Modern Mining November 2018

CONSULTANTS/ PROJECT HOUSES

Still a buyer’s market for project developers, says SRK Commencement of a trenching programme targeting Lithium-Cesium-Tantalum (LCT) pegmatites in Rwanda.

P artner and principal consultant at SRK Consulting SA, Andrew van Zyl, is of the opinion that there are good skills available for explora- tion, mine planning and develop- ment – and at a reasonable cost for investors with capital. This is despite a considerable skills drain from the sector over the downturn. “Demand for these services is still lower than it should be,” said Van Zyl, emphasising that SRK has a good reputation for retaining experienced staff in its ranks for lengthy careers in what is a notoriously cyclical industry. “However, the skills drain from the min- ing industry generally may make it difficult to staff new mines and operate effectively,” he warned. “This challenge is matched by a short- age of skills in the mine servicing sector; this was already evident during the previous boom years, when the quality of work done was not always of a high standard – perhaps even preju- dicing the success of a number of projects.” SRK partner and principal mining engineer Marcin Wertz agreed that cost-cutting on many It is still a buyers’ market when it comes to the supply of exploration or construction services in mining, although this situation may be due for a correction.

Andrew van Zyl

Marcin Wertz

Oliver Bayley

mines has led to considerable thinning out of senior technical experts. “This has meant that many mines are increasingly reliant on outside expertise – from service providers and suppliers, for instance,” said Wertz. “For consultancies like SRK, who have retained key staff over decades, we have been able to contribute quite constructively to helping provide the necessary institutional memory to keep operations optimal.” Beyond the human resources capacity of mining, the cutbacks have also had other det- rimental effects. “While the industry has fairly effectively controlled costs, there remains a concern that this has been done at the expense of sustain- ability,” said Van Zyl. “Adjusting to the much

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November 2018  MODERN MINING  39