Modern Mining February 2015

EVENTS

modernisation strategy, including the mechanisation of mining and extrac- tion processes. “With industry margins being squeezed on all fronts, we simply have to embrace innovation if we want to find more productive, efficient and sustainable ways of extracting value from the minerals we mine. We can’t rely on only small, incremental changes and a business-as-usual philosophy to get us out of this predicament.” Griffith detailed some of the tech- nological advances that Amplats had made and innovations it had introduced. These included the full mechanisation of the Bathopele mine, which he described as a “bord and pillar operation utilising low pro- file equipment and operating at three times the productivity of our conven- tional mines”, and the replanning of

get spectacular results from drilling – includ- ing an intersection in the Big Zinc orebody which had returned an incredible 44,8 % zinc over 340 m. Much of Friedland’s address focused on the Platreef project near Mokopane, which he said would eventually be developed into the “world’s largest and most sustainable platinum mine” with a stage three production rate of 12 Mt/a of ore. He said it would be a highly mechanised bord and pillar mine exploiting the so-called Flatreef resource – with an average width of 24,5 m – at a depth of about 700 m. Workers, he said, would be trained professionals and would be paid accordingly and – with the hyperbole for which he is well known – he added that “no one working in the mine would be required to lift anything heavier than a pencil.” Friedland also introduced his colleague, Dr Patricia Makhesha , MD of Ivanhoe subsid- iary, Ivanplats, who gave delegates a briefing on what she called the company’s unique BEE initiatives, designed to benefit thousands of res- idents in the Mokopane area. “You will never find any big name in our structure. You know why – this is broad based. It’s not narrow based, it’s not about individuals, it’s about the entire population.” She added that Ivanplats, despite being the ‘new kid on the block’, was the top- ranked PGM sector mining company in terms of sustainability and had achieved Level 3 status in its first verification assessment on the BBBEE scorecard. Amplats’ modernising strategy Also presenting on the topic of platinum was Chris Griffith , CEO of Anglo American Platinum (Amplats), who noted that the price of platinum had not recovered since the global financial crisis in 2008 despite input costs hav- ing continued to rise well above the CPI. Mining generally in South Africa was also challenged by a critical energy situation, adversarial labour relations and declining labour productivity. He updated delegates on Amplats’ restructur- ing process. “The restructuring of the operations is now largely complete, with the consolidation of Rustenburg from five mines into three and Union mine from two mines into one. The next phase is optimising these assets to improve profitability and sustainability, and the respec- tive mine plans have been reviewed and refined with benefits coming through.” He added that Amplats’ objective “remains to exit our Union and Rustenburg mines in the most appropriate manner, whether separately or together, through either a sale or public market exit.” Griffith also gave an account of Amplats’

Twickenham to be the first hard rock mecha- nised mine to operate with extra-low and ultra-low profile mining technology. On the subject of hard rock cutting, he

Chris Griffith, CEO of Anglo American Platinum, explained the group’s ‘modernising strategy’.

Rio cultivates innovative partnerships Alan Davies, Rio Tinto’s Chief Executive, Diamonds & Minerals, gave delegates – in a presentation entitled ‘Cultivate innovative part- nerships for the long term’ – an overview of Rio’s activities in Africa. His division manages Richards Bay Minerals (RBM) in South Africa, QIT Madagascar Minerals in Madagascar, Murowa Diamonds in Zimbabwe, the controver- sial Simandou iron ore project in

Guinea and the Mutamba mineral sands project in Mozambique. Just prior to attending the Indaba, he visited QIT Madagascar Minerals. The project, he said, had involved an investment of US$1 billion in “a very remote part of the planet”. Its success, he told his audience, was attributable to the partnerships it had established with the Government of Madagascar, a 20 % shareholder in the project, communities in the vicinity of the mine and the World Bank. As regards RBM, Davies revealed that it was currently completing a feasibility study for an extension of the operation through the devel- opment of the Zulti South deposit. Turning to Simandou, he said it would involve the investment of billions of new dollars in Guinea. “A railway will be built. A deep water port will be established. Many kilo- metres of new and upgraded road will be built.” Concluding, he said: “I can think of no good reason why Africa should not – with its abundant resources and demography – make this an African century.” 

Rio Tinto’s Alan Davies.

February 2015  MODERN MINING  29