• Pages
  • Editions
01 Cover
02 Welcome Letter / Sections
03 Index & Interview Directory
04 Section 1: Introduction
05 The Road to Recovery
06 ABSA Group Interview
07 PwC Interview
08 Regional Trends
09 Sustainability & ESG Gaining Momentum
10 SRK Consulting Interview
11 Nafasi Water & ZN Geo Services Interviews
12 Section 2: Production, Development and Exploration
13 Precious Metals
14 Gold Fields Interview
15 Harmony & Pan African Resources Interviews
16 Base and Energy Metals
17 Lepidico Interview
18 Trevali Mining Interview
19 Orion Minerals Interview
20 Vedanta Zinc International Interview
21 Kumba Iron Ore Interview
22 Diamonds
23 Lucara Diamond Interview
24 Debswana Interview
25 Section 3: South Africa
26 South Africa
27 Ministry of Mineral Resouces and Energy SA Interview
28 Minerals Council SA Interview
29 Seriti & Exxaro Resources Interviews
30 NSDV & ENSafrica Interviews
31 Insights on South African Mining Industry's Health
32 Section 4: Namibia
33 Namibia
34 Chamber of Mines Namibia Interview
35 RMB & Standard Bank Namibia Interviews
36 Walvis Bay Salt Holdings Interview
37 Insights on Namibia as a Mining Investment Destination
38 Section 5: Equipment and Services
39 The Journey to Modern Mining
40 Murray & Roberts Interview
41 Kal Tire Interview
42 Eazi Access Interview
43 METC Engineering Interview
44 Insights on Digital Mining Revolution in Africa
45 MEMSA Interview
46 Fabchem Mining Interview
47 Insights from Local Manufacturers
48 Energy
49 juwi Interview
50 Engie Impact & Vivo Energy Interviews
51 Howden Interview
52 Section 6: Sponsored Company Profiles
53 Trevali Company Profile
54 Murray & Roberts Company Profile
55 Concluding Remarks
56 Credits

Regional Trends

Adapting to the new norm

The pandemic will likely dampen export performance in the region given its trade relationships and interconnectedness with China, the US and the EU, as lockdowns had a severe effect on supply chains, trade and logistics channels. “The pandemic has proven that having product flows to the marketplace is key to success and long lead times will no longer be acceptable in any territory,” commented Justine Stubbs, managing director of Axis House, the Johannesburg-based global supplier of reagents and technical services to the mining industry. “This has made us review our position in some of our newer territories and we aim to stock products in-country or form partnerships with local manufacturers to reduce lead times.”

Spencer Eckstein, director and business development manager at Ukwazi, a South African based mining services provider with operations across the SADC region, concurs: “Increasing commodity prices have created an environment where mining companies are more willing to take investment risks,” he explained.

Nonetheless, physical presence on the mine sites has been limited, and some mines such as Menar’s assets in South Africa, Debswana and Gem Diamond’s in Botswana, Weatherly’s Tschudi copper mine in Namibia and Vendanta’s Skorpion zinc mine in Namibia were placed on care and maintenance or decreased their production between Q1 and Q2 of 2020. “Our mining operations stopped with the exception of our iron ore mines, where authorities allowed us to mine under stringent protocols which we adhered to successfully,” confirmed Andries Van Heerden, CEO of JSE-listed Afrimat, the operator of the iron ore assets Demaneng and Jenkins.

Gold Fields’ South Deep was also placed on care and maintenance for the first four weeks of Q2 2020 in compliance with government restrictions, and lost approximately 32,000 oz due to Covid related stoppages in 2020, according to Martin Preece, executive vice president of Gold Fields in South Africa.

The extent and depth of the spread of the Covid virus’s second and third waves over the course of 2021 will determine the region’s growth trends for 2021 and 2022. However, the mining industry is unlikely to witness any major slowdowns as remote operations and exemptions from lockdowns will facilitate its performance. Metal prices are also expected to be favourable: “The combination of the commodity demand and price forecast that we are currently experiencing indicates a positive future for the African mining industry,” confirmed Shirley Webber, coverage head of natural resources and energy at ABSA Group, one of Africa’s largest diversified financial services groups with a presence in 10 countries across the continent.

“In the mining industry, some employees cannot work remotely and the industry had to get creative in developing and applying policies as not to be seen as discriminatory.”

Lizle Louw, Partner, Webber Wentzel

As a result of closures and lockdowns, service and equipment providers had to be creative to carry out scheduled maintenance trips, training, sample gathering, aftersales and delivery. For example, Evolve Mining was working on an inspection for an iron mine which it was forced to conduct fully virtually and remotely using drones. “A 3D model was built using the data from the drones, which left our geologists mesmerized due to its level of detail and accuracy, and allowed them access to the high walls, which would not have been obtained through traditional on the ground inspection,” elaborated Trevor Garden, CEO, of Evolve Mining and African Mining and Crushing (AMC). “It also allowed us to save thousands of man-hours in travel as each individual was in the comfort of their home office.”

Alternatively, the South Africa Capital Equipment Export Council (SACEEC), which relies on trade shows and face-to-face interactions to promote South African equipment globally, was forced to adapt under CEO Eric Bruggeman’s leadership. “SACEEC was one of the first councils to offer an interactive webpage. Within two months, we were able to put our members in front of all their clients on a virtual platform that is still running today,” he said.

The pandemic redefined working culture and labour dynamics across the world. “Post-pandemic, I see us continuing with remote work via digital platforms considering the considerable cost savings and time savings of interacting with clients virtually,” explained Frank Beerthuis, managing director of Vermeer Equipment Suppliers, the exclusive distributor of Vermeer branded equipment throughout Sub-Saharan Africa. “Depending on the client requirements, we would want to continue our day-to-day interaction virtually. However, we will still conduct our product support, operator training and service activities face-to-face and on-site.”

There emerged some winners, such as South African family-owned crane supplier and manufacturer Condra Cranes, known for deliveries in record-times, which made it competitive relative to suppliers from abroad that were facing delays. “The reason our equipment has been so successful in the current sales environment, which is difficult, is partly due to the recent boom in resource prices. The mining industry is trying to move mineral commodities as fast as possible while the prices are strong,” explained Kyle Kleiner, sales director at Condra Cranes.

“Our mining operations stopped with the exception of our iron ore mines, where authorities allowed us to mine under stringent protocols which we adhered to successfully.”

Andries Van Heerden, CEO, Afrimat

Another positive impact has been the acceleration of the adoption of technologically advanced automated solutions in a traditionally conservative industry that was forced to operate remotely to a large extent. “In the past, mines might have focussed on the risks of having remote access to a site, but now it has become a necessity,” confirmed John Manuell, local division manager of ABB. “Post-pandemic mines will continue on this digitalization trend as the huge benefits of remote operations have become apparent.”

Overall, the Southern African mining industry withstood the external pressures presented by the health crisis and benefited greatly due to the surge in commodity prices, which has renewed appetite for exploration across the region and will positively impact production in 2021. As a result, the region is forecasted to witness economic growth of 3.1% in 2021, according to the IMF.

Images courtesy of Kumba Iron Ore and FLSmidth

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