Modern Mining April 2019

April 2019 Vol 15 No 4 www.crown.co.za M ODERN MINING

MODERN M I N I N G

CONTENTS

APRIL 2019

ARTICLES

COVER 18 AEL Intelligent Blasting expands growth in the international arena MINERAL SANDS 22 Base “delighted”with results of Toliara study COAL 26 Sasol opens Impumelelo FEATURE: MODULAR PLANTS 30 MET63 takes modular plants to new heights 34 APT thrives in a downturn COMPANIES 40 Substance abuse poses major problems for mining sector REGULARS Wood Group to undertake PFS on Longonjo 10 T3 Feasibility Study delivers“compelling results” 10 Another accolade for Wits Mining School 13 Nordgold to continue investing in Burkina Faso 14 Bauxite project achieves construction milestone 15 Phase 1 of Makhado coal project approved 16 Coal miner launches educational programme 16 Magnum launches second stage of trial mining at Gravelotte 17 Run of big stone recoveries at Mothae continues PRODUCT NEWS 44 Osborn apron feeder for Cullinan 44 Multifab delivers mobile stations to Botswana mine 45 Pre-bagged products for the mining sector 46 Companies combine to create powerful new brand 47 Top-of-the-line excavator proves popular 48 Mato makes its mark in belt cleaners 50 Condra crane and hoists delivered to bauxite project 50 Metric offers latest deposition technology 51 Dry-type transformers prove their worth 52 VDM Plant Hire opts for Hyundai excavators MINING NEWS 4 Solid progress on Platreef project during 2018 5 6 7 8 9 Rio Tinto approves US$463 million Zulti South mine Ity CIL project achieves commercial production FLSmidth doubles up in Delmas B2Gold embarks on Fekola expansion

Editor Arthur Tassell Advertising Manager Bennie Venter e-mail: benniev@crown.co.za Design & Layout

Darryl James Circulation Brenda Grossmann Publisher Karen Grant

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Deputy Publisher Wilhelm du Plessis Printed by: Shumani Mills Communications

The views expressed in this publication are not necessarily those of the editor or the publisher. Published monthly by: Crown Publications cc P O Box 140, Bedfordview, 2008 Tel: (+27 11) 622-4770 Fax: (+27 11) 615-6108 e-mail: mining@crown.co.za www.modernminingmagazine.co.za

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Publisher of the Year 2018 (Trade Publications)

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Cover An AEL Mobile Manufacturing Unit (MMU). See page 18 for a full story on how AEL Intelligent Blasting (AEL) has redesigned its business to recharge its position in the mining industry.

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Average circulation (October–December 2018) 5047

April 2019  MODERN MINING  1

COMMENT

New projects a shot in the arm for embattled mining industry

I t’s common cause that the past several years have been among the most difficult ever encountered by the mining industry in the Southern African region. In par- ticular, there’s been a dearth of the type of big capital projects that sustain the many companies that provide services and equip- ment to the mining sector – from big EPCM contractors at one end of the spectrum to the suppliers of dump trucks, drill rigs and roof bolters at the other. Although it would be premature to say that this situation is reversing, there’s certainly been some encouraging announcements on new projects recently that suggest that mining companies are starting to regain an appetite for investment in ‘greenfield’ mines or in the expansion or extension of existing operations. Top of the list is the long-awaited Cut-9 project at Debswana’s flagship Jwaneng dia- mond mine in Botswana, which has now been launched and which will extend the mine’s life to 2035 (see page 9). Debswana will be investing a mammoth US$2 billion over the life of the project, which is primarily a huge earthmoving exercise. The mining contract has been awarded to the Majwe Joint Venture, a partnership between Thiess, part of the CIMIC Group, and its long-time partner in Botswana, Bothakga Burrow Botswana. Majwe, which used to include Basil Read Mining, was respon- sible for Cut-8 at Jwaneng. A second big project which has recently been announced and which is due to kick off in the middle of this year is Zulti South (see page 5) in South Africa. This new mine will cost US$463 million to develop and will ensure that Richards Bay Minerals (RBM), majority- owned by Rio Tinto, can sustain its mineral sands business into the future. RBM’s operations started up in the mid- 1970s and the company’s activities are now crucial to the economy of the Richards Bay area, and indeed of KZN, so the news of this major investment will, I think, be widely wel- comed. Certainly Gwede Mantashe, Minister of Mineral Resources, has responded positively to the announcement, saying recently that the decision to go ahead with Zulti South was an affirmation of South Africa’s attractiveness as an investment destination (although I think there are many in the mining community who would not entirely agree with this assessment). Moving back to Botswana, US-based Cupric Canyon has said that it has secured funding for its Khoemacau copper/silver project in the

Kalahari Copperbelt, a story which we reported on in our March issue. The company intends spending nearly US$400 million to get the first phase of development – what it calls the ‘Starter Project’ – off the ground and intends following up with a second phase which will see ore pro- duction increase from 3,6 Mt/a to 5,8 Mt/a. As I mentioned in this column three months back, Khoemacau – which will be an under- ground operation – is likely to be joined by a second mine in the Kalahari Copperbelt, the T3 open-pit project of MOD Resources which will involve a capex of US$142 million. MOD – which has just completed a Feasibility Study on T3 (see page 10) – has not yet given formal approval to T3 but there seems little doubt that it will be going ahead. MOD, in fact, is talk- ing of being in production in 2021, which is the same year that Khoemacau should com- mission. Between them the two mines will have an initial annual production of around 90 000 tonnes of copper. Apart from Zulti South, I’m not aware of any other major projects in South Africa that have been approved within the last few weeks but there are several significant projects that could get the nod within the next few weeks or months. These include Phase 2 of the Gamsberg zinc mine in the Northern Cape, likely to cost in the region of US$400 million, and the main shaft (Shaft 2) of the Platreef project in Limpopo Province, which will involve a very major investment – quite how much, I’m not certain – by Ivanhoe Mines and its partners. There are also a couple of Exxaro projects, nota- bly the R3,2 billion Thabametsi coal project in the Waterberg and the R1,8 billion relocation of Mine 1 of the Matla coal mining complex, which could possibly move into execution. The projects I’ve mentioned above col- lectively add up to well over US$3 billion. On their own, they’re not enough to signify a strong upturn in mining but they’re very wel- come nonetheless and are, hopefully, a pointer to better times ahead. The upcoming developments in Botswana are particularly exciting, given the bleak times that country’s mining industry has experienced in recent years, notably the closure of all BCL’s operations in Selebi-Phikwe and at Tati Nickel and the consequent loss of thousands of jobs. With Cut-9 and Khoemacau both now enter- ing implementation, and T3 looking like a sure thing, the future of mining in the country is looking brighter than it has for years. Arthur Tassell

The upcoming developments in Botswana are particularly exciting, given the bleak times that country’s mining industry has experienced in recent years.

April 2019  MODERN MINING  3

MINING News

Solid progress on Platreef project during 2018

Reporting on its Platreef project near Mokopane in Limpopo Province in its recently released 2018 full-year results and review of exploration and development activities, TSX-listed Ivanhoe Mines says that Shaft 1 reached the top of the high- grade Flatreef deposit (T1 mineralised zone) at a depth of 780,2 m below surface in Q3-2018 and has since been extended to the 850-m level with the 850-metre- level station development underway. The thickness of the mineralised reef (T1 & T2 mineralised zones) at Shaft 1 is 29 m, with grades of platinum group metals ranging up to 11 g/t 3PE (plati- num, palladium and rhodium) plus gold, as well as significant quantities of nickel and copper. The 29-m intersection yielded approximately 3 000 tonnes of ore, esti- mated to contain more than 400 ounces

of platinum group metals. The ore is stock- piled on surface for metallurgical sampling. The 750-metre-level station, including the steelwork and concrete construction, was successfully completed in Q4-2018. The 750-metre-level and 850-metre-level stations will provide initial underground access to the high-grade orebody, enabling mine development to proceed during the construction of Shaft 2. As sinking of Shaft 1 advances, one more station will be developed at a mine working depth of 950 m. Shaft 1 is expected to reach its projected final depth of 982 m below surface in early 2020. Shaft 1 ultimately will become the primary ventilation shaft during the project’s initial 4 Mt/a production case. The Platreef ’s second major shaft, Shaft 2, is to be located approximately

100 m north-east of Shaft 1. It will have an internal diameter of 10 m and will be lined with concrete and sunk to a planned, final depth of more than 1 104 m below sur- face. It will be equipped with two 40-tonne rock-hoisting skips capable of hoisting a total of 6 Mt/a – the single largest hoisting capacity at any mine in Africa. The headgear for the permanent hoist- ing facility was designed by Murray & Roberts Cementation. Nine blasts were successfully completed in 2018 enabling the excavation of Shaft 2’s boxcut to a depth of approximately 29 m below sur- face and the construction of the concrete hitch (shaft collar foundation) for the 103-m tall concrete headgear that will house the shaft’s permanent hoisting facil- ities and support the shaft collar. Excavation of the boxcut and construc-

Construction in progress on the foundation that will support Shaft 2’s 103-m tall concrete headframe (photo: Ivanhoe).

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MINING News

tionofthehitchfoundationareexpected to be completed in Q2-2019, enabling the beginning of the pre-sink that will extend 84 m below surface. Ivanhoe plans to develop the Platreef mine in phases. The initial annual production rate of 4 Mt/a is designed to establish an operating platform to support future expan- sions. This is expected to be followed by a potential doubling of production to 8 Mt/a, and then a third expansion phase to a steady-state 12 Mt/a, which would establish Platreef among the largest PGM mines in the world. The mining zones in the current Platreef mine plan occur at depths ranging from approximately 700 m to 1 200 m below surface. Shaft 2 will provide primary access to the mining zones; secondary access will be via Shaft 1. During mine production, both shafts will also serve as ventilation intakes. Three additional ventilation exhaust raises are planned to achieve steady-state production. Planned mining methods will use highly productive, mechanised methods, including long-hole stoping and drift- and-fill mining. Each method will utilise cemented backfill for maximumore extrac- tion. The ore will be hauled from the stopes to a series of internal ore passes and fed

On-going development work at Shaft 1’s 850-metre-level access station, showing the northern top-cut excavation (photo: Ivanhoe).

150 000 people, project employees and local entrepreneurs. A Japanese consor- tium of ITOCHU Corporation, Japan Oil, Gas and Metals National Corporation and Japan Gas Corporation owns a 10 % interest in Ivanplats, which it acquired in two tranches for a total investment of US$290 million.  strong returns to our shareholders.” Rio Tinto Energy & Minerals Chief Executive Bold Baatar said: “RBM is an outstanding business, South Africa’s larg- est mineral sands producer and, equally importantly, a fully beneficiated metal- lurgical complex. We not only mine, but produce value-added products for cus- tomers around the world. We are proud of the value we create, and retain, in South Africa. This is underscored by our position as KwaZulu-Natal’s leading tax- payer, paying US$79 million in taxes and royalties in 2018 alone. “Our investment in Zulti South will ensure we maintain our contribution to the province andour partner communities. Wewant to recognise the support fromthe Government of South Africa, the KwaZulu- Natal provincial leadership and, most importantly, the invaluable support of our host communities – Mbonambi, Sokhulu, Mkhwanazi and Dube – in securing the future of this world-class business.” 

to the bottom of Shaft 2, where it will be crushed and hoisted to surface. The Platreef project is owned by Ivanplats (Pty) Ltd, which is 64 %-owned by Ivanhoe Mines. A 26 % interest is held by Ivanplats’ historically-disadvantaged, B-BBEE partners, which include 20 local host communities with approximately

Rio Tinto approves US$463 million Zulti South mine Rio Tinto has approved the next stage in the development of Richards BayMinerals (RBM) in South Africa through the con- struction of the Zulti South project. The US$463million (Rio Tinto share US$343 million) investment will sustain RBM’s cur- rent capacity and extend mine life. The investment will be fully self-funded from RBM’s cash flows, with no additional debt or recourse to Rio Tinto. The project is expected to deliver an internal rate of return of 24 % (Rio Tinto share).

Commenting on the decision to pro- ceed with Zulti South, Rio Tinto Chief Executive J-S Jacques noted that Rio Tinto had a long history in South Africa and said the investment underscored the group’s commitment for the coming decades and beyond. “Zulti South is one of the best unde- veloped minerals sand deposits in the industry, and will significantly extend RBM’s position as a world-class, first- quartile asset,” he said. “The long-term fundamentals of the market remain strong, and production from Zulti South will commence in time to fill a widen- ing supply gap, ensuring RBM’s position as a leader in the sector, and delivering

RBM currently operates four mines in the Zulti North lease area, a mineral separation plant and smelting facility. The Zulti North orebody grade is declin- ing and hence the Zulti South mine is required to maintain the output of high- margin zircon and rutile, and provide sufficient ore to support TiO 2 sales. The Zulti South mine (Phase 1) will underpin RBM’s supply of zircon and ilmenite over the life of mine. Construction is scheduled to start in mid-2019, subject to the granting of all necessary permits, with first commer- cial production expected in late 2021.

April 2019  MODERN MINING  5

MINING News

Ity CIL project achieves commercial production

minimal cost of US$10-15 million. The vol- umetric upsize work mainly comprises an upgrade in pipes and pumps, and a second 50-tonne oxygen plant with no addi- tional mining fleet required. These plant upgrades are expected to be completed during scheduled plant maintenance shut- downs throughout the next six months. 

Endeavour Mining Corporation, listed on the TSX, has announced commercial production at its Ity CIL project, in Côte d’Ivoire, at its full nameplate capacity fol- lowing a quick ramp-up phase. Sébastien de Montessus, President and CEO, stated: “I would like to congratulate the entire team for their hard work in help- ing us achieve this major accomplishment for Endeavour. Achieving commercial production at the Ity CIL project marks a transformational moment in our history and an inflection point as we significantly increase our free cash flow capabilities.” The Ity CIL project began processing ore on February 20, 2019 and achieved its first gold pour – which yielded approximately 1 800 ounces of gold – on March 19, 2019. Its performance trial testing was recently successfully completed with all key metrics meeting prescribed targets: a processing rate exceeding 11 100 tonnes per day, an overall plant availability of 96 %, and a gold recovery rate of 94 %. Ity is expected to produce 160-200 koz in 2019 at an AISC of US$525-590/oz, with the bottom-end of the production guidance corresponding to the 4 Mt/a

nameplate capacity while the top-end already factors in upsides such as an ear- lier start date, an expedited ramp-up and the plant producing above its nameplate. Endeavour has launched optimisa- tion and de-bottlenecking work which is expected to increase the plant name- plate capacity by 1 Mt/a to 5 Mt/a, at a

Celebrating the Ity CIL project’s first gold pour (photo: Endeavour Mining).

A recent view of the Ity CIL site (photo: Endeavour Mining).

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MINING News

FLSmidth doubles up in Delmas

“This expansion is a vote of confidence in the specialised knowledge embedded in this facility, which makes an important contribution to sustaining technical skill levels in South Africa.” He emphasises the company’s com- mitment to safety, reflected in the Supercenter’s enviable record of just one lost-time injury since operations began over five years ago. Strict quality control is governed through the ISO 9001 standard and careful environmental management by ISO 14001 with safety to OHSAS 18001. “FLSmidth’s commitment to continuous improvement is also embodied in this facil- ity,” he says. “We are now in an even better position to play a role in value engineering for the group, particularly in our vibrating equipment and screens.” In line with the company’s corporate social responsibility, the construction activities last year reached out to local small businesses, he adds. Some 5 % of the value of the total budgeted spend was allocated to these firms, ensuring that they benefitted directly from the expansion. 

The formal opening in early April of FLSmidth’s expanded facilities at its Delmas Supercenter in Mpumalanga is good news for customers, while boosting the engineering capability of the South African economy. Acco rd i ng t o S t ephan K r uge r, FLSmidth Director for Manufacturing and Warehousing in the region, the added capacity of the facility will further con- tribute to the group’s productivity and customer service while improving stock availability and lead times. The facility is now double the size it was a year ago, with a total of 10 500 m 2 under roof and under crane. The workshop is one of fewer than 10 % of facilities countrywide that boasts a 120-tonne lifting capacity with 11,5 m under crane hook. “The expansion is aligned with our corporate mission to provide sustain- able productivity enhancements for our customers,” says Kruger. “It raises our engineering capability to support local

customers, while also improving our effi- ciencies to compete globally in certain lines of products.” The Delmas facility engineers compo- nents for FLSmidth equipment, as well as whole assemblies and complete equip- ment. The addition of new manufacturing equipment in the workshop – including CNC-controlled six axis machines – will increase the range of items that can be machined on site. The work process has also been optimised to promote quality, reliability, efficiency and cost effectiveness. The facility’s services include refur- bishment, retrofitting and upgrading of existing equipment. It also holds substan- tial strategic stocks of spare parts such as exciter gearboxes, rotors and stators, as well as wear parts such as screen panels. “The FLSmidth Delmas Supercenter is a world class OEM facility that consolidates and grows specialist expertise within the South African market, creating exciting opportunities for the future,” says Kruger.

The ribbon-cutting ceremony at the opening of the FLSmidth Supercenter (photo: FLSmidth).

April 2019  MODERN MINING  7

MINING News

B2Gold embarks on Fekola expansion

up to approximately 76 Mt/a to support the increased processing and stockpiling necessary to maintain plant feed grade. Staged mining fleet additions totalling approximately US$56 million over the LoM are expected to be equipment loans/lease financed over respective five-year periods, on terms similar to the existing Fekola fleet loan/lease terms. The current mining fleet consists of four Caterpillar 6020B excavators with haul trucks, drills, and support equipment to match, andmines an average of 36 Mt/a. Increased production will be achieved with the addition of two to four excavators with corresponding trucks, drills and sup- port equipment. Large front-end loaders would also be included to maintain fleet flexibility. During the expansion study, other upside opportunities were identified and are currently under review. These will be incorporated into an updated Fekola LoM plan when related studies are complete and if they show an increase in overall project value. Upside opportunities identified to date include renewable energy (focused on a solar plant), alternative tailings storage (co-disposal, paste, dry stack and others), waste mining (various fleet options vs in-pit crushing and conveying) and the potential incorporation of material from the nearby Anaconda mineral resource. 

Canada’s B2Gold Corp has announced very positive results from the Expansion Study Preliminary Economic Assessment (PEA) for its Fekola mine in Mali and says it is pro- ceeding with the expansion project, which will see processing throughput increased by 1,5 Mt/a. The Expansion Study PEA was con- ducted to evaluate the life-of-mine (LoM) options for expanded mining and pro- cessing to maximise the value of the substantially increased indicated and inferred mineral resource at the Fekola mine, announced in October last year. The study recommends an expansion of the existing plant to process an additional 1,5 Mt/a, resulting in a baseline capacity of 7,5 Mt/a without requiring an additional ball mill or additional power generation capacity. Based on the new optimised mine plan, the mining rate at Fekola will also be increased, along with additional mining equipment to accelerate the sup- ply of higher-grade ore to the expanded processing facilities. As a result of the project and mineral resource expansion, Fekola will – says B2Gold – produce more gold over a longer life, withmore robust economics and higher average annual gold production, revenues and cash flows, than the previous LoM. Assuming an effective date of 1 January

2019, a gold price of US$1 300/oz and a discount rate of 5 %, highlights from the Expansion Study PEA include an esti- mated optimised LoM through to 2030. The project will result in an increase in average annual gold production to over 550 000 ounces per year during the five- year period 2020-2024 and over 400 000 ounces per year over the LoM (2019-2030). The forecast LoM pre-tax net cash flow is estimated at approximately US$2,8 bil- lion while the forecast LoM pre-tax net present value is over US$2,2 billion. Revised projected LoM cash operating costs and all-in-sustaining-costs (AISC) remain low at below US$500 and US$700 per ounce respectively, despite mining a larger open pit at slightly lower gold grade. This is due to economies of scale arising from increasedmining and process- ing rates and the new optimised mining schedule. The capital cost of the plant expansion is estimated at approximately US$50 million over a period of approximately 18 months. Half of this capital is expected to be spent in 2019 with the remaining half in 2020. It is anticipated that this will be financed from existing Fekola mine cash flows. The projected annual mining rate will increase to a baseline of approximately 54 Mt/a and will subsequently be stepped

The Fekola processing plant, seen here, is to be expanded to process an additional 1,5 Mt/a (photo: B2Gold).

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MINING News

Wood Group to undertake PFS on Longonjo

Following the recent mineral resource upgrade at its Longonjo NdPr project in Angola, ASX-listed Pensana Metals has appointed the international engineer- ing company Wood Group to execute a Preliminary Feasibility Study (PFS) for the expedited development of the project. The study will focus on the delivery of an open-pit mine and 1,5 Mt/a flota- tion operation producing 95 000 tonnes of NdPr ((neodymium/praseodymium) concentrate for export to China via the recently upgraded Benguela rail line and the Atlantic deep-water port of Lobito. The project lies just 4,3 km from the sealed national highway and rail line that run from the port at Benguela, 200 km to the west, to the provincial capital of Huambo, 60 km to the east. Discussions with potential financiers have commenced and it is expected that a financing package will be finalised to coincide with the completion of the PFS (scheduled for September 2019). Pensana is of the view that given the work that has been completed to date and the relative simplicity of the operation, it should be possible tomove immediately to Front End Engineering Design (FEED) and Engineering Procurement Construction Management (EPCM) following the com- pletion of a favourable PFS. “The development concept is very straightforward,” commented Dave Hammond, Chief Operating Officer of Pensana. “We are looking at a low capital cost, shallow open-pit and flotation opera- tion producing a high-grade concentrate

for export to China via the adjacent major rail and port infrastructure.” He added t ha t t he r e cen t l y s ub s t an t i a l l y increased mineral resource e s t ima t e ha s enab l ed Pensana to bring forward the PFS. “Our aim is to get into production and build our customer base at a time when EV and wind turbine manufacturers are driving the increasing demand for NdPr magnets for electric motors and Chinese rare earth processors are looking for additional low-cost feed- stock,” he said. I n i t i a l deve l opment studies will focus on the highest grade and qual- ity portion of the mineral resource estimate – the near surface weathered zone mineralisation.

Dave Hammond, COO and Chief Geologist of Pensana, at site, standing on top of a visible outcropping of NdPr ore (photo: Pensana).

The weathered zone consists of a thick blanket of soft, friable NdPr mineralisation that occurs over an area of approximately 700 x 700 m to typical depths of 20 m. Such material is amenable to ’free-dig’, shallow open-pit mining with a very low waste to mineralisation ratio. Pensana has already demonstrated an effective processing route for this style of mineralisation to produce a high-grade mineral concentrate using flotation tech- niques. The company is working with

Chinese technical institutes to further opti- mise the concentrate production process flowsheet. The high-grade weathered zone subset represents less than 10 % of the total min- eral resource estimate and at a 0,65 %NdPr lower cut-off includes 22,9 Mt at 4,16 % REO (Rare Earth Oxide). Subsequent studies will focus on an expansion of this initial operation to treat additional NdPr mineralisation from this large deposit.  ment maintenance, load and haul, and mining operations. This new volume-based contract follows Majwe’s successful com- pletion of the Cut-8 project at Jwaneng in November 2018. Bruce Cleaver, Chairman of Debswana, said: “The extension of Jwaneng mine secures Botswana’s rightful place as a lead- ing diamond producing nation for years to come. With global consumer demand for diamonds reaching record levels in 2018, the extension will enable us to continue to meet the needs of our consumers all over theworld.We are deeply proud of the central role Jwaneng mine has played in Botswana’s remarkable development story and of the role this investment will play in its future.” 

Giant Cut-9 project at Jwaneng diamond mine kicks off The Debswana Diamond Company (Deb­ swana), a 50/50 joint venture between the Government of Botswana and De Beers Group, has announced the commencement of the Cut-9 project to extend the life of Jwaneng, one of the world’s most valuable diamond mines. ment to the future of Botswana’s diamond industry. The shareholders of Debswana have approved the budget for 2019 so that the next phase of work can commence.

Atitspeak,Cut-9isexpectedtocreatemore than 1 000 jobs, the majority of which will be heldby Batswana citizens. A local contract has also been awarded by Debswana to Majwe Mining, a joint venture between Bothakga Burrow Botswana and Thiess Botswana, to provide diamond mining services. The value of the contract is US$1,2 billion. Majwe will provide full scope mining services over nine years, including drill and on-bench services, mine planning, equip-

The project will extend the life of Jwa­ neng to 2035 and is expected to yield an estimated 53 million carats of rough dia- monds from 44 million tonnes of treated material. Debswana will invest approximately US$2 billion over the life of the project, underpinning the partnership’s commit-

April 2019  MODERN MINING  9

MINING News

T3 Feasibility Study delivers “compelling results”

potential deposits in the sur- rounding area, where MOD has already demonstrated early drill- ing success. Drilling is expected to focus on this satellite potential during 2019 to take advantage of the capital invested into T3.” The T3 project, which is 100 %-owned by MOD, is a signifi- cant new sediment-hosted copper and silver deposit in the under- explored Kalahari Copperbelt in Botswana. Over the past three years, MOD has progressed T3 from the discovery drill hole, announced in March 2016, to

Process plant layout (developed for FS).

completion of the FS. The FS has identified that the T3 project is underpinned by strong fundamentals including an orebody geometry that facili- tates a simple, six-stage, open-pit design and metallurgy that requires a relatively moderate capital investment, producing high-grade copper concentrates. It is envisaged that mining will be undertaken by a contractor using conven- tional equipment to support an average annual mining rate of 3,0 Mt/a of ore with a LoM strip ratio of 5,7 to 1. Load and haul would utilise 120-250 tonne excavators and 140 tonne capacity haul trucks mining on approximately 2,5 m-high flitches in ore zones and approximately 3,5 m-high flitches in bulk waste zones. Pit dewater- ing is expected to be minimal and will be managed by a collection of external dewatering and depressurising bores (if

MOD Resources, listed on the ASX and LSE, has announced what it describes as the “compelling results” of the completed Feasibility Study (FS) for the T3 copper project in Botswana. The project will com- prise an 11,5-year open-pit mine, a 3 Mt/a conventional processing plant and all asso- ciated infrastructure. The FS estimates a Life of Mine (LoM) revenue of US$2,3 billion and EBITDA of US$1,1 billion, an NPV (pre-tax) of US$368 million and an IRR of 33 %, based on a long- term consensus copper price of US$3,08/ lb Cu and an 8 % real discount rate. The project would generate pre-tax free cash flows of US$777 million, inclusive of devel- opment capital. LoMAll-In Sustaining costs (AISC) are estimated at US$1,56/lb Cu after deducting silver credits “The strong economics clearly demon- strate the value of this high-quality asset

located within the excellent mining and investment jurisdiction of Botswana,”com- ments Julian Hanna, MD of MOD. “There are a number of outstanding operational and financial outcomes of the Feasibility Study; however, several stand out when compared to other emerging global cop- per developers and producers. “Firstly, the T3 project represents a rela- tively straightforward open-pit mine and processing plant, requiring moderate cap- ital expenditure to bring into production. Then, due to the very favourable geome- try, grade and metallurgical characteristics of the orebody, the Feasibility Study has demonstrated that even at copper prices much lower than today’s spot price, the T3 copper project is expected to generate excellent returns. “T3 also provides the possibility for future production expansion from other

Another accolade for Wits Mining School The National Research Foundation (NRF) has bestowed another accolade on the School of Mining Engineering at Wits University by awarding a C2 rating to staff member Professor Rudrajit Mitra. Professor Mitra, who is Associate Professor and Centennial Chair of Rock Engineering, is now one of four academ- ics in the school who hold this level of professional recognition. All four are

Professor Stacey, Professor Cuthbert Musingwini and Professor Fred Cawood are the other three NRF-rated researchers at the Wits Mining School. Professor Mitra’s award comes on the strength of 112 research outputs over the past eight years – including five book chapters, 37 journal articles and 49 conference papers. As a lecturer, he has also supervised or co-supervised 11 PhD students to graduation, two Masters students and 67 Honours students. The NRF’s C2 ranking recognises “established researchers with a sustained recent record of productivity in their chosen field” and who are judged by their peers as having produced“a body of quality work …which … attests to ongoing engagement with the field.” In a rigorous process involving the applicant, the university, the NRF and a range of international reviewers, the impact of the research generated by Professor Mitra was assessed by experts from around the world. 

based at Wits Mining School, making it the only mining school in South Africa with NRF-rated academics. “I feel really honoured to be rated at C2 level by the NRF, espe- cially in my field of rock mechanics,” said Professor Mitra. “I am humbled to be in the company of great academics in rock mechan- ics such as Professor Dick Stacey, for instance.”

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MINING News

SRK appointment SRK Exploration Services has appointed John Paul Hunt as its local manager, representing the Cardiff-based company in close collabo- ration with the SRK Consulting (SA) office in Johannesburg. Hunt has joined SRK Exploration Services from the Council for Geoscience as a Senior Exploration Geologist. He is an economic and exploration geologist with over 15 years’ experience in grassroots to brownfields target generation and exploration. He has worked extensively in sub-Saharan Africa and Scandinavia, primarily engaged with base/ precious metal magmatic sulphide depos- its, orogenic/placer gold, and mineralisation related to magmatic-hydrothermal systems. His career has involved planning and exe- cuting exploration programmes at all stages from target generation to evaluation. SRK Exploration Services is a discipline-led practice within the global SRK Group, which supports prospecting and mining companies from the idea stage through to the definition of mineral resources. 

a primary crusher/SAG/ball mill commi- nution circuit to achieve a grind size of P80 180 µm, a natural pH flotation circuit, rougher flotation with a regrind circuit to achieve a grind size of P80 90 µm and a cleaner flotation circuit. LoM metallurgical recoveries of 92,9 % copper and 88,0 % silver are envisaged, producing a concentrate with grades that peak at 34,7 % Cu and 601 g/t Ag, averag- ing 30,4 % Cu and 383 g/t Ag. Average annual production over the life of mine is expected to be approxi- mately 28 kt of copper and 1,1 Moz of silver. However, for the first seven full years of production (between 2021 and 2028), plant throughput, feed grades and recov- eries are expected to be higher than the LoM average and support copper produc- tion averaging over 30 kt. The current estimated direct and indi- rect capital cost for the establishment of the mine, the construction of the pro- cess plant and associated infrastructure is US$142 million (excluding mining pre-strip costs). 

required) and in-pit sumps for use within the mining operation Pre-strip activities are expected to com- mence during the first half of 2020 and ore from the first stage of the open pit is targeted to be processed during the first quarter of 2021. The bulk of waste move- ment is expected between 2020 and 2024, resulting in a higher strip ratio during these early years. Following this, the strip ratio will reduce to an average of 2 to 1 and mining costs should follow this general downward trend. The open pit is located less than 1 km from the process plant. Ore will be either directly fed into the primary crusher or directed to a ROM stockpile, providing surge capacity and the opportunity for ore blending. The T3 orebody is comprised of met- allurgically favourable chalcopyrite, bornite and chalcocite. Ore will be pro- cessed through a conventional process plant with an annual throughput of up to 3,2 Mt at a head grade of 1,0 % copper and 13,2 g/t silver. The flow sheet includes

April 2019  MODERN MINING  11

MINING News

Nordgold to continue investing in Burkina Faso

Nord Gold SE (Nordgold), the internation- ally diversified gold producer, reports that it more than doubled capital expenditures in the development of its three mines in Burkina Faso to over US$145 million in 2018 from US$62 million in 2017, high- lighting its status as one of the country’s largest gold producers and a major eco- nomic contributor to the country and local communities. “Since 2009, we have invested over

optimal production in 2019 and beyond,” adds Louw Smith, Nordgold’s COO. “Last year regional exploration programmes yielded promising satellite targets for Bissa and Taparko. We have also acquired a number of exploration licences that have the potential to increase the life of mines of Bissa and Bouly. “Our continued investment in new equipment and state-of-the-art technolo- gies also serves to improve safety as well

as operational performance. Investment programmes will continue this year in order to maximise the true potential of our outstanding assets in the country.” Nordgold operates three mines in Burkina Faso: the Bissa and Bouly mines, which were built by the company in 2013 and 2016 respectively, and the Taparko mine, acquired in late 2008. Together, these mines account for approximately 40 % of Nordgold’s total annual production. 

US$1 billion into Burkina Faso,” comments Nikolai Zelenski, CEO of Nordgold. “The launch of the Bouly mine in 2016 confirmed our position as the second larg- est gold producer in the country, with total production of over 360 000 ounces per year. We will maintain this level of investment in 2019, highlighting our con- tinued commitment to Burkina Faso, where have established ourselves as significant employ- ers, large contributors to the local economy and also a major tax- payer. We are confident this next phase of investment will generate benefits for all our stakeholders, both in Burkina Faso and to our shareholders.” “2018 has seen considerable investment in extensive waste stripping activities, meaning our operations are best placed for

The Bouly gold mine, which was commissioned in 2016. An open-pit, heap leach operation which produced 124 koz in 2017, Bouly is located within 5 km of Nordgold’s Bissa mine (photo: Nordgold).

Palabora Mining awards ventilation shaft contract Murray & Roberts Cementation has been awarded a contract by Palabora Mining Company (PMC) for a 1 200-m deep venti- lation shaft.

for the winder, headgear and other site con- struction. Shaft drilling itself will be done with two twin-boom Komatsu shaft drill rigs and mucking by a Komatsu excavator with close to a ton of loading capacity. “Ground conditions are expected to be a challenge in some areas, as profiled from the cover and core drilling,”says Blom. “However, we have various ways of reduc- ing the risk and downtime during these intersections – such as keeping the shaft lining as close as possible to the shaft bottom.” Blom notes that the company con- tinuously improves performance based on lessons learnt from its wealth of pre- vious projects. This allows a constant focus on securing safe, sustainable and efficient shaft sinking to deliver on the completion target. 

to March 2020. This will facilitate the slow sink to 200 m and the main sink until February 2022. Canadian shutter and lin- ing methods will be employed. The team is expected to conduct shaft stripping by mid-April 2022 and to dis-establish the site by the end of May 2022. “There will be no stations or other exca- vations required, so this will help keep the team in a sinking cycle and optimise pro- duction levels,” he says. “We will run full calendar operations (Fulco) with 12-hour shifts and cycles of five-day shifts, five- night shifts and five shifts off.” A relatively small labour force of 123 people is planned for steady main sink- ing conditions, with some sub-contractors conducting surface piling and civil works

The shaft, with a lined diameter of 8,5 m, will reach a final blind sink depth of 1 190 m before a drop raise takes it to its final depth, according to Braam Blom, project executive at Murray & Roberts Cementation. “The duration of this project is expected to be just over three years,”says Blom.“After mobilisation, site establishment and sur- face civils have been completed, we expect to conduct pre-sinking until the end of 2019, with the use of our special shaft-sink- ing gantry to a shaft depth of 65 metres.” A surface headgear and winder installa- tion will then be constructed from January

April 2019  MODERN MINING  13

MINING News

The Guinea Alumina Corporation (GAC) bauxite mine project in the Boké region of Guinea recently achieved a major con- struction milestone when the project team safely set the car dumper facility’s 450-ton rotating assembly into its final location. Fluor is providing engineering and programme management services on the Bauxite project achieves construction milestone project, which encompasses a 12 Mt/a bauxite mine, a dedicated export terminal in Port Kamsar and rail and other infra- structure upgrades. The car dumper facility is critical to the mine’s logistics and operations. Bauxite is transported from the mine to the Port Kamsar site by rail, where it is then shipped

to customers. At the port, the car dumper facility unloads bauxite from the rail wagons. It took three days, multiple self-pro- pelled modular transporters and two 750-ton cranes to complete the instal- lation. The final lift required special preparations in order to hoist the 450-ton assembly over the car dumper facility’s walls and into its final location. “This milestone was achieved due to the collective efforts between the GAC and Fluor project teams,” said Troy Gilson, Fluor’s project director. “It demonstrates the importance of having a strong rela- tionship built around teamwork and trust. This critical milestone was executed safely after six months of detailed planning with a team focused and committed to working ‘Safer Together’.” The project – which will be completed this year – has thus far worked more than 8 million consecutive hours without a lost- time incident. 

The 450-ton rotating assembly is lowered into position.

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MINING News

Phase 1 of Makhado coal project approved

MC Mining has announced the development of its flagship Makhado hard coking and thermal coal project through a phased approach. Present plans are for construction of Phase 1 to commence in Q3 CY2019. MC Mining effectively owns 69 % of Baobab Mining & Exploration, the owner of the Makhado project, the balance either held (or to be held) by the Industrial Development Corporation of South Africa Limited (IDC), seven communities located in the vicinity of Makhado and a black industrialist. The development of Makhado, located 65 km south-west of Musina, will provide significant direct and indirect benefits to these communities located in one of the poorest areas of South Africa. MC Mining previously announced the Makhado ‘Lite’ project plan, producing 4,0 Mt/a of ROM coal yielding 1,6 to 1,8 Mt/a of saleable product. The development of Makhado Lite was delayed for approxi- mately one year, mainly due to lack of access to two key properties where the east pit, processing and other infrastructure would be located. The impact of this delay results in, amongst other things, the repayment date for the existing IDC loan occurring ahead of signifi- cant cashflows from Makhado Lite. Consequently, in parallel with pursuing various strategies to obtain access to the two properties, management assessed alternative project development plans, which included developingMakhado in phases by commencingmining on the west pit and processing through the exist- ing plant at MC Mining’s Vele mine (Phase 1) and then progressing to the east pit (Phase 2). Makhado is located 80 km south-east of Vele, which is currently on care and maintenance. The development of Phase 1 fast-tracks the development of a sec- ond cash generating asset in the Group, reduces debt/equity funding requirements and significantly reduces execution risk. Phase 1 commences with the development of the Makhado west pit as well as modifications to the existing Vele colliery processing plant. The drilling programme completed in Q4 CY2018 confirms the west pit’s limit of oxidation at 17 m below surface, indicating that the coal deeper than 17 m has not oxidised. This is shallower than the previously modelled depth of 30 m and translates into a lower strip ratio of 2,08 m 3 /t over the nine-year life of the pit. The approximate 3,0 Mt/a of ROM coal from the west pit will be mined by an independent mining contractor using a truck and shovel, modified terrace mining method. The ROM coal will be hauled to a crushing and screening plant consisting of a feeder breaker to crush the coal that is then scalped, removing the coarse parting and waste. The circa 2,0 Mt/a of scalped ROM coal will be transported by road to the Vele colliery for final processing. The Vele plant modifications will facilitate the simultaneous pro- duction of HCC and a 5 500 kcal export quality thermal coal. The plant modifications include a new fines circuit comprising a Reflux Classifier in series with the existing spiral plant, a low density secondary wash plant and a froth flotation plant to capture the ultra-fine coal. The plant will be managed by independent processing experts to produce approximately 1,1 Mt/a of saleable coal comprising 0,54 Mt/a of HCC and 0,57 Mt/a of thermal coal. Construction at Makhado and Vele will require peak funding of R460 million, including a 10 % design contingency. 

April 2019  MODERN MINING  15

MINING News

Coal miner launches educational programme

added that BRM focuses on upliftment and enablement in the communities sur- rounding its colliery and from the areas where it sources labour and suppliers and places great importance on activities and initiatives which will show tangible benefits. Gwede Mantashe, Minister of Mineral Resources, and executives from the Department of Mineral Resources were recently invited to the colliery for a dis- cussion around the Mining Academic

Black Royalty Minerals (BRM), a division of the Makole Group and operator of Chilwavhusiku Colliery, a fully black-owned mine based in Bronkhorstspruit, has launched its Mining Academic Programme (MAP). The focus of this programme is to provide educational support to the local community, increasing the understanding of key subjects and assisting in broader poverty alleviation. In partnership with MINDSET, an educa- tional technology and media NGO, BRM’s

MAP provides a supplementary education platform that delivers academic support to 400 senior high school learners in the Tshwane region’s seven municipalities. Using technology and qualified facilitators, learners will receive free high-quality extra lessons in key subjects once a week. “MAP is one of the many ways in which BRM continually strives to make a difference to the lives of the number of historically disadvantaged learners,” said Ndavhe Mareda, CEO of BRM. He

Programme and the positive impact that this will have on the community. He assessed the progress and milestones of the coal mine since it commenced operating a year ago. Mantashe later joined the launch event for the MAP project where Prince George Mahlangu, Gauteng MEC of Education Panyaza Lesufi and execu- tives from the Department of Education gathered to meet and talk to some of the students who will be part of the programme. “We are proud of how the community has embraced MAP and look forward to helping the students achieve their full potential. We will continue to support the community and expand on similar programmes,” concluded Mareda. 

Minister Gwede Mantashe and other VIP guests at Chilwavhusiku Colliery.

Magnum starts on second stage of trial mining at Gravelotte ASX-listed Magnum Mining & Exploration has launched a second phase of trial min- ing at its 74 %-owned Gravelotte emerald project in South Africa’s Limpopo Province. In 2018 Magnum completed the first stage of its evaluation programme by the trial processing of around 500 tonnes of rock from the existing waste and low grade dumps at Gravelotte. This first stage pro- gramme provided valuable information on the crushing characteristics of Gravelotte rocks and determined that XRF technology was the most efficient and accurate sorting method to liberate the emeralds. North and Discovery pits at Gravelotte. Themining stage of this programme has now commenced and is anticipated to take around 20-25 days to complete. Mining is through drill-and-blast and excavation into short haul trucks to the stockpile area adja- cent to the processing circuit. The processing circuit, which will incorporate an XRF unit, has been con- structed locally to Magnum’s design and specifications and was due to commence processing the mined material in late March after a short commissioning period using material from the low grade and waste dumps.

targeted to recover in excess of 250 000 carats. The trial processing and mining opera- tions at Gravelotte have been greatly assisted by all necessary infrastructure being already established on site. This infrastructure includes mess, accommoda- tion and mine administration buildings, water and power, and large work sheds for plant and equipment. From 1929 to 1982, the total recorded emerald production from the Gravelotte project, as well as the area surrounding the nearby Gravelotte township, was nearly 113 million carats. It is reported that dur- ing the 1960s the Gravelotte project itself was the largest emerald mine of its type in the world, employing over 400 sorters. 

The second and final stage of the evaluation programme is the trial mining, processing and sorting of around 8 000 tonnes of rock from the historic Cobra

Based on the historic average mining grade of 6 g/t (30 carats per tonne), this second stage trial mining programme is

16  MODERN MINING  April 2019