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Report' Resource'Engineering' Company'Visits'2012''''' South'Africa'

SME&TMS"Joint"Student"Chapter"Delft"

1" "

When we were planning this trip we were sure about one thing, we are going to South Africa. Being a real ‘mining country’ with, amongst others, the deepest mines in the world South Africa was a great attraction to us. We knew some of the mines they had there but only because they were mentioned in lectures or maybe from Discovery Channel, we didn’t have a clue what it would be to be in one of those mines in real-life.

To help organising the tour we found a very enthousiastic and helpful partner in the Mining Department of the University of Pretoria (Tuks). Coincidentally they were having their yearly excursion around the same time as we were there and they were about to visit some of the mines we wanted to see too. This sounded like a great opportunity to see some mines and meet some fellow mining engineering students too. So we did. As you can see in the programme we joint the Tuks group in our second week and had a great time with them. Meeting all this people from all different cultures and background was certainly a valuable addition to our excursion (and maybe even theirs too).

The mines we saw were very impressive, some of a scale you cannot imagine without having been there. The variety of resources South Africa has is stunning, seeing how different approaches and methods are used to extract them makes it very interesting.

Really being on site is when you realise why these Company Visits are so important. All these little things that come peeking around corners in an operation you cannot learn from books or Powerpoint slides, you cannot imagine it unless you’ve seen it. For example, textbooks don’t teach you the baboons mess up your extensometers (Palabora). On the other hand, being in the mines gives you a good illustration to the textbooks too. Now you can really see why certain types of rockbolts work in a situation and others won’t.

We had a wonderful excursion in a very nice country where we saw some beautiful mines and met many interesting people. Therefore we would like to thank all the sponsors for their support because without them this wouldn’t be possible. Also a big thank you to Prof. Webber-Goodman and his staff from Tuks Mining for their very kind and elaborate help. Last but not least we very much thank the staff at the Resource Engineering Section at the TU Delft for their help and support.

Jan-Douwe Wansink Machiel van der Linde

Joint SME-TMS Student Chapter Delft 2011-2012

2" "

Programme

Date% Activity% Location/Mine% Note% vrijdag"6"juli"2012" Departure"to"SA" Schiphol" " zaterdag"7"juli"2012" Arrival"in"SA" ORT"Int."Airport" "

zondag"8"juli"2012" Day"off" Pretoria" Game"Drive"

maandag"9"juli"2012" Mine"Visit" Zibulo"Coliery" UG&Coal"

dinsdag"10"juli"2012" Mine"Visit" Barberton"Nkomati" UG&Nickel"

woensdag"11"juli"2012" Day"off" Kruger"Park" Game"Drive"

donderdag"12"juli"2012" Mine"Visit" Palabora" UG&Copper"

vrijdag"13"juli"2012" Travel" Polokwane" to"Pilanesberg"

zaterdag"14"juli"2012" Day"off" Pilanesberg/Sun"City" "

zondag"15"juli"2012" Travel" Pilanesberg" Meet"UP"in"Krugersdorp"

maandag"16"juli"2012" Mine"Visit" Hotazel"Mamatwan" Surface&"

dinsdag"17"juli"2012" Mine"Visit" Black"Rock"Mine" UG&Manganese"

woensdag"18"juli"2012" Mine"Visit" Kathu"Sishen" Surface&Iron"Ore"

donderdag"19"juli"2012" Mine"Visit" Westonaria"South"Deep" UG&Gold"

vrijdag"20"juli"2012" Mine"Visit" Cullinun"Diamonds" UG&Diamonds"

zaterdag"21"juli"2012" Day"off" Pretoria" "

zondag"22"juli"2012" End"of" Pretoria" " excursion"  " " " "

3" " Remember, this excursion would not have existed without our sponsors!!

Main Sponsors:

4" " Sub Sponsors:

5" " How To: Quick evaluation of a mining operation

Goal:

Understanding the operation, its environment to define success factors and critical impacts factors.

Questions on Operations environment:

What is the holding structure- owner?

What is the commodity?

How is the market defined (geographic location, price, uncertainty in price and demand, competitors)?

Political, legal, environmental, social or other restrictions on the operation?

...

Operation set up:

Exploration strategy, Resources, Reserves, annual production, life of mine…

Critical factors in transferring resources to reserves

& Technical (equipment, losses, dilution, SMU sizes, ore grades, depth …) & Environmental & Permitting issues

Long term mine planning – strategy (Which factors influence the strategic development of the mine)?

Operation organisation (management, contractors)

HSE (Health, safety and environmental program…)

Labour skills

...

Operation process:

Mining process (exploration, planning, extraction, logistics, blending, pre-crushing, shipping…)

Technical Highlights

Daily process organisation: Planning, surveying, Grade control, Reconciliation...

Auxiliary processes

Equipment availability, maintenance strategy, ware housing...

6" " Questions:

What are success factors of the operation in the market environment?

What are best practices in the operation?

What are potential critical developments/factors for the operation?

What are potentials for improvement?

What is a possible strategy for the future?

7" " Zibulo Colliery (Underground)

By Kasper Speth

Facts: Ownership: Anglo American (73%) and Inyosi (27%) Commodity: Coal Location: Mpumalanga, South Africa Number of employees: 650 (+ 390 contractors) Mining method: Room and Pillar Fleet: 7 Joy HM Mega Head Continuous Miners 3 Cable Shuttle Cars 3 Joy Battery Haulers Annual mine production capacity: 8 Million tons Production start: 2009 Expected life of Mine 20 years Product: Domestic and Export Thermal Coal (25-30% Ash)

Location: surface monitors every machine Zibulo Colliery is situated some 25 km underground. And automation is tried south-east of Ogies, Mpumalanga, South where possible to reduce man force Africa, about 100 km to the East of underground and therefore reduce risk. Johannesburg. This mining complex consists of three mines producing for the Mining Method: nearby situated Eskom’s Matla power The Room and Pillar method is used at station. Zibulo Colliery. This because there is no subsidence allowed at the surface. This is General: achieved, even in the soft coal, by taking Zibulo Colliery is Anglo’s newest coal mine no risks and keeping the rooms small in South Afrika, Zibulo is Zulu and stands compared with the pillars. Pillar for “first born”. The goal for Zibulo is to be dimensions are 22 by 22 meters with “the safest mine”. This is proven by the rooms of 6 meters, with a maximum fact that during sinking of the 110 meter height of 5.5 meters. deep main shaft (11 meter diameter, 80 In Seam 2 roof conditions are not ideal ton capacity) there were no fatalities. This therefore fully grouted roofbolts are used. is a first in Afrika. This keeps a guaranteed stable situation. The Zibulo Colliery is also a test ground for The mining is done with continuous new technologies. A control room at the miners, which have a service contract.

8" " Coal is transported to the coal handling producing coalfield, on a tonnage basis, in system by both shuttle cars and battery South Africa. haulers. Coal Handling System: The coalfield is host to up to five coal Seams contained within the middle Ecca To get the mined coal to the Eskom power Group sediments of the Karoo Supergroup, plant there is a 16 kilometer long approximately 280 million years in age. conveyor, the longest single flight And is characterized by the fact that in the overland conveyor in Afrika. Which has a northern regions, almost all the coal capacity of 1650 tons/hour. Seams, attain mineable thicknesses with The coal is transported to the Phola economic potential. At Zibulo Colliery only processing plant (an Anglo American Seam 2 and Seam 4 are mined. Inyosi Coal/ BHP Billiton joint venture) First seam 2 is mined, seam 4 which is where it is prepared for direct use in the easier and shallower will be mined at a Eskom power plant. later point in time.

Geology: The depth to the coal Seams increases in The Highveld Coalfield is located in south- a southerly direction, it can be mined by eastern Mpumalanga Province, opencast in the Kriel (northern) district, immediately south of the Witbank while it occurs at a depth of around 200m Coalfield. The width of the coalfield is in the Standerton (southern) district. The some 95km, stretching from Nigel and coal Seams are generally flat-lying to Greylingstad in the west to Davel in the gently undulating with a slight regional dip east, and is about 90km long, from just to the south. north of Kriel to beyond Standerton in the Structurally, the coalfield is relatively south and covers an area of approximately undeformed with no prominent folding 7,000km2. After the Witbank Coalfield, the having been identified. Large areas of coal Highveld Coalfield is the next largest have been rendered uneconomical due to the effects of dolerite intrusions.

9" " Sources: http://www.exxaro.com/pdf/icpr/a/geology/coal.htm http://www.im-mining.com/2010/06/07/innovation-and-nature-work-hand-in-hand-at- exxaros-matla-coal-mine-south-africa/ http://saisc.co.za/saisc/downloads/publications/issues/vol_34_july_2010/Projects%20Zibulo. pdf http://www.angloamerican.co.za/our-operations/thermal-coal/operations.aspx http://www.pamodzi.co.za/index.php?option=com_content&view=article&id=159:anglo- inyosi-coal&catid=39:investments-at-a-glance&Itemid=61 http://www.joy.com/Joy/Products/Haulage-Systems/Batch-Haulage-Systems/Battery- Haulage-Options.htm!

10" " IT TAKES A SPECIAL KIND OF PERSON TO WORK FOR ANGLO AMERICAN’S EXPLORATION TEAM.

PEOPLE LIKE MATTIAS JOHANSSON, WHO HAVE THE SKILLS TO FIND MINERALS IN THE HARSHEST ENVIRONMENTS BUT WHO ARE ALSO DRIVEN TO FIND WAYS TO MINIMIZE THE IMPACT ON THAT ENVIRONMENT.

EXPLORING HIGH UP IN THE ARCTIC, HE IS PART OF A TEAM THAT PIONEERED A CLOSED-LOOP DRILLING SYSTEM, WHICH REDUCED BOTH WATER USAGE AND WASTE.

IT’S ABOUT FINDING WAYS TO DISCOVER MINERALS AND SHOWING A RESPECT FOR THE LAND AND THE COMMUNITIES THAT LIVE THERE.

IF YOU ARE INTERESTED IN WORKING IN MINING AT THE REAL FRONTIER OF MATTIAS JOHANSSON DISCOVERY, FIND OUT MORE AT Anglo American GETTHEFULLSTORY.COM/CAREERS WANTED: PEOPLE WHO CAN FIND A NEEDLE IN THE ARCTIC

41829_6 AngloAmerican_Exploration_Mattias Johansson Artworker: Proof: DATE: Client: Anglo American Description: Exploration press

Artwork Size: 297x210 mm Trim 303x216 Bleed Page 1 Publication: Excursion report FONTS: DIN Barberton Nkomati Underground Nickel Mine

By Thom van Gerwe

The Nkomati mine is a joint venture grades with an average of 0.25%. At the between the companies Norilsk Nickel base of the complex, a fourth sulphide Africa and African Rainbow Minerals. Both orebody, the Massive Sulphide Body was companies have 50% interest in the mine. discovered. The ore bodies were created The opencast/underground mine is very by a tube of magma with a NWSE young and is expected to be in full direction and a dip of 40° and is called production in 2014. The total labour is “Uitkomst Complex” around the 2000. Here is nickel mined in The underground ore body that is mined the form of pentlandite. All the nickel goes has a depth of 350-420 meters, a dip to Russia. length of 6535 meters and a strike of 811 The mine is located 300 km east of meters. But a large part of it is still not Johannesburg in the South African defined. province of Mpumalanga. Besides this The mining methods that are used are mine there are no other primary nickel “bord and pillar” for an ore body thickness producers in South Africa. There are also of less than 10 meters. And “long hole by-products mined, such as copper, PGMs, open stoping” for an ore body thickness of chromium, cobalt, gold and rhodium. One more than 10 meters. The bord is 9 of the big risks of the mine is the presence meters width and the pillars are 8x8 of asbestos in a part of the ore body. square meters. With the safety factor of Inhalation or digestion of asbestos can 1.5, about 73% of the coal is mined. The cause lung diseases. stability pillars are 30x30 square meters The Nkomati consists of several ore and are located every 180 meters. The bodies. The important ones are a rich support are resin grounted bolts of 2.1 sulfide ore body (Basal Mineralised Zone), meters and are place every 1.5x1.5 square which is currently depleted, and the Main meters. The challenges underground are Mineralized Zone which contains machinery availability, decrease in the disseminated ores with lower grades with quality of mining ore, production an average of 0.45%. The deposit also management and the reducing of lost contains a Peridotite-Chromite time. Mineralization zone with lower metal

11" " There are two ventilation shafts placed for a capacity of 320.000 tonnes of ore each the ventilation of the underground mine. year. The recovery is about 50 - 70% The The capacitiy is 103 m3/s air and the plant produces up to 5500 tonnes of nickel temperature is 22.5-25 °c. The machines concentrate per year. The plant located underground are driving on diesel. south of the Nkomati.

The mining methods that are used at the In 2011 the Nkomati produced 8000 to open pit mine is “drilling and blasting”. 10000 tonnes of nickel, 5000 tonnes of The explosive that is used is ANFO. The copper and more than 53000 ounces of risk of the of the mine are fragmentation, PGM. A special detail is the average nickel sometimes 40% oversize, and the grade of the ore. In 2008 the grade was structure of management. Water is never 0.70% and in 2011 only 0.32%. been a real problem. The life expectancy is

2028.

The extracted ore is processed using the traditional sulfde flotation technology with

Sources: http://www.arm.co.za/b/platinum_nkomati.php http://www.nornik.ru/en/our_products/norilsknickelafrica/#2 http://www.mpumalangacompanies.co.za/pls/cms/ti_company_search.company_display_pro vince?p_c_id=1430&p_site_id=150 http://www.miningweekly.com/article/nkomati-mine-mpumalanga-1999-09-17

12" " Palabora Underground copper mine

By Francien Troost

FACT OVERVIEW Ownership Palabora Mining Company Limited Rio Tinto (58%) and Anglo American (29%) Employees 2,200 Location Ba-Phalaborwa area, Limpopo Province Product Primary: copper By-products (yearly production in brackets): Magnetite ~3.9 Mtpa (wet), nickel sulphate (~700 tpa), sulphuric acid, vermiculite (~190 ktpa) and anode slimes (100 tpa) Small quantities: gold (~9 kozpa), silver (~215 kozpa)

Type of mining Out-mined open-pit (1.8 km x 1.2 km x 898 m deep) Underground block-cave mine (2001) Copper ore Production rate 82,000tpd (formal ultimate open pit operation) 30,000tpd (block-caving operation) Refined product 135,000tpa (formal ultimate open pit operation) 80,000tpa (block-caving operation) Mine founding 1956 Production start 1966 Mine life 2016 (for the current block-caving operation)

Overview plants produced 2.7Mt copper. In 1996 the The open-pit started in production in development plan to continue with an 1966, mining 30,000 tpd to produce underground block cave mine was approximately 62,000 tpa of copper. Due approved. In 2002 Palabora reached its to production improvement and final economic pit depth and switched to modification, the production increased to the underground block cave mine mining rates of 82,000 tpd to produce operation. The mine’s daily production was approximately 135,000 tpa of copper. reduced from 82,000 tpd achieved in the From the 1960s to the 1980s the open-pit open-pit mine to 30,000 tpd in the new copper mine and associated processing block cave operation. Palabora is South

13" " Africa’s major producer of refined copper. apatite, phlogopite rock, and finally a The refinery plant produces 80,000 tpa of central intrusion of soviet (transgressive refined copper with a purity of 99.99%. carbonatite). The soviet (50 hectares on The copper is sold on the domestic and surface) is composed of calcite and world markets as rod or cathode, with magnetite with minor amounts of 92% of Palabora’s copper is sold locally. dolomite, apatite, chalcopyrite, bornite and This satisfies approximately 70% of South various silicates. African demand. The remaining 8% of the The Palabora copper ore body is an production is exported. Palabora also sells elliptically shaped, vertically dipping by-products such as magnetite, nickel volcanic pipe. The pipe measures 1,400 m sulphate, anode slimes, sulphuric acid and and 800 m along the long and short axes, vermiculite. The phosphate-rich tailings respectively. The ore body is open at are delivered to Foskor. depth with mineralization proven to 1,800 m below surface. Copper grades of Location approximately 1% are found in the central The mine is located near the city core of the ore body and decrease Phalaborwa, south-west from Kruger gradually towards the peripheries. National Park, in the Limpopo province, at latitude 23°57’S and longitude 31°9’E. The Reserve operation has five main sections: the out- As described in the overview, the mine mined Palabora open-pit, the underground reduced its annual production due to the bock cave mine, the vermiculite open-pit, transition to underground mining in 1996. the magnetite operation and the tailings In that year the reserve was fist estimated dams. The complex further includes a at 224Mt at a grade of 0.68% Cu resulting concentrator, a copper smelter and a in an output of 61,500 tpa refined copper. refinery plant, crushers, a power plant and There were an additional 16Mt of probable a chemical research laboratory. reserves at 0.49 w% copper available. However, in October 2004 the north- Geology western open-pit wall failed and The Phalaborwa Complex covers an area approximately 130Mt of waste material slid of 1,950 hectares and it consists mainly of onto the top of the block cave operation. a phlogopite and apatite rich pyroxenite. This reduced the overall ore reserve base This pyroxenite is intruded successively by by 23%. The entire ore reserve estimation a series of multiple rock/mineral types, had to be renewed. The total remaining including foskorite, and olivine, magnate, proven ore reserves remaining on 31

14" " December 2009 were 75.33Mt ore at a stations were built. The coarse grade of 0.61% copper. This reserve fragmentation of the ore-body requires a represented a life of mine of high degree of secondary braking activities approximately 6 years. The probable ore to keep the ore flowing through the draw reserves in 2011 compared with 2010 are points. A fleet of twenty diesel-powered 49Mt at 0.57% copper content and 62Mt LHDs with a 12 tonne payload capacity are at 0.60% copper content, respectively. It utilized to deliver muck directly into the is expected that Palabora can generate a four underground jaw crushers (Thyssen positive cash flow until 2016 Krupp 900 tph double-toggle jaw crusher). The crushers are linked with a 1.32 km Mining long conveyor belt to the production shaft. Open-pit mining The ore is then hoisted out the mine using Throughout its 35 year life, the open pit four 32 tonne payload skips. All major was at the forefront of surface mining underground fixed equipment, the fully technology. A highlight in its innovative automated service and rock hoists are open-pit mining operation was its use of monitored and controlled from a control trolley-assist system for haul trucks room situated on surface. coming out of the pit to save diesel. Furthermore, it was one of the first open- The mine operates continuous throughout pit mines who used both in-pit crushers the full calendar year, working 24 hours and computerized pit dispatching. per day, utilizing three eight hour shifts per day. Maintenance and service activities Underground block cave mining are scheduled carefully to obtain The underground mining operation is a maximum benefit from the mine. The block caving operation. The subsurface planned annual production is 12.2Mt mine has two shafts, a main surface shaft copper ore. (889 m deep) and a 1,280 m deep production shaft. The shafts are situated The vermiculite operation is carried out in 72m apart. RUC Mining developed 36 km an open-pit mine and recovery plant. of tunnels including the ore handling infrastructure, the underground crusher- Processing stations and the undercut level at 1,200 m The extracted ore is milled. A concentrate below surface (approximately 460 m with an average copper content of 32% is below the final economic pit-depth). produced. The dry concentrate is fed to Furthermore, underground crusher- the smelter to yield copper anode. Copper

15" " anode is transported to the refinery where environmental management system. It it is converted to copper cathode of controls its air- and water pollution and 99.99% purity. In the final processing step takes care of its disturbed land by land the cathode is melted and casted into reclamation. The safety and health of rods. The rods are rolled (molton) into Palabora employees and contractors is a various diameters and dispatched to core value of the Palabora business and of customers. paramount importance to the Palabora management team. Palabora’s main goal Environment, Health and Safety in the safety policy is to uphold their Palabora is located close to the Kruger standards and continually improve their National Park. The mine boundaries are performance to achieve the goal of zero fenced with security fencing which are harm to both employees and surrounding regularly patrolled by personal in vehicles. communities. Furthermore, a foundation Except for the southern side where the called Palabora Foundation was Selati River is part of the boundary. The established in 1986 by Palabora to north and eastern mine side which are improve Corporate Social Responsibilities adjacent to the Kruger National Park are of the Company. The foundation carries not fenced on its boundaries. This allows out projects such as Education, Skills the animal to roam freely from and to the Development, Business Development, HIV Park. Palabora operates under the and AIDS, and Local Economic requirements of the ISO 14001 Development.

Palabora mine with on the right the pit wall failure of the north-western open-pit wall 16" " Source list: • Fourth Quarter 2011 – Operations overview and production statistics, Palabora mining company limited, [online] available at: http://www.palabora.com/ [accessed 24 June 2012] • Mining-Technology, Palabora, South Africa, [online] available at: http://www.mining- technology.com/projects/palabora/ [accessed 24 June 2012] • Kuschke, O.H. and Toking, M.J.H. (1971),Geology and Mining operations at Palabora Mining Compay Limited, Phalaborwa, N-E Transvaal, [online] available at: http://www.saimm.co.za/Journal/v072n01p012.pdf [accessed 18 August 2012] • Ngidi, N.S., Pretorius, D.D. and Maiwasha, C. (Rio Tinto) (2010), Palabora Mining Company: Competent Person Report (CPR) on the mineral assets of Palabora Mining Company Limited, South Africa, [online] available at: http://www.jse.co.za/Libraries/JSE_Documents_and_Statistics_-_CPR_- _Rio_Tinto/Palabora_Mining_Company.sflb.ashx [accessed 18 August 2012] • Rio Tinto (2012),Palabora Mining company Limited: Second quarter 2012 – operations overview and production statistics, [online] available at: http://www.riotinto.com/annualreport2011/production_reserves_and_operations/ore_ reserves.html [accessed on 21 August 2012] • Rio Tinto (2011), Annual production report, [online] available at: http://www.palabora.com/files/operations/q2_operations_16Jul12.pdf [accessed 17 August 2012] • Rio Tinto (2010a), Palabora Mining Company Limited: Integrated annual report 2010 [online] available at: http://www.sharedata.co.za/data/000314/pdfs/palamin_ar_dec10.pdf [accessed 19 August 2012] • Rio Tinto (2010b), Palabora Mining Company Limited Sustainable Development Report 2010 [online] available at: http://www.riotinto.com/documents/Palabora_Sustainable_Development_Report_201 0.pdf [accessed 19 August 2012] • Rio Tinto (n.d), Palabora website, [online] available at: http://www.palabora.com/ [accessed 24 June 2012]

17" " ROCK STARS WANTED.

At Rio Tinto we believe that you learn by doing. So from day one, we’ll give you accountability and responsibility - whatever the role. Real work from the start, supported and developed by your teammates like Dillon here, so you can start your career as you mean it to go on.

Discover the opportunities available to graduates at riotinto.com/careers/graduates Mamatwan Manganese Mine By Nick van der Bij (Unfortunately we couldn’t visit Mamatwan due to issues at the mine)

Facts: Ownership: Samancor Commodity: Manganese Location: Hotazel, Northern Cape province Number of employees: 505 Mining method: Open Pit Annual mine production capacity: 2.1 Mt Production start: 1964 Processing: In-pit crushing, conveying, dens medium separation, sintering Product: Calcined/sintered Manganese ore Reserves (proven and probable): 300-400 Mt (30%-38% Mn)

Location: bearing layers of the Hotazel formation. The Mamatwan manganese mine is the This formation is Paleoproterozoic of age largest open-pit manganese mine in the and is unconformably overlain by up to 90 world and is located around 20 Km south meters of calcrete, sand and gravel of the of the town Hotalzel, in the southern part Kalahari formation. The thickness of the of the Kalahari manganese fields. ore layer varies between 30 and 49 meters at the mine location and dips approximately 8° to the west. Of these 30 Ownership: – 49 meters only the middle 15 meters are The mine is owned by Samancor, the of high enough grade to be mined South African Manganese Corporation economically. The ore is primarily Limited. Samancor is the world’s largest composed of microcrystalline and integrated producer of manganese and is carbonates such as Kutnahorite. 60% owned by BHP-Billiton and 40% by Anglo-American. Operations Mamatwan Mine is a conventional open-pit Geology: operation in which the overburden is The ore mined at the Mamatwan mine is removed to uncover the manganese part of the lowermost of three manganese orebody using a truck and shovel fleet.

18" " The orebody is then drilled and blasted upgraded by dens medium separation and and excavated in the same way as the sinter-roasted to produce a partially overburden. The ore is hauled by a fleet of reduced and calcined product. This end Caterpillar 777 dump trucks to an in-pit product had some big advantages over crusher, from where it is transported by natural ore when used is electric furnaces. conveyors to the stockpile. The ore is than

Sources:

Optimization of the loading and hauling fleet at Mamatwan open pit mine S.V. Mkhatshwa

Physical and chemical characterization of the manganese ore beds at Mamatwan mine, Kalahari Manganese fields http://www.bhpbilliton.com/home/businesses/manganese/Pages/default.aspx

19" " Black Rock Manganese Mine By Ruben Boeree

Facts: Ownership: Assmang Limited Commodity: Manganese Location: Hotazel, Northern Cape province Number of employees: Around 1500 permanent and 1000 contractors Mining method: Room and pillar mining Annual mine production: 3.2 million tonnes of ore Production start: 1975 Processing: Underground crushing and screening, surface crushing, washing, and screening Final product: Crushed manganese ore Resources (measured and indicated): 43.000 million tonnes (2010)

Location: The Gloria Mine is located close to the town of Hotazel in the Northern Cape province of South Africa, about 80 kilometers northwest of the town of Kuruman and 300 kilometers northwest of the provincial capital of Kimberley. The mine is owned by Assmang Limited, which was formed in 1935 and holding operations in iron, manganese and (ARM), who both hold 50% of the shares. chromium ores. The area around Hotazel Before 2001 the company was known by is called the Black Rock mining area, and the name The Associated Manganese has close to 10 manganese mines, mostly Mines of South Africa Limited. Production owned by different companies. At Black in the Nchwaning Mine commenced in Rock Assmang owns the Nchwaning 2 and 1975, and in the Gloria Mine in 1979. 3 mines and the Gloria mine. Geology: Ownership: The Kalahari Manganese Field covers a Assmang is jointly controlled by Assore surface of 40 kilometers long by 15 Limited and African Rainbow Minerals kilometers wide, in which approximately

20" " 80% of the world’s economic manganese Intermediate zones often have a very ores are located. The only outcrop is complex mineralogy, including Bixbyite, located at Black Rock, where the Braunite and . The ore body also formation was discovered. The ores are shows zoning in the vertical sense, with contained within sediments of the Hotazel high iron and low manganese contents at Formation of the Griqualand West the top and bottom of a seam, and Sequence, a subdivision of the Proterozoic increasing manganese content towards the Transvaal Supergroup. The average center. For this reason only around 3.5 thickness of this formation is around 40 meters in height of the ore body are meters, and it dips 7˚ to the south-west. mined. The degree of thrusting is much Due to thrusting the ore bearing lower at the location of the Gloria mine, formations have been duplicated, creating which explains the lower grade of the ore. three seams in which manganese minerals are found, with two main types of ore in Operations the main Kalahari Field Basin: The Nchwaning Mines and Gloria Mine & Medium grade sedimentary ore consist of a vertical hoisting shaft and an & High grade hydrothermally inclined shaft. Nchwaning 3 also has a enriched ore separate personnel shaft. The mining method used is room and pillar mining, with pillars of around 7x7 meters, and access rooms of 7 to 8 meters wide, and 3.2 to 3.5 meters high. Roof bolting is used to support the mine. Modern drilling and hauling equipment transports the ore to storage silos, primary crushers and screens which feed the hoisting system.

The ore is hoisted to the surface over a Over 200 mineral species have been distance of over 1.000 meters, where it is identified in the manganese ore bodies. As crushed again, washed and screened. The a result of hydrothermal upgrading, the final product is a manganese ore of 44% ore body can be divided into different Mn at the Nchwaning mines and 38% Mn mineral zones. The area’s close to fault at the Gloria mine. The ore is then positions exhibit a high-grade transported by rail to Hotazel and Port ore, while area’s further Elizabeth and distributed to costumers. away from the thrust faults contain the low-graded and Braunite ores.

21" " Future developments include an expansion which increases the processing capacity of the capacity on the long term up to 6 M from 3 to 6 million tonnes per year. The tonnes of ore. Recently 500 million Rand estimated lifetime of the operation is more was invested in a new processing plant than 70 years.

Sources: http://www.assmang.co.za/manganese_intro.asp http://www.arm.co.za/b/ferrous_manganese.php http://www.ambriefonline.com/nov_dec10%20cover.html

22" "

23" " Sishen iron mine

By Randy Calis

Facts

Ownership: Kumba Iron Ore Limited (member of the Anglo American plc. group) Commodity: Iron Location: Sishen mine is located in the Northern Cape Province, 30km from the mining town of Kathu. Workforce: 8277 Number of employees: 3865 Number of contractors: 4412 Mining method: Open Pit Annual production: ≈ 41Mt Operations started: 1953 First ore exported: 1976 Processing: Jigging & Dry Magnetic Separation Products: 25mm 65% Fe lump (DMS), 25mm 64% Fe lump (jig plant), 27mm and 20mm 66% Fe lump (niche products) and 8.0mm 64.5% Fe fines Resources (excluding reserves): 776.4Mt at 31 December 2011 Reserves: 983.9Mt at 31 December 2011 Life Of Mine: 21 years

Performance in the past five years: Units 2011 2010 2009 2008 2007 Total0tonnes0mined Mt 165.0 153.2 128.3 108.8 104.4 ROM0production 46.0 51.2 46.2 44.6 38.9 Waste0mined 119.0 102.0 82.1 64.2 65.5

Final0product Mt 38.9 41.3 39.4 34.0 29.7 DMS 25.4 28.0 29.0 28.4 29.5 Jig 13.5 13.3 10.4 4.7 0.2 Additional0initiatives – – – 0.9 I

Stripping0ratio Times 2.6 1.9 1.8 1.4 1.7 Cost0per0tonne R/tonne Total0cost 178.9 128.7 111.1 110.8 79.9

Revenue0contribution R0million 44,703 35,481 19,473 18,308 9,891 Capital0expenditure R0million 3,126 1,794 1,382 4,683 439 ROM (Run-Of-Mine – the raw mined material) DMS (Dry Magnetic Separation)

24" " Projects northern flank of the anticline where the Currently there are a few brownfields ore body is buried underneath younger expansion projects running, aiming to lithologies. The bulk of the ore body produce iron ore concentrate from the comprises high-grade, laminated and DMS and jig slimes which contain the massive ores which belong to the Asbestos discarded <2mm fraction. Hills Subgroup. As shown in table 2: Another project is aiming to produce Sishen’s lump to fine ratio is of the order additional product with a lower grade to of 60:40, while the global average is mine according to a larger optimized pit 30:70. This ensures that the ore highly shell, however using lower grade materials valued by steelmakers. can result in cases of waste being Table 2: Typical In-situ Grades reclassified as ore. SiO Al2O Ore type % Fe K2O P 2 3 Conglomerat Shareholders 18 62.2 5.3 2.9 0.28 0.055 ic and grit The Sishen Iron ore mine is for 74% Breccia 8 63.4 3.9 2.0 0.39 0.078 owned by Kumba Iron Ore Limited (for 2 65. 0.1 0.04 Massive 3.0 1.4 65% owned by Anglo American plc.), for 0 2 4 4 20% by Exxaro and the last 6% by SOIC Laminated 54 66.3 2.4 0.8 0.07 0.056 Community Development Trust & Envision Shareholders Geology The Sishen Iron ore mine is for 74% The ore is excavated from a large high- owned by Kumba Iron Ore Limited (for grade Haematite ore body, with the 65% owned by Anglo American plc.), for dimensions: 14km by 3.2km by 0.4km. 20% by Exxaro and the last 6% by SOIC The deposit is a part of several superior- Community Development Trust & Envision type banded iron formations (BIF) from the Transvaal Supergroup which crops out Resources along the western margin of the Kaapvaal The Sishen mine is kumba’s flagship craton in the Northern Cape Province. The operation and covers 73,9% of kumba’s formations of the Transvaal Supergroup resources. The significant (104.8Mt) consist out of clastic sediments of increase in the total resource estimation is Proterozoic age. At a regional scale these due to a reclassification of the resources formations are deformed into an anticlinal to an inferred status. This was done to structure (known as the Maremane reflect the low confidence in the historical anticline). The mine is located at the sampling.

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Table 3: Sishens resource (in addition to ore reserves) statement for 2011 compared with 2010 2011 2010 Resource Tonnage Grade (%Fe) Tonnage Grade (%Fe) category (Mt) Average Cut-off (Mt) Average Cut-off

Measured 111.1 61.3 40 127.0 59.4 40 Indicated 274.8 61.6 40 410.5 58.5 40 Inferred (considered for LOM) 173.4 49.1 40 17.9 59.7 40 Inferred (outside LOM) 217.2 53.8 40 116.2 59.6 40 Sub-total 776.4 56.6 40 671.6 58.9 40

Sources http://www.kumba.co.za/ob_sishen.php http://www.kumba.co.za/reports/kumba_ar2011/integrated/bus_rev_op_sishen.php http://www.exxaro.com/pdf/icpr/a/geology/iron.htm http://sioc-cdt.co.za/ "

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AD_SA Mining_0612_RSH.indd 1 10.05.12 13:43 Westonaria South Deep UG-Gold

By Tijs Peskens

Facts

Owner: Gold Fields

Production: 146 koz of Gold (2010)

Reserve: 39.6 Moz

Resources: 81.4 Moz

Mining Type: Underground

Mining Method: Mechanized stoping

Processing Method: SAG, leaching

Mine Life: until 2080

People employed 3700

Contractors working 35000

Licenses ISO 14001 & ICMI compliant

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Overview right are totals 4232ha. It is planned that South Deep will be able to mine 330 000 The South Deep Gold Mine is a key asset tonnes per month by 2015. At this for Gold Fields and the flagship growth production rate, South Deep may produce project in South Africa. South Deep's 700 koz per annum. It is currently production build-up is on track to deliver estimated that South Deep will be able to the required volume to achieve full maintain this profile until 2057, with the production by December 2014. end of life expected to be in 2080. Gold Fields holds 100% interest in GFI Geology and Mineralization Mining South Africa, which holds 100% interest in South Deep. South Deep is located in the Far West Rand Goldfields situated on the The mine is located in the Witwatersrand northwestern rim of the Witwatersrand Basin near the town of Westonaria, Basin. The Witwatersrand Basin comprises Gauteng Province, South Africa. It is a 6000 metre thick sequence called the approximately 45 km southwest of Witwatersrand Supergroup, which consists Johannesburg. Access to the mine is by of predominantly detrital sedimentary road. The nearest railway siding is at rocks interspersed sporadically with Westonaria. This is the urban area of auriferous and uraniferous quartz pebble South Africa. Transportation and services conglomerates, termed reefs, especially in are excellent. The mine is an intermediate the upper parts of the succession classified to deep level gold mine comprising two as the Central Rand Group. shaft systems, the older south shaft complex with it main shaft and two sub- Mining & Operation vertical shafts, and the newer complex South Deep is a fully mechanised known as Twin Shafts. This shaft is with operation (both stoping and 3200 meter the longest single drop in the development). The focus in the immediate world. The man cage moves at 15 m/s future with be on expediting development, while the skip travels at 18 m/s. Ore is assessing the ore body, completing the processed at a central metallurgical plant. Twin Shaft infrastructure and increasing The primary economic target is the Upper the rate of mechanised de-stress mining. Elsburg Reef package with the Mining methods used are Mechanised de- Vantersdorp Contact Reef being a stress and Mechanized stoping. secondary economic target. The mining Mechanised de-stress: At South Deep the

28" " main target horizon is the Upper Elsburg Processing Missives zone, but in order to extract this The milling circuit includes a semi- ground at depths which range from 2500m autogenous grinding (SAG) mill for primary to over 3500m below surface, the in situ milling and secondary milling conduced in rock stresses need to be reduced from an overflow ball mill, with classification 80mpa to between 30-40mpa. This done using a cluster of cyclones. The distressing is done every 17 metres. The recovery of free gold is achieved using two rock will think it is only 1000 metre thick Knelson concentrators, with the due to the lower stresses. This enables concentrate being tabled using a Gemini mining of large excavations at close Table in the smelthouse. The cyclone proximity to each other. Then the drifts overflow is thickened before the slurry will be made, with dimensions of 5.5 by 6 reports to the leach circuit. The leach metre. The Elsburg Missives are the main circuit has six mechanically agitated tanks target horizon and the extraction thereof is each with 3000 cubic meter volume.’ being done with the aid of mechanised equipment. The extraction is totally HSEC dependent on first having the de-stress in Gold Fields has embraced sustainable place. Methods for stoping include: Drift development as a business imperative, and bench mining, Longhole which is reflected in its vision, values and stoping, Mechanised VCR mining. During strategy. Gold Fields has introduced longhole stoping only 5 rings are blasted structures that encourage a networked at the same time. This to allow so checks interface between disciplines like safety, can be performed and adjustments will be health, environmental engineering, nature made if blasting has not been effective. environment, risk, stakeholder Backfill is used before going to the next engagement, legal and communication. stope. The cut-off grade of the South This approach has allowed Gold Fields to Deep min is 3.5 g/t. Their extraction rate capitalize on synergies and to avoid is 65% and the recovery up to 80 %. They duplication in the realm of sustainable mine at 70 euro a tonne. development.

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Geological profile

Mining sequence

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Sources http://www.infomine.com/minesite/south-deep.html http://www.goldfields.co.za/ops_south_deep.php http://www.goldfields.co.za/pdfs/technical_short_forms_2011/south_deep_mine.pdf presentations by Gold Fields, 19 July 2012

30" " Cullinan diamond mine By"Axel"Sanden"

(Sadly it was not possible for us to go down into the mine but instead we did a tour over the mine site)

Facts: Ownership: Petra Diamond limited 74%

Thembinkosi Mining Investments (Pty) Ltd: 14% Petra Diamonds Employee Share Trust: 12%

Commodity: Diamonds

Location: Cullinan, Gauteng province

Number of employees: 3.131

Mining method: Block Caving

Annual mine production capacity: 2,409,287 tonnes of ore ~ 927,931 Carats of diamond

Production start: 1903

Processing: Underground crushing, surface crushing, washing, and screening

Product: Diamonds

Resources (measured and indicated: 3.836 Mcts

Reserves (proven and probable): 132.984 Mcts

Ownership

31" " Location The mine is situated by the town of Cullinan, 40 kilometres east of Pretoria, Gauteng Province, South Africa. It is easily recognised by its distinctive and enourmous hole in the ground. The “Cullinan big hole.

Geology The ore body is a classical kimberlite pipe. The pipe is 1,180Ma old and the gabbro and gneiss inclusions. The third phase is 75 m thick sill that cuts the cimberlite at an intrusion into the western part of the 350 m in two is 1,115Ma old. The Cullinan pipe. This is black hypabyssal facies kimberlite is the most important pipe of kimberlite. Later the diatreme was twelve Group I kimberlite pipes in South intruded by carbonatite dykes. Africa. It is also the largest diamondiferous Operations kimberlite in South Africa with a cross- Cullinan mine is a former open pit sectional area of 32ha. The vertical operation, and is currently a classic block diatreme goes till a depth of 550m and caving operation. At the moment the mine from there it splits in to roots. The planning is mine the ore till a depth of is producing the BA5 BB1E, the AUC and 1000 metres is reached, which means that the BB1E block. And is developing the they are planning to mine till 2030. Plans BAW( see picture on the right side). After to extend the mine beyond that phase are that they will start to develop and produce still in the make. the C cut which is expected to contain 133Mcts. The diatreme is of complex structure and The haulage is done by means of LHD and was formed three distinct phases, each transported to the surface by shaft. When producing a different facies of kimberlite. it arrives at the surface it is directly The first phase produced the diatreme washed to recover the large diamond filled with brownish tuffisitic kimberlite gems. The remaining large rock fraction is breccia (TKB). The second phase fed to a closed crushing and sreening reactivated the diatreme and created a operation. The output of this system are center of grey TKB, which contains the smaller diamonds and the tailings, Waterberg quartzite, basement granite which dumped in open pit mine.

32" " Sources http://www.petradiamonds.com/operations/operating-mines/cullinan.aspx http://www.showcaves.com/english/za/mines/Cullinan.html

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