The modernisation imperative

To remain relevant, South Africa needs to modernise its underground mines, writes Leon Louw editor of the magazines African Mining and Mining Mirror.

To say that underground mining in South Africa is at a crossroads is a much-abused cliché. Yet, it is so close to the truth that the most ardent of writers stumble over their words to find an alternative phrase to describe the country’s worrisome situation. Most of the current anguish in South Africa centres around political and economic risk. Although the erosion of state institutions and a highly questionable regime are of grave concern, the fixation on issues unrelated to actual mining masks the real challenges that the South African mining industry faces. This is not to say that we should ignore the adverse effects of Zwane’s Charter III on a once proud mining nation. But maybe it is time to face the hard facts: South African underground miners, especially its gold miners, will not produce the ounces at the same rate and at the same margins it used to when the country was the world’s top gold producer of bullion, if they continue mining as they did 100 years ago.

Today we mine in a totally different, new and modern world. A lot has changed. The gold price is more volatile; labour, power, and fuel costs have increased exponentially; productivity has dropped significantly; government and communities are demanding more; and environmental responsibility has become almost as important as mining itself. In fact, the costs of compliance can now be regarded as a meaningful financial risk. These are, of course, global challenges.

Nevertheless, South African underground mines face additional, more complex problems. The remaining gold deposits (although in large reserve) are either low grade or occur at deeper and deeper depths, which make it extremely costly to mine. Our gold mines are already the deepest on earth, while South African platinum mines are notorious for its narrow, rolling seams and robust underground conditions. However, the fact that we have difficult underground conditions does not mean that these deposits cannot be mined profitably. All it means is that we need to change the way we think about mining. Thus, South African underground mining is indeed at a crossroads.

The options are obvious: modernise and adapt, or continue on the current trajectory and die a slow death. But in this lies a conundrum. To modernise means to invest large amounts of capital now, but gain substantial financial benefits in the long run. At a time when mining companies are tightening their belts and margins are tight, how does one justify the large expenditure on bells and whistles like new equipment, or artificial intelligence, when a mine is only trying to survive? Conversely, if a mine does not modernise, its survival is threatened and it will not be sustainable in the future. 

Mines of the future

Nick Holland, CEO of Gold Fields, is a big advocate of modernisation. Gold Fields’ South Deep Mine, 50km south-west of Johannesburg, holds the world’s second-largest gold ore body (after the Grasberg Mine in Indonesia). It is unfair to compare South Deep with other narrow-veined South African underground gold mines because of its unique and massive ore body, but the mine is the closest example to a modern, mechanised mine that one would find in South Africa.

According to Sven Lunsche, vice-president of corporate affairs at Gold Fields, the size of the ore body at South Deep allows for large-scale machinery to be used to extract and transport the ore. “South Deep is fully mechanised,” says Lunsche. “Although mechanised gold mining is a relatively new concept in South Africa, South Deep is making considerable progress in implementing the required developments and systems,” he adds. There is no conventional mining at South Deep, nor has there been any since Gold Fields acquired the mine in 2006.

 According to Holland, gold mines will have to fundamentally transform into “mines of the future” if they are to prosper in the long term. Holland presented his vision recently at the 120th anniversary of the Mining School of the University of the Witwatersrand in Johannesburg. “The gold mine of the future has to be set up, structured, and managed differently from what it is today if it is to remain relevant and value-adding to all its stakeholders. This will require a focus on four key areas: operating practices and technology, talent and leadership, partnerships with key stakeholders and industry partners, as well as governance,” said Holland.

Holland identified the key operational challenges confronting gold mining as: embracing digital mining, advanced analytics, and new software technologies; converting conventional mining practices to mechanisation and automation; improving the economics of low-grade and residual ore bodies; and embracing energy and water efficiencies.

“Optimising existing and new technologies will provide the solutions to these challenges, but adoption by the industry has been slow, particularly in developing countries. Mines in Australia, on the other hand, have been rolling out new technologies with a significant impact on costs, productivities, and safety. If mines in other countries want to be sustainable, they will have to follow this course,” said Holland.

According to Louise Steenekamp, director Energy and Natural Resources for southern Africa at Wipro, mining operations in Australia and Canada are miles ahead of South Africa in terms of modernisation and the ability to incorporate new technological solutions. “Although there are still several operations in Australia and Canada that mine conventionally, I think they are just a lot more receptive to new ideas, technologies, and mechanised mining. There are mines in these countries that are run completely from control centres and remote operating centres. They are definitely more open to new technology,” says Steenekamp.

Wipro is a global IT company with solutions for management information systems, enterprise resource planning (ERP), operational technology, and the integration of management and operational systems. According to Holland, ‘big data’ companies will play an increasingly key role in the mines of the future. A number of technology companies are working on software advances in mining, which can be grouped under the ‘big data’ heading, where data is captured by various sources, digitised, analysed, and finally leveraged for better decision-making. This has multiple applications for mines, such as geological mapping, geotechnical design, fleet tracking, and operator safety.

“We believe that such technologies will provide us with the edge to fundamentally change our cost structure and improve safety. Gold Fields has started embarking on this course of action: at our Australian mines, we collect vast amounts of data from a number of sources, such as sensors fitted on machinery and equipment, and drones that scan our vast tenements. This information is then used for a number of projects and applications, such as aerial magnetic surveying, remote fleet management, and remote loading, among many other applications,” said Holland.

 Technological transformation

“Technology is definitely going to become more prevalent in mining in the future. New mines are increasingly incorporating technology into their planning, construction, and operation, as they acknowledge that mines cannot be built like it used to in the 1980s,” says Steenekamp. She adds that technologies are being developed right now that will change mining fundamentally within the next five years, of which we haven’t even considered the consequences. One of these is 3-D printing. Although it is still too costly, and although its exact application has not been figured out yet, 3-D printing is set to enter the mining industry with a big bang. It could infinitely affect the supply chain ecosystem. Once a mine starts printing spare parts or new equipment, it will reduce production lead times, reduce downtime, and significantly extend the life of really old equipment. Link the 3-D printer to monitoring sensors on equipment, and you have a disruptor of gargantuan proportions. “There are people looking at deep space mining and to print their equipment in space, so the possibilities are actually scary; yet, so exciting,” says Steenekamp.

Closer cooperation with OEMs                 

A further feature of the mining industry’s technological transformation will be ever-closer cooperation with original equipment manufacturers (OEMs). These OEMs develop and operate best-of-class technologies and equipment at various levels of automation. “It makes sense for mines to contract OEMs to utilise their expertise. This is particularly critical in South Africa’s gold industry, where the next big mining drive will have to take place in ever deeper and dangerous conditions. Technologies such as remote pillar mining and raise boring will only be possible in cooperation with OEMs and technology companies,” says Holland.

Ironically, and even though South African mining companies lag their counterparts in Australia and Canada in terms of implementing modern technology, some of the best innovations have been developed by local equipment manufacturers of underground equipment. One such company, RHAM, is testing its innovative new load-haul-dumper (LHD) machines in several underground mines in the country. The company’s current test run at African Rainbow Minerals’ Two Rivers Platinum Mine near Steelpoort in Mpumalanga, has exceeded all expectations. According to Kevin Reynders, managing director of RHAM Equipment, current circumstances and mining conditions made it almost inevitable for OEMs and the mining industry to seek innovative solutions.

RHAM has, for example, looked at clearing development ends in hard rock underground mines where development ends have traditionally been cleared by means of compressed air-driven, rail-bound rocker shovels, known in the vernacular as boesmans. “This venerable machine has been the standard solution in the industry for more than 80 years,” says Reynders.

The use of the machine exposed the operator to many health and safety risks, and with these factors in mind, RHAM initiated the design and manufacture of the Mucking Loader, which the company describes as a “revolutionary advance in the art of clearing development ends”. Other than in the case of a rocker shovel, the operator of the Mucking Loader sits in a robust cabin that can handle all eventualities that the vagaries of underground mining operations may throw at it.

The Mucking Loader tackles the task of clearing a flat end in an entirely new and eminently logical way. A boom-mounted backhoe deposits the ore onto a flight chain (conveyor), which then pours it through a chute into the hopper. The Mucking Loader is driven by a 37kW electric motor, which is fed off a cable reel-mounted supply line. RHAM is now into its fourth decade of serving the South African mining industry, and Reynders promises a range of new and innovative technology in the future.

Pushing drilling limits

 A South African company that has made inroads into the international market is Master Drilling, a company based in the tiny town of Fochville, in the Gauteng province. From humble beginnings about 30 years ago, Master Drilling has grown into a global phenomenon in the drilling space. It continues pushing the limits of what is possible. After completing a successful test run of its radical horizontal raise boring machine in Petra Diamonds’ Cullinan diamond mine in Gauteng, there seems to be no stop to this technology-driven enterprise headed by CEO Danie Pretorius. “Our tailored technology solutions continue to meet the specific conditions and drilling requirements of our clients, unlocking value across the geographies, sectors, and commodities we operate in,” Pretorius said at Master Drilling’s interim results for the six months ended 30 June 2017.

Master Drilling recently shipped an exciting new machine with dual capability of blind shaft boring and raise bore drilling to the US. According to Pretorius, the North American market is anticipated to remain strong. In addition, the concept phase of the company’s Mobile Tunnel Borer got underway in September 2017. Pretorius says this machine will allow for continuous mining with no blasting as part of the process, significantly enhancing mining efficiencies. If ever there was a holy grail in hard rock underground mining, it would probably be continuous mining and no blasting. If this is possible, it will take modernisation and mechanisation to a completely new level. 

“We believe this is an area where substantial future growth will originate from,” says Pretorius. The Industrial Development Corporation of South Africa (IDC) recently confirmed partial funding for the first phase of Master Drilling’s Blind Shaft Boring System (BSBS) development. “The BSBS allows cost-effective and safe access to ore bodies at great depths and situated in hard substrate. With the entire operation conducted without the need for blasting, noise or fumes are no longer a feature of the drilling process and the environmental impact is minimal,” says Pretorius.

The rise of automation

If continuous mining is first prize in the modernisation race, then surely automation would be second. The difference is that automation has already been introduced. According to Brendon Cullen, automation and control product manager at technology solutions company RCT, the introduction of automation has probably brought about the most significant change in underground mining to date.

“It is now possible to remove operators from the cab of the machine and place them in a secure location, away from the working area, and they are still able to perform all the machine functions from the safety of an automation centre,” says Cullen.

Automated machines can tram faster and it removes the disparity between drivers, which in turn increases productivity. General machine wear and tear is significantly reduced and machine damage eliminated, reducing unplanned downtime, which further drives productivity and profitability.

According to Cullen, RCT’s automation centres consist of an operator chair, screens for visual relay, and remote control. “They can be custom-made to specific requirements, built into sections of a mine site, and even be adapted for portable use in the back of light vehicles,” explains Cullen.

This is all made possible with a reliable and secure communications network in place, which will support automation and the transfer of more data, bringing a myriad of profit-boosting benefits with it.

Several gold, manganese, platinum, and diamond mines across South Africa have implemented Johannesburg-based Atlas Copco’s automation technology and according to Thomas Mthimunye, regional business development manager URE at Atlas Copco, they are living the success. “Three diamond mines have automated their machines, with one of the mines planning full autonomy in 2020,” says Mthimunye.

“Automation technology is considered by investors, management, and engineers as the only way for mining operations to ensure a sustainable future. We strongly encourage the mining industry to embrace automation, as this technology enables customers to take control of their operations in a completely new way,” adds Mthimunye.

Automation technology facilitates machine operation and reliability and it improves hole accuracy on drill rigs, for example. “Functions such as tele-remoting enables remote line-of-sight control and operation of equipment from the safety of a control room, removing workers from hard, hazardous, and arduous work and reducing the risk of injuries and fatalities,” says Mthimunye.

Despite the proven success of automation technology, Mthimunye says there is still resistance to move away from manual operation, which he puts down to not being fully versed in all the benefits of this technology. “Unfortunately, automation is usually linked to a decreased workforce, while in fact the very opposite is true. It creates opportunities. While the technology is easy to use, it still requires highly skilled operators and technicians to operate the machines,” says Mthimunye.

This of course means upskilling of personnel and subsequent higher remuneration. Furthermore, ease of automation operation attracts women and young upcoming engineers to the mining industry. The older generation’s fear of technology is another challenge. Here education is key. “We need to show not only the simplicity of automation, but also the tremendous value-add of this technology,” says Mthimunye. 

Embracing a modern strategy

Whatever strategy mining companies decide to adopt in future, modernisation (in whatever way the term is defined) needs to be a part of that strategy. “We cannot continue mining the way we are at the moment,” says Navin Singh, manager of mining at the CSIR’s Natural Resources and the Environment department. The CSIR, in partnership with the Chamber of Mines and several associations and universities, is at the forefront of research and development to enhance and modernise the South African mining landscape. Singh plans to create a mining hub at the CSIR’s office in Melville and it promises to be an exciting development in the South African mining industry, with the emphasis solidly on the local South African manufacturing sector. The Mining Equipment Manufacturers of South Africa (MEMSA) plays a significant role in the development of local innovation and technology.

“We really need to understand what modernisation entails,” says Alastair Macfarlane, modernisation advisor at the Chamber of Mines of South Africa. Modernisation includes high-level activities like the Internet of Things (IoT), artificial intelligence (AI), and the Fourth Industrial Revolution, but it can also include infrastructure, health and safety, and optimising the way very old mines are operating,” says Macfarlane. “In other words, for conventional, old mines, modernisation would mean doing the job better. That means looking at people, processes, and technologies,” Macfarlane adds. These mines will probably never be able to mechanise or automate — the existing infrastructure is too much of a constraint.

However, Macfarlane refers to a “second class of mine” that lends itself to mechanisation, and where, in fact, mechanisation is well underway — Gold Fields of course being one. A third category of mine is the greenfields operations. These will be developed from scratch and will thus have very few constraints in implementing an automation strategy. Unfortunately, South Africa has not produced too many greenfield projects in the past 10 years, and there are hardly any new developments in the pipeline. South Africa thus need to modernise its age-old mines or those that lend itself to mechanisation. “We need to find continuous mining solutions or systems for hard rock mining applications that will allow us to mine 24 hours a day, 7 days a week, and 365 days a year, and most importantly, to mine the deposit selectively and prevent as much dilution as possible. That is going to require a lot of fundamental research,” says Macfarlane.

Not an easy task, but one that Singh is passionate about. “We are trying to find solutions from a South African base and creating opportunities for South African OEMs first and foremost,” says Singh. He adds that modernisation can also mean getting more from the same without necessarily introducing new technology. “By using energy and water more efficiently, for example, already has a significant impact,” says Singh. “But, whatever we do, we cannot continue mining like we are now,” Singh concludes.