Africa Mining – Page 172 – Republic of Mining

NEWS RELEASE: Ensuring a balanced and informed debate on conflict minerals: Global Witness’s response to Tim Worstall’s 23rd September piece on Forbes.com

October 2, 2013

http://www.globalwitness.org/

30th September 2013

Last week, Forbes.com published a piece by Tim Worstall in which he argued against the introduction of legally binding measures in the EU to tackle conflict minerals. The piece, titled ‘Global Witness’ Latest Silly Suggestion on Conflict Minerals’ argued for a voluntary industry-led scheme and suggested that the cost to business of implementing legally binding measures will be too onerous. Sadly, Forbes.com didn’t want to publish a separate article to present a different opinion to this one-sided piece. As such, we are publishing our full response below.

We need an informed debate to break the links between natural resources and conflict, not unhelpful rhetoric.

Right now, some of the world’s most brutal conflicts and human rights abuses are being funded by internationally-traded minerals and gems that enter the European market. Armed groups and violent security forces profit from the control of mines and trading routes in places like eastern Democratic Republic of Congo (DRC), Colombia, Burma, Zimbabwe and Central African Republic (CAR). Companies that list on our global markets buy these resources, often without regard for whether they are funding harm.

Silicosis claims and the gold mines: To settle or not? – by Sarah Evans (Mail and Guardian – October 1, 2013)

October 1, 2013

http://mg.co.za/ [South Africa]

A recent settlement between miners and Anglo American could be a precedent as the gold industry prepares for a looming silicosis class action suit.

Despite being a landmark case, the confidential nature of a recent settlement between Anglo American and silicosis sufferers means there is little legal precedent for future cases, at least in terms of financial compensation.

But the agreement has other implications: as the number of silicosis damages claims against the gold mining industry piles up, and in the face of a looming class action suit, out-of-court settlements could become the norm as mining companies try to avoid bank-breaking court rulings.

In the weeks to follow, the high court in Johannesburg will decide whether to collate three class action claims against 30 of South Africa’s gold mines.

This comes on the back of a landmark settlement between Anglo American and 23 silicosis sufferers, seven of whom died waiting for the case to be finalised. Their claim was instituted in 2004 and was due to go to arbitration in 2014.

Beneficiation lip service as hands-on-hips South Africa watches China usurp global ferrochrome edge – by Martin Creamer (MiningWeekly.com – September 27, 2013)

September 27, 2013

http://www.miningweekly.com/page/americas-home

South Africa preaches beneficiation but it is certainly not practising it in the chrome mining space. Instead, with its hands on its hips, it is watching the Chinese ascend to the top spot in ferrochrome, which forms the beneficiation baseline of the chrome-mining value chain.

South Africa has a mature chrome value chain, the 2010 socioeconomic benefits of which were 200 000 jobs and a contribution of R42-billion to this country’s gross domestic product (GDP). However, South African ferrochrome’s rapidly declining market share is putting 60 000 to 80 000 of those jobs at risk, along with more than half of that GDP contribution.

Driving this home last week was the MetalBulletin Event’s chromite and ferrochrome conferences in Johannesburg. Instead of at least maintaining the credence it constantly gives to local value addition, it is watching ferrochrome exports decline and raw chrome exports soar.

For decades, South Africans have been urging miners to refrain from exporting raw ore and to add value to it before it leaves the country.

Will silicosis be SA gold’s next big trial? – by Geoff Candy (Mineweb.com – September 26, 2013)

September 27, 2013

http://www.mineweb.com/

Wage negotiations may have concluded but South Africa’s gold sector still faces a number of challenges, not least of which is a looming class action suit.

GRONINGEN (MINEWEB) – Having only barely dispensed with the plummeting gold price, increasingly demanding shareholders and some of the tensest wage negotiations in memory, the South Africa’s gold producers were probably hoping for a little respite. But, instead, find themselves staring at the looming presence of a silicosis class action suit that seems to be growing inexorably larger with each passing month.

Right now, there are three separate class action matters pending against the country’s gold miners but, the three teams of lawyers have just applied to the courts to consolidate these various claims into a single one that will be defended by 31 companies, which include all of the country’s gold miners and their various operating entities as well as Anglo American South Africa and African Rainbow Minerals, who no longer operate gold mines but did so when some of the claimants contracted the lung disease in question.

It should be noted that Anglo American SA announced yesterday it has just settled 23 silicosis claims brought against it for an undisclosed sum and no admission of liability.

South Africa, Sweden to bolster mining relations – by Chantelle Kotze (MiningWeekly.com – September 26, 2013)

September 26, 2013

http://www.miningweekly.com/page/americas-home

JOHANNESBURG (miningweekly.com) – While there are differences between the mining industries in South Africa and Sweden, mining forms the backbone of both countries’ economies and, therefore, knowledge-sharing in this field can be of great importance in terms of developing a better understanding of safety, skills and sustainability challenges in their respective mining environments.

This was highlighted by Ambassador of Sweden to South Africa Anders Hagelberg, at the Safety, Skills and Sustainability in Mining conference, in Johannesburg, on Thursday. The conference focused on how the efforts to improve safety, develop skills, facilitate longevity and sustainability, as well as increase profitability and efficiency in the mining sector.

It aimed to foster profitable and sustainable business, lower accident rates, better occupational health, lower environmental impact, positive social impact and technology, leadership and methodology sharing between the two countries.

The conference also marked the establishment of the Swedish–Southern African Mining Initiative, which aims to create a platform for knowledge sharing and networking between Swedish and South African mining role-players.

The floodgates open: Anglo-American settles mineworkers’ silicosis claims – by Rebecca Davis (Daily Maverick/South Africa – September 26, 2013)

September 26, 2013

http://www.dailymaverick.co.za/

On Wednesday it was announced that Anglo-American South Africa would pay 23 former mineworkers undisclosed amounts to settle claims brought against the company after the workers contracted silicosis. The mining house remains adamant that this is not an admission of liability. But lawyers for the mineworkers are hopeful that the settlement may pave the way for payouts for silicosis victims across the industry.

Silicosis is a lung disorder caused by inhaling bits of silica, a mineral found in sand and rocks, over an extended period of time. Silica dust particles can make tiny cuts on the lungs, creating scar tissue which makes it more difficult to breathe. It’s a progressive condition, and sometimes it can come on up to ten years after exposure to silica. People who are most at risk for developing the condition are those who work with sand, rock or quartz, in industries like construction, demolition, or mining.

The South African government has recognised the problem of silicosis and committed to “significantly” reducing its prevalence by 2015 and eliminating it entirely by 2030. It’s a particular public health issue in South Africa because exposure to silica dust increases the risk of TB.

Anglo American SA reaches settlement with silicosis-stricken miners – by Agency Staff (Business Day – September 25, 2013)

September 25, 2013

http://www.bdlive.co.za/

A SETTLEMENT between Anglo American South Africa and former miners who had contracted silicosis while working for the company benefited all parties, the company said on Wednesday.

“Anglo American South Africa announces that it has concluded an agreement which resolves fully and finally 23 stand-alone silicosis claims, instituted against it between 2004 and 2009,” the company said in a statement. “The settlement has been reached without admission of liability by Anglo American South Africa and the terms of the agreement remain confidential.”

The case was brought by 23 miners, 18 of whom had worked at Anglo’s President Steyn mine in the Free State. They claimed they contracted silicosis and silico-tuberculosis while working for the company up to 1998.

Anglo American South Africa executive director Khanyisile Kweyama said: “Anglo American South Africa believes that agreeing to settle this long-standing litigation is in the best interests of the plaintiffs, their families, Anglo American South Africa and its wider stakeholders.

Locals up in arms over big new [Canadian platinum] mine – by Schalk Mouton (Sunday Times – September 25, 2013)

September 25, 2013

http://www.timeslive.co.za/ [South Africa]

Community members in several villages accuse Canadian mining group Ivanhoe Mines of attempting to shove them aside to make way for its Platreef mine.

Ivanplats, an Ivanhoe subsidiary, is prospecting around the villages of Kgobudi, Magongoa, Mzombana and Tshamahansi, where it has discovered a massive reef with inclusions of platinum, palladium, gold, rhodium, nickel and copper.

The company, which plans to establish a highly mechanised underground mine, has applied for a mining licence. The mine is the second that mining companies intend to open to exploit the 30km-long reef. The first is Anglo Platinum’s Mogalakwena.

But the community is angry. “They will fight,” said Sylvester Masenya, a Mzombana resident. “They are angry but they can’t do anything.” Eliphas Molwatsi, chairman of the Mokopane Interested and Affected Community organisation, claimed community members had been assaulted, bribed and intimidated into signing documents stating that they agreed to the establishment of the mine.

Hardship a fact of life in platinum belt – by Jana Marais (Business Day – September 22, 1023)

September 23, 2013

http://www.bdlive.co.za/ [South Africa]

DRIVING around Rustenburg’s central business district, one sees them everywhere — men in old mining overalls and women sheltering from the North West sun behind pieces of cardboard reading “Work wanted”.

Surrounded by some of the richest known mineral deposits in the world, Rustenburg — now better known for last year’s violent strikes and the police shootings of miners at Marikana than its platinum wealth — has seen an influx in residents in recent years.

People have been flocking to the area hoping for jobs on its mines. But for most, getting a job will remain a dream.

Those who are lucky enough to have employment are under increasing pressure as companies resort to cutting jobs, while rising prices of basic foodstuffs and paraffin make it more difficult to support their families.

While mineworkers earn relatively high wages in the South African context, they support on average eight to 10 people, often extended family living in other parts of the country.

Biting the hand that feeds it [South Africa mining amendments] – by Chris Barron (Business Day – September 22, 1023)

September 23, 2013

http://www.bdlive.co.za/ [South Africa]

CHAMBER of Mines boss Bheki Sibiya says nobody should be under any illusions about the impact that proposed mining law amendments will have on the industry and South Africa.

Public hearings on the amendments ended this week, leaving an overwhelming sense of approaching disaster. Mr Sibiya, who in three years as CEO of the chamber has impressed with his measured, thoughtful but frank assessments of the challenges facing the industry, says this could be the biggest so far.

The crux of the amendments being pushed through by the government in the teeth of detailed submissions by the mining industry is that they will empower the minister to intervene in all sorts of issues from pricing to ownership rights.

The immediate consequence is that “quite a number” of marginal mines will close, says Mr Sibiya. Projects that are at the prospecting stage will be suspended, thousands of jobs will be lost and investors will not invest.

“Mining is long term. Once one is not so sure about one’s rights in the long term, one would rather say let’s cut our losses now. This is what investors will do.”

Conflict Minerals: The Price of Precious – by Jeffrey Gettleman (National Geographic – October 2013)

September 23, 2013

http://ngm.nationalgeographic.com/

The minerals in our electronic devices have bankrolled unspeakable violence in the Congo.

The first child soldier pops out of the bush clutching an AK-47 assault rifle in one hand and a handful of fresh marijuana buds in the other. The kid, probably 14 or 15, has this big, goofy, mischievous grin on his face, like he’s just stolen something—which he probably has—and he’s wearing a ladies’ wig with fake braids dangling down to his shoulders.

Within seconds his posse materializes from the thick, green leaves all around us, about ten other heavily armed youngsters dressed in ratty camouflage and filthy T-shirts, dropping down from the sides of the jungle and blocking the red dirt road in front of us. Our little Toyota truck is suddenly swarmed and immobilized by a four-and-a-half-foot-tall army.

This is on the road to Bavi, a rebel-controlled gold mine on the Democratic Republic of the Congo’s wild eastern edge. Congo is sub-Saharan Africa’s largest country and one of its richest on paper, with an embarrassment of diamonds, gold, cobalt, copper, tin, tantalum, you name it—trillions’ worth of natural resources. But because of never ending war, it is one of the poorest and most traumatized nations in the world.

South Africa’s raw chrome exports soar as ferrochrome edge is lost – by Martin Creamer (MiningWeekly.com – September 20, 2013)

September 20, 2013

http://www.miningweekly.com/page/americas-home

JOHANNESBURG (miningweekly.com) – South Africa’s long-standing position as the top global ferrochrome producer is being lost and the export of raw, unbeneficiated chromite ore is on the rise from this country.

Heinz Pariser Alloy Metals and Steel Market Research director Dr Gerhard Pariser, who addressed the MetalBulletin Event’s chromite conference in Johannesburg this week, says that South Africa’s export of ore is rising sharply and its export of ferrochrome is declining.

This is completely counter to South African government policy, which promotes the beneficiation that ferrochrome embodies. “To put it in a very simple way, Africa is supplying and China’s buying,” says Pariser.

The local production of ferrochrome creates five times more value in the South African economy that chrome ore extraction and three times more jobs. For every ton of ferrochrome exported, R9 000 is put into South Africa’s gross domestic product (GDP) compared with only R1 600 for every ton of ore exported.

Inquiry unearths police cover-up in South African Marikana mine massacre – Geoffrey York (Globe and Mail – September 19, 2013)

September 19, 2013

The Globe and Mail is Canada’s national newspaper with the second largest broadsheet circulation in the country. It has enormous influence on Canada’s political and business elite.

JOHANNESBURG — An inquiry has found shocking evidence that South African police have lied and falsified documents to cover up the truth about their killing of 34 protestors at the Marikana platinum mine last year.

The explosive revelation of a police cover-up in the “Marikana massacre” has forced a halt to the official inquiry. The commission announced on Thursday that it is shutting down its public hearings temporarily while it investigates the cover-up.

The inquiry has already heard disturbing evidence that the police hunted down and killed fleeing protestors even after a first clash had ended. It also heard testimony that the police planted guns next to the bodies of dead miners in an attempt to justify the shooting.

The cover-up began to unravel last week in testimony by Duncan Scott, a lieutenant-colonel in the South African Police Services (SAPS). He agreed to give the inquiry a computer hard drive with videos and photos from the scene of the Marikana killings. The inquiry also obtained thousands of pages of police documents that it had not seen before.

New business venture aims to transform global ferrochrome business – by Brendan Ryan (Business Day – September 18, 2013)

September 18, 2013

http://www.bdlive.co.za/ (South Africa)

DUBAI-based Russian businessman Alibek Issaev has teamed up with South African businessman Abbas Moti to develop a low- and medium-carbon ferrochrome smelter near Rustenburg that they claim will transform the ferrochrome business.

Mr Issaev is taking a 50% stake in private South African company FerroChrome Furnaces (FCF), which is controlled by the Moti family for an undisclosed amount.

The plant is at the commissioning stage and the aim is to boost production of low- and medium-carbon ferrochrome to 420,000 tonnes a year over the next 24 months, targeting a business that is dominated by ferrochrome producers located in Kazakhstan and Russia, in particular Eurasian Natural Resources Corporation.

Also involved in the deal is former Sentula Coal chairman Sir Sam Jonah. According to FCF spokesman Ashruf Kaka, Sir Sam is the nonexecutive chairman of FCF but has no business stake in the transaction and is only involved because of his long-standing friendship with the Moti family.

Zambia’s economy set to grow by 8.1% in the next few years – by Zandile Mavuso (MiningWeekly.com – September 13, 2013)

September 13, 2013

http://www.miningweekly.com/page/americas-home

The completion of major copper mining projects in Zambia next year is expected to contribute to economic growth of 8.1% from 2014 to 2016, advisory firm KPMG states.

“Copper production in the country peaked in the 1970s at 700 000 t and gradually declined to 255 000 t by 1998, as a result of depressed prices and under- investment in the then State-owned industry. However, as copper production soars on the back of the completion of major projects and also because of the development of the new Trident mine, operated by Canada-based mining company First Quantum Minerals (FQM), Zambia is set to be at the peak of copper production once again,” says KPMG senior partner in Zambia Jason Kazilimani, Jr.

FQM reports that one of its major projects, the Kansanshi mine, has under- gone several significant expansions – the most recent being a smelter that is currently being built. It is estimated that the smelter will produce 300 000 t/y of treated copper concentrate. Before this new development, the mine’s initial production capacity was 110 000 t/y of copper.

By 2015, the yearly production should reach about 400 000 t of copper, which is a major achievement that will ensure the mine reaches it one-million tons of total copper production by 2017.