Implats considers mechanisation option

[LazyLion]

MECHANISING MINE IS BAD NEWS: UDM

Mechanising the Leeuwkop mine near Brits in North West is bad news for South Africans desperate for work, United Democratic Movement leader Bantu Holomisa said on Friday.

"The [platinum sector] strike has gone on for too long and inevitable retrenchments are looming," Holomisa said in a statement.

He said mechanising the new mine would affect nearby communities.

Holomisa urged the Association of Mineworkers and Construction Union (Amcu) and platinum mining bosses to continue negotiations to reach an agreement soon.

Workers at Impala Platinum (Implats), Anglo-American Platinum (Amplats), and Lonmin downed tools on January 23 to push for a basic monthly salary of R12,500.

They rejected a wage offer of up to nine percent. The companies, in turn, rejected a revised demand from Amcu that the R12,500 could be achieved over four years.

Talks to resolve the strike are being mediated by the Commission for Conciliation, Mediation, and Arbitration.

Earlier, Implats corporate relations group executive Johan Theron said Leeuwkop mine could become mechanised if Implats found it was more profitable that way.

"Mechanisation is one of the options we are looking at," he said.

"We will not take the project to the board for final approval if we are not able to prove that the mine will be profitable in future."

Leeuwkop mine would take another 10 years to build and in the meantime the company was weighing up all its options.

"We are doing a study and upfront work, but no decisions have been made yet. What we have to factor in is what labour costs will be like 10 to 15 years down the line."

He said historically labour-intensive mining had always been considered the lower risk and cheaper option. But this had changed in that past two to three years.

"As we do design work... it is clear that a mechanised mining operation is increasingly being seen as the lower cost, low risk option."

Mechanisation could be more efficient, improve safety, have a more profitable life span, and cost less, he said.


Source : Sapa /mar/jk/th/jje
Date : 28 Mar 2014 12:05

 

[dlk001]

Haha interesting, it's just that one of the "golden rules" of TOC is that cost per unit is a no-no. So if you're doing something and justifying it on per unit cost then you're probably doing something wrong. It's an interesting and almost counter-intuitive way of the way things should work. I'm surprised that you get people sabotaging a process that is so anti-cost cutting which is the short term myopic way most consultants try to derive value while not telling you what will happen in the long run.

Definitely. The justification is really to align the various processes in the mining and not focusing in the cost/unit. However, at a higher level, mining is judged by cost/ton vs revenue/ton.

 

[dlk001]

+1

Stop trying to compete with the third world, ffs. We have to compete with the first world.

By and large we are actually comparable with first world. Exception is deep level mining because first world does not mine at those depths. Most of our Gold/Platinum mining is deep level. There is no country which has fully mechanised deep level mining. South Africa is the only country extracting gold from deep level using mechanised equipment. e.g. Target Gold Mine and South Deep Gold Mine.

First world considers South Africa as the pioneers of deep level mining which is why they often recruit from South African mining skills.

South Africa considers First world as the pioneers of open pit, open cast and underground longwall mining which is why we often recruit from them in terms of mining skills.

 

[AlphaBravo]

Mechanisation was a hot topic at the recent mining indaba and this is the only way forward for most mines up in Africa. SA is just playing catch up.

In SA gold is mined at around $1200/ounce in mechanised mines that figure is around $750/ounce. Makes a big difference in profitability.

 

[Nicodeamus]

Mechanisation was a hot topic at the recent mining indaba and this is the only way forward for most mines up in Africa. SA is just playing catch up.

In SA gold is mined at around $1200/ounce in mechanised mines that figure is around $750/ounce. Makes a big difference in profitability.

The initial investment in mechanisation takes time to make back and for some of our mines it might not be profitable to go over if they don't have large lifespans left.

 

[Redeemed]

mechanisation has been overdue for a long time. We cannot expect to compete against the first world with a 18th century mining tradition.

That's because the old tradition allowed for Apartheid slave wages and a huge saving on labour costs. That's what these huge mining corporations were built on, inhumane exploitation of workers.

 

[Voicy]

That's because the old tradition allowed for Apartheid slave wages and a huge saving on labour costs. That's what these huge mining corporations were built on, inhumane exploitation of workers.

It wasn't all doom and gloom. There were some advantages to not going the mechanised route.

 

[Sly21C]

This website is very interesting, check it out!!! http://www.platinumwagenegotiations.co.za/

 

[Necuno]

Good News! We are giving you the R12,500.00 a month.
Bad News! 70% of you will be retrenched.

Or shoot them, the union and let those who want to work work?

 

[Compton_effect]

Mechanization in mining is a case of 'when', not if.
Underground mining is tricky, but pit mining - its already here. If I'd stayed at my old company, I would have been part of the first SA deployment of the AHS (Automated Haul System). Already running in Canada and Australia (And Chile - I think)
I sat in at least one presentation by a big mine where they stated it as the core of their Vision 2030 project. (Rumored to be 2020 post Marikana)

The thing is - we are screwed. Our Gold mines will not be able to compete against the new mines being opened up north. Same with Platinum.
South Africa will have to get more efficient, and fast, else new mines in the rest of Africa( and Madagascar) will marginalize us.