Modern Mining January 2017

COMMENT

Is mining making a comeback? Southern African region, Botswana seems fairly quiet at the moment as do Namibia and Zambia. In Mozambique, however, construction of the Balama graphite mine (which we cover in this issue) is running at full tilt while Kenmare’s Moma mineral sands mine is now operating at record levels and is contemplating an increase in mining capacity.

I think most readers will agree with me when I say that 2016 was one of the worst years for mining that we’ve ever seen. The big question is whether 2017 is going to be any better. This is a difficult one to answer with so many geopolitical uncertainties around, most notably Brexit and the Trump Presidency. My impression though is that many companies involved in the mining sector ended 2016 in far better shape than they started it and are opti- mistic about prospects. Admittedly, there is no big surge in newmine construction evident in Africa. Having said this, there are some very substantial projects underway which are providing a reasonably steady flow of work to companies servicing the African mining sector. A case in point is the Gamsberg zinc proj- ect in the Northern Cape, which we cover in this issue. Although work on site has been ongoing for some time (the ground breaking was around 18 months ago), the project is only now moving into top gear. Vedanta announced in October last year that ELB Engineering had been appointed as EPCM contractor for the plant and in December that Aveng Moolmans would be undertaking the bulk mining. In the platinum field and also in South Africa, Northam is pursuing its plus R4 billion Booysendal South project, which is expected to reach steady state by FY2022 – at which point it should be producing 240 000 oz/a 4E. Murray & Roberts Cementation has been awarded the Phase 1 contract for the establishment of the new mine, with the contract due to start in April this year. The other big story locally in platinum is Ivanhoe’s Platreef project near Mokopane, where Aveng Mining is now well into the sink- ing of Shaft 1. While this shaft – which will go down around a kilometre – is a substantial component of the overall project, the main pro- duction shaft is Shaft 2, which – with a depth of 1 250 m, a diameter of 10 m and a capacity of 6 Mt/a – will be a real monster. Shaft 2 is not too far off – the design has been completed and construction is due to start later this year. Across border in Zimbabwe there is also good news with Zimplats (part of the Implats Group) having announced in late November approval of the US$264 million Mupani bord and pillar mine (Portal 6), which will replace the Rukozdi and Ngwarati mines. Looking at other countries within the

In the DRC there is considerable activity in the base metals field, much of it being gen- erated by Ivanhoe at its Kamoa/Kakula and Kipushi projects. Kamoa/Kakula, of course, keeps getting better and better and now ranks as the biggest copper discovery ever made in Africa. Studies on the project are continuing but already there is considerable activity on site, with twin declines going in at Kamoa (at what Ivanhoe calls the Kansoko Sud mine). Looking at gold, the Southern African scene remains subdued but West Africa – even though the spate of mine building in Burkina Faso is tailing off – is still enjoying something of a boom. In Ghana, for example, Asanko Gold is now moving into Phase 2A of its very successful Asanko gold project (see page 46), which is likely to benefit a number of South African companies, including DRA and ELB Engineering, while Gold Fields is investing US$1,4 billion at its Damang mine. Mali – Africa’s third biggest gold producer after South Africa and Ghana – is also ticking over nicely. B2Gold is well advanced with its substantial (plus 350 000 oz/a) Fekola mine, due to enter production by the end of this year, and Hummingbird has started construction of its Yanfolila mine, projected to produce 132 000 ounces of gold in its first full year of production. Yet another big project underway in the West African region is the US$300 million Phase One expansion at Kinross Gold’s Tasiast mine in Mauritania. This is reported to be progressing well. Major earthworks are now in progress, the first concrete has been poured for the crusher and mill foundations and commissioning is expected in the first half of next year. Summing up, there is no sign that the min- ing industry is likely to re-attain any time soon – if ever – the high levels of activity that we saw back in 2006 and 2007 when the so- called resources ‘supercycle’ was in full swing. Nevertheless, there does seem to be enough work around to suggest that mining is heading for better times and that the worst of the reces- sion is behind us. Arthur Tassell

Many companies involved in the mining sector ended 2016 in far better shape than they started it and are optimistic about prospects.

January 2017  MODERN MINING  5