand for mining output, owing to current platinum MINING WEEKLY COUPON ON PAGE 19 E357585 Mineral Processing Equipment Specialists in design, fabrication and supply of mineral processing equipment

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increased by 79%, to 297 t, in the fourth quarter of 2014, compared with the Mechanisation, average daily tons mined in the first quarter of that year. The dramatic increase in production can be attributed to the ramp-up after the automation only answer five-month-long platinum-sector strike, DAVID OLIVEIRA | STAFF WRITER organised by the Association of Mineworkers and Construction Union, which ining companies stalled South African platinum should consider production last year. Mmore carefully the Mogalakwena is the lowest- way in which they operate to cost producer of platinum-group ensure that mineworkers are metals (PGMs) in the world and out of harm’s way, says resource has generated an operating- consultancy VCI partner free cash flow of R10-billion Gideon Malherbe, adding over 5.5 years at margins of that embracing new and better up to 40%. mining methods, particularly Malherbe notes that, despite mechanisation and automation, the economic success of is the only real structural answer Mogalakwena, the majority to a safe and low-cost mining of platinum mines are still system. HUMAN INVOLVEMENT labour intensive, which raises He cites platinum miner The majority of platinum mines are labour intensive, raising safety safety concerns, owing to the Anglo American Platinum’s concerns for the people working underground significant amount of human (Amplats’) Mogalakwena involvement in mining activities. openpit mine, in Limpopo, as the “sector’s has an ore resource of 1.1-billion tons and “Technology has progressed to a point leader in forward-leaning mining develop­ produces 11-million tons of platinum a year. where we can use autonomous equipment

E:\!BMG\#Jobs\Adverts\2015\012015\BMG-MIN15012015-MWment”, as production at the mine “shows .cdr Amplats reported last month that the instead of humans without endangering 22 Januarythe value 2015 of 12:42:46 pursuing PM advanced technology average daily tons mined at the operation, any lives.” Color profile: Disabled solutions to mining challenges”. The mine which has been mechanised since inception, • To page 30 Composite Default screen WE CAN HANDLE IT!

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EG MINING WEEKLY | February 6–12, 2015 29 PLATINUM-GROUP METALS Platreef PFS Rapid rules based mine planning underpins ‘excellent’ solutions integrating the technical and economics – Ivanhoe economic variables NATASHA ODENDAAL | SENIOR CONTRIBUTING EDITOR ONLINE for enhanced he prefeasibility study an operating platform to decision making (PFS) of TSX-listed Ivanhoe support future expansions. TMines’ Platreef project The latest study confirms demonstrates the robust nature of the “excellent” economics and the latest major new mechanised technical viability of the low-cost www.cyesttechnology.com [email protected] underground platinum mine, operation, Friedland says of the near Mokopane, in Limpopo, mine that will eventually expand Ivanhoe executive chairperson production to eight-million Robert Friedland stated last tonnes a year, before reaching a month. steady-state 12-million tonnes a Ivanhoe aims to develop the year in the third phase. Platreef platinum, palladium, The PFS – an important rhodium, gold, nickel and copper milestone in Ivanhoe’s planned mine in three phases, with an transformation of the Platreef initial production rate of four- discovery into one of the pre- million tonnes a year to establish eminent South African platinum-

MOGALAKWENA The mine is the lowest-cost producer of platinum-group metals in the world, generating an operating-free cash flow of R10-billion over 5.5 years

• From page 29 are considering the development Further, he states that the costs of digital intensity measurement Hansen + Genwest (Pty) Ltd. provides a full compliment of efficiently operating labour- technology to gauge mining of state of the art, energy efficient, oil and dry type intensive shafts are “beyond productivity. However, some transformers, and switchgear in flameproof and non- the time and social parameters PGM producers are still focused flameproof. The electrical apparatus is utilized in of a modern mining industry. on resolving labour-intensity mining and industrial sectors worldwide. The range People cannot be expected to challenges, further impacting on also includes miniature and mobile substations ranging work even harder in the current mine safety. He attributes this to from 100KVA up to and including 10MVA. underground mining conditions”. the focus of PGM producers on All equipment is manufactured to the highest standards Malherbe points out that improving worker safety, instead and specifications and comply with IEC standards. European and US mining houses of trying to limit the number of people exposed to dangerous Hansen + Genwest (Pty) Ltd. structures and equipment Tel: +27 11 746 5800 Fax: +27 11 421 5884 I golf, therefore I swear. underground. MINING WEEKLY COUPON ON PAGE 19 E357583

30 MINING WEEKLY | February 6–12, 2015 EG PLATINUM-GROUP METALS PLATINUM-GROUP METALS

Realising possibilities... Picture by Chief Photographer Duane Daws ROBERT FRIEDLAND The prefeasibility study of Ivanhoe Mines’ Platreef project demonstrates the robust nature of the new mechanised underground mine

group metals producers – covers Skills Training the first phase of development, Over the next five years, Ivanhoe including the construction of an plans to inject R160-million into underground mine, concentrator its social and labour plan, with and other associated infra­ R67.2-million allocated for the structure to support initial development of job skills among concentrate production local residents and R87.7-million by 2019. set aside for local economic Ivanhoe estimates a development projects. preproduction capital cost The planned Platreef mine will ...from mine of $1.2-billion, including require about 2 200 workers over $114-million in contingencies, the first four years of operations. to deliver the first phase “We will run training to market. operation of 433 000 oz of programmes to prepare young platinum, palladium, rhodium people to qualify for jobs in what and gold (3PE+Au), in addition will be a world-scale, mechanised to 19-million pounds of nickel mine,” the company states, and 12-million pounds of copper adding that Ivanhoe will build a year. The PFS, which shows a R26-million community skills Platreef ranked at the bottom development and training facility Resource Mine Mining & Mine Materials Environment of the cash-cost curve, at an in Mokopane to establish a base Evaluation Planning Development Handling & Approvals estimated $322/oz of 3PE+Au, net of qualified, local candidates of by-products, indicates that the for jobs at the mine and its project would deliver an after- associated minerals processing tax internal rate of return of 13% plant. Mineral Tailings & Waste Smelting Transport Non-Process and a payback period of less than The Mining Qualifications Processing Management & Refining to Market Infrastructure seven years. Authority of South Africa will The expected after-tax net accredit the facility, which WorleyParsons adds value through our full scope of services present value is $972-million, at will also equip learners with from pit to port including studies, mine planning, impact an 8% discount rate. portable skills to help enable assessments, permitting and approvals, project management, The group will kick off a them to become self-employed construction management and global procurement. feasibility study on the four- or to be productively employed million-tonne-a-year Phase 1 and in sectors other than mining, 43 countries 166 offices 37,500 people a PFS on the eight-million-tonne- such as construction or a-year Phase 2 in the near future. agriculture. Ivanhoe notes that, as Phase 1 There are also plans to launch is developed and commissioned, five local economic development there will be opportunities to projects, which will result in the refine the timing and scope of creation of 820 jobs – 660 of www.worleyparsons.com subsequent phases of expanded which are for unskilled and production. semiskilled candidates.

EG MINING WEEKLY | February 6–12, 2015 31 WP ad 93x246.indd 1 2014/05/07 2:50 PM PLATINUM-GROUP METALS

He explains that, although platinum prices increased, the Platinum production to improved platinum price was capped, owing to larger-than- expected platinum stockpiles, which were secured during pre- be supported by global vious years of weak demand and held by platinum mining com- panies. automotive sales Meanwhile, the significant drop in platinum production con- tributed to South Africa’s con- DAVID OLIVEIRA | WRITER tracted gross domestic product growth in the first quarter of last emand for platinum- He highlights that China’s mar- Meanwhile, demand for South year, which decreased at a yearly group metals (PGMs) ket share of global vehicle pro- African-produced platinum is rate of 0.6%, notes Malherbe. Dremains highest from duction, which was under 4% in also expected to increase this “South Africa has 80% of the the catalytic converter and jew- 2000, increased to 25% in 2013, year, owing to increased sanc- world’s platinum reserves and ellery markets, says resource adding that the country’s auto- tions on Russia and stricter car- produces about two-thirds of the consultancy VCI partner motive sector will continue to bon-emission restrictions in world’s platinum supply; there- Gideon Malherbe, pointing expand as wealth distribution Europe, states Malherbe. fore, platinum mining majors out that China’s automotive sec- reaches more of its citizens, ena- Malherbe asserts that the Anglo American Platinum tor is expected to have another bling them to enter the market by increased economic sanctions (Amplats), Impala Platinum and record-breaking year in 2015 buying new automotives. imposed on Russia – the world’s Lonmin not producing platinum and car sales in the US are “The new Euro VI emissions second-largest producer of plat- for five months during the strike expected to maintain a growth standards that came into effect inum – by the US and European caused a significant drop in trajectory, based on data from last year are forcing Chinese nations, could result in supply supply.” Malherbe points out that US-based automotive indus- automotive manufacturers to shortages of PGMs. the strike adversely impacted on try body National Automobile increase the amount of plati- However, he suggests that hid- not only mining companies and Dealers Association and US auto- num used to manufacture cata- den stockpiles of palladium could the South African economy but makers, such as Ford, GM and lytic converters, a trend I expect surface, should such a supply also local small business owners Chrysler. to continue as the Chinese gov- shortage become a reality. and mineworkers who lost close He notes that the automotive ernment tries to tackle the coun- PGMs demand will further to $1-billion in wages. sales in these countries main- try’s critical pollution crisis,” increase because of more strin- “Overall, 2014 was a tough year tained momentum throughout Malherbe states. gent European Commission for platinum producers, with fall- 2014, with the trend expected to He adds that China’s demand emission restrictions, particu- ing prices testing miners’ profit continue in 2015. for platinum jewellery repre- larly with the adoption of Euro margins. Even strong sales in the “Automotive sales will keep sents about 65% of the world’s VI standards last year, which global automotive sector did lit- growing in 2015 on the back of total demand and, as disposable Malherbe notes “substantially tle to raise platinum prices,” he favourable economic conditions, income becomes more availa- tightens nitrogen oxide (NOx) states, noting that platinum min- particularly with automotive pro- ble to Chinese consumers, gold emission limits for diesel vehi- ing major Amplats estimated duction increasing in the US and and platinum jewellery sales will cles”, resulting in the need for that it had lost more than $1-bil- Europe.” increase. improved platinum-based auto lion in revenue, notwithstanding catalyst technology. the overhead costs the company Euro VI standard technology incurred during mine closures reduces NOx emissions by 75%, caused by the strike. Despite the compared with Euro V standard significant production losses engines. incurred last year, Malherbe remains positive, stating that the Platinum-Sector Strike platinum sector is on the road Malherbe tells Mining Weekly to recovery. “The opportunity that, despite platinum supply cost of the strike was too high to losses of 1.2-million ounces, val- recover in such a short period. ued at about R2-billion, owing However, risks still remain, as to the five-month-long plati- slower economic growth or a num strike organised by the drop in the gold price could Association of Mineworkers and drag platinum down with it,” Construction Union in January he warns. last year, the price of the pre- MINING WEEKLY COUPON ON PAGE 19 E357581 cious metal surprisingly dropped CHALLENGING sharply in the second half of 2014, The young man knows the rules, The year 2014 was tough for platinum producers, with falling prices ending the year slightly above the but the old man knows the testing miners’ profit margins $1 200/oz mark. exceptions.

32 MINING WEEKLY | February 6–12, 2015 MM PLATINUM GROUP METALS Bakubung closes 2014 with another milestone

SE-listed Wesizwe Platinum reached another Bakubung will also shortly start construction milestone at its  agship Bakubung platinum of the access roads for the mine. Jmine project, in the North West, in December During 2015, Bakubung will start its waste last year, despite facing labour tensions in development programme and Phase 2 of the Picture by Chief Photographer Duane Daws the platinum belt during 2014. power supply project, commission the bulk- BAKUBUNG MINE Continual progress was made in sinking the water supply and embark on key shaft bank During 2015, Bakubung will start its waste main and ventilation shafts at the project, with installations. development programme and Phase 2 of the the intersection of the Merensky reef a mere 11 m The Bakubung platinum mine project, power supply project, commission the away from the current level of the main shaft. formerly known as the Frischgewaagd-Ledig bulk-water supply and embark on key shaft bank installations e intersection of the secondary upper group project, is located in the western limb of the two reef was expected to be reached soon. Bushveld Igneous Complex, north of Rustenburg. Meanwhile, the ventilation shaft, which will The project entails the construction of a The mine is specifically designed for reach its  nal depth of 880 m in September 2016, platinum-group metals mine on Wesizwe’s optimum  exibility in terms of mining method is almost  ve months ahead of schedule. core assets. – conventional, mechanised or hybrid – and e implementation of an adopted optimis- The project will consist of an underground allows for fast production build-up to enhance ation plan early in 2014 ensured that the mine, mine and takes into account the establishment the project’s shareholder value. boasting a 30-year life-of-mine, will undergo its of all surface infrastructure, servitudes for An optimisation study has increased mine main commissioning in the fourth quarter of bulk power and water supply, the sinking and capacity by 8.7% to 255 000 t/m of run-of-mine 2018, before being ramped up to full production equipping of ventilation and main shafts, ore at full capacity. in 2020. the associated underground infrastructure, According to the optimisation study, the A feasibility study has also started on the  rst the ancillary excavations and the access control budget estimate of nominal capital phase of the housing project, which will consider development to establish a footprint for full expenditure is also expected to decrease from o -balance-sheet funding options. production. R12.03-billion to R10.69-billion.

Mupfuti to reach production early 2015 ZIMBABWE-based platinum producer www.dymot.co.za Zimplats’ Mupfuti mine was on schedule to Tel: +27 11 970 1920 • Email: [email protected] reach design production capacity early this year, the company said in October last year, Market leaders in conveyor reporting that its Ngezi Phase 2 expansion tensioning equipment project was progressing well. • Take Up Winches with overload protection e $460-million, Phase 2 expansion, • Electric Winches which involves the development of Portal 3 • Hand & Motorised Hand Winches – Mupfuti, was approved in May 2010 and • Hydraulic Winches consists of a two-million-tonne-a-year • Worm Winches underground mine, a concentrator module • Sheaves of the same capacity and related infrastruc- • Steel Wire Rope & Fittings ture. It is expected to increase the oper- NGEZI MINE EXPANSION ation’s production to 6.2-million tonnes The $340-million Phase 1 expansion project a year. was completed in 2009 and allowed for the simultaneous development of mining e Phase 1 expansion project, valued at Portals 1, 2 and 3 $340-million, was completed in 2009 and allowed for the simultaneous development of the 1.2-million-tonne-a-year mining Bimha, at the Ngezi platinum mine; the Portal 1, called Ngwarati; the one-million- construction of a new two-million-tonne-a- tonne-a-year Portal 2, called Rukodzi; the year concentrator; 715 new sta houses near two-million-tonne-a-year Portal 4, called Ngezi; and the upgrade of amenities in the area. e expansion had increased the mine’s Cat philosophy: It doesn’t hurt to ask for overall throughput from 2.2-million tonnes a Winch Hire what you want. year to 4.2-million tonnes a year. Available ©CM 230115MF

RA MINING WEEKLY | February 6–12, 2015 33 WHAT’SON For more information visit www.engineeringnews.co.za/whatson SOUTH AFRICA MINING, EXPLORATION Tel +44 207 216 6060, April 12–15, 2015, & SERVICE Email bilal.azmat@ Tel 604 683 2037, Asia Mining Congress 2015, minesandmoney.com, Email minewatersolutions@ MINING, EXPLORATION Singapore, infomine.com, & SERVICE May 25–27, 2015, Groundwater Modelling for Mining, www.infomine.com. Mining Africa, Tel +65 6322 2750, Vancouver, Cape Town, Email lydia.sebastian@terrapinn. May 28–29, 2015, PDAC 2015, March 11–12, 2015, com, Tel +1 604 683 2037, Toronto, Tel +44 29 2072 9089, www.terrapinn.com. Email edumine-support@infomine. Email darren.roach@cdmmedia. March 1–4, 2015, com, Tel +416 533 3998, com, 21st Bauxite & Alumina www.edumine.com. Email [email protected], www.africa.miningsummit.com. Conference 2015, www.mineafrica.com. February 24–26, 2015, Geosynthetics in Mining – Practice Business Improvement in Mining, Miami, and Developments, Johannesburg, Passive Treatment of Tel +12 12 901 3828, Canada, March 17–18, 2015, Email marketing@metalbulletin. Contaminated Mine Drainage, March 10–12, 2015, Tel +27 11 593 2267, com, Vancouver, Tel +1 604 683 2037, Email [email protected], www.metalbulletin.com/events/ba. April 12, 2015, Email edumine-support@infomine. www.businessimprovementin- Tel +1 604 683-2037 ext. 291, com, mining.com. Austmin 2015: Transforming Email [email protected], www.edumine.com. Mining, www.infomine.com. Power and Electricity World Africa Australia, Mine Closure 2015, 2015, May 9–20, 2015, Mine Dewatering and Mine Water Vancouver, Johannesburg, Tel +61 2 9229 1000, Management, June 1–3, 2015, March 24–25, 2015, Email [email protected], Vancouver, Tel +604 683 2037, Tel +27 11 516 4000, www.austmine2015.com. April 12, 2015, Email mineclosure@infomine. Email [email protected], Tel +1 604 683-2037 ext. 291, Mine Site Automation and com, www.terrapinn.com. Email [email protected], Communication WA 2015, www.infomine.com. www.infomine.com. Mining Summit Africa, Australia, March 11–12, 2015, Turkey and Central Asia Mining Cape Town, The Role of Water Management in Tel +61 2 9229 1000, Investment Summit, March 11–12, 2015, Historic Tailings Dam Failures, Tel +02920 729089, Email [email protected], Istanbul, Vancouver, Email [email protected], www.mineautomation.com.au/wa. June 23–25, 2015, April 12, 2015, www.africaminingsummit.com. Tel +44 207 216 6060, Tel +1 604 683-2037 ext. 291, Environmental Connection 2015, Email bilal.azmat@ Email [email protected], POWER-GEN AFRICA & Portland, minesandmoney.com. www.infomine.com. DistribuTECH Africa 2015, February 15–18, 2015, Tel +1 800 455 4322, Cape Town, Drill & Blast 2015, www.ieca.org/ContactUs/ Establishing and Maintaining July 15–17, 2015, Australia, ContactIECA.asp. Tel +27 11 869 9153, April 29–May 1, 2015, a Social Licence to Operate in Email [email protected], Tel +61 2 9229 1000, Mining, Mine Water Solutions in Extreme www.powergenafrica.com. Email [email protected], Live Webcast Format, Canada, Environments 2015, April 21–24, 2015, Vancouver, www.drillandblastevent.com.au. Tel +1 604 683 2037, INTERNATIONAL April 12–15, 2015, Tel +604 683 2037, Mine Water Solutions in Extreme Email edumine-support@infomine. METALS & MINERALS Email minewatersolutions@ Environments 2015, com, Coal and Iron Ore Botswana, infomine.com, Vancouver, www.edumine.com. Botswana, www.infomine.com. March 23–26 , 2015, What’s On serves to inform readers of seminars, conferences and exhibitions taking place in both the local and the international sphere. Each item is listed according to the crucial aspect Tel +27 11 593 2267, Mines and Money Beijing, of the event. Fax details to (011) 622 9350, or email: [email protected] Email [email protected], Beijing, two weeks before publication. Please include details concerning the nature of the event, www.coalminingbotswana.com. May 26–28, 2015, the venue (city and country), the dates and a contact number. SMALL BUSINESS & SUPPLIER DEVELOPMENT Advertising booking deadline 10 February 2015

Contact Reinette Classen on +27 11 622 3744 or email: [email protected]

34 MINING WEEKLY | February 6–12, 2015 EG vein, vein stockwork, and subordinate vein breccia systems of MINEPROFILE variable intensity. The vein/stockwork systems display parallel and discordant relationships to stratigraphy. These systems are relatively continuous along strike, from tens of metres to several hundreds of metres. Several mineralisation zones have been explored to varying degrees, including (from south to north): the Bridge zone, the VOK zone, the West zone, Gossan Hill, the Shore zone, and the SG zone. High-grade gold mineralisation in the VOK, the current focus of the project, occurs in a series of west-north-west and subordinate west-southwest-trending subvertical corridors of structurally reorientated vein stockworks and vein breccias. Stockwork mineralisation displays discordant and concordant relationships to the volcanic pile stratigraphy. Gold is typically present as gold-rich electrum within deformed quartz-carbonate vein stockworks, veins and subordinate vein breccias. Recent underground exploration conducted as part of the bulk sample programme confirmed the location of corridors of stock- work-style mineralisation and the lithological contacts in this part of the deposit within the VOK. The VOK deposit is currently defined over 1 200 m in east-west extent, 600 m in north-south extent and up to 650 m in depth below the topographic surface. The West zone appears to form the northern limb of an anticline that links up with the VOK in the south, and the southern limb of a syncline that extends further to the north. This zone, which is currently defined over 590 m along its north-west strike, 560 m across strike and down to 650 m in depth, is open to Brucejack mine the north-west, south-east and at depth to the north-east. Name: Brucejack mine. Reserves: Total proven and probable reserves as at June 2014 Location: The Brucejack mine project is located about 65 km north were estimated at 16.5-million tonnes grading 14.1 g/t of gold and of Stewart, in north-western British Columbia, Canada. 57.7 g/t of silver. Controlling Company: Pretium Resources (Pretivm). Products: Gold and silver. Brief History: The Brucejack property and surrounding region have Mining Method: Long-hole stoping and cemented paste backfill. a history rich in exploration for precious and base metals dating Major Infrastructure and Equipment: The process flowsheet back to the late 1800s. In 2009, Silver Standard began work on developed for the Brucejack mineralisation is a combination of the property. The 2009 programme included drilling, rock-chip conventional bulk sulphide flotation and gravity concentration to and channel sampling, and resampling of historical drill core. In recover gold and silver. 2010, pursuant to a purchase and sale agreement between Silver The process plant will produce a gold-silver-bearing flotation Standard (as the seller) and Pretivm (as the buyer), Silver Standard concentrate and gold/silver doré by melting the gravity concentrate sold to Pretivm all of the issued shares of 0890693 BC – the owner produced from the gravity concentration circuits. It will comprise of the project – and the adjacent Snowfield project. primary crushing underground; a conveying system for crushed ore; Brief Description: Brucejack is part of a largely unexplored land primary grinding gravity concentration; rougher/scavenger flotation; package of more than 103 000 ha. The focus of the project is the bulk flotation concentrate regrinding and gravity concentration; Valley of the Kings (VOK), which comprises high-grade visible gold cleaner flotation; gravity concentrate smelting to produce dore; flo- stringers within a lower-grade gold quartz stockwork system. The tation concentrate dewatering, bagging and load out; and tailings mine is expected to produce 7.27-million ounces of gold over an disposal to the tailings impoundment or to the underground mine 18-year mine life, and commercial production is scheduled for 2017. for backfilling. Geology/Mineralisation: The Brucejack deposit is considered Prospects: Pretivm has contracted AMEC Americas to provide the to be a transitional to intermediate sulphidation epithermal engineering, procurement and construction management services stockwork vein system-hosted gold/silver deposit that was for the Brucejack mine project. developed in a dynamic extensional basin. It is likely associated Contact Person: VP, corporate relations Michelle Romero. with a deeper porphyry system that developed within an active Contact Details: island arc tectonic setting. Pretivm Resources, The property is largely underlain by volcano-sedimentary rocks tel +1 604 558 1784, of the Lower Jurassic Hazelton group. These rocks unconformably email [email protected], overlie volcanic arc sedimentary rocks of the Upper Triassic Stuhini website http://www.pretivm.com. group along the westernmost part of the property. Gold/silver mineralisation is hosted in predominantly subvertical Compiled by Sheila Barradas LASER TECHNOLOGY Advertising booking deadline 24 February 2015 To book advertising in the print and iPad editions, please contact Reinette Classen on +27 11 622 3744 or email: [email protected]

LO MINING WEEKLY | February 6–12, 2015 35 NEWS&INSIGHT

GOLD (Jorc-) compliant resource of 2.99-million ounces, includes 43 historically productive mines, which produced well over six-million ounces of gold in Trial Run the last century. Birrell elaborates that, when Stonewall Mining Australian company starts trial reef residue mining in Pilgrim’s Rest bought TGME, the company spent much time and effort exploring the old mining operations JADE DAVENPORT | CORRESPONDENT that dot the Pilgrim’s Rest Valley. The company soon realised that, because of limited technology, unior gold miner Stonewall Mining, a wholly will run to the end of March, when Stonewall infrastructure and accessibility, the original owned subsidiary of ASX-listed Stonewall intends to ramp up production from 10 000 t/m miners had to focus on high-grade mining, JResources, has started bulk trial mining to 30 000 t/m. It is expected that the company will whereby visible reef would be hand-sorted and at its historic Beta mine, in Pilgrim’s Rest, transition to full-scale production of 80 000 t/m extracted, while the remaining residue would be Mpumulanaga. in the second half of the year. Following this pushed back into the stopes to act as support. This forms part of an ambitious premined initial mining stage, the proposed expansion of “Because the miners would pick the richest reef residue (PMR) project, which aims to extract and the project later in the year will give Stonewall under very difficult conditions underground, it is process between 17-million tons and 35-million an equivalent annual production rate of about estimated that they only extracted 20% of the run- tons of reef residue with an average grade of 30 000 oz. of-mine and left the remainder in the horizontal 1.7 g/t that was left behind by the original Pilgrim’s Birrell states that the perception that the stopes. However, what the old miners considered Rest miners during the previous century. Pilgrim’s Rest goldfield is marginal, complex and as ‘waste’ contains all the fine-fraction gold that According to the conceptual ounces calculated largely mined out is inaccurate. could not be seen or be easily extracted with their by the independent competent person, Stonewall’s “The reef residue that was left behind in limited technology and is a valuable resource in PMR project has a minimum target of 720 000 oz the stopes of the mines by the original miners its own right,” says Birrell. Over the past year, of gold, but could produce as much as 2.4-million represents the last large and easily accessible Stonewall Mining has taken more than 1 500 ounces. Further, the figures released estimate oxisidised gold resource in South Africa. If our samples and assays of the premined residue from that the cost of executing the project will be mining capability is equal to the task, there is various sections within eight of its 43 mines to $753/t, significantly lower than conventional absolutely no reason why we could not target determine a resource estimate. underground mining costs. significant ounces at a low cost,” states Birrell. While all eight of the historical mines investi­ Stonewall Mining CEO Lloyd Birrell explains Stonewall Mining, which Birrell founded in gated thus far would prove payable at a working that he low cost of production is a result of the fact April 2010, acquired the mining rights for the cost of $753 g/t, Stonewall Mining has opted to that the reef residue is pre-explored, predeveloped, Pilgrim’s Rest area when it bought the historic start the PMR project with a specific focus on the has been drilled and blasted and is oxisidised. subsidiaries of Transvaal Gold Mining Estates Beta mine, which is the closest to the processing “We are currently using scraper winches to (TGME) and Sabie Mines from Simmers & Jack plant. Beta was first mined in 1940 and production extract the reef residue from the stopes. We will in September 2010. Through that purchase, ceased in 1972. It is estimated that the mine then vacuum out the remaining fine material. Stonewall Mining acquired seven mining rights produced 225 000 oz of gold during that time. That material is being transported a short and six prospecting rights extending over an area The mine has a current Jorc-compliant mineral distance to our Donald Liston plant, in Pilgrim’s of 62 000 ha from Bourkes Luck, in the north, to resource of some 531 000 oz at a grade of between Rest, for processing and smelting,” says Birrell. Sabie, in the south. This extensive mining right 3.10 g/t and 4.86 g/t, which is independent of the The bulk trial mining phase of the PMR project area, which has a Joint Ore Reserves Committee- reef residue material.

DIAMONDS The company has cash in hand of $129.6-million term “indigestion” in the diamond pipeline, and undrawn available debt facilities of caused by liquidity, polished inventory and strong Petra declares dividend, ups $66.9-million. US dollar-denominated diamond prices, the diamond production guidance The power issues of South Africa’s State Chinese New Year on February 19 would likely electricity utility Eskom did not represent a help firm up pricing towards June. MARTIN CREAMER material risk at this point, owing to Eskom’s Expansion projects at Finsch, Cullinan and EDITOR approach of consulting prior to load-shed­ Koffiefontein were continuing to progress in line LONDON-listed diamond mining company Petra ding, which allowed Petra to use curtailed with expectations. Diamonds, which last week declared its first tailings production to minimise higher-value Increased run-of-mine (RoM) production from dividend, has pushed up production guidance to underground production. “This strategy has Finsch, Koffiefontein, Kimberley Underground 3.3-million carats for the year to June 30. ensured that there has been no material impact,” and Williamson was offset by lower RoM from Petra, which operates the Finsch, Cullinan, CEO Johan Dippenaar commented. Cullinan and lower tailings production from Koffiefontein and Kimberley Underground Petra produced 1 601 069 ct in the six months to Finsch and Koffiefontein. diamond mines, in South Africa, and the William­ December 31, 2% less than in the corresponding H1 production at Finsch rose 4% to 1 013 117 ct, son diamond mine, in Tanzania, declared a 2p a previous H1. driven by increased throughput and grades and share dividend for the full 2015 financial year. However, revenue was up 16% to $214.8-million, the higher recovery of smaller diamonds, allowing The independent diamond mining company boosted by the weaker rand and the sale of two H2 guidance to be lifted by 200 000 ct. said it intended paying a progressive dividend as exceptional diamonds for $38.7-million, which H1 production at Cullinan fell 15% to it moved through its current phase of significant cushioned a weaker-than-usual rough diamond 391 398 ct and grades below guidance to capital expenditure (capex) and increasing free market. 25.8 ct per 100 t as a result of the absence of cash flow. Capex of $125.2-million was well The company achieved an average H1 value of separate waste-handling facilities. up on the $85.3-million in the corresponding $154/ct, compared with $130/ct in the previous RoM production at Koffiefontein increased previous half-year (H1) and net debt well down corresponding H1 period. 6% to 9 709 ct, but overall production fell at $45.8-million. Dippenaar said that, although there was short- by 30% .

36 MINING WEEKLY | February 6–12, 2015 RA OPINION&ANALYSIS

DIGGING DEEP own makeshift lodgings and tactically accepted his authority by Trendy market gives new referring to the settlement as Ferreira’s Camp. And thus began lease of life to historic the first settlement of Johannesburg. The site of Jade Davenport the mining Joburg mining warehouses warehouses is also believed to be the location of one of the city’s original bars: a liquor licence was ohannesburg is, and has been, many 1 Fox street. Located on the western limits granted for Ferreira’s Bar on this site in 1893 things but ‘historically sentimental’ is not of the city, The Sheds comprises an entire and for Good Luck Bar in 1895. In deference Jone of them. From its very establishment, block of warehouses that were historically to this special piece of urban history, Good the quintessential city of gold was a dynamic, used for mining and industrial purposes, Luck Bar has been re-established within The constantly evolving urban settlement which have now been refurbished to create Sheds, close to its original site. However, this entirely fixated on industrial progress and a marketplace, showcasing local goods and trendy new watering hole will be far different wealth creation. Indeed, for the most part, artisanal food and produce, surrounded by in character and appearance to the original the attitude of the pioneers and the many trendy eateries and bars. rough and ready saloon of 120 years ago. generations that have inhabited the city has What is of particular interest is the fact Nonetheless, it is a very nice touch. been: Why waste valuable time and effort that The Sheds is believed to be one of It is understood that the warehouses, preserving the history and heritage of the Johannesburg’s oldest industrial structures. being conveniently located, were used by city when there is gold to be mined and According to The Shed’s website, while mining companies for over a century, with money to be made? most of the buildings on site date from the the most recent occupant being Anglo If you think this is an overly harsh descrip­ 1920s and 1940s, the centre part of the main American Corporation. However, according tion of Joburgers’ attitude to their city, it warehouse is possibly the oldest industrial to The Shed’s website, during the last should be pointed out that, at the establish­ structure in the entire city, as oregon pine decade, most of the buildings at 1 Fox street ment of the village back in October 1886, posts and trusses suggest that this part was stood vacant, awaiting redevelopment had a pioneer taken a brief respite from built before the South African War of 1899 as office space. That was until two local the absolute fixation on gold min­ing and to 1902. entrepreneurs, Jan Roode and Gerald lust for profit and accurately recorded It is understood that the original shed was Garner, saw the potential of the buildings Johannesburg’s founding history, we might constructed in 1893 by Hubert Davies – owned by private property developer the know, for certain, for which ‘Johannes’ the the most renowned South African electrical Johannesburg Land Company (JLC). In settle­ment was actually named. engineer of the day and a man who played 2014, through their company, JoburgPlaces, Having said that, for the past few years, a central role in developing the city’s power they signed a long-term lease with JLC as there have been signs that the attitude and, infrastructure and industrial capabilities – part of their initiative to reimagine the old dare one say, pride of the city’s residents for storing wares for the gold mines located warehouses. Indeed, JoburgPlaces has done to its heritage, at least as far as the preser­ along the Main Reef, just a few kilometres to a superb job in refurbishing and giving a new vation and reuse of historical buildings are the south. lease on life to these quintessentially historic concerned, are taking a step in a positive The warehouses are not only some of the buildings. direction. oldest structures in the city, but they are also Located close to the confluence of the One need only look at the revamping of the located in the oldest, most original area of M1 and M2 highways, just off the Selby Maboneng precinct, in the neighbourhood Johannesburg – Ferreirastown, originally offramp into town, and a short distance of Jeppestown, as a prime example of such known as Ferreira’s Camp. south of the Nelson Mandela Bridge, The urban renewal and the reuse of once prime One will recall that, following George Sheds@1Fox is accessible from all corners of industrial complexes. Walker and George Harrison’s era- Johannesburg and is proving to be a popular The latest in this spate of urban industrial changing discovery of gold on the farm new attraction for locals. renewal, and one that is of particular Langlaagte in February 1886, prospectors It is open Thursday to Sunday every relevance to this column, is The Sheds, at began flocking to the Witwatersrand in week and plans for a Phase 2 of the project, droves to try their luck. One of the first which will include permanent retail, to arrive was Colonel Ignatius Philip production and entertainment spaces in the Ferreira, a veteran prospector and one of surrounding buildings, are in place. the most renowned gold diggers in South Kudos should be given for this initiative Africa. When he arrived in April of that year, of preserving an aspect of the city’s inherent he outspanned on the farm Turffontein, not history that might otherwise crumble into The Sheds@1Fox is far from the site of the original discovery. oblivion. accessible from all corners Because of his respected reputation, of Johannesburg and is many of the younger prospectors, lacking proving to be a popular experience and leadership, set up their own Davenport, MA(UCT), is a freelance journalist and new attraction for locals little campsites in the vicinity of Ferreira’s mining historian – [email protected]

EG MINING WEEKLY | February 6–12, 2015 37 MININGPERSONALITY Full Name: Anthony Craig Bruce Position: Regional VP: Africa, Europe and the Commonwealth of Independent States, Immersive Technologies, since January 2014 Main Activity of the Company: Supplier of surface and underground mining equipment simulators to mitigate risk Date and Place of Birth: June 18, 1965, Bedfordview, Gauteng Education: Parktown Boys High, Grade 12, 1983; marketing and business management, part-time, IMM Graduate School of Marketing, Johannesburg, 1989 to 1991 First Job: Officer in the South African Army, 1984 to 1986 Size of First Pay Packet: R720 a month Number of People under Your Leadership: 16 Management Style: Collaborative Personal Best Achievement: Being MD of digital printing company Omnigraphics Person Who Has Had the Biggest Influence on Your Career: My wife, who has supported my drive and ambition to succeed and is accepting of my long hours and onerous travel commitments Person You Would Most Like to Meet: Richard Branson Businessperson Who Has Impressed You Most: Patrice Motsepe Philosophy of Life: Work hard, play hard and have no regrets Biggest Ever Opportunity: Business activities with Immersive Technologies have taken me to places around the world that I would otherwise not have experienced Biggest Ever Disappointment: Not studying law Hope for the Future: That we can pull together as South African citizens in eradicating corruption and reducing violent crime Favourite Reading: Novels by John Grisham and James Anthony Bruce Patterson Favourite TV Programme: The Good Wife and Game of Thrones Favourite Food/Drink: Lamb curry and good red wine Immersive Favourite Music: 1980s Favourite Sport: Rugby Hobbies: Playing golf, watching sport, outdoor cooking Technologies on my Weber gas braai Car: Audi Q5 Pets: Two small dogs Miscellaneous Dislikes: Procrastination Married: To Lee-Ann (née Backman), since 1995 Children: Tayla, 20; Ross, 17 © Copyright Creamer Media (Pty) Ltd MC Clubs: Kyalami Country Club

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