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FMDZ | September - October 2015 | Page1

Katanga Mining Suspends Of Copper/Cobalt Processing In

The DRC-13

Women Pay The Price For Zambia’s Mining

Expansion-15

Fact And Fantasy About China’s

Investments In Africa-32

1st MININGDRC-ZAMBIACentral Africa’s Premier Business To Business Mining Magazine » Issue 16 » Vol.7 #

Upholding Mine HEALTH AND Safety-20

ZAMBIA FORECASTS LOWER GROWTH-26

Lubumbashi Prepares ForKatanga Mining Week-11

Canadian Mining CompanyPolluting Zambia -33


MINES & mIneRALS

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ENVIRONMENT ISSUES

Contents

BAUMA CONEXPO AFRICA 2015Home of the heavyweights, set to be a knockout success.The bell for round one has sounded as bauma conexpo africa 2015, home of the heavyweights, kicked off at johannesburg expo centre (NASREC).

Minnesota Waterjet Contractor Helps Remote African Refinery Repair Vital 5 Million Gallon Crude Oil Storage Tank

Franklin Electric South Africa Launches Mono Ezstrip Transfer Pump Range

Dangote to build $400m cement plant inZimbabwe

Extronics Announce iWAP107 Access Point EnclosureSystem

DRC Copper Mine Installs Jet Edge 5-Axis Waterjet Cutting System

Why are miningcompaniesengaging in CSR programs?

02 AIRCURE05 john thompson08 ENERGY VALVES 10 OMAN MINIRALS31 NATIONAL PLASTICS34 OMAN MINIRALS35 HEFER37 JETEDGE43 POLLARD44 GEA Refrigeration Africa


Executive EditorSipho L. Dube,

[email protected]

Associate EditorsPatricia Shabangu, Ishmael Ndile

[email protected]

Contributing WritersAnne Thomas, Mfuneko Jack,

Lindani Mkhize and Caroline Thomas

[email protected]

Graphic Design and LayoutVirtual admin solutions

+27 61 857 0797

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Published ByMailing times Media

T el. +27 11 038 1648

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www.fmdrc-zambia.com

Circulation/Sales OfficerSikhumbuzile Dube

[email protected]

FROM THE EDITORThe mining industry worldwide is undergoing unprecedented changes, including high volatility of commodity prices and rising exploration costs. Africa, which produces more than 60 metal and mineral prod-ucts, has a huge potential with respect to mineral reserves exploration and production.

It is with great pride that we present this issue of 1ST Mining DRC-ZAMBIA which has got a lot to say about the mining industry, compa-nies, exploration and equipment in Africa.

Although mankind has mined metals and minerals for centuries, until recently the mining industry has had no great reputation. Mining has always been dirty and dangerous but, its different today, as sustainabil-ity and social responsibility have become a norm.

In some African countries, environmental problems and social issues caused by mining have been sources of protests and conflicts between mining companies and communities in mining areas.

And thus, all the world’s major miners are now committed to Corporate Social Responsibility initiatives which include all kinds of environmen-tal issues from flora and fauna to water and air quality. Find out why companies should be involved in these initiatives.

Also expect the latest news on IPAD-DRC Mining and Infrastructure Indaba from the 15th -16th of October 2015 in Kinshasa and tap into DRC Mining Reserves.

We hope to contribute more to the development of our industry by consistently presenting interesting and pertinent articles to our readers. We continue to solicit and publish contributions from different mining companies to enable them to present their side of the story.

As Always, A Varied Read Enyoy !

Sipho L. Dube, Executive Editor First Mining DRC-Zambia

CoverUnderground hard rock DRILLING.

Published by: A Dvision of:


Cape Town: +27 (0)21 959 8400 I Johannesburg: +27 (0)11 392 0900 I Durban: +27 (0)31 408 [email protected] www.johnthompson.co.za

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When you’re good at what you do, word gets around. That’s how an ultra-high pressure waterjet contractor from St. Paul, Minnesota, won a major project at an

oil refinery in far-off Ndola, Zambia.

Spin the globe and you’ll find Zambia right in the heart of south-ern Africa, nearly 8,400 miles (1400K) from St. Paul, its borders aptly shaped liked a flexed arm which could symbolize the na-tion’s determined economic recovery. Located on the bicep of that flexed arm, the Indeni Oil Refinery in Ndola is Zambia’s only refinery. It provides most of the petrochemical products to Zambia’s people and industries and is vital to the nation’s economy, producing over 20,000 barrels of oil a day according to Bloomberg Business.

The 40+ year-old refinery is in the middle of a major renovation project which includes the restoration of a 5 million gallon crude oil storage tank. This massive undertaking involves the removal and replacement of the tank’s steel floors and lower sidewalls.

The refinery had been ravaged by fire back in 1999, so its officials were naturally concerned about igniting hydrocarbons under the tank’s floor. To minimize this risk, they asked Ndola-based con-tractor Belgravia Services to use a cold-cutting method to cut the steel without heat or flames.

After researching potential methods, Belgravia Services Project Manager Peter Mokandu and his engineering staff decided that ultra-high pressure waterjet cutting was the safest and most cost effective way to complete the floor cutting work inside the tanks. Long considered the safest method for cutting in hazardous en-vironments, waterjet technology uses hydraulics to transform or-dinary tap water and sand into a powerful abrasive waterjet that can cut through virtually any material without heat or flames. The technology is widely used around the world for petroleum storage tank restorations.

Mr. Mokandu went online and discovered that Midwest Mobile Waterjet in faraway Minnesota was uniquely qualified to equip and train his crew within a very tight schedule.

The Minnesota waterjet contractor not only had years of expe-rience providing mobile waterjet cutting and blasting services

around the world, but also had the ability to build custom mobile waterjet tools that it typically powers with diesel-powered hy-draulic intensifier pumps manufactured by Jet Edge in nearby St. Michael, Minnesota.

Midwest Mobile Waterjet is known around the world for com-pleting some of the toughest waterjet cutting projects. In one project at a Louisiana refinery, the company helped a re-finery contractor out of a bind by successfully cutting eight 10” holes in 1.625” thick 24” diameter Inconel® pipe after the con-tractor spent two days trying to bore through the stubborn super alloy without completing a single hole.

Minnesota Waterjet Contractor Helps Remote African Refinery Repair Vital 5 Million Gallon Crude Oil Storage Tank


Midwest was able to waterjet cut the holes in less than 30 minutes for each hole with its Jet Edge-powered system. It was this repu-tation for creative problem solving that brought Midwest Mobile Waterjet to Mr. Mokandu’s attention. “We decided that Midwest Mobile Waterjet could offer our best option for a turnkey system that would allow us to perform our cold cutting work,” Mokandu said.

Brian Gleeson, Midwest Mobile Waterjet vice president, said his crew built a specialized portable waterjet cutting system for Bel-gravia Services which they powered with a restored Jet Edge 36-250DX, 36,0000 PSI (2500 bar) hydraulic intensifier pump. They then made the 34 hour flight to Zambia and provided three days of onsite technical training to Belgravia’s team.

Using the single cutting system, Belgravia’s crew cut the ¼” thick (6.35 mm) mild steel tank bottom at 5-10 inches per minute (127-254 mm), making a total cut of 3,000 to 4,000 lineal feet (914-1200 meters) in less than 30 days.

For abrasive, they opted against using the garnet abrasive that is typically used for waterjet cutting and instead used copper slag abrasive (normally used in sand blasting) because it was inex-pensive and available locally (copper is Zambia’s main export).

“They were very pleased with the pump and cutting system,” Gleeson said upon his return. “For cutting applications, the Jet Edge 36-250DX pump is ideal because it has the hydraulic and air auxiliary power all in one unit.

It also is a dry shut-off system that is better for waterjet cutting because it keeps the abrasive from getting wet which reduces abrasive clogging issues.” The pressure compensated pump means that the plungers are stroking only during the cutting pro-

cess, eliminating the need to bypass water as with typical direct drive pumps.

This is the second Jet Edge pump that has found its way to south-ern Africa this year; Jet Edge recently installed a new 5-axis pre-cision waterjet cutting system in a copper mine in the neighbor-ing Democratic Republic of Congo. That system is powered by a 75,000 PSI (5200 bar) Jet Edge X-Stream intensifier pump.Jet Edge has discontinued the 36-250 pump used by Belgravia Services, replacing it with the 36,000 PSI 280HP iP36-280 pump. The Cummins turbo diesel-powered iP36-280 is capable of pro-ducing 7.2 gpm (27.3 lpm) of ultra-high pressure water.

Jet Edge manufactures a wide range of waterjet pumps for mo-bile cutting and blasting applications and for precision industrial waterjet cutting. Its pumps include 36,000 PSI (2500 bar), 60,000 PSI (4100 bar) and 75,000 PSI (5200 bar) models. While Midwest Mobile Waterjet is no stranger to working in far off locations including Europe, Asia, the Caribbean, Canada, and South America, Zambia’s remote location made the project espe-cially challenging to deliver and support equipment.

Due to a tight schedule and limited time between the rainy sea-son and dry season it was decided that sending the equipment via air cargo was the best option to avoid delays and finish the project during the dry season. The equipment was crated and flown to Kenya then transferred over land to Zambia.

“We enjoyed working with Belgravia Services,” Gleeson said. “They had a very eager and hardworking team that quick-ly learned how to operate our equipment safely and efficiently. They are hoping this project will lead to others at the refinery, and we’re ready to assist them as work progresses.”


Ivanhoe Mines welcomes DR Congo Government’s support for Ivanhoe’s transaction with Zijin Mining.KINSHASA, DEMOCRATIC REPUBLIC OF CONGO – Ivanhoe Mines Ltd. (TSX: IVN) today welcomed the announcement by the government of the Democratic Republic of Congo that it is supportive of the ongoing transaction between Kamoa Holding Limited and Zijin Mining Group Co., Ltd, that would see Zijin acquire 49.5% of the share capital of Ka-moa Holding Limited, which currently owns 95% of the share capital of Kamoa Copper SA, the Ivanhoe Mines’ subsidiary that owns the Kamoa Project.

Zijin has agreed to purchase a 49.5% share interest in Kamoa Holding for an aggregate consideration of US$412 million. Ivanhoe also agreed to the sale of 1% of its share interest in Kamoa Holding to Crystal River Global Limited for US$8.32 million.

Constructive and cordial negotiations between Ivanhoe Mines and the DRC government are continuing to finalize the terms of a definitive agreement to transfer to the government a further 15% interest in Ka-moa Copper SA. The transaction would increase the DRC State’s aggre-gate ownership in Kamoa Copper SA to a total of 20% and equally dilute the interests of Zijin and Ivanhoe Mines in the Kamoa Project.

Split‐ShovelCam® System: Automatically Measure Muckpile Rock Particle SizeSplit Engineering, the world leader in quantifying coarse rock fragmen-tation size, introduces the next generation of online automated muck-pile fragmentation monitoring systems engineered for mobile digging equipment such as hydraulic excavators and cable shovels.

Split‐ShovelCam® automatically captures images of post‐blast muckpiles so that operators are immediately updated with rock fragmentation re-sults.

The system provides mine operators the first opportunity to collect and integrate high volume rock size data so that true post blast particle sizes can be trended and modeled.

The Split‐ShovelCam systems offers advanced imaging algorithms to determine the best image capture moment of the dig cycle so that qual-ity images of the muckpile are captured. The continued development has created enhanced features to find rock particles and identify regions of fines. Particle size information and data are immediately produced and integrated into user enabled systems for review, analysis and feed-back. Mine operators can now compare particle data to determine the optimum sizing for Run‐of‐Mine (ROM) handling and feed forward processing.

The particle size data provides new opportunities for users to make adjustments to blast design to optimize energy consumption while im-proving throughput and equipment utilization.

Trust your system integration to the experts at Split Engineering. Split Engineering has the focus and pedigree in coarse rock particle size mea-surement for the worldwide mining industry.

Split Engineering directly designs, installs and supports its systems and our size algorithms have been validated and vetted by the industry for 20 years.

The days when the government was seen as the exclusive social change agent and the absolute macro problem solver are becom-ing part of the past, as companies are gradually taking a larger role, actively participating in social and community projects un-der the concept of Corporate Social Responsibility (CSR).

Corporations have come to realise that they cannot operate in isolation to the community, that good governance and social in-volvement go beyond the work performed in their own offices. Their vision is shifting from one where shareholder’s value and owner’s satisfaction were almost exclusive corporate goals to an-other more sensible that considers and protects not only share-holders, but also all stakeholders; including employees, custom-ers, suppliers, the environment and the community.

Corporate Social Responsibility (CSR) is an evolving concept and is no longer just a random charity or philanthropy. It is now integrated and viewed upon as a key to business operations, sus-tainability and development. CSR encompasses projects that are external to the normal business activities of a company and not directly for purposes of increasing company profit. These proj-ects have a strong developmental approach and utilise company resources to benefit and uplift communities and are not primar-ily driven as marketing initiatives.

These days, corporate motivation seems almost beside the point because of the significant business risks to ignoring CSR. Con-sumers and other companies are likely to shun firms that develop unethical reputations. And arguably, companies that don’t pay at-tention to their ethical responsibilities are more likely to stumble into legal troubles, such as mass corruption or accounting fraud scandals. Corporate Social Responsibility(CSR) is playing an in-creasingly significant role in companies’ narratives and practices in Africa, particularly in the case of mining.The international prominence of CSR in mining can be traced to mining’s poten-

tially significant negative social and environmental impacts, and the related criticism levied at mining companies from govern-ments, NGOs, and local community organizations.

CSR also plays a special role in mining because of the inherent finiteness of the resource body and the environmental and social impacts related to mine closure.

In the mining industry companies undertake voluntary actions to either improve the living conditions (economic, social, and environmental) of local communities or to reduce the negative impacts of mining projects.

From the community’s perspective, the CSR programs of mining companies provide a mechanism of compensation for the social and environmental costs associated with mining. These costs are usually associated with environmental impact,

Why are mining companies engaging in CSR programs?

| Sept - Oct 2015

| Sept - Oct 2015

higher food and housing costs, and social im-pacts from an increase in the number workers living in the area.

In addition, a CSR program provides the com-munity with a means through which it can be involved in and provide input into the mining project. Since local communities may not see many of the direct benefits from the mining industry, CSR programs are a means through which a mining company can be seen to ac-tively give back to the community.

Mining companies also benefit from CSR pro-grams in several ways. Firstly, they help build better relations with the local communities in which they operate. The economic risks of not having good community relations include project delays and even mine closure. Signif-icant delays may cost up to two-thirds of the mine project’s initial value.

According to the World Bank, the mining in-dustry has become a very technologically com-plex sector which employs considerably fewer people than in the past and, therefore, needs to provide other benefits to local communities “in order to obtain a ‘social license’ to operate” Finally, companies that are regarded as social-ly responsible may be more likely to be asked to do business with governments that are ac-countable to their citizens.

These companies can also be more efficient in their recruitment processes because “access to the brightest and best in the labour market will depend upon the reputational status of the in-dustry and the companies within it”.

Although many companies are adhering to international standards and trends of CSR in response to both internal and external require-ments, there is still plenty of room for growth. Particularly in Africa where major problems of economic and social inequality still prevail and where efforts are needed to ensure the equal access to basic goods and services, CSR could still develop and expand.

The variety of social needs in areas such as education, health care (HIV/AIDS), entrepre-neurial development, among many others of-fer a wide spectrum for corporations to launch valuable CSR initiatives that not only can help solve pending social issues, but also empower local individuals to be part of their own com-munities’ economic growth.

Corporations could even opt to form part-nerships with nonprofit organizations or with governmental agencies in an effort to expand the reach of its CSR actions and to serve local communities in a more efficient and impactful way.


Lubumbashi Prepares For Katanga Mining WeekLubumbashi prepares for Katanga

Mining Week: free workshops, new technologies, high-level conference

“The best time to invest and seek to im-prove operational efficiencies”

The DRC’s mining community, as well as global partners, investors and suppliers, will meet up for the sixth edition of Ka-tanga Mining Week at the Grand Karavia in Lubumbashi from 20-21 October. The event will focus on the local challenges of the province as the hub of copper and co-balt mining in the DRC as well as the role of the mining industry in social develop-ment responsibilities.

Ivanhoe Mines is this year’s diamond sponsor for Katanga Mining Week. Says Mr Mr. Louis Watum, Executive Direc-tor of Ivanhoe Mines: “now that we are in a downturn, it is good to remember that mining cycles always present ups and downs, and this is the best time to invest and seek to improve operational efficien-cies so that we can remain competitive”.

Workshops and expoThe Katanga Mining Week event director Nicole Smith says: “we acknowledge the need for mine personnel to get the best training possible from our experts, as the efficiency of their work on site is a pre requisite to improve the quality of the op-erations in the field. We are offering free technical workshops on the expo floor again and will focus on the latest blasting technics as this was a hot topic last year and a crucial part the open sky mining expertise. Other topics on the workshop agenda are maintenance of machinery and health and safety which will include making staff aware of the risks of malaria and ways to prevent it.”

Nicole adds: “this year’s Katanga Mining Week’s key partners, exhibitors and spon-sors will be providing those training work-shops for free, including Ivanhoe, Onlime, Schlumberger and Spraying Systems. Fur-thermore, the indoor and outdoor expo

will showcase the latest technology, hard-ware and software, enough to excite and inspire any mining professional!”

The conference sessions will be dedicated to: “infrastructure, the railways, the fis-cal regime and the daily challenges that the mining operators encounter will be addressed and the specifics of the envi-ronment regulation will be elaborated on. Power and key solutions for the Katanga province will have a dedicated session; this is to help boost the production of cop-per and cobalt.”

Speaker highlights and sneak preview of the conference at Katanga Mining Week:

Power Focus Day, 19 October:Case study: incentivising energy savings through low consumption lamps- Charles Carron Brown, COO of Tiger Resources – The Kipoi Mine: “Let’s work together to fix the power. Tiger is invest-ing $33 million to improve the 120kV network and carry out an energy efficien-cy project – everyone wins with this! Or-dinary households get better power and light, there will be fewer power cuts, there will be more power available for SNEL to sell, more power available for the mining industry, in particular for SEK, and in the end the government will collect more tax-es since the operating costs of all the min-ers will be reduced. This is also a signifi-cant environmental benefit. That is seven wins. Not just the normal Win-Win.”Conference, 20-21 October:

2015 results: what to expect from the mining sector by 2020?- Simon Tuma Waku, Vice President, Fed-eration of Congolese Enterprises (FEC), in charge of the mining sector: “I am very pleased by the commitment from mining companies to maintain the same level of production than last year.”Harmoning norms and standards: IDAK platform- Elise Vigier, Technical Advisor, GIZ, Germany: “Try it: CSR is profitable for your business, and you are not alone to

implement.”ATI’s add value in infrastructure develop-ment: the case of DRC- Attaty Kodjo, Underwriter, Francophone Countries at the African Trade Insurance Agency: “ATI has a large program sup-porting clean energy projects thanks in large part to an initiative that is sponsored by the European Investment Bank.”

Katanga Mining Week is enjoying great institutional and industry support again, including the Government of the Prov

ince of Katanga and the DRC’s Ministry of Mines. Ivanhoe Mines is the diamond sponsor and Engen, Standard Bank and Tenke Fungurume have signed up as plat-inum sponsors. Aggreko, Andritz Hydro, Senet and Tiger Resources are gold spon-sors.

Katanga Mining Week is organised by Spintelligent, leading Cape Town-based trade exhibition and conference organiser, and the African office of Clarion Events Ltd, based in the UK.

Katanga Mining Week dates and location:Power focus day: 19 October 2015Conference and exhibition: 20-21 October 2015Site visits: 22 October 2015Locations: Grand Karavia Hotel, Lubumbashi, DRC

Websites: http://www.ipad-katanga.com/Twitter: https://twitter.com/miningkatanga

LinkedIn:http://www.linkedin.com/groups/Katan-ga-Mining-Week-4922857/about

Media contact:Communications manager: Annemarie Rood-bol

Telephone: +27 21 700 3558Mobile: +27 82 562 7844Email: [email protected]

| Sept - Oct 2015


By Elias Mambo Nigerian magnate Aliko Dangote’s team of experts which flew into the country on Monday, has registered a company, Dan-gote Cement Zimbabwe, as he prepares to build an integrated US$400 million cement plant at a location yet to be deter-mined.

His team of geologists is studying geo-logical data which they were given on Tuesday by the Ministry of Mines and Mining Development. The team will de-termine where the cement plant would be located after that. This comes as South African-based Zimbabwean businessman Mutumwa Mawere, who at one time had vast interests covering mining, finance, insurance, agriculture, telecoms, real es-tate and media, warned Dangote that he must tread carefully on Zimbabwe’s ex-plosive economic landscape which he said was a minefield for investors.

He said Zimbabwe was a hostile invest-ment terrain because of personalisation of the state, break down of the rule of law and violation of property rights, among

other things.

“It must worry you when your due dili-gence team has first to meet with the Dep-uty Chief Cabinet Secretary to consider an investment in a democratic state,” Mawere wrote. “Rule of law and rule by man are two phrases that have different connota-tions …. Rule of law implies fairness and predicable application whereas rule of man or rule by law implies unfairness, in-consistency and injustice.”Zimbabwe has for long been accused of trampling on the rule of law, especially after embarking on a chaotic and often violent land grab in 2000, and violating property rights — factors among those blamed for the trickles of foreign direct investment. Mawere’s business empire was seized by government a decade ago, claiming his companies owed state enti-ties.

Mawere cited a recent example involv-ing the Reserve Bank of Zimbabwe and agro-equipment firm Farmtec Spares and Implements, which lost US$2,1 million because the rules were changed to protect

the debtor and not the creditor through the controversial Presidential Powers (Temporary Measures) Act.

Farmtec was contracted by the cen-tral bank to supply 150 tractors under a quasi-fiscal operation. The RBZ howev-er failed to pay for the tractors received. Mawere said Dangote must not in the end say he was not warned.

However, Dangote, who is also planning to invest in coal mining and power gen-eration, was assured by President Robert Mugabe that his investments would be secure when he visited Zimbabwe a fort-night ago. As a result he dispatched a team of experts this week.

The team comprises two geologists, two lawyers, a Zimbabwean national Rum-bidzai Sithole who is the Dangote Group’s corporate strategy specialist, as well as Abdul Mukhtar — the chief strategist.The team started legal paperwork soon af-ter meeting the deputy chief secretary to the president and cabinet Justin Mupam-hanga, on Monday.

Dangote to build $400m cement plant in Zimbabwe

MINING News

Mining Buildings: Double stacked container mounted structure – Alliance Con-struction Randalls Mine south of Kalgoorlie.


ment. Dangote is worth more than Zimba-bwe’s annual Gross Domestic Product which stands at about US$13,66 billion and about five times the country’s paltry US$4 billion annual budget.

He managed to arm-twist the investment-des-perate government to secure exemption from its controversial indeginisation laws so that he secures full ownership of his investments.

The waiver of the indeginisation policy comes at a time several government officials have called for substantive amendments to the toxic law blamed for capital flight and scaring away investors.

Katanga Mining confirms suspen-sion of copper/co-balt processing in the DRC DRC - Katanga Mining, Glencore’s DRC-fo-cused copper/cobalt company, has confirmed the decision to suspend the processing of copper and cobalt and expects it will last up to 18 months.

The company will continue with the planned investment of US$880 million into on-go-ing processing plant upgrades and the waste stripping of the KOV and Mashamba open pits. These process upgrades include the commissioning of the new leach plant which will replace the existing oxide concentration process.

This is expected to significantly improve both copper recoveries and operating unit costs when processing resumes. C1 costs are ex-pected to be reduced to c.$1.65/lb.

Commitment to regional upliftment remains a priority. Katanga aims to minimise the im-pact of the suspension on its employees and will retain a minimum of 80% of the existing workforce.

Initially, a process of voluntary redundancies and voluntary early retirement will be fol-lowed before assessing the need for compul-sory headcount reductions. During the suspension, the company will invest in a skills development programme which will include work programmes at

...Cont.

Sources close to Dangote said the busi-ness tycoon’s priority investment is the construction of a US$400 million inte-grated cement plant.

He is however planning to venture into power generation and coal mining in-vestments which complement the ce-ment manufacturing process.

“On Monday the team had a meeting with officials from the ministries of Fi-nance, Mines, Economic Planning, the Environment Management Agency as well as members from the Zimbabwe In-vestment Authority (Zia),” a source close to the deal revealed.

“The lawyers began preparations for the company registrations which were com-pleted by end of day on Monday and the certificate was issued on Tuesday reflect-ing the group will trade as Dangote Cement Zimbabwe.

“Dangote has settled for the construc-tion of a cement plant before venturing into other areas such as energy and coal. But it will be an integrated plant because it needs coal and power, hence his inter-ests in those other sectors.”

Also on Monday, Dangote’s geologists

met the Mines ministry’s permanent secretary Francis Gudyanga who handed over the country’s geological data sheet which shows areas with abundant lime-stone deposits.

“The location of the plant will be deter-mined by the availability of quality lime-stone deposits. The geologists also met with the limestone deposit concession holders who also made their presenta-tions,” said the official.

Sources close to the deal also revealed government had informed Dangote’s team that it does not have limestone de-posits, but linked private claim owners with the investor. Dangote’s team met Zia chief executive officer Richard Mbai-wa yesterday to discuss the business ty-coon’s investment, including the coal and energy investments which are yet to take shape.

“I will be meeting the team today (Thurs-day) and get to know what the entire in-vestment is worth,” Mbaiwa said.

Dangote, whose net worth was US$17,5 billion according to Forbes magazine, is moving in to invest at a time most inves-tors are sitting on the fence, jittery due to Zimbabwe’s hostile business environ-


other operations and the attendance of identified staff at a technical school in Zambia. The company and Mutanda Mining SARL will continue to invest in the INGA hydropower project, which in-cludes the rehabilitation of the G27 and G28 turbines at INGA, along with in-creased power transmission from Kinsha-sa to Katanga.

In line with the commitment to responsi-ble operations, during the suspension the company will also continue to operate its hospitals for the benefit of its employees and dependents and continue to run its health projects, including the various wa-ter supply projects.

It will also continue to invest in its planned 2016 CSR projects. Additionally, following consultation with Government of the DRC, Katanga will expand exist-ing social projects, in particular farming, in response to the headcount reductions. These expansions will be implemented after engagement with the affected com-munities.

Representatives of the company have been in Kinshasa to meet with the relevant DRC government ministers including the prime minister, and have presented details on the suspension plan and whole ore leach (WOL) project. Katanga will take into account the issues raised by the government during these discussions.

Glencore has indicated it will provide or procure the additional funding required for the WOL project and other capital ex-penditure during the WOL project build-ing and commissioning phase, in addition to any funding necessary for the care and maintenance related activities which will continue during the suspension period.

DRC mining community em-braces the DRC Mining Industry Awards in Kinshasa“Honouring excellence and achievements in the DRC’s growing mining sector”

The mining industry in DRC will once again honour its top industry leaders and projects at the DRC Mining Industry Awards that will take place at a high-level gala dinner during the iPAD DRC Mining & Infrastructure Indaba on Wednesday, 15 October in Kinshasa.

Impressive industry supportThe DRC’s Ministry of Mines is an offi-cial supporter of the 11th edition of iPAD DRC and the event has already secured impressive industry support through the diamond sponsorship of Ivanhoe Mines as well as Banro Corporation, Engen and Tenke Fungurume Mining as platinum sponsors and Tiger Resources Limited and Aggreko as gold sponsors.

Mining community embraces awardsThe mining community has also em-braced the DRC Mining Industry Awards. “When we launched the awards last year the industry responded with such enthu-siasm that it was a tremendous success,” says Nicole Smith, event director of iPAD DRC.

She continues: “this year we bring the awards back with new and exciting fea-tures. We have added a new category, namely Mining Woman of the Year, to honour the role and impact of women in this sector.

Also, to again guarantee fairness and transparency, we have a new panel of in-dependent judges who are overseeing the selection process.”

She adds: “once again the Awards are pre-sented by the DRC Chamber of Mines and our premier media partner, Mining Review Africa and we look forward to hearingfrom the industry that has the op-portunity to nominate and recognise the leading mining operations and key play-ers in the industry.”

Last year’s winnersLast year the event gathered more than 160 of the most highly regarded players in the industry, honouring excellence and achievements in the DRC’s growing min-ing sector and was attended by the Min-ister of Mines, H.E. Martin Kabwelulu Labilo.

Tenke Fungurume received a triple nod of approval from the judging committee with three awards, including its Managing Director, Claude Polet, winning the Life-

time Achievement Award.

Other wins included Kibali Gold Project that was named Mining Company of the Year while Energold Group won Best Per-former in Innovation.

THIS YEAR’S DRC MINING INDUS-TRY AWARDS CATEGORIES ARE AS FOLLOWS:

Lifetime Achievement AwardThe Lifetime Achievement Award is given to an individual for achievements which have made an outstanding contribution and impact on the DRC’s mining industry, whether from a public or private company or institution.

Best performer in Environmental Manage-mentThis award celebrates the accomplish-ments within the past year of an individ-ual in a senior position from a mining house who has implemented program-me/s that are excellent examples of the in-tegration of environmental management into the core business strategy and contin-ue to champion sustainable environmen-tal practices.

Best performer in Occupational Health and SafetyThis award celebrates the mining project that has excelled in promoting a holistic health and safety culture, in compliance with regulations and standards.

Best performer in Social InvestmentThis award celebrates the mining house that has excelled in implementing a clear social investment framework that pro-vides a catalyst for development, namely one that establishes an agenda for the fu-ture; assesses priorities for development; ensures compatible land uses; resolves land use conflicts and engages local com-munities in CSR planning.

Outstanding Woman in MiningThis award celebrates a woman for out-standing achievements during the past year which have made a contribution to and impact in the Mining Industry, whether from a public or private company or institution.

Best performer in InnovationAward for the mining house that has rolled out state of the art mining technol-ogy and innovation creating production efficiency and streamlined processes.

MINING News


Mining Company of the YearThis award celebrates the mining compa-ny who overall has achieved top results in terms of output, cost savings, employ-ee satisfaction, innovation and that con-tributed to the overall development and growth of the sector in the DRC.

iPAD DRC Mining and Infrastructure Indaba is organised by Spintelligent, lead-ing Cape Town-based trade exhibition and conference organiser, and the African office of Clarion Events Ltd, based in the UK.

iPAD DRC Mining and Infrastructure Indaba dates and location:Industry Awards: 15 October 2015Location: Beatrice Hotel, Kinshasa Con-ference and exhibition: 15-16 October 2015Location: Fleuve Congo Hotel, 119 Boule-vard Tshatshi, Kinshasa Gombe, DRC.

Women pay the price for Zam-bia’s mining ex-pansionSHINENGENE, Zambia - The women sat quietly in a village church in northwest Zambia, the sun slanting down on their colorful Sunday outfits as they told how life had changed since their chief sold a tract of land to a foreign firm for a new copper mine, displacing hundreds of fam-ilies.

“We had a vast land and we could do any-thing,” Seke Mwansakombe, one of the displaced women, told the Thomson Re-uters Foundation.

“Here we are confined to 40 by 40 meter plots and our movements have been re-stricted because certain areas are now no-go areas.”

Kalumbila Minerals Ltd, a subsidiary of Canada-based First Quantum Miner-als Ltd, signed a deal with Senior Chief Musele in 2011 to buy 518 square kms of surface rights for its mining activities, called the Trident Project.

As a result almost 1,000 families, most of them subsistence farmers, were relocated to Shinengene, or Southern Settlement,

and to Northern Township, some 18 kms (11 miles) from their original village. Oth-er villages are due for relocation soon.

A report by global charity ActionAid, published this week, said the villagers’ dis-placement had marginalized the women, preventing many of them from growing their own food and limiting their access to natural resources such as forests and rivers.

In Zambia, where women take second place in every aspect of political, social and economic life, they are at a disadvan-tage when decisions like this are taken, which take no account of their interests, needs and concerns, the report said.

“Even when women attend meetings, they rarely speak and they don’t ask questions,” Pamela Chisanga, the head of ActionAid Zambia, told the Thomson Reuters Foun-dation.Most of the relocated women did not know the compensation details or wheth-er the new parcels of land provided by the mine were registered in their names jointly with their husbands’, the report on negative impacts of mining on women in Zambia said.

According to the United Nations Human Settlements Programme, 94 percent of land in Zambia is held under a customary system regulated by traditional leaders.“Because the customary land is not regu-lated by law, it essentially gives the local leaders full authority,” Peter Veit, director of Land and Resource Rights Initiative at the global research organization World Resources Institute, told the Thomson Reuters Foundation in a phone interview from Washington.

Land ownership by women protects their interests, especially in the event of divorce, inheritance and the transfer or sale of land.“If women have their name in the title, at least they can be sure to receive some compensation from a large-scale acqui-sition,” said WRI associate Celine Salce-

do-La Vina.

‘MATCHBOX’ HOUSES, BLACK BEANSThe villagers, who used to live in tradi-tional compounds with separate huts for each generation of a family, were given simple brick houses, one for each extend-ed family, in the new settlement.Beth Lombanya, a 42-year-old mother of 10, said she found it hard to fit her family into the four-room house they were given.“It’s not fair that this community ... got little matchboxes like this,” Chisanga said.The women, traditionally responsible for fetching water and growing and cooking food, said they found it hard to feed their families in their new village.Unable to farm on the small plots around their houses, they have to walk a kilometer to an area the mine set aside for farming.Those unable to grow enough food for their families now have to pay up to four times as much for food as before, mainly because transport costs have risen sharply now that they no longer live on the main road to Solwezi, the nearest commercial center.Mining accounts for 10 percent of Zam-bia’s formal employment and 12 percent of its gross domestic product, but only a few of the villagers are working in the mine, the majority of them men, because of a lack of skills and education.As a result of their relocation, women lost access to forest resources like mushrooms, caterpillars and firewood, and surface wa-ter in local rivers that they need to process cassava, a staple food, the ActionAid re-port said.

SIGNED WITH A THUMBThe community had little room to nego-tiate the compensation package and re-ceived a “raw deal”, according to Action-Aid - an allegation the mining company’s representatives dispute.“The challenge has been that people didn’t get enough information and they were misled about the kind of benefits they have,” Chisanga said.

...Cont.

MINING News

| Sept - Oct 2015


The women, some illiterate, said they didn’t realize they could not claim com-pensation once they had signed the mine acquisition documents, some with a thumbprint.

“There was very small print on the bottom of the forms that these communities were signing, that this was all the company was liable to provide to them as compensa-tion,” Chisanga said.

Traditionally, widows or single women live in the compounds of their relatives, usually men, so their own huts or fields were not taken into account when they moved, Chisanga said.

“I’ve no one to take care of me, so during the move I just followed everybody else,” said 66-year-old Rontina Alesi Muke.

Garth Lappeman, manager of the Trident Foundation which oversaw the resettle-ment, rejected the residents’ complaints, saying company officials had explained all points of the agreement carefully and tak-en trouble to ensure the villagers would not lose out materially as a result of their move.

“We’ve been very systematic to ensure that they haven’t gotten a raw deal and there are measurable improvements in key ar-eas that make up their standard of living,” he said.

“We had a team of people who explained the agreements to the displaced house-holds and farmers in the local language before they signed the agreements,” he told the Thomson Reuters Foundation.

“I believe people understood and they’re just claiming that they did not understand because they think this could be an argu-ment that they could use to get additional resettlement entitlements. I think that is the situation there.”

ActionAid initially wanted land titles to be given to displaced people in the Musele Chiefdom, but concluded that land titles can make communities even more vulner-able because they make it easier for indi-viduals to sell their land, especially under pressure, Chisanga said.

INHUMAN CONDITIONSAlarmed by the plight of their neighbors, more than 1,000 families from the nearby village of Kankozhi are refusing to move as part of the same project.

“Because of these inhuman conditions we don’t want to relocate,” 49-year-old Leon-ard Chinyama told the Thomson Reuters Foundation, as the worried villagers gath-ered for a meeting under the trees.

“The mine industry was supposed to serve people here, but those who are benefiting are not here, they are far away,” added Donald Makina, 58.

Senior Chief Musele’s Prime Minister, Sachiyenga, said the area acquired by the mine has been reduced to 385 square kms, and he and the villagers are lobbying the government to reduce it further, espe-cially after the mining firm fenced off 66 square kms of forest for a game park.

“The mine brought animals to the park and now the animals are more important than us,” Sachiyenga said.

Pepino Musakalu from the local non-prof-it Green and Justice, which works with the affected communities, said only the Zam-bian president’s office can amend the land acquisition contract.

BUS TO LUSAKASome 370 kms (230 miles) east of the Musele Chiefdom, women trying to cope with the harm to the environment caused by another mine would love to relocate.

Esther Zulu, a 34-year-old mother of four, is one of more than 45,000 residents of Kankoyo, an impoverished area in Zam-bia’s main copper mining region, the Cop-perbelt, where Mopani, one of the largest mines in the world, is located.

She said the polluted water there had giv-en her embarrassing health problems and her husband had left her.

According to ActionAid, no food can grow in Kankoyo because of the high level of acid contamination of water and soil.

“When sulfur comes out ... you vomit and you have diarrhea,” said Zulu. “We just want a big bus to go to the president” and appeal for help, she said. “The ideal solu-tion is to move.”

Mopani Copper Mines Plc did not re-spond to requests for comment.

Glencore Zambia Unit to Cut 4,300

Jobs, Miners’ Union SaysMopani Copper Mines Plc, the Zambian unit of Glencore Plc, plans to cut about 4,300 jobs, according to National Union for Miners and Allied Workers President James Chansa.

The company cited lower copper prices, an electricity shortage and unpaid val-ue-added tax refunds as the reasons be-hind its decision during a meeting with union leaders on Monday, Chansa said by phone after the talks.

“We have said no to this idea and we’ve instead asked them to dialog with us and find a better solution,” said Chansa, whose union has about 2,400 members at Mo-pani. Calls to government officials includ-ing Mines Minister Christopher Yaluma and Labour Minister Fackson Shamenda didn’t connect.

Mopani is the biggest mining employer in Zambia, Africa’s second-largest cop-per producer, with 20,000 workers, half of them contractors. Glencore plans to sus-pend its operations in Zambia and at Ka-tanga Mining Ltd. in neighboring Demo-cratic Republic of Congo for 18 months, the company said Sept. 7. Katanga Min-ing will retain 80 percent of its workforce during the halt, the company said last week.

“Mopani is undertaking a study to deter-mine the best possible way to deal with the financial challenges the company is facing,” Cephas Sinyangwe, a spokesman for Glencore’s Zambia unit, said in reply to e-mailed questions. “The company is committed to working with all stakehold-ers including government and unions to find a solution.”

Mining ThreatChishimba Kambwili, a Zambian govern-ment spokesman, on Sunday threatened to suspend the mining license of CNMC Luanshya Copper Mines Plc if it didn’t rescind a decision to halt operations at its Baluba mine, where it sent over 1,600 workers on leave.

Glencore was yet to officially notify the government of its intentions, Kambwili said on state television.

Power cuts after drought reduced water levels at hydropower dams and weaker copper prices have put pressure on the

MINING News


mining industry in Zambia, which is Af-rica’s largest copper producer after Demo-cratic Republic of Congo.

Mopani’s workforce reduction will proba-bly be directed at employees and the num-ber of cuts could grow if contract posi-tions are also eliminated, Chansa said. The company told the union it would write to inform the government’s labor depart-ment on Monday about the decision, to give it the legal 60 days’ notice before the retrenchments can take effect, he said.Mopani will continue with capital projects and it may keep some of the more profit-able sections of the mine in production, said Chansa.

Zambian President Edgar Lungu plans to meet mining unions to discuss “pressing” issues, state-run ZNBC reported on Mon-day, citing Chanda Kabwe, a district com-missioner in the Copperbelt province. He declined to say what’s expected to result from the talks.

Glencore Deals Mining Blow To African Copper ProducersGlencore’s move to suspend operations t mines in the Democratic Republic of Congo and Zambia has dealt a significant blow to Africa’s top two copper producers.The mining and trading group announced on Monday it was halting production at its Katanga mine in the DRC and its Mopani

operation in Zambia for 18 months, as part of its new debt reduction plan.

Both mines are major contributors to the copper output of their respective coun-tries. Katanga produces about 200,000 tonnes per year, the equivalent to roughly 20 per cent of the DRC’s copper output. Mopani’s shafts produce about 110,000 tonnes per year, equal to 15 per cent of Zambia’s output.

Another 110,000 tonnes of copper is pro-cessed through Mopani from other min-ers, mostly from First Quantum’s Kansan-shi mine. But there are smelter facilities elsewhere in the country to cater for that while Mopani’s operations are suspended, if there is sufficient power supply. First Quantum opened a new $815m smelter at Kansanshi last year.

Glencore insisted it was committed to mining in both countries and said it will use the period to develop and modernise the shafts, which have been lossmaking since the price of copper dropped to be-low $6,000 a tonne.

But the decision to suspend the mines’ output comes at a particularly bad time for copper-dependent Zambia, which re-lies on the metal for about 70 per cent of its foreign exchange earnings and 25 to 30 per cent of government revenue. Lusaka is already struggling to narrow a wide fiscal deficit and has seen its currency drop to all-time lows against the US dollar.

In addition, Luanshya Copper Mines said this week it would suspend operations and cut jobs at its Baluba mine in Zambia. Miners in Zambia have also been impact-

ed by power shortages and policy uncer-tainty as the government has altered the industry’s tax regime. The miners, which also include Barrick Gold and Vedanta, are also owed about $800m in a dispute over value added tax repayments. Glen-core is due about $300m.

Mining has also been a key driver of eco-nomic growth in the DRC. Its mining in-dustry is more diverse that Zambia’s, as it produces cobalt, gold, tin and diamonds, but the suspension of Katanga will still be keenly felt.

“While the DRC economy is more diversi-fied than in Zambia, the source of the gov-ernment’s revenue is not,” said John Ash-bourne, economist at Capital Economics. “It’s the only source of export revenue and the only source of hard currency because much of the rest of the economy is infor-mal.”

Glencore employs about 8,000 people at Mopani and 5,000 at Katanga, excluding thousands of contractors. It is unclear how many jobs would be affected by the suspensions, but large numbers of em-ployees are expected to be kept for the mines’ development.

At Mopani, Glencore plans to invest $500m over the next 18 months as it de-velops three new shafts, raising the mine’s output to about 140,000 tonnes per an-num while reducing production costs.

At Katanga, it will invest $900m to devel-op and modernise the mine and raise out-put to about 280,000 tonnes per annum while also cutting costs.

MINING News

A truck is loaded with rocks at an Equinox copper mine in Lumwana, Zambia.

| Sept - Oct 2015

Franklin Electric South Africa, a manufacturer of world class pumping solutions with expertise throughout the Af-rican continent, has launched an innovative, cost-saving,

new range of progressing cavity pumps into the southern African market.

The revolutionary new Mono EZstrip transfer pump is easy to install and presents the opportunity to see downtime drastically reduced as maintenance, cleaning and repairs to the pump can be carried out in-situ.

The new pumps do not require any special tools or operational skills and can be refitted into existing applications. The develop-ment of the Mono EZstrip transfer pump has been recognised as one of the biggest leaps forward in progressing cavity pump design in 30 years.

Extensive research was carried out before the development of the Mono EZstrip transfer pump which took into consideration var-ious factors, among them the typical problems faced by custom-ers in the waste water industry.From this global research it was established that the two biggest hurdles clients came up against when using conventional progressing cavity pumps was the need for a greater handling capacity and the inconvenience of mainte-nance downtime.

While standard progressing cavity pumps have to be dismantled and taken away to be serviced, the new EZstrip technology pro-vides for a simple and efficient way to disassemble, de-rag and maintain the pump in-situ without having to dismantle suction and discharge pipework.All rotating parts can be easily removed and de-ragging operations require only a spanner and Allen key. As such, routine maintenance that would have taken the better part of a day to complete can now be achieved in under 30 min-utes.

Currently the removal of rotating parts from a progressing cavity pump can take up to a full day; however, with the EZstrip trans-fer pump the entire drive train including rotor, stator, shaft, rod and seal can be removed in less than four minutes. Furthermore, the new Mono EZstrip transfer pump has a handling capacity of up to 225 m3/h.

Other advantages of the new Mono EZstrip transfer pump in-clude:

• Thepumpscanbesuppliedonbaseplatesforeaseofin-stallation.

• They are available in cast iron or stainless steel with a choice of rotor and stator materials to suit individual ap-

plication.• A pre-assembled drive train is available with a two-year

warranty and allows for even faster re-assembly time.• As maintenance downtime is reduced, labour saving is

increased• New technology eliminates the need for dismantling

lengths and greatly reduces the space needed for main-tenance to take place

• The optional dry run protection can further reduce maintenance costs and increase uptime.

The new Mono EZstrip transfer pumps can be installed in new plants or fitted into existing pump systems, making them highly versatile and user-friendly. Typical applications include domes-tic and industrial effluents, hydrated lime slurry, sludge, shear sensitive latex emulsion, milk curds, sauces, fruit juices, indus-trial chemicals and detergents, starch slurries, coating clays, gyp-sum and silicate, paper stocks and agricultural slurries.

The versatile and reliable Mono pump was first introduced in South Africa in 1968 and over the years has proven to be highly popular with the mining, petrochemical, pulp and paper, sug-ar, waste water sewage and agricultural and irrigation sectors, among others.The revolutionary design and easy application of the new Mono EZstrip transfer pump reinforces Franklin Electric’s outstanding reputation as a leading manufacturing supplier of world class pumping solutions.

Franklin Electric South Af-rica Launches Mono Ez-strip Transfer Pump Range

PRODUCT Releases

Removing suction chamber screws.


PRODUCT Releases

Extronics Announce iWAP107 Access Point Enclosure SystemNow MIMO capable access points can be deployed in hazardous ar-eas.

Extronics, a leading designer and manufacturer of intrinsical-ly safe and explosion proof equipment, today announced the launch of the iWAP107, the latest in the iWAP series of ATEX and

IECEx approved access point enclosure systems. The new iWAP107 brings the advantages of MIMO technology to hazardous process areas. Previously, WiFi links in heavy process areas have been badly affected by multipath interference created by the abundance of metallic structures causing the signal to scatter before arrival. In contrast, MIMO uses multipath algorithms to increase the range, throughput and robustness of the data link by capturing the scat-tered signals and recompiling them. The new iWAP107 enclosure system allows the latest MIMO Access Points from market leaders such as Cisco and Aruba to be deployed in hazardous areas to significantly improve wireless performance and reliability.

The iWAP107 also comes with the revolutionary iSOLATE500 RF gal-vanic isolators, which makes all the antenna points intrinsically safe. This enables any standard antenna to be used with the system and allows conventional wiring of RF connections. Designed for use in ATEX and IECEx Zone 1 hazardous areas, the iWAP107 is a perfect system to allow data to be unlocked from dif-ficult process areas such as oil rigs and heavy petro-chemical sites. The iWAP107 has already been commissioned for use in deep water production platforms where its gigabit Ethernet capability is vital in providing the necessary bandwidth.

Extronics have long been pioneers in developing wireless solutions specifically for hazardous process areas and the iWAP107 is the lat-est in a product line going back to 2005. “We have recently experi-enced a dramatic upsurge of wireless enquiries in hazardous areas” said John Hartley, M.D. Extronics. “The iWAP107 is part of a substan-tial programme of product development designed to cost-effective-ly address this growing demand. It’s use of the new iSOLATE500 RF galvanic isolator means far simpler and more cost-effective deploy-ments.”

About Extronics: Formed in 1992, Extronics is a leading global de-signer and manufacturer of intrinsically safe and explosion-proof equipment. From its UK H.Q., Extronics produces a range of products designed to increase safety and improve productivity in hazardous

areas. These products are distributed by Sales Partners throughout the world. Extronics unrivalled understanding of wireless networking en-ables companies in the process industries to unlock vital data from hazardous areas.

These products will be on show at Africa Automation Fair (5-7 May at The Dome).

| Sept - Oct 2015


Upholding Mines’ Safety

Following fatal accidents recorded in some Zambian mines in the recent past, I have received mail from some

readers who feel not much is being done to protect the lives of miners.

It is always sad when workers lose their lives in accidents because that is a huge cost both to their families and companies.

If one considers the level of inter-depen-dency in Zambian families, it is not hard to imagine the misery which the death of a breadwinner causes.

A worker in Zambia, like in many devel-oping countries, does not only take care of the spouse and children, but many others in the extended family.

I am aware that every day, workers face many health hazards such as dust, gases, noise, vibration, and extreme tempera-tures.

One needs to remember that work-relat-ed accidents are costly and can have many serious direct and indirect effects on the lives of the workers and their families.

For the workers, some of the direct costs of injury or illness include the pain and suffering as a result of the injury or illness, loss of income, possible loss of a job, and healthcare costs.

The costs of occupational accidents or ill-nesses to employers are also huge. Some of the direct costs for employers include payment for work not done, medical and compensation payments, repair or re-placement of damaged equipment and machinery, and increased training ex-penses and administration costs.

Employers may also have to contend with possible reduction in the quality of work, reduction or a temporary halt in produc-tion, and reduced morale in the work force.

Yes, it is possible for many people to feel mining companies are not doing enough to safeguard the lives of miners, and some actually do not observe occupational safe-ty and health regulations.

But I am also aware of some ambitious programmes which some mining firms have put in place to avoid fatalities.

It is not possible for this column to high-light the safety programmes in all the mining houses, but I know, for example, that Barrick Lumwana has implemented important safety and health programmes and activities.

These include systems and policies, train-ing for all employees, special training for emergency response teams, performance measurement, risk assessment process-es, recognition programmes for safety achievement, and a steady flow of infor-mation that keeps people focused on con-tinuous safety improvement.

The company’s approach is outlined in the Safety and Health Management System, which identifies important elements for building a safe workplace and creating a strong safety culture.

At Konkola Copper Mines, there is a Safe-ty Management System whose objective is to eliminate fatalities and ‘lost time’ inju-ries.

The bedrock of the system is the workers’ empowerment policy called ‘if it’s not safe, don’t do it’.


The mining firm is carrying out inspec-tions, risk assessments, job observations on tasks being performed, accident simu-lations, fire drills, and safety talks.

At KCM there are safety notice boards, electronic information boards, incident/ accident investigations and reviews, and many other components, all aimed at safeguarding both the workers’ lives and company property.

Therefore, it is not fair to totally condemn mining companies whenever there are unfortunate incidents because they are in-vesting heavily in occupational safety and health programmes since they understand the likely consequences of not doing so.

For those mine investors who have low-ered their guard on this important matter, and those with safety programmes whose implementation is weak, they deserve to be chastised for exposing the lives of their workers to danger.

There has been uncertainty and discon-tent among some mine workers who have been threatened with retrenchments by employers who argue that their operation

al costs have gone up.

But Government has cautioned mining companies against alarming the nation with such threats in the wake of falling copper prices on the international market and the power deficit that Zambia is ex-periencing.

Labour and Social Security Minister peri-encing.

Labour and Social Security Minister Fackson Shamenda was in Kitwe recently where he met with chief executive officers (CEOs) of mining firms, and urged them to follow the right procedure in arriving at certain decisions.

The minister advised the CEOs to engage union leaders in order to analyse the chal-lenges the mining sector is facing so that veritable solutions are found.

He said the falling copper prices and the power deficit Zambia is experiencing are temporary and should, therefore, not be used as an excuse by the mining compa-nies to downsize their workforce.

Of particular note is Luanshya Copper Mine, which has sent more than 1,600 miners on forced leave and placed Baluba Mine on care and maintenance without following procedure.

It is indeed important that, despite any challenges they may face, employers fol-low the right process instead of rushing to raise workers” emotions.

I will end this week’s column by sharing human resource expert, Jeniffer Betts’ tips to small businesses seeking to get a com-petitive edge.

She writes: “As a small business owner you want to seek out the best and brightest employees, but how do you compete with big business? Here are a few tips that will give your business the competitive edge in recruiting and hiring.

“It’s time for you to get the word out. Sign up for career fairs in your area. Contact the local unemployment office or work-force centre; many offices have career fairs at least once a month.

“Reach out to the local colleges and uni-versities. Some college career fairs are free of charge, but you will most likely have to pay a fee to recruit at university fairs.

“There are multiple online job boards; some are fee based while others are not. You can utilise social media platforms for recruiting, including the many online career groups. You can also post on local college alumni boards.

“As resumes and/or applications start to come in you’re going to need a place to store and search through all of the infor-mation. This is the start of your applicant pipeline.

“You can either purchase or develop an applicant tracking system. When you’re starting out it might be beneficial to go with a more cost-effective option, such as building an Excel spreadsheet or utilising a low-cost online option.

“Depending upon the number of employ-ees you intend to recruit you may also want to seek out a few quotes from some of the more expensive providers.

“Now it’s time for you to develop your own pipeline. You have most likely been networking for business leads, so reach out to some of these same contacts and let them know you’re hiring.

“Legal compliance in recruiting, inter-viewing, and hiring is very important. If you don’t have an HR [Human Resource] background you may want to work with an HR consultant or a lawyer to ensure that your policies and procedures are de-veloped correctly. This will give you the framework for all future on-boarding.

“Small businesses have a distinct advan-tage because often times their structure is flatter. This means there are less levels of management and employees are able to have a larger influence on the company.

“Applicants want to know that they are applying to a company that offers them an engaging work environment. Utilising these tips will help your small business gain a competitive recruitment advan-tage!”

Dear readers, let us keep the link open as we share issues on labour and employ-ment.

This column is an initiative of the Minis-try of Labour and Social Security.


BAUMA CONEXPO AFRICA 2015Home of the Heavyweights, set to be a knockout success.

The bell for round one has sounded as BAUMA CONEX-PO AFRICA 2015, Home of the Heavyweights, kicked off at Johannesburg Expo Centre (NASREC).

The International Trade Fair for Construction Machinery, Build-ing Material Machines, Mining Machines and Construction Ve-hicles runs from 15 – 18 September 2015, offering Mining and Construction players a one-of-a-kind opportunity to meet, con-nect and expand their investment in Africa.

The largest event of its kind in Africa, BAUMA CONEXPO AF-RICA 2015 covers 68 000 square metres of exhibition space, with representatives from over 40 countries. Visitor numbers are ex-pected to exceed 20 000 over the next four days.

“We take your presence here in such impressive numbers as a pledge not only of hope but as a commitment to see to it that Africa overcomes its underdeveloped trap and launches a new paradigm of growth and development,” comments Honourable Lebogang Maile, MEC for Economic Development in Gauteng.In his opening address, Mr Maile applauded the organisers, BAUMA CONEXPO AFRICA, Messe München, and the Asso-ciation of Equipment Manufacturers (AEM), on their decision to host a second edition of the show in Africa, after its inaugural success in 2013.

“It confirms our belief that despite a range of challenges facing our economies, the world recognises that our continent has a lot to offer,” he says. Indeed, the overarching vision of BAUMA CONEXPO AFRICA is to connect Mining and Construction in-dustry players from across the world, with those from the South-ern African Development Community (SADC).

“As the only exhibition with this focus, BAUMA CONEXPO AF-RICA 2015 is in a position to offer exceptional perspectives and commentary on the regional development being driven through these two sectors,” comments Elaine Crewe, CEO of BAUMA CONEXPO AFRICA.

Pan-Africanism was highlighted throughout the opening pro-ceedings with both Mr Maile and the Honourable Yamfwa Mu-kanga, Minister of Transport, Works, Supply and Communica-tions and Government Chief Whip in Zambia, emphasising the importance of cross-border trade and cooperation.

“For this continent to get the kind of pay-off that it wants and that we want for it, it’s going to take trade facilitation,” adds Con-

sul General Christopher Rowan from the US Consulate General in Johannesburg. “Together we can accomplish much more for the benefit of all indus try stakeholders,” comments Megan Ta-nel, Vice-President of Exhibitions at the Association of Equip-ment Manufacturers (AEM).

“Partnering for growth is the underlying objective of BAUMA CONEXPO AFRICA, with decision-makers in the Mining and Construction sectors afforded a unique opportunity to network with industry players from across the continent,” says Crewe.

During his address, Mr Mukanga talked about the Zambian gov-ernment’s commitment to several public-private partnerships to develop the country’s social and economic infrastructure, in-cluding transport, energy and real estate.

“My government has taken the construction industry as a key driver for economic growth in the last ten years,” he adds. The Zambian government has also taken climate change into consid-eration and efforts are underway to promote sustainable building practices.

“With the industry’s growing focus on the environmental impact of mining and construction, IFAT Environmental Technology Forum Africa is perfectly situated alongside BAUMA CONEX-PO AFRICA 2015,” comments Crewe.

The Forum, which includes 4 500 square metres of exhibition space and more than 100 exhibitors, is focused on new technol-ogies and solutions for the mining and construction industries with regards to water, sewage, refuse and recycling.

Stefan Rummel, Managing Director of Messe München, officially opened IFAT Environmental Technology Forum Africa along-side BAUMA CONEXPO AFRICA 2015 on Tuesday 15 Septem-ber.

“As a trade fair focused on Mining and Construction in Africa for Africa by Africa, BAUMA CONEXPO AFRICA 2015 is the ideal platform for decision-makers to build on relationships and develop new business,” says Crewe.

“As the organisers of BAUMA CONEXPO AFRICA 2015, we have ringside seats this week and look forward to watching in-dustry heavyweights from across the continent come together to meet, connect and expand their contribution to the African development story,” she concludes.


Scenes From Bauma

Conexpo Africa 2015

BAUMA CONEXPO AFRICABAUMA CONEXPO AFRICA, International Trade Fair for Construction Machinery, Building Material Machines, Mining Machines and Construction Vehicles, is the biggest event for the sector in Africa—it covers an exhibition area of 68,000 square meters. The premiere of bauma Africa in September 2013 at-tracted 754 exhibitors from 38 countries and 14,700 visitors from over 100 countries.

BAUMA CONEXPO AFRICA takes place on a three-year cycle: the next edition is from September 15 to 18, 2015, at the Johan-nesburg Expo Centre (JEC).

Construction machinery trade shows of Messe MünchenOrganizing trade shows for the international construction ma-chinery sector is a core competence of Messe München. Its port-folio includes not only the world´s leading trade show, bauma in Munich, and the brand event bauma China in Shanghai—it also cooperates with the Association of Equipment Manufactur-ers (AEM) in the organization of BAUMA CONEXPO INDIA in Delhi and BAUMA CONEXPO AFRICA in Johannesburg.

Messe München Messe München is one of the world’s leading trade-show compa-

nies. It organizes some 40 trade shows for capital and consumer goods and key high-tech industries in Munich alone. 14 of those events are number 1 in the world in their respective industries. Each year more than 30,000 exhibitors and some two million vis-itors take part in events held at the Messe München trade-fair center, the ICM – Internationales Congress Center München and the MOC Veranstaltungscenter München. In addition, Messe München International organizes trade shows in China, India, Turkey and South Africa. Messe München has a global business presence with affiliates in Europe, Asia and Africa and more than 60 foreign representatives serving more than 100 countries.

About the Association of Equipment Manufacturers (AEM)AEM is the North American-based international trade group representing the off-road equipment manufacturing industry. AEM is headquartered in Milwaukee, Wisconsin, with offices in the world capitals of Washington, D.C., Ottawa and Beijing. It represents more than 850 companies in the agriculture, con-struction, forestry, mining and utility sectors.

AEM has an ownership stake in and/or manages several world-class exhibitions, including CONEXPO-CON/AGG, one of the world’s largest gathering places for the construction and con-struction materials industries.


More Pictures From Bauma

Conexpo Africa 2015


MOVERS and Shakers

MINEMAKERS HOPES FOR EARLY START AT BAOBABMinemakers is hoping to start bulk sampling activities at its

newly acquired Baobab project, in Senegal, before the end of the year, if shareholders approve the transaction.

Pending shareholder approval later this month, Minemakers will ac-quire 100% of the project from Agrifos Partners LLC, an affiliate of the company’s major shareholder Vulcan Phosphates LLC.

Agrifos will gain 100 million ordinary shares, 80 million unlisted options and two sets of 40 million performance-based share rights from Minemakers as part of the scripbased deal which allows the latter to retain its strong cash position of almost $20 million at the time of print. Minemakers had been involved in the Baobab project since early 2014, undertaking geological work on behalf of Agrifos. The com-pany has wasted no time advancing Baobab since making a formal play for the project in April and was granted a small mine permit for a 5sq km area of the Gadde Bissik prospect less than a month later.

The permit allows unlimited mining and processing within the granted area, which carries an inferred resource of 25mt @ 23% P2O5. It is valid for three years, but is renewable upon depletion of mineable resources and can be upgraded to a larger size. Infill drilling is ongoing outside of the permitted area at Gadde Bissik to convert inferred resources of 68mt @ 22% P205 to indicated status.

Minemakers managing director Cliff Lawrenson said the project was progressing at such a rapid rate that the company would begin bulk sampling some time during the next quarter.

“It took us less than two months to get the small mine permit from application to grant and that allows us to get into mining a lot quick-er than going through all the loops you have to for a big mine per-mit,” Lawrenson told Paydirt.

“The restriction is you pick a 5sq km area within your tenement and mine as much as you can out of it. Our earlier indications are there is sufficient material [in the permitted area] to run a mine at 500,000 tpa for at least 10 years.”“We still have some A$15-million in the bank to get the project go-ing. Depending on how we go about the project development, if we are more aggressive, we might need to raise some cash, but if we go

about it in a slower fashion, then we would be sufficiently funded,” Lawrenson said. “But the idea is to get into production as soon as we can, and to protect margins.”

In May this year, Minemakers announced a maiden inferred mineral resource of 68-million tonnes, grading 22% phosphorus pentoxide (P2O5) at the Gadde Bissik prospect, which forms part of the greater Baobab project.

Minemakers also intends to distribute samples from the early bulk mining campaign to potential off-take partners. The acquisition of Baobab – to be ratified by shareholders on August 21 – ends the company’s 18-month search for a near-term production asset. De-velopment of the Wonarah project in the Northern Territory has been on hold during that time as the company awaits commercial-isation of the improved hard process (IHP) kiln-based technology from JDCPhosphate Inc.

Logistical issues have also impacted the project’s development. Wonarah is about 1,300km – 300km by road and 1,000km by rail – from Darwin port and the average cost to move material over that distance and configuration is $75-80/t. Lawrenson also said that ini-tial plans for the project would consist of a series of smaller pits, rather than a large openpit operation, with phosphate production slated to start within 12 months.

Minemakers had identified simple wet separation screening as the best processing method at Baobab, given the nature of the ore at the project. This would mean a much lower capital expenditure since there would be no need for a flotation plant, while operating costs would also be lower.The full mining permit would require Minemakers to give a 10% equity holding in the project to the government of Senegal, while a government nominee would purchase a further 15% stake in the project.

The full mining permit, however, came with a number of tax conces-sions, which Lawrenson said would cancel out any losses incurred in handing over a 10% stake in the project to the local government.

...End.


Zambia expects slower economic growth and a bigger fis-cal deficit this year as weak global demand for copper hits exports, documents released by the Ministry of Finance

show.

Global commodity prices have dropped sharply on concerns that China’s economy is slowing after years of rapid development that has sucked in metal imports.

“In the domestic economy, real GDP growth is projected at 5.0 percent in 2015 down from the projected target of 7.0 percent,” Treasury secretary Fredson Yamba said in a statement on the proposed 2016 to 2018 medium term expenditure framework.

Copper export earnings dropped 29.9 percent to $2.6 billion in

the six months through June, compared to the first half of 2014, the ministry said.

Zambia, which aims for gross domestic product (GDP) growth of 6 percent, forecasts growth will return to its target in 2016, and rise to 6.5 percent in 2017 and 6.8 percent in 2018.

It sees its budget deficit exceeding its target of 4.6 percent of GDP this year, coming in at 5.5 percent in 2015 and 5.2 percent in 2016.

The finance minister asked parliament in June to almost double Zambia’s external borrowing limit to 60 billion kwacha ($7 bil-lion) to finance its budget shortfall.

The mining industry requires the movement of large volumes of ma-terial on an hourly basis. The pro-

cess starts with ore extraction, through crushing and grinding to mineral pro-cessing and metal production and then the disposal of waste material or tailings.

The mining industry’s embracement of technology has long been one of its most defining - and impressive - characteristics.Even amid economically straitened times and sluggish, post-bull run market condi-tions, players continue to seek to improve their productivity based on the wizardry of dedicated technology and innovation.

Aside from the obvious productivity advantages, sound investments in tech-nology can also drive down costs, make operations safer and offer a well-defined response to environmental imperatives.

If you were to pay a visit to a developed mining plant today, you would encoun-ter a wide spectrum of products, such as traveling wagon loaders, stalker reclaim-ers, wagon tipplers, feeders, crushers and screen equipment - all utilised for solid bulk material handling operations.

The mining industry’s enduring mod-ern-day love affair with automation has

also played its part in the growth of the bulk material handling market.

Whether underground or open cut, min-ing always takes place in a hazardous en-vironment. Moisture, corrosive and ignit-able fumes, abrasive dust, and the risk of rock face collapse are all real challenges. A productive mine works fast and rarely stops as ore is sent to processing as soon as it is extracted.

Downtime can halt an entire operation and disrupt demanding schedules,there-fore forklifts, trucks, trailers and other lifting and material handling solutions should help to manage you manage your industrial challenges. These material han-dling and lifting equipment always need to be designed for their specific circum-stances.

They should be able to carry extra-heavy and dangerous loads, they must also be protected against corrosion from heat, dust, moisture, and constant use.

ForkliftsChoosing the right forklift can make all the difference between a productive en-vironment or a sloppy one, and a well -maintained, well functioning forklift will mean quick and health operations. When

choosing forklifts the following should be considered i.e power of the forklift, load capacity and lift height. Considering the power of the forklift is quite complex. For example an electric forklift has a longer life span, offers greater maneuverabili-ty and relatively high cost of operation /maintenance.

Gas forklifts on the other hand offer lower maintenance costs and a life span .Where-as diesel operated units are quite powerful and offer low running costs when com-pared to other units.

Checking load capacity upon buying a forklift is also importanr and this can be checked on the data plate.

Knowing your required lift height is log-ically important and it will affect your unit’s load carrying capacity in quite some way.

Trucks and TrailersMining include both local and regional and sometimes even long-haul transpor-tation of rocks, excavation material, earth, sand and minerals.

It’s a business that puts trucks to the test when it comes to durability, reliability and flexibility.

ZAMBIA FORECASTS LOWER GROWTH

MATERIAL HANDLING AND LIFTING EQUIPMENT- MINING FORKLIFTS, TRUCKS AND TRAILERS

Embracing TECHNOLOGY

Software Firm Urg-es Miners to Embrace TechnologyMining companies in the continent

have been encouraged to adopt modern database management systems to enhance operations.

Pedro Guerreiro, Head of Sales: Energy and Natural Resources at SAP Africa, the multinational software corporation, said adopting such technologies would in-crease their income-generating capacities.

“Mining has a lot of useful chaos - the means to shape that resides in big data and the Internet of Things,” said Guerreiro.

“The bedrock of this approach is how mining firms are able to establish re-al-time and day-to-day insights to their operations, discover efficiencies through automation, respond proactively to chal-lenges on the ground, and manage value chains in new ways. Above all, it opens the door towards building new business methodologies for the mining operations of tomorrow.”

Guerreiro pointed out that mines move assets and commodities through a large

web of suppliers and clients. Great benefits are being found when these interactions are automated and orches-trated through a single source-to-source supplier platform.

“Automated invoice, verification and bill-ing systems enable mines to spot discrep-ancies as well as take advantage of ear-ly-payment bonuses. Automated logistics also deliver efficiency, such as fine-tuning transportation loading with exact quanti-ties.”

Guerreiro said by using Internet of Things platforms, sensors and predictive analyt-ics could reduce time spent on the main-tenance of assets.

“Breakdowns can be predicted and staff directed in real-time through mobile plat-forms to address failures,” he said.

According to SAP’s own research, such solutions can reduce an operation’s annu-al maintenance costs by over 30 percent.

“Sensors and big data can also ensure the

optimal use of mining assets - not just on-site, but across the company’s entire eco-system. Underperforming assets can be identified and allocated across the scope of all operations,” said Guerreiro.He highlighted the importance of a tech-nology solution, which must illuminate an operation’s financial character, provid-ing tools and insights for managers.

“It’s not only a concept that has shown remarkable improvements for countless industries but is the future of technolo-gy. Instead of relying on the Diaspora of machines, software suits and fragmented data pools of the past, modern business solutions resemble SAP HANA,” said Guerreiro.

SAP HANA is an in-memory, column-ori-ented and relational database manage-ment system. Guerreiro highlighted the system’s effectiveness.

“It requires a focused and specialised solution to get the job done both from a technology view and the human support and expertise that makes it happen.”

| Sept - Oct 2015


The mining industry is “far behind” in terms of using technology and innovation to deal with indus-

try-related challenges such as dropping ore grades, high-energy costs and lack of reliable energy supply, says bespoke mining enterprise software engineering solutions developer Stone Three Mining Solutions CEO Louis Marais.He says Stone Three Mining Solutions believes that mines need to place a new focus on innovation and technology to advance their operations. “As technology companies we have an im-portant role to play in transforming the mining industry,” Marais says. “To make this happen, in a somewhat re-luctant industry, the only way is to build long-term relationships based on trust. Additionally, you need to empathetical-ly understand the challenges your clients face.” Stone Three Mining Solutions optimises mineral processing plants through ma-chine vision-based smart sensor technol-ogy, consultative data analysis and ad-vanced process control services.The company develops and engineers

machine vision solutions including froth sen-sors, particle size analysers, volumet-ric material analysers and bubble sizers that measure and optimise mineral ex-traction processes. Marais says the company’s business model is based on optimisation consulting – an incremental set of value offerings that build on one another, starting with a ba-sic needs analysis and ending with imple-menting advanced control. “We provide a full range [of services], from the needs analysis, to the sensors right through to advanced control. Run-ning a mine is a complex business, so we take ownership of innovation in our cli-ents’ minds,” says Marais.He explains that Stone Three Mining Solu-tions starts by understanding the client’s needs, supplies the right sensors and then analyses how plant behaviour is reflected in the data provided by the sensors. This enables the company to design a con-trol philosophy for the plant and, finally, implement it. For example, when correlating sensor data with blasting patterns, the blasting methods determine the rock fragments,

and that has a big effect on downstream processes. Therefore, by monitoring the particle size distribution of ore at various stages in the crushing circuit, the com-pany is able to determine how blasting affects the downstream process, explains Marais.He further says that it is convenient for a client to be able to get all the different services it needs from one service provid-er. For plant optimisation, Stone Three Mining Solutions can supply a variety of sensors, as well as provide a particle size analyser in one place and a froth sensor somewhere else. He says Stone Three Mining Solutions currently provides mining and metals company First Quantum Minerals’ mine in Kansanshi, Zambia, with six particle size analysers and six froth sensors. The company is also currently providing platinum producer Anglo American Plat-inum’s Mogalakwena platinum mine, in Limpopo, with five particle size analysers and 34 froth sensors, which enables the mine to closely monitor and manage its process performance.

Mines Advised To Place New Fo-cus On Innovation And Technology

| Sept - Oct 2015

Minerals are a nonrenewable resource, and because of this, the life of mines is finite, and mining represents a temporary use of the land. The mining life cycle during

this temporary use of the land can be divided into the following stages: exploration, development, extraction and processing, and mine closure.

Exploration is the work involved in determining the location, size, shape, position, and value of an ore body using prospect-ing methods, geologic mapping and field investigations, remote sensing (aerial and satellite-borne sensor systems that detect ore-bearing rocks), drilling, and other methods. Building access roads to a drilling site is one example of an exploration activity that can cause environmental damage.

The development of a mine consists of several principal activi-ties: conducting a feasibility study, including a financial analysis to decide whether to abandon or develop the property; design-ing the mine; acquiring mining rights; filing an Environmental Impact Statement (EIS); and preparing the site for production. Preparation could cause environmental damage by excavation of the deposit to remove overburden (surface material above the ore deposit that is devoid of ore minerals) prior to mining.

Extraction is the removal of ore from the ground on a large scale by one or more of three principal methods: surface mining, un-derground mining, and in situ mining (extraction of ore from a deposit using chemical solutions). After the ore is removed from the ground, it is crushed so that the valuable mineral in the ore can be separated from the waste material and concentrated by flotation (a process that separates finely ground minerals from one another by causing some to float in a froth and others to sink), gravity, magnetism, or other methods, usually at the mine site, to prepare it for further stages of processing.

The production of large amounts of waste material (often very acidic) and particulate emission have led to major environmental

and health concerns with ore extraction and concentration. Ad-ditional processing separates the desired metal from the mineral concentrate.The closure of a mine refers to cessation of mining at that site. It involves completing a reclamation plan and ensures the safe-ty of areas affected by the operation, for instance, by sealing the entrance to an abandoned mine. Planning for closure is often re-quired to be ongoing throughout the life cycle of the mine and not left to be addressed at the end of operations.

Abandoned mines can cause a variety of health-related hazards and threats to the environment, such as the accumulation of hazardous and explosive gases when air no longer circulates in deserted mines and the use of these mines for residential or in-dustrial dumping, posing a danger from unsanitary conditions. Many closed or abandoned mines have been identified by federal and state governments and are being reclaimed by both industry and government.

The Mining Life Cycle

Disussed mine in Johannesburg, South Africa -City of Gold.

Environment FEATURE


P00136.1.indd 1 2014/08/25 2:09 PM

| Sept - Oct 2015


Fact And Fantasy About China’s Investments In Africa New Brookings Report Debunks Myths

China’s increased trade with and investment in Africa has boost-ed the continent’s growth rate, but has also generated controver-sy.A new report published by the Brookings Institution, a Washing-ton, DC, think tank, seeks to take a nuanced view of China’s out-ward direct investment (ODI) in Africa by investigating China’s macro and micro ODI data in Africa.The researchers gleaned information from a China Ministry of Commerce (MOFCOM) database on all Chinese firms that in-vested in Africa between 1998 and 2012, which provides an ac-curate picture of what small- and medium-sized private Chinese firms are doing in Africa.China’s involvement in Africa has elicited accusations of a new form of colonialism. A former Nigerian central banker, writing in the Financial Times, complained that China was setting up huge mining operations and building infrastructure, but “they have done so using equipment and labor imported from home, without transferring skills to local communities. So China takes our primary goods and sells us manufactured ones. This was also the essence of colonialism.”The Brookings report, entitled “Why is China investing in Afri-ca? Evidence from the firm level,” and authored by David Dollar, Heiwai Tang, and Wenjie Chen, found that data on China’s ODI

in African countries show that China’s share of foreign invest-ment is small, around three percent, but growing rapidly.China is attracted to resource-rich countries like western invest-ments, but China’s ODI, unlike the west’s, is more concentrated in countries with weak governance environments. The share of Chinese investment in the poor governance environments there-fore appears to be oversized.Contrary to common perceptions, few of China’s projects are in natural resource sectors although some of the very largest deals do involve natural resources. “Most projects are in services,” says the report, “with a significant number in manufacturing as well.” The Brookings analysis shows that Chinese ODI is relatively con-centrated in the more skill-intensive sectors in skills-abundant countries, but the less capital-intensive sectors in capital-abun-dant countries.“These patterns are mostly observed in politically unstable coun-tries,” says the report, “suggesting stronger incentives to seek profits in tougher environments.”The predominance of Chinese ODI in services is related to the recipient countries’ natural resource abundance, according to the report, which is consistent with the profit-driven nature of Chinese ODI.

MINING IN AFRICA: Ex-ploiting Natural Resources

Isn’t The Only Goal Of China’s Investments On The Continent,

Explains A New Report From The Brookings Institution.


Thanks to Erik at Lawyers, Guns and Money, we are pointed to a story out

of Zambia where, courtesy of a Canadian mining company, the local population has been forced into mandatory civil-defense drills for the Apocalypse.

When I visited, I could smell and even taste the pollution.I’m sorry, BBC reporter, but here at Mon-stro Cable News we will have to hold your story until we find an industry lobbyist who can neither smell nor taste.

Hundreds of villagers who claim copper mining operations in the area have poi-soned their water source and destroyed farmland are taking Zambia’s biggest cop-per mine, Vedanta Resources Plc, to court. Leaked documents, that the BBC has seen, appear to show that Vedanta Resourc-es - through its Zambian based Konkola Copper Mines (KCM) - have been spilling sulphuric acid and other toxic chemicals into the water sources. A whistle-blower, who worked for 15 years with KCM, al-leges that since Vedanta bought the mine in 2004, corners have been cut to save the costs of running operations. “I see an environmental catastrophe coming our way,” said the source, who asked not to be named. “The lives of the people will be shattered.”I decided to speak out because I could no longer be part of the destruction any more because the next generation will not have kind words for us.”I think it was the sulphuric acid that really caught my eye.

Leo Mulenga’s only source of income used to be farming. The 65-year-old showed me cassava plants which normally reach up to four meters in height. His were not even one metre tall and they were dying. “I used to grow cabbages, potatoes, to-matoes and bananas but now, there’s no future here - only poverty and suffering for everyone because this land is damaged

and spoiled,” said Mr Mulenga. Walking around the dry and dusty farmland, I saw a thick sludge of copper sulphate residue.MORE FROM ESQUIRE

SUPREME COURT UTTERLY BLOWS IT ON AIR POLLUTION

‘THE OCEANS ARE BASICALLY ONE GIANT TOILET BOWL’

CHINA: SMOG IS GOOD FOR YOU. REALLY, THAT’S OUR ST…Monstro Cable News here again, BBC re-porter. Hold that quote until we can find an industry-friendly scientist to say you were really walking in cinnamon unicorn dust.

Paralegals from a British law firm Leigh Day recently visited the copper belt to gather testimonies from 1,800 members of the community in Chingola mining town. The villagers have joined forces to take their pollution claims to the High Court in London, where proceedings have been issued against Vedanta and Konkola Copper Mines KCM. KCM insist that it is minimising the environmental impact of its operations because, it says it “cares for its employees, the environment and communities around its mining areas”.But this is not the first time Vedanta has faced facing legal action. In 2011, the Lusaka High Court ordered Vedanta Resources and KCM to pay approximately $1.4m (£900,000) to 2,000 residents of Chingola after sulphuric acid and other chemicals spilled into the confluence of the Mush-ishima stream and the Kafue River in 2006.In his ruling, the judge said Zambi-ans “should not be dehumanised by greed and crude capitalism which put profit above human life.”I know we’re all living in the golden age of international trade and economics and that you can’t make omelets without breaking eggs, even if they’re not your

eggs, and even if the eggs are really kids and old men who have spent their lives building a small farm on land that is now a fcking chemistry set. But, if we’re going to have a world of corporations instead of nation-states, is there no reason why we can’t have an International Environmental Crimes Court built along the lines of the International Criminal Court and the In-ternational War Crimes Tribunal? Here’s a list of international courts. You will note that most of the courts dealing with eco-nomic issues are there to adjudicate trade disputes. Trade disputes? Sweet mother of god, these people in Zambia are being poisoned, day after day, by decisions made in cities and countries of which many of them have never heard. How is that differ-ent from carpet-bombing the place – or, not to cut too close to home, vaporizing a local goatherder with a Hellfire fired from a drone being controlled by some desk-head in Missouri?

It turns out that people have been asking this question for a while.

Are there any reasons to take seriously yet another proposal for an international en-vironmental court? On the face of it, there seems to be little gained from another at-tempt to garner support for a court which, following more than 20 years of advocacy, has not yet materialised. In a recent ac-count of how international courts and tri-bunals contribute to the development of international environmental law, the idea of an international environmental court is described as being somewhat ‘naïve’ and ‘quixotic’ by virtue of the many proposals bearing little resemblance to existing in-ternational courts.There should be this court and this court should have its own prison, and it should not be a comfortable prison. It should get its drinking water from Chingola.

Canadian Mining Company Polluting Zambia


Is Now The Perfect Time To Buy Amur Minerals Corpo-ration, Fresnillo Plc And Pan African Resources plc?One of the challenges of investing is being successful with re-

gard to timing. Clearly, investing while the market is high or a sector is hugely popular could lead to losses if the outlook de-teriorates. Similarly, buying unloved stocks with a wide margin of safety is also a sound means of putting the risk/reward ratio firmly in your favour.

So, while the outlook for the resources sector is rather down-beat, now seems to be a good time to buy a range of high quality

companies in that space. Certainly, things could get worse be-fore they get better – notably, a fall in the price of commodities could take place. However, in the long run, there is likely to be an improvement from the present situation, simply because no downturn lasts in perpetuity.

As a result, a company such as Fresnillo (LSE: FRES) seems to be a worthwhile purchase. It is the largest silver producer in the world and, unlike a number of its mining peers, has remained

| Sept - Oct 2015

profitable throughout recent years. Clearly, though, the falling price of silver since 2011 has caused Fresnillo’s pretax profit to decline from over £1bn in 2011 to just £164m last year, which is a fall of 84% in only three years. As a result, the company’s share price has slumped from over £20 per share to less than £6 per share in the same time period. However, Fresnillo seems to be worth much more than its cur-rent share price. That’s because it is financially sound, has a strong asset base and is expected to begin a turnaround in profitability this year.

In fact, its earnings are forecast to rise by 145% this year, followed by further growth of 100% next year. This means that, while Fres-nillo trades on a price to earnings (P/E) ratio of 49, it has a price to earnings growth (PEG) ratio of just 0.2, which indicates that the timing is right to buy a slice of the business for the long haul. Similarly, gold mining company Pan African Resources (LSE: PAF) has been hurt by a lower gold price. This has been at least partly responsible for falling profit in recent years, with the com-pany’s bottom line declining by 32% last year and being forecast to drop by a further 44% in the current year.

However, next year is expected to see a strong turnaround from the South Africa based miner and exploration play. That’s be-cause its earnings are due to rise by 89% and, as a result, it trades on a forward P/E ratio of just 4.4. And, while the price of gold could continue to fall after reaching a five-year low earlier this year, Pan African Resources appears to offer a sufficient margin of safety to make now a good time to buy it even if the price of

the precious metal does disappoint.

Meanwhile, Amur Minerals (LSE: AMC) remains a mining play with very bright long term prospects. In the near term, financ-ing has the potential to cause investor sentiment to be somewhat dampened, since there will inevitably be a degree of uncertainty regarding the availability of capital and the price which Amur will need to pay to secure it.

And, while the location of the Kun-Manie project is somewhat difficult from a logistical standpoint, the news flow regarding the drilling programme that is being undertaken has been very pos-itive. This has the potential to counteract concerns regarding financing and logistical challenges posed by the location of the mine in the shorter term, which makes now a good time to buy a slice of the business ahead of what is expected to be a very profitable future.

Of course, Amur, Fresnillo and Pan African Resources aren’t the only companies that could boost your portfolio returns. Howev-er, finding the best stocks at the lowest prices can be challenging when work and other commitments get in the way.

End.

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DRC Copper Mine Installs Jet Edge 5-Axis Waterjet Cutting SystemWaterjet manufacturer Jet Edge, Inc. and its Africa repre-

sentative Jetstream Cutting Solutions CC announced to-day that operators of a remote copper mine in the Democrat-ic Republic of Congo (DRC) are planning to double the mine’s productivity with the help of a new Jet Edge Edge X-5® 5-axis waterjet.

The DRC mine operation, which is at least a three week’s drive from Johannesburg, South Africa, plans to use the Jet Edge wa-terjet system to speed up the completion of a copper processing plant.

The Jet Edge machine is the mine’s second waterjet system. In 2012, they installed a new Jetstream 3-axis waterjet, powered by a 90,000 psi (6200 bar) 50hp Jet Edge X-stream xP90-50 hydrau-lic intensifier pump.

“They run their first machine 24/7,” said Jetstream Cutting Solu-tions Director Malcolm Cruickshank. “The Jet Edge X-Stream pump was key to the success of the first machine because they could utilize the higher pressure to increase productivity.”For their second waterjet system, the mine operators selected Jet Edge’s premiere 90,000 psi (6200 bar) EDGE X-5 system with dual independently programmable 5-axis cutting heads and laser plate mapping system, Aquavision Di industrial PC controller, and 5-axis waterjet cutting software.

Cruickshank noted that the mine officials chose a Jet Edge sys-tem for their second machine based on the reliability of their first Jet Edge pump, and Jet Edge’s ability to quickly supply spare parts when needed.

“Reliability is very important to them due to the remoteness of

the mine,” he said. “They appreciate the speed with which Jet Edge can supply spares.”

Jake Hall, a Jetstream subcontractor and director of Mobile Dig-ital Solutions of Sylvania, Australia, oversaw the installation of the Jet Edge system and trained the mine’s waterjet operators how to use the new 5-axis machine.

“The EDGE X-5 is a good system,” Hall noted. “It’s intuitive and easy to operate. I’ve seen lots of systems in my 11 years working with waterjets and it seems to do the job very well and is easy to teach.

The Aquavision Di controller is extremely reliable. The software is great. It solves a lot of the problems of other CAD/CAM soft-ware. It’s been specifically designed with waterjetting in mind. Lead ins and outs are easy and it’s easy to nest multiple parts. Most importantly, you’re not stuck to a certain order. With some software, if you miss one step, you have to start all over again.

Jet Edge’s software is flexible and it’s not labor intensive. The li-brary of materials is good and the speed control is good.”

Hall added that he has been very impressed with Jet Edge’s X-Stream intensifier pumps, service and training.

“The X-Stream pump is bullet-proof,” he said. “We feel comfort-able that we have a good support network and that we can call Jet Edge any time, day or night.”

Find Out MoreFor information about Jetstream Cutting Solutions CC, visit:www.jetstreamcutting.co.za

| Sept - Oct 2015

FMDZ | September - October 2015 | Page37 | Sept - Oct 2015


Technology for Visualizing and Analyzing Control System Traffic to Verify its Integrity- Quick detection of security incidents that threaten critically important infrastructure -

Yokogawa Electric Corporation (Yokogawa, President: Takashi Nishijima) announces that it has worked with the National Institute of Information and Communications Technology of Japan (NICT, President: Dr. Masao Sakauchi), Professor Yasuo Okabe of Kyoto University, and former Associate Professor Hiroki Takakura of Kyoto University to jointly develop a technology that visualizes and analyzes control system traffic to verify its integrity. This technology, which has been integrated by Yokogawa in an industry-first network healthiness check service, can quickly detect security incidents such as a malware infection. This combines visualization technology with the collection and analysis of traffic data to verify the integrity of control system networks, and is expected to im-prove the security of control systems used in public utilities.

[Background]Control system security has become a serious concern in recent years due to the proliferation of cyber-attacks targeting critical-ly important infrastructure like public utilities: electric power, gas, and water. As control systems increasingly rely on operating systems and standard protocols that are both open and versa-tile, cyber attacks are very common now with various infection routes not only via the Internet but also via USB memory devices and other media, making it difficult to prevent all malware infec-tions. Therefore, there is an urgent need for a technology that can quickly detect security incidents. Such technology should not have an impact on control system availability (stable, continuous operation) as these systems need to keep operating without in-terruption for very long periods, even as long as several decades.

[Achievements]ICT, Yokogawa, and Kyoto University jointly developed a tech-nology for visualizing and analyzing control system traffic to verify its integrity and quickly detect security incidents such as malware infections.Unlike general information systems where the amount and di-rection of traffic keep changing, it is easier with control system networks to identify when traffic conditions are normal as these systems are designed and used for a specific purpose. We focused on this characteristic.

Our technology saves data on normal control system traffic con-ditions as a white list. With reference to this list, the technology monitors the dynamic state of the control system network to de-tect any abnormalities such as an increase in traffic or commu-nication with an unknown IP address that could be caused by malware. Furthermore, by using NIRVANA*1, a real-time traffic visualiza-tion system developed by NICT, we improved this technology to comply with unique communications protocols used by control systems. As a result, this technology can identify traffic condi-tions much easier when an abnormality is identified (Figures 2 and 3).

Since there is no need to install detection software on each con-trol system host (or server), this technology is easy to be intro-duced and does not impact control system availability.

[Future perspectives]This technology has been integrated in Yokogawa’s cyber security support service for control systems (URL: http://www.yokoga-wa.com/vps/gsv/gsv-netck-en.htm), and is expected to make the control systems used in critically important infrastructure more secure. With the aim of making the world a safer place, we will continue researching and developing cyber security technologies for control systems.

Figure 1 Schematic diagram of the developed technology.


Figure 2 Example of control network visualization (under normal conditions).

Figure 3 Example of control network visualization (when an incident has occurred)In this case, a host in control room A has become infected with malware and there has been an increase in network traffic.

| Sept - Oct 2015

Condra has completed load tests on two 25-ton headgear cranes manufactured at the company’s Germiston works for

Mopani Copper Mines’ Sinclinorium shaft.The tests were witnessed by a representative from Mopani Cop-per Mines (MCM) during June ahead of delivery this month to the Nkana Mine, in Kitwe, where the new shaft is scheduled for commissioning toward the end of this year.

The two headgear cranes are part of a bigger order that includes two 70-ton maintenance cranes for the project’s winderhouse. Condra will begin work on these in August.

MCM’s headgear cranes were manufactured as identical ma-chines with very high lifts of over 80 metres. They feature high tensile ropes and incorporate materials of the best possible qual-ity on critical components. Gearboxes, for example, are made of 36B case hardened stainless steel. Live axle drives have been used throughout.

Condra has manufactured several cranes for Mopani Copper Mines over the years, including overhead cranes, high lift ma-chines and hoists. Managing director Marc Kleiner said that this customer had named reliability and rapid service response among the reasons for awarding the order for Synclinorium’s headgear and winderhouse cranes to Condra, which submitted a tender price higher than those of two rival bidders.

Rapid response is supplied by company agent EC Mining, which is based in the Copperbelt and able to react quickly to service calls using spare parts held in stock.

Kleiner said competitor manufacturers in the northern hemi-sphere generally found it difficult to respond promptly to service requirements in Zambia.

“Last year, we lost the order for Synclinorium’s workshop cranes to a European company, but there have apparently been long waits for spare parts for these cranes when they were needed,” Kleiner said.

“Copper mining companies need maximum production because of the currently depressed copper price, but this is dependent on the reliability of all machinery installed in the mines. There is no margin for excessive machine downtime.

“It is a fact that the ability of some of our competitors to respond to needs and realities of African continent lags behind that of

Condra. I am pleased that we have been able to add Synclino-rium’s headgear cranes to our long list of successful installations throughout this continent,” Kleiner said.

An interesting aspect of manufacture of the MCM cranes was the flexing of factory production schedules in order to meet time-to-site requirements. According to Kleiner, this is something that Condra is accustomed to doing; whereas most rival companies tend not to be as accommodating.

Africa’s market for very high-lift cranes such as those for MCM has for many years been dominated by Condra, which designs these machines around the company’s durable and robust K-Se-ries hoist range, proven to be dependable under conditions of in-creased mechanical strain associated with high-lift applications.The modular design of the K-Series allows rapid modification to specific high-lift requirements, resulting in delivery times that are usually the shortest available.

Competitive prices are the result of long production runs of stan-dard parts.Condra uses silumin rotor cores to enhance K-Series motor-starting torque in the high-lift role, and has developed variable speed control levels on the drives to enable precise load positioning even on lifts of 100 metres and more.

Hoist speeds of between zero and 18 metres per minute, and travel speeds of between zero and 200 metres per minute, are possible.

Condra manufactures to ISO 9000 standards, and complies with the standards of ISO 14000 and ISO 18000.

Mopani Aquires Condra Sinclinorium Headgear Cranes

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