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Published by tasch, 2019-08-12 04:16:57

SA Mining - July / August 2019

Keywords: SA Mining,SA Mining Magazine,Mining Magazine,South Africa Mining,Tiso Blackstar Group,mining industry

R500bn: Potential value of SA’s EV market R17bn: Value of stainless steel flat products in 2018

w w w. s a m i n i n g . c o . z a

R39.90 (incl VAT) International R44.50 (excl tax)


Innovation and
remain key

Impact on African trade

Invincible Valves
MD Pam du Plessis


Invincible Valves drives skills development



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“ “

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SASSDA calls for a revival of the economy.

High electricity costs hamper mineral beneficiation. AfCFTA agreement’s impact on African trade.

IN BRIEF SA MINING R500bn: Potential value of SA’s EV market R17bn: Value of stainless steel flat products in 2018

6 Community and employees get 5% ownership stake SA MIN NGJULY/AUGUST2019
in Prieska project w w w. s a m i n i n g . c o . z a
Makhado hard coking coal o -take concluded
Renergen lists on Australian Stock Exchange READ WHAT REALLY GOES DOWN IN SADC
Northam breathes new life into Eland R39.90 (incl VAT) International R44.50 (excl tax)

8 Shortcomings of Mining Charter III Innovation and Invincible Valves is
Despite being widely accepted by industry, key concerns technology committed to driving the
related to Mining Charter III were recently tabled by panellists remain key employment equity and
at the 2019 Junior Mining Indaba conference. skills development agenda,
CELEBRATING AfCFTA says MD Pam du Plessis.
Innovation and technology are key strategic focus areas for IN MINING
black-empowered miner Exxaro, which faces headwinds as a Impact on African trade
fossil fuel producer.
JULY / AUGUST 2019 Invincible Valves
14 Coming clean MD Pam du Plessis
Alternative energy company Renergen’s CEO Stefano Marani
provides insight into how growing the clean energy agenda GENDER EQUITY
translates into growing the economy.
Invincible Valves drives skills development
32 Women in Mining
In celebration of Women’s Month and Mining Charter III’s call 42 EV market set to soar
for increased participation of women in the sector, SA Mining GreenCape’s Khanyiselo Kumalo o ers insight into the fast-
caught up with a few leading ladies to unpack the challenges growing electric vehicle market, which – valued at
and opportunities presented by changing legislation. R1.6-billion in 2018 – is set to explode in the next few years.

40 Impact of the AfCFTA agreement on African trade NEWS IN NUMBERS
Allen & Overy unpack the impact of the AfCFTA agreement on
African trade, in particular the mining industry. 20 R17bn: Value of stainless steel flat products in 2018
42 R500bn: Potential value of SA’s EV market


4 Out of Africa
54 Column by Peter Major

Visit SA Mining at or at


w w w. s a m i n i n g . c o . z a


UNDER WAY Nelendhre Moodley Tel: 011 280 5782
Email: [email protected]
Nelendhre Moodley
This edition of SA Mining comes against the feeling a shakeup as the world shi s to digital Stacey Visser Tel: 011 280 3671
backdrop of several devastating e ects of banking. More recently, industry has witnessed an Email: [email protected]
climate change, which continues to rear emergence of innovative digital banking players such
its head in unexpected ways. This includes as Discovery Bank, TymeBank and Bank Zero. Apart CONTRIBUTOR
Rodney Weidemann
the freak hailstorm that tipped more than from the expectation of increasing competition,
three feet of hail in Guadalajara in Mexico, and two there is that for a drop in consumer costs and for Shailendra Bhagwandin Tel: 011 280 5946
Email: [email protected]
earthquakes hitting California in a matter of days – a easy anytime/anywhere services from financial
6.4-magnitude earthquake that rocked Southern institutions. Ilonka Moolman Tel: 011 280 3120
Email: [email protected]
California on 4 July, followed by a 7.1-magnitude Speaking of rocking the status quo, the European Noël van Breda Tel: 011 280 3456
Email: [email protected]
quake just a day later. Commission has nominated Ursula von der Leyen as
With the e ects of climate change acutely its president while France’s Christine Lagarde, who Gail Mortinson
Tel: 011 280 5369 Fax: 011 328 2226
felt, industry leaders are taking the bull by the currently heads the International Monetary Fund, Email: [email protected]

horns and investing in mitigating the e ects of has been nominated as president of the European SUB-EDITOR
Andrea Bryce
climate change – in fact, petrochemicals giant Central Bank. In honouring Women’s Month, SA
Total recently revealed that it would be spending Mining’s Women in Mining feature firmly places the Jeremy Glyn

$100-million annually on a new forest preservation spotlight on some of the industry’s leading ladies. BUSINESS MANAGER
Claire Morgan Tel: 011 280 5783
“and reforestation project. According to the French This includes the cover story, Invincible Valves MD Email: [email protected]
Pam du Plessis, who has been at the helm for six
company’s CE Patrick Pouyanné, “the most e ective years and says that the old-school male-dominated GENERAL MANAGER MAGAZINES
way today to eliminate carbon, for less than $10 industry is slowly warming up to women (pg 26). The Jocelyne Bayer
a tonne, is reforestation”. Interestingly Exxaro, publication also caught up with industry’s movers
which is facing headwinds as a fossil fuel producer, SWITCHBOARD
says that following South Africa’s pledge to the and shakers – Olebogeng Sentsho, CEO of Simba Tel: 011 280 3000

Paris Agreement and its Mgodi Fund; Bauba Platinum’s SUBSCRIPTIONS
Gail Mortinson Tel: 011 280 5369
subsequent commitment The most e ective “ Aviona Mabaso; Mametja Email: [email protected]
to the ambitious global way today to Moshe, CEO of Moshe Capital;
greenhouse gas emissions and WLMB Group’s La-Che van PRINTING
reduction goal, reliance on eliminate carbon, is Niekerk and Neo Pilane, to Hirt & Carter
fossil fuels will continue to unpack some of the challenges
be curbed in the coming reforestation. and opportunities presented
years. to women working in mining,

Already industry- particularly given the impetus
leading institutions, provided by Mining Charter III

including banks and – Pouyanné (pg 32).
insurance companies, are For the Transport feature,

declining the funding of SA Mining spoke to legal

fossil fuel projects, which firm Allen & Overy about the Tiso Blackstar Group,
PO Box 1746, Saxonwold, 2132
also subsequently hampers the development of impact that the AfCFTA agreement will have on
Copyright Tiso Blackstar Group. No part
technologies aimed at cleaning up the coal act, says African trade, in particular the mining industry. This of this publication may be reproduced, stored
in a retrieval system or transmitted in any
Exxaro Resources’ CEO Mxolisi Mgojo (pg 12). conversation comes at a propitious time given the form or by any means, electronic or
mechanical, without prior written permission.
Speaking of energy, SA Mining also caught up with African Union’s launch of the operational phase of Tiso Blackstar Group is not responsible for the
views of its contributors.
alternative energy company Renergen’s CEO Stefano the AfCFTA (pg 40).

Marani to gain insight into how growing the clean AU Commission chairperson Moussa Faki

energy agenda translates into growing the economy Mahamat described the free trade agreement as an

(pg 14). If you are one of those people considering instrument for continental integration but stressed

making the jump to o -grid solutions, take a look that for the AfCFTA to be e ective, there was a

at Electric Vehicle Industry Association chairperson “need to open borders to other Africans”. According

Carel Snyman’s article which discusses the topic. to the African Union, the AfCFTA will be one of the

According to Snyman, who has made the jump to largest free trade areas since the formation of the

o -grid, making the move is easier than you think World Trade Organisation. This bodes well for the

(pg 22). continent, which has an estimated population of

Meanwhile, also rocking the world, in particular 1.2 billion people and is expected to grow to

the banking industry, is the announcement that 2.5 billion by 2050. Meanwhile, GreenCape’s

Deutsche Bank is in the process of retrenching some Khanyiselo Kumalo gives insight into the fast-growing

18 000 sta worldwide, 8 000 of whom were from the electric vehicle market, which, valued at R1.6-billion in

UK. The once-sought-a er career path is certainly 2018, is set to explode in the next few years (pg 42). ■


ASX-listed Orion Minerals’ community and employee trusts
ASX-listed Resolute Mining was admitted on to the London that are part of the Prieska Project’s ownership structure
Stock Exchange’s (LSE) Main Market on 20 June. MD will ensure that the community and employees will be the
John Welborn said that the dual listing in London and beneficiaries of 5% of future dividends remitted by the
the subsequent increase in profile in global investment owners of the Prieska Mine, the company said in a statement.
markets was perfectly timed as the company ramped up Orion Minerals CEO Errol Smart said the company wanted to
the new Syama Underground Mine in Mali. “Syama, once ensure that the earnings of the trust were maximised for the
commissioned, will be the world’s first fully automated biggest sustainable impact on the community and for it to
underground gold mine. We look forward to continuing to benefit the most vulnerable of its historically disadvantaged
deliver on our exciting growth agenda.” members. “While the 2018 Mining Charter allows Orion five
years to establish community and employee ownership
structures, our wish is to forge a strong relationship with our
community and employees right at the outset and engage
meaningfully with these key stakeholders as equity partners
with full voting rights.”


Platinum producer Northam Platinum will recommence mining MC Mining has signed o an o -take agreement with
operations at the Kukama sha on its Eland mine complex in the ArcelorMittal South Africa (AMSA) which will see AMSA
new financial year (F2020). Northam purchased a 100% interest purchasing hard coking coal (HCC) that will be produced from
in the Eland mine from Glencore Operations South Africa in Phase 1 of the Makhado coking coal project. Completion of
February 2017 for R175-million. Key conclusions from the the o -takes satisfies a key requirement for the Makhado
Kukama sha feasibility study include steady state production Project’s economics and allows funding discussions to gain
of 150Koz pa 4E, at unit costs in the lower half of the industry further traction with construction anticipated to commence
cost curve and the creation of 2 800 permanent jobs. Production in Q3 CY2019. South Africa has limited production of high-
is forecast to reach 100Koz pa 4E by 2025 and steady state quality metallurgical (coking) coal, resulting in AMSA and other
production of 150Koz pa 4E is forecast from 2029. coke producers having to import HCC for the manufacture of
metallurgical coke, a key ingredient in the production of steel,
RENERGEN LISTS ON ASX the company said. “The signing of the Phase 1 HCC o -take
agreement with AMSA is a massively positive step for Makhado.
South African-listed alternative energy company Renergen MC Mining is now positioned to become South Africa’s pre-
began trading on the Australian Securities Exchange (ASX) in eminent producer of high-grade metallurgical coal and the
early June. The AltX exchange-listed company is an emerging Makhado coking coal will partially replace coking coal currently
producer of liquid helium and liquefied natural gas. Proceeds imported,” said CEO David Brown.
raised from the listing will be used for further exploration
and expansion of the Virginia Gas Project, which contains a
significant natural gas resource and one of the richest helium
concentrations globally, the company said.


“Intelligently investing in
our customers, always pays

the best interest.”

Rafael Fernandes

AEL Executive Director: Finance

AEL Intelligent Blasting
Tel: +27 11 606 0000
E-mail: [email protected]

GENERAL NEWS © ISTOCK – jasonbennee



In the spotlight was therefore taken with great di iculty.” CHARTER AMENDMENTS © Russell Roberts @ Financial Mail
Leon further highlighted a High Court The view that the minister has the
By Nelendhre Moodley power to make amendments to the © Trevor Samson @ Business Day
judgment that stated that “the minister only charter is not supported by industry.
Despite being widely accepted by had the power to promulgate the charter
industry, key concerns related to once”, and this once-o was in August 2004. Peter Leon.
Mining Charter III were recently
tabled by panellists at the 2019 “Any charter therea er is ultra vires – and Tebello Chabana.
Junior Mining Indaba conference. if that decision is correct then the second
“The charter has become a regulatory version of the charter is ultra vires as is He cited the automotive industry which
instrument rather than a document the current one. If this is the case, then the “basically had around 25 years to get to 40%
originally aimed at promoting socio- government really has a problem,” he said. of local content and an allowance to 2035
economic change in the industry,” Peter to get to a 60% local content target” as an
Leon, partner at Herbert Smith Freehills, told Furthermore, Leon highlighted that the example.
delegates attending the conference held in original charter of 2002 outlined a black
Johannesburg recently. economic empowerment (BEE) ownership “In essence, the automotive industry
According to Leon, when the charter target of 26%. This target was raised to 30% is allowed around 40 years to meet a local
was initially promulgated in 2002, it was in recent charters. content criteria of 60% compared to the
constructed as a document highlighting the mining sector, which is expected to meet
agreement between government, labour “The question is: Would this target be the target of 60% local content in five years,”
and business, and aimed specifically at moved further with Mining Charter IV? Chabana said.
promoting socio-economic change. Will the 30% BEE target be move to 51%?
“The idea was that the charter, as a When government launched the original Looking ahead, Leon advocated for the
binding social compact, imposed obligations charter, government, together with the then requirements to be set out clearly and for
on all three actors. However, what you have Chamber of Mines, went on a road show the “charter to go back to being what it was
now is a quasi-regulatory document that pronouncing to investors that the 26% BEE in 2002 – a binding social compact”.
creates regulatory instability largely because standing would not change. My point is that
the minister has the option to change the we need to have regulatory stability and The continuous changing of the rules
rules when he sees fit.” predictability to get investment in what is was problematic as it unnerved investors,
The Minerals Council South Africa’s considered to be a high-risk capital-intensive he added.
senior executive for public a airs and industry. How to create regulatory stability
transformation Tebello Chabana agreed where you have a moving target is a real “Industry needs to adopt the model of
with Leon, saying that while the Minerals challenge for industry,” Leon said. the mining code that Botswana and Ghana
Council generally supported Mining Charter has adopted, which is clear and concise,” he
“III as a transformation tool, it didn’t “support Chabana also raised the issue of inclusive said. ■
the view that the minister had the power to procurement as a bone of contention.
make amendments to the charter”.
“We see the charter as a policy instrument “The targets, specifically related to
and not as binding legislation. The decision local content, are too sti for the mining
to challenge the third iteration of the charter industry. We can meet the black economic
empowerment targets, but those pertaining
to 60% of local content are sti .”

The continuous changing of the rules is
problematic as it unnerves investors.

– Leon



AD-13608 REV A 04/2019


HigH electricity
cOStS Hamper mineral beneficiation
By Nelendhre Moodley
Government continues to demand
that the mining industry focus on metals and manganese having the lowest due to the high and uncompetitive
beneficiating its raw materials beneficiation rates. production base.
to improve its trade balance.
However, effective beneficiation how will increased mineral which are the areas of quick
requires collaboration by all stakeholders. beneficiation affect the economy? wins that south africa can take
To better understand the factors influencing As illustrated by graph 1, the potential advantage of in the short and
local beneficiation, SA Mining caught up with economic benefits of mineral beneficiation medium terms?
Henk Langenhoven, chief economist at the are significant.  The constraints to beneficiation (electricity
Minerals Council South Africa. shortages and costs, and SOE inefficiencies)
 It should be noted that beneficiation are virtually overwhelmingly prohibitive. The
how important is mineral is capital-intensive and therefore requires temptation to constrain exports to achieve
beneficiation to south africa? significant investment, which in turn beneficiation without enhancing the cost
In 2017, 68% of all minerals were exported. requires policy certainty. competitiveness of the economy will be
Total mineral sales amounted to around hugely detrimental.
R453-billion of which around R145bn was The three critical success factors for
sold locally and R307bn exported. This beneficiation to succeed include the  
means that more than 30% of minerals availability of competitively priced and what is government’s policy
mined were processed and beneficiated in reliable electricity, high-level human stance on beneficiation and is
capital and a large domestic market, or it successfully translating to
“one or other form locally in South Africa. very competitive processes to capture action?
international markets. A good example is Effective beneficiation requires three key
Coal is probably the best example of iron ore and the small market for steel in elements – a market with sufficient demand,
conversion into energy (55%) with precious South Africa. A large proportion of iron ore is technical skills and a reliable supply of
exported but cannot be refined domestically

In 2017, 68% of all minerals were “
exported. Total mineral sales

amounted to around R453-billion of
which around R145bn was sold locally

and R307bn exported.
– Langenhoven

10 SA Mining JULY / AUgUST 2019

competitively priced electricity. gRAPH 1 - Opportunity cost from the reduction in local beneficiation
A key constraint for the mining industry,
26 000.00 ▪ Opportunity cost 25 258.05
and beneficiation in particular, has been the 21 000.00 ▪ Potential (2007 levels) 16 701.57
above-inflation electricity tariff increases. ▪ Actual
We have experienced increases of around
500% over the past decade with further tariff ZAR million (R1 000 000) 16 000.00
increases granted in March this year.
11 000.00 20 195.76 Sources: DMR, Quantec, Minerals Council
Beneficiation industries such as foundries
and manganese smelters, initially established 6 000.00 6 523.66 5 890.96 6 918.57 6 832.89
in South Africa because of lower electricity
tariffs compared to other countries in the rest 1 000.00 3 829.26 4 299.77
of the world, were forced to either close their 3 246.10
doors or relocate as a result of the above- 2007
1 879.50
“inflation tariff increases. Whereas 30% of -4 000.00
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
manganese production used to be processed
domestically in 2007, only 3% is currently “ © ISTOCK – industryview
being processed, and with a factor of 1 (raw
ore) to 4 (final product) the country is losing the opportunity cost, graph 1.) electricity supply and increasing electricity
R25bn in income and foreign exchange. (See Over the past decade, manganese tariffs have rendered local beneficiation
unviable. The value derived from beneficiating
The value derived production has trebled due to export demand manganese alloy can be more than four times
from beneficiating for use in iron and steel production, among the value of manganese ore. In 2007 before the
manganese alloy can various other uses. Despite the abundance electricity crisis, local sales made up 29% of
be more than four of manganese in South Africa, unreliable total tonnes sold. In 2018, local sales decreased
times the value of to just 2.4% of total tonnes. The Minerals
manganese ore. Council estimates a total opportunity cost to
South Africa of R92bn, equating to $8.2bn lost
– Langenhoven in potential foreign exchange earnings over the
past decade. As local sales continue to drop,
© ISTOCK – kamilpetran relative to exports, the opportunity cost curve
will continue to widen.

Which minerals are beneficiated
locally and hoW is this
influencing the sector?
Local beneficiation does occur at varying
degrees across the different commodities.

Coal for example is beneficiated into
electricity with local sales for coal amounting
to 55% of total sales.

Other products include catalytic
converters, cement and steel which is sold
both locally and exported abroad.

Which countries are successful
at beneficiating and What lessons
can south africa learn from these
China, Malaysia and India are good
examples. China and Malaysia in particular
beneficiate significant quantities of South
African chrome, manganese and iron ore
while India is a large beneficiator of coal.

What these countries have in common
is that they have the necessary skills set as
well as an affordable and reliable source
of electricity and a market with sufficient
demand. n

SA Mining JULY / AUgUST 2019 11


Exxaro aligns with elements of 4IR

By Nelendhre Moodley

Innovation and technology are key innovation, investing roughly R100-million. so that we can predict failures or outcomes
strategic focus areas for black-empowered “Over the past three years, we have and react proactively to changes that occur
coal producer Exxaro, which faces continuously in our operations. For example,
headwinds as a fossil fuel producer. conceptualised and redefined our innovation if there is a problem in the pit, we can predict
Following South Africa’s pledge to and technology programme and have since the impact on the plant.”
the Paris Agreement and its subsequent rolled out our base technological backbone
commitment to the ambitious global and associated platforms. In the next three Its focus on digitalisation has seen the
greenhouse gas emissions reduction goal, years, starting from 2019, we have allocated miner reap significant rewards, including
reliance on fossil fuels will continue to be around R250m per year to progress our increased throughput from its operations.
curbed in the coming years, says the South innovation and technology drive,” Mgojo
African coal producer. says. In fact, for 2018, it delivered record coal
Already industry-leading institutions, production, sales and exports and increased
including banks and insurance companies, This as the company looks to maintain its its revenue by 12% year-on-year to
are declining the funding of fossil fuel lowest cost requirements. R25.5-billion.
projects, which also subsequently hampers
the development of technologies aimed at “Through our big data and analytics Through the use of the internet of
cleaning up the coal act, Exxaro Resources’ platform, we have put real-time information things (IoT), Exxaro is able to monitor
CEO Mxolisi Mgojo tells SA Mining. in the hands of decision makers (on any environmental inputs in real time and
“When financial institutions rebu device, including mobile phone, tablets or react to them sooner as well as increase its
investment around the development of clean laptops). We are in the process of advancing understanding of its carbon footprint.
coal technologies, it is a challenge to fund our analytics capabilities to make use of
such technologies without assistance from artificial intelligence and machine learning By increasing throughput, the company is
external sources.” able to produce significantly more tonnes for
However to ensure business viability, one R250-million the same emissions.
of South Africa’s largest coal producers has
over the past three years embarked on an Exxaro’s investment “Another area where we have seen great
extensive programme of digitalisation and in innovation and benefits is through adopting automation
technology over the and using robotic process automation to
next three years take over manual repetitive time-consuming
processes away from humans – these are
© ISTOCK – f3rd14n now being executed by ‘robots’. In this way,
we free up people’s time to do more value-
adding work; we increase accuracy, reduce
the need for overtime work or bringing on
additional contractors and we can reduce
cycle times, for example, the time it takes to
close our month end,” states Mgojo.

In line with advancing its drive on
innovation and digitalisation, Exxaro
has inked a number of key partnerships,
including those with industry-leading
so ware companies such as Microso , as
well as collaborating with smaller start-ups
to explore innovative ways to solve existing


INNOVATION INCLUDE: Following South Africa’s pledge to the Paris
Agreement, reliance on fossil fuels will continue
■ Improving safety.
■ Unlocking value, especially to be curbed in the coming years.
– Mgojo
increasing throughput from

■ Facilitating collaboration

internally and externally.

■ Enabling better insight into

Exxaro business across operations
and functions to enable better
decision making in real time.

© Russell Roberts @ Financial Mail Mxolisi Mgojo. Exxaro has put real-time information
in the hands of decision makers.

“We are also using tools, including lean the national power utility, Eskom, while high value-add coal project under Exxaro’s
principles and design thinking, as ways semi-coke and related products are stewardship.
to e ect changes and are looking at new produced for the growing ferroalloys
skills sets in the market, new management industry. Exxaro’s operations include EXXARO’S CLEAN ENERGY DRIVE
techniques and philosophies, including those Grootegeluk mine, which has a production However, in line with its clean energy drive,
adopted by agile start-ups.” status of 23.4mtpa; Mafube mine, in which Exxaro expanded its footprint to include
Exxaro has a 50% ownership, produces renewable energy project development,
The miner has rolled out 4.5G LTE 3.4mtpa; Leeuwpan colliery which delivers through Cennergi – a joint venture with Tata
networks at its underground operations and 3.8mtpa; Matla mine, producing 8.5mtpa; Power. Cennergi launched its operations
at the pit of its coal operations to ensure while its export thermal coal producers, in the South African renewable energy
higher bandwidth and wider coverage. Dorstfontein Complex and Forzando sector in 2012. Together the entities have
However, plans are under way to upgrade to Complex, produce 2.5mtpa and 2mtpa implemented two wind projects in the
5G technology before year end. respectively. Eastern Cape – the Tsitsikamma Community
Wind Farm project, which reached
EXXARO’S OPERATIONS Apart from these projects, Exxaro is busy commercial operation in the third quarter of
The largest supplier of coal to Eskom developing Belfast coal mine located in the 2016, and the Amakhala Emoyeni Wind Farm
has five managed mines that produce Mpumalanga region. project, which has an installed capacity of
power station, steam and coking coal. 134.4MW.  ■
Most power station coal is supplied to The Belfast coal mine is a R3.3bn
project that represents the last sizeable SA MINING JULY / AUGUST 2019 13


Moving up the clean energy ladder

By Nelendhre Moodley

With the global drive to clean HOW CHALLENGED IS POWER
energy gaining momentum, AVAILABILITY CURRENTLY, AND WHAT
SA Mining recently caught ARE THE NEGATIVE IMPACTS?
up with South African- In terms of our project, we have a
listed alternative energy comprehensive power solution with
company Renergen’s CEO Stefano Marani for significant redundancy. The first point of
an understanding of how growing the clean power is the grid directly from Eskom. We
energy agenda translates into growing the have also gone to market for the supply
economy. of a solar/battery/gas co-generation plant

“© ISTOCK – zhengzaishuru “ to supplement the grid. The final layer of
© ISTOCK – bashtaredundancy is diesel backup generators.
Before we can as a nation truly With the correct planning, power instability
reduce our carbon footprint, we can be e ectively managed. Established
need to grow the economy and businesses that built their operations prior
to the first signs of load shedding are in a far
reduce unemployment. more precarious position, as now they need
– Marani to develop redundancy out of budget, and
this is going to cost the economy overall.
14 SA MINING JULY / AUGUST 2019 Getting to grips with the power problem is
critical for the government if it truly wants
to see economic growth. It is a very simple
equation. If a company must spend money
buying expensive equipment to operate
in emergencies, it pays less dividends to
shareholders, mainly pension funds. These
pension funds are the country’s citizens’
store of wealth. Less dividends means less
wealth, and this hurts all of us.

Of the number of projects awarded in terms
of the Renewable Energy Independent Power
Producer (REIPP) programme, quite a few
projects are still to be commissioned. This
means that as it stands the actual amount
of green power feeding into the grid is
certainly less than has been awarded to
date. As these projects reach completion this
percentage will increase. Broadly speaking,
the programme was seen as being quite
successful, and should be encouraged,
but this is a political issue which requires
decision makers to take a view on how to
prioritise issues ranging from job losses and
creation versus meeting greenhouse gas

Germany committed to buying solar energy from residential
homes at a tari higher than power from the grid, which
allowed local banks to fund the installations. – Marani

Despite Standard Bank’s decision
SECTOR TO INVESTORS? FROM GOVERNMENT TO DRIVE THE about the degree to which it was
The mindset is changing quite rapidly. Take DEVELOPMENT/PROGRESSION OF involved in activities that exposed
for example the recent Standard Bank AGM CLEAN ENERGY SOLUTIONS? it to climate change risk, the fact
– this is not only happening in SA but is also They exist, but more could certainly be that the climate change sentiment
a global trend, with the Church of England done. In Germany for instance, the power was up for discussion signals a
having announced a divestiture from fossil utility committed to buying solar energy major mindset shi taking place in
fuel development. With carbon tax having business.
just been introduced in SA, not only investors “from residential homes at a tari higher
but customers alike are starting to plan to ARE THERE ANY LESSONS THAT SOUTH
ensure their businesses remain sustainable. than power from the grid, which allowed AFRICA CAN TAKE FROM OTHER
There is a growing pool of investors willing to local banks to fund the installations without COUNTRIES IN DRIVING THE CLEAN
sacrifice some returns over cleaning up the it impacting the power utility’s ability to ENERGY AGENDA?
environment, and this should be encouraged borrow. In a short space of time Germany Definitely. And apart from the example of
by governments through simple techniques Germany, Denmark has made incredible
such as tax incentives. Investing strides with wind energy, and Costa Rica is
R1-million into a proactively transforming its carbon footprint.
DO YOU THINK CLEAN ENERGY small business will Even China, as the largest emitter, is rapidly
PRODUCERS ARE COMING TO THE TABLE create significantly changing its carbon footprint for the better.
FAST ENOUGH? more jobs than It is not impossible, but it takes political will,
“No” is the short answer. The situation in investing R1m into which is in short supply when bellies aren’t
South Africa is however complex, with many an ALSI 40 company. being fed. Before we can as a nation truly
competing interests. People reliant on jobs reduce our carbon footprint, we need to grow
in the traditional fossil fuels will be less – Marani the economy and reduce unemployment. >
sympathetic to climate change, and have
the ability to influence government in a way SA MINING JULY / AUGUST 2019 15
counterproductive to reducing our carbon
footprint. Changing this situation will require
a new approach to integrating green energy
and phasing out fossil fuels.

managed to reduce its carbon footprint
significantly. In South Africa we have a
tendency of over-regulating everything.
The National Energy Regulator of South
Africa (NERSA) is now going to give itself
the additional administrative burden of
attempting to regulate residential solar
panels. The motivation for this move is
unclear – whether it was a move to protect
Eskom, which is beginning to look like it is
entering a classic “Utility Death Spiral”, or
whether there are other motivations.

“ENERGY Renergen’s Virginia gas
project in the Free State.
There is a growing pool
of investors willing to“
sacrifice some returns
over cleaning up the

– Marani

HOW SIGNIFICANT IS RENERGEN’S ANYTHING MORE YOU WOULD LIKE TO quickest and simplest way to achieve this is
PRODUCT OFFERING TO THE SOUTH TELL READERS? to replicate the good work done with Section
AFRICAN ECONOMY? A final thought on growing the economy 12J companies. Allow asset managers to
As a percentage of the diesel supply to the in the hope that someone reads this idea create special investment vehicles who are
logistics market, it would be around 0.8%, and runs with it. Investing R1-million into capital gains tax-exempt if they only invest
which is very small. The project is however a small business will create significantly in companies with a market capitalisation
significant as it is a proof of concept for more jobs than investing R1m into an ALSI of R2-billion or less. The capital gains tax
the country and will hopefully change the 40 company. Applying this logic, incentives foregone by the South African Revenue
mindset towards being greener. should be created to redirect pension funds Service would be very small in comparison to
from investing in the biggest companies to the additional tax generated by the growth of
HOW BIG IS THE NATURAL GAS MARKET investing in the smallest companies. The these small businesses. ■
Gas can be substituted into most areas
where energy is required. The whole gas
sector is a very big opportunity, but faces
significant obstacles, making it di icult to
enter the market.



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Morne du Plessis replaces Andre Bojé Edinburgh, Scotland, has held top and has been an integral part of the
as CEO of Botswana Stock Exchange- management positions for several operational team that developed the
listed Minergy as from coal mining and trading groups. Masama project. Mokwena Morulane,
1 August. Minergy, which owns the This includes contract mining and non-executive chairperson of
390 million-tonne Masama Coal beneficiation service provider Genet Minergy, says Du Plessis has extensive
Project in the Mmamabula Coalfield, SA, junior coal miner Umcebo Mining experience in coal mining and trading,
is looking to become a preeminent Group and Johannesburg Stock particularly in Southern African but
coal mining and trading company Exchange-listed junior coal miner also internationally, and his public
in Southern Africa. Du Plessis, a and trader Wescoal Holdings, says company director experience is
chartered accountant with an MBA the company. Du Plessis has been a a significant factor in the board’s
from Heriot-Watt University in director of Minergy since January 2017 decision to appoint him as CEO.


In any business, time is money, and maintenance costs and unplanned Through research conducted by
this ideology stretches across multiple downtime which can contribute to cost Shell, the impact of lubrication truly is
industries including that of mining. It is savings far higher than the price of the underrated, with only 60% of companies
for this reason that downtime caused by lubricant itself. believing they can reduce costs by less
equipment failure and breakdown can than 5% through lubricant selection and
result in financial losses that many simply “The belief is that apart from the management, while a mere one in four
cannot a ord, explains Anton Niemann, moving parts of a machine, there is think savings could exceed 10%, the
Shell Downstream South Africa general potential for lubrication to deliver even company says.
manager for lubricants. greater business value by contributing
to improving machine productivity, and However choosing the correct lubricant
Optimising lubrication can have a therefore reducing associated running or grease o en depends on a combination
significant impact on component life, costs.” of the equipment’s design characteristics,
operational parameters and environment.
© ISTOCK – kadmy Factors like temperature, humidity and
location (altitude/underground) all pose
di erent challenges for lubrication.

The three primary lubricant
applications in the mining industry involve
components such as engines, drivelines
and open gears; and in all cases, selecting
the right lubricant is a critical first step in
improving productivity as well as realising
significant total cost of ownership savings.

It is worth investing in the resources
as well as selecting the correct lubricant
as the performance benefits in terms of
protection far outweigh the investment,
Niemann says.


The benchmark in


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diamond-bearing gravels, but we can throw anything at these Finlays and they separate what we
don’t want from that which goes to the plant – they are simply amazing,”
Schalk Steyn, owner of Steyn Diamante.

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SASSDA calls for a revival of the economy

By Nelendhre Moodley

Valued at an estimated worth about R17bn. Of the 465 236 tonnes GOVERNMENT HAS FOR SOME TIME
R17-billion in 2018, the stainless produced, 156 103 tonnes were consumed BEEN TALKING OF BENEFICIATION –
steel industry continues to play a in South Africa to produce stainless steel WHAT IS THE POLICY STANCE AND IS
vital role in both job creation and finished products, with net exports of IT SUCCESSFUL IN TRANSLATING TO
in driving gross domestic product. primary products being 309 133 tonnes. This ACTION?
Infrastructure recently caught up with value chain creates around 40 000 direct From a stainless steel point of view, we
Southern Africa Stainless Steel Development jobs. are identifying stainless steel products
Association (SASSDA) director John Tarboton where it is possible to increase the import
to chat about mineral beneficiation and the HOW WILL INCREASED MINERAL tariffs by increasing the applied rate.
role of stainless steel in the country. BENEFICIATION IMPACT THE ECONOMY? We have been discussing that with the
The value and jobs in the total beneficiation Department of Trade and Industry (dti).
HOW IMPORTANT IS BENEFICIATION value chain increase as we move down the We are looking at the 20-year trade stats
TO THE SOUTH AFRICAN ECONOMY, value chain and are additive. Exporting at
PARTICULARLY STAINLESS STEEL? the beginning of the value chain is e ectively
All stainless steels contain chromium and exporting jobs.
iron and most stainless steels also contain
nickel. In South Africa, most stainless steels WHICH ARE THE AREAS OF QUICK WINS
are made from virgin raw materials that IN MINERAL BENEFICIATION FROM
are mined and from steel scrap. If we look WHICH SOUTH AFRICA CAN BENEFIT IN
at chromium beneficiation, chromite ore is THE SHORT AND MEDIUM TERMS?
mined and smelted to ferrochrome. Over In general, stainless steel consumption per
80% of global chromium consumption is capita is directly proportional to GDP per
used in stainless steel production. As one capita. So ultimately we need to grow the
moves down the chromium value chain economy. However, water and sanitation
(chromite-ferrochromium-stainless steel infrastructure would be one – water
primary products-stainless steel finished purification and sewage plants, and also
products) more value is added and jobs water pipelines, particularly service pipes.
created. In 2018, 465 236 tonnes of stainless Another would be electricity pylons in areas
steel flat products were produced and near the coast where corrosive conditions
based on published global prices, would be cause problems with steel pylons.

R17bn IN 2018

Value of stainless steel flat products



“ “

A huge success story was the invention of 3CR12 by
Columbus Stainless in 1977.
– Tarboton

of various stainless steel products in steel products can be sourced to make the of the world’s stainless steel. The strategy is
order to try to protect the downstream product. However, this is not a problem to produce stainless steel primary products
stainless steel industry. The dti has unique to South Africa. at the lowest possible cost to ensure that
already designated all products fabricated the finished stainless steel products can
from stainless steel. This means that WHAT ARE SOME OF THE SUCCESS be produced at very low cost. Although
government procurement must be local STORIES? the stainless steel primary product costs
where the capability and capacity exist. A huge success story for South Africa was the have been lowered in China by technology,
The dti regularly contacts SASSDA for invention of 3CR12 by Columbus Stainless there are also allegations of subsidies to the
consideration on exemption requests in 1977. This product is now widely used stainless steel industry that unfairly tilt the
from government procurement to this around the world and has successfully playing fields in their favour.
designation. We then advise the dti created new applications for stainless steel
whether local procurement is possible or in many applications such as coal wagons, HOW IS THE LOCAL SECTOR
not. So this process is working well. buses, electrification masts, mining-wear PERFORMING?
plates and infrastructure, water tanks, In the past few years, the stainless steel
WHAT ARE KEY CHALLENGES THAT reinforcing bar, etc. industry has been struggling and continues
INDUSTRY FACES IN TAKING UP THE to do so. There are pockets of excellence
Our members complain of unfair competition AT BENEFICIATING AND WHAT LESSONS market are growing rapidly and doing
from China. There are many cases where the CAN SOUTH AFRICA LEARN FROM THEM? extremely well. However, for the majority of
finished product is being supplied at a lower China is very successful at beneficiating our members, this is not the case. We need a
cost from China than the primary stainless stainless steel. They now produce over half revival of the economy. ■




A growing trend for South Africans

By Carel Snyman – Electric Vehicle Industry Association chairperson

Typically consumers of power are encouraged to participate with a provision EASE OF TRANSITION
connected to a central supplier of a feed-in tari . This option worked so well Technology advances, availability of
of electricity. In South Africa this that today German citizens have many solar components, and especially price reductions,
supplier has been, and still is to photovoltaic (PV) roofs and the tari is no have made it relatively easy to move away
a large extent, the state utility longer needed. from Eskom and become more or even
Eskom. An increasing number of people completely independent of the Eskom grid
and businesses today are considering the As a matter of fact, if we had the same connection. Apart from this technology
installation of solar panels on the roofs amount of solar panel capacity in South becoming significantly more a ordable in
of their homes and buildings in order to Africa that the Germans had installed, we recent years, banks remain keen to o er
produce electricity with the aim of being less would have double the capacity of electricity loans to finance o -grid installations.
dependent on Eskom. The production of own that Eskom currently supplies. This is thanks
electricity could, apart from supplying the to double the solar radiation that we have Due to the increase in power supply
consumer need, also supplement the Eskom in South Africa when compared to Germany. uncertainties and availability, the demand
grid. This means that 1m2 of PV in South Africa can for alternative power options has increased
produce double the electricity of the same in proportionally with various suppliers and
THREE WAYS TO BECOME LESS Germany. installers now competing for new business
DEPENDENT ON ESKOM opportunities created by constrained power
In the first instance the connection to the Secondly, a connection could also be a supply from Eskom.
grid is called a grid-tied solution, where hybrid solution, in which case the connection
the production of solar electricity can also gives the consumer various choices in terms It has certainly become reasonably simple
feed electricity into the Eskom grid. In this of using the grid. to make the transition to o -grid – either in
way Eskom could get electricity from many part or completely.
decentralised producers. Typically a hybrid solution is used to lower
the demand on Eskom – solar installation WHERE DOES THE IDEA TO BE OFF-GRID
In Germany these producers were provides su icient electricity for consumers’ COME FROM?
needs. Where customers have a need that is not
Low voltage DC circuits being met, they will actively seek a solution
disconnect (optional) This solution can be set to feed the grid to meet the need.
with energy from consumers’ solar panels (if
AC circuits allowed) or not feed the grid at all. According to Petra Sundström, head of
digital business development, crushing and
Charge Thirdly, if battery storage is added to screening at Sandvik, “Technology by itself is
controller the system, the system can be set to use not the disruptor. Not being customer-centric
electricity from the grid or not to replenish is the biggest threat to any business.”
Ba ery bank Standalone Generator backup battery energy. One can also choose to power
inverter the facility using the battery option only, for The population looks up to the people
instance at night, and let the sun recharge the they have put in a position to lead and
battery the next day and use the grid only as govern for guidance and support.
a backup or at peaks.
They trust and expect that the same
The term o -grid refers to a consumer government would provide for their safety,
who is not connected to the grid at all. This and supply basic services like shelter, water
installation typically includes battery storage and energy, so that they need not provide
of the size that could power the facility at all these services by themselves.
times of low or no sunshine. Due to the size of
the battery required, this system is typically It is tough enough trying to find a job,
the most expensive and is less popular. build a business and provide for your


family and, of course, pay for the basic City of Cape Town Solar panels convert sunlight
services needed in life. It is government’s electricity grid into clean DC energy
responsibility to make these services
available at the lowest cost possible for During peak consumption Existing electrical
consumers. This is fair, given that people pay periods and at night distribution board
taxes in order to have these services.
electricity is imported City-approved inverter
When the above fails due to interruption from the grid converts DC electricity
of the service or the cost of the service into usable AC electricity
becoming too high, consumers are emergency plans to ensure they stayed in
compelled to seek alternative options, failing business. New city-approved bi-
which they are forced to live without the directional electricity
required service. Recently the problems at Eskom resulted meter
in many and repeated load-shedding events
Given the challenges associated with (such as rolling blackouts) and for many Exported electricity:
interrupted electricity supply, consumers consumers this was the last straw. When the solar system generates more
continue to seek ways of becoming self- electricity than your building uses, the
su icient or other entities willing to provide Technology advances and price reductions excess electricity goes back into the grid
the service. When Eskom started to fail in the renewable energy field have made the and the city will credit you at a fixed rate
in providing su icient electricity to its move away from the Eskom grid connection
customers in 2008, consumers began making easier. Should sunshine be unavailable, the
consumer could fall back on the Eskom
THREE OFF-GRID SOLUTIONS Businesses and individuals continue to supply via the grid connection or use
install PV panels on their roofs to generate their a standby generator or solar energy
■ The production of solar own electricity. This is not too di icult, and in previously stored in a battery.
many instances lowers the cost of electricity
electricity during the day, when the sun is shining. Once an emergency measure,
generating one’s own electricity has today
■ A hybrid solution became a trend with many households
■ Battery storage and businesses alike making the jump
to o -grid to ensure trusted electricity
The term o -grid refers to a supply.
consumer who is not connected to
the grid at all. It is anticipated that in future the
supply of electricity will be sourced from
many decentralised producers/consumers
all sharing one big storage facility. ■




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An assessment of the future of coal
producers in South Africa must comprise electricity price hikes.
of two components, commercial and Cheap and reliable energy would go a long way
socio-economic sustainability. South
in guaranteeing mining and manufacturing jobs.
South Africa’s coal reserves run the risk of being

Africa’s mining history shows that a wasted resource, especially as some of the majors

companies have predominantly preoccupied divest from coal, in light of growing negativity

themselves with the former at the expense of the about the resource.

latter. Taking into consideration the declining life of

It would have been an anathema a few decades several coal mines, some of them would need to be

ago to mention socio-economic sustainability in the replaced.

same sentence as commercial considerations. The exit of the majors also presents an

Mining companies faced both booms and opportunity by opening the way for emerging

busts at di erent stages of their lifespans owing miners who are not listed to enter this space and

to commercial viability influenced by mainly two Dr Nomfundo increase the country’s output.
factors: geology and the market. But times have Ngwenya Emerging miners have already demonstrated
capability through their reliable supply to Eskom’s
Chairperson of Sibambene power stations.
The sector currently faces challenges on both Coal and director at Phuma

commercial and socio-economic sustainability Critically, expanding their involvement reduces

fronts. Yet these pitfalls cannot dim the light at the Phambili Engineering the risk currently posed to the security of supply by

end of the tunnel. the dominance of a few companies.

Coal producers and government should develop a common Finally, the international market continues to present

understanding of the sector’s importance for domestic energy, source opportunities for South Africa’s coal producers. There remains

of export earnings and addressing unemployment, inequality and significant international demand for coal.

poverty. This demand has shi ed from Europe to Asia and the upswing in

Commercially, there are three factors obscuring the way of coal-fired power stations can drive South African coal exports.

progress. The first is the ongoing negative narrative about coal and its At least 1 600 coal plants are planned or are under construction

e ects on the environment. in 62 countries, according to Global Coal Plant Tracker published by

No coal company can bury its head in the sand about this. Clean Global Energy Monitor.

energy is a matter of genuine concern and there must be continuous It is estimated that this would expand the world’s coal-fired power

innovation. capacity by 43%.

Equally, proponents of The Minerals Council

clean energy cannot ignore the projects that coal has an export

fact that South Africa has an potential of 110 million tonnes,

abundance of this resource that versus the current 75 million

can address the country’s urgent tonnes.
© ISTOCK - Jacek_Sopotnicki
energy and socio-economic The views expressed are the author’s own and do not necessarily reflect SA Mining’s editorial policy.At a socio-economic level,

needs in a way that renewables sustainability of the sector

cannot at this stage. hinges on its support from

Secondly, a solid domestic government through policy

market remains critical for coal certainty.

producers. The inclusive approach

Central to this market is that Mining Charter III has

Eskom, which burnt 120 million adopted, by seeking to broaden

tonnes (mt) of coal in 2018, beneficiaries of mining

almost half of South Africa’s operations, has the potential to

252mt output that year. provide the requisite certainty

Furthermore, the Integrated if both government and the

Resource Plan estimates coal sector find mechanisms to

consumption by Eskom to rise implement the charter.

from 120mt in 2017 to 139mt by 2023, decline back to 120mt by 2033, Unemployment, inequality and poverty remain a threat to South

and decline further to 90mt by 2050. Africa’s long-term stability.

This starkly illustrates the importance of Eskom to domestic Unrest and demands for jobs will remain a threat until there is a

sustainability of coal production. clear sense that there is a collective appreciation of the coal sector’s

Recent problems that have plagued Eskom have had an adverse potential to address these triple challenges.

e ect on the sector’s certainty about its future sustainability. Key In 2018, the sector recorded a 5.3% increase in the number of

among these concerns is the inconsistency in pricing. employees and employee earnings were up 10%.

There has to be a debate about transparent pricing that allows for At 86 919 jobs, coal producers were collectively the third largest

producers to be sustainable while a ording Eskom the possibility to employer in mining in 2018. The Minerals Council projects that

lower the price of electricity in the long run. additional output of 35 million tonnes could raise employment by

This is urgent given the fact that the Minerals Council South Africa 11 600 people. There is no doubt that the black mineral can shine the

estimates that the mining sector will shed 90 000 jobs as a result of the light during hard economic times. ■


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Invincible Valves drives employment equity

By Rodney Weidemann

The mining and engineering “Progress has been phenomenal “By doing this, it should have 20 times
sector o en appears to be an compared to a few decades ago, when the impact. It will not only impact on the
“old boys’ club”, but thanks to a any form of apprenticeship in this families of these students, but like ripples
growing focus on gender parity, industry wasn’t even open to women. in a pond, it will ultimately be felt by an
as exemplified by Invincible Of course, there are still many who increasing number of people within the
Valves, an increasing number of women have the perception that women are overall community.
are succeeding here too. not necessarily strong enough to handle
working in this business,” she says. “For me it is vital to focus on helping
Several decades ago, singer James as many youngsters as possible to escape
Brown opined that it was “a man’s “Of course, I believe strongly that the poverty and unemployment trap.
world”, but it is clear that this is a no woman should find herself stopped This should be the responsibility of all
severely outdated opinion. A er all, at the door before having a chance business people and of the nation as a
we live in a world where the #MeToo to show what she can do. Therefore whole. For me it is about teaching people
movement has risen to prominence, I am committed to making whatever a skill they can use to obtain a job or
where countries as diverse as Germany impact I can on gender equality in this to start their own business, and to this
and New Zealand have female leaders industry, through the implementation of end, Invincible strongly supports local
and where the clamour for equal learnerships for women.” businesses. Thus if there is any sub-
representation has grown deafening. contracting to be done, we always look to
She adds that her target market is use people within the community, even
According to Pam du Plessis, managing those girls who are not at university, if they are not always the most cost-
director at Invincible Valves, the mining but are still seeking a qualification. This e ective option.”
is because for the cost of sponsoring GENDER BENDER
“and engineering space may still be a bit one student to obtain a degree, she Du Plessis points out that as a woman
behind some other sectors in its levels can instead sponsor 20 youngsters to in this industry, she has always found
of representation, but she does feel undertake their fitting and turning that instead of trying to demonstrate
that women are becoming increasingly qualifications. how smart you are, it is better to instead
attracted to this arena. “ simply keep quiet, listen and learn.

Within the next decade we will witness female participation in “Many of the older men in the sector
this industry grow to around 40%, if not more. feel that a woman won’t really know
– Du Plessis anything about the industry, and I like
to let them believe that what they are
Inval® Ball Valve. saying is going over my head, as it gives
me a strong advantage.
“Moreover, I love it when I have the
opportunity to overturn a particular
perception someone has. Sometimes the
look on the men’s faces when I arrive
onsite in a bakkie and overalls, and am
ready to get as dirty as is necessary to get
the job done, is absolutely priceless.”

Invincible Valves was established
in 1982 and has since grown into a
medium-sized enterprise located in
Knights, Germiston.

“ “

Instead of sponsoring one student to obtain a degree, we sponsor Pam du Plessis.
20 youngsters to undertake their fitting and turning qualifications.
If it’s not Inval®, it’s not Invincible.
– Du Plessis programme have undergone this training,
regardless of whether their focus is
She indicates that it is this “old guard” problems di erently, so what may be accounts or fitting and turning.
in the sector that mostly still struggle a problem for a man is not necessarily
with the concept of women working in viewed as one by a woman. In fact, “We view these learnerships as vital
this space, and suggests that while it will Invincible’s board of directors is a great cogs in our drive to deliver skills and
take a few years, letting the evolution example, as the three men and two create jobs, which is why at minimum
happen naturally is the best approach. women all bring something di erent to we bring on board two new learners
A er all, she adds, most of the members the table, and it is these di erences that per annum, as well as accommodating
of this “Aged Industry” will have retired are the key to the board maintaining its an additional four learners externally.
in the next decade. objectivity,” she says. By this I mean we provide support for
learners who may not be studying
“As the younger generation enters “Within the business, we also don’t anything that falls within our industry.
the sector, I believe we will see the pigeon-hole people – we ensure that For example, there is one girl whose
gender parity gap closing, as this new everybody in the company, from the studies we pay for who is studying to be
generation is more open to change MD to the receptionist, has undergone a teacher. While this is well outside our
and also understands the value that training on our core focus of valves. ambit, we realise the broader benefit this
diversity adds to their ranks. In fact, it is This training includes an online SA Valve will o er to SA.
my opinion that within the next decade Manufacturers Association (SAVMA)
we will witness female participation in course.” “In fact, this for me underlines not
this industry grow to around 40%, if not only our approach to upli ment and
more.” Du Plessis explains that this approach gender equality, but also the way other
DIFFERENCES ARE KEY means that every employee knows the businesses should look at the bigger
Women certainly do bring new business and can understand it well picture. As far as I am concerned, we
approaches to things, she continues. enough to communicate e ectively with should all be contributing in some way,
“Not only is their management of skills customers. Even the girls who have been whether to our own industry or the
di erent, but women have strong brought into the company’s learnership nation in general, every single day,” she
emotional intelligence and are good at says. ■
applying logic to di icult situations.
“Men and women also o en view

Inval® Non Return Valve. Inval® Gate Valve. © ISTOCK – kapukdodds




Opting for non-OEM components can be
a costly business, voiding warranties and
causing system failures

APE Pumps and sister entity “ The company has retrofitted pumps in the where clients request alterations to existing
Mather+Platt have been at the past that were more than 40 years old. APE Pumps or Mather+Platt OEM designs
forefront of pump innovation to achieve the right flows and pressures for
within the Southern African For this reason, APE Pumps and their application.
market for close to seven Mather+Platt group products meet exacting
decades. Their well-established track record metallurgical standards. This ensures that In the past, three individual patterns
continues to be refined by the group’s premature failures do not occur – something were designed for stainless steel, bronze
research and development arm. a non-OEM component cannot guarantee. and cast iron. APE Pumps and Mather+Platt
have subsequently introduced a one-pattern
Sectors covered include municipalities APE Pumps and Mather+Platt conduct format for all metallurgical compositions.
and public utilities, energy, mining, manufacturer-warranted repairs, and supply
petrochemical, as well as general industry. new OEM pumps and valves. They also o er Whether it’s an o -the-shelf product, an
a turnkey installation and commissioning OEM custom design, or a retrofit, all work
These are supported by leading APE service. comes with a warranty.
Pump and Mather+Platt group brands that
include Gruppo Aturia, Viking, Vanton and RETROFITS AND BESPOKE SOLUTIONS “Cutting costs by going the non-OEM
EIM. “An exception to the OEM rule is where route is certain to impact on delivery and
retrofits are needed on older pump brands could well result in a catastrophic failure,
“Providing a total original equipment where that OEM no longer exists. In these prime examples being on a fire pump set-up
manufacturer (OEM) solution means instances, the technical drawings are also or a wastewater plant. So, speak to an expert
our clients have the assurance that their o en no longer available,” Montgomery OEM before considering the replicated route.
fluid-handling systems are backed by continues. “We’ve retrofitted pumps in the Our operations and maintenance teams can
comprehensive a er-sales and warranty past that were more than 40 years old.” APE devise a solution that keeps maintenance
programmes,” explains John Montgomery, Pumps and Mather+Platt have the expertise overheads within agreed targets to ensure
general manager for APE Pumps and to make a pattern for any application and that pump and business performance is
Mather+Platt. frequently develop replacement solutions for never compromised,” Montgomery says. ■
customers. At other times, patterns are made
“That’s important to emphasise,
particularly when it comes to scheduled
servicing and maintenance. Outside the
warranty period, it remains essential for
facilities owners to continue using OEM parts.
However, from time to time we do encounter
situations where clients opt for non-OEM
replicated parts, or even choose the pirated
part route,” he says. “That has serious
implications for overall system performance,
since it’s rare for replicated parts to exactly
fit the original OEM tolerance specifications.
The precise tolerances that need to be

“achieved can be as exact as one thousandth
of a millimetre.”
Internal components like impellers,
couplings and seals are all subjected to high
pressure ratings and, depending on the
application, corrosive environments.

The company has been

at the forefront of pump

innovation for close to

seven decades.

– APE Pumps


Leaders in pump innovation

26 Nagington Road, Wadeville, Germiston 1400, South Africa
Tel +27 11 824 4810 / Fax +27 11 824 2770
E-mail [email protected] / [email protected]
Website /

Split Case Pump Vertical Turbine

• Sugar and Paper Mills • Cooling Water
• Refineries • Circulation
• Petro Chemical • Irrigation

Multistage Pump

• Power Generation Plants
• Cooling and Heating

• Mining Applications

© ISTOCK – jurisam 26 Nagington Road, Wadeville, Germiston 1400, South Africa
Tel +27 11 824 4810 / Fax +27 11 824 2770

E-mail [email protected]/ [email protected]
Website /

100% Locally Manufactured
in South Africa




Funding from KSB Pumps and Valves has led to a community supplied four new HDC 6/8N pumps and a further nine REL oil
in Mpumalanga having access to proper clinic services pumps to Eskom. Since KSB was the sole original equipment
with clean running water and a secure environment, the manufacturer for these products, this led to a decision
company says. As part of the pump manufacturer’s corporate to reinvest a percentage of the order value back into the
social investment (CSI), the company decided to help community of Grootvlei.
Nthoroane Clinic with the upgrade of its facilities, including
the connection of its main water tank to internal facilities. “Having undertaken the project alongside Eskom we
According to Gerald Surjoobhalee, KSB Pumps and Valves have learnt that big businesses like ours can do a lot to help
commercial manager for its service department, the company communities in need. Team e orts such as this one between
provided both funding and project management for the state-owned enterprises and suppliers can help build better
project. business relationships and contribute towards healthy and
happier communities in future. I believe this is the right thing
“The project was undertaken a er KSB Germany directly to do,” says Surjoobhalee.

KSB Pumps and Valves’ Grant Glennistor, Gerald Surjoobhalee
and Patience Kotyi (far right), with Sister Thangithi Mazibuko.


Mechanical pipe joining and flow control solutions company Victaulic’s forces on pipe components and equipment.”
products are tested to accommodate not only seismic, but thermal, There are, however, measures to accommodate pipe movement
in instances of thermal change which include pipe design flexibility;
“This testing allows for system durability in practically all a reduction in pipe system stress; a more compact and productive
conditions, ensuring that engineers truly see the benefits of making method of installation as opposed to welding; and finally the
use of our industry-leading products,” states Marcel Ley, regional conformity to industry practices.
manager at Victaulic South Africa.
“We at Victaulic believe that grooved couplings are a smart
The main approach to designing a piping system that alternative to conventional methods. Not only are they easier and
accommodates seismic activity is an engineered combination of both faster to install over welding, but they accommodate movement
rigid couplings and flexible couplings in key areas of the system to within the design capabilities of the grooved coupling,” says Ley.
accommodate movement and sway.
“By allowing for thermal movement within the pipe join itself,
“Some of the most damaging e ects to a piping system can piping systems can be installed in smaller spaces. The inherent
be the result of not accommodating for movement,” explains Ley. flexibility of the pipe joint ultimately lowers stress on the various
“Temperature changes can exert dangerous and damaging reactive components in the system.”





By Nelendhre Moodley © ISTOCK – Thossaphol

In celebration of Women’s Month and Mining Charter III’s call for for the inclusion. Women are catalysts for demographic changes and
increased participation of women in the sector, SA Mining spoke to large-scale employment creation. Until we internalise this fact, we
a few women holding key positions. Olebogeng Sentsho, CEO of will continue to engage poorly with the role of women in mining. The
Simba Mgodi Fund; Aviona Mabaso, group legal counsel at Bauba new laws may make it mandatory to include women but women are

Platinum; Mametja Moshe, CEO of Moshe Capital; and WLMB not simply an ingredient in a recipe you can choose to include and

Group’s directors La-Che van Niekerk and Neo Pilane reveal some of exclude. We are the building blocks of the human capital that runs

the challenges and opportunities presented to women working in every mine.

WHAT ARE THE AREAS OF OPPORTUNITY FOR WOMEN I would recommend that any woman looking to get into this sector
consider her options and entry point carefully. The graduate
The industry is rapidly progressing into automation and sensor recruitment programmes are great locally, but I would want to do

technology to improve health and safety in mining. I foresee our place graduate work for a large conglomerate so that they can transfer those
in e iciencies: making mines simpler, better, faster
and safer. We lust for the skills into the regional mining sector.
MINING IN THE RECENT PAST? “ “If you’re not at the table, you’re on the menu.” –
Absolutely. When Dr Phumzile Mlambo-Ngcuka
became the minister of mineral resources and change the industry Michael Enzi. Always make sure that discussions
about you are held with you and that all interventions
energy women flocked into mining because of the
livelihood opportunities and the free education from within. to include you are made with your interests in a
paramount position, not to fulfil a “tick box” exercise.
o ered by mining companies. More recently, women
are charting their own path in the sector by becoming – Sentsho Earn the respect you seek. Respect the power you earn.

entrepreneurs, influencers, decision makers, analysts AVIONA MABASO – GROUP LEGAL COUNSEL AT
and pioneers. We no longer lust for the underground, we lust for the
opportunity to change the industry from within. As a result, we are not HOW WOULD YOU DESCRIBE THE CURRENT LANDSCAPE WITH
coming to mining as employment seekers, but as solution providers. REGARDS TO GENDER EQUITY IN THE MINING SECTOR?
The mining industry employs more men than women. Although the
INFLUENCE THE UPTAKE OF WOMEN IN MINING? DO YOU women employed do so in all the various levels of mining operations,

ANTICIPATE ANY CHALLENGES? the actual number of women employed is low and the instances are

more scarce the higher up the various chains of command. Women

Honestly, transformation cannot be imposed from outside, it has are consistently not being considered for most jobs or empowered for

to manifest from within. The mining charter is making great strides promotions. It’s still rare to find a female mine manager or CEO. Wage

towards broad-based economic inclusivity but that is not the rationale discrepancies continue to be an issue and women are still being paid


“The mining industry is still an all-boys club; we have
to tackle that image to entice more women into the
industry.” – Mabaso

Olebogeng Sentsho.

less than men for the same jobs. (Unfortunately) this status quo is not Aviona Mabaso.
unique to the mining industry, however it is more pronounced. 
Mametja Moshe.
INDUSTRY WHEN LOOKING TO INCREASE THE PARTICIPATION As more women continue to enter the workforce, companies in the >
OF WOMEN IN THE SECTOR? mining industry will want to compete with other industries to attract
The biggest challenge is probably the current economic climate which the best talent pool.
has seen us lose jobs to retrenchments. Coupled with a decrease
in exploration and therefore new mines, you can’t really expect an Not to mention that women are consistently outperforming their
increase in the number of jobs. We are just beginning to consider what male counterparts in educational institutions. Companies in the
changes mechanisation would do to those numbers. mining industry need to continue to create and implement diversity
and inclusion policies in collaboration with the women within their
Secondly, the mining industry is still an all-boys club; we have to organisations.
tackle that image to entice more women into the industry. This starts
with increasing female representation in management and executive

Their contribution is essential to developing diversity and
inclusion policies as well as strategies for implementing them.

Thirdly, the industry will need to continuously reassure women
that a mine is a safe, secure and hygienic work environment. This not
only includes providing dignified changing and ablutions facilities, but
it includes addressing housing solutions that accommodate families.
Lastly, a lot of men (and a few women) working in the industry must
be educated on a woman’s capabilities and encouraged to support
and mentor women.

Many men (and some women) will need to overcome their biases
and preconceived notions about women’s capabilities to take up jobs
in the industry.

Legislating compliance targets for women only goes so far, the
success of these initiatives requires all stakeholders to make a
genuine commitment to live up to those ideals and objectives.

Mining companies should strive to be leaders in the goal to diversify
our nation’s labour force to include more women.



Only 17% of women worldwide
operate in mining.
– Moshe

Recruitment policies and strategies must emphasise hiring women.© ISTOCK – agnormark WHAT ADVICE WOULD YOU GIVE WOMEN LOOKING TO START
It is imperative that the industry continues to o er more bursaries and © ISTOCK – cla raTHEIR OWN BUSINESSES IN THE MINING SECTOR?
internships for women in science, technology, engineering and maths Despite the fact that women make up around half of the world’s
(STEM). population, it is a pity that only 17% of women worldwide operate in
These e orts must be accompanied by a firm commitment to
mentor and support women to take their place in the industry. In South Africa, this figure is only 10%. In our view, this presents
MAMETJA MOSHE – CEO AT MOSHE CAPITAL an opportunity. However, it is important not to underestimate
AS THE FOUNDER OF MOSHE CAPITAL, HOW DIFFICULT HAS IT the complexity of mining and the importance of a good technical
BEEN TO LAUNCH YOUR OWN COMPANY AS A WOMAN? understanding of the sector.
In an increasingly inclusive world, women in the business eco-system,
like all start-ups, need access to funding. The funding gap for female The path of entrepreneurship is tough. It requires a lot of
entrepreneurs in sub-Saharan Africa is over $20-billion and over determination, self-belief and sometimes painful honesty about your
$300bn globally. business case. Do the work to understand how crowded the market is
for your product or service. Take care to ensure that your company has
The investments and corporate finance advisory services segment the right technical skills to di erentiate itself in the market.
has historically been dominated by males, as has the mining sector.
Being thorough is a crucial trait of successful entrepreneurs, but
It is fair to say that women in the field tend to be under greater woman entrepreneurs tend to wait until they have resolved every last
scrutiny than their male counterparts. detail before taking the leap.

At Moshe Capital, we gained traction by seeking to gain a track Take a calculated risk, be agile when required and don’t focus on
record as an investor and adviser through keeping our emphasis how male-dominated the sector is, rather focus on how excellent your
on consistently delivering quality service to our clients and being a product or service is.
strategic partner to our investee companies. We focus on excellence
in our advisory and investment in the mining sector – and we just WHAT DO YOU SEE AS AREAS OF OPPORTUNITY FOR WOMEN?
happen to be women. Since the 1990s, legislative barriers that prevented women from
advancing to senior positions, much less owning mining companies,
$300-billion have been removed.

The funding gap for female Mining Charter III promotes female shareholding and leadership
entrepreneurs globally in mining companies, which we view as an opportunity. We believe
women need to own their own mining assets.
Why not? We need more woman mine owners. In our experience of
the sector, women are good operators and we have no doubt that with
more women in ownership positions, the traditional male dominance
of the sector will evolve.

When we launched our business, we started with smaller advisory
mandates. Step by step, we kept our eyes on delivering successfully on
those advisory mandates to build a track record of providing excellent

As we built expertise, our mandates grew in scale. Our first
mandate was a capital raise for $5-million for a dual-listed coal and
energy player. Our latest deal that we closed was for £226m where we
advised Lonmin Plc on the all-share o er by Sibanye-Stillwater.

With the same attention to detail, we are now growing the
investment arm of our business. We are looking to invest in mid-cap
mining service and product businesses that we can acquire control
in, exponentially grow and create into global standard sustainable

We are also looking at participating in mining assets where we can £226-million
bring our expertise to partner with listed or unlisted companies. The
journey ahead of us is exciting and we look forward to partnerships Value of Moshe Capital’s latest deal
that will generate the next realm of Africa’s leading mining businesses.
a future regardless of age and gender. The construction and mining
LA-CHE VAN NIEKERK AND NEO PILANE – DIRECTORS AND industries o er a wide range of opportunities from which we believe the
SHAREHOLDERS AT WLMB women of today can benefit and a irm that their capability is equal to
La-Che van Niekerk: As a woman-empowered company it has become Neo Pilane: WLMB continues to equally develop women and youth
our duty to show the women and youth of today that everyone has and provide equal opportunities for both.

Van Niekerk: I’ve seen great determination and growth in the women
WLMB continues to equally develop women and
youth and provide equal opportunities for both. we have employed to date. They want to thrive, learn, grow and make
the di erence that they have been yearning for.

Pilane: We have seen a definite di erence in the approach of
managing sta and client relations; the so er approach is o en more
accepted by our sta and clients and has assisted in ensuring we can run
the company e iciently with increased productivity.


Van Niekerk: Given the status of being a junior company, the biggest
challenge is the constant need to prove ourselves. However we regard
this as a learning experience and are determined to make a di erence.

Pilane: Although some of the job descriptions for mining and
construction require strength, women are directed to positions suitable
to their capabilities, including development strategy. We try as best as
possible to mitigate any inherent issues or risks by implementing best-
practice solutions or technology-based solutions. ■

La-Che van Niekerk.

Neo Pilane.




Aviona Mabaso – Group Legal Counsel at Bauba Platinum

It is encouraging to see the positive integral part of these conversations and opportunities in this industry.
impact that President Cyril Ramaphosa’s implementation plans, we will have failed
inauguration has had on the growth ourselves by failing to include a significant This stops some women from even
prospects of our economy. Most portion of our population.
commendable is his 50% female cabinet. thinking about entering the industry, let
Last year, according to Statistics South Despite all the conversations we have
Africa (Stats SA), the population in South been having over the years, the inclusion alone actively seeking growth opportunities.
Africa was 57.7 million, 51% of which was of women and youth in this industry is still
female. lagging. The message they receive is that they are
Stats SA also noted that the women in
South Africa outlive men by an average of The Minerals Council South Africa not capable of being the preferred or right
six years. Young people (that is people under reported that in this country, women make
the age of 35) made up 35.7% of the total up only about 12% of the labour force and candidate.
population (that’s about 20.6 million people). about 15% of top and senior management in
Unemployed youth stood at 38.2%, that’s the mining industry. Not to mention that information about
almost eight million young people who were
unemployed, the majority being women. 26.6 million the jobs available on a mine rarely even
Last year McKinsey released a diversity
report that noted that gender and ethnic Number of people in reach women.
diversity correlated with profitability. SA under 35 years
Companies with a more diverse team Youth are constantly faced with the
performed above average. Female and youth representation in
Diversity in age, sex, ethnic and cultural management is imperative to identifying requirement to show prior work experience
backgrounds is imperative to the success barriers to the entry and success of women
and growth of any organisation. Women and and youth in the mining industry. for entry-level jobs. In this regard, I commend
youth bring new, fresh perspectives to any
organisation. It is disappointing to note that women our government for doing away with the
Management and executive teams that are by and large still being overlooked for job
are diverse perform better than those that requirement for work experience for entry-
aren’t diverse or inclusive.
By the way, in 2015 McKinsey released a level jobs (in state departments). We have to
report that stated that $12-trillion could be
added to the global gross domestic product invest in upskilling the labour force that we
by 2025 just by advancing women’s equality.
We heard a lot at the Junior Mining want.
Indaba about junior mining companies
and the challenges and opportunities. The So how di erent can the picture be?
new technologies and how that will help
revolutionise the industry, etc. I work at Bauba – we are a junior mining
I heard some mining stalwarts opine on
the implications of the new Mining Charter, company focusing on the mining of chrome
and give advice on how to successfully
navigate the junior mining sector. ore and the exploration of platinum group
Others spoke of their frustrations
surrounding regulatory approval timeframes metals (PGMs) and other minerals.
and access to funding. If we do not “keep
the same energy” in regards to the inclusion Since listing on the JSE in 2010, our main
of women and youth in this industry an
focus has shi ed from platinum exploration
towards the mining of chrome as a result

of the current economic climate and

persistently low PGM prices.

And actually our shareholders recently

resolved to change our name to Bauba


Our management team comprises of

individuals all under the age of 35. Our team

is 50% female, 50% black and 100% youth.

Our CEO, Nick van der Hoven, is 33 years old,

and our financial director is 34.

Now, before you start imagining a team

of “baby geniuses”, I must credit our board

of directors, who are themselves stalwarts

in the mining industry, and who ultimately

guide and mentor our young management


Our board is made up of executive and

non-executive directors who collectively

have an abundance of knowledge and

experience in the mining industry to help

us make Bauba Platinum a success. As >
such, they are to be commended for having

Invincible Valves (Pty) Ltd was established in 1982 and since has
grown to a medium sized enterprise located in Knights, Germiston
Invincible Valves prides itself on service excellent and exibility by
striving to enhance our customer’s bottom line.

Our 6,500m² facility in Knights is made up of 4,500m² under roof being
our stores and workshop. The facility is fully equipped to offer a
one-stop resource for valves and ancillary equipment which we transport

As an approved BBBEE Level 4 supplier to all major industries within
South Africa, we maintain expertise and experience across a
broad spectrum of industries and applications with a wide range of
products. We offer a comprehensive range of local and imported valves
and accessories for the mining, petro-chemical, power generation,
water, sewerage and general industries. We have agents in all major
centres around the country and service all four corners of the globe.

We offer an in-house rubber lining service for valves, pipes, ttings
and vessels which is utilized by many of the country’s major valve
manufacturers. In addition we offer complete service, repair and valve
reconditioning services for all types of valves.

Our Core Values:
We believe in treating our customers with respect. We grow through
creativity, invention and innovation. We integrate honesty, integrity and
business ethics into all aspects of our business functioning.

Our Mission Statement:
Build long term relationships with our customers and clients, to provide
exceptional customer services by pursuing business through innovation
and advanced technology.

Our Purpose:
To be a leader in the Valve Industry by providing enhanced services,
customer service and pro tability.

Our Vision:
To provide a quality service that exceeds the expectations of our
esteemed customers.

Invincible Valves is a proud supplier of quality valve products and
ancillary equipment backed by service excellence around the globe. It is
the combination of these values that allows us to form lasting business

If it’s not INVAL®, it’s not Invincible

Invincible Valves (Pty) Ltd 33 Shaft Road, Knights, Germiston
TEL: +27 (0) 11 822 1777 | FAX: +27 (0) 11 822 3666
EMAIL: [email protected] | WEB:


$12-trillion Empowering women of the available labour force will be devoid of
and youth is essential. any knowledge or experience or skills.
By advancing women’s
equality global GDP women on our mine is that they would prefer Our economy, our sector, cannot a ord
could rise to this black or navy blue PPE because sometimes for this transformation to take another 50
amount by 2025 we have unforeseen female emergencies that years, we simply do not have the luxury of
don’t translate well on khaki, or God forbid, that time.
this vision and entrusting us with such a white PPE.
mammoth task. The excuse that “there aren’t any
Or consider providing feminine sanitary qualified or competent women and youth”
The Bauba group holds a range of products to those women who work on is tired.
platinum group elements mineral rights with your mine. Most mining operations lie far
an inferred resource of 17.22 million ounces outside of the nearest town, and these items Firstly, unemployment stats are simply
and a conceptual exploration target range of may not be at hand, particularly onsite or too high and the opportunity lost is too
73.5 million ounces to 109.6 million ounces. underground. We cannot expect to retain precious. More importantly, it’s simply not
women in or entice women into the mining true. There may be more qualified men than
Our golden goose, the Moeijelijk Mine, is industry if we don’t create environments that women but that does not mean that there
a cash-positive chrome operation that was are conducive to a woman’s basic needs. are no qualified women. There seems to
purchased in November 2014 and sold its be no appetite to take on new labour force
first run-of-mine chrome ore in March 2015. A lot of people say women and youth are entrants (mostly youth) and upskill them
not being overlooked, but simply lack the for something, even if they hold formal
In 2018 we exported 204 494 tonnes required skills and knowledge. qualifications.
of chrome ore with an average Cr2O3
grade of 38.72% to China alone. Following I say it is not by chance or divine design Last year the top 100 Global Inspirational
the commissioning of our wash plant that men are the predominant labour force Women in Mining were named, and 16 of
in November 2018, we now produce on mines. No man is born with the skills and them were South African. Not to mention the
metallurgical, chemical and foundry grade knowledge to do any job on a mine. increasing number of youth that are carving
chrome concentrate. out their own seats at tables.
We merely created an environment
The empowerment of women and youth deliberately to cater for the intended Those are incredible feats and show that
is also particularly important in the mining workforce, that being men. the South African mining industry has a pool
industry because most of us operate in poor, of women and youth to pull it in the right
undeveloped communities where the main Think of the upskilling of women in the direction.
source of employment is the mine. United States during the Second World War,
jobs that were traditionally viewed as male If we stop limiting and restricting
Women and youth in these communities jobs were all of a sudden being carried out the potential labour pool in the mining
tend to be the sole breadwinners for their by women. We have an opportunity to upskill industry by empowering more women and
households (think “black tax” and “child- our women for all kinds of sectors without youth and if we can simultaneously create
headed households”). waiting for the men to go o to war (which, environments that are conducive to their
by the way, women are capable of doing success, then we can expand our capabilities
Empowering these women and youth and too). If we do not invest in our youth today and bring innovative, fresh ideas to the
giving them the means to financial freedom by e.g. taking on those with no experience mining industry. ■
will trickle down to the members of their for suitable entry-level jobs, we will end up
households. with an ageing labour force and the majority

This goal of transformation is not only
about empowering women and youth to take
up jobs in the mining industry, it’s also about
considering the needs of everyone when you
plan your mine.

Let me give you a basic example. Consider
your personal protective equipment (PPE):
although there are guidelines published, it
doesn’t stop there.

The feedback I have received from the


SAMIN NG We are now giving our readers and clients an
w w w. s a m i n i n g . c o . z a opportunity to take their news and advertising
online, in real-time through

ONLINE CONTENT. 300 x 250 px ADS
● Help build/strengthen your company’s brand.


● Expand your reach with various packaged o erings suited
to your company’s needs, such as bundling your advertising
with news/corporate pro les and/or a video online.

SA Mining, South Africa’s oldest mining magazine, has
been providing insight into the local, Southern African
and African mining space for 125 years.


© istock - m_a_n

Ilonka Moolman 011 280 3120 [email protected]

Noël van Breda 011 280 3456 [email protected]





Impact on African trade

By Gerhard Rudolph and Amy Bleazard of Allen & Overy

© ISTOCK – Apriori1

The African Continental Free Trade settlement procedures. One of the key questions relating to the The views expressed are the author’s own and do not necessarily reflect SA Mining’s editorial policy.
Area (AfCFTA) is a continent-wide While this is a significant political impending Investment Protocol, however, is
free trade zone for African states whether it will contain binding commitments
that have deposited instruments achievement, it does not mean that and, if so, the e ect this will have on foreign
of ratification with the African free intra-African trade will commence direct investment (FDI) across the AfCFTA.
Union Commission, as required by the immediately, as several protocols and legal
Agreement Establishing the AfCFTA (the instruments are still to be finalised. Article 4 (c) of the AfCFTA Agreement
AfCFTA Agreement). currently provides, among others, that state
To this end, a number of key Phase I parties must “cooperate on investment,
The AfCFTA Agreement, which has been issues remain to be negotiated, including intellectual property rights and competition
endorsed by 52 of the 55 AU member states, schedules of tari concessions, and rules policy” for the purpose of fulfilling and
promotes sustainable intra-African trade of origin. In addition, Phase II negotiations, realising the general objectives of the
by progressively eliminating tari s and which commenced in February 2019, are agreement.
non-tari barriers to trade, cooperating on focused on developing the legal texts and
customs matters and the implementation policy documents around three predominant If this is to be read as a peremptory
of trade facilitation measures, and seeking issues – competition, policy and intellectual provision that is binding on state parties,
to establish and maintain an institutional property rights. then the question must be asked as to
framework for the implementation and whether an obligation to include binding
administration of the AfCFTA, among other The focus of this article is the much- provisions in the Investment Protocol
things. anticipated Investment Protocol, the legal arises and, if so, what the e ect of this is on
text which is expected to be available for domestic legislation of state parties.
The agreement entered into force on 30 adoption in January 2021.
May 2019 – four months a er South Africa Within the South African context, these
ratified it – and was concluded under Phase THE INVESTMENT PROTOCOL AND questions are particularly complex given the
I of the AfCFTA framework, which included INVESTOR PROTECTION PROVISIONS uncertainty around international investment
negotiations surrounding the protocols on Negotiations around the Investment Protocol treaties following South Africa’s shi in policy
trade in goods and services and dispute have piqued the interest of both African and relating to bilateral investment treaties
foreign investors alike. (BITs), and whether the Investment Protocol
40 SA MINING JULY / AUGUST 2019 will align with the Protection of Investments
© ISTOCK – thitivong Act 22 of 2015 (PIA).

Historically, South Africa has encouraged
the conclusion of BITs as part of its foreign
investment strategy, entering into and
ratifying around 30 BITs between 1994 and

However, following the landmark case
Piero Foresti v The Republic of South Africa,
instituted during 2006, the South African


One of the key questions
is whether it will contain
binding commitments and,
if so, the effect on FDI across
the AfCFTA.

Gerhard Rudolph.

“ Amy Bleazard.

The AfCFTA Agreement promotes sustainable intra-African trade by
progressively eliminating tari s and non-tari barriers to trade.
– Allen & Overy

Department of Trade and Industry was Africa cancelling BITs, or letting them lapse, productive capacity and the development of
commissioned to conduct a full review into in an e ort to prevent foreign investors from small and medium-sized enterprises.
its BIT policy framework which resulted blocking domestic policy measures and
in a significant overhaul of its investment thereby avoid “damaging binding investment However, mindful that the AfCFTA seeks
policies. rules with far-reaching consequences for to encourage intra-African trade and create
development”. an economic zone that attracts both African
The Foresti case involved eight claimants investment and FDI, one has to ask whether
with similar interests who alleged that the In an e ort to respond to the resultant South Africa’s current attitude, and that
South African government breached certain investor concerns as to the protection of of a number of other sub-Saharan African
provisions of two separate BITs – one with investment in South Africa, the PIA was states such as Tanzania and Zambia, towards
Italy and one with the Belgo-Luxembourg enacted in 2015. foreign investment treaties and the PIA,
Economic Union. will align with the anticipated Investment
The PIA is a controversial piece of Protocol.
Briefly put, the claims were premised on legislation which has been broadly criticised,
the alleged expropriation of mining rights, in particular, for deterring rather than Further, if the Investment Protocol is,
which the claimants argued was a ected fostering FDI. in fact, binding on state parties, will South
by the promulgation of the Mineral and Africa be required to revise conflicting
Petroleum Resources Development Act The impact of this policy shi by provisions in the PIA or any other legislation
(MPRDA), coupled with the Mining Charter of government on FDI is particularly profound which is not seen to “cooperate” with the
13 August 2004. in the capital-intensive mining, resources general objectives of the AfCFTA Agreement
and energy sectors, where long-term policy and/or doesn’t align with the Investment
The expropriation contention was certainty and asset security concerns are key Protocol?
advanced on two bases. investor considerations.
The answers to these questions and
First, the claimants said the MPRDA had THE INVESTMENT PROTOCOL AND resultant impact on the South African mining
the e ect of transferring all mining rights into SOUTH AFRICAN POLICY/LEGISLATION sector will depend on a number of factors,
the custodianship of the state. Trade Law Centre (Tralac), a South African including the outcome of ongoing Phase II
public benefit organisation with expertise in negotiations, the government’s approach
Second, it was argued that the Mining trade governance across Africa, has stated to the Investment Protocol and how it pre-
Charter, by obliging mining companies that the AfCFTA Investment Protocol should empts the e ects that the AfCFTA will have
to divest ownership to previously be developed to facilitate quality FDI that on primary industries, such as the mining
disadvantaged persons, also breached the seeks to support the developmental needs industry.
BITs. of the state parties, but also allows domestic
policy space (or regulatory freedom) This will require appropriate national
The case was settled, but the South to determine the right kind of FDI, in rules, transparency, notification of national
African government was dissatisfied with accordance with the AfCFTA’s development trade measures and compliance monitoring,
the possibility that foreign investors might goals, for example, FDI that supports as well as increased access to information on
impact domestic policy using the terms of the implementation process itself. ■
existing BITs.

The matter ultimately resulted in South




ElEctric vEhiclE markEt © ISTOCK – PJ66431470

Set to Soar ByNelendhreMoodley
Valued at R1.6-trillion in 2018, the
electric vehicle market is set to result of cheaper battery technologies, wHat segments of industry does it
explode in the next few years, and countries’ emissions commitments, affect?
says GreenCape, a non-profit the EV market is expected to show rapid If the transition from ICE to EVs is not
organisation driving the growth growth. Africa’s automotive market is managed well, and if Africa doesn’t stay
of the green economy in Africa. SA Mining underdeveloped when compared to global ahead of the curve and tap into the growing
recently caught up with Khanyiselo Kumalo, EV leaders like China, Europe and North EV market in Asia, Europe and North
energy analyst at GreenCape, to chat about America. Research by Deloitte indicates America, then there will probably be job
the growth of the electric vehicle market that Africa’s underdeveloped nature is losses and these will not be limited to the
globally and in Africa. the very reason the continent possesses automotive industry. The EV market will also
ample room for growth and development have an impact on the liquid fuel dynamics
How important is tHe eV market to across the value chain. And while the (as oil demand is expected to decrease
tHe global economy and tHat of EV market is just emerging in Africa, we over time) and on government revenue.
africa? only need to look at the value of the ICE This is especially the case for SA. On the
Clean energy has become a priority market to see the potential. When we positive front, there is a balance of trade
for many leading countries and the consider the ICE market in South Africa, and macroeconomic benefit to the country
consensus on electric vehicles (EVs) revenue from the automotive sector was for increased uptake in EVs. Different jobs
being a key driver to achieving that is more than R500bn ($35.6bn) in 2017, with and new business models will emerge – for
the industry employing 900 000 skilled, instance, fuel companies potentially rolling
“rising. The EV market is also critical to semi-skilled and unskilled employees. The out charging infrastructure. There will also be
potential EV market here is about R500bn, notable impacts to meeting GHG and energy
sustainable economic growth. The global with opportunities for the entire vehicle security targets.
market for EV was valued at R1.6-trillion value chain from suppliers to battery
($118.9-billion) in 2018 with 783 000 producers, infrastructure installers and can you trace tHe growtH of tHe
units sold. With the decline in internal component manufacturers to name a few. eV market oVer tHe past fiVe years?
combustion engine (ICE) vehicles as a “ With the help of generous incentives and
an enabling policy environment, the EV
Innovative finance tools and government market has grown exponentially over the
assistance are needed. – Kumalo past five years. Cumulative EV sales reached
four million in 2018 with over 165 different

42 SA Mining JULY / AUgUST 2019

GreenCape’s first market intelligence
The potential value of the EV market in SA report on EVs was published in April
2019. It provides an overview of
models available. This number was projected is currently driven by climate-conscious the current EV market, and outlines
to reach five million in the first quarter of consumers who are able and willing to emerging investment opportunities,
2019. prioritise the cost to the environment when drivers, barriers and risks to those
purchasing a vehicle. We expect that EVs opportunities. The report is freely
The rate of growth is interesting. It took will become attractive to the emerging available from the GreenCape
more than five years for EV sales globally to middle and new middle income group when website alongside reports on the
reach the 1% threshold. And it took just over cost-comparable EVs with increased range renewable energy, energy services,
a year to move from the 1% to 2% global are made available to the SA market. And water, waste and sustainable
sales mark and six months to reach 3% sales. because the majority of public transport agriculture sectors.
In contrast, the SA market has seen a notable users are the poor and disenfranchised, the
decrease in sales from 2015 onwards. This electrification of public transport is where we products that aren’t fit for market, high
speaks to the need for a market step change foresee most commuters in the low income
for any significant growth to be recognised. bracket will gain access to this technology. import duties, and lack of policy certainty,
We are projecting a medium- to long-term
WHAT IS THE PROJECTED GROWTH OF timeline for any significant growth without skill and finance.
THE EV MARKET GLOBALLY AND FOR enabling government support and policy
AFRICA? certainty. In terms of products that aren’t fit for the
The EV mix is continuously changing, the
number of available models is increasing Taking the rest of Africa into account, market, cost is one constraint. EVs are also
and this is on the back of more automakers there is a big opportunity for uptake in the
making commitments to manufacture EVs 2/3-wheeled EV segments. The extensive not yet comparable to ICE vehicles within
from 2019 onwards. Growth is expected to roll-out of RE through microgrids presents
also increase and this is enabled by battery an opportunity for solar-powered charging a similar price range. In addition, even if
technology improvements and extensive infrastructure.
infrastructure network roll-outs. someone can get an EV in their price range,
We also foresee electrification of public ASSOCIATED WITH THIS MARKET? they might not find one that fits their lifestyle >
transport gaining traction. This is especially In South Africa there are a number of
true to buses and government transit fleets challenges which other emerging economies due to limited product choice.
as they demonstrate the best business are likely to also experience. These include
case for electrification. EV growth in SA





We need to upskill practising
Electric vehicles are subjected to 25% technicians to ensure the transition
import duties. – Kumalo towards electric mobility is possible.

High import duties are a constraint, not enough skills in the automotive market Khanyiselo Kumalo.
especially in SA. Currently electric vehicles and ancillary services sectors to adapt
are subjected to 25% import duties while to the growth of the EV manufacturing WHAT ARE SOME OF THE
buses and trucks carry a 20% duty. In section. We need to upskill practising OPPORTUNITIES ARISING FROM THE
comparison, ICE vehicles incur import duties technicians to ensure the transition towards DEVELOPMENT OF EVS FOR AFRICA?
of 18%. Electric vehicles are further subjected electric mobility is possible. This training There are three emerging investment
to 17% ad valorem (luxury tax duty) because is also important for first-level emergency opportunities in the EV market.
of the battery price pushing the overall cost responders, dealership and a ermarket 1. Local manufacturing of EVs for the export
of the vehicle into a luxury threshold. Total services as these sectors also play an
taxes on electric vehicles and hybrids is 42%, important role in a functioning transport and domestic market. This opportunity
which is significant. sector. is particularly attractive to greenfield
Policy uncertainty and a lack of policy Finally, a major obstacle – favourable 2. The opportunity to manufacture and/or
directives on local EV manufacturing finance terms for EV investments and project assemble electric bus components.
presents an investment risk. Until enabling development. In the context of all the other 3. Local production of lithium-ion batteries
policies are put in place that provide barriers, the risk for lenders is still high, (LIB) especially with Africa being home to
investors with peace of mind and inspire which results in short tenors of debt and high some of the raw materials needed in the
investor confidence, we will continue to see interest rates. This means that investors just battery chemistry.
a lack of investment and risk-taking in this don’t have enough equity to secure the debt
space. they need. We really need innovative finance ARE SA AND THE REST OF AFRICA
tools and government assistance that are SUITABLY POSITIONED TO TAKE
As we transition to an EV-led vehicle able to absorb some of the risks associated ADVANTAGE OF THE EV MARKET?
industry, we will need appropriate skills to with financing this nascent market. The African continent is well placed to take
facilitate market growth. There are currently advantage of the EV market. This is especially
true for most African countries faced with
© ISTOCK – Petmal the ongoing challenge of high fuel prices and
intermittent supply. Commodities such as
cobalt, lithium and manganese are some of
the raw materials used in cathode chemistry
of LIB and these are available in Africa. This
is but one way that Africa can take advantage >









Book your place now: or call 0203 640 8222




“There is opportunity for Africa to © ISTOCK – Petmal

produce lithium-ion batteries.

Distribution and Product Support by: Commodities such as cobalt, lithium and “
manganese are some of the raw materials
Me used in cathode chemistry of LIB.
– Kumalo
Download any QR reader/scanner from
the Google Play or Apple App Sore of the EV market. Of course, none of this will share of vehicle electrification being
come to fruition without clear policy and incorporated. SA is then le with no choice
ELB Promise legislation that will position the continent as but to transition towards EV manufacturing
a key contributor to the EV value chain and or run the risk of loss in the trade market
Right Right Right not just a dumping ground for banned ICE which would a ect the economy and job
Job Time Way vehicles from western countries. security in the automotive industry.

SA is well positioned to become a producer CURRENTLY UNDER WAY IN SA AND
South Africa and of EVs but we also need to be realistic in AFRICA.
Southern Africa understanding that this is not something An EV task team set up by the Western
that will happen overnight and that there Cape Government is focused on fostering are some factors that need to be considered: maturation and growth of the industry.
The aim is to set the tone and momentum
+27 (0)11 306 0700 The majority of the vehicles for EVs in the rest of the country. Despite
[email protected] manufactured in SA are for export markets. challenges, we are seeing more original
This is because SA does not have economies equipment manufacturers committing to
of scale to justify local manufacturing solely bringing EVs to the SA market. Potential
for the domestic market. There are also market entrants include Audi, Mercedes,
concerns that this market is getting smaller. BYD and Volvo. Global EVRT will be hosting
The trade agreements that SA has with the Africa’s first EV road trip from Johannesburg
European Union (EU), United States (US) and to Cape Town from 2 to 10 October. We
Southern African Development Community are also anticipating more charging
coupled with a cheap labour force and infrastructure being rolled out over the
political stability relative to other African course of the year by original equipment
countries are some of the factors that make manufacturers (OEMs) and potentially some
SA a suitable manufacturing destination. fuel companies.

Regions in the EU and US are already EVIA is an industry association that was
driving the uptake of EVs at a global level. set up to bring together key stakeholders
Concerns around urban air quality are across all spheres (government, industry
seeing restrictions being put in place on and academia) under the umbrella of
the sale of ICE vehicles and tighter fuel creating an enabling environment for the
regulations being implemented. All of which growth of SA’s EV market. ■
will not be possible without a significant

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