Modern Mining November 2016

CONSULTANTS/ PROJECTS HOUSES

SRK seminar highlights mining’s challenges and opportunities

Fresh management approaches, bold technological advanc- es and firmer relationships with stakeholders are among the most vital aspects of a brighter future for mining, according to some of the industry’s most experienced consulting en- gineers and scientists. They were speaking at the recent 360° Mining Perspectives seminar hosted by SRK Consulting in Johannesburg, which highlighted some of the current chal- lenges and opportunities in mining.

A side from the current pressure of the commodity price slump, productivity in the global min- ing sector was down almost 30 % over the past decade, said SRK corporate consultant Roger Dixon. “South African mines need to move away from a dated management model if we want to address pro- ductivity in the longer term, and at the same time win the hearts and minds of employees and other stakeholders.” Speakers at the seminar addressed issues ranging from energy costs and water constraints to social licence and the increasingly complex operating environment. A common theme, however, was that the long-awaited resource upturn was showing signs of gathering impe- tus, and that the sector was running out of time to prepare itself. SRK global chairman Mike Armitage (he has since stepped down from this position but remains with the SRK group as a corporate con- sultant in the Cardiff office) said that while the extended slump had thinned the ranks of the mining sector, it had left a more committed core of champions and practitioners who were tak- ing projects forward despite the challenges. “In the junior mining sector, for instance, there seem to be more mining people directly involved who really want to start and operate mines, rather than just trading in the value of mineral properties,” he said. Looking at the future of the established min- ing industry, Dixon said mines must harness the power of technology to improve profitability. “Capturing the value from digital innova- tions represents a fundamental shift in vision, strategy, operating model and capabilities in the mining industry,” he said. “In particular, much of the value creation in mining will shift

from how well the operation moves material to how well it collects, analyses and acts on informa- tion to become more productive.” SRK South Africa’s chairman and princi- pal structural and geotechnical consultant, Dr Graham Howell, emphasised the importance of leveraging the experience of well-trained engineers to integrate the various disciplines in search of path-breaking innovations. “Developments take place at the boundaries of disciplines,” said Dr Howell. “While tech- nology can speed up progress, there is also a need for slower, measured introspection and cogitation to develop optimal solutions.” These smarter approaches were already relevant to mines’ efforts to reduce energy con- sumption, said SRK principal mining engineer Noddy McGeorge. “We are under threat in the mining industry from an energy-pricing regime that is running beyond inflation and the security of supply as other consumers are using up the reserve mar- gins that were once plentiful,” said McGeorge. “It can be countered by changing the philoso- phy of new mine designs and adapting existing mines to retrofit designs; it requires that we plan for a more innovative world.” Mining was the focus of much attention regarding water usage and quality, despite con- suming only 3,3 % of national demand, SRK principal scientist Dr Andrew Wood pointed out. This was mainly due to the legacy of mine- related water pollution in the form of acid mine drainage (AMD), and the expectation that the mining sector would soon be paying for most of the cost of remedial treatment for AMD in the Witwatersrand Basin. He said the good news was that mining Dr Mike Armitage, corporate consultant in the Cardiff office of SRK Consulting.

Dr Graham Howell, chair- man, principal engineer and partner, SRK Consulting.

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42  MODERN MINING  November 2016