Modern Mining April 2021

Is modular the answer for cash-strapped start-ups? T he mining industry is entirely dependent on the equipment being used and, as a result, it is important that costs are reduced, not only in terms of the equipment it is buying, but of an obligation to hold extensive spares on site, especially in remote locations. Because they are pre-engineered, their man- ufacturing lead time is much shorter. Several manufacturers’ approach towards workshop pre- assembly results in simpler and quicker erection on site, which leads to shorter overall project dura- tion, lower site costs and quicker returns.

also the usage of that equipment. Nowadays, it’s extremely expensive to build a new processing plant. Mining companies are therefore turning to modular plant systems that offer several advantages such as lower capital costs and quicker lead times than their bespoke, specialised counterparts. Offering significant cost benefits and a low environmental footprint, sev- eral manufacturers can customise self-contained, high-recovery plants for minimal start-up capi- tal, using high-quality components and in-house expertise. In a world where access to funding remains the single biggest hurdle for junior miners and capi- tal dilemmas are at the forefront of junior mining executives’ minds, modular processing plants are proving to be the answer for start-up operations/ junior or artisanal miners, as they allow them to start small and ramp up as they generate cash flow. As you will see in this edition of Modern Mining , a key driver for these solutions is that they offer lower capital costs and a quick return on invest- ment compared with their conventionally tailored plants – a major drawcard for the junior mining sector. In fact, the modular solution has over the years been proven to offer an array of benefits to miners seeking a quick route to production. From a design perspective, customers can select the components they need to suit their specific application. These components (units) are then interlinked with conveyors and a solution is tailored to their specific needs and site specifica- tions. Once the design is defined, all the modules and individual components are sent to site, lifted into place and bolted together. Modular plants by their very nature are quick to go from concept to production, with standard components mostly readily available. The fact that no major infrastructure is required, translates into reduced set-up costs on site. With no customised components required, most spares are readily available at short notice. The standardised and easily available spares mean that mines have less

Additionally, should requirements change at any point within the design process, customers are able to tweak the requirements, so they have exactly the right layout, equipment and capacity to get the job done at all times. Mining compa- nies get to choose what they need and when they need it, and can add modules as and when required. I am also impressed by how modular plants can be utilised to gain early access at low capital cost, followed by phased expansion at a later date, once a steady cash flow has been established. These plants allow for ease of plant extensions. Subject to the lifespan of the operation, the modu- lar concept also allows for decommissioning and reinstating on alternate sites. They are also ideal in cases where a small deposit with a relatively short life of mine cannot support a large capital expenditure plant. Looking ahead, I believe that the modular solution will further gain popularity, especially as markets become more dynamic and mines expect quick and predictable solutions. Manufacturers are also constantly refining and adding to this concept. They are investing significant design and manufacturing resources in this product range. Customers are realising the value and benefit of being able to move the plants to new locations relatively easily, especially those processing tail- ing dumps on various sites. The short lead-times and the ability to move the plant and change layouts mean that mining companies have more flexibility when it comes to reacting to changing market and operating conditions. However, the growth of the market will always be driven by cost, efficiency and safety. In my view, this is going to be a growing opportunity in both the mining and aggregate space. The indus- try, however, will see an influx of new players in this sector and an increase in competition. 

COMMENT

Munesu Shoko

Editor: Munesu Shoko e-mail: mining@crown.co.za Features Writer: Mark Botha e-mail: markb@crown.co.za Advertising Manager: Bennie Venter e-mail: benniev@crown.co.za Design & Layout: Darryl James

Publisher: Karen Grant Deputy Publisher: Wilhelm du Plessis Circulation: Brenda Grossmann Published monthly by: Crown Publications (Pty) Ltd 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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2  MODERN MINING  April 2021