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NEWS&INSIGHT
Advertisers
As gold demand rises, South Africa can potentially recover
30 Moz of gold from dumps
Eskom system operator doesn’t foresee grid instability should
both Koeberg units be offline simultaneously
75 MW Northern Cape solar farm startup expected by mid-2025
Resolving locomotive supply impasse with Chinese firm
crucial, says Transnet Freight Rail CEO
South Africa dare not fail in securing future demand for platinum
Canada announces critical mineral projects funding criteria
Coal funding landscape challenging but investors keen on
sustainability initiatives
Ever-expanding Maltento eyes opportunities in aquaculture
and cosmetics
Technology group 4Sight bounces back after tough period
AN
Aberdare Cables
African Critical Minerals Summit
AIRCURE
ASP Fire
Automechanika
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inDrive launches ‘name your price’ freight service in SA
Vodacom investing more than R500m to expand connectivity
in Eastern Cape rural areas, townships
Africa to be fastest-growing fintech region as global industry
grows to $1.5tr by 2030
Petra remains confident of one-million-carat increase in
production in 2025
Grid still seen as key risk for upcoming renewables round
despite reduction in govt guarantee
Tailings regulations critical aspect of MPRDA review
Scatec announces renewable energy financing agreement
with CFM
Cape Town startup seeks to replace plastics with home
compostable biomaterials
Bilfinger Intervalve Africa
BMG
Bray Controls Africa
Fluid Power Valve Technologies
FORD
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| ENGINEERING NEWS & MINING WEEKLY | August 4 –10, 2023
The paper for Creamer Media’s magazines
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paper and printer are FSC certified.
AN
UP FRONT
FIRST WORD
Stop school-going age construction mafia from
roaming the streets during school hours
Creamer Media’s first-hand experience of the
construction mafia pointed to those causing
disruption being youngsters of school-going age who
are free to roam the streets during school time to
protest, prevent entry and burn tyres in a country where
education is meant to be compulsory. As it turned out,
very slick security personnel, at a turnoff ahead
of the construction site, with a wink and a nod,
redirected the Creamer Media team, as well
as representatives of government, technical
institutions, finance houses, law firms and analyst firms,
along a back road, which enabled everyone to reach the
site without a hitch and hear the very impressive speeches.
It is deeply concerning, however, that so many youngsters
are free to roam the streets during mid-morning hours to
cause disruption during school time.
Scan to listen to
Martin Creamer
on SAfm
Martin Creamer | Publishing Editor
Source: Bloomberg
PERSPECTIVES
GRID IN FOCUS: Electricity Minister Dr Kgosientsho Ramokgopa says South Africa will prioritise the expansion of its grid over
the next decade and reports that work is under way on 25 projects at existing substations that could potentially unlock grid capacity
for about 13 GW of much-needed generation in the near to medium term. He has also stressed that South Africa can ill-afford to
“kick the can down the road” in the area of grid investment as it did in the early 2000s with generation
AN
August 4 –10, 2023 | ENGINEERING NEWS & MINING WEEKLY
|
5
EDITORIAL INSIGHT
ENERGY TRANSITION
Post-truth energy
politics
EXPLOSIVE DECLINE: Residents and businesses
that fall within the boundaries of the City of Johannesburg
have always known that the council’s old slogan, ‘A worldclass African city’, was more aspirational than factual.
Nevertheless, the recent explosion below Lilian Ngoyi Street
(formerly Bree Street), which killed one person and injured 50
others, underlined just how wide the gap now is between that
aspiration and the lived reality. A chasm that is far wider (and
widening) than the gaping scar left by the alarming explosion.
PUSH PAUSE
Sometimes, someone unexpected comes into your life out of
nowhere, makes your heart race, and changes you forever.
We call those people cops.
SPEAKOUT
Africa should not be bothered
about China’s processing . . . We
should be bothered about how we
utilise our minerals for the benefit of
our people.
Natural Resource Governance Institute Africa energy transition adviser
Silas Olang explaining that, ultimately, local investment is more
important than trying to compete with China.
FACTSINFIGURES
1
25
The value in billion rands of items
that have been recovered during
South African State-owned
enterprise Eskom-related fraud
and theft investigations since
April 2023, including 42 firearms,
83 loads of coal and 33 trucks,
according to the South African
Police Service.
The volume in million tonnes of
green hydrogen projects that are
being built each year, which is
about one-third of the capacity
required by 2030.
SHEILA BARRADAS | CREAMER MEDIA RESEARCH COORDINATOR & SENIOR DEPUTY EDITOR
6
| ENGINEERING NEWS & MINING WEEKLY | August 4 –10, 2023
IN ANY HEALTHY DEMOCRACY, debate is not only vital but
should be encouraged. However, a healthy democracy also requires
that the contestation of ideas be based on a common set of agreed
facts, even where there is disagreement over how those facts should
be interpreted.
Healthy democracies are few and far between these days,
largely because these rules are being eroded by what some have
called the emergence of a ‘post-factual world’ – a context, as
renowned social commentator Francis Fukuyama describes it,
in which “virtually all authoritative information sources are being
called into question and challenged by contrary facts of dubious
quality and provenance”.
It is clear that even the world’s oldest and most advanced
democracies are struggling to navigate this poisonous development
and it is also indisputable that South Africa is far from immune
from the venom of lies and half-truths being injected on to social
media platforms daily.
Unfortunately, this destabilising post-truth phenomenon
is highly evident in policy discussions about our country’s
electricity sector. Electricity provision in South Africa has decayed
from being a key driver of economic growth and development to
being the country’s biggest economic risk, as loadshedding destroys
jobs and confidence.
Given its profile in the national psyche, the politics surrounding
the electricity crisis is often (thankfully not always) dominated by
scapegoating and deflection rather than genuine problem solving.
An increasingly common diversionary tactic is the muddled
attempt to blame the country’s energy transition for the shortage
of electricity.
Despite all the evidence pointing to the fact that the crisis has
its origins in poor policy implementation, mismanagement and
corruption at the existing coal fleet, the bungling of the coal
build programme, the scandalous disruption of renewables
procurement and, more recently, active sabotage, it has become
politically popular to scapegoat renewables and the Just Energy
Transition Partnership (JETP).
Electricity Minister Dr Kgosientsho Ramokgopa is the latest in
a growing list of politicians to inject such fact-free toxins into the
electricity debate, with his recent suggestion that Komati could
have been generating 1 000 MW had it not been for the JETP.
It’s simply not true that the over 60-year-old power station was
one of the best performers when it shut on October 31 last year.
Only one of its nine units was still operating and producing
about 121 MW; parts from other units had been cannibalised to
assist other limping but younger stations; and its closure had nothing to do with the $8.5-billion JETP and everything to do with the
fact that it was no longer safe, legally or environmentally
compliant. There was also no thriving economic activity
around the station, with the JETP offering something of a
lifeline rather than a death knell in this regard.
Yet, none of these facts were acknowledged and instead
Ramokgopa is being praised in certain circles for standing up to the so-called green lobby, when in fact h i s
fact-free analysis threatens to delay the very
actions that are required to end loadshedding.
Terence Creamer | Editor
AN
NEWS&INSIGHT
GOLD FROM TAILINGS
Glittering Opportunity
As gold demand rises, South Africa can potentially
recover 30 Moz of gold from dumps
ck”
“Always in Sto
MARTIN CREAMER | CREAMER MEDIA PUBLISHING EDITOR
W
ith demand for gold currently off
the charts, South Africa has a huge
opportunity to recover gold from its
surfeit of gold mine dump material at relatively
high speed, a mining event in the Golden City
has heard.
With gold supply only increasing 1.5% to
2% a year worldwide and being constrained,
South Africa has the equivalent of half a dozen
gold mines in the form of tailings available for
turning to positive account.
“I invite you to go and try to buy some
gold Krugerrands. Three months delivery,
if you’re lucky. There’s no gold because the
central banks are sucking it all up,” Shumba
Energy cofounder, chairperson and director
Alan Clegg told the Coal & Energy Transition
Day chaired by mining luminary Bernard
Swanepoel.
“In South Africa, we’ve got 800-million tons
of gold tailings that contain approximately
30-million ounces of recoverable gold, equivalent to six Tier 1 gold mines,” Clegg highlighted during his presentation, covered by
Engineering News & Mining Weekly.
Clegg put the worldwide gold tailings tonnage at 16-billion tons with a recovery potential of 450-million ounces of gold, which also
presents an opportunity for South Africa’s
well-versed tailings retreatment companies.
As South African gold mining has also taken
place hand in glove with uranium mined as
a by-product, simultaneous recovery of uranium also needs consideration.
“Uranium is coming to the fore again. Very
few people realise that until the mid-eighties,
South Africa was the biggest supplier in the
world of uranium and today we have about
120-million to 150-million pounds of uranium
in tailings. If the gold mines restart their uranium plants, they can produce uranium as a
by-product, so there’s still a strong position for
South Africa to re-enter the uranium market.
On an energy return on an energy-invested
basis, it is 90% more energy efficient and 90%
less capital intensive to process tailings than
it is to start a primary mine, not to mention
the shorter permitting cycle.
“If you consider technological advancements in process metallurgy today, tailings are
a massive store of value,” said Clegg, who calculated that it takes 16 to 20 years to find and
build a new mine today in most jurisdictions.
AN
MANUFACTURERS
MADE IN
SOUTH AFRICA
Pressure
Temperature
Diaphragm Seals
ALAN CLEGG
Gold tailings are a massive store of value
SANAS Calibration
Today’s Gold Market
The bulk of gold production is in China, which
does not export its gold, and other countries
are starting to do the same to underwrite their
economic futures.
Clegg described the bull market in gold as
being decades in the making, extending back
to 1971 when former US President Richard
Nixon removed the gold standard, a monetary system where a country’s paper money
had a value directly linked to gold. Nixon did
so to address US inflation and to discourage
foreign governments from redeeming their
dollars for gold.
The Nixon shock led to the end of the Bretton
Woods Agreement and the convertibility of
US dollars into gold. It is seen as the catalyst
for the stagflation of the 1970s as the US dollar devalued.
Owing in large part to the Nixon shock, central banks now have a greater degree of control over their own money, making it easier to
manage variables such as interest rates and
overall money supply.
“Look at the top ten billionaires. They’re
buying gold,” said Clegg.
To watch a video of Shumba Energy
chairperson Alan Clegg’s presentation
covered by Engineering News & Mining
Weekly’s Martin Creamer, scan the
barcode or visit www.miningweekly.com.
sanas
Calibration Laboratory
245
345
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7
NEWS&INSIGHT
ELECTRICITY
Grid Assurance
Eskom system operator doesn’t foresee grid instability
should both Koeberg units be offline simultaneously
TERENCE CREAMER | CREAMER MEDIA EDITOR
E
skom’s system operator GM, Isabel
Fick, does not foresee the Western
Cape power grid being materially
destabilised if both of Koeberg’s two nuclear
reactors are out of service simultaneously
later this year, owing to yet another Unit 1
outage slip.
She noted during a webinar that the
two Koeberg units had been out of service
simultaneously for 48 hours on April 15,
without triggering major grid instability in
the province, which is also supported by a
765 kV transmission network that transports
electricity from the north-east of the country.
“There is quite a bit of stability in the
Western Cape even without the Koeberg units
and mainly due to the 765 kV backbone net­
work that goes into that area.
“So, we don’t foresee a major issue as a
result. You would need an extra contingency,
as in the 765 kV line going down, before you
will see a major issue there.”
That said, Fick confirmed that, from a
system perspective, she would currently
“love any nuclear” she could get but that
adding new nuclear would be a decision for
the policymaker rather than Eskom.
Her assurances regarding the loss of
Koeberg generation followed confirmation
by Electricity Minister Dr Kgosientsho
Ramokgopa that there was a possibility
that Unit 1, on an extended outage linked to a
20-year life extension plan that has been under
way since December, might not be returned
to service before Unit 2 was taken down for
a similar outage, which would also include
the replacement of its three steam generators.
The Unit 1 outage, which has been delayed
several times, finally began on December 10
and was initially scheduled to continue for
about 180 days and return to service in June.
By March, however, Eskom confirmed that
the initially communicated return to service
date was no longer achievable, but indicated
that it would be reintroduced before Unit 2
was shut in September for a similar outage.
It is understood that Unit 1 may now
be returned only in October, by when the
Unit 2 outage will be under way, leaving
the loadshedding-prone South African
grid without generation from either of the
920-MW-a-piece units.
“I’ve asked for a more detailed report, and
the more we get an indication of what the
issues are, the more we are getting very, very,
very worried. It is something that requires
urgent attention,” Ramokgopa said on
June 17 ahead of a meeting with the Koeberg
leadership.
Meanwhile, the Council for Scientific and
SOLAR & GAS
75 MW Northern Cape solar farm startup expected by mid-2025
INDUSTRIAL and specialty gas company Air
Products South Africa has confirmed that it
expects a solar plant to supply electricity
to its air separation units (ASUs) to start
generating electricity by the second quarter
of 2025.
The company announced late last month
that it would procure up to 75 MW of elec­
tricity from a solar farm, to be built by
renewables developer Mulilo Renewable
Project Developments in the Northern Cape.
The companies will jointly own the solar
farm.
Air Products has told Engineering News
& Mining Weekly that construction of the
240 GWh/y solar farm, in the Northern Cape,
will take about 17 months. Financial close
8
of the deal is expected in the fourth quarter
of this year.
The agreement between the companies
involved Air Products buying up to 75 MW
of solar-generated electricity from Mulilo
and having it wheeled from the solar farm to
various ASUs across the country.
Air Products has 13 ASUs located in
the Vaal Triangle, Newcastle, Rustenburg,
Springs and Coega.
The solar farm will provide 20% to 25%
of the company’s overall electricity needs,
with wheeling of the elec­tricity planned to be
prioritised to Air Products’ two largest sites.
Air Products explains that continuous
pro­cess plants such as ASUs require long
startup times of 12 to 26 hours to attain
| ENGINEERING NEWS & MINING WEEKLY | August 4 –10, 2023
Industrial Research (CSIR) Energy Centre’s
Monique le Roux confirmed that modelling
had been conducted to assess whether the
Western Cape grid could operate stably in the
absence of Koeberg.
“I can confirm that the system is able to
runs stably as it is now . . . without Koeberg.
“Obviously, Koeberg does provide a lot
of stability to the Western Cape grid and
that stability could be affected by a higher
penetration of variable renewable energy in
future, but there are mitigation strategies that
can be put in place,” Le Roux said.
She reported that the CSIR was working with
Eskom to understand the possible system risks
of transitioning from conventional plants, such
as coal and nuclear, to variable generators,
such as wind and solar photovoltaic.
The research has confirmed that the dis­
placement of conventional generators with
renewable generators will lead to the erosion
of system inertial energy, which slows the
rate at which system frequency changes in
the event of a grid disturbance.
The model has been stress-tested using vari­
ous mitigation measures that would have to
be introduced to address inertia erosion as
con­ventional synchronous generations are
pro­g ressively replaced with inverter-based
renewables.
Possible solutions identified include the
conversion of retiring generator units to syn­
chronous condensers, as is being proposed at
the decommissioned Komati site, as well as
introducing fast-frequency response through
battery storage systems.
However, Le Roux reported that various
other options were also being assessed
for increasing instantaneous reserves and
deploying demand response to increase
system stability.
stable product purities and production; there­
fore, they are highly dependent on continuity
of electricity supply.
Although Air Products has a negotiated
c u r t a ilm e nt a p p ro a c h wi th E s ko m to
mitigate against unexpected loadshedding,
the company still experiences the impacts
of loadshedding at its smaller facilities,
p a r ­t i c u l a r l y d u r i n g h i g h e r s t a g e s o f
loadshedding.
This is one of the reasons for Air Products
investing in renewable and backup power
solutions; however, the company points out,
it is not currently feasible to operate its ASUs
without baseload grid electricity.
Air Products aims to reduce its fossilfuel based energy use and carbon dioxide
emissions by one-third by 2030, with more
decarbonisation plans to come.
MARLENY ARNOLDI
SENIOR CONTRIBUTING EDITOR ONLINE
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NEWS&INSIGHT
RAIL
Crippling Deadlock
Resolving locomotive supply impasse with Chinese firm
crucial, says Transnet Freight Rail CEO
CAMERON MACKAY | CREAMER MEDIA SENIOR ONLINE WRITER
I
t is crucial that State-owned freight rail
operator Transnet Freight Rail (TFR)
finds a solution to its long-standing
locomotive spares supply impasse with
Chinese manufacturer CRRC, TFR CEO Siza
Mzimela told delegates at the 2023 Coal &
Energy Transition Day, on July 18.
Outlining the various challenges facing the
entity, she pointed out that the dispute with
CRRC, underinvestment in infrastructure and
security-related issues were having a significant impact on its operations.
“We’re losing about 18.5-million tonnes a
year because of the current impasse that we
have with Chinese suppliers,” Mzimela said.
She noted that locomotives, particularly the
Chinese-designed locomotives, were designed
for specific corridors, making it difficult to
make use of locomotives from other corridors
on the coal corridor.
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“Yes, there’s work that we can do with
the current fleet that we have and it speaks
to improving reliability, and we’re working
closely with our sister company, Transnet
Engineering, to improve the reliability.
“A Chinese solution, however, would also
help us to further deliver this 3.9-million
tonnes with much more accuracy. What we
have agreed with the Chinese suppliers at this
point in time is that if we can find a solution
to the current impasse, they would equally
come into the country to assist us in making
sure that we improve the reliability of even
the locomotives that are currently operating
in the system,” she added.
CRRC has supplied TFR with more than 450
electric locomotives, as well as about 22 diesel locomotives, but amid a dispute, TFR has
struggled to secure spares to keep the locomotives operational. This has resulted in a
significant challenge for coal miners to transport their product to the Richards Bay Coal
Terminal for export.
P ublic Enter pr ises M inister P rav i n
Gordhan earlier this year travelled to China
to help resolve the dispute with CRRC.
Meanwhile, IH Energy director Ian Hall
told delegates at the conference that the country had sufficient coal resources to increase
exports until 2035, while transitioning to
using more renewable and greener energy
resources, and highlighted the benefits this
could provide for South Africa’s gross domestic product (GDP).
This would, however, require an improved
performance by TFR.
“We accept the path that South Africa and
the world have taken towards decarbonisation. South Africa has to meet its clean development mechanism commitments,” he said,
while pointing out that the country had about
95-billion tonnes of coal resources.
He stated that coal miners have to deal with
a number of constraints, particularly from
investors that are reluctant to invest in fossilfuel-related projects such as coal.
“A number of State-owned power utility
Eskom plants are going to be decommissioned.
They’re going to go from 100-million tonnes
to 70-million tons by 2030, and some of that
coal is exportable.”
He argued that even using conservative
assumptions, South Africa still had enough
| ENGINEERING NEWS & MINING WEEKLY | August 4 –10, 2023
SIZA MZIMELA
We’re losing about 18.5-million tonnes a year
because of the current impasse that we have with
Chinese suppliers
coal to export at least 70-million to 80-million
tonnes, at least until 2035, and even beyond
then as there would still be substantial coal
to export.
“There’s also other opportunities to use the
Richards Bay Coal Terminal, which is a worldclass facility. Beyond 2035, even if there wasn’t
enough coal, there are lots of other commodities that could be exported.”
He also discussed the seaborne coal market, which is where South Africa’s export coal
moves into.
This market comprises about one-billion
tonnes of coal a year, but will probably decline
to 800-million tonnes by 2035 to 2040.
“We were the second-biggest exporter of
coal up until about 2000, and since then
we’ve flatlined and declined in the last couple of years. Currently, the biggest exporters
are Indonesia and Australia, and one can see
how they’ve overtaken us. We were never able
to exceed about 70-million tonnes of exports,
even though we have 90-billion tons of coal
in the ground.”
He encouraged South Africa to follow
Australia’s example of obtaining benefits
from its resources.
“While we decarbonise our local economy,
there’s no reason for us not to continue to
export at high levels. That’s what we can see
from both Indonesia and Australia.”
He also enthused over the positive impact
increased coal exports could have on the country’s economy.
If South Africa was able to increase exports
back to 73-million tonnes, the GDP impact
could contribute to the creation of about
180 000 jobs.
“Given that the coal industry itself only
employs 90 000 people, you can see how
increasing exports is so valuable to the economy of the country, and how it could itself
increase jobs. This would mitigate some of
the challenges with the just transition.”
AN
NEWS&INSIGHT
GREEN HYDROGEN
Crucial Sector
South Africa dare not fail in securing
future demand for platinum
MARTIN CREAMER | CREAMER MEDIA PUBLISHING EDITOR
S
outh Africa dare not fail in securing
future demand for its “incredible”
platinum group metals (PGMs) endow­
ment, the Hydrogen Economy Discussion
heard late last month.
Anglo American Platinum projects and
environment executive head Prakashim
Moodliar outlined the widespread marketing
effort under way to boost PGMs demand as well
as the hugely positive benefit of adoption of
the hydrogen economy.
Moodliar, a keynote presenter along with
German embassy deputy head of mission
Enrico Brandt, revealed the considerable work
under way to map South Africa’s Hydrogen
Valley further, while Brandt provided insight
into the momentous acceptance of hydrogen
in Germany.
Moreover, Moodliar outlined how the build­
ing of the hydrogen economy in South Africa
would enable significant job creation, reduce
carbon emissions, support social change and
drive economic development.
Currently, the bulk of PGMs are used in cata­
lytic converters to reduce emissions from inter­
nal combustion engines (ICEs) and the shift
to battery electric vehicles, therefore, poses a
risk to South Africa’s PGMs industry, which
employs 172 000 people, making it one of this
country’s largest private-sector employers.
“Considering that every employed person
supports an average of ten other people, we
dare not fail in securing future demand for
this incredible natural endowment.
“The significant growth forecasts for the
hydrogen economy will offer significant
demand opportunities for metals, including
aluminium, copper, iridium, nickel, platinum,
palladium and zinc, to support these hydrogen
technologies.
“This would include metal for renewable
electrical technologies, and the electrolysis for
renewable hydrogen, carbon storage for low
carbon, nitrogen, or fuel cells using hydrogen
to power transport.
“We know that reaching the goals of the
Paris Agreement to keep the global tempera­
ture rise to well below 2º would mean a quad­
rupling of mineral requirements for clean
energy technologies by 2040,” said Moodliar.
A typical battery electrical car, for example,
requires six times more mineral inputs than a
conventional ICE vehicle, with metal supply
and investment falling far short of what is
needed to reach the Paris Agreement.
A business plan has been submitted to South
CRITICAL MINERALS
Canada announces critical mineral projects funding criteria
CANADIAN Innovation, Science and Industry
Minister François-Philippe Champagne has
announced the criteria for projects eligible
for funds available through the Strategic
Innovation Fund (SIF) that aims to accelerate
investments in critical mineral projects.
The proposed fund, announced in the
2022 Budget, will make available C$1.5billion in funding.
Champagne states that the qualifying
pro­jects must focus on critical minerals
processing, manufacturing and recycling;
however, mining projects that show excep­
tional innovation benefits and strong vertical
integration to grow domestic value chains
will be considered.
Champagne said these future projects
must meet specific criteria and target one or
more of the 31 minerals Canada has identified
12
as “critical”, with priority given to the six
most significant minerals: lithium, graphite,
nickel, cobalt, copper and rare ear th
elements.
Critical minerals projects selected for
invest­m ent will be expected to contribute
to a more sustainable and competitive
economy with a particular focus on clean
technologies, including renewable energy
sources, information and com­m unication
technology, and inputs used in advanced
manufacturing.
Priority will be given to advanced-stage
projects that demonstrate significant
financial and technical readiness.
Implementation of the Canadian Critical
Minerals Strategy is being coordinated
through the Critical Minerals Centre of
Excellence at Natural Resources Canada, in
| ENGINEERING NEWS & MINING WEEKLY | August 4 –10, 2023
PRAKASHIM MOODLIAR
South Africa’s platinum group metals industry
employs 172 000 people
Africa’s State-owned Industrial Development
Corporation to secure funding from Germany’s
KfW development bank for Project Rainbow,
which focuses on building a hydrogen freight
corridor for trucks and buses.
“Rainbow is also looking at localised
manu­­facture and assembly of vehicles to
sup­port building a local supply chain,” said
Moodliar, who added during the discussion
covered by Engineering News & Mining Weekly
that Rainbow has been afforded strategic
infrastructure project, or SIP, status.
Brandt outlined Germany’s commitment to
hydrogen as part of its commitment to the Paris
Agreement that calls for a fundamental shift
away from fossil fuels and towards sustainable
alternatives.
“The transition will affect everyone and
every­thing, our way of life, politics and busi­
ness,” Brandt said. “We’re facing the most
fundamental transformation of the global
economy in our lifetime, comparable to the
Industrial Revolution in the past,” he added
during the event chaired by mining luminary
Bernard Swanepoel.
collaboration with other federal departments
and agencies, provincial and territorial part­
ners, indigenous communities, industry
stakeholders, and others.
Investments made to date through the
SIF include a C$27-million contribution to
E3 Lithium in Calgary, Alberta, for the direct
extraction of lithium from brines and a C$222million investment to support Rio Tinto Fer et
Titane in Sorel-Tracy, Quebec, in producing
an array of critical minerals, such as titanium
and scandium and decarbonising operations
through innovative smelting technology.
“Canada has everything it takes to be a
leading force in critical minerals processing,
manufacturing and recycling. We already
have a growing assortment of key innovative
projects that are being developed right here
in Canada that will allow us to build a stronger
domestic critical minerals ecosystem,” says
Champagne.
MARIAAN WEBB
SENIOR DEPUTY EDITOR ONLINE
RA
NEWS&INSIGHT
ENERGY MINERALS
Pockets of Opportunity
Coal funding landscape challenging but investors
keen on sustainability initiatives
TASNEEM BULBULIA | CREAMER MEDIA CONTRIBUTING EDITOR ONLINE
A
s South Africa undertakes the long
process of a just energy transition
(JET), coal mining projects and coalfired power stations will still continue to be
relevant for quite some time in the interim;
however, finding the requisite funding for
these has become a challenge owing to the
reputational risk and money being prioritised
for the JET.
This was noted by speakers at the Coal and
Energy Transition Day event, which was held
in Johannesburg on July 18.
Speakers said, however, that there were facets of the coal industry that can attract funding
and outlined considerations for stakeholders
to secure this.
MX Mining Capital Projects director Dr Mike
Seeger said the key challenge in securing coal
mining financing was that there were often
critics at financial institutions, with people
not wanting to be associated with awarding
funds to coal projects, because of the reputational risks in the future.
He emphasised that stakeholders needed
innovative structures to mitigate this.
He also pointed out that, owing to this, they
would often not secure the full amount of capital required for projects and would have to
find other avenues.
However, Seeger said there were opportunities that could be capitalised on, such as
sustainability in coal mining, with investors
keen to finance projects in this vein – such as
renewable energy projects that supply power
to coal mines, and funding of electric mining vehicles.
He asserted that if a solid business case was
presented for such initiatives, with a good
return on investment, then money could be
found for them.
Industrial Development Corporation (IDC)
energy strategic business unit head Christo
Fourie said the entity would be funding coal
mining for several years, as power stations
needed a constant supply of raw materials.
He acknowledged that the process of applying for funding from the IDC could be daunting
and onerous, given that proper due diligence
had to be done.
However, he noted that the IDC had since
introduced business development managers, tasked with the role of initial interface
for applicants and assisting them through
the process.
Fourie also said there was potential to obtain
funding from international sources; however,
this came with lots of conditionality and it was
not easy to secure.
He added that international investors
seemed to prefer deploying funding into the
private sector through entities such as the
IDC and the Development Bank of Southern
Africa, rather than giving all of their funds to
State-owned utility Eskom.
Further, Fourie said they seemed to also be
receptive to deploying money into transmission and distribution infrastructure.
Therefore, he emphasised that the country
needed to put in place a proper funding model,
which would allow it to deploy money to relevant projects.
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August 4 –10, 2023 | ENGINEERING NEWS & MINING WEEKLY
|
13
CREAMER
MEDIA
WEBINAR REPORT
Construction Site
Disruptions Webinar
Minister, stakeholders discuss the real
threat that is the construction mafia
Compiled by MARLENY ARNOLDI
A
s a country struggling to economically
recover from recent global shocks, the last
thing South Africa needs is more disruption
to construction projects, which has become more
prevalent and increasingly violent since 2016.
A panel of key stakeholders raised their main
concerns and solutions around the so-called
“construction mafia” activity in the country
during a webinar, hosted by Creamer Media in
partnership with Construction Alliance South
Africa (CASA) on July 19.
14
The panel comprised Public Works and
Infrastructure Minister Sihle Zikalala, CASA
chairperson John Matthews, Institute for
Security Studies (ISS) justice and violence
programme head Gareth Newham,
webinar sponsor MDA Attorneys director
Euan Massey, SA Women in Plumbing
& Trades representative Kile Mteto and
Black Business Council (BBC) CEO Gregory
Mofokeng.
The panel was moderated by Newham, with
| ENGINEERING NEWS & MINING WEEKLY | August 4 –10, 2023
facilitation and opening remarks undertaken
by South African Green Industries Council
(SAGIC) administrator Bernadette Eksteen,
and closing remarks delivered by Western
Cape Property Development Forum (WCPDF)
chairperson Deon van Zyl.
The stakeholders agreed that tackling
the construction mafia scourge requires
collaboration and perseverance, as well as
a holistic approach to fixing the root cause
and continuance of criminality in the sector.
Speaker Highlights
“Construction site disruptions are
a reality. It is having a significant
impact on timelines of projects and
the overall health and safety of the
industry.”
Bernadette Eksteen
– SAGIC
“Although parties that are affected
by this scourge are encouraged to
come forward, we know it is not
always possible owing to threats,
whether veiled or not. Many
contractors rather suffer in silence
than risk the lives of people on site.”
John Matthews – CASA
“We are grappling with a challenge that we may
characterise as the lack of social cohesion in our
country, which gives rise to criminality.
“Challenges of poverty and inequality still plague
us heavily, but there is no grievance that justifies
site disruption, extortion and sabotage of the
economy.”
Sihle Zikalala – Public Works and
Infrastructure Minister
“What added fuel to the fire was the release of the
procurement regulations in 2017 that legislated
a 30% local participation requirement. It has
created uncertainty around the word local – is it
the immediate surrounds, provincial or national?”
“Up to now, stakeholders have responded
reactively to this problem. We have to start
responding proactively.”
Euan Massey – MDA Attorneys
“We have seen severe deterioration
in the State’s law enforcement and
crime intelligence capabilities. The
most important intervention will
have to be that of improving these
capabilities.”
Gareth Newham – ISS
“We are seeing more politicians being
co-opted in this criminality of extortion.
Some of these criminals pitch up on
sites alongside the councillors. We
find that councillors are more often
encouraging people to stop projects,
simply because certain individuals are
not directly benefitting.”
Gregory Mofokeng – BBC
“When sites are disrupted, it means the
opportunity for skills development also gets
stolen. Stopping construction sites needs to be
considered as economic sabotage.”
Kile Mteto – SA Women in Plumbing
& Trades
“We cannot continue treating the problem
symptomatically but should rather start
looking at the cause. The consensus in the
Western Cape is that public engagement must
start at the point of idea and no later.”
Deon van Zyl – WCPDF
Scan the QR code to register for the
upcoming Women in Business webinar on
August 16, 2023.
Sponsored by:
Scan the QR code to watch the
recording of Creamer Media’s
Construction Site Disruption
webinar.
August 4 –10, 2023 | ENGINEERING NEWS & MINING WEEKLY
|
15
NEWS&INSIGHT
BIOTECHNOLOGY
Broadening Focus
Ever-expanding Maltento eyes opportunities in
aquaculture and cosmetics
IRMA VENTER | CREAMER MEDIA SENIOR DEPUTY EDITOR
The Maltento insect farm started
as a small, test-scale operation
in a home bathroom in Craighall
Park, Johannesburg.
A lmost seven yea rs later,
founder and CEO Dean
Smorenburg has seen the operation evolve into a fully fledged
business based in Epping, Cape
Town.
Smorenburg says his decision
to pivot from management consulting to insect farming stems
from his interest in sustainability.
Insect farming, and to be more
specific, fly farming, is no longer
new or novel, with this biotech
sector rapidly gaining traction
globally.
Smorenburg’s take on the
industry is to not call Maltento a
waste management company, as
some fly farmers tend to do.
This means he doesn’t want to
use the legions of black soldier
flies (BSFs) at Maltento to feed on
unwanted waste, such as abattoir
leftovers.
Instead, his goal is to create a
consistently high-quality product, which means Maltento’s livestock must have a consistently
high-quality diet.
“ We h av e a Ph D lo ok i ng
after the diet of the insects to
make sure we produce goodquality products throughout,”
says Smorenburg.
This philosophy sees Maltento’s
livestock flourish on a diet which
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includes spent grains from breweries, as well as ground-up rusks.
Larvae are typically harvested
at day 11 or 12.
The Epping facility – which
started out at 1 600 m 2 and has
since expanded to 5 500 m2 – produces whole dried fly larvae for
the backyard chicken and wildbird markets, mainly in the US.
It also produces a product
called Digest or Palate+ from
dehydrated larvae, which is a
high-protein flavourant, or palatant, used to coat dry pet kibble to enhance the overall feed
experience.
“In taste tests, dogs chose our
product over other products,” says
Smorenburg.
“Of course, we also have to
make sure that their human owners like the smell.”
Digest is sold mainly in South
Africa, but trials are ongoing in
the US and Europe to expand
Maltento’s market.
A second focus for the company is the aquaculture market,
with trials currently on the go in
various African markets, as well
as in the US.
Here the Digest product is
added to fish feed, especially on
trout farms.
“With a 3% inclusion of our
product, we have seen the fish
gain weight, while there is also a
drop in the mortality rate,” says
Smorenburg.
“Aquaculture is definitely a big
opportunity for us going forward.”
Another opportunity on the
horizon is the production of chitosan, although this may take
longer to develop.
Chitosan is a sugar that comes
from the outer skeleton of shellfish, including crab, lobster and
shrimp – as well as fly larvae.
It is used in a number of industries, from the pharmaceuticals
sector to cosmetic production.
Here, Maltento will target the
cosmetics industry first, says
Smorenburg.
“Our long-ter m v iew is to
unlock the BSF’s value in its
totality.”
I n order to accom mod ate
Maltento’s plans, the Epping facility will have to expand yet again,
this time to about 7 000 m2.
The urban farm has two arms
– the production of sellable product, as well as the breeding of new
livestock.
Maltento currently rolls out
75 t of product a month and aims
to double that to 150 t a month
next year.
“We are currently in the early
commercialisation phase,” notes
Smorenburg.
“Ultimately, we want to have
multiple plants near large feed
sources, which will reduce our
carbon footprint and our input
costs.”
This could mean an expansion
to Gauteng, for example, as well
as the rest of Africa.
Maltento employs 65 people.
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FLY FISHING
Aquaculture presents a big opportunity for Maltento going forward
16
| ENGINEERING NEWS & MINING WEEKLY | August 4 –10, 2023
AN
NEWS&INSIGHT
TECHNOLOGY
Back in the Black
Technology group 4Sight bounces back after tough period
NATASHA ODENDAAL | CREAMER MEDIA SENIOR DEPUTY EDITOR
After a period of instability,
Alt-X-listed 4Sight has turned its
fortunes around, successfully
navigating through the Covid19 pandemic-linked lockdowns
and restrictions, and ultimately
delivering double-digit growth
by 2022.
The multinational diversified
technology group, which listed in
2017, reported significant growth
in the past financial year, while
adding more people to its workforce and expanding geographically. After the group fell into
the red and faced a temporary
suspension from the JSE in 2019,
it revamped its operations, setting off on a new strategy that
has led to growth over the past
three years.
In 2022, 4Sight reported a 20.7%
increase in revenue, a 93.9%
increase in operating profit, a
10.1% increase in gross profit
and a 20.1% increase in its cash
balance.
4Sight Holdings CEO Tertius
Zitzke said that, with a new board
established and with robust governance foundations and independent committees, policies
and charters set in place, the
group developed focused strategies and defined where 4Sight
wanted to deliver.
By the time the Covid-19 pandemic hit, and lockdowns and
restrictions were applied, the
company was ready to assist
the modern digital enterprise
and meet the needs of digital
transformation of businesses,
he told Eng ineer ing Ne ws &
LOGISTICS
inDrive launches ‘name your
price’ freight service in SA
Mining Weekly.
Following what it calls its “consolidation phase” from 2020 to
2022, 4Sight is now positioned for
growth in 2023 – and beyond –
with indications that the first half
of the 2023 financial year is set
to follow the same upward trend
as 2022 as it stays focused on its
defined strategy on products, people and innovation, supported by
prudent cost containment.
4Sight, which automates processes around people in a business, rema i n s secu re i n it s
strategy.
The group’s solid organisational structure and revised
annuity-focused sales strategy
enables the business to scale
to meet increased dema nd,
resulting in improved profita-
bility, increased flexibility and
enhanced efficiencies.
“Despite the challenges of the
loadshedding crisis, rising inflation and interest rates and currency fluctuations, we have seen
an increased demand for our solutions. More customers have chosen 4Sight, as they rethink their
business models and opt for technological integration and innovation,” he said, adding that the
drive towards hybrid working, as
a result of the pandemic, is a positive legacy that is here to stay.
“ We h av e a l s o s e e n a n
increased move toward our cloudbased solutions, as South African
customers seek new data centre solutions to mitigate remains
risks.”
He f u r t her poi nted to t he
increased demand for more
self-service and automation and
changes in business-as-usual,
owing to significant artificial
intelligence growth and progress
in terms of ChatGPT. “We recognise that we are in the middle of
the next revolution and 4Sight is
positioned in the middle of it.”
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inDrive has launched a nameyour-price freight service in
South Africa, targeting small
businesses and individuals.
InDrive is already active as a
set-your-price ehailing service
in the country.
“The [freight] service aims to
deliver reliability and efficiency
on last-mile, in-city routes, with
same-day delivery available on
demand,” says the company.
inDrive.Freight’s operations
have now been launched in
Cape Town and Johannesburg,
with a programme to expand
the offering to more cities by
the end of the year.
inDrive.Freight promises
the delivery of small parcels
or large shipments of nonliquid freight var ying from
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This also means that the service makes use of anything
from compact cars for small
boxes or personal use, to large
trucks.
Customers can decide on
the shipment details, including
timing, location and the choice
of vehicle.
Customers also propose a
freight price, to which drivers
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alternate price.
All drivers and their documentation are “meticulously
verified” for shipment security,
while real-time delivery tracking ensures the cargo is safe,
promises the company.
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SENIOR DEPUTY EDITOR
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NEWS & MINING WEEKLY28.03.23
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COVER STORY
CONSTRUCTION & CRIME
REBUILDING CODE
Procurement clarity and prosecutions key to tackling construction site disruptions
CAMERON MACKAY | CREAMER MEDIA SENIOR ONLINE WRITER
P
ublic Works and Infrastructure Minister
Sihle Zikalala has emphasised the
importance of unity in condemning
and addressing construction site disruption
and extortion affecting the industry.
“It is important that we act together to root
out these illegal practices, which are driving
away investment in the local construction
and property sector. We’re grappling with a
challenge that we characterise as a lack of
social protection, which permeates and gives
rise to criminality,” stated Zikalala.
The Minister spoke during Construction
Alliance South Africa’s recent webinar hosted
by Creamer Media, focusing on the theme of
navigating construction site disruptions that
are plaguing South Africa.
Many of these construction site disruptions
have been in KwaZulu-Natal, with the accumulated cost of these disruptions estimated
at R68-billion.
Cause and Effect
The Minister highlighted several possible
reasons for the disruptions, including a
sense among some previously disadvantaged
South Africans that they remain marginalised
and excluded from economic opportunities.
18
ECONOMIC BLOWBACK
About R68-billion has been lost to the South African economy
as a result of construction site disruptions since 2019
That said, he also stressed the need to
arrest those involved in construction site
disruptions, and reported that about 605
cases have been opened.
Despite these arrests, however, he admitted that there has been a lack of prosecution
and sentencing.
Law firm MDA Attorneys director Euan
Massey highlighted that criminal elements
were tak ing advantage of uncertaint y
regarding the 2017 Preferential Procurement
Reg ulat ions, which out line a goal for
setting aside 30% of a project for local
participation.
“There is a misunderstanding regarding
the word ‘local’. Is local South African? Is
it provincial? Is it municipal or is it related
to the area adjacent to sites where the work
has been performed? This has allowed
mafia-like organisations to extort money
from contractors and disrupt projects.”
Massey also argued that when these
regulations were first enacted, employers
passed down these procurement responsibilities to contractors, who were left to their
ow n dev ices to i mplement t he 30%
requirement.
Only recently has it been acknowledged
| ENGINEERING NEWS & MINING WEEKLY | August 4 –10, 2023
that commitment is required from all roleplayers, including State-owned entities, to
achieve the requirement.
“We can’t have projects where we have
a blanket 30% requirement, where the
work that’s being executed just doesn’t
accommodate that requirement.
“We need to identify the target enterprises to which the 30% will be awarded,
how it will be awarded and how the target
will be achieved. This will ensure that money
is awarded to people and entities who create
new businesses and grow the economy,”
Massey added.
South African Women in Plumbing and
Trades representative Kile Mteto stressed
the negative impact site disruptions were
having on increasing business costs for
small, medium-sized and microenterprises
(SM M Es), pa r t icula rly women- ow ned
entities.
She also noted that site disruptions
prevent skills development opportunities
for SMMEs.
Black Business Council VP Gregor y
Mofokeng reiterated the direct impact that
construction site disruptions are having on
economic growth and job creation, even for
LO
people not employed in the industry.
The construction industry is actively
cooperating with the South African Police
Ser v ice (SA PS), but t he sit uat ion ha s
worsened.
“Contractors have had to secure court
interdicts. Beyond the policy inactivity, as
contractors, we have also tried other means
of bringing about law and order to our sites.
“We have to rely on police to make sure
interdicts are enforced. What we’re not seeing from law enforcement is increased activity in making sure that these criminals are
arrested so that they can be duly sentenced,”
Mofokeng added.
Massey also argued during the webinar
that interdicts are a reactive measure, with
limited success. While they can be successful against individuals, construction-mafia
organisations replace such individuals,
enabling disruptions to continue.
Mofokeng also noted that government
representatives have been co-opted by these
organisations, particularly at the local level,
as criminals involved in extortion travel
to construction sites to talk to the main
contractors with a government councillor.
“Some councillors are involved in encouraging people to stop projects simply because
certain individuals and the community are
not directly benefiting.”
Meanwhile, Mofokeng added that the
Black Business Council is hopeful that the
training of more police officers can contribute to addressing site disruptions, and
that they are deployed into areas where
construction projects are implemented as
a deterrent.
“We are considering amending industry contracts to protect the interests of contractors and mitigate financial risks. There
is an increase in threats to our staff, so
we’ll have to devise strategies to see how
do we secure the safety of our personnel
on and off site,” Massey said.
Although four standard form contracts are
used in the construction industry, only one –
a locally produced general conditions of contract for civil engineering contracts – deals
with local procurement.
“What we’ve seen is that organisations like
the South African National Roads Agency
have amended the International Federation
of Consulting Engineers international form
of contract.
“They’ve amended their contract to allow
for a lead-in period to promote local participation, which allows for dealing with site
disruption when it does occur,” he added.
Capacity Decline
Institute for Security Studies head of the
justice and violence prevention programme
Gareth Newham highlighted a deterioraLO
tion in the past decade of State intelligence
and law enforcement capabilities, partly as
a result of State capture.
“This began with the shutting down of
the Scorpions unit in 2008, which was good
at tackling corruption and dealing with
complex and organised crime networks.
“Attempts to neutralise security agencies
continuing from 2009 until around 2018
depleted the capabilities of State security
agencies. Between 2012 and 2020, the ability
of the SAPS to solve murder dockets dropped
by 55%, despite its budget growing by 86%
in this period.
“Currently, we have over 180 000 people
in the SAPS, with a current yearly budget of
over R108-billion. However, only 14.5% of
murder dockets are solved.”
The construction sector was also likely
targeted, owing to the perception that
construction projects are associated with
large budgets.
“The most important intervention will
have to be improving our law enforcement
and intelligence capabilities to deal with
these syndicates.
“Until there is a very real chance of the
State making sure that these syndicates are
held accountable, it is unlikely that other
interventions will do much to adequately
and sustainably reduce this challenge.”
Despite a number of arrests already being
made, Newham stressed the importance of
arresting criminals “higher up the value
chain”.
There must also be dedicated components
of the National Prosecuting Authority guiding
and working with investigators so that instigators can be brought before the courts urgently,
he added.
Backbone of the Economy
Zikalala stressed that construction is
“the backbone of the economy and social
development”.
The Department of Public Works is coordi­
nating the “unleashing” of infrastructure
development through Infrastructure South
Africa to expedite and implement projects.
“We’re expediting this through the construction unit in our department, but various
other departments also are engaged in
unleashing infrastructure.
“Large companies must support SMMEs.
We must address collusion amongst large
companies, as collusion leads to higher
project costs for government and the project
client.”
He also stressed the need for larger companies to remain committed to the transformation of South Africa and the built
environment industry, and, in general, supporting SMMEs, young workers, women and
disabled people.
This comes in addition to ensuring that
the policy commitment of localisation is
preserved.
“When we say that 30% must be allocated
to local companies if the contract is above
R30-million, this must be done by all. We must
continue to work together to meet the targets
agreed upon in the transformation charter of
the built environment.
“We must then ensure that, if projects are
executed, those projects are consulted in a
way that ensures that stakeholders, such as
municipalities, are briefed.”
The Department of Public Works will,
therefore, strengthen a social facilitation
unit in the department.
Zikalala added that, if large companies
are conducting construction work, they
should make an effort to subcontract portions
of the work to SMMEs.
“This is why we’re engaging with the
Construction Industry Development Board
(CIDB) to train companies that are in the CIDB
and provide relevant skills to them.”
Government has implemented an organised
crime investigation ser vices unit, as a
result of an intervention by President Cyril
Ramaphosa.
The Department of Public Works is also
implementing a social facilitation unit
that will be able to intervene and ensure
community participation.
This unit will assist with stakeholder
involvement in construction projects, and
with effective implementation of project
management. Once the department receives
the necessary reports, it will also be able to
take disciplinary action against councillors
involved in site disruptions.
“We need a platform where we coordinate
together in each area, and that’s why we
need to use the District Development Model
as an anchor for the coordination, so that
we’re able to intervene timeously and avoid
any disruption or delay.
“The Public Procurement Bill is in consultation, and the Minister of Finance,
Enoch Godongwana, will release it soon
for public comment.”
Zikalala added that construction has
multiple effects and supports many sectors,
and that it makes it easier to attract investment.
“We must ensure that those who are found
to be on the opposite side of this framework
are dealt with according to the law.
“We want to support all associations that
represent stakeholders or companies in
the construction industry, who also want
to continue engaging, and tap from their
understanding and practical experience.
Let’s turn South Africa into a giant construction site, and make this industry work
for a l l a nd le ave no one b e h i nd ,” he
concluded.
August 4 –10, 2023 | ENGINEERING NEWS & MINING WEEKLY
|
19
NEWS&INSIGHT
DIAMONDS
Sparkling Outlook
Petra remains confident of one-million-carat
increase in production in 2025
DARREN PARKER | CREAMER MEDIA CONTRIBUTING EDITOR ONLINE
W
ith an operational turn­
a rou nd u nder way
at d i a mond m i ne r
Petra Diamond’s Finsch mine,
in South Africa, the restart of its
Williamson mine, in Tanzania,
running ahead of schedule and
the company’s capital projects
remaining on track to ensure
incremental growth, CEO Richard
Duffy has reiterated guidance
for yearly group production to
increase by up to one-million
carats in the 2025 financial year.
A n add it iona l 300 000 ct
increa se in out put is a lso
expected for the 2026 financial
year.
“Operations at both Cullinan
a nd Finsch a re now la rgely
stabilised, enabling us to focus
on reducing wa ste d ilut ion
and improving grades. These
a d v a n c e ­m e n t s h a v e b e e n
supported by a much improved
safety performance in the fourth
quarter,” Duffy said in an operat­
ing update for the company’s 2023
financial year, which ended on
June 30.
He explained that the opera­
tional turnaround at Finch was
a reflection of the introduction
of new underground equipment,
t he re c r u it me nt of s e ve r a l
senior technical personnel to
fill vacancies and the resolution
of g rou nd h a nd l i ng i s s ue s
that impacted production in
the third quarter. At Cullinan
mine, he said the improvement
was a result of increased plant
availability largely on the back of
the completion of a mill relining.
During the fourth quarter,
the number of lost time injuries
decreased to t wo, while the
lost-time injury frequency rate
reduced to 0.12. These improve­
ments were a result of Petra’s
renewed focus on safety, aimed
at address­i ng the regression
that was observed in previous
quarters.
“We’re striving for a zero-harm
environment as we continue to
ensure that we maintain our
focus on remedial actions and
behaviour-based intervention
programmes across operations,”
Duffy said.
In terms of diamond produc­
tion, there was a 5% decline
in total diamond production,
amounting to 620 018 ct compared
with the previous quarter. This
decrease was primarily owing to
lower grades at both the South
Africa-based Cullinan and Finsch
mines.
However, Petra has taken
remedial measures at both mines
to rectify the situation.
As a result, Petra’s diamond
pro­duction for the financial year
reached 2.67-million carats, which
was slightly below Petra’s earlier
guidance range of 2.75-million to
2.85-million carats.
“Mitigating steps have been
successfully implemented to
address grade issues experienced
at Cullinan and Finsch in the final
quarter that resulted in 2023 pro­
duction coming in marginally
below guidance. Grades at both
operations have now reverted
to planned levels,” Duffy said
on July 18.
In June, Petra concluded sales
amounting to $7.8-million to
fulfil regulatory requirements for
selling to South African cutters
and polishers. This brought the
total rough diamond sales for the
fourth quarter to $49.9-million, a
decrease from $179.8-million in
the fourth quarter of 2022.
Additionally, Petra’s sales
for t he yea r a mounted to
$32 8.4-m i l l ion, dow n f rom
$584.1-million last year. It is
worth noting that like-for-like
prices increased by about 2%
year-on-year, and revenue from
profit share agreements increased
to $1.4-million compared with
$1.1-million a year ago.
The reduction in revenues com­
pared with the previous year was
mainly ow ing to a lower
contribution from exceptional
d i a m o n d s , w h i c h to t a l l e d
$12.6-million this year compared
with $89.1-million last year, as
well as a 34% reduction in rough
• To page 24
ENQUIRY
SERVICE
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any product, service or advert
in this issue, please email
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The magazine that brings results
20
| ENGINEERING NEWS & MINING WEEKLY | August 4 –10, 2023
STABILISED OPERATIONS
Following the stabilisation of operations at the Cullinan mine (pictured) and
the Finsch mine, Petra Diamond has been able to focus on reducing waste
dilution and improving grades
RA
NEWS&INSIGHT
FINTECH
Full Tilt
Africa to be fastest-growing fintech region
as global industry grows to $1.5tr by 2030
NATASHA ODENDAAL | CREAMER MEDIA SENIOR DEPUTY EDITOR
E
merging economies are
leading the way as finan­
cial technology (fintech)
gains momentum, with global
revenues set to surge six­fold from
$245-billion to $1.5-trillion by
2030, a new report released by
Boston Consulting Group (BCG)
and QED Investors shows.
A f rica w ill be the fastestgrowing region, while emerging
Asia-Pacific (APAC), including
China, India and Indonesia, will
outpace the US and become the
world’s top fintech market by
2030.
Africa’s fintech market, led
by South Africa, Nigeria, Egypt
and Kenya, is projected to grow
thirteenfold to $65-billion in 2030,
at a projected compound annual
growth rate (CAGR) of 32%, the
‘Global Fintech 2023: Reimagining
the Future of Finance’ report
indicated.
“Unencumbered by legacy
infra­structure, Africa can leap­
frog its way to a new financial
ecosystem a nd add ress t he
chal­lenges of a population that
is predominantly unbanked
or underba nked,” sa id BCG
Johannesburg partner Caio
Anteghini.
APAC, historically an under­
penetrated market w ith
nearly $4-trillion in financial
services revenue pools, has a
projected CAGR of 27%, with
the largest fintechs, voluminous
underbanked populations, a high
number of small and mediumsized enterprises (SME’s) and a
rising technology-savvy youthful
population and middle class.
“Globally and in Africa, the
fintech journey is still in its
early stages and will continue
to revo­lutionise the financial
ser­v ices industry as we know
it,” said Anteghini, noting that
more than half the world’s popu­
lation remains unbanked or
RA
underbanked, with the majority
in emerging economies.
In the Middle East and Africa,
52%, or nearly 500-million, of
adults are unbanked, while 43%
are underbanked.
“We expect to see continued
growth not only in developed
mar­kets in the US and Europe, but
also in developing fintech markets
in Latin America, Asia and Africa,
where the inertia and friction is
even greater,” added QED Inves­
tors managing partner and report
co-author Nigel Morris.
Despite fintechs losing more
than half their market value
on average in 2022, the report
noted that it was a short-term
cor­rection in an otherwise longterm positive trajectory, as the
industry’s fundamental growth
drivers have not changed.
“QED remains more bullish
t ha n ever ab out t he f ut u re
of fintech and its promise to
improve the lives of billions of
people across the world,” Morris
highlighted.
The report further indicated
that regulators need to be pro­
active and “lead from the front”,
while incumbents should partner
with fintechs to accelerate their
own digital journeys.
“Regulation of fintechs has
tradi­t ionally been relatively
light, nonproactive, fragmented,
and, in some cases, even lagging
behind. While recent bank crises
have made them more sensitive to
asset/liability management, in
addition to creating guardrails,
regulators must ensure they are
not overregulating the industry
and thereby stifling innovation,”
it said.
However, regulators should
consider levelling the playing
field by enabling faster pathways
for banking and payment insti­
tution licences, facilitating
an open banking ecosystem
RISING FINTECH
Emerging economies are leading the way as financial technology
gains momentum
and supporting digital public
infrastructure.
“The rise of new technologies
has created a need for nextgenera­tion infrastructure that can
facili­tate complex transactions in
a more digital world and systems
that facilitate the delivery of
essential services and benefits
to the general public, such as
digital identity and verification,
can promote economic expansion,
espe­cially in emerging markets,”
said Anteghini.
The combination of digital
identity, an application pro­
gramming interface-enabled
payments network allowing for
real-time settlements and access
to innovators to build use cases is
increasingly becoming a solution
to fast-track digital services
and showing particular value
in markets where cash is still
dominant, such as South Africa.
Meanwhile, the payments seg­
ment, which led the first part of
the fintech journey, will remain
the largest fintech market in 2030,
growing fivefold to $520-billion;
however, business-to-business-toany-user (B2B2X) and B2b serving
small businesses will lead the
next era.
The B2B2X market is expected
to grow at a 25% CAGR to reach
$440-billion in yearly revenues
by 2030, supported by growth in
embedded finance and financial
infrastructure, while the B2b
fintech market is expected to
grow at a 32% CAGR to reach
$285-billion in yearly revenue
by pro­v iding solutions to creditstarved and poorly served small
businesses.
August 4 –10, 2023 | ENGINEERING NEWS & MINING WEEKLY
|
21
NEWS&INSIGHT
TELECOMMUNICATIONS
Connectivity Boost
Vodacom investing more than R500m to expand
connectivity in Eastern Cape rural areas, townships
NATASHA ODENDAAL | CREAMER MEDIA SENIOR DEPUTY EDITOR
T
elecommunications group Vodacom
Eastern Cape region is injecting more
than R500-million to expand connec­
tivity in deep rural areas and townships that
had no connectivity before.
The bulk of the capital expenditure for the
2023/24 financial year will be used to deploy
new base station sites, improve network capac­
ity, perform power backup upgrades, in light
of power outages, and deploy fifth-generation
(5G) to accelerate digital inclusion.
The group will build 106 new deep rural sites
in Buffalo City, Matatiele, Mbashe, Mnquma,
Nelson Mandela Bay, Ngqushwa, Ngquza Hill,
Ntabankulu and Port St Johns, besides other
local municipalities.
Further, long-term evolution capacity expan­
sions will be undertaken at 396 sites and 17
new urban sites will be deployed across the
province.
Vodacom, which switched live its 5G mobile
network in three major municipal districts in
the Eastern Cape in 2021, plans to deploy more
than 50 new 5G sites in the region.
“It is important for us to invest in the next
generation of communication technology to
give our customers access to networks that
provide faster speeds and support the digital
economy,” said Vodacom Eastern Cape region
managing executive Zakhele Jiyane.
The accelerated investment in 5G in this
• From page 22
diamonds sold.
This reduction was owing to
a 20% decrease in diamonds
recovered, along with the deferral
of Tender 6 sales, as well as of
75 900 ct of predominantly highervalue stones from Tender 5 from
this year to next year.
As a result of the deferred
sales, Petra’s diamond inventory
increased to 715 200 ct, valued at
$65.9-million, at the end of the
period. This compares with the
inven­tory of 381 700 ct, valued
at $40.2-million, as at June 30,
2022. These figures exclude the 71
600 ct from Williamson’s blocked
parcel.
After the end of the reporting
period, Williamson received the
22
financial year is in line with Vodacom’s com­
mitment to connect the unconnected and help
bridge the digital divide between the urban
and rural areas of the province, he continued.
Jiyane further highlighted the strides in
making data prices and smart devices more
affordable, leading to growth in the number
of smart devices and a 40% increase in data
traffic in the province.
Vodacom’s customer consideration scores,
including Net Promotor Score, have increased,
with customers scoring Vodacom better on
measures such as value for money as they
see the overall value provided, from service
to network to price, he commented.
“The latest biannual network report by
the independent benchmarking organisa­
tion umlaut, part of Accenture, has ranked
Vodacom ‘Best in Test’ ahead of competitors
and scored the highest for reliability, data ser­
vices and crowd-sourced quality.”
Meanwhile, Vodacom Eastern Cape’s enter­
prise business unit is also working with the
Department of Basic Education to deploy infor­
mation and communication technology (ICT)
platforms in government schools to support
access to quality education.
As part of the transversal contract, the
region helped to digitalise over 2 000 health
community workers, connected over 120 000
smart meters in several municipalities and
final regulatory approvals and
consents necessary to commission
the newly constructed tailings
storage facility (TSF).
As a result, the commissioning
of the TSF and treatment plant
began in July, and production
resumed ahead of schedule.
At Koffiefontein, in South
A f r ic a , o ng o i ng c a r e - a n dmainte­nance activities are being
carried out as part of Petra’s
pre­p arations for a responsible
closure.
Throughout the quarter, the
com­p any benefited from the
sup­p ort of a weaker rand. The
exchange rate closed at R18.83 to
the dollar on June 30, compared
with R16.27 a dollar a year earlier.
The average exchange rate for
| ENGINEERING NEWS & MINING WEEKLY | August 4 –10, 2023
CONNECTING THE UNCONNECTED
Vodacom will build 106 new deep rural sites in
several Eastern Cape municipalities
supported close to 3 000 government vehicles
with Internet of Things solutions that helped
to keep costs down and improved efficiencies.
Vodacom continues to accelerate its invest­
ment in education through ICT centres in
schools, teacher centres, schools of excellence
and e-school platforms, as well as establish­
ing early childhood development centres to
improve education in the early years and roll­
ing out Vodacom’s #CodeLikeAGirl programme
aimed at developing coding skills among girls.
In addition, the company is providing
the KwaNobuhle Lovelife Youth Centre,
which attracts more than 5 000 youths, with
uncapped Internet wireless connectivity to
connect the youth at the centre free.
the financial year under review
was R17.77 to the dollar, compared
with R15.22 to the dollar in the
prior financial year.
Petra’s gross debt decreased
to $247.3-million as of June 30,
reflecting the repurchase of a
portion of the 2 026 loan notes.
However, Petra’s consolidated
net debt increased to
$176.7-million compared with
$40.6-million a year ago. This
increase was primarily owing to
the deferral of diamond sales to
the 2024 financial year, coupled
with planned higher capital
expenditure (capex) associated
with the mine plan extension
projects.
Over the past few years, Petra
has ta ken st rateg ic act ions
to st reng t hen it s bu si ness,
improve cash flow generation
and maintain capital discipline.
These efforts have positioned the
com­p any well to capitalise on
the favourable diamond market
fundamentals expected in the
medium to longer term.
Currently, Petra’s capital pro­
jects are progressing as planned
and are expected to result in a
significant increase in production
over the next three years.
At Cullinan, work is ongoing
on the CC1-E and C-Cut extension
projects, which are on track to
deliver incremental production
growth. Similarly, at Finsch, the
Lower Block 5 3-level 90L sublevel cave extension project is
pro­gressing as scheduled.
RA
Women in
business Webinar
How to grow the role and
presence of women in South
African business
Date: 16 August 2023
Time: 14:00
•
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in South Africa’s business environment?
What is the current state of play and do blockages
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What needs to be done to address current
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To register, scan QR Code or
email: shannon@creamermedia.co.za
CREAMER
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Confirmed panel members:
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Nolitha Fakude
Raksha Naidoo
Shameela Soobramoney
Rebecca Sands
Simangele Mvelase
Sedibelo Platinum Mines
Facilitator
WiMSA
Metskill
Minerals Council
South Africa
NBI
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NEWS&INSIGHT
ELECTRICITY
Persisting Concern
Grid still seen as key risk for upcoming renewables
round despite reduction in govt guarantee
TERENCE CREAMER | CREAMER MEDIA EDITOR
T
he government-default component of
the government guarantees extended
to the independent power producers
(IPPs) that will be selected to build new
solar and wind projects under the upcoming
seventh bid window (BW7) of South Africa’s
pro­gramme for the procurement of renewable
energy will be reduced from 100% to 80%.
IPP Office head Bernard Magoro tells
Engineering News & Mining Weekly that the
reduction follows a National Treasury review
of the Government Support Framework
Agreement, as well as consultations with the
market over the past year.
He also stresses that the liquidity protection
aspect remains intact – a component put in
place at the start of the Renewable Energy
Independent Power Producer Procurement
Programme (REIPPPP) to guarantee payments
to IPPs should Eskom, the single buyer of
electricity arising from the scheme, be unable
to honour its obligations.
Given Eskom’s precarious financial posi­
tion, the guarantee framework has proved
important for attracting bidders to the
REIPPPP.
However, it has also increased the level
of contingent liabilities held by the National
Treasury, which indicated in the 2022 Budget
Review that it would assess a reduction or
elimination of the guarantee, even though
IPP contingent liabilities represented a low
risk to the fiscus.
Magoro reports that the change is likely to be
the main new adjustment to the procurement
archi­t ecture when BW7 is launched in
September but argues that it should not
come as a surprise to prospective bidders and
should, thus, also not lessen market appetite.
That said, there is no time to issue a request
for information to test the market ahead of
the launch of the round, as well as to assess
whether the pipeline of shovel-ready projects
is sufficient.
The Department of Mineral Resources
and Energy has indicated that the next two
REIPPPP procurement rounds will have
allocations of 5 000 MW apiece, with BW8
expected to be launched in March next year.
Grid Scarcity
Magoro tells Engineering News & Mining
Weekly that the risks around grid access are
24
STORY HIGHLIGHTS
• During Bid Window 6, none of the 23
wind projects that competed for a
3 200 MW wind allocation advanced to
the preferred-bidder stage, partly owing
to inadequate grid capacity.
• The IPP Office has been having weekly
meetings with Eskom since Bid
Window 6 to ensure that there is no
repeat of that disappointment during
subsequent rounds.
likely to remain a far more significant issue
for potential bidders than the reduction of
the guarantee but also insists that significant
progress has been made over the past few
months to seek a solution to some of the grid
problems that materialised during BW6.
During that round, none of the 23 wind
projects that competed for a 3 200 MW wind
allocation advanced to the preferred-bidder
stage, partly owing to the grid capacity in the
Western, Eastern and Northern Cape provinces
on which the projects depended having been
absorbed by developers of private projects.
At this stage, it remains unclear how many
of those private projects have concluded power
purchase agreements, but market intelligence
suggests it may be below 500 MW and it does
not appear that any have entered construction.
At the time, Eskom had no grid queuing
rules and REIPPPP bidders were disallowed,
under the rules of the programme, from
obtain­ing firm grid connection budget quotes
until they were named as preferred bidders.
No such restrictions applied to developers of
projects seeking to take advantage of a change
to the regulations allowing distributed pro­
jects of any size to proceed without a licence,
including those that planned to wheel elec­
tricity through the grid.
Eskom has since announced a shift from a
‘first come, first served’ model to a ‘first ready,
first served’ approach and Magoro reports
that the IPP Office has been having weekly
meetings with Eskom since BW6 to ensure
that there is no repeat of that disappointment
during subsequent rounds.
Nevertheless, grid scarcity is likely to be
a key feature for some time yet and Eskom’s
upcoming Generation Connection Capacity
Assessment (GCCA) will be closely analysed,
| ENGINEERING NEWS & MINING WEEKLY | August 4 –10, 2023
BERNARD MAGORO
The upcoming Generation Connection Capacity
Assessment will make it clear where grid capacity
still exists
as it will indicate where grid capacity remains
available for both the public procurement
programme and private projects, where
the project pipeline has expanded to about
10 000 MW.
Magoro indicates that it is unlikely that the
BW7 and BW8 request for proposals (RFP)
docu­mentation will have any firm geographic
stipu­l ations for new projects but says the
upcoming GCCA will make it clear where grid
capa­city still exists and where it is heavily
constrained.
The GCCA is expected to be published this
month, ahead of the launch of BW7.
Magoro also expects clarity to be provided
next month on the approach that will be taken
regarding the reservation of grid capacity
for public procurement programmes and on
curtailment, which could help unlock scarce
grid capacity by allowing for the co-location
of projects at a single connection point.
Debate is currently under way within the
IPP Office regarding how the costs of curtailed
energy, or energy that is produced but cannot
be used, should be treated and there should
be clarity on the issue ahead of the launch of
the next round.
Grid capacity will also not be released
immediately from delayed procurement
pro­g rammes that remain active, including
REIPPPP BW5 and the far more controversial
Risk Mitigation Independent Power Producer
Procurement Programme (RMIPPPP).
“We currently have 16 BW5 projects out­
standing that have signed contracts and are
currently concluding financial close. These
projects have a total capacity of 1 574 MW,”
Magoro tells Engineering News & Mining
Weekly.
RA
NEWS&INSIGHT
Commercial operation deadlines, from
November 2024 to August 2025, have now also
been set for the projects that have not entered
construction, implying that there is a greater
risk of delayed projects facing penalties if
they fail to begin operating in line with the
agreed dates.
Magoro also confirms that the deadline for
the outstanding RMIPPPP projects, including
the powerships, has been extended again, this
time until the end of December.
An agreement has also been reached
between Eskom and the bidders to extend
grid connection budget quotes from the end
of July to the end of the year to align with the
new deadline.
The extensions, which have already been
heavily criticised, have been justified on the
basis that government – partly owing to a
year-long legal challenge – did not have all
the approvals in place for the signing of the
projects, with Eskom having provided its
approval only in May this year.
“Until all the approvals are in place from our
side, it is very difficult for us to put pressure
on the projects,” Magoro says.
Nevertheless, the future of the powership
projects and the 20-year power purchase
agreements remains uncertain, with Electricity
Minister Dr Kgosientsho Ramokgopa having
indicated that he will object to any powership
contract that exceeds five years and with
various environmental authorisations still
outstanding.
Procurement Architecture
Meanwhile, Magoro indicates that, besides
the changed guarantees framework, the
procurement architecture for BW7 is likely
to mirror that used for the Energy Storage
Independent Power Producer Procurement
Programme (ESIPPPP), under which govern­
ment is seeking to procure 513 MW, or at least
2052 MWh, of battery storage.
Under the ESIPPPP, 90 points are allo­cated
to price and 10 points to economic devel­
opment, which covers ownership, job crea­
tion, local content, management control,
skills development, enterprise and supplier
devel­o pment, as well as socioeconomic
development.
The economic development component is
neither obligatory nor a qualifying criterion,
however.
This, in line with the Constitutional Court’s
declaration of the regulations under the
Preferential Procurement Policy Framework
Act to be invalid.
Those regulations were used previously by
the IPP Office and others to include economic
development as obligatory qualifying criteria
in tenders.
“Even though we don’t have economic
development as a qualification criterion,
RA
we will still use such commitments to rank
projects in our evaluation process and
we believe that most of our participants
understand the need for economic develop­
ment and I personally don’t expect bidders
to neglect this in their bids,” Magoro asserts.
He is unable to say how ESIPPPP bidders
have responded to this change, given that the
bid submission deadline was postponed from
July 5 to August 2, in response to delays in the
issuance of cost estimate letters (CELs) for grid
connections. Eskom paused the issuance of
such letters in a bid to revamp its grid-access
rules, which have now been published, and
the utility has indicated that outstanding CELs
are being prioritised.
“We hope to make up time during the
bid evaluation phase, which was originally
scheduled to take place over two months, but
we are now looking to complete it in about a
month.”
The IPP Office hopes to use lessons gained
during the process to help it in preparing its
next battery storage request for proposals
for 1 230 MW, which will be launched in
March 2024.
Gas to Power
Meanwhile, it is also advancing its plans for
the procurement of gas-to-power IPPs, with
a decision having now been made to split the
3 000 MW programme into two.
A 2 000 MW site-agnostic RFP will be
released by the end of September and followed
later with a 1 000 MW programme to be located
at Coega, in the Eastern Cape.
While work is under way at the Central
Energy Fund and Transnet National Ports
Authority to develop gas import infrastructure
at Coega and Richards Bay, Magoro reports
that the gas supply component for the 2 000
MW programme may be left up to the bidders,
as was the case with the RMIPPPP.
He is confident that many of the issues that
have disrupted the recent public procurement
processes, including the supply chain
problems that affected BW5 in particular, are
now under control.
Nevertheless, he remains concerned about
the lack of grid capacity, which he says needs
to be addressed in parallel to the current
public and private efforts to introduce new
generation.
Asked whether the IPP Office could play
a role in procuring grid infrastructure from
the private sector as it has done in the area of
generation, he replies: “Eskom has made it
clear that they are ready to execute and that
they have their strategy to do so.
“All I can say is that the model for grid
procurement is exactly the same as what
we are doing; it would just be for a different
product. So, it should not be difficult to execute
should it come our way.”
LEGISLATIVE ENVIRONMENT
Tailings regulations critical
aspect of MPRDA review
PARLIAMENTARY Portfolio Committee on
Mineral Resources and Energy member
Mathews Wolmarans has noted that one of
the key areas of the Mineral and Petroleum
Resources Development Act (MPRDA)
that needs to be reviewed involves tailings
management.
Speaking at the MPRDA Review Summit in
Johannesburg on July 13, he referred to the
Jagersfontein tailings dam failure that occurred
in September last year, causing mudslides and
floods that resulted in widespread damage to
farmlands, livestock, private residences and
businesses in the area.
The tailings dam was linked to an old
De Beers-owned mine, which was decom­
missioned in 1972 and deproclaimed as a
mine, which meant that the property was no
longer legally considered a mining property.
Since then, the tailings dam changed hands
several times.
Wolmarans said that these transactions
were outside of the control of the DMRE, as a
result of a court ruling in 2009 that confirmed
that the MPRDA did not regulate tailings.
This meant that the operation was carried
out a s an industrial ope ration with no
obligation to comply with the regulations and
requirements of the MPRDA and the Mine
Health and Safety Act.
Thus, although the site was inspected by
the Department of Employment and Labour
for worker health and safety reasons, as well
as by the Department of Water and Sanitation,
it was not inspected by the DMRE’s mine
inspectorate, the officials of which possess
the necessary training and mandate to check
the safety of tailings dams.
This could apply to any tailings dam that is
not currently on a mining right owing to the
original mine having been deproclaimed under
pre-MPRDA minerals legislation.
Wolmarans said that this issue was one
of the key factors in requesting the DMRE
to initiate a review of the MPRDA, as the
re sulting unc e r t a int y sur rounding the
regulation of tailings and mine dumps posed
multiple potential risks to the industry and
the public.
Delegates suggested during a breakaway
session at the MPRDA Review Summit that
the MPRDA be revised to apply to residue
stockpiles, which would ensure that the
owners of old dumps would have to operate
them under the same health, safety and
environmental compliance standards as other
operating mines, with the added benefit of
regular mining inspector visitations.
CAMERON MACKAY
SENIOR ONLINE WRITER
August 4 –10, 2023 | ENGINEERING NEWS & MINING WEEKLY
|
25
NEWS&INSIGHT
RENEWABLE ENERGY
Financing Pact
Scatec announces renewable energy financing
agreement with CFM
MARLENY ARNOLDI | CREAMER MEDIA SENIOR CONTRIBUTING EDITOR ONLINE
N
orwegian renewable energy company
Scatec has signed an agreement to
raise $102-million in funding from
Netherlands-based investment manager
Climate Fund Managers (CFM) to accelerate
its growth ambitions.
Notably, the deal will be done through
Release by Scatec, which is a flexible leasing
agreement of preassembled solar photovoltaic (PV) and battery equipment that Scatec
established in 2019 for the mining and utilities market.
CFM, as a climate-centric blended finance
fund manager backed by various financial
institutions, has invested in Release through
the Climate Investor One fund. The fund is a
vehicle focused on renewable energy infrastructure in emerging markets.
CFM will contribute $55-million in equity
for a 32% stake in Release, and also provide
shareholder loans totalling $47-million, part
of which will be on concessional terms. Scatec
will retain the majority shareholding of 68%.
The companies expect the transaction to
close in the third quarter of the year.
The investment will be used to roll out
Release’s innovative solar PV and battery
solutions to power utilities and mining companies across Africa, reducing energy costs,
strengthening energy security and helping
to decarbonise generation by replacing traditional diesel and heavy fuel oil or coal-fired
generation solutions.
“We are very excited to have CFM join us as
a partner to accelerate the significant growth
potential of the Release platform. Scatec is
establishing a strong partnership and has
raised external financing through a value
accretive transaction to fund Release’s growth
ambitions,” comments Scatec CEO and Release
chairperson Terje Pilskog.
He adds that Release is offering a unique
renewable energy solution in a rapidly growing market segment that requires a different
business model to Scatec’s larger-scale project business.
Pilskog adds that the transaction with CFM
establishes Release as a strong and independent company, while Scatec remains the main
shareholder and offers services to support
Release and drive synergies in the next phase
of the company’s development.
“One of the greatest barriers to adopting
solar technology is its capital-intensive nature.
Release now helps our customers overcome
this by providing a flexible and affordable
model. Our solar PV and battery solution is
extremely competitively priced compared with
diesel generators or other traditional grid stabilisation measures.
“The new shareholder funding will be supplemented by Release through additional debt
and guarantee facilities that are currently in
advanced negotiations. This gives us the financial foundation we need to meet the strong
demand for our flexible leasing model, for
GOOD TRACTION
Release has projects in operation and under construction in Cameroon, South Africa, Mexico and South
Sudan, including 47 MW of solar photovoltaic
26
| ENGINEERING NEWS & MINING WEEKLY | August 4 –10, 2023
easily deployable renewable power plants,”
says Release CEO Hans Olav Kvalvaag.
Meanwhile, Scatec says Release is experiencing good traction in the market, particularly among African utilities.
It has projects in operation and under construction in Cameroon, South Africa, Mexico
and South Sudan with a total capacity of
47 MW of solar PV and 20 MWh of battery storage, as well as additional contracts for 35 MW
of solar PV and 20 MWh of storage in Chad.
Release intends to replicate its rapid deployment model to address shortfalls in local grid
power supplies throughout the region.
CFM CEO Andrew Johnstone comments
that CFM’s purpose is to help end the climate
crisis by raising and deploying cutting-edge
blended finance funds at scale and at pace.
“Our blended finance model facilitated the
integration of impact finance into the deal
structure, which Release will be able to leverage to improve its cost structure for its battery and grid connection solutions, allowing
Release to offer even more competitive pricing and better value to its clients,” he adds.
After closure of the transaction, Release
will be accounted for as a joint venture investment in the group accounts of Scatec, with no
impact on the proportionate financials from
the transaction.
Meanwhile, Rand Merchant Bank (RMB)
comments that it is proud to be the sole financial adviser to Scatec on the $102-million
investment from CFM.
“It is increasingly clear that closing Africa’s
energy gap will require innovative solutions
that disrupt the standard approach to the
provision of power. Release’s unique offering will contribute positively to Africa’s future
energy mix by rapidly deploying power to
remote areas where the only other viable
energy alternative is diesel and heavy fuel
oil,” RMB energy corporate finance head Liz
Williamson notes.
She adds that RMB remains committed
to playing its part in Africa’s energy transition by supporting companies that can
unlock positive social and environmental
outcomes
“As one of the leading renewable energy
providers in Africa, Scatec is a key client for
RMB. We are, therefore, extremely proud to
have advised Scatec on the capital raise for
its Release business,” Williamson states, adding that the offering from Release is unique in
Africa, providing modularised off-grid solutions for corporate and utility customers.
This successful capital raise from CFM as a
key investor in the green economy globally will
catapult both Release and its critical offering
across the continent, as Africa looks to accelerate its transition to renewable energy, says
RMB infrastructure sector solutions power
division head Daniel Zinman.
AN
29-30 AUGUST 2023
SANDTON CONVENTION CENTRE, JOHANNESBURG
acmsummit
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WWW.ACMSUMMIT.COM | +27 78 325 5528 | nana@acmsummit.com
CONNECT . PARTNER . ADAPT
OFFICIAL GOVERNMENT PARTNER
OPINION& ANALYSIS
TRADE@WORK
Signed languages
S
outh Africa now has a t welfth official lang uage, following the historic
signing of the Sign Language Bill into law by President Cyril Ramaphosa
on July 19. South Africa is the fourth African country to do so – following
Kenya, Zimbabwe, and Uganda – and the forty-first country internationally.
There are 26 countries in Europe that officially recognise sign language, with six in
South America, two in each of Oceania and
Asia, and one – namely Mexico – in North
America.
In case you were wondering just how many
languages there are in the world – there are
7 117, of which 2 144 are spoken on the African
continent.
Roughly 150 to 200 world languages are
spoken by more than one-million people,
and 46 have only a single speaker left. Forty
per cent of the world’s population is monolingual, which means that they speak only one
language.
Should you be contemplating becoming
bilingual, you might want to consider learning Toki Pona, which is considered to be the
smallest language in the world. It consists of
a mere 123 words, and it is said that it takes
about 48 hours to learn, and you could converse with about 100 people.
Before going any further, let’s reflect on this
article’s headline. Is it ‘signed language’ or
‘sign language’, and should it be ‘language’
or ‘languages’? If you have read this column
before, you might well know me as a stickler
for terminology.
To answer the first question, ‘signed language’ is linguistically correct, but it is said
that “it could be misinterpreted so that it does
not support the values of the deaf community”.
As for the second question, it is languages.
There are more than 300 different signed
languages, which are fully fledged languages
that are structurally distinct from the spoken
language, according to the United Nations.
As for the number of deaf people worldwide,
according to the World Federation of the Deaf
(WFD), there are more than 70-million deaf
people, over 80% of whom live in developing countries.
The Convention on the Rights of Persons
with Disabilities recognises and promotes
the use of signed languages, which it considers to be equal in status to spoken languages.
This obligates States to facilitate the learning of signed languages and to promote the linguistic identity of the deaf community.
If you are wondering about Braille and its
possible inclusion as a language; well, it is
not considered to be a language. Rather, it is
a tactile code enabling completely blind and
visually impaired people to read and write
by touch.
So, as of July 19, Sout h A f r ica n Sig n
Language, or SASL, is an officially recognised language. It is, however, not the only
signed language used in South Africa, but is
the one that is promoted for use by the deaf
in South Africa.
Instead of merely celebrating our twelfth official language, why don’t you become an active
participant by studying the language? In most
cases, you do not even need to venture outside
your home or office – use your search engine.
BIOTECHNOLOGY
Cape Town startup seeks to replace plastics
with home compostable biomaterials
CAPE TOWN-based young-women-led
award-winning biotech startup BAOM eco
solutions (BAOM), which has developed
compostable cellulose-based alternatives
to plastics and other packaging materials,
is now, seed investment permitting, ready
to scale up to initial commercial production.
The company’s biofilms, as it calls its
products, are not merely biodegradable but
compostable, allowing end-users to process biofilm packaging themselves by actually burying it in their gardens or compost
28
heaps, thereby helping nourish their plants.
Alternatively, they can give the material to
their local community garden or dispose of
it to for-profit composting companies.
The company was able to further develop
its prototype biofilms through scientific
engagement, thanks to a micro-grant from
Cape Town biotech enabler UVU-Bio. The
grant allowed BAOM access to UVU-Bio’s
laboratories. However, the startup has now
outgrown the enabler’s micro-lab facilities.
“The next step for us is to scale up to
| ENGINEERING NEWS & MINING WEEKLY | August 4 –10, 2023
Riaan de Lange
There are a number of academic institutions that offer courses, in some instances
free of charge. Or you could consider studying
through Deafinition (www.deafinition.co.za),
which is a nonprofit organisation that provides a range of services and funding opportunities to promote equal access for the deaf
community.
But why study the language? According to
www.handtalk.me: “The truth is that learning sign language enriches your cognitive processes and helps you develop higher abstract
and creative thinking, improves your body
language skills, increases problem-solving
capacities, and strengthens your overall communication skills. Simply put, it is a great workout for your brain.”
Remember to diarise September 23, which is
the International Day of Sign Languages. The
significance of the date is that it celebrates the
establishment, in 1951, of the WFD, and was
first celebrated in 1958.
This economic and trade-focused column is prepared by
Riaan de Lange – riaan@tariffandtrade.co.za. The views
expressed in this column are the author’s personal views
macro-lab facilities,” explains BAOM product developer Melian Dott. “A macro-lab
would be the beginning of a production facility. This would involve larger-scale laboratory
equipment, such as an industrial-scale urn
of, ideally, 500 litres capacity. If we get the
capital and equipment we need, we could
deliver our first production samples within
two months.”
The company can produce biofilms with
different thicknesses and with different textures. It has so far developed five distinct
categories of biofilms, which it classifies as
‘thick plastic’, ‘thin plastic’, ‘vegan leather’,
‘cardboard’ and ‘paper’. ‘Thick plastic’ biofilms could be used basically for anything
that flexible PVC sheeting is currently used
for. ‘Thin plastic’ mimics clingwrap and lam-
AN
OPINION& ANALYSIS
AFRICA BEAT
Embarrassing talk shop
M
uch as one may try, it’s not always possible to be charitable towards
some of Africa’s institutions. The ver y unexceptional and scandalprone Pan African Parliament (PAP), which has been hosted by South
Africa since its inception in 2004, is one such body.
The continental legislature’s president from
2015 to 2021, Cameroonian Roger Dang, was
a frequent subject of media coverage during the latter part of his tenure, but this was
mostly for the wrong reasons. He had his first
brush with scandal in 2018, when it emerged
that he was refusing to release a report on the
PAP’s finances. At about the same time, South
African media reported that he had refused a
Ministerial-level residence offered to him by the
South African government, preferring to book
himself into the much costlier Michelangelo
Hotel, in Sandton.
Dang also endured a gauntlet of protests by
staff who were gatvol with his alleged bulling,
favouritism, disregarding of African Union
(AU) rules and regulations, and illegally swearing in Parliamentarians from Côte d’Ivoire.
In June 2021, during elections for Dang’s
successor and other senior officials, the PAP
chamber at Gallagher Estate, in Midrand,
became an embarrassing spectacle as disagreement over who to elect degenerated into
scuffles and bitter verbal exchanges. This
prompted the bosses at the AU headquarters
in Addis Abba, Ethiopia, to order an indefinite halt to the proceedings. When voting was
eventually allowed to take place after about a
year, Zimbabwean Parliamentarian Fortune
Charumbira emerged as the new president.
Charumbira has proved to be not any better than his predecessor. In May this year,
he was charged with sexually assaulting his
inated thin plastics. ‘Vegan leather’ mimics
smooth cowhide, or textured crocodile or
ostrich hide. ‘Cardboard’ would substitute
for real cardboard, but BAOM’s material is
fire-resistant and, if it gets wet, returns to its
shape when it dries out. ‘Paper’ performs
exactly like real paper, and can be printed on.
It should be noted that each of these categories can be subdivided into different
variations. For example, ‘paper’ can be subdivided into ‘writing paper’, ‘baking paper’
and so on.
These biofilms were developed using the
company’s own proprietary processes.
“Our first go-to-market product will actually be an intermediate thick/thin biofilm, to
be used to wrap tree roots, for trees being
planted in reforestation and rehabilitation
AN
niece. But he continues in his position as if
nothing has happened. The 250 members of
the PAP are obviously oblivious to reputation
management 101, which holds that a positive
assessment of an organisation’s leadership is
key to the overall reputation of the organisation itself. Besides, gender-based violence is
a big issue in many African countries, which
makes the PAP members’ reticence quite disturbing. The fellow should have been suspended immediately.
In the latest scandal, the PAP has appointed
one Eubert Angel, a minister of religion who
is Charumbira’s compatriot, as its ambassador for interfaith dialogue and humanitarian
affairs. The appointment was first revealed
by an independent Zimbabwean media house
and subsequently confirmed by Charumbira
himself on July 19.
For the uninitiated, Angel was exposed by
Qatari television channel Al Jazeera as a key
figure in the Gold Mafia racket, whereby money
launderers and gold smugglers in Zimbabwe
secretly sent abroad illegally obtained money,
sometimes with the assistance of corrupt
employees of South African banks. In Al
Jazeera’s clandestinely obtained footage, Angel
is seen agreeing to smuggle $1.2-billion in dirty
cash into Zimbabwe using his diplomatic status. He is Zimbabwean President Emmerson
Mnangagwa’s ambassador-at-large for Europe
and the Americas.
But why, as Africans, do we continue to be
projects,” reports company business developer Chloe Cormack. “There is a lot of
investment going into reforestation and food
security initiatives at the moment, because of
the acceleration of climate change impacts
that we are experiencing. Our product retains
water, before breaking down and turning
into compost, thereby being good for both
the trees and the soil. Indeed, and importantly, BAOM root-wraps are so far showing
efficacy in improving tree, and other plant,
transplant survival rates, which is often a
major challenge experienced in land restoration and food security projects.”
The second go-to-market product will
be a food-compatible thin film for use in
wrapping foods. This, once used, could be
repurposed (composted) into consumers’
Martin Zhuwakinyu
embarrassed by this absolutely useless institution? After all, it is a toothless bulldog without
any powers, unlike the European Parliament,
for example. This unpalatable state of affairs
was to be remedied by the Malabo Protocol,
which was adopted by the AU Assembly in
2014 and was intended to give the PAP some
legislative powers. But only 12 of a minimum
of 28 States have ratified this protocol, preventing it from taking effect. Even then, the
AU Assembly would have the power to determine the areas over which the PAP would have
jurisdiction.
It’s imperative that we have a European
Parliament-style PAP with men and women
who are prepared to call out the excesses of
fellows like Dang and Charumbira and their
ilk and can truly provide oversight of the AU’s
activities and ensure the implementation of
its decisions.
Dr Zhuwakinyu, who holds a PhD in communication
(media studies) from the University of South
Africa, is Creamer Media senior deputy editor –
martinz@engineeringnews.co.za
gardens, or, if thrown into a bin, would in
due course decay just like waste food does,
although BAOM strongly discourages the
latter option, as food decay in landfills is a
major source of greenhouse gas emissions,
as well as health hazards.
The company’s future operating concept
is to deploy a network of small factories, to
serve local markets.
This would be more efficient than centralised large production facilities with widespread distribution networks.
BAOM took first place in the ‘Green
Sciences for Cosmetics Challenge’ category in the recent African Union-European
Union Innovation Festival.
REBECCA CAMPBELL
SENIOR DEPUTY EDITOR
August 4 –10, 2023 | ENGINEERING NEWS & MINING WEEKLY
|
29
PROJECTSINPROGRESS
Castle Wind Farm
Name of the Project
Castle Wind Farm.
Location
De Aar, in the Northern Cape, South Africa.
Project Owner/s
The Castle Wind Farm will be built and oper­
ate d by a c o n s o r ti u m c o m p r i s i n g Af r i c a n
Infrastructure Investment Managers (AIIM),
through its renewable-energy project develop­
ment and delivery platform African Clean Energy
Developments, and Reatile Renewables.
Rand Merchant Bank, a division of FirstRand
Bank Limited, is the sole mandated lead arranger
for the project.
Project Description
T h e 8 9 M W Ca s tl e W i n d Fa r m w i l l s u p p l y
renewable energy to Sibanye-Stillwater’s South
African mining operations through an Eskom
wheeling agreement.
Potential Job Creation
Not stated.
Capital Expenditure
The wind farm will be funded by the consortium,
under the terms of the 15-year power purchase
agreement (PPA) signed with Sibanye.
Planned Start/End Date
Commercial operation is expected in early 2025.
Latest Developments
Sibanye concluded its first PPA and achieved
financial close on the Castle Wind Farm in
May 2023.
Key Contracts, Suppliers and Consultants
None stated.
Contact Details for Project Information
AIMM, tel +27 21 670 1234 or
email info@aiimafrica.com.
Newinbosch mixed
use development
Name of the Project
Newinbosch mixed-use development.
Location
The former Cloetesdal wine farm, across the road
from the Welgevonden estate, in Stellenbosch, in
the Western Cape, South Africa.
Project Owner/s
Similan.
Project Description
The project will add 1 320 middle-class dwellings
to housing stock in Stellenbosch.
The units will include apartments; simplexes;
townhouses; courtyard units in private cul-desacs with parks to accommodate families with
children and those choosing the option to include
a granny flat; and freestanding houses.
Every home will have a photovoltaic geyser, while
stormwater and grey water (from the apartments)
will also be used for irrigation.
The project will also include fibre, a 7 500 m 2
shopping centre, a local eatery, a dog park,
an urban farm, a church, an amphitheatre,
a s w i m m i n g p o o l, a s k a te p a r k , a g y m , a
multipurpose sports court, boules courts, cricket
nets, a dam, a creche, a primary school and
a high school, as well as cycling and running
routes.
30
By Sheila Barradas | Senior Deputy Editor
Potential Job Creation
Not stated.
Capital Expenditure
Not stated.
Planned Start/End Date
The project will take up to six years to complete.
Latest Developments
None stated.
Key Contracts, Suppliers and Consultants
Raubex (main contractor).
Contact Details for Project Information
Similan, tel +27 21 883 2433 or
email info@similan.co.za.
Collie battery anode
material facility
Name of the Project
Collie battery anode material (BAM) facility.
Location
Coolangatta industrial precinct 5 km from Collie,
in Western Australia.
Project Owner/s
International Graphite.
Project Description
A scoping study has made a compelling case for
the proposed BAM facility.
T he stud y propose s a facilit y de signe d to
process up to 40 000 t/y of graphite concentrate
to produce a full range of downstream graphite
products. The f lowsheet involves graphite
micronising, spheroidising and non-HF chemical
purification, to produce uncoated spheroidised
purified graphite (USPG), then carbon coating to
produce coated spheroidised purified graphite
(CSPG). The CSPG facilities could produce up to
18 600 t /y of CSPG and 17 000 t/y of micronised
by-products.
T h e U S P G f a c i l i t i e s c o u l d p r o d u c e u p to
20 000 t/y of USPG and 17 000 t/y of micronised
by-products.
T he proposed plant has been designed in
modules and as two parallel lines, which could
be implemented in stages. Initially USPG product
could be produced with coating facilities added
to produce CSPG.
Potential Job Creation
Not stated.
Net Present Value/Internal Rate of Return
The CSPG has a pretax-prefinance net present
value, at a 10% discount rate, of $626-million and
an internal rate of return of 41%.
The USPG is expected to deliver a preta xprefinance net present value, at a 10% discount
rate, of $290-million and an internal rate of return
of 48%.
Capital Expenditure
The total capital cost for the CSPG facility is
estimated at $222-million.
The total capital cost for the USPG facility is
estimated at $87-million.
Planned Start/End Date
A 24-month construction and commissioning
period is estimated for the USPG and CSPG
facilities, with commercial production achieved
for the USPG facilit y within this period.
Commercial productioan for the CSPG facility is
expected in another six months thereafter.
T h e p ro d u c ti o n f a c i l i ti e s a re ex p e c te d to
operate at nameplate capacity between 12 and
18 months from commissioning.
| ENGINEERING NEWS & MINING WEEKLY | August 4 –10, 2023
Latest Developments
None stated.
Key Contracts, Suppliers and Consultants
None stated.
Contact Details for Project Information
International Graphite, tel +61 412 111 962.
Parmelia gas pipeline
conversion project
Name of the Project
Parmelia gas pipeline conversion project.
Location
South of Perth, in Western Australia.
Project Owner/s
APA Group.
Project Description
The Parmelia gas pipeline mainline is about
416 km long and transports gas from the Perth
basin gasfields, near Dongara, the Carnarvon
basin (through the Dampier to Bunbury natural
gas pipeline) and APA’s Mondarra gas storage
facility to the Kwinana Industrial Area, south of
Perth.
In Pha se 1 of the proje ct, A PA d eve lop e d
a hypothesis for hydrogen per formance by
conducting material tests of base metal in air,
and completing mathematical modelling to
predict its behaviour when exposed to hydrogen.
In Phase 2, pressurised hydrogen laboratory
testing has confirmed the technical feasibility of
converting a 43 km section of the Parmelia pipe­
line to carry 100% hydrogen or blended hydrogen
without reducing the operating pressure.
Phase 3 will include detailed safety studies
and conversion plans, while the investigation of
poten­t ial supply and offtake opportunities will
continue.
Potential Job Creation
Not stated.
Capital Expenditure
The project is par tly funded by the Western
Australian government’s Renewable Hydrogen
Fund.
Latest Developments
None stated.
Key Contracts, Suppliers and Consultants
None stated.
Contact Details for Project Information
APA Group, email ir@apa.com.au.
BM-C-33 project
Name of the Project
BM-C-33 project.
Location
The BM-C-33 licence is located about 200 km
from shore, in water depths up to 2 900 m in the
Campos basin presalt, in Brazil.
Project Owner/s
Equinor, Repsol, Sinopec Brasil and Petrobras.
Project Description
BM-C-33 will be the first project in Brazil to treat
gas offshore and be connected to the national
grid without further onshore processing.
The project comprises three presalt discoveries
– Pão de Açúcar, Gávea and Seat – containing
natural gas and oil/condensate recoverable
reserves of more than one-billion barrels of oil
RA
equivalent. The project involves the delivery of
a floating production, storage and offloading
(FPSO) unit, which will have a capacity of about
126 000 bbl/d.
Potential Job Creation
Not stated.
Capital Expenditure
About $9-billion.
Planned Start/End Date
The expected date of the FPSO is 2027. First oil
is expected in 2028.
Latest Developments
None stated.
Key Contracts, Suppliers and Consultants
TechnipFMC (subsea umbilicals, risers and
flowlines, or Surf); and Modec Inc (sales and
purchase agreement for the delivery of an FPSO).
Contact Details for Project Information
Equinor, tel +47 51 99 00 00.
Repsol Sinopec Brasil, tel +55 21 2559 7000 or
email contato@repsolsinopec.com.
Petrobras, + 55 21 99921 1048 or
email imprensa@petrobras.com.br.
H2@Hydro project
Name of the Project
H2@Hydro project.
Location
Albbruck, Germany.
Project Owner/s
RWE and badenova.
Project Description
RWE and badenova propose to jointly build
a nucleus for the production, transpor t and
distribution of green hydrogen on the Upper
Rhine region. RWE plans to build an electrolysis
plant with a capacity of 50 MW in Albbruck,
next to RADAG’s run-of-river power plant. The
plant will use green electricity from the region to
produce up to 8 000 t/y of green hydrogen. In
parallel, badenova plans to build a new hydrogen
pipeline from Waldshut to Albbruck to reach
industrial and transport customers on both sides
of the Upper Rhine.
Potential Job Creation
Not stated.
Capital Expenditure
Not stated.
Planned Start/End Date
Construction is expected to start in early 2024.
The electrolysis plant will go into operation in
2026.
Latest Developments
None stated.
Key Contracts, Suppliers and Consultants
None stated.
Contact Details for Project Information
RWE, tel +49 201 5179-5008 or
email communications@rwe.com.
badenova corporate communication
Michaela Röhm,
email michaela.roehm@badenova.de.
Los Ricos North project
Name of the Project
Los Ricos North project.
Location
Jalisco state, Mexico.
Project Owner/s
GoGold Resources.
Project Description
Los Ricos North has total indicated resources
of 22.3-million tonnes grading 1.66 g/t gold
e q u i v a l e n t a n d 12 2 g / t s i l v e r e q u i v a l e n t.
Indicated resources are estimated at 20.5-million
tonnes grading 1.51 g/t gold equivalent and
111 g/t silver equivalent.
A preliminar y economic assessment on the
proje ct has propose d a n ope ration with a
13-ye ar mine life, producing 110.3-million
payable silver equivalent ounces comprising
68-million silver ounces, 221 700 gold ounces,
22.8-million pounds of copper, 144.1-million
pounds of lead and 242.2-million pounds of zinc.
Potential Job Creation
Not stated.
Net Present Value/Internal Rate of Return
The project has a pretax net present value, at a
5% discount rate, of $645-million and an internal
rate of return of 39.8%, with an after-tax payback
of three years.
Capital Expenditure
Initial capital costs are estimated at $221-million.
Planned Start/End Date
The project is expected to take 18 months to
build.
Latest Developments
None stated.
Key Contracts, Suppliers and Consultants
None stated.
Contact Details for Project Information
GoGold Resources investor relations contact
Steve Low, tel +1 416 855 0435 or
email steve@gogoldresources.com.
Zafranal copper project
Name of the Project
Zafranal copper project.
Location
Porphyry copperbelt of southern Peru, in the
Arequipa Region.
Project Owner/s
Compañía Minera Zafranal, a joint venture
between Teck Resources (80%) and Mitsubishi
Materials Corporation (20%).
Project Description
T he proje ct will produce coppe r and gold
concentrates through an openpit mining and
conventional concentration process over a
19-year expected mine life.
The mine and concentrator are expected to
produce an average of 133 000 t of copper
contained in concentrate during its first five years
of production.
Potential Job Creation
Not stated.
Net Present Value/Internal Rate of Return
Not stated.
Capital Expenditure
Not stated.
Planned Start/End Date
Zarfranal received regulatory approval for the
project in May 2023. The project could be
positioned for a final investment decision as early
as the first half of 2024.
Latest Developments
None stated.
Key Contracts, Suppliers and Consultants
None stated.
Contact Details for Project Information
Teck Resources, tel +1 604 699 4257 or
email investors@teck.com.
Mitsubishi Materials Corporation,
tel +81 3 5252 5206.
COMING UP
• RWE is testing the feasibilit y of retrofitting
carbon capture technology at its combinedcycle gas power stations at Pembroke and
Staythorpe, in the UK. If the projects progress,
they will be capable of securing up to 4.7 GW
of flexible, decarbonised generation capacity –
enough to power 8.1-million UK homes
• Minerals developer Tiris Resources’ uranium
project, in Mauritania, is the first major calcrete
uranium discovery in the region. The project
ha s b e e n c o nf ir me d a s a low c a p it a l - a n d
operating-cost development opportunity, with
an estimated life-of-mine of 15 years
To receive regular updates on these and other
projects, subscribe to Creamer Media’s
Research Channel Africa.
Email: subscriptions@creamermedia.co.za
Artisanal mastery that’s more than skill
www.hydra-arc.com
info@hydra-arc.com
Tel: +27 17 632 7000
RA
August 4 –10, 2023 | ENGINEERING NEWS & MINING WEEKLY
|
31
VALVES
Compiled by SIMONE LIEDTKE
Innovative valve solutions
for African mines
SIMONE LIEDTKE | CREAMER MEDIA SOCIAL MEDIA EDITOR & SENIOR WRITER
­ urability”, with key strategies including
d
improved sealing technology to prevent leakage and wear, precision engineering for efficient operation, and a proactive design for
easy on-site adjustments, he says.
“This ensures our valves remain reliable
in remote settings, minimising maintenance
time and maximising efficiency. CMO Valves
collaborates closely with African mining companies, understanding their specific needs
and providing customised valve solutions for
seamless integration,” Bowden says.
Investment Value, Trends
TAILORED SOLUTIONS
CMO Valves strives to deliver valves that are
highly durable and reliable, but also tailored
specifically to the needs of African mining
M
ining companies operating in Africa must overcome various obstacles, and
valves can play a crucial role in mitigating these challenges and ensuring
smooth operations, says distribution ser vice provider CMO Valves MD
Mark Bowden.
Mining operations face several challenges,
owing to the continent's challenging operational landscape, which includes remote
locations, extreme weather, insufficient infrastructure and unstable political situations.
Among these challenges is the supply of reliable water sources, which can be efficiently
managed to ensure less waste and that less
water is used through using valves, which is
“especially vital for mining operations that
heavily rely on water for processing and dust
suppression purposes”, he says.
Considering that infrastructure limitations
often plague mining sites in Africa, Bowden
says valves that are robust and resistant to
harsh environmental conditions can enhance
the durability and longevity of equipment,
reducing maintenance time and costs.
CMO Valves, therefore, offers innovative
solutions to address the unique challenges
faced by mining operations in Africa.
Using these technologies enables mining
companies to navigate through difficulties,
improve efficiency and contribute to sustainable and responsible mining practices, he adds,
highlighting that CMO's knife gate valves have
32
proven to be “exceptionally well-suited” to the
challenging mining environment in Africa.
The valves offer enhanced durability having been meticulously designed and manufactured using robust materials capable of
withstanding abrasive materials and high
pressures, resulting in extended valve life.
Moreover, these valves demonstrate superior
performance, ensuring tight shut-off, smooth
operation and reliable slurry management,
which enhances the overall effectiveness of
mining operations.
“CMO Valves understands the unique
requirements of each mining operation in
Africa and provides tailored solutions to meet
specific needs, seamlessly integrating into
existing systems and processes.
“By leveraging CMO's knife gate valves, mining companies in Africa can mitigate operational risks, reduce downtime and enhance
their bottom line, contributing to the growth
and development of the continent's mining
industry,” Bowden says.
T he va lves a re desig ned for remote
locations with limited maintenance access,
delivering “unmatched reliability and
| ENGINEERING NEWS & MINING WEEKLY | August 4 –10, 2023
CMO Valves invests substantially in advancing
valve technology and enhancing operational
efficiency in the mining industry.
“The demanding African mining landscape
requires valves that can withstand extreme
conditions while maximising productivity
and safety. CMO Valves embraces this challenge and continuously improves its robust
knife gate valves to meet these unique requirements,” states Bowden.
Additionally, the company’s research and
development team, in collaboration with CMO
Spain, constantly explores modern design
enhancements and material innovations to
address the diverse challenges encountered
by African mining operations.
Through close collaboration with industry
experts and extensive field trials, CMO Valves
strives to deliver valves that are “not only
highly durable and reliable, but also tailored
specifically to the needs of African mining”.
To achieve this, the company establishes
strong partnerships with mining companies
across the continent, actively participates in
rigorous testing and ensures that their knife
gate valves “consistently surpass industry
standards and exceed client expectations”, he
adds. CMO Valves also anticipates significant
trends and innovations that will improve mining operations on the continent as the mining
industry moves towards a more sustainable
and technologically advanced era.
“The valves market stands out as an area
experiencing remarkable enhancements.
Futuristic innovations are shaping the way
mines operate, promising increased efficiency,
safety and productivity,” Bowden says.
Some of these innovations includes the integration of technologies, such as the Internet
of Things and artificial intelligence, which
modernise systems at mines.
Smart valves with data analytics ­capabilities
• To page 37
AN
Less interruptions. No problem.
The Delta Industrial™ valve is the one true zero-leak valve. The unique
design of the Delta Industrial™ valve offers zero-leak performance in
the most severe applications. Its innovative design, industry-leading
performance, customizable features and absolute dependability have
made the Delta Industrial™ valve, the valve of choice worldwide.
DELTA
INDUSTRIAL™
Get more from your mine with Delta Industrial.™
Visit www.deltaindustrial.weir today.
Copyright ©, Weir Minerals Australia Limited. All rights reserved. DELTA INDUSTRIAL is a trademark of Delta Industrial Valves,
Inc.; WEIR and the WEIR Logo are trademarks and/or registered trademarks of Weir Engineering Services Ltd. 157626/0716.
Minerals
www.global.weir
VALVES
Versatile valve
solution introduced
SIMONE LIEDTKE | CREAMER MEDIA SOCIAL MEDIA EDITOR & SENIOR WRITER
C
ombining lightweight construction, modular capabilities, corrosion resistance
and high-qualit y materials, industrial equipment supplier Instru-Ser ve’s
butterf ly valve 565 prov ides “except ional perfor mance” while reducing
installation, maintenance and replacement costs.
Manufactured at manufacturer Georg Fischer's
Seewis facility, in Switzerland, the valve
is considered a modern solution that offers
numerous advantages over traditional metal
butterfly valves, says Instru-Serve sales and
project manager Kevin Lindsay and Georg
Fischer Piping Systems (GF International)
sales manager Holger Hoffmann.
Lindsay and Hoffman explain that the
butterfly valve 565 “revolutionises” industrial
valve solutions with its high operating
pressure, reduced torque requirements and
compatibility with various actuators.
It features a fibre-reinforced polyamide valve
body (wafer) and polyvinylidene difluoride
(PVDF) with fibre-reinforced polyamide disc,
34
making it up to 60% lighter than its steel
counterparts.
“This lightweight design eliminates the
need for additional support and bracing
typically required for metal butterfly valves in
plastic piping systems,” Lindsay and Hoffman
comment.
The butterfly valve 565 also offers versatile
modular options for enhanced functionality,
as it can be easily equipped with electrical
position indication for manual operation, or
fitted with electric and pneumatic actuators
for automation purposes.
The 565 is also not prone to corrosion, owing
to the body and PVDF disc.
These materials ensure long-lasting
| ENGINEERING NEWS & MINING WEEKLY | August 4 –10, 2023
THE BUTTERFLY VALVE 565
The valve provides exceptional performance
while reducing installation, maintenance and
replacement costs
performance and make the valve suitable for
various applications, including those involving
harmful substances.
Additionally, the butterfly valve 565 requires
significantly lower torque to open and close,
compared with metal butterfly valves. Further,
the valve offers high operating pressure
ratings, making it suitable for demanding
industrial environments.
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RA
e
WE
MAKE
VALVE
SUPPLY
Bilfinger Intervalve Africa (Pty) Ltd. is one of the enterprises
in Bilfinger Power Africa (Pty) Ltd., the South African
subsidiary of German based Bilfinger SE. For years, we have
been adding value to the power, mining, paper pulping
and broader industry through comprehensive valve supply,
valve maintenance and heat treatment solutions.
www.intervalve.bilfinger.com
WORK
VALVES
Compressor recycle
valve enhances
efficiency, reliability
SIMONE LIEDTKE | CREAMER MEDIA SOCIAL MEDIA EDITOR & SENIOR WRITER
I
ncreasingly demanding dynamic performance requirements and targets to
reduce plant emissions are placing compressor equipment at risk of damage, but
proven anti-surge and compressor recycle valve technology is set to help the oil
and gas industry avoid compressor damage and, consequently, reduce downtime.
Compressor recycle valves, also called antisurge valves, play a vital role in safeguarding
the compressor against expensive damage
by redirecting the outlet gas back to its inlet.
The valve comprises two essential components: the valve assembly, which serves as the
critical mechanical part, and the advanced
pneumatic actuator, which features a high-performing and fast-acting controller.
To ensure improved performance and effectively tackle significant concerns, such as
vibration, noise and controllability, the anti-
surge control valve relies on a fully integrated
and proven technology. Employing this comprehensive approach enables the valve to
achieve peak performance and successfully
address critical issues in applicable systems,
specialist flow control solutions provider IMI
Critical Engineering says.
IMI CCI application engineering manager
Ronald Simon says the performance of an
anti-surge valve is crucial for compressor and
plant performance.
“To maintain an optimal balance between
efficient production and the proper functioning of a compressor, seamless coordination
among all components of a compressor recycle valve is essential.”
The faster and more precise the anti-surge
control valve's response to an upset condition
on the compressor map, the lower the process
interruption and the likelihood of repetitive
surge events, he adds.
This, in turn, reduces the risk of compressor
damage, resulting in enhanced performance,
reliability and production output for the plant.
However, surge events can interrupt compression in upstream and midstream oil and
gas, liquefied natural gas, and petrochemicals facilities.
If left unaddressed, this disruption may
lead to compressor trips or system failures
that require, often times, expensive remedial
work to resolve the damage, notes IMI Critical
Engineering global engineering director Mike
Semens-Flanagan.
To reduce recycling modes on the compressor and ensure the best protection, he says, it
is crucial to prioritise dynamic performance
and controllability.
“By achieving this, the system can effectively and efficiently reduce the occurrence
of recycling modes, thus maximising operational efficiency,” Simon says.
Meanwhile, Semens-Flanagan highlights
E X P E R T S I N T H E S U P P LY O F V A LV E S
F O R S T E A M , WAT E R , O I L A N D G A S
Variant Air Vacuum Break Valves
Stewarts and Lloyds is an agent of Variant Air Vacuum Break Valves. Together with the manufacturer, we provide quality service and
technical support. The full Variant Air Vacuum product range is 100% locally designed. The range can be used in raw-water bulk
systems, clean potable water and sewage-treatment applications.
VALVE TYPES: GATE | GLOBE | CHECK | BALL | DIAPHRAGM | PINCH | CONTROL | SAFETY | ACTUATED | AIR VACUUM/VENT
TA K E A D VA N TA G E O F O U R N AT I O N W I D E N E T W O R K
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36
| ENGINEERING NEWS & MINING WEEKLY | August 4 –10, 2023
AN
VALVES
that, in demanding applications, the valve
manages high dynamic forces, so failure
risks must be reduced for the best possible
performance.
Similarly, valve issues, including vibration,
noise and erosion caused by the wide differential pressures that occur during these operations, can impact on nearby equipment if not
addressed, he adds.
To address these concerns, IMI Critical
Engineering has developed an integrated
anti-surge and compressor recycle valve that
combines multiple, co-acting technologies
to balance efficient production and equipment health.
The valve comprises IMI CCI’s patented
DRAG Control Valve technology with supply
chain visibility actuators and smart, high-performance FasTrak or QuickTrak controllers
and positioners.
The solution’s individual parts, developed
in-house across the business divisions of the
IMI group, continually interact to reduce the
chance of cycle trips to improve performance
at startup and during operation.
The multi-stage, multi-path DRAG design
directs fluid through a highly-resistant tortuous path to incrementally reduce the differential pressure. This limits the velocity head at
the trim, which eliminates the risk of vibration, noise and erosion.
The QuickTrak controller features the latest pneumatic digital valve control technology, Simon says, adding that the QuickTrak
system is designed to meet the needs of the
most demanding applications.
“Perfectly integrated with the SC/V actuator, it provides fast and highly accurate valve
control,” he says.
Another precise digital-pneumatic valve
controller is the company’s FasTrak, which
reacts to changing conditions within the valve,
thereby preventing issues and supporting predictive maintenance.
“It also comes with a dedicated diagnostic system for anti-surge applications and a
packing degradation monitoring system,”
Simon highlights.
The valve, designed for operations in the oil
and gas sector, incorporates a high number of
stages for small openings at low flow conditions. This design allows for greater velocity
and flow control, which Simon says results
in fewer cycles required to achieve compression targets and, ultimately, reduces the carbon footprint.
The integrated solution offers numerous
benefits, including uninterrupted processes
during surge events, and subsequently mitigating the risk of repeatable surge events and
compressor trips.
• From page 32
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actively monitor and regulate flow rates, detect
faults in real time and predict maintenance
requirements, consequently improving performance while reducing downtime.
Additionally, with remote operations becoming prevalent, efficient remote valve control is
essential, he says, noting that remote actuators and control panels allow for centralised
management, reducing costs, enhancing safety
and eliminating the need for on-site personnel.
Advanced wearables, such as augmented
reality glasses or haptic gloves, provide valves
operators with real-time updates, troubleshooting assistance and remote support.
This improves operational efficiency, operator safety and training.
Further, in line with global sustainability
efforts, valves are also being developed using
biodegradable sealants, ecofriendly materials
and energy efficient designs. These solutions
contribute to reduced resource consumption
and improved environmental performance.
“The future of the valve market for mines is
filled with possibilities as technology continues to advance. As mining professionals, let's
stay informed, embrace these innovations, and
work together to shape a brighter and more sustainable future for mining operations worldwide,” Bowden concludes.
HIGH
PERFORMANCE
FLOW
CONTROL
SOLUTIONS
Bray offers a complete
portfolio of flow control
solutions to handle your
most challenging applications.
Learn more at BRAY.COM
Bray Controls Africa (Pty) Ltd
Unit 11, ABC Business Park
Mastiff Rd, Linbro Business Park
Sandton 2090, South Africa
Telephone: +27 10 007 3222
AN
August 4 –10, 2023 | ENGINEERING NEWS & MINING WEEKLY
|
37
CONSTRUCTION
MATERIALS & EQUIPMENT
Compiled by NADINE RAMDASS
Grader range meets various
application requirements
NADINE RAMDASS | CREAMER MEDIA WRITER
EXTENSIVE RANGE
John Deere offers tandem drive and
Hydrostatic front wheel drive graders
H
eavy equipment manufacturer John Deere’s motor grader range encompasses
a variety of models to suit customer requirements. The graders are designed
to offer improved productivit y and the company “constantly” integ rates
improvements that make a significant difference for customers, says John Deere
Africa construction and forestry sales manager Griffiths Makgate.
The range includes tandem drive with the
620, 670, 770 and 870 models, as well as
Hydrostatic front wheel drive consisting of
the 622, 672, 772 and 872 models.
The graders vary from fully mechanical – in
the G versions – to high-end models with smart
steer technology – the GP versions – enabling
customers to choose from a range of options.
The G models offer conventional lever-operated controls. The GP models offer either
dual-joystick controls or “state-of-the-art”
fingertip armrest controls, depending on
customer preference. Customers can also
use the field kit to easily swap between the
two dual-joystick controls on the GP models,
adds Makgate.
The dual-joystick option provides intuitive
control with minimal hand motion during
direction changes and gear shifts. This assists
in reducing operator fatigue by eliminating the
twisting wrist motion or uncomfortable combinations common to other joystick systems.
The various features associated with
every model ensure that customers can
choose a grader that is specif ic to the
38
application required.
The high-end GP Series offers customers
more precision, with the Hydrostatic front
wheel drive grader offering better functionality and more traction. For applications such
as road maintenance, the smaller 620 graders
are ideal, whereas the 670 delivers the power
required to build a road, Makgate explains.
For customers working with hard surfaces
that require significant power, the 770 and 870
graders are ideal, with the option of a 12 ft or
14 ft blade base on the application.
Makgate says productivity is prioritised
in all aspects of John Deere’s machines. One
such aspect that improves productivity is the
transmissions swift change feature. Operators
can directly shift to reverse without having to
shift to neutral first.
“You can get more done in less time because
now you have enough power to operate the
machine as well,” he adds.
Further, the automated cross-slope feature,
available on the GP graders, simplifies holding a consistent slope by reducing operation
to one lever. The dual-joystick controls and the
| ENGINEERING NEWS & MINING WEEKLY | August 4 –10, 2023
finger-tip armrest controls are equipped with
the cross-slope feature and are enabled to run
a grade-control system. “Instead of the operator trying to find the angle, the machine can
find the angle,” enthuses Makgate.
The graders also have an automatic shutdown feature. The operator can set the idle
time and the engine will turn off after such a
time, resulting in fuel savings and less wear
on engine, transmission and hydraulic components. The graders’ Eco mode reduces engine
revolutions per minute through gears one to
five, thereby optimising fuel use and decreasing operating costs.
Extensive Support
Prospective customers can test and view the
graders, as well as other John Deere products,
at John Deere distributors to ensure they find
the grader best suited to their requirements.
“These machines are there to actually show
customers what the John Deere machine is
about. If you are looking at productivity, you
can get into our machines and test it,” adds
Makgate.
The distributors can provide customers with
in-depth knowledge of John Deere’s equipment, in addition to showing customers the
specifications of the machines and how these
improve the experience of using the graders.
• To page 40
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CONSTRUCTION MATERIALS & EQUIPMENT
Concrete offers
sustainability, resilience
for road construction
S
ustainable and resilient concrete roads are critical in supporting sustainable infrastructure development. Building durable roads should be balanced
with minimising the carbon emissions throughout the infrastructure’s entire
life cycle, which can be achieved using concrete, says industry body Cement and
Concrete SA (CCSA) CEO Bryan Perrie.
Concrete roads’ resilience is a particularly
important factor to consider for decisionmakers in infrastructural development,
Perrie says.
He emphasises the difference between
sustainability and resilience along with the
importance of ensuring both are factored in,
considering how roads and the composite
materials are produced.
He explains that sustainability deals with
known events that can be quantified. However,
resilience is the ability to anticipate, prepare for, and adapt to changing conditions.
Further, resilience encompasses the ability
of infrastructure to withstand, respond to,
and recover rapidly after a disruptive event.
“In a changing global climate where extreme
weather events are now becoming increasingly frequent, with far higher intensity than
in the past, it is impossible to have a sustainable infrastructure without resilience,” he says.
Perrie elaborates that resilient systems
can limit the impact of relatively unexpected
adverse effects such as storms, floods and
droughts, such as those experienced recently
in KwaZulu-Natal and the Eastern Cape.
Reducing Emissions
The industry is also navigating how to build
more durable concrete structures while minimising the carbon emissions generated in producing and supplying cement and concrete.
Perrie explains that the South African
• From page 38
“This is an opportunity for customers to
test what we offer and . . . to say they made a
good investment.”
Makgate notes that, while price is an important consideration, it is crucial to take into
account the durability, performance and
uptime of the equipment.
He advises that, when choosing a grader,
customers should consider their requirements over a long period as opposed to the
40
Technology Concrete Sustainability Hub,
which has stated that US state agencies that
have sustained a consistent competitive roads
market – using both asphalt and concrete
pavements over multiple years – pay lower
prices for all paving materials.
“The states with the highest level of competition have unit prices that are 29% lower
for concrete and 8% lower for asphalt,” he
explains.
Beyond Concrete
upfront cost of it.
It is also important to choose a machine that
will retain its value over time and to consider
the support and service options available.
John Deere's extensive dealer network provides customers with access to parts and service, ensuring that they can receive prompt
assistance in the event of any issues.
“We are there to support the product that we
put out there,” Makgate concludes.
While the environmental benefits of concrete
roads are considerable, there are numerous
easy and minor alterations that can be implemented to improve the environmental impact
of concrete, says Perrie.
He explains that these include optimising
pavement designs to ensure minimum quantities of materials, reducing concrete’s carbon
footprint by using extended cements appropriately, and formulating concrete mix designs
with optimised aggregate grading and optimised cement content.
Further, concrete pavements’ inherent stiffness, strength, brightness and durability can
significantly reduce carbon emissions during
the roads’ usage phase. In particular, using
concrete for roads can result in fuel savings, particularly for heavy vehicles which
can reduce carbon emissions. Additionally,
increased albedo, or reflectivity, resulting
from concrete roads, can minimise urban
heat islands and can reduce required lighting at night, Perrie comments.
“One of concrete’s unique properties is its
ability to act as a carbon dioxide (CO2) ‘sink’
for the planet. As concrete ages, it absorbs CO2
helping to offset the amount produced making cement. Covering concrete pavements with
asphalt either at construction or during the
use phase prevents this happening.”
Further, he notes that diamond grinding
to provide an acceptable riding quality – at
construction or to improve it during the usage
phase – would increase CO2 absorption. This
makes the process a “more sustainable practice”, along with the use of concrete overlays
for upgrading existing asphalt roads.
Perrie says it should also be remembered
that concrete is 100% recyclable and can be
reused on the same site for base material, as
aggregate for new concrete and as filler.
He emphasises that concrete provides the
most sustainable and resilient choice for pavement systems. Concrete’s long life span provides significant economic value over the long
term for taxpayers and end-users, with many
environmental benefits.
“Choosing concrete roads for South African
infrastructure is ultimately the most responsible choice for both sustainability and resilience,” he concludes.
COUPON ON PAGE 20 E651641
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cement industry has already committed to
net-zero carbon emissions by 2050.
He notes that, while this commitment
focuses on cement’s value chain, it is also
important to focus on the concrete value chain.
In particular, the whole life cycle – from material production through pavement design,
construction, use stage, maintenance and
preservation, and end-of-life reuse or recycling
– needs to be evaluated to determine the full
environmental impact of road infrastructure.
He explains that the full life cycle cost analysis and life cycle assessment can be used to
determine the impact of the whole life cycle.
“While some life cycle assessment is done
in South Africa, it often does not include the
full life cycle assessment, including roaduser delay costs during maintenance,” he
elaborates.
Perrie acknowledges that, while it is critically important to address climate change and
carbon reduction, every road agency, province
and municipality is facing budget constraints
and often find themselves forced to make decisions based purely on economic factors.
As a result, when life cycle cost analyses
are carried out in areas where there is minimal data on concrete roads, the results are
frequently heavily biased.
He notes, however, that industry competition can be significantly beneficial in improving the “economic side of sustainability”.
He refers to Massachusetts Institute of
| ENGINEERING NEWS & MINING WEEKLY | August 4 –10, 2023
AN
COMPANYPROFILE
BELite Technologies
BELite Technologies was established
in 2009 by its holding company Battery
E l e c tr i c to a s s i s t w i th th e n e e d fo r
more efficient lighting solutions for the
underground mining industry. The company
has since grown and expanded into various
industries.
BELite Technologies is an original local
designer, manufacturer and supplier of
LED lighting. It specialises in durable,
customisable LED lights for the agricultural,
industrial, landscaping and mining industry,
as well as smart control lighting systems. It
offers full solution LED systems with onsite
consultations to provide the best possible
solution for any application.
BELite Technologies is a forward focused
company that is constantly pushing the
boundaries to bring new technologies and
better systems efficiencies to the lighting
industr y. It has invested in designing
different varieties of mobile lighting plants
with alternative power sources to assist with
lighting in areas where there is no stable
power source.
It can assist the construction industry with
mobile lighting plants, industrial lights as
well as indicative warning lights to assist
with safety on construction sites.
The company’s in-house engineering
capabilities allows for LED light manufacturing in various voltages and Lux
output requirements. It offers repairs and
retrofitting of existing light fittings, allowing
for cost-effective solutions.
Local Manufacturing
BELite Technologies believes in uplifting
and empowering the community leading
to locally manufactured products, creating
jobs and contributing to the economic
sustainability of the country.
• Specialised lighting
• Specialised lighting control systems
• Customised solutions
• Local manufacturing
• Lighting designs and surveys
Tel: +27 11 397 6074 • +27 66 483 3177 • Email: sales@belite.co.za
AN
www.belite.co.za
August 4 –10, 2023 | ENGINEERING NEWS & MINING WEEKLY
|
41
©CM 040823MF
Technical Capabilities and Services
COMPANYPROFILE
The superiority of John Deere’s 770G/GP and 772G/GP motor graders
When you think of high-quality construction
equipment, one name that frequently tops
the list is John Deere, a world-renowned
brand that consistently delivers industryleading innovation. Two models that stand
out in their motor grader lineup are the
770G/GP and 772G/GP. These machines
represent the pinnacle of per formance,
efficiency and operator convenience, effectively
high-lighting John Deere’s commitment to
excellence.
The 770G/GP and 772G/GP motor graders
are an exceptional example of John Deere’s
world-class engineering. Both models are
powered by a John Deere PowerTech™
9 ℓ e n g i n e, p r ov i d i n g a p owe r f u l, ye t
environmentally friendly operation. With the
770G/GP capable of up to 187 kW and the
772G/GP model pushing an impressive
201 kW, these machines offer considerable
muscle, ensuring peak performance even
in challenging conditions.
One of the defining features of the 770G/GP
and 772G/GP models is their fuel efficiency.
Thanks to the eco mode, these graders are
considerably fuel efficient. The eco mode
automatically adjusts the engine speed to
the most efficient level under the current load,
minimising fuel consumption while maintaining
optimal performance.
42
The John Deere 770G/GP and 772G/GP also
stand out in terms of operator comfort and
convenience. Their spacious, ergonomically
designed cabs offer excellent visibility, with
controls intuitively arranged for ease of use.
This design enhances the operator’s productivity
and reduces fatigue during long shifts. The ‘GP’
range refers to John Deere’s Grade Pro (GP)
feature, a technology that makes the grader more
precise and easier to control, thus improving the
operator’s productivity.
The advanced technology incorporated into
| ENGINEERING NEWS & MINING WEEKLY | August 4 –10, 2023
these machines makes them even more userfriendly. John Deere’s JDLink™ technology
provides real-time data about the machine’s
location, productivity and idle time. This feature
helps the operators and managers optimise their
fleet management and increase their productivity.
Moreover, these models offer robust durability.
The mainframes are built with high-strength,
low-alloy steel for maximum life and durability.
The sealed, lubricated, adjustable wear inserts
at articulation and blade pivot joints reduce
maintenance needs, keeping the machines up
and running longer.
The John Deere 770G/GP and 772G/GP motor
graders embody the perfect blend of power,
efficiency and advanced technology. These
machines deliver high performance in a wide
range of applications, from road building and
road maintenance to site development. Thanks
to their user-friendly features, operators can work
with more precision and less fatigue, leading to
higher productivity levels.
For more information, visit
www.JohnDeere.com
Email: africa@johndeere.com
AN
COMPANY PROFILE
OLI Electrical Vibrators
It is our drive for innovation and industry service that forces us to evaluate our
product offerings to all sectors on a continual basis.
We have all the internal and external
vibrators, converters and accessories
for reliable and efficient concrete compaction. We listen to our customers. If
you need a product to simplify your life,
we can assist.
For thin layers of concrete, such as floors
or slabs, a short, light and manoeuvrable vibrator is needed. Our internal high
frequency poker vibrator with pistol grip is
well suited to this application.
We recognise that electricity constraints
are hampering production, so we have
brought back our pneumatic internal poker
vibrator range, which requires no electricity and therefore has no work interruptions.
By supplying competitive, high-quality
AN
products for wide-ranging applications,
OLI combines performance and reliability. Smaller, lighter products that are higher
in performance and lower in energy consumption are the tangible results of OLI’s
commitment to offering the best deal in
the market.
The centre of OLI’s business strategy is
rapid stock delivery, anytime, anywhere
in the world.
With its skilled competence and valuable
knowledge of the industry, OLI can expertly
tailor a solution suited to individual customer’s requests.
OLI is a credible expert when it comes
to assistance in finding the most suitable
solution.
When you need it, where you need it – the
mission statement that gives OLI the edge
over its competitors.
August 4 –10, 2023 | ENGINEERING NEWS & MINING WEEKLY
|
43
WATER PURIFICATION
& TREATMENT
Compiled by LYNNE DAVIES
Nature-inspired oil-water separator
employed underground
SCO 1000 SEPERATOR
SurfCleaner provided two SCO 1000 hybrid
skimmer oil-water separators for use in an
underground wash bay at a large iron-ore mine
W
ater treatment specialist SurfCleaner has supplied its specialist water
treatment technology to a large underground iron-ore mine, to treat water
used in an underground wash bay.
SurfCleaner designs, develops and
manufactures skimmer separator hybrids
for efficient removal, separation and
recovery of contaminants floating on a
water surface, such as oil, diesel, petrol
and floating sludge.
SurfCleaner Nordic sales manager
Niklas Gedal says two of the company’s
SCO 1000 devices have now been
deployed at the site – within the mine’s
water treatment facility, helping to
drive greater operational efficiency
and environmental standards, while
also reducing the maintenance and
management costs.
The SCO 1000 is a hybrid skimmer
separator designed for oil spills and oil
separation in industrial environments.
It is a simple, yet effective, solution for
removing a wide variety of pollution, from
sheen to heavy oil, and from sludge to
solids.
“Electric machines are used extensively
in mining, and they require consistent
44
cleaning, owing to a build-up of grease
and hydraulic oil,” he says.
The iron-ore miner performs this task in
a washing hall deep underground, where
used water is transported through pipes
to an American Petroleum Institute- (API-)
certified oil-water separator in the mine's
water treatment plant.
Gedal explains that with one of
SurfCleaner’s SCO 1000 devices located
in the API oil-water separator to help
manage the first stage of the water
treatment process, it will collect, separate
and empty the oil and grease into an
intermediate bulk container, 24/7.
Another SCO 1000 device is used in a
second API oil-water separator further
along the process, collecting thin layers of
the remaining oil.
The separated oil will be pumped into a
container and collected by an oil recycling
company, while the purified water can be
reused as process or wash water, thereby
enabling the reuse of both oil and water.
| ENGINEERING NEWS & MINING WEEKLY | August 4 –10, 2023
SurfCleaner’s technology has
essentially replaced the former oil
filtration system and eliminated an entire
stage of the water treatment process
between the API oil-water separators.
This is in comparison to the
original oil filter solution, which was
expensive, inconvenient and difficult
to maintain.
The first SCO 1000 device will be
separating about 1 m 3 of oil a week, while
the second device is deployed when
required, removing any remaining oil
from the API oil-water separator within a
single day.
As such, the mine operator is able to
avoid having to undertake a 800 km
round trip with vacuum trucks to
transport oil-damaged water to thirdparty treatment facilities.
“We are delighted to be actively
demonstrating the benefits of
SurfCleaner’s devices to the global mining
sector,” says Gedal.
“This has been a fascinating project
which has led to modifications to our
own technology, specifically geared
• To page 49
AN
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WATER PURIFICATION & TREATMENT
Plant commissioned to
reduce use of freshwater
LYNNE DAVIES | CREAMER MEDIA REPORTER
A
nthracite producer Zululand Anthracite Colliery (ZAC) has commissioned a
new 25-ton-an-hour filter press, worth R14.5-million, at its Emakhalathini
coal washing plant, in KwaZulu-Natal, following a coal slurr y spill at the
end of 2021.
The filter press plant is designed to remove
slurry from the water used during the coal
washing process. Construction of the plant
FILTER PRESS SYSTEM
The 25-ton-an-hour filter press system will aid in
the treatment of slurry-laden water
started in 2022.
“The slurry from the wash plant is then
pumped into the filtration chamber of the filter
press, where the water is separated from the
ultrafine material.
“The filter press has an automated function
to release the solid load at the end of the
process,” explains ZAC engineering senior
foreman Howard Atkinson.
Atkinson adds that, once the water has been
separated from the ultrafine material, it can be
reused in the beneficiation process ensuring
a more efficient use of water on site.
He adds that ZAC has a dedicated environ­
mental team to conduct the constant moni­tor­
ing of the environment as a means of ensuring
AUTOMATED CLEARING
The filter press machine has an automated
function to release its accumulated solid load at
the end of the process
that there is no overuse of freshwater for
operations, and to help protect local resources
from contamination. In this regard, Atkinson
also notes that ZAC uses environmentfriendly dust-suppression chemicals to assist
in reducing water used for dust suppression.
“The principal aim of ZAC’s sustainable
water management policy is to minimise
and reduce freshwater consumption in all
our operations.
“The conservation, protection and manage­
ment of water is a top priority for ZAC,” states
ZAC assistant GM Wiets Beukes.
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46
| ENGINEERING NEWS & MINING WEEKLY | August 4 –10, 2023
RA
WATER PURIFICATION & TREATMENT
Water innovation
challenge launched
I
n line with its vision for a water-secure world by 2030, diversified miner BHP,
in alliance with public-private partnership company Fundación Chile's openinnovation initiative Expande, launched the Global Water Challenge in an
effort to identif y and de-risk water treatment solutions.
Expande applies a collaborative model to
improve the industry’s productivity by foster­
ing the development of a knowledge-intensive
and world-class innovation ecosystem.
The Global Water Challenge sought to find
and de-risk disruptive water treatment solu­
tions to sustainably enhance water recovery
within the mining industry.
The open call was intended for companies,
start­ups, institutes, research centers or other
entities that have, or are developing, dis­rup­
tive water treatment solutions with a focus
on mul­t iple challenges that are facing BHP
assets.
These challenges include reducing brine
discharge from the reverse osmosis plant,
treatment of acidic pit lake waters, treat­
ment of hypersaline groundwater, and
RA
other water issues.
BHP sustainability innovation head Ingrid
Oyarzún notes that water is an integral and
vital resource for BHP’s production and
operations, with a responsibility to effectively
manage the group’s water interactions and
avoid or reduce its potential or actual adverse
impacts on water resources.
She states that facing this challenge and
making BHP’s vision for a water-secure world
by 2030 a reality, requires collaboration with
others and with companies that are addressing
global challenges through innovation and
disruptive technologies.
Fundación Chile mining innovation director
Philip Wood adds that Fundación Chile is
committed to supporting Chile with its water
transition, through collaborative efforts and
SEEKING DISRUPTIVE WATER SOLUTIONS
The Global Water Challenge was an open
innovation call that sought out water treatment
solutions to sustainably enhance water recovery
within the mining industry
a multisectorial dialogue.
“The Global Water Challenge is a clear
example of this, and we are very pleased
to have collaborated once again with BHP
to identify and address the sustainability
challenges that it is facing in its assets globally,
as well as help achieve its climate change
targets and goals,” he says.
The Global Water Challenge finalists had
the oppor­tunity to present their solutions at
a demonstration day, where the winners were
able to work together on the next steps.
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August 4 –10, 2023 | ENGINEERING NEWS & MINING WEEKLY
|
47
WATER PURIFICATION & TREATMENT
Increased emphasis
on water stewardship
in mining sector
LYNNE DAVIES | CREAMER MEDIA REPORTER
M
ining companies need to star t invest igat ing and
implement ing a measured s ystem to reduce their
dependence on external water sources to maintain
and ensure the sustainability of their operations going into
the future, says engineering solutions provider WSP principal
associate Priyal Dama-Fakir.
She adds that there is
already pressure on mining
companies to reduce their
water consumption, and it can
only be expected to increase
over time.
“In Africa especially, we are
seeing a decline in fresh water
to meet basic human and
ecological needs,” explains
Dama-Fakir.
She says that with water
being a necessity in the
daily life of humans, it is
a key component within
the reporting standards
pertaining to the environment,
social impact and governance
(ESG), and will have a large
impact on the environment
surrounding communities.
Dama-Fakir explains
that the environmental
implications of inadequate
mine water management on
the surrounding ecosystems
and communities are
significant, while poor water
management can also have
a direct impact on available
clean water within catchment
areas, by reducing the
volume of water available and
negatively impact downstream
users. Reduced volumetric
flow and contamination of
streams not only impacts
on the water body but
extends into the surrounding
ecosystem as well.
Reducing Fresh Water Use
She notes that the first step
to effectively manage water
resources is to know how
much water a mine site is
Tracking trends and understanding
how water is being lost from a system,
where water is being used and what
volumes, can aid in the identification of
areas of improvement
48
| ENGINEERING NEWS & MINING WEEKLY | August 4 –10, 2023
consuming, the manner in
which it is consumed and
how water is being lost or
released during operations.
This can be done by
having a well-thought-out
monitoring network and
central repository for the
data coupled with a site-wide
water and salt balance to have
an understanding of water
consumption on-site.
“Tracking trends and
understanding how water
is being lost from a system,
where water is being used
and at what volumes, can
aid in the identification of
areas of improvement,” says
Dama-Fakir.
She comments that a “fit for
purpose” study could aid in
the search for opportunities
in the reduction of water
intake, while also serving to
identify areas of improvement
regarding the reuse and
recycling of water on-site.
“In this study, we identify
all water resources, both in
terms of quality and quantity,
such as a groundwater
ingress in mine workings or
rainfall and run-off captured
in contaminated areas
before proceeding to list all
water uses, while looking
at the quality and possible
constraints,” explains
Dama-Fakir.
She continues, explaining
that WSP will then match
the water uses available with
seasonal variations taken
into consideration, to provide
clients with recommendations
on where and how to reuse
water effectively and
efficiently on-site.
“This process has proven
PRIYAL DAMA-FAKIR
The first step to effectively manage
water resources is quantify where
and how it is being used or lost
to reduce freshwater
consumption, and in some
cases, has reduced the
required volume of water
for treatment and treatment
costs, introducing the reuse
of primary treated water
with simple filtration,” notes
Dama-Fakir.
Economic Implications for
Mines
Meanwhile, she points out that
investors have become more
environmentally conscious
and are becoming more
informed and concerned on
the environmental impacts of
using fresh water in mining.
“Most mining companies
need to demonstrate respon­
sible water management to
access the funds required
to develop new projects and
expand existing operations,”
says Dama-Fakir.
She explains that mining
companies have started
investing more in the training
of staff for ESG reporting and
the assigning of competent
professionals to be responsible
for it; while in some
companies, key performance
AN
WATER PURIFICATION & TREATMENT
indicators are no longer
only focused on production
but meeting environmental
compliance and achieving
water stewardship targets.
Dama-Fakir suggests
that collaboration can aid
companies in cost reduction
and that working within an
ecosystem presents solutions
that can meet the needs of
companies, surrounding com­
munities and downstream
users.
“In South Africa, there
are catchment forums
that meet regularly to
discuss matters concerning
water resources within
the catchment area,” she
highlights. Dama-Fakir adds
that mines use these forums
to discuss new developments,
present findings of their
environmental monitoring
and create an awareness
around water management
practices.
She notes that new
projects and the expansion
of projects require companies
to have water use licenses
and environmental impact
assessments for these projects
to proceed, and that the
regulator requires consultations with those interested
and affected by these projects,
such as surrounding businesses and other mines in the
catchment area.
The increased emphasis
on water stewardship in the
mining sector will not only
enable mines to manage water
more effectively but will also
assist in the improved water
management for societal
needs.
• From page 44
delivering immediate cost
saving, operational and
environmental benefits,” he
concludes.
The SCO 1000 is able to be
remotely operated through
smartphone or tablet,
performs automatic removal
and separation of oil with up
to 100% separation, recover
oil with a water content of less
than 5%, separate up to
1 000 ℓ of pure oil an hour
and be able to operate
continuously with low service
requirements.
towards use in underground
mining environments, which
experience high volumes of
abrasive media like sand and
gravel,” he adds.
Gedal elaborates that this
will include the development
of protective screens which
collect and reduce inflow of
unwanted debris.
“We are currently delivering
several more demonstration
projects and, having identified
major growth potential,
we hope to support many
more mining operators by
30 seconds to
detect a leak
on a 20 mile pipeline
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• From single software applications to full packages
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Science behind the SurfCleaner
• The principle behind SurfCleaner’s technology is engineer-minded
medical doctor Dr Stig Lundbäck’s discovery of the human heart’s
dynamic adaptive piston pump (DAPP) functionality.
• He built on the DAPP finding to invent and develop three innovative
companies: SurfCleaner, Cascade Drives and CorPower Ocean.
More information
about PipePatrol:
krohne.com/pipepatrol
• Lundbäck applied other universal laws of physics from nature and the
universe, such as gravity, equilibrium, variation in rotation velocity in the
centre and the periphery, different density, and others.
• This is what makes the SurfCleaner a natural machine, working in
concert with the laws of nature, instead of trying to combat them.
• The machine works by enhancing gravity through setting the liquid
in vertical and horizontal motion inside the body of the SurfCleaner,
creating a circular inflow at the top, and an outlet at the bottom.
Following this, physics takes over, separating water from oil.
• The SurfCleaner does not require a pump, powerpack, hydraulics or
pneumatics, making the operation of the SurfCleaner efficient and
cost-effective; by putting the forces of nature to work.
AN
products
solutions
services
August 4 –10, 2023 | ENGINEERING NEWS & MINING WEEKLY
|
49
COMMERCIAL &
INDUSTRIAL PROPERTY
Compiled by BRIDGET LEPERE
Market hindered by interest rates,
economic stagnation
BRIDGET LEPERE | CREAMER MEDIA REPORTER
WATCH THIS SPACE
Numerous problems such as interest rate hikes, slow economic
growth and rises in municipal rates and services are hampering
sales activity within the commercial property space
T
he commercial property market experienced a 5.6% decline in sales activity
in the first quarter of 2023, compared with the same quarter in 2022, owing
to numerous factors, including rising interest rates and the oversupply of
office space, says property valuations custodian South African Institute of Valuers
(SAIV) president Dianne de Wet.
“I don’t think we’ve seen the full impact of
the interest rate increases as this takes time
to filter through and I believe that we may see
another interest rate increase soon, even if
it’s just a 25-basis point increase. There’s also
the risk of the decline in vacancy rates being
arrested,” notes De Wet.
She reports that the Covid-19 pandemic
caused “a lot of harm” to the commercial
space, but less so to industrial properties,
which remained quite strong, outperforming the office and retail sectors. The expected
return to the office has not happened, however,
with remote and hybrid working arrangements
becoming the “new normal”.
“Employers have realised that you don’t
need a fixed desk for a particular employee,
especially with the hybrid model, so now they
hot desk. They can have three people using
the same desk on different days of the week
at different times and reduce their overhead
costs. In this way property owners suffer,” De
Wet highlights.
“Property owners are receiving lower rentals because tenants are able to negotiate with
landlords due to these vacancies. This results
in reduced net profits and a consequential
reduction in asset values for commercial and
industrial property owners.”
She says she is not sure whether conditions will ever return to pre-Covid levels and
if they do, it is unlikely to happen any time
soon, with the national vacancy rate sitting
at around 14.9% at the beginning of the year.
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The KwaZulu-Natal Branch Workshop, held
on July 20, was aimed at updating industry
experts on the latest international valuation
standards, as well as environmental, social
and governance and other pertinent issues.
“Our statutory body, the South African
Council for Property Valuers Profession
(SACPVP), and SAIV have adopted international valuation standards, meaning we have
to conform to those standards as valuers, and
if found wanting, we could be disciplined if
a complaint is lodged with either SACPVP or
SAIV. We also have to uphold professional
conduct because we feel strongly about this
as an institute,” she notes.
De Wet explains that the institute is also
considering implementing regular testing of
its members to keep high ethical standards
front of mind. De Wet says ethics are not only
a cornerstone of the institute, but that good
ethics are what sets its members apart from
• To page 53
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50
| ENGINEERING NEWS & MINING WEEKLY | August 4 –10, 2023
AN
COMMERCIAL & INDUSTRIAL PROPERTY
Firm invests in
‘greener’ solutions for
sustainable future
BRIDGET LEPERE | CREAMER MEDIA REPORTER
J
SE-registered real estate investment trust Liberty Two Degrees (L2D) is beefing
up its elect r icit y generat ion supply to meet its env ironmental, social and
governance (ESG) targets.
L2D development executive Melinda Isaacs
says the company – which specialises in rental
property in the retail, hotel and office space,
with a portfolio valued at over R10-billion – is
focusing on sustainability projects that have
a good return on investment and will reduce
operational expenditure.
The first 1 MW solar photovoltaic (PV) pro­
ject was installed at the Liberty Midlands
Mall in 2018, 1 MW was installed at Eastgate
Shopping Centre in 2020 and a further 1 MW
was installed at Liberty Promenade last year.
An additional R65-million has been invested in
another 4 MW of solar PV for Midlands Mall in
2022/2023, bringing the total installed capacity
to 7 MW, with commissioning of this project
expected at the end of July 2023.
The company is also expanding Gauteng’s
Eastgate Shopping Centre’s power generation
by 5 MW alternating current through its
solar PV project in addition to the initial
1 MW completed at this property in 2020. This
installation, together with a further 1 MW
installation at Sandton City Shopping Centre,
will bring the total installed capacity in the
portfolio to 13 MW in 2024.
Isaac elaborates: “We are rolling out projects
across the portfolio to focus on replacing
water-cooled systems with air-cooled systems.
Upgrading these older water-cooled systems
with greener options will help us meet our
sus­tainability targets, which will not only sig­
nificantly reduce our water consumption, but
also our electrical consumption.”
L2D is also exploring the implementation of
water-harvesting projects to further reduce its
reliance on municipal water.
Isaacs says the projects have been staggered
in terms of cash flow. She says the company
was ready to implement a net-zero waste
strategy by the end of 2022, noting that the
company is gathering datasets over 12 months
to submit it to the Green Building Council
South Africa, with the aim of receiving its netzero waste certification before the end of 2023.
Isaacs stresses that ESG plays a vital role
RA
in how L2D approaches new developments,
refurbishment projects and tenant fit-out
projects, adding that the company committed
to meaningfully contributing to society
through its developments.
Consequently, L2D has implemented sys­
tems to enable it to monitor its ESG targets and
contributions, as well as measure and allocate
how its tenants contribute to its port­folio,
adapting and outlining criteria documents
and leases in line with its ESG goals.
Resilience, Adaptability
Isaacs notes that the property space is an
ever-evolving industry, with revolving
opportunities, and that the failure of service
delivery by State-owned entities has forced
owners to adapt and rethink the possibi­lities
while creating new opportunities.
Had these circumstantial opportunities not
presented themselves, there would perhaps
not have been such a strong focus on spending
capital on solar PV projects or reaching
environ­mental goals as quickly.
“Growth, for me, lies in being resilient and
flexible to change. As responsible property
owners we realise that what we do now will
impact the legacy we leave behind for the
future generations.
“Our purpose is to con­t inue to create
experiential spaces to benefit generations
and this is at the heart of every­thing we do.
“This means we never stop striving to
improve and questioning: ‘Is there a better
way?’," she adds.
She reiterates that the ever-increasing costs
impact on affordability for tenants and the
net income of landlords, making lease nego­
tiations tough for both parties. This means
that landlords may need to change the way
they approach developments and how they
allocate capital.
The South African retail industr y is
undergoing significant transformation in
addi­tion to the changes following the onset
of Covid-19, namely the energy crisis, the
MELINDA ISAACS
The property space is an ever-evolving industry,
with revolving opportunities forcing owners to
adapt and create new opportunities
rise of technology and changes in consumer
behaviour, says Isaacs.
She explains that “these days shoppers
are less predictable, better informed, more
astute and deliberately demanding”, and that
e-commerce and mobile shopping continue
to grow.
“The omni-channel retail approach is creat­
ing a seamless shopping experience, with con­
sumers possibly preferring window shop­ping
online, but still preferring the personal inter­
action that brick-and-mortar retail offers. The
rise in the ‘green consumer’ has placed even
more importance on not only a sustainable
product but also a sustainable environment
in which to shop.”
The industry is not without risks, notes
Isaacs, citing civil unrest, exchange rate fluct­
ua­t ions and the construction mafia as the
“biggest risks” in development space.
She says that, from a legal perspective,
smaller retailers are not equipped to deal
with intimidation and threats, and that these
confrontations cause major delays and disr­
uptions at construction projects, leaving
retailers with no choice but to surrender to
the demands.
Isaacs concludes that property owners
have been compelled to think about security
hardening and being able to effectively
secure their premises and that creating a
safe environment for L2D’s shoppers is vital
to its business.
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51
COMMERCIAL & INDUSTRIAL PROPERTY
Valuer numbers need
boosting to avoid
possible crisis
BRIDGET LEPERE | CREAMER MEDIA REPORTER
S
outh Africa has fewer than 1 500 registered professionals in residential and
commercial property valuation, and fewer than 650 valuer candidates; this
demonstrates that property valuation is an untapped career path, says real
estate propert y custodian South Af rican Inst it ute of Valuers (SA IV) president
Dianne de Wet.
She refers to the property valuers
profession as “the best kept secret”,
stating that they are spread “very thin”
on the ground.
The gap between the demand for
valuers and the number of valuers is
so wide that the profession should be
declared a “scarce skill” in the country.
D e Wet add s t hat v a luers a re
required to perform various types of
valua­tions for various purposes for the
general public, various government
departments such as public works and
for various companies including those
listed on the JSE.
“Most of our valuers come to the
profession through other occupations,
PRESIDENTIAL PEDIGREE
and more than half of the valuers in
The South African Institute of Valuers’ current and previous
this country are older than 55, so when
presidents, namely Patrick O'Connell, Dianne de Wet and
they retire, we’ll be facing a crisis.”
Malusi Mthuli
She emphasises that funding for
internships and other opportunities
should be made available to increase the
Should the candidate pass the board exam,
valuers pool, adding that the institute is
the candidate is then registered in one of
targeting schools and attends open days at
the professional categories based on their
universities to encourage students to consider
academic qualification and experience. A
this career path, and to advise them about
national diploma and the required experience
opportunities in the field.
enables a candidate to write the board exam
Qualifying as a professional valuer is a
for professional associated valuers.
lengthy process, but the rewards far outweigh
the drawbacks, says De Wet.
Valuation Considerations
A four-year BSc degree in Property Studies
Numerous factors – such as location, whether
is required, followed by about two to three
the property complies with the zoning
years of working and gaining practical experi­
regulations and other legal aspects, such as
ence under a mentor or SAIV’s branch execu­
restrictions on title deeds –are considered
tive committees under their Mentorship
during the valuation process. Unused bulk,
Programme.
also referred to as developable land on a site,
Through online and face-to-face interactions
is also considered if there is demand in the
with mentors, graduates are guided through
market for such further development.
practical valuations and report writing to
“We look at vacancy rates, operating costs,
enable them to obtain sufficient experience to
risks to income flows and sustainability,” she
be admitted to write the South African Council
elaborates.
for the Property Valuers Profession (SACPVP)
De Wet notes, “for instance, because of load­
board exam.
shedding, solar power is becoming increas­
52
| ENGINEERING NEWS & MINING WEEKLY | August 4 –10, 2023
ingly important. Landlords need generators to
keep the lights on. Diesel is costing landlords
an absolute fortune. We are also finding
that tenants tend to prefer a green building
status, even if the base rentals are a bit higher,
because commercial properties with green
certification reduce costs”.
Valuers also consider future risks in terms
of the economy, as this has a medium to longterm impact on value.
An important consideration for commercial
property owners is energy performance
compliance in terms of the National Energy
Act, 34 of 2008, which requires the net
energy consumed in terms of kilowatt hours
per square metre to meet the various needs
associated with the use of the building, such
as heating, cooling, lighting, ventilation, water
heating, particularly for properties with a total
net floor area exceeding 2 000 m2.
T he reg ulations also apply to
govern­ment buildings exceeding a
total net floor area of 1 000 m2.
D e We t n o t e s t h a t t h e r e a r e
huge implications associated with
noncompliance with these regulations
with a fine of up to R5-million and/
or imprisonment for a period not
exceeding five years. She notes that
property owners have been given
a reprieve until December 7, 2025,
by which time they have to have
submitted their certifi­c ates to the
Minister of Mineral Resources and
Energy and, thereafter, display these
certificates on their properties.
“But there is lack of verification
capacity to deal with all those pro­
perties, so we recommend that pro­
perty owners start the process as soon
as possible because the fine for non­
compliance is substantial.”
De Wet also advises government to avoid
relying on pricing as a determining factor
when selecting service providers through
tender processes.
“Smaller municipalities rely on a tender
process and in my experience, the bids
are sometimes so low that no good market
research, data collection or accurate valuations
can be done at that price.”
Inconsistencies in tender processes often
result in poor-quality valuation rolls, says
De Wet.
“So, until those procurement policies
change, all that we can do is recommend
that they make membership of a voluntary
association, as well as registration with
SACPVP, a requirement for valuers to be
appointed in terms of their bid specifications,”
De Wet says, noting that in this way, the muni­
cipality can at least be sure that the valuer is
qualified.
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RA
COMMERCIAL & INDUSTRIAL PROPERTY
• From page 50
the larger valuation community.
She says the seminar updated members on
significant new developments in KwaZuluNatal, two in particular being the Cato Ridge
Inland Port Development and the Westown
Development, which have been in the pipeline for a while.
“[The former] is designed as an inland
port, where containers will be railed from
the harbour to Cato Ridge and then collected
from there and transported by road or rail to
Gauteng. It is hoped that this will alleviate the
problems that Durban Port and the surrounding areas are experiencing with traffic congestion.” Meanwhile, the Westown Development
is one of eThekwini municipality’s catalytic
projects with Tongaat Hulett (landowners) and
the developer, Fundamentum. “It is a modern
mixed-use development modelled on Waterfall
City in Midrand.”
Construction Mafia
She notes that one of the major challenges
industry is battling with is the construction
mafia, which started a few years back as a
consequence of the radical economic transformation movement, where people without
any participation in the project would arrive
at a construction site and then demand cuts
from the tender.
REDEFINING VALUE
The industry is battling major challenges with the construction mafia which is costing the economy
billions of rands
She adds that when developers refused to
give in to those demands, the mafia would
threaten employees and shut down the site,
often at gunpoint.
“The cost to the economy has been estimated
as running into billions of rands which we can
barely afford. Only now are steps being taken
to put a stop to this behaviour. We are faced
with serious challenges from the recent floods
and damage to our ageing infrastructure and,
in addition to loadshedding, we experience a
lot of water outages owing to burst pipes and
pumps being stolen or not being maintained.”
She also points out that the July 2021 riots
and looting had a huge impact, but that she is
hopeful that the local economy will be resuscitated with the developments under way.
COUPON ON PAGE 20 E651482
Intelligent
Fire Stopping Buildings
AN
August 4 –10, 2023 | ENGINEERING NEWS & MINING WEEKLY
|
53
BUSINESS LEADER
Donovan
Chimhandamba
Nyanza Light Metals
© Copyright Creamer Media (Pty) Ltd
MZ
Full Name: Donovan Antony
Chimhandamba
crowdfund an African
infrastructure project
Position and Company Name: CEO of
Nyanza Light Metals
Person Who Has Had the
Biggest Influence on Your
Life: My grandfather
Main Activity of the Company:
Manufacturing of titanium dioxide pigment
Date and Place of Birth: September 12,
1979, Zimbabwe
Schools and Tertiary Education: BEng
(Hons) (Industrial and Manufacturing
Engineering), Zimbabwe; MBA, Gordon
Institute of Business Science, South Africa
First Job: Industrial engineer, Engen
Refinery
Size of First Pay Packet: R7 000 a
month, in 2002
Career Path to Date: Industrial engineer;
maintenance planner; operations
engineer; human resources; production
management; GM: operations and
manufacturing; business development
executive; investment banking, private
equity, project finance and venture capital
head; private-equity fund manager
Value of Assets under Your Control: A
$750-million project
Number of People under Your
Leadership: Direct, 50; indirect, 200
Person Who Has Had
the Biggest Influence on
Your Career: A certain South African
ambassador
Person You Would Most Like to Meet:
Former US President Barack Obama
Favourite Music: Very universal –
Afrobeat, R&B, Soul, et cetera
Favourite Sport: Running and golf
Hobbies: Gardening and running
Businessperson Who Has Impressed
You Most: Aliko Dangote
Car: Jaguar F-Type, Mercedes-Benz
GL500, Jeep
Philosophy of Life: Always learn how to
build things from scratch
Pets: None, except for visiting birds
Biggest Ever Opportunity: To become
the leading force for titanium mineral
Biggest Ever Disappointment: Politics
affecting a clearly laid-out plan for
Zimbabwe’s railway rehabilitation
Hope for the Future: That political
economy and governance improve
in Africa to allow for more African
entrepreneurship that is not encumbered
by politics
Miscellaneous Dislikes: Lack of
attention to detail and people who
theorise too much, with nothing
tangible
Married: To Hazel
Children: Kyle, 17; Adrian, 14; Zoe 7
Clubs: Houghton Golf Club
Favourite Reading: Bargaining with the
Devil, Difficult Conversations, The Art of
Action and Negotiating the Impossible
Management Style: Participatory
Favourite TV Programme: CNN and
Bloomberg News
Personal Best Achievement: Ability
to mobilise those in the diaspora to
Favourite Food/Drink: African traditional
foods and seafood/red wine, Carb Sauv
Source: Bloomberg
Always learn how to build things from scratch
Aliko Dangote
54
| ENGINEERING NEWS & MINING WEEKLY | August 4 –10, 2023
AN
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