7 / 84
COMMENT
January 2017
MODERN MINING
5
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
Many companies
involved in the
mining sector
ended 2016 in far
better shape than
they started it
and are optimistic
about prospects.
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.
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