Pip - September 2012 (Second Edition)

SEPTEMBER 2012
Picture by Chief Photographer Duane Daws
Supplement September, 2012
Medupi power station
PROJECT INDEX
EnGineerinG projectS 222
Electricity 39 Eskoms Ingula pumped-storage scheme 4 Eskoms Kusile power plant project 56 Eskoms Medupi power station project 78 Eskoms return-to-service projects 9 Renewable Energy Department of Renewable Energy Independent Power Producer Programme rst window Department of Renewable Energy Independent Power Producer Programme second window Industrial Projects Sephaku Cement projects Petrochemicals and Chemicals Omnia Holdings nitric acid complex PetroSAs Project Mthombo Transport and Logistics Sanrals Gauteng Freeway Improvement Project Transnets Durban port upgrade 1012 11 12 1314 14 1517 16 17 1820 19 20 Diamonds 3031 Debswanas Cut 8 project 31 Gold 3235 Gold Fields South Deep gold mine expansion project 33 Witwatersrand Consolidated Gold Resources Bloemhoek gold project 34 Witwatersrand Consolidated Gold Resources De Bron-Merriespruit gold project gold project 35 Iron-Ore 3639 3738 Assmangs Khumani iron-ore expansion project 39 Kumba Iron Ores Kolomela iron-ore project Other Mining Sectors Discovery Metals Boseto copper project Kalahari Resources Kalagadi manganese project 4043 41 4243
MininG projectS
2350
Coal 2429 Beacon Hill Resources Minas Moatize coal project 25 Exxaro Resources Grootegeluk Medupi expansion project 26 Resource Generations Boikarabelo coal project 27 Rio Tinto Mozambique Coals Benga coal project 28 Rio Tinto Mozambique Coals Zambeze coal project 29
Water 2122 Trans-Caledon Tunnel Authoritys Olifants River Water Resources Development Project Phase 2 22
Platinum 4450 Royal Bafokeng Platinum and Anglo American Platinums BRPM 45 North Shaft Merensky Phase 3 project Royal Bafokeng Platinum and Anglo American Platinums Styldrift Merensky Phase 1 project 46 Impala Platinums No 16 Shaft project 47 48 Impala Platinums No 17 Shaft project Tharisa Minerals Tharisa chromite and platinum expansion project 49 Wesizwe Platinums Bakubung Platinum Mine project 50
Need for State to play counter cyclical project role

With the private sector in a period of constrained project growth, it is good that the State is prepared to enter the fray with its project programme. In this way, there is a semblance of project balance and supply and demand forces are kept on a more even keel. Welcome too is the shift by the South African government away from what was a consumer-led growth trajectory to one that is increasingly balanced by a recovery in the productive sectors. Over the coming three years, some R845-billion has been budgeted for public infrastructure projects. Because of its lack of capacity, the State should not shy away from engaging private-sector capacity in its infrastructure implementation ambitions. Important frameworks that have the potential to help achieve project realisation include the National Development Plan, the Presidential Infrastructure Coordinating Commission (PICC) framework for the delivery of 17 strategic infrastructure projects (Sips) and Finance Minister Pravin Gordhans multi-layer approach to funding infrastructure. Gordhan has stressed that not all the projects will be directly government-funded. Sips spans the big-ticket transport, energy, water, telecommunications and public works items and it is important that the door is opened for the private sector to assist government in its PICC and Sips roll-out. The National Development Plan is right to call for the urgent stimulation of mining and energy investment and foresee South Africas global mineral deposit position providing an economic growth opportunity of 3% to 4% a year. Among the central constraints are electricity shortages and infrastructure weaknesses, especially in heavy-haul rail services, ports and water. That puts the ball back in the government court and the degree of urgency is emphasised by the unravelling of South Africas once-proud ferrochrome industry, as a direct result of electricity issues. With the lifting of the shale gas moratorium, the way is now open for South Africa to follow the lead of North America in adding gas to the countrys energy mix, provided the overall economic and environmental costs and benets outweigh those associated with South Africas dependence on coal. The plan also advocates a search for offshore natural gas resources and wants coal-bed methane gas opportunities to be taken up, along with underground coal gasication options. Hopes are also rising for the continent of Africa to begin reaping a demographic dividend, courtesy of its young and rapidly growing workforce and its declining dependence ratio, and, on the global front, projections to 2025 point to cities around the world constructing the equivalent of the entire land area of Austria 80 000 km2 in residential and commercial oor space, requiring $80-trillion in investment, says Anglo American CEO Cynthia Carroll.
Martin Creamer Publishing Editor
Projects in Progress 2012

Copyright Creamer Media (Pty) Ltd
The material contained in this report was compiled by Sheila Barradas and the Research Unit of Creamer Media (Pty) Ltd, based in Johannesburg, South Africa. The information contained in this report has been compiled from sources believed to be reliable, but no warranty is made to the accuracy of such information.
Projects IN Progress 2012
INDUSTRIAL PROJECTS
Electricity Renewable Energy Independent Producer Projects Industrial Projects Petrochemicals and Chemicals Transport and Logistics Water
Source: Creamer Media Source: Knight Pisold
2 Projects IN Progress 2012
Electricity
South Africas electricity-generation strategy from 2010 to 2030 is contained in a Department of Energy document the Integrated Resource Plan. The plan includes 14 000 MW of so-called committed build and 45 637 MW of new build options. Together with the countrys existing capacity, less the capacity that will be decommissioned in the period, the committed and new-build projects will contribute to a total system capacity of 89 532 MW in 2030. About 45.9% of the total will be sourced from coal-fired facilities, which will have a total capacity of 41 071 MW in 2030. This includes State-owned power utility Eskoms Medupi (4 800 MW) and Kusile (4 800 MW) power stations, which are currently under development, and the return-to-service of three coal-fired stations Camden, Grootvlei and Komati, which together have a capacity of 3 800 MW. While significant new electricity-generating capacity is being brought on stream by the baseload coal-fired projects being pursued by Eskom, these projects have long lead times. The utility, there, had to boost its peaking capacity in the short term to minimise blackouts. One such peaking capacity project is the Ingula pumped-storage scheme, which is expected to have a total capacity of 1 332 MW. The plants will only be used when the supply-demand balance is very tight.
Source: Knight Pisold
Electricity
ESKOMS INGULA PUMPeD-STORAGe SCHeMe
Name and Location Ingula pumped-storage scheme project, on the border between the Free State and KwaZulu-Natal (KZN), South Africa. Client Eskom. Project Description The Ingula pumped-storage scheme, located within the Little Drakensberg mountain range, 23 km north-east of Van Reenens Pass, will comprise an upper dam (Bedford) and a lower dam (Braamhoek). The upper reservoir site is located in the Free State and the lower in KZN. The escarpment forms the border between the two provinces. The distance between the upper and lower reservoirs will be 4.6 km, with an elevation difference of about 470 m. The dams will be connected by underground waterways, through an underground powerhouse complex, which will house four 333 MW pump turbines with a total capacity of 1 332 MW, a machine hall, a transformer hall and associated tunnels, shafts and caverns. The twin waterways, consisting of part concrete and part steel-lined headrace tunnels, pressure tunnels and shafts, will link the upper reservoir with the pump/turbines. Steel-lined extended draft tubes and a single concrete-lined tailrace tunnel will connect the pump/turbines to the lower reservoir. The upper reservoir will be a concrete-faced rockll embankment dam 41 m high, with total capacity of 22.6-million cubic metres and an active water storage volume of 19.3-million cubic metres. The lower dam will be of roller-compacted concrete (RCC), 39 m high, with total capacity of 26.3-million cubic metres and an active storage volume of 21.9-million cubic metres. The upper reservoir will store enough water to generate electricity continuously, using all four units for 16 hours. Pumping the water back from the lower reservoir will take about 21 hours, giving an overall efciency of 76% for the scheme. Value R23.8-billion. As at March 31, 2012, R11.1-billion had been spent. Duration The rst 333 MW unit of the nearly R17-billion project is expected to be commissioned in the rst quarter of 2014, with the remainder of the units starting commercial operation in the same year. Latest Developments In June, international lifting equipment manufacturer Konecranes was contracted by Eskom to provide heavy-duty cranes for its Medupi, Kusile and Ingula sites. The two cranes installed in the underground machine hall at Ingula each have a capacity of 265 t and will be used to install the plants turbine and generator components, which include a 146 t spiral case, a 150 t main inlet valve, a 350 t stator and a 450 t rotor. A further two 8 t cranes and two 12 t cranes have been installed at Ingula for routine use. Key Contracts and Suppliers The Braamhoek Consultants joint venture (JV) consisting of Arcus Gibb, Knight Pisold and Stewart Scott (civil engineering, mechanical engineering, electrical engineering, detailed design, tender documentation,
design monitoring and construction supervision); Murray & Roberts (exploratory tunnel); Grinaker-LTA (access roads); CMI JV, comprising CMC di Ravenna, PG Mavundla and Impregilo (underground civil works); Afriscan (water supply, sewage treatment, small access roads and building of temporary Eskom ofces); B&E Quanza Group (aggregate quarry); Acer [Africa] (environmental consultants); Braamhoek Dam JV, comprising Concor Roads & Earthworks, Wilson Bayly Holmes-Ovcon (WBHO), Edwin Construction and Silver Rock (dam contract); Voith Siemens Hydro Power Generation (electromechanical equipment contract); Atlantis Drill (ventilation shaft) and Sandvik Mining & Construction (raiseboring manager); Deutsche Bank (R1-billion loan); ABB (electrical balance of plant, or eBoP, solution); NCC Environmental Services (independent environmental control ofcer services) and Konecranes (heavy-duty cranes). On Budget and on Time? The rst 333 MW unit was initially expected to be commissioned by January 2013. The rst unit, however, will now only be commissioned in the rst quarter of 2014. Contact Details for Project Information ABB head of communications Harmeet Bawa, tel +41 43 317 6480, fax +41 43 317 6482 or email harmeet.bawa@ch.abb.com. Arcus Gibb, Andre Bosch, tel +27 11 519 4600 or fax +27 11 807 5670. Braamhoek Dams JV (Concor Roads & Earthworks), Eric Wisse, tel +27 11 495 2222. CMI Mavundla JV, tel +27 36 638 6000 of fax +27 36 8 6017. Eskom media desk, tel +27 11 800 3304/3309/3343/3378, fax +27 11 800 3805 or email mediadesk@eskom.co.za; or Katlego Nchoe, tel +27 11 800 3435 or email NchoeK@eskom.co.za. Eskom national call centre, tel 0860 037 566. Ingula Visitors Centre, tel +27 36 342 3122 or email .meyer@eskom.co.za. Impregilo, Giovanni Frante, tel +39 02 4442 2115 or email giovanni.frante@impregilo.it. Voith Siemens Hydro Power Generation, Barbara Fischer-Aupperle, tel +49 7321 370, fax +49 7321 37 6180 or email barbara.scher-aupperle@vs-hydro.com. NCC, tel +27 21 702 2884, fax +27 86 555 0693 or email info@ncc-group.co.za. Konecranes, tel +27 11 864 2800.
Source: Knight Pisold
Electricity
ESKOMS KUSiLe POWeR PLANT PROJeCT
Name and Location Kusile power plant project, Mpumalanga, South Africa. Client Eskom. Project Description Kusile will be a six-unit, greeneld, mine-mouth, supercritical coal-red power plant, with about 4 800 MW of gross output. It will be built adjacent to the existing Kendal power station, in the eMalahleni municipal area. Kusile is Eskoms second most advanced coal project after the Medupi power station, which is being built in Limpopo, to meet South Africas energy requirements. The project will include a power station precinct, power station buildings, administrative buildings (control buildings, medical and security), roads, as well as a high-voltage yard. The associated infrastructure will include a coal stockyard, coal and ash conveyors, water-supply pipelines (temporary and permanent), electricity supply (temporary, during construction), water and wastewater treatment facilities, ash disposal systems, a railway line, limestone ofoading facilities, access roads (including haul roads), dams for water storage, as well as a railway siding and/or a line for the sorbent (limestone) supply. The unit will be the rst power station in South Africa to have ue gas desulphurisation (FGD) installed. FGD is a state-of-the-art technology, used to remove oxides of sulphur, such as sulphur dioxide, from exhaust ue gases in power plants that burn coal or oil. Kusile is also designed to be carbon-capture and sequestration ready, meaning that it is congured to facilitate the necessary installation of equipment that will capture and transport carbon dioxide emissions to a permanent storage location. To help conserve water, the plant will use an air cooling system. The majority of the coal for the power plant will be sourced from Anglo American Inyosi Coals New Largo mine (mine mouth) and supporting coal will be sourced from the Zondagsfontein East No 2 seam a middlings product the Zondagsfontein East No 4 seam and the Zondagsfontein West resource, where further exploration is ongoing. Value The project is being developed at a cost of R118.5-billion. As at March 31, 2012, Eskom had spent R39.3-billion on the project. Duration The rst generating unit is scheduled to enter commercial operation by late 2014, with the subsequent ve units being commissioned at eight-month intervals thereafter. The last unit is expected to be in commercial operation in 2018. Eskoms decision to delay the awarding of some of the projects contracts will subsequently delay the overall delivery schedule, possibly by 18 to 36 months. Latest Developments Eskom reports that it has agreed to a capital sharing arrangement with mining group Anglo American for the proposed greeneld New Largo coal mine, in Mpumalanga, which will produce coal for the power station. The mine is expected to deliver 12-million tons of coal a year to the power station. The agreement still requires nal sign-off from Anglo and Eskom. Meanwhile, Konecranes was contracted by Eskom in June to provide heavy-duty cranes for its Medupi, Kusile and Ingula sites. Konecranes installed two cranes at Kusiles turbine halls. It will install a further two cranes in Kusiles turbine hall by early 2013. Key Contracts and Suppliers Ninham Shand Consulting Services (environmental-impact assessment, geotechnical investigation and trafc impact); AirShed Planning Professionals (air-quality impact); Jongens Keet Associates (noise impact); Strategic Environmental Focus, or SEF (visual impacts); Makecha Development Association (impacts on terrestrial fauna and ora); Golder Associates, through Ecosun (aquatic-ecosystem impact); Groundwater Consulting Services (groundwater impact); Ilitha Riscom (risk assessment); Northern Flagship Institution (archaeological impact); University of the Free State (impacts on agricultural potential); Urban-Econ, or UE (socioeconomic impacts); Seaton Thomson & Associates (planning implications); Mark Wood Environmental Consultants (process review); Eskom; in partnership with Black & Veatch International (project management and engineering services); Hitachi Power Africa, or HPA, a subsidiary of Hitachi Power Europe, or HPE (boiler contract); Actom, formerly Alstom P&C (turbine island works); Alstom (turbine contract and distributed control system, or DCS); Mikropul, subcontracted by Alstom (axial-ow fans and auxiliary equipment for the turbine halls ventilation); Murray & Roberts, or M&R (boiler construction contract); Roshcon, a subsidiary of Eskom (terracing contract); Concrete Finishing Equipment (dust lters and silo and environmental safety); the Kusile Civil Works, or KCW Joint Venture (JV), comprising Stefanutti Stocks, Basil Read, Group Five and Wilson Bayly Holmes-Ovcon (WBHO) Construction (main civil works); BHR Piping Systems (bending machine); Siemens (generation transformers contract); EsorFranki Geotechnical, formerly Franki Africa and Stefanutti Stocks Geotechnical (SSF JV), under a subcontract to the KCW JV (piling works for the turbine, boiler and air-cooled condensers, or ACC); Karina Concor JV (construction of chimney shells/structures); Alstom in consortium with Cosira (engineering, supply and installation of FGD system); DSE Structural Engineers & Contractors, subcontracted by Genrec Engineering (fabrication of steel columns for boilers 1 to 3); Steel Services Direct, or SSD (steel, pipes and wax plants); GB Bearings (supplier of HSR horizontal bearing assemblies and prole bore bearings); Sulzer Pumps South Africa, subcontracted by Actom (supply of booster and boiler feed pumps); Steloy Castings, subcontracted by Sulzer Pumps South Africa (supply of chrome steel components for the pumps); Clyde Bergemann Power Group subcontracted by HPA (supplier of sootblowers for boilers); Clyde Bergemann Africa (y ash handling system); ABB (supplier of medium-voltage switchgear and associated equipment); PD Naidoo & Associates (PDNA) Industrial Projects (main water and wastewater treatment contractor); GE Water Engineered Systems, subcontracted by PDNA Industrial Projects (advanced water and wastewater treatment equipment); Bateman Africa (materials handling contract); Lesedi Nuclear Services (procurement and supply of the balance of plant equipment); Grinaker-LTA Metals and Minerals (supply and erection of piping, steelwork and free-issue chemicals); US Export-Import Bank, or Ex-Im Bank (loan nance) and Konecranes (heavy-duty cranes). On Budget and on Time? The estimated cost of the Kusile project has increased from an initial R80-billion to R142-billion. In 2009/10 the capital budget was reduced from R87-billion to R70-billion. Eskom has proposed that the project be introduced in June 2014, rather than in June 2013, to help accommodate the utilitys proposed lower tariff increases. However, the Department of Energys Integrated Resource Plan has kept to the initial plan for 2013. Contact Details for Project Information ABB media relations, Wolfram Eberhardt or Thomas Schmidt, tel +41 43 317 6568 or email media.relations@ch.abb.com. Actom, Mark Dixon, tel +27 11 820 5111 or fax +27 11 820 5100. AirShed Planning Professionals, tel +27 11 805 1940,
Electricity
fax +27 11 805 7010 or email mail@airshed.co.za. Alstom press, Philippe Kasse, tel +33 1 41 49 2982/3308 or email philippe.kasse@chq.alstom.com; or investor relations Emmanuelle Chtelain, tel + 33 1 41 49 3738/2136 or email emmanuelle.chatelain@chq.alstom.com. Basil Read investor relations, Enna Kruger, tel +27 11 418 6375, fax +27 11 418 6334 or email ekruger@basilread.co.za. Bateman Africa, tel +27 11 899 9000, fax +27 11 899 4903 or email enquiries-africa@batemanengineering.com. Bateman Engineered Technologies GM Braam Strauss, tel +27 11 201 2300 or email enquiries@bateman-bet.com. Black & Veatch media relations and communications director George Minter, tel +1 913 458 8001 or email Mediainfo@bv.com. Clyde Bergemann Africa, tel +27 11 704 0580, fax +27 11 704 0597 or email enquiry@cbz.co.za. Clyde Bergemann Power Group, tel +49 281 815 101, fax +49 281 815 184 or email info@clydebergemannpowergroup.com. Concrete Finishing Equipment, tel +27 82 788 8265. Cosira group senior project manager Jerry Methi, tel +27 11 817 6600, cell +27 86 537 1730 or email jerrymethi@cosiragroup.com. DSE Structural Engineers & Contractors, tel +27 11 871 4111, fax +27 11 871 4141 or email dse@grinaker-lta.co.za; or MD Kobus Marais, cell +27 82 904 4657 or email kmarais@grinaker-lta.co.za. Eskom media desk, tel +27 11 800 3304/3309/3343/3378, fax +27 86 664 7699 or email mediadesk@eskom.co.za; or project managers Frenchie Collet-Serret, email ColletF@eskom.co.za; and Abram Masango, email Abram.masango@eskom.co.za. Eskom national call centre, tel 0860 037 566. EsorFranki CEO Bernie Krone, tel +27 11 771 3906 or email bkrone@esor.co.za. Ex-Im Bank, Phil Cogan and Maura Policelli, tel +1 202 565 3200. GB Bearings, tel +27 11 974 1291 or fax +27 11 974 1468; or sales and marketing manager Alan Parkinson, email alan.parkinson@gbbearings.co.za. GE global communications, Kimberly Ramalho, tel +1 215 942 3409 or email kimberly.ramalho@ge.com; or public relations, Howard Masto, tel +1 518 786 6488 or email howard.masto@ge.com. Golder Associates, Chris van Renssen, tel +27 12 366 0100, fax +27 12 366 0111 or email cvanrenssen@golder.co.za. Grinaker-LTA Metals and Minerals GM Bob DArcy, tel +27 11 681 2200, fax +27 11 681 1810 or email bdarcy@grinaker-lta.co.za.
Group Five, tel +27 11 806 0111. HPA, tel +27 11 260 4300, fax +27 11 656 3609 or email info@hitachi-power.co.za; or media liaison Pamella Radebe, tel +27 11 260 4300 or email pradebe@hitachi-power.co.za. Jongens Keet Associates, fax +27 21 794 5643, or email jongens@yebo.co.za. Lesedi Nuclear Services marketing manager Shane Pereira, tel +27 21 525 1300, fax +27 21 525 1333 or email shane.pereira@lesedins.co.za. Mikropul, tel +27 478 0456, fax +27 478 0371 or email sales@mikropul.co.za. M&R group communications executive Ed Jardim, tel +27 11 456 6200, fax +27 11 455 1322 or email eduard.jardim@murrob.com. Ninham Shand Consulting Services, tel +27 21 481 2400 or fax +27 21 424 5588. Northern Flagship Institution, tel +27 12 322 7632, fax +27 12 322 5560 or email poppie@n.org.za. PDNA head ofce, tel +27 11 566 8300, fax +27 11 566 8600 or email johannesburg@pdna.co.za. Roshcon, tel +27 11 629 8000 or fax +27 11 626 3460. Seaton Thomson & Associates, tel +27 12 667 2107, cell +27 82 920 6115, fax +27 12 667 2109 or email seaton@yebo.co.za. SEF, tel +27 12 349 1307 or fax +27 12 349 1229. SSD, tel +27 11 828 0439 or fax +27 11 828 2810; or director Theo van Schie, email theo@steelservicesdirect.co.za. Stefanutti Stocks Civils contracts director Mark Stannard, tel +27 11 571 4300. Stefanutti Stocks Geotechnical, tel +27 11 571 4300, fax +27 11 393 3150 or email geotech@stefstocks.com. Steloy Castings, tel +27 13 933 3331, fax +27 13 933 3653 or email info@steloy.com. Sulzer Pumps South Africa, tel +27 11 820 6252 or fax +27 11 820 6205; or Gavin Doran, email gavin.doran@sulzer.com. UE, tel +27 13 752 4932, fax +27 13 752 4952 or email nelspruit@urban-econ.com. University of the Free State strategic communication chief ofcer Leonie Bolleurs, tel +27 51 401 2707. WBHO Construction, tel +27 11 321 7200, fax +27 11 887 4364 or email wbhoho@wbho.co.za. Konecranes, tel +27 11 864 2800.
Source: Creamer Media
Electricity
ESKOMS MeDUPi POWeR STATiON PROJeCT

Name and Location Medupi power station project, Lephalale, Limpopo, South Africa. Client Eskom. Project Description Medupi, which means a rain that soaks parched lands, giving economic relief , will be a dry-cooled coal-red, base-load power generating plant, comprising six 800 MW units, with a 4 800 MW installed capacity the biggest of its kind with dry cooling in the world. It will be located on an 883 ha site (formerly a farm named Naauw Ontkomen), previously used for game and cattle grazing. The planned operational life of the station is 50 years. The power station will use high-tech supercritical boilers, which will operate at higher temperatures and pressures than older boilers, providing greater efciency. It is the rst base-load, coal-red station to be built in South Africa in over 20 years and its delivery on schedule is viewed as critical. The project will form part of the utilitys integrated strategic electricity plan. Value R91.2-billion. As at March 31, 2012, Eskom had spent R55.2-billion. Duration The plant will be ramped up to full capacity by 2017. Latest Developments? Eskom CFO Paul OFlaherty has conrmed that Medupi power plant is on track to deliver rst power to the grid before the end of 2013. Speaking at the utilitys 2011/12 results presentation in June, he stated that Eskom was taking strict measures to ensure that the construction phase stayed within budget. The hydrostatic pressure test of the rst boiler at Medupi was also completed earlier in the month, with President Jacob Zuma initiating the nal phase of the test on June 8.
The boiler is at the heart of the power plant and the hydrostatic pressure test is an essential step in the commissioning of each unit, once construction of the boiler has been completed. Meanwhile, construction group Murray & Roberts (M&R) has reported that the risks associated with its Eskom-related projects have been dealt with after reaching an in-principle agreement with the Stateowned power utility relating to variation orders, time extensions and the remaining scope of the civil engineering works at the Medupi power station project site. The agreement deals with all historical claims and, more importantly, denes the scope and value of the remaining works, now estimated at around R3-billion. The full value of the contract is estimated at around R8-billion for the M&R-led civils joint venture, which also includes Aveng. The high-level settlement still has to be signed off by the Eskom board, but M&R does not foresee any problems related to the clearing of that governance hurdle. The solution, together with a deal concluded with Hitachi in the rst half of 2011, means that M&R no longer perceives the Medupi-related orders to represent problem contracts. The JSE-listed contractor is also the mechanical works subcontractor for the multibillion-rand boiler contract, awarded to Hitachi in 2007. The contract value to M&R was estimated at about R18-billion, with about R5-billion already spent. Since M&R and Hitachi came to an agreement on a way forward progress on the Medupi site has improved materially. Further, the progress achieved with Hitachi and Eskom is enabling the contractors to regain some of the time lost during the earlier phases. In June, Konecranes was contracted by Eskom to provide heavy-duty cranes for its Medupi, Kusile and Ingula sites. Konecranes installed four cranes at Medupis turbine halls. Key Contracts and Suppliers Parsons Brinckenhoff (contracts manager); Exxaro Resources (coal agreement), Roshcon (civil engineering); BKS Group (audit and design of concrete steel structures); Murray & Roberts, or M&R (structural steel fabrication and erection, mechanical installation works, boiler
To page 8 Projects IN Progress 2012
Electricity
From page 7
construction and civil works contract); Energy Fabrication (supply of 30 000 t of fabrication platework for the boiler ducting and coal bunkers); HPA and Hitachi Power Europe, or HPE (engineering, supply, manufacturing, construction and commissioning of utility steam generators, as well as related components such as regenerative steam airheaters, coal mills and feeders, sootblowers, fans, de-ashers, highpressure and low pressure pipework); Actom Protection & Control, or P&C, (turbine generator protection equipment); SPX Corporation (pulse-jet fabric lters and air preheaters, and the manufacture of pressure parts); GEA (design, manufacture, supply and erection of the air-cooled condensers); Hansen Transmissions South Africa (condenser gearboxes); Afrimat, in partnership with local suppliers Chobe Crushers (supply of aggregate); BroKrew Industrial (fabrication, corrosion protection and delivery of ducting for six air-cooled condenser sections); Genrec Engineering (awarded several projects by M&R, which is contracted to HPA (connection design, to detail, fabricate and supply structural steel for the boiler island, auxiliary bay structures, ash transverse conveyors, coal incline conveyors, and the primary and secondary coal conveyors); SSI (engineering services); Cosira (turbine hall); Kwikspace (modular accommodation units); Sarens (mobile crane hire); Voith Turbo (Vorecon drives); Concrete Finishing Equipment (dust lters and silo and environmental safety); Arevas transmission and distribution (T&D) division (switchgear cubicles); Mikropul (axial-ow fans and auxiliary equipment for the turbine halls ventilation); General Electric, or GE (switchgear system); Siemens (unit transformers); Clyde Bergemann Power Group, subcontracted by HPA (supplier of sootblowers for boilers); Clyde Bergemann Africa (y ash handling and conditioning systems); DSE Structural Engineers & Contractors, subcontracted by Genrec Engineering (air preheater structure); Steel Services Direct, or SSD (steel, pipes and wax plants); GB Bearings (supplier of HSR horizontal bearing assemblies and prole bore bearings); Sulzer Pumps South Africa, subcontracted by Actom (fabrication of 48 pumps for boiler feed, booster and condensate extraction duties); Steloy Castings, subcontracted by Sulzer Pumps South Africa (supply of chrome steel components for the pumps); ThyssenKrupp Materials Handling, or TKMH (supply of coal handling equipment); a.b.e. Construction Chemicals (supply of waterproong, ooring and sealant products, and other general construction products); LP Services consortium (engineering, procurement and construction contract for the low-pressure services); Lighting Structures (design, manufacture, supply and installation of Hi Masts); and Konecranes (heavy-duty cranes). On Budget and on Time? Eskom is still forecasting output from the rst unit at the R91-billion, six-unit project towards the end of 2013. Contact Details for Project Information a.b.e. Construction Chemicals, Elrene Smuts, tel +27 11 306 9000. Actom, Mark Dixon, tel +27 11 820 5111, fax +27 11 820 5100 or email mark.dixon@actom.co.za. Afrimat investor and corporate relations, tel +27 11 325 5944 or fax +27 11 325 5942. Areva T&D, Mark Dixon, tel +27 11 820 5037 or fax +27 11 820 504; or James Mulholland, tel +33 1 34 96 31 82 or email james.mulholland@areva.td.com. BKS Group, tel +27 12 421 3500, fax +27 12 421 3501 or email group@bks.co.za. BroKrew, tel +27 11 668 6300 or fax +27 11 955 1958. Chobe Crushers, tel +27 14 763 5130. Clyde Bergemann Africa, tel +2 7 11 704 0580, fax +27 11 704 0597 or email enquiry@cbz.co.za. Clyde Bergemann Power Group, tel +49 281 815 101, fax +49 281 815 184 or email info@clydebergemannpowergroup.com. Cosira group senior project manager Jerry Methi, tel +27 11 817 6600,
cell +27 86 537 1730 or email jerrymethi@cosiragroup.com. DSE Structural Engineers & Contractors, tel +27 11 871 4111, fax +27 11 871 4141 or email dse@grinaker-lta.co.za; or MD Kobus Marais, cell +27 82 904 4657 or email kmarais@grinaker-lta.co.za. Energy Fabrication, tel +27 11 456 1000, fax +27 86 637 1756 or email info@energyfabrication.co.za. Eskom Enterprise Medupi project senior communications adviser Mashudu Ramulifho, tel +27 14 762 2148, fax +27 86 607 6080, cell +27 82 901 7184 or email Mashudu.Ramulifho@eskom.co.za. Eskom media desk, tel +27 800 3304/3309/3343/3378, fax +27 11 800 3805 or email mediadesk@eskom.co.za. Eskom national call centre, tel 0860 037 566. Exxaro Resources investor relations Adriaan de Beer, tel +27 12 307 4189 or email adriaan.debeer@exxaro.com. GB Bearings, tel +27 11 974 1291 or fax +27 11 974 1468; or sales and marketing manager Alan Parkinson, email alan.parkinson@gbbearings.co.za. GEA Aircooled Systems engineering and contract manager Albert Zapke, tel +27 11 861 1521 or email Albert.Zapke@geagroup.com. GE corporate investor communications, Elizabeth Seibert, tel +1 203 373 2460 or email ir.contacts@corporate.ge.com; or corporate investor communications director JoAnna Morris, tel +1 203 373 2472 or email ir.contacts@corporate.ge.com. Genrec Engineering, tel +27 11 876 2300, fax +27 11 827 1733 or email sales@genreceng.co.za. Hansen Transmissions project manager Ludwig Maier, tel +27 11 571 9611, cell +27 82 213 2218 or email lmaier@hansentransmissions.com. HPA, tel +27 11 260 4300, fax +27 11 656 3609 or email info@hitachi-power.co.za; or media liaison Pamella Radebe, tel +27 11 260 4300 or email pradebe@hitachi-power.co.za. HPE, tel +49 203 80 38 0 or fax +49 203 80 38 1809. Kwikspace, tel +27 11 903 8993 or email barney@kwikspace.co.za. IWC, tel +27 11 466 0699, fax +27 11 466 8180 or email mail@iwc.co.za. Lesedi Nuclear Services marketing manager Shane Pereira, tel +27 21 525 1300, fax +27 21 525 1333 or email shane.pereira@lesedins.co.za. Mikropul, tel +27 478 0456, fax +27 478 0371 or email sales@mikropul.co.za. M&R, tel +27 11 723 2080; or group communications executive Ed Jardim, tel +27 11 456 6200, fax +27 11 455 1322, cell +27 83 357 6282 or email eduard.jardim@murrob.com. Parsons Brinckenhoff, tel +27 11 787 4141, fax +27 11 886 0359 or email project@pbworld.com. Roshcon, tel +27 11 629 8000 or fax +27 11 626 3460. Sarens, tel +27 11 861 3800, fax +27 11 861 3899 or email info@sarenssa.co.za. SSD, tel +27 11 828 0439 or fax +27 11 828 2810; or director Theo van Schie, email theo@steelservicesdirect.co.za. SSI CEO Naren Bhojaram, tel +27 11 798 6000, fax +27 11 798 6005 or email corporate@ssi.co.za. Steloy Castings, tel +27 13 933 3331, fax +27 13 933 3653 or email info@steloy.com. Sulzer Pumps South Africa, tel +27 11 820 6252 or fax +27 11 820 6205; or Gavin Doran, email gavin.doran@sulzer.com. TKMH, tel +27 11 236 1000 or fax +27 11 236 1235; or marketing manager Willie Agenbag, email Willie.agenbag@thyssenkrupp.com. Voith Turbo operations manager Izak van der Walt, tel +27 11 418 4076, fax +27 11 418 4059 or email vanderwalt@voith.com. Wetback Contracts, tel +27 11 392 8000, fax +27 11 392 5856 or email info@wetback.co.za. Lighting Structures, Pieter Jooste, tel +27 87 310 1000, fax +27 86 699 6999 or email p.jooste@leblancgroup.com. Konecranes, tel +27 11 864 2800.
Electricity
ESKOMS ReTURN-TO-SeRViCe PROJeCTS
Name and Location Eskoms return-to-service (RTS) projects, South Africa. Client Eskom. Project Description The projects involve the demothballing of three coal-red stations Camden, Grootvlei and Komati, for a combined nominal capacity of 3 800 MW. The Camden power station, in Ermelo, in Mpumalanga, is the rst of Eskoms three mothballed coal-red power stations to be returned to service. The station will add 1 520 MW to the Eskom grid. At Camden, there are eight 200-MW units, with a combined capacity of 1 600 MW. Two generating units, with a combined capacity of 400 MW, was brought on-stream at Camden every year from 2005 to 2008. The Grootvlei power station, near Balfour, in Mpumalanga, has six boiler and turbine sets and a total capacity of 1 200 MW. The Komati power station, situated between Middelburg and Bethal, in Mpumalanga, has an installed capacity of ve 100 MW units and four 125 MW units. The three stations will each have an operating life of between 15 and 20 years. Value R25-billion. As at March 31, 2012, R23-billion had been spent. Duration The Camden power station was reintroduced to the grid at the end of July 2008 and ofcially launched by President Jacob Zuma in October 2010. The Grootvlei and Komati projects will be completed in 2012. Latest developments Eskom reported in June that three of the Komati power station units and Unit 5 of the Grootvlei power station had been commissioned. Further, capacity at Camden power stations Unit 6 increased. Only three units remain to be commissioned at Komati to complete the return-to-service power station project. Key Contracts and Suppliers Companies involved at the Camden power station: Steinmller Engineering Services (boiler plant refurbishment), South African Compensators, or SAC (manufacture of economisers), ABB (common plant switchgear and the switchgear protection), Siemens Building Technologies (control and instrumentation equipment, and installation of re-detection system), AquaPlan (water plant and sewage plant operation), Howden Africa Holdings (the return-to-service) and upgrade of the Unit 6 precipitators), Stefanutti & Bressan (station control room, battery room and equipment room; refurbishment and upgrading of compressors and compressed-air system), Loesche (Unit 6 milling plant refurbishment ve mills). Companies involved at the Grootvlei power station: Fluor, in a joint venture with Pangaea (engineering, procurement and construction management services), Honeywell (distribution control system), VWS Envig (refurbishment of potable and demineralisation water treatment plants), Pangaea (engineering, procurement and construction management services), Honeywell (distribution control system), VWS Envig (refurbishment of potable and demineralisation water treatment plants), Actom South Africa (previously Alstom) (modernisation, refurbishment and replacement of the turbine control and protection system for all six generator units and four steam-feed pump turbines at Grootvlei power station, as well as the retrotting, refurbishment and upgrade of the gas-cleaning systems for all six generation units at the power station), and Mapelastic Smart (waterproong). On Budget and on Time? Returning the power stations to service was expected to be completed by October 2011, but is now expected to be completed by October 2012. Contact Details for Project Information ABB head ofce, tel +27 10 202 5000, +27 86 022 2123, or email info@za.abb.com. Actom South Africa head ofce, Mark Dixon, tel +27 11 820 5111 or fax +27 11 820 5100. AquaPlan, tel +27 11 979 2510, fax +27 11 979 2587 or email enquiries@aquaplansa.co.za. Camden power station manager Anthony Kuzelj, tel +27 17 827 8006 or fax +27 17 827 8208. Eskom media desk, tel +27 800 3304, fax +27 11 800 3850 or email mediadesk@eskom.co.za. Eskom national call centre, tel 0860 037 566. Fluor, tel +27 11 233 3400 or fax +27 11 233 3805. Grootvlei power station manager Jason Hector, tel +27 17 779 8641 or fax +27 17 779 0021. Honeywell, tel +1 973 455 2000 or fax +1 973 455 4807. Howden Africa Holdings projects Andrew Twyford, tel +27 11 240 4240, fax +27 11 493 1749 or email enquiries@howden.co.za. Komati power station site manager Christopher Nani, tel +27 13 295 9119 or fax +27 13 295 9101. Loesche, tel +27 11 482 2933, fax +27 11 482 2940 or email loesche4@global.co.za. SAC, tel +27 16 341 4101/2/3 or fax +27 16 341 2618. Siemens Building Technologies, tel +49 69 797 6660. Stefanutti Stockss Holdings, tel +27 11 571 4300, fax +27 11 571 4370 or email holdings@stefstocks.com. Steinmller Engineering Services, tel +27 11 806 3000, fax +27 11 806 3330 or email info@steinmuller.co.za. VWS Envig, email info.vwsenvig@veoliawater.com.
Renewable Energy
In 2011 the South African government proceeded with a renewable energy independent power producer programme (REIPPP), to add 3 725 MW of independently produced renewable power to the national grid by 2016. This plan, in conjunction with the action that has been taken to move it forward, has done much to boost confidence in governments commitment to independent and large-scale renewable power. In the first window of the REIPPP bid window, 53 qualified bids had been received, of which 28 were selected as preferred bidders, representing about 1 415 MW of potential capacity. The preferred bidders named include 18 solar photovoltaic (PV) projects, eight onshore wind projects and two concentrating solar power (CSP) projects. For the second window, 79 bids were submitted, of which 51 met the requirements of the REIPPP request for proposals. However, owing partly to the fact that only 1 275 MW was available, only 19 projects, representing 1 043.9 MW of capacity, were selected. The preferred bidders include nine solar PV projects, seven onshore wind projects, two small hydropower projects and one CSP project.
Source: Tomohiro Ohsumi for Bloomberg
The 47 preferred bids, representing about 2 459.4 MW of renewables capacity, are expected to make a collective invest of some R70-billion to develop their projects. The schedule and capacity allocation for the third bid window under the REIPPP is expected to be announced in due course.
Renewable Energy
DePARTMeNT OF ReNeWABLe ENeRGY INDePeNDeNT POWeR PRODUCeR PROGRAMMe FiRST WiNDOW
Name and Location Renewable Energy Independent Power Producer Programme (REIPPP) rst window, South Africa. Client Department of Energy (DoE). Project Description The REIPPP projects are among an initial batch of 53 bids submitted for the November 2011 bid window and represent potential capacity of 1 415.2 MW and potential investment of billions of rands. The preferred bidders named include 18 solar photovoltaic (PV) projects, eight onshore wind projects and two concentrating solar power (CSP) projects. The PV projects named are: SlimSun Swartland solar park (5 MW). Rustmo1 solar farm (6.76 MW). Mulilo Renewable Energy Solar PV De Aar (9.65 MW). Konkoosies Solar (9.65 MW). Aries Solar (9.65 MW). Greefspan power plant (10 MW). Herbert PV power plant (19.9 MW). Mulilo Renewable Energy Solar PV Prieska (19.93 MW). Soutpan solar park (28 MW). Witkop solar park (30 MW). Touwsrivier project (36 MW). De Aar solar PV (48.25 MW). South African Mainstream Renewable Power Droogfontein Project (48.25 MW). Letsatsi Power Company (64 MW). Lesedi Power Company (64 MW). Kalkbult project (72.5 MW). Kathu solar energy facility (75 MW). Solar Capital De Aar (75 MW). The combined capacity of the solar PV projects that made it through to the preferred-bidder stage was 631.53 MW. The wind projects listed include: Dassiesklip wind energy facility (26.19 MW). MetroWind Van Stadens wind farm (26.19 MW). Hopefield wind farm (65.40 MW). Noblesfonstein (72.75 MW). Red Cap Kouga wind farm Oyster Bay (77.6 MW). Dorper wind farm (97 MW). Jeffreys Bay project (133.86 MW). Cookhouse wind farm (135 MW). The wind project collectively represents 633.99 MW of capacity. The two solar CSP projects named were Khi Solar One (50 MW) and KaXu Solar One (100 MW). The DoE aims to produce 1 850 MW of onshore wind, 1 450 MW of solar PV, 200 MW of CSP, 75 MW of small hydro, 25 MW of landll gas and 12.5 MW each of biomass and biogas capacity. Value The projects represent a collective investment of about R46-billion. Duration The rst 28 REIPPP preferred bidders had until June 2012 to take their projects to nancial closure. However, the 28 preferred bidders identied in December were notied later that the timing of nancial closure would be delayed until after the end of July. All projects will need to generate power by mid-2014, apart from the CSP plants, which have been given a deadline of 2016. Latest Developments The DoE announced on August 16 that it expected to begin concluding outstanding nancial-closure agreements with the rst 28 wind and solar bidders, named in December as preferred bidders under the Renewable Energy Independent Power Producer Programme (REIPPP) the following week, and that it aimed to complete the process by the end of the month. However, director-general Nelisiwe Magubane indicated that the DoE would be sending requests to bidders for an extension of the bidding period beyond the August 31, 2012, bid validation period effectively cautioning that the nancial-close period could well extend beyond that date. Key Contracts and Suppliers None stated. On Budget and on Time? Too early to state. Contact Details for Project Information DoE departmental spokesperson Thandiwe Maimane, tel +27 12 444 4256, cell +27 82 450 8591, fax +27 86 581 8505 or email MediaDesk@energy.gov.za.
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Renewable Energy
DePARTMeNT OF ReNeWABLe ENeRGY INDePeNDeNT POWeR PRODUCeR PROGRAMMe SeCOND WiNDOW
Name and Location Renewable Energy Independent Power Producer Programme (REIPPP) second window, South Africa. Client Department of Energy (DoE). Project Description The DoE has announced 19 companies as preferred bidders during the second window of the REIPPP, which closed on March 5. The 19 projects represent 1 043.9 MW of capacity. The preferred bidders named include nine solar photovoltaic (PV) projects, seven onshore wind projects, two small hydropower projects and one concentrated solar power (CSP) project. The solar PV projects named are: Solar Capital De Aar 3 (75 MW) Sishen solar facility (74 MW) Aurora (9 MW) Vredendal (8.8 MW) Linde (36.8 MW) Dreunberg (69.6 MW) Jasper Power Company (75 MW) Boshoo solar park (60 MW) Upington solar PV (8.9 MW) The combined capacity of the solar PV projects that made it through to the preferred-bidder stage was 417.1 MW. The wind projects listed include: Gouda wind facility (135.2 MW) Amakhala Emoyeni (Phase 1), Eastern Cape (137.9 MW) Tsitsikamma community wind farm (94.8 MW) West Coast 1 (90.8 MW) Waainek (23.4 MW) Grassridge (59.8 MW) Chaba (20.6 MW) The wind projects collectively represent 562.5 MW of capacity. The preferred small hydropower bidders include Stortemelk Hydro (4.3 MW) and Neusberg hydroelectric project A (10 MW) for a cumulative 14.3 MW. The one CSP project named was the 50 MW Bokpoort CSP project. Value The second-round projects are valued collectively at close to R28-billion. Duration The preferred bidders identied during the second bid window have until December 13 to take their projects to nancial closure. Latest Developments A total of 51 of the second-window bidders met the requirements of the REIPPP request for proposals. But, owing partly to the fact that only 1 275 MW was available, only 19 projects, representing 1 043.9 MW of capacity, were selected, Energy Minister Dipuo Peters reported. Bidders present at the announcement expressed some disappointment with the fact that the full window-two allocation had not been taken up. But government explained that the next best bids would have resulted in more than 1 275 MW being allocated and that it had, thus, decided to hold off until the third bid window. It is possible that bids will be sought for the remaining 1 165.9 MW not yet allocated for large projects during window three. The next window could also include capacity that might become available should any round-one preferred projects fail to reach nancial closure. In the next few weeks, the DoE will release a tender for projects involving less than 5 MW. An allocation of 100 MW had been set aside from the 3 725 MW currently being procured by government. Meanwhile, some of the developers and equipment suppliers involved in the 19 projects conrmed as preferred bidders under the REIPPP have started to emerge. Companies such as Acciona Energy, Aveng, Cennergi, EDF Energies Nouvelles, GDF Suez and Windlab Developments South Africa have conrmed that their projects have been selected. Cennergi, the recently formed joint venture involving Exxaro and Tata Power, has conrmed that two of its wind projects have advanced to preferred-bidder status. The companys 137.9 MW Amakhala Emoyeni wind farm project, located near the town of Bedford, in the Eastern Cape, is the largest wind project named in the round. The project is being developed together with Windlab Developments South Africa. Indias Suzlon Energy will supply 66 turbines for the Amakhala Emoyeni project, which will be delivered under a full engineering, procurement and construction management agreement. Cennergis other wind project to advance is the 94.8 MW Tsitsikamma community wind farm. Danish wind turbine producer Vestas will supply turbines to the wind farm. Vestas has also conrmed that it has been selected the preferred supplier for ve projects, with a combined nameplate capacity of 297 MW. Besides the Tsitsikamma community wind farm, the Danish group is set to supply the 90.8 MW West Coast 1 project being pursued by Moyeng Energy, a consortium involving Investec Bank and French energy company GDF Suez and supported by Windlab. Vestas systems could also be deployed at the 59.8 MW Grassridge, the 23.4 MW Waainek and the 20.6 MW Chaba projects, being developed by EDF Energies Nouvelles. Also, renewable-energy company Acciona Energy and construction group Aveng have conrmed that they have secured preferred-bidders status on the 135.2 MW Gouda wind facility, as well as the 74 MW Sishen PV facility. The Department of Energy has revised the nancial-close schedule of the 19 second-round preferred bidders to between March 18 and 28, 2013, from an initial date of December 2012 Key Contracts and Suppliers Suzlon Energy (wind turbines) and Vestas (wind turbines). On Budget and on Time? Too early to state. Contact Details for Project Information DoE departmental spokesperson Thandiwe Maimane, tel +27 12 444 4256, cell +27 82 450 8591, fax +27 86 581 8505 or email MediaDesk@energy.gov.za. Suzlon Energy investor relations, Dhaval Vakil, tel +91 22 6639 3252 or email dhaval.vakil@suzlon.com. Vestas, tel +45 97 30 00 00.
Industrial Projects
At the beginning of this year, South Africas Finance Minister Pravin Gordhan listed 43 major infrastructure projects during his Budget speech, amounting to R3.2-trillion in expenditure. For the medium-term expenditure framework period ahead, approved and budgeted infrastructure plans amount to R845-billion, of which just under R300-billion is allocated to the energy sector and R262-billion to transport and logistics projects. Believing that it is time to add capacity in preparation for the countrys future growth, Sephaku Cement has embarked on a project that entails the construction of the Aganang cement production facility, 25 km west of Lichtenburg, in the North West; a cement grinding facility, in Delmas, in Mpumalanga; and a 3 000 t/d clinker and cement production facility, near Dwaalboom, in Limpopo.
Source: Sepakhu Cement
13
Industrial Projects
SePHAKU CeMeNT PROJeCTS
Name and Location Sephaku Cement projects, South Africa. Client Sephaku Cement, a subsidiary of Nigeria-listed Dangote Cement (64%) and associate of JSE-listed Sephaku Holdings (36%). Project Description The projects entail the construction of the Aganang cement production facility, 25 km west of Lichtenburg, in the North West; a cement grinding facility, in Delmas, in Mpumalanga; and a 3 000 t/d clinker and cement production facility, near Dwaalboom, in Limpopo. It is estimated that the Aganang and Delmas cement plants will deliver about 2.5-million tons a year of cement. The Aganang operations will include limestone mining and chemical processing of raw materials to produce clinker. The limestone deposit is located on the Stiglingspan, Verdwaal and Klein Westerford farms, 7 km south-west of Itsoseng. Half of the clinker will be ground, milled and blended to produce cement. The rest of the clinker will be transported to the Delmas plant, for further processing, using y ash produced at the y ash classication plant at Kendal power station as an extender to produce the nal cement. The limestone quarry and the cement project have an expected life of between 30 and 48 years, depending on the availability of the delineated mineral resources and the guaranteed kiln production gures. Value Construction of the Aganang and Delmas plants will cost R3.3-billion. The balance of the nance will be funded by debt guaranteed by Dangote, a majority shareholder in the projects. The value of the clinker and cement production facility, in Limpopo, has not been disclosed. Duration Sephaku started construction on the Aganang cement production facility late in 2011, with rst production scheduled for November 2013, after the commissioning of the plants clinker in October 2013.
Source: Sepakhu Cement
Construction of the Limpopo plant is planned to start in 2014 and is expected to come into production in 2016. Latest Developments Eight-hundred employees of Chinese company Sinoma International Engineering are currently working on site to construct cement producer Sephaku Cements new Aganang cement production facility. Sephaku did initially go out to tender for South African contractors, but realised that no South African contractor would be willing to take a turnkey risk on such a plant, Sephaku Cement CEO Pieter Fourie told Mining Weekly. Fourie says that the xed prices the company received from Sinoma saved it 25% on total development. However, skills transfer and the use of local labour are provided for in the contract with Sinoma. One South African labourer is used for every three Chinese workers. Fourie reiterates that the Chinese workers will only be employed during the construction of the plant; therefore, permanent jobs for South Africans will be created during the entire life of the plant, which is expected to be between 30 and 40 years. Meanwhile, the construction of an Eskom substation was completed in March. A new 49 km, 132 kV incoming powerline has also been erected from Watershed, near Lichtenburg, to the plant, says Aganang civil engineer Jacques Minnie. Construction of a 4.2 km asphalt-surfaced access road from the existing Kapsteel road to the plant location is also under way. The road will consist of two 3.7-m-wide lanes, with two additional 0.8 m paved shoulders. It is expected to be completed in November. Key Contracts and Suppliers Nedbank Capital (lead nancial arranger), Sinoma International Engineering (construction), Eskom (power-supply agreement for the plant in the North West) and Africa Geo-Environmental Services (environmental consultant for Limpopo plant). On Budget and on Time? Despite a three-month delay in the original timeline, the projects remain on track and within budget. Contact Details for Project Information Dangote Cement, Anthony Chijiena, cell +234 807 049 0149. Sephaku Cement, tel +27 1861 555 2020 or fax +27 12 665 4391/ +27 12 684 6402; or CEO Pieter Fourie, tel +27 12 686 4800 or email pieter.fourie@sepcem.co.za; or Nokuthula Nxumalo, tel +27 12 686 4837 or cell +27 82 954 6644. Sinoma International Engineering, tel +86 10 6439 9518, fax +86 10 6439 9510 or email zcb@sinoma.com.cn.
Petrochemicals and Chemicals
South Africa has a highly developed synthetic fuels (synfuels) industry, in which State-owned PetroSA is one of the major players. PetroSA, which produces synfuels from natural gas at its 45 000 bl/d facility in Mossel Bay the largest natural GTL plant in the world is strongly advocating the development of a new $10-billion, 360 000 bl/d refinery at Coega, in the Eastern Cape, to secure South Africas liquid fuels requirements. This is despite South Africas existing refiners, comprising many of the worlds majors, opposing the construction of the new refinery and arguing that the country may be better served by investing in the existing refining base. On another front, chemicals, explosives and fertiliser group Omnias new nitric acid complex, in Sasolburg, has been successfully registered as a Clean Development Mechanism (CDM) project by the United Nations Framework Convention on Climate Change. The new green nitric acid complex, which started operating towards the end of March this year, will produce 1 000 t/d has been designed to generate between 250 000 and 350 000 carbon credits a year. This will total 650 000 t/y to 730 000 t/y of certified emission reductions for the new and the existing plant.
Source: Omnia
15
OMNiA HOLDiNGS NiTRiC ACiD COMPLeX

Name and Location Nitric acid complex, Free State, South Africa. Client Omnia Holdings. Project Description The complex comprises a nitric acid plant, an ammonium nitrate plant, a porous ammonium nitrate plant, a eet of 145 specialised ammonia rail tankers and other ancillary facilities. The nitric acid plant will produce 1 000 t/d, which is 40% more than the current plant. Value R1.4-billion was budgeted for the project. Duration The project was announced in 2010 and started operating towards the end of March 2012. Ramp-up to full capacity will take place in line with growth in the explosives and fertiliser markets.
Latest Developments Omnias nitric acid plant, which was launched at the end of March, has been successfully registered as a Clean Development Mechanism project by the United Nations Framework Convention on Climate Change. Omnia successfully completed the registration of its second project in ten months and is one of three companies in the world to obtain approval under the new method. The new nitric acid complex should generate between 250 000 to 350 000 carbon credits a year. This new facility will enable the company to prevent greenhouse gas emissions of about 500 000 t of carbon dioxide equivalent a year. Key Contracts and Suppliers ThyssenKrupp Uhde (EnviNOx system) and BME (construction). On Budget and on Time? The plant was completed on time and below budget. Contact Details for Project Information Omnia Holdings, tel +27 11 709 8850. Brunswick on behalf of Omnia, Taryn Wulfsohn, tel +27 11 502 7400. ThyssenKrupp Uhde head of corporate communications Detlef Markmann, tel +49 231 547 3813, fax + 49 231 547 2628 or email Detlef.Markmann1@thyssenkrupp.com.
Source: Omnia

PeTROSAS PROJeCT MTHOMBO
Name and Location Project Mthombo, Coega industrial development zone (IDZ), Eastern Cape, South Africa. Client PetroSA. Project Description South Africas State-owned oil company PetroSA plans to build a 360 000 bl/d crude oil renery, about 10 km from the Port of Ngqura, at Coega, near Port Elizabeth, in the Eastern Cape, to meet the growing demand for fuel in the country. The facility is designed to rene crude oil from the Atlantic Ocean, known as heavy sour, as opposed to the light sweet crude oil from the Middle East, which South Africas existing reneries are designed to turn into petroleum products. Once completed, the renery will be the biggest in Africa and will reduce South Africas reliance on oil imports, by supplementing the countrys growing diesel and petrol shortfall, with cleaner fuels. An electricity power plant is also planned as part of the project. It is envisaged that the power station will generate about 800 MW of electricity, of which 200 MW will be used for the renery. The excess power will be fed back into the national grid. Value The project cost is estimated at $11-billion. Duration Commissioning is scheduled for 2018/20. Latest Developments In May 2012, PetroSA and China Petroleum Corporation (Sinopec) sealed a joint study agreement (JSA) for Project Mthombo. The agreement, which will shape the business case for the crude oil renery, follows the signing of a memorandum of understanding between PetroSA and the Chinese State-owned company in 2011. The agreement will see the commissioning of studies over two phases during the next 18 months. Sinopec Engineering Incorporation has been contracted to undertake the studies. PetroSA and Sinopec have also established a steering committee to guide and manage the process, while a working group will be created to work closely with Sinopec Engineering. Phase 1 includes market studies and the review and selection of a business case, while Phase 2 will result in the development of a business case that is expected to prepare Project Mthombo for the front-end engineering and design (Feed) stage. The JSA will further align the partners and develop an integrated owners team in line with best practices for the planning and execution of the project. The results of the study could also be key in the development of governments 20-year liquid fuels plan and the work of the Presidential Infrastructure Coordinating Commission. Key Contracts and Suppliers KBC Advanced Technologies (project technical/commercial adviser); HSBC (project nance advisory service provider); KBR (feasibility and Feed study services); Edward Nathan Sonnenbergs (ENS) consortium (legal advisers); the Council for Scientic and Industrial Research, or CSIR, (environmental-impact assessment); Fairbrother Geotechnical Engineering (geotechnical investigation) and Sinopec Engineering (review, selection and development of business case). On Budget and on Time? Too early to state. Contact Details for Project Information CSIR, tel +27 12 841 2911, fax +27 12 349 1153 or email callcentre@csir.co.za. ENS, tel +27 21 410 2500, fax +27 21 410 2555 or email info@ens.co.za. Fairbrother Geotechnical Engineering, tel +27 21 715 5470 or fax +27 21 715 6369. HSBC, tel +27 21 405 6500 or fax +27 21 424 8745. KBR investor relations director Rob Kukla, tel +1 713 753 5082, fax +1 713 753 5353 or email investors@kbr.com. Project Mthombo, tel +27 21 929 3600, fax +27 21 929 3321 or email mthomboinfo@petrosa.co.za. PetroSA spokesperson Thabo Mabaso, tel +27 21 929 3000, fax +27 21 929 9294 or email thabo.mabaso@petrosa.co.za; or midstream new ventures VP Joern Falbe, tel +27 21 929 3600. Sinopec, tel +86 10 6916 6396, fax +86 10 6916 6645 or email guxb@sinopec.com.
17
Transport and Logistics

A strong emphasis was placed on South Africas multibillion-rand public infrastructure programme at the beginning of this year, including those projects that will unlock key mineral resources and exports. One of the key projects discussed was the improvement of the transportation of goods through the DurbanFree StateGauteng logistics and industrial corridor through the prioritisation of rail and port improvements, which will be supported significantly by State-owned transport and logistics group Transnets R300billion, seven-year Market Demand Strategy that will continue until 2018/19. The Durban port upgrade and expansion project, in South Africas KwaZulu-Natal province is significant, as it aims to increase the capacity of the Durban container terminal from 700 000 twenty-foot equivalent units (TEUs) to 820 000 TEUs by 2013 and eventually to 1.2-million TEUs by 2016/17. Another project, which is being implemented by State-owned company the South African National Roads Agency Limited, is the much-debated Gauteng Freeway Improvement Project, which comprises different phases to upgrade and implement new toll freeways of 561 km freeway network.

SANRALS GAUTeNG FReeWAY IMPROVeMeNT PROJeCT
Name and Location Gauteng Freeway Improvement Project (GFIP), South Africa. Client The project is managed by State-owned company South African National Roads Agency Limited (Sanral). Project Description The GFIP is a long-term freeway upgrade and expansion project, which entails the upgrade and construction of about 561 km of freeways. Value The Department of Transport, through Sanral, has invested more than R21-billion in the rst phase of the project. Duration Despite being delayed by a shortage of bitumen and adverse weather in 2011, Phase 1 of the project was substantially completed by the end of 2011. Latest Developments The National Treasury and Sanral have acted to have the temporary interdict, restraining the tolling of some of Gautengs freeways, set aside in the Constitutional Court until the full review of the system in November. A Constitutional Court decision will follow. Key Contracts and Suppliers Basil Read Interchange [I/C] (improvements at the N1 section); Siyavaya joint venture (JV), comprising Group 5, Power Construction, Liviero, Umso Construction and Bophelong Construction (work package A and E); GFI Contractors JV, comprising Wilson Bayly Holmes-Ovcon (WBHO), Sanyati Construction, Rainbow Construction, Glash Construction, Munasi Civil Contractors and EsorFranki Civils, formerly Patula Construction (work package B); GLMB JV, comprising Grinaker-LTA, a member of the Aveng group, Moseme Road Construction and Boitshoko Road Surfacing (work package C and F); Basil Read JV, comprising Roadcrete, Chavani Construction and Dipcivil or BRCD (work package D); CMC JV, comprising CMC di Ravenna South Africa and G4 Civils (work package G); Raubex Construction (upgrade of the R21); Power Group (upgrade of the R21 section 1 and 2); Tosas (subcontractor bituminous binders); ETC JV (multilane free-ow tolling system); Jet Demolition (demolition of Allandale I/C bridge); ARQ Consulting Engineers (design of the Lynnwood Glen pedestrian and pipe bridge); Cadcon, subcontractor of BRCD JV (manufacture of the Lynnwood Glen pedestrian and pipe bridge); Beka (luminaires); Esorfranki Civils (work package J); Goba SSI JV (Gilloolys yover); Much Asphalt, a Murray & Roberts company (asphalt supplier); and ETC JV, comprising Trafc Management Technologies and Kapsch TrafcCom (design and operate the open-road tolling system). On Budget and on Time? E-tolling was suspended on April 28, 2012, pending a full review. Contact Details for Project Information Sanral northern region manager of toll and trafc, and project manager Alex van Niekerk, tel +27 11 426 6200; or corporate communications manager Priya Pillay, tel +27 12 844 8000, fax +27 12 844 8200 or email pressofce@nra.co.za; or project manager: communications Wanda Cloete, tel +27 12 844 8000, fax +27 12 844 8200 or email wcloete@nra.co.za.
19

TRANSNeTS DURBAN PORT UPGRADe
Name and Location Durban port upgrade and expansion project, KwaZulu-Natal, South Africa. Client The Transnet National Ports Authority (TNPA) and Transnet Port Terminals (TPT), divisions of freight logistics company Transnet. Project Description The Durban container terminal (DCT) is the biggest and the busiest in the southern hemisphere and currently handles 64% of the countrys seaborne container trafc. Transnet is implementing an ambitious expansion project at Durban port and its container terminals, comprising several individual work packages, aimed at increasing the DCTs container-handling capacity. The main projects include the expansion of the DCT Pier 1, which will increase the capacity of the terminal from 700 000 20-foot equivalent units (TEUs) to 820 000 TEUs by 2013 and eventually to 1.2-million TEUs by 2016/17. In addition, the North quay at DCT Pier 2 will be extended to increase the capacity from 2.1-million TEU in 2011/12 to 2.5-million TEU by 2013/14 and to 3.3-million TEU by 2017/18. Container capacity is also being created in other terminals, such as the Durban Ro-Ro and Maydon Wharf terminal, through the acquisition of new equipment, including mobile cranes and various infrastructure upgrades. Transnet is further proposing the development, in phases, of a new dig-out port on the old Durban International Airport (DIA) site. Value The project forms part of an initial ve-year R110.5-billion capital expenditure programme to 2015/16, as well as the groups larger R300-billion, seven-year Market Demand Strategy to 2018/19. However, funding for the new port at the DIA is not included in the strategy. Transnet has indicated that it is in the nal stages of appointing a transaction adviser and is looking at the various funding options and models for private-sector participation in the project. Duration Ongoing. Latest Developments Transnet has started with the initial environmental-impact studies for the new R50-billion to R75-billion port, planned at the site of the old DIA site. Transnet will spend about R15-million on developing the project before the private sector will become involved. It is expected to be offered to the private sector on a build, operate and transfer basis. Envisaged is the construction of ve automotive berths, four bulk-liquids berths and 16 container berths that will be constructed in four phases and have a total capacity of ten-million TEUs. The project is expected to be completed by 2030. The environmental impact studies are expected to take between 18 months and 24 months to complete. Key Contracts and Suppliers Protekon Consulting & Construction; CPS; IMPSA-Jikelele joint venture (JV); Kalmar African National Engineering (ANE) JV; Hydroow and Liebherr Cranes (Germany); Grinaker-LTA, Interbeton and Bafokeng Bateman Services (Bafokeng Civil Works and Bateman Materials Handling) JV; DSE and Dorbyl (subcontractors steelwork fabrication); La Spezia container terminal, Italy (three Liebherr cranes); Kalmar (straddle carriers); DSE (manufacture of structural components and the erection, as well as installation of mechanical and electrical work); Protekon (planning and designing the infrastructure for the installation of the Liebherr cranes at the South Terminal); Protekon Construction (two new berths for Island View terminal), Dura Piling (piling contract Island View) Basil Read (main contractor Pier 1, civil and paving works DCT), Chryso South Africa (concrete products hard standing area, Pier 1), Lafarge Readymix (design and supply of concrete hard standing area, Pier 1), Natal Portland Cement or NPC (cement Pier 1), Kalmar Industries (30 straddle carriers), TBA (review, analysis and simulation of DCTs container-handling operations), Sarens Group (crawler crane); the Japan Bank for International Cooperation (loan nance); Shanghai Zhenhua Port Machinery Company (rail-mounted gantry cranes); Shanghai Zhenhua Heavy Industries Co (ZPMC)(design, manufacture, delivery and commissioning of cranes); Dredging International and Group Five (port-widening project); C3 Shared Services (codesign of security solution at Pier 1); Mott MacDonald in JV with Hatch and Goba (widening of Durban harbour entrance and construction of Pier 1 container terminal); Blue IQ (nancial coordinator for proposed container terminal at the old DIA site); and Liebherr (design, fabrication, delivery, erection, testing and commissioning of the cranes). On Budget and on Time? The project is on schedule and within budget. Contact Details for Project Information ANE Durban head ofce, tel +27 31 579 3301, fax +27 31 579 3323 or email aned@mweb.co.za. Basil Read, tel +27 11 418 6375 or fax +27 11 418 6334. Bateman, tel +27 11 899 9111 or email pgm@batemanbv.com. Chryso South Africa, tel +27 11 395 9700 or fax +27 11 397-6644; or branch manager Vishnu Beeput, tel +27 31 702 4379, cell +27 82 455 7696 or email vishnu@chrysosa.co.za. Dorbyl, tel +27 41 408 6009, fax +27 41 408 6035 or email dorbyl@guestroauto.com. Dredging International, tel +32 3 250 52 11, fax +32 3 250 56 50 or email dredging@dredging.com. DSE MD Kobus Marais, tel +27 11 871 4111, fax +27 11 871 4141, or email kmarais@grinaker-lta.co.za. Grinaker-LTA, tel +27 11 578 6000, fax +27 11 578 6161 or email enquiry@grinaker-lta.co.za. Group Five, tel +27 11 806 0111, fax +27 11 803 5520 or email info@g5.co.za. Kalmar Industries, tel +27 31 327 1800 or fax +27 31 327 1811. Lafarge Readymix, tel +27 31 275 7400. NPC, tel +27 31 450 4411 or fax +27 31 451 9010. Sarens Group, Hendrik Sarens, tel +32 52 319 397 or email hendrik.sarens@sarens.com. Transnet DCT, Siya Mhlakula, tel +27 31 361 6964 or email siya.mhlakula@transnet.net. Transnet Durban car terminal, Beverley Masson, tel +27 31 361 8702 or email beverley.masson@transnet.net. Transnet spokesperson Mboniso Sigonyela, tel +27 11 308 2384/2458, fax +27 11 308 2465, cell +27 83 463 7701 or email mboniso.sigonyela@transnet.net. Transnet Pier 1 container terminal, Michelle Philips, tel +27 31 361 6820 or email michelle.philips@transnet.net. TNPA Port of Durban port manager Ricky Bhikraj, tel +27 31 361 8821 or email ricky.bhikraj@transnet.net; or public affairs department, tel +27 31 361 8527. TPT Durban head ofce, tel +27 31 308 8333 or fax +27 31 308 8302; or chief communication ofcer Lunga Ngcobo, tel +27 31 308 8323, cell +27 083 288 9653 or email lunga.ngcobo@transet.net. ZPMC, Tel + 86 21 58396666, fax +86 21 58399555 or email mail@zpmc.com.
Water
South Africas highly fluctuating and unpredictable yearly rainfall makes it a water-scarce country. According to the 2030 Water Resources Group, established in 2008 by a consortium of business partners to contribute new insights about the evercritical issue of water-resource scarcity, the estimated demand for water in South Africa will reach 17.7-billion cubic metres in 2030. Minister of Water Affairs Edna Molewa has warned that South Africa could face a water crisis within the next decade if urgent steps are not taken. Against this backdrop an amount of R75-billion has been allocated over the next three years for water infrastructure, quality management, resource planning and support to local government to address the problem. One project that is already under development is the Trans-Caledon Tunnel Authoritys Olifants River Water Resources Development Project Phase 2 in South Africas Limpopo province, which aims to provide additional water resource infrastructure to the middle part of the Olifants water management area. Nonetheless, a much bigger capital injection than is currently budgeted for is required to ensure adequate water supply in South Africa, with the Department of Water Affairs calculating that current allocations amount to only 44% of the R573-billion that should be invested in water infrastructure, services and demand management over the next decade.
Source: Aurecon Source: Aurecon
21
Water
TRANS-CALeDON TUNNeL AUTHORiTYS OLiFANTS RiVeR WATeR ReSOURCeS DeVeLOPMeNT PROJeCT PHASe 2
Name and Location Olifants River Water Resources Development Project Phase 2 (ORWRDP-2), Limpopo, South Africa. Client The Department of Water Affairs, represented by the Trans-Caledon Tunnel Authority (TCTA) for Phases 2B to 2G. Project Description The ORWRDP comprises two phases and a number of subphases: Phase 1 involved the raising of the Flag Boshielo dam by ve metres, which has been completed. Phase 2 (Phases A to I) involves the development of additional water resource infrastructure in the middle part of the Olifants water management area. Phase 2A entails the construction of the De Hoop dam, which will be a bulk storage facility to augment the current water supply around the Steelpoort and Olifants rivers in Limpopo. Water will primarily be supplied to increasing mining activities around the Steelpoort area. The De Hoop dam, which will be the thirteenth-largest in the country, is planned to have a 347-million-cubic-metre reservoir capacity. This phase also includes the construction of a roller-compacted concrete (RCC) gravity dam on the Steelpoort river, en route from Stoffberg to Steelpoort, near the existing provincial road (the R555), of which a 20 km portion has been realigned. The dam wall is being built downstream from conuence of the Steelpoort and Klip rivers, the latter being a tributary joining from the eastern side. Phases 2B to 2G will entail the construction of a bulk distribution system to be funded and implemented by the TCTA. The ORWRDP-2 is consequently a multipurpose project, incorporating economic and social development objectives to cater for the water demands of commercial and social users. The project will consist of more than 200 km of pipelines that will vary in diameter from 800 mm to 1 800 mm, several pumpstations and storage reservoirs. Value The estimated cost for Phase 2A stands at R3.1-billion, of which R2.1-billion was spent in the 2010/11 nancial year, and R926-million will be spent during the next three years. The bulk distribution network is ultimately estimated at R13-billion. Duration The construction of the De Hoop dam started in July 2007, and was initially expected to be completed in April 2011; however, owing to the construction challenges, the dam will now be completed in April 2013. The rst construction contract of the bulk distribution system started in early 2012, and will be completed by the end of 2013. Further phases will be packaged into future contracts, with the last contract likely to be completed as late as 2017. Latest Developments Construction activities for the R1.2-billion Phase 2C and Phase 2H of the ORWRDP are currently being undertaken by construction group Basil Read, which entails the construction of 40 km of welded steel pipeline, varying in diameter from 1 300 mm to 1 800 mm, with wall thicknesses of between 5 mm and 14 mm. Basil Read was awarded the contract in February this year. Implementation started in April and will take 21 months to complete. Upon completion, the pipeline will deliver 49-million cubic metres of water a year. Another part of the contract is the construction of the Steelpoort pumpstation, which includes electrical, hydromechanical and instrumentation works with a capacity to deliver 2 m3/s of water. The project scope includes major earthworks, pipe installations and welding, road and river crossings, as well as pipeline chambers and appurtenant works. The R600-million Phase 2D, which will involve the construction of 25 km of pipeline, using 1 100 mm welded steel piping, as well as the construction of a terminal reservoir, is expected to be awarded within the next few months. Key Contracts and Suppliers For Phase 2A, De Hoop Main Road Contractor (realignment of the R555 road): Hillary, Liviero & Eigenbau (HLE) joint venture [JV] (main contractor). Main Civil Contractor (De Hoop dam): De Hoop Construction West and subcontractors B&E International and Quanza JV (supply of ne and course aggregate, crusher run and rip-rap); Limpopo RR & Construction (drilling and blasting); Regray Security (site security); SA Rock Drills (drilling and grouting of dam foundations); Drakensburg Technologies (supply of standard formwork); Formscaff (supply of special formwork); Allied Plant and Hire (erection of RCC conveyor system); SA French (erection of tower crane); NSI (commissioning and maintenance of batch plants); Twin Cities (supply of cement); Dura Pozz Bulk (supply of y ash); BASF (supply of cement additives); and Steeledale Reinforcing (supply and xing of reinforcement). For TCTA, the status of key contracts is as follows: The Aurecon Ndodana JV was awarded the design and supervision contract in 2009, following an open tender process. Basil Read was awarded the construction contract for Phase 2C and Phase 2H in February 2012. On Budget and on Time? As the De Hoop dam study area is an ecologically sensitive region, it required extensive environmental investigations before a record of decision was issued by the former Department of Environmental Affairs and Tourism (now the Department of Environmental Affairs) on November 21, 2005. This was revised on October 16, 2006, following resolution of appeals. Contact Details for Project Information DWA media liaison ofcer Linda Page, tel +27 12 336 8250, fax +27 12 336 6592 or email PageL@dwa.gov.za. De Hoop Dam project manager Richard Martin, tel +27 12 336 8072; De Hoop Dam contractors representative, Johan van Niekerk, tel +27 13 260 1110/1111, fax +27 13 260 1356 or email johan@dhcw.co.za. TCTA, tel +27 12 683 1200, fax +27 12 683 1300 or email info@tcta.co.za; or head of communications Thandi Mapukata, tel +27 12 683 1294 or email tmapukata@tcta.co.za. HLE JV, Ed Hillary, tel +27 15 293 1221.
MINING PROJECTS
Coal Diamonds Gold Iron-Ore Other Mining Sectors Platinum
Source: Debswana Source: Minas Moatize Source: Resource Generation
23
Coal
The coal-mining industry is of major significance to the South African economy. In addition to coal being one of the countrys leading mineral revenue generators, it is also the source of about 93% of the countrys electricity, 70% of its primary energy and 30% of its petroleum liquid fuels. For instance, Exxaro Resources Grootegeluk Medupi expansion project, in Limpopo, is part of the 40-year coal supply agreement, at an average of 14.6-million tons a year, that Exxaro secured with State-owned utility Eskom to supply the utilitys new Medupi power station, near Lephalale, which is currently under construction. Also in Limpopo is Resource Generations Boikarabelo project, which will produce about three-million tons of coal for the export market and three-million tons for the domestic market. On South Africas border, Mozambique is experiencing a coal growth spurt. Major global mining companies, such as Rio Tinto, are developing significant coking coal export projects, which will make Mozambique one of the worlds biggest coal exporters. Some of the proposed new mines include Rio Tintos Benga and Zambeze coal projects, as well as Beacon Hill Resources Minas Moatize project.
Source Beacon Hill Resources
Coal
BeACON HiLL ReSOURCeS MiNAS MOATiZe COAL PROJeCT

Name and Location Minas Moatize coal expansion project, Tete, Mozambique. Client Beacon Hill Resources, through its subsidiary, Minas Moatize. Project Description The project entails the expansion of the existing openpit rather than a greeneld development. The project proposes to develop a large-scale openpit mine, which will extract and process about four-million tons a year of run-of-mine (RoM) coal at steady-state production and be capable of producing 2.2-million tons of saleable coal a year over 11.5 years, 30% of which will be coking coal. The Minas Moatize expansion will be undertaken in three phases. The expansion is currently in its rst phase, with the existing wash plant operating at 600 000 t/y (Phase 1 of the coal handling and preparation plant, or CHPP); however, an additional two phases will be undertaken during the next 30 months. Phase 2 will involve the expansion of the current wash plant and will include the expansion of the Phase 1 CHPP, increasing production to 1.8-million tons a year RoM. Phase 3 will take production to four-million tons a year RoM and will involve the commissioning of the new life-of-mine wash plant. Value The total project capital estimate is $166-million, including $42-million for engineering, procurement and construction management, as well as contingency and other indirect costs. However, this gure could be reduced to $18-million, should Beacon Hill nance key infrastructure items, such as the CHPP; the power station,
through a build, own and operate arrangement; as well as use a mining contractor to mine the pit. Duration Phase 1 of the openpit operation is currently in progress. Beacon Hill has recently started the Phase 2 expansion. Phase 3 is expected to be commissioned by mid-2014. Latest Developments Beacon Hill has reported that optimisation continues on the expansion of its Moatize mine. The company has indicated that existing trucking operations will be sufcient to transport Phase 2 production, but that the start of Phase 3 is subject to certain key milestones, including rail allocation, the nalisation of the design of the Phase 3 CHPP, and nancing. A denitive feasibility study, published in February, identied several areas where additional investigation could lead to further optimisation of the design and construction of the Phase 3 CHPP. Beacon Hill has stated that the optimisation of the nal design of the Phase 3 CHPP is focused on identifying the optimum liberation size and design of the nes circuit. The liberation, otation and ltration tests on the large-diameter cores will investigate these properties to upgrade the overall quality of the coking coal and coking coal yield that will be achieved from the Phase 3 CHPP. Key Contracts and Suppliers Global Coke (offtake agreement); Tayanna Mozambique (excavation and coal extraction works) and Vitol Coal SA (marketing agreement). On Budget and on Time? Yes. Contact Details for Project Information Beacon Hill Resources executive chairperson Justin Lewis, tel +61 3 96279910 or email info@bhrplc.com.
25
Source: Beacon Hill Resources
Coal
EXXARO ReSOURCeS GROOTeGeLUK MeDUPi eXPANSiON PROJeCT
Name and Location Grootegeluk Medupi expansion project (GMEP), Limpopo, South Africa. Client Exxaro Resources. Project Description The project entails a browneld expansion of Exxaros Grootegeluk mine. Coal will be mined from the existing openpit at an accelerated rate, with the mines current production increasing from 19-million sales tons a year to 34-million sales tons a year. The expansion is part of the 40-year coal supply agreement, at an average of 14.6-million tons a year, that Exxaro secured with Eskom to supply the utilitys new Medupi power station, which is under construction near Lephalale, Limpopo. Value The project will cost R9.5-billion. Building of employees housing units will cost R590-million. Duration Full coal production is expected from 2015. Latest Developments The rst coal, based on a revised ramp-up schedule agreed with Eskom has already been delivered to Eskom. In terms of the revised agreement, 160 000 t of coal will be delivered during 2012 for the commissioning of the respective coal handling systems, while the coal ramp-up will start during March 2013 and continue until mid-2016. Under the initial agreement, signed in September 2008, Exxaro Coal was meant to supply an average of 14.6-million tons a year to the power station, with delivery planned from the fourth quarter of 2011, ramping-up to full production by 2014. Key Contracts and Suppliers LSL Consulting, SSG Consulting and Engineering & Projects Company (E+PC) (design); Arup (civils); Melco (conveyor equipment supplier) Consolidated Power Projects (overhead power lines and transformers); M Projects (building upfront infrastructure); Concor Holdings (bulk earthworks plant area, blending and load-out); PRG Electrical Engineering & Services (construction power); MMD Mineral Sizing, Africa (inpit crushing system); Basil Read (in-plant workshop); Makeshift (relocation of piping and civil services); FLSmidth (stackers and reclaimers); Stefanutti Stocks Civils (RoM area civil); Aveng Engineering & Projects Company (coal-washing plant) and SMEI Projects, assisting SCMEIPP (plant area civil; thickeners civil; plant area structural, mechanical, platework and piping [SMPP]; mining area bulk earthworks, buildings administration; blending and load-out civil; 11 kV distribution; low-voltage and instrumentation plant area; blending and load out SMPP; lter plant SMPP and RoM area SMPP). On Budget and on Time? The construction of the GMEP continues to progress as planned and within budget. Contact Details for Project Information Exxaro Resources corporate communication manager Hilton Atkinson, tel +27 12 307 4843 or email hilton.atkinson@exxaro.com.
Coal
ReSOURCe GeNeRATiONS BOiKARABeLO COAL PROJeCT
Name and Location Boikarabelo coal project, Limpopo, South Africa. Client Resource Generation (ResGen). Project Description Boikarabelo has probable reserves of 745-million tons, a measured resource of 1.1-billion tons, an indicated resource of 551.7-million tons and an inferred resource of 1.5-billion tons. The Boikarabelo coal seam is between 20 m and 30 m below the surface, enabling low-cost, opencut mining. The seam is between 120 m and 130 m thick, with zones of varying quality thermal and soft coking coal. The mine will be developed in a two-phased approach to limit upfront capital expenditure (capex). The rst phase will be able to deliver about 12-million tons of run-of-mine coal a year, which will equate to around six-million tons of product coal. Of this, three-million tons are destined for the export market and three-million tons will be used domestically. Phase 2, planned for 2019, will involve ramping up production to 20-million tons of product coal. The project includes a 36 km rail link to the existing rail network. Boikarabelo hosts a life-of-mine of up to 100 years. Value The initial capex is estimated at R5.5-billion, with project nancing targeted for about 60%. Duration ResGens black economic-empowerment subsidiary, Ledjadja Coal, received the Boikarabelo mining rights from the Department of Mineral Resources in April 2011. Construction of the mine is scheduled to start by the rst quarter of 2013 and will take about 24 months to complete. The mine is expected to begin production in 2015. Latest Developments Ledjadja has overcome its nal major hurdle before proceeding to nalise project nance for its Boikarabelo project, with the signing of a ten-year take-or-pay rail haulage contract with Transnet Freight Rail (TFR) to haul up to six-million tons a year of coal. The contract will enable ResGen to progress project nance with banks, which have conrmed their eagerness to provide funding. Once all debt and equity funding is in place, the company will then begin construction of the mine and infrastructure. The contract term is for an initial ten years, with the provision to extend for another ten.
Source: Resource Generation
The contract allows for four-million tons in the rst year, ve-million tons in the second year and six-million tons a year thereafter. Should Eskom elect to contract directly with TFR (which is Eskoms intention) for the proposed domestic purchases (currently under negotiation), the take-or-pay quantities in the contract will be reduced to export tonnage only. The contract further species an indicative tariff for the current year. The actual tariff will be determined yearly by negotiation. Further, Eskom has recently committed to supply power to the mine from its new Medupi power station beginning in 2014. Key Contracts and Suppliers Digby Wells Environmental (mining right application, mine waste licence, environmental authorisation process for power plant); RSV Enco (engineering, procurement and construction management for mine construction) and RCE (rail design and construction). On Budget and on Time? First production has been delayed to the rst half of 2015. Further, detailed mining and engineering plans have reduced the estimated rst-stage cost of the mine to $630-million. Contact Details for Project Information ResGen (Australia), tel +61 2 9376 9000, fax +61 2 9376 9013 or email info@resgen.com.au; or (South Africa), tel +27 12 345 1057 or fax +27 86 539 3792. Digby Wells Environmental, tel +27 11 789-9495 or +27 11 504 1400, fax +27 11 789 9498 or +27 11 504 1446, or email info@digbywells.co.za. RSV Enco, tel +27 11 498 6010, fax + 27 11 498 6210 or email enco@rsvenco.com. RCE, tel +27 12 450 0040 or fax +27 12 450 0060.
27
Coal
RiO TiNTO MOZAMBiQUe COALS BeNGA COAL PROJeCT
Name and Location Benga coal project, near Tete, Mozambique. Client Benga is operated by Rio Tinto (65%) in joint venture with Tata Steel (35%). Project Description The project is being developed in three principal stages, contemplated to align with the completion and subsequent expansion of rail, port and river barging infrastructure in Mozambique. The initial Stage 1 development at 5.3-million run-of-mine (RoM) tons a year, will produce about 1.7-million tons of high-quality hard coking coal a year and 300 000 t/y of export thermal coal. The Stage 2 expansion includes the installation of a second module of the coal handling and preparation plant (CHPP) and an increase in production to 10.6-million RoM tons a year, boosting output to 3.3-million tons a year high-quality hard coking coal and two-million tons a year export thermal coal. The nal stage is expected to increase coal production to about 20-million RoM tons a year, through the installation of two additional CHPP modules. This will depend, among other things, on future coal market conditions, and the availability of port, rail and barging capacity at the time. Value Stage 1 $270-million, excluding working capital. Stage 2 $150-million. Duration The rst coal shipment from Stage 1 of the Benga mine left the Port of Beira on June 25, 2012. The Stage 2 production will start no later than 2014, and will be timed to coincide with the opening of a new purpose-built multiuser coal terminal, as well as the start of barging operations. Latest Developments In June, Rio Tinto reported that the Benga mines rst shipment of 34 000 t of high-quality hard coking coal was bound for a steel mill in India.
Key Contracts and Suppliers MCC Contractors (mining contract for Benga Stage 1); Sedgman Africa (CHPP design, supply and construction contracts); Ludowici (supply of two RC2020 reux classiers and lined piping); Cosira Group (supply contract for coal processing and wash plant) and National Railway Equipment and TV Gredlelj (supply of diesel locomotives). On Budget and on Time? Not stated. Contact Details for Project Information Rio Tinto media contact Tony Shaffer, tel +44 20 7781 1138, cell +44 79 2004 1003, fax +44 20 7781 1802 or email media.enquiries@riotinto.com. Sedgman MD Mark Read, tel +61 7 3514 1000. MCC Contractors, tel +27 11 990 6600 or fax +27 11 310 1988. Ludowici, tel +61 7 3121 2900, fax +61 7 3121 2901 or email enquiry@ludowici.com.au. National Railway Equipment, tel +618 241 9270 or fax +618 241 9275. TV Gredlelj, tel +38516328500 or email gredelj@tzv-gredelj.hr.
Source: Rio Tinto
Coal
RiO TiNTO MOZAMBiQUe COALS ZAMBeZe COAL PROJeCT
Name and Location Zambeze coal project, near Tete, Mozambique. Client Rio Tinto has successfully acquired 100% of Riversdale Mining. Project Description The project proposes the development of Rio Tintos second major coal project in the Moatize basin, adjacent to the companys Benga coal project. The tenement is characterised by relatively at topography and is contiguous to excellent infrastructure, including the City of Tete, power, water, sealed roads, rail, the international airport and direct access to the Zambezi river. The project structure includes 22 coal seams outcropping over a strike length of 14 km. The proposed 247.4 km2 Zambeze project has an estimated coal resource of nine-billion tons. The total coal resource includes about 2.3-billion tons in the indicated category. Based on washability analyses of potential coal products that could be produced after beneciation, the project includes an export hard coking coal and a secondary thermal coal product, consisting of high-energy export thermal coal for the Indian and African markets. Value The total value of the project has not been disclosed. Duration The project is estimated to start production in 2014. Latest Developments None stated. Key Contracts and Suppliers Sedgman South Africa and Pilot Crushtec (modular coal handling plant). On Budget and on Time? Not stated. Contact Details for Project Information Rio Tinto media contact Tony Shaffer, tel +44 20 7781 1138, cell +44 79 2004 1003, fax +44 20 7781 1802 or email media.enquiries@riotinto.com. Sedgman South Africa, tel + 27 12 648 2000 or fax +27 12 648 2299. Pilot Crushtec, tel +27 11 842 5600 or fax +27 11 842 5610.
29
Source: Bloomberg
Diamonds
While Botswana is in the process of diversifying into coal, which it regards as black diamonds, but also into copper/silver mining, Debswana a 50:50 diamond venture between diamond giant De Beers and the Botswana government continues to contribute an estimated 30% of the gross domestic product of the country. Debswanas Jwaneng diamond mine alone contributes 70% of the companys earnings and the Cut 8 expansion at the mine will ensure profitable and continuous production at the mine until at least 2025. It will allow diamond miners to access 91-million tons of ore that will yield about 102-million carats of diamonds.
Source: Debswana
Diamonds
DeBSWANAS CUT 8 PROJeCT
Name and Location Cut 8 project, Jwaneng diamond mine, Botswana. Client Debswana a joint venture (JV) between the government of Botswana and De Beers. Project Description The project involves a major extension at the Jwaneng mine. The project, known as Cut 8, will ensure protable and continuous production at the mine until at least 2025. The development will require the removal of 658-million tons of waste rock to allow diamond miners to access 91-million tons of ore that will yield about 102-million carats of diamonds. The waste stripping will directly affect existing parts of the mine, with some existing buildings and infrastructure having to be moved or modied. It also required a large amount of new infrastructure to be constructed and installed. The fact that the waste prole is so large will move Jwaneng towards the status of being one of the worlds super pits. Value Debswana invested $500-million in the infrastructure construction project between 2009 and 2012. Taking into account all project stages, including feasibility, design, implementation and mining operations, as well as the cost of plant and equipment, the estimated total project investment is likely to be $3-billion over the next 15 years. Duration The Cut 8 project began mid-2009 with early works in preparation for construction, which started at the end of that year. Early construction prepared the northern part of the pit for Cut-8 Phase 1 mining to start in January 2010. This was followed by three years of construction and demolition to progressively make more areas of the pit accessible for Cut 8 mining. Full access to the pit was achieved during 2011 and mining started on the central section in October 2011. Construction was completed by mid-2012. To date, more than 60-million tons of waste have been removed. Cut 8 mining is now at full operation and aims to achieve 110-million tons a year from 2013 onwards. Latest Developments Fluor recently hosted a function to mark the completion and handover of the project to the mine. The Cut 8 project was executed in three phases to support and align with the three areas of waste mining in January 2010, January 2011 and January 2012. All three of these major milestones were successfully achieved. Key aspects of the project included: a 1 700-person construction camp on the outskirts of Jwaneng town; new conveyors for tailings and recrush; a personnel control centre; a new front-end ore feed between the primary crusher and crusher/scrubber building; a full year of structural modications to the existing crusher/scrubber building; a new tripper conveyor for the crushing plant; three new cascade conveyors for the scrubbing plant; a new earthmoving vehicle (EMV) complex; green area services to supply the EMV complex; new utilities and services; upgrading the existing 33 kV reticulation; construction of a new 33 kV pit ring; two years of demolition work that included conveyors, transfer towers, underground tunnels, major crushing facilities, utilities and buildings, as well as three major shutdowns that were executed on a continuous 24-hour basis. According to Fluor project manager Jim Picken the most signicant challenges of the construction works were the numerous interfaces of the existing mine facilities, services and systems, as well as the execution thereof with minimal disruption and impact to production, while maintaining schedule. Key Contracts and Suppliers Fluor Corporation (feasibility study and engineering, procurement and construction management); Leighton Africa (Phase 2 mining services); Bateman Botswana (engineering); Basil Read Bothakga Burrow JV (Phase 1 mining contractor); Majwe JV (mining services contract for Phase 2). On Budget and on Time? The project was completed within the original budget of $500-million and all major milestones were achieved to enable Cut 8 mining to proceed without major disruptions. Contact Details for Project Information Basil Read, Jenny Smith, tel +27 11 418 6466 or email jsmith@basilread.co.za. De Beers Botswana, Chipo Morapedi, tel +267 361 5205. Debswana, Esther Kanaimba, tel +267 361 4216. Fluor Corporation media relations Keith Stephens, tel +1 469 398 7624 or Brian Mershon, tel +1 469 398 7621. Leighton Holdings CEO David Stewart, tel +61 2 9925 6077; or CFO Peter Gregg, tel +61 2 9925 6048.
31
Source: Anglo American Corporation
Gold
South Africas gold production has fallen significantly in the past decade, despite a notable increase in the gold price during that period. The country, which was once the worlds largest gold miner, currently produces only about 10% of the global output, but continues to host one of the largest gold resources in the world. Some analysts contend that South Africas gold output is likely to continue its decline in the coming years, as several of the countrys mine shafts are coming to the end of their economic lives and project activity, which brings new ounces into production, has been fairly limited. Nonetheless, while there may be some merit to this observation, there are, in fact, several projects under development in the local gold industry. Among them is Gold Fields South Deep gold mine expansion, in Gauteng, whose gold plant expansion from 220 000 t/m to 330 000 t/m is under construction, with commissioning planned before the end of the year. Further, there is Witwatersrand Consolidated Gold Resources Bloemhoek gold project, which has an estimated probable reserve of 31.6-million tons, at a plant head grade of 5.3 g/t gold, containing 5.4-million ounces of gold and the De Bron-Merriespruit gold project, which is expected to have an average gold production of 200 000 oz/y over an 18-year life-of-mine.
Source: Gold Fields
Gold
GOLD FieLDS SOUTH DeeP GOLD MiNe eXPANSiON PROJeCT
Name and Location South Deep gold mine expansion, Gauteng, South Africa. Client Gold Fields. Project Description The project comprises a main shaft and a ventilation shaft collectively referred to as the Twin Shaft complex. The Twin Shaft complex will have a combined hoisting capacity of 330 000 t/m of ore. The main shaft was completed in 2004 and comprises a single drop to a depth of 2 995 m. The ventilation has been deepened from 2 760 m to about 2 950 m and is currently being equipped, which comprises ore-storage silos and conveyor belts at shaft bottom, a new rock winder and new headgear. The completion of the vent shaft remains on track for commissioning by the second half of 2012. The mines headgear at the vent shaft was completed in 2011, using one of the largest fabricated steel headgear frames in the world. Gold Fields also initiated the expansion of the South Deep metallurgical plant, which is being constructed on an accelerated schedule, with commissioning planned for the second half of 2012. This will increase processing capacity from 220 000 t/m to 330 000 t/m. During 2011, the mine also completed construction of the centralised tailings storage facility, developed and installed infrastructure around the shaft systems and changed to full plant tailings backll for increased production levels. The South Shaft complex, which is currently being refurbished, will add an additional 120 000 t/m of hoisting capacity to the mine, bringing the total combined hoisting capacity to 450 000 t/m. The South Deep operation currently has a resource of 63.4-million ounces and a reserve of 37-million ascertained ounces, which would give the operation a life-of-mine of more than 50 years. Value Gold Fields has allocated R8.5-billion until the end of 2015. In the quarter to June 2012, capital expenditure decreased from R655-million in the March quarter to R643-million in the June quarter. The majority of the expenditure was on development, the ventilation shaft deepening and infrastructure, the metallurgical plant expansion, trackless equipment and the full plant tailings backll. Duration The deepening and equipping of the Twin vent shaft, as well as the surface plant expansion, are scheduled for completion during 2012. A production run-rate of around 700 000 oz/y of gold is expected to be reached by the end of 2015. Latest Developments Gold Fields has reported in its results for the quarter ended June 30, 2012, that development at South Deep increased from 2 440 m in the March quarter to 2 952 m in the June quarter. The new mine capital development in Phase 1, sub 95 level, increased from 688 m to 887 m. Development in the current mine areas above 95 level increased from 1 516 m to 2 008 m. Vertical development decreased from 236 m to 57 m, owing to a change in mine design to facilitate the build-up to full production. Part of the eet is being deployed to install additional secondary support in the haulages to provide long-term sustainability of the operations. Destress mining increased by 52%, from 7 811 m2 in the March quarter to 11 851 m2 in the June quarter. The destress attack points in the future mine area have increased from eight in the March quarter to 11 in the June quarter. The current mine attack points have remained at seven. Meanwhile, Gold Fields reports that the South Deep capital infrastructure programme continues to meet its key delivery dates to support the build-up to a run rate of 700 000 oz/y by the end of 2015. In the June 2012 quarter production increased by 33% to 77 800 oz. The ventilation shaft deepening project remains on track for commissioning in the December 2012 quarter and the additional rock hoisting is expected to build to a nameplate capacity of 195 000 t/m by the last quarter of 2013. This, together with the existing main shaft capacity of 175 000 t/m, is expected to adequately sustain the full production to the mill. The gold plant expansion from 220 000 t/m to 330 000 t/m is under construction, with commissioning planned before the end of the year. Key Contracts and Suppliers Murray & Roberts Cementation (mine development and shaft deepening); Wilson Bayley Holmes-Ovcon (WBHO) and Wade Walker (tailings dam); Redpath (battrice panel installation and replacement of South Shaft steelwork); MM&G (steelwork fabrication); Steel Services and Allied Industries, Hatch and Cadhouse Detailers (ventilation shaft headgear); Newrack (secondary support); TWP (metallurgical plant design) Howden (commissioning of main surface ventilation fans): AEL Mining Services (blasting contract to deepen ventilation shaft); and Sarens South Africa and Crane Corporation (overhead crane for the ventilation shaft headgear). On Budget and on Time? Yes. Contact Details for Project Information Gold Fields corporate affairs manager Sven Lunsche, tel +27 11 562 9763 or email sven.lunsche@goldelds.co.za. Murray & Roberts Cementation, Mike Wells, tel +27 11 201 5000. Civcon, Lex Henning, tel +27 11 206 9660. Redpath, Gert Roets, tel +27 11 974 2051. MM&G, Mike Dos Santos, tel +27 11 914 4740. AEL Mining Services, tel +27 11 606 0000 or fax +27 11 605 0000. Wade Walker, Tim Wakeeld, tel +27 11 466 0377.
33
Gold
WiTWATeRSRAND CONSOLiDATeD GOLD ReSOURCeS BLOeMHOeK GOLD PROJeCT
Name and Location Bloemhoek gold project, Free State, South Africa. Client Witwatersrand Consolidated Gold Resources (Wits Gold) currently owns 100% of the prospecting rights to Bloemhoek. Project Description A prefeasibility study (PFS) on the Bloemhoek gold project has indicated that the project is both technically sound and economically viable. Using only indicated resources and applying appropriate modifying factors for the mining method selected, resulted in the denition of an estimated probable reserve of 31.6-million tons, at a plant head grade of 5.3 g/t gold, containing 5.4-million ounces of gold. Principal targets at the operation include the Beatrix and Kalkoenkrans reefs, at depths ranging between 1 300 m and 2 400 m below surface. Envisaged is the sinking of a twin shaft system to 1 951 m, with the deeper areas being accessed by systems of declines. A remote vertical ventilation shaft has been included in the schedule, to reduce underground development to remote blocks of reef. Value Total life-of-mine capital expenditure is estimated at R7.66-billion. Duration Not stated. Latest Developments In June 2012, Wits Gold indicated that Bloemhoek project would potentially be developed in partnership with joint venture collaborators. Meanwhile, in February this year, Wits Gold applied for a right to mine gold, silver and uranium over its combined prospecting rights in the Southern Free State goldeld. The mining right covered a 149.65 km2 area and included the De Bron-Merriespruit (DBM), Bloemhoek, Robijn and Hakkies project areas. Key Contracts and Suppliers Turnberry Projects (PFS); Ukwazi Mining Solutions (mine design and production scheduling); Geosearch (drilling); Anglo Research Laboratories (assay analysis); Snowden Group (resource estimates) and AMD Consulting (three-dimensional structural modelling). On Budget and on Time? Wits Gold is currently focused on the adjacent, shallower DBM project area, where the results of a PFS were released in June 2012. Contact Details for Project Information Anglo Research Laboratories, tel +27 11 842 2000, fax +27 11 842 2154 or email info@angloresearch.com. Geosearch, tel +27 11 970 3200, fax +27 11 970 3206 or email mail@geosearch.co.za. Snowden Group, tel +27 11 782 2379, fax +27 11 782 2396 or email johannesburg@snowdengroup.com. Turnberry Projects, tel +27 11 781 0116. Ukwazi Mining Solutions, tel +27 12 665 2154, fax +27 12 665 1176 or email info@ukwazi.com. Wits Gold, tel +27 11 832 1749 or fax +27 11 838 3208; or CEO Philip Kotze, email philip@witsgold.com; or corporate development executive Hethen Hira, email hethenh@witsgold.com.
Gold
WiTWATeRSRAND CONSOLiDATeD GOLD ReSOURCeS De BRONMeRRieSPRUiT GOLD PROJeCT
Name and Location De Bron-Merriespruit (DBM) gold project, Free State, South Africa. Client JSE- and TSX-listed Witwatersrand Consolidated Gold Resources (Wits Gold). Project Description The DBM project is the result of the consolidation of Wits Golds original De Bron area with the unmined southern portion of the Merriespruit mine, which was acquired from the Harmony Group in 2011. It comprises a triangular block measuring about 22 km, located between the main Welkom goldeld to the north and the Beatrix and Joel mines to the south. Within the project area, four gold-bearing conglomerates are developed. These consist of the Beatrix, Kalkoenkrans, B and Leader reefs, all of which occur at the relatively shallow depths of between 480 m and 1 250 m below surface. The results of a prefeasibility study (PFS) on the project released in June delineated a probable gold reserve of 23.5-million tons at a grade of 4.1 g/t gold (3.1-million ounces), which is contained within that portion of the resource at DBM that occurs at depths shallower than 1 000 m and which contains an indicated mineral resource of 26.7-million tons at 5.8 g/t gold (4.99-million ounces). DBM will be a shallow underground mine, comprising a planned twin-shaft system to 660 m, with average gold production expected to be 200 000 oz/y over an 18-year life-of-mine. Production is expected to peak at 246 777 oz at 5.5 g/t during Year 9 and rst gold production is expected 47 months after shaft sinking has begun. Value Peak capital funding is estimated at R2.37-billion. Duration The mine is targeted to be brought into production by 2016. Latest Developments Turgis Consulting and MDM Engineering were appointed in August 2012 to complete the nal feasibility study at Wits Golds DBM project. Turgis will be responsible for the detailed engineering and mine designs, while MDM Engineering will focus on the metallurgical plant and related design aspects. The expertise brought in by MDM will result in the fast-tracking of the nal feasibility study. The appointments were effective immediately and the detailed study is expected to be completed during the third quarter of 2013. The feasibility study will further rene certain aspects identied in the PFS that will aim to improve mining efciencies by introducing safer, semimechanised mining equipment and down-dip mining methodologies. At R400 000/kg of gold, the pretax net present value (5%) of the project is R7.3-billion with an internal rate of return (IRR) of 28%. The PFS further shows that the semimechanised option increases IRR to 30.9% (at the above prices) and the pretax net present value (5%) to R10.2 billion. In addition, further upside exists by the study investigating the inclusion, through additional drilling, of the existing shallow inferred resources of 5.97-million tons at 5.7 g/t gold that is readily mineable from the current mine design. Wits Gold owns 100% of the DBM and adjacent Bloemhoek projects where the Department of Mineral Resources accepted the companys mining rights application in February 2012. The granting of the mining right is expected within 12 months of acceptance, once the company complies with
requirements in terms of the Minerals Act, such as obligations in terms of feasibility studies, environmental compliance and social and labour plan commitments. Key Contracts and Suppliers Turgis Consulting (scoping and prefeasibility studies, as well as detailed engineering and mine designs for the bankable feasibility study (BFS)); MDM Engineering (metallurgical plant and related design aspects), Geosearch and Turnstone Drilling (drilling contractors); SGS Laboratories (assay analysis) and GCS (environmental-impact assessment). On Budget and on Time? The PFS was completed on budget and on time. The BFS is expected to be completed in the second half of 2013. Contact Details for Project Information Wits Gold investor relations manager Hethen Hira, tel +27 11 832 1749, fax +27 11 838 3208 or email hethenh@witsgold.com. Turgis Consulting, tel +27 11 476 2279. MDM Engineering, tel +27 11 993 4300, fax +27 11 886 9306 or email info@mdm-engineering.com. Geosearch, tel +27 11 397 3880, fax +27 11 397 6011 or email mail@geosearchgroup.com. Turnstone Drilling, tel +27 18 771 2226 and fax +27 18 771 2114. SGS Laboratories, + tel 27 11 680 3466 or fax +27 11 433 3654. GCS, tel +2711 803 5726, fax +2711 803 5745 or email info@gcs-sa.biz.
35
Source: Bloomberg
Iron-Ore
Global iron-ore production is currently dominated by Vale, Rio Tinto and BHP Billiton, and in South Africa by Kumba Iron Ore and Assmang (a 50:50 joint venture between Assore and African Rainbow Minerals). Kumba has said that iron-ore mining presents an exciting growth opportunity for South Africa and could double production to about 100-million tons a year between 2015 and 2020, if appropriate conditions exist. The companys Kolomela iron-ore project, in the Northern Cape, is currently ramping up to full production and Kumba has already started studies to expand the mine.
Source: Kumba Iron Ore
Meanwhile, Assmangs Khumani iron-ore project has expended production from 10-million tons a year to 16-million tons a year and has been successfully handed over to the mine. Additional improvements are under way, which will improve ore recovery and extend the life of the mine.
Iron-Ore
ASSMANGS KHUMANi iRON-ORe eXPANSiON PROJeCT
Name and Location Khumani iron-ore mine expansion project, Northern Cape, South Africa. Client Assmang, a 50:50 joint venture (JV) between Assore and African Rainbow Minerals (ARM). Project Description The Khumani project involved the development of a greeneld iron-ore export mine on the Bruce, King, and Mokaning farms, which are near Kathu, in the Northern Cape. The rst phase of the project involved the development of a ten-millionton-a-year iron-ore export mine. The Khumani expansion project entails the expansion of the mine from ten-million tons a year to 16-million tons a year. The expansion will include the development of a new mining area, exploiting additional orebodies. To service the new mining area, the primary and secondary crushers will be duplicated, while a new overland conveyor will be constructed. The existing washing, screening and beneciation plant will be expanded to allow for the increased capacity. Storage areas for run-of-mine materials and product will also need to be expanded, as will the primary thickener and paste plant. A new rail loop and load-out station will be built, as well as a rail link directly to the local line. Of the six-million tons expansion, four-million tons will be for the export market and two-million tons possibly for the domestic market. Assmang has received a commitment from Transnet to extend the current iron-ore export allocation from ten-million tons a year to 14-million tons a year, increasing Assmangs export capacity accordingly. This will dovetail with the iron-ore channel expansion from 47-million tons a year to 58-million tons a year. Value Phase 1 and phase 1A to ten-million tons a year cost R4.5-billion. The estimated total capital expenditure (capex) for the proposed Khumani expansion project is R6.7-billion. Duration Phase 1A has been completed and the mine is ramping up to ten-million tons a year. A feasibility study on the second phase of the project was completed in June 2009. Production ramp-up was expected to be begin in January 2012, with full production in the 2013 nancial year. Latest Developments The project is currently ramping up to full production well ahead of schedule. Key Contracts and Suppliers For the Khumani mine expansion: Africon (consulting services for detailed earthworks design for King & Parsons); Alliance Cost Management Services (consulting services for quantity surveying (Civils & SMP)); Alstom (signal construction at local siding Parson); Alstom, Megatron, ABB, Siemens (design, fabricate, supply and MV switchgear for King); ATC (supply and delivery of cable); B & W lnstrumentation (installation of the 22 kV reticulation ring and installation of ID tags for the 22-kV overhead); B&W (supply and erect of construction power for King & Parsons); Benja Trading (domestic waste bins and removal of waste); Bosworth (fabricate and supply of conveyor pulleys and bearings for King); Brelko (supply of conveyor belt scrapers for King); Bulk Solids Flow (consulting services); Burgess & Burger (fabricate, supply and erect of King infrastructure SMP package 1); Charles Corbett Photography (photographic services); Concor (civil and earthworks works); Control Lab (civil and earthwork quality surveillance); Cosira lMS (supply and install tunnel vacuum cleaner King); Crane Load Tech, Terex, MMS (supply of mobile cranes King); IDesSoft (supply of instrumentation and electrical design software package - King and Parsons); Desta Power, Alstom, Steelcor, Zest (design, fabricate and supply of distribution transformers for King); IDesta Power, Alstom, Steelcor, Zest (design, fabricate and supply of distribution transformers for Parsons); DRA (engineering procurement and construction management early works contract C2917); ECE (design, fabricate, supply and erect of pressurisation systems for crushers); Eclipse (supply of control room computer equipment King); ECMP (design, fabricate, supply and erect compartmentalisation of tails dam King); Eisen (supply of impact idlers for King); ER Signs & Safety (supply of safety and construction signage); Fabricated Steel (supply and erect temporary mobile construction ofces & ablutions King and Parsons); FLSmidth (design, fabricate and supply of cyclones Parsons); FPS (fabricate, supply and erection of piping at PE rail crossing King); FSM (supply and erect permanent prefabricated buildings/ofces King and Parsons); Hatch (consulting services); Humboldt Wedag (Supply lumpy and nes jigs); lnkjet Technology Supplies (eet vehicle signage); Ivuzi (consulting services); Joest (design, fabricate and supply of screens and vibrating feeders for King and Parsons); KPMG (consulting services for escalation variables); Lilliput (Installation of Lilliput SBC 6000 King); M&J Engineering (design, fabricate and supply of WEBA chutes for King); Malvern (designs, fabricate and supply of conveyor belt magnets King); Matador (supply of conveyor belting for King); Matthee Furniture Removals (transportation of goods); Metso (supply of secondary and tertiary crushers [long-lead items] King and Parson, supply of centrifugal, spillage and clean water pumps King & Parsons, and supply of primary crusher (long lead items]); Moody International (consulting services); Morris Materials (design, fabricate and supply of EOT cranes for King); Ofce Furniture Suppliers (supply of construction ofce furniture for King and Parsons); Osborn (design, fabricate and supply of apron feeders for King); Qnsoft (consulting services); Rufco (fabricate, supply and erect of King overland conveyors - SMP package 213); Saco Systems (supply and erect access control/time and attendance King, Parsons and local siding); Sandvik (design, fabricate, supply and erect run-of-mine stackers and reclaimers Parsons); Scaw Metals Eclipse East Foundry (supply of manganese liners King and Parsons); Sectional Poles (design, fabricate, supply and erect of high mast lighting King and Parsons); Siemens (supply of conveyor drives for King); Smart Words Editing Services (editing of the KEP feasibility); SMEI (fabricate, supply and erect of king structures and conveyors SMP package 2A); Snowden Mining (mine planning services); SRK Consulting Engineers (consulting services for geotechnical drilling at King and Parsons); Sunglide 28 (design, supply and install of construction water King and Parsons); Swift Flite (charter ights to Sishen); Vivo-Tech Engineering (consulting services); Vuleka (consulting services); WEC (supply and erect sewage plant King and Parsons); Westech (design, fabricate, supply and erect of primary thickener mechanism and rails King and Parsons); Wilichem (consulting services). On Budget and on Time? The expansion project is continuing ahead of schedule and is expected to be completed well within the budgeted R6.7-billion. Contact Details for Project Information ARM corporate development and head of investor relations, Jongisa Klaas, tel +27 11 779 1507 or email jongisa.klaas@arm.co.za. For the Khumani mine expansion: Africon, tel +27 12 427 2200 or fax +27 12 427 2010. Alstom, tel +27 11 871 6600 or fax +27 11 871 6868. Alstom, Megatron, ABB, Siemens, tel +27 11 820 5111 or fax +27 11 823 9047. ATC, tel +27 16 430 6136 or fax +27 16 423 6103.
37
Iron-Ore
B&W Instrumentation, tel +27 907 1663 or fax +27 11 907 1957. Benja Trading, tel +27 76 545 5212. Bosworth, tel +27 11 864 1643 or +27 11 908 5728. Brand Engineering South Africa, tel +27 21 550 9100, fax +27 21 550 9108 or email info@brandsa.com. Brelko, tel +27 11 838 2991 or fax +27 836 7124. Bulk Solids Flow, tel +27 11 979 4770 or fax +27 11 979 4775. Burgess & Burger, tel +27 11 894 3271 or fax +27 11 894 6227. Charles Corbett Photography, tel +27 11 704 6876. Concor Civils, tel +27 11 495 2222 or fax +27 11 495 2226. Concor Roads, tel +27 11 495 2222 or fax +27 11 495 2496. Control Lab, tel +27 43 722 5420 or fax +27 43 743 9942. Cosira IMS, tel +27 11 794 9955 or fax +27 86 665 7879. Crane Load Tech, Terex, MMS, tel +27 11 21 9181 or fax +27 86 546 8478. DesSoft, tel +27 12 654 7516 or fax +27 12 654 7520. Desta Power, Alstom, Steelcor, Zest, tel +27 11 820 5111 or fax +27 11 820 5295. DRA, tel +27 11 202 8600 or fax +27 11 202 8924. ECE, tel +27 11 791 2950 or fax +27 11 791 2955. Eclipse, tel +27 51 410 4660 or fax +27 51 447 3597. ECMP, tel +27 11 705 1111 or fax +27 11 705 1908. Eisen, tel +27 11 900 1821 or fax +27 11 300 4213. ER Signs & Safety, tel +27 11 881 8080 or fax +27 11 811 1068. Fabricated Steel, tel +27 11 821 5600 or fax +27 11 873 0890. FLSmidth, tel +27 11 474 8875 or fax +27 11 474 7347. FPS, tel +27 11 828 4388 or fax +27 11 858 2147. FMS, tel +27 11 821 5600 or fax +27 11 873 0890. Hatch, tel +27 11 239 5609 or fax +27 11 239 5795. Humboldt Wedag, tel +27 11 397 4660 or fax +27 11 397 4411. Inkjet Technology Supplies, tel +27 86 684 9674 or fax +27 11 452 1911. Ivuzi, tel +27 11 807 8925. Joest, tel +27 11 923 9000 or fax +27 11 923 9011. KPMG, tel +27 11 647 7111 or fax +27 11 647 8000. Lilliput, tel +27 31 783 4276 or fax +27 31 783 4074. M&J Engineering, tel +27 11 827 9372 or fax +27 11 827 6132. Malvern, tel +27 11 873 9010 or fax +27 11 873 9596. Matador, tel +27 32 946 1210 or fax +27 32 946 1576. Matthee Furniture Removals, tel +27 53 313 1432 or fax +27 53 313 1761. McLachlan du Plooy Gauteng, tel +27 12 803 3620 or fax +27 12 803 3634. Melco Conveyor, tel +27 11 255 1600 or fax +27 825 3592. Metso, tel +27 11 961 1111 or fax +27 11 397 5960. Moody International, tel +27 16 422 2870 or fax +27 16 421 2036. Morris Materials, tel +27 11 748 1000 or fax +27 11 748 1079. OD Trading, tel +27 82 850 3940. Ofce Furniture Supplies, tel =27 41 582 1520 or fax +27 51 586 2367. Osborn, tel +27 11 820 7600 or fax +27 11 388 1136. Qnsoft, tel +27 12 345 1917 or fax +27 12 345 2526. Rufco, tel +27 53 313 1651 or fax +27 53 313 2081. Safco Systems, tel +27 11 652 5555 or fax +27 11 805 5507. Sandvik, tel +27 11 455 5581 or fax+27 11 455 5512. Scaw Metals Eclipse East Foundry, tel +27 747 5000 or fax +27 422 2706. Sectional poles, tel +27 12 348 8660 or fax +27 12 348 9195. Siemens, tel +27 11 571 2000 or fax +27 11 392 2434. Smart Words Editing Services, tel +27 11 476 1766. SMEI, tel +27 11 914 4101 or fax +27 11 914 4108. Snowden Mining, tel +27 618 923 9213 or fax +27 618 932 2576. SRK Consulting Enegineers, tel +27 11 441 111i or fax +27 11 880 8086. Sunglide 28, tel +27 53 723 2319 or fax +27 53 723 1733. Swift Flite, tel +27 11 701 3298 or fax +27 11 701 3529. Vivi-Tech, tel +27 79 876 1351. Vuleka, tel +27 11 782 1643 or fax +27 11 782 1645. WEC, tel +27 11 745 5500 or fax +27 11 464 2977. Westech, tel +27 11 791 5526 or fax +27 11 791 5524. Willchem, tel +27 11 462 6052 or fax +27 11 704 4593.
Iron-Ore
KUMBA IRON OReS KOLOMeLA iRON-ORe PROJeCT
Name and Location Kolomela (previously Sishen South) iron-ore project, Northern Cape, South Africa. Client Kumba Iron Ore. Project Description The project involved the development of an iron-ore mine about 80 km south of the Sishen mine, near Postmasburg. Kolomela is a conventional openpit mine. The plant is a full dry crush and screen operation only. The mine has a 30-year life-of-mine and produces direct shipping ore, amounting to nine-million tons a year. Ore is transported on the main SishenSaldanha iron-ore export channel to the Port of Saldanha Bay by means of a 36 km rail link built from the mine. Main ofces and general infrastructure have been established at the mine site, which is accessed through a new surface road running south from the Beeshoek mine to the site ofce area. A 132 kV overhead line from the Eskom Postmasburg substation supplies the mine with power. The mine will also include 718 houses in the Tsantsabane local municipal area to house the permanent employees. The delivery of the Kolomela project is in line with Kumbas growth strategy of ramping up the South African production to 70-million tons a year by 2019. Value R8.5-billion. Duration Kolomela started commercial production at the end of 2011, ve months ahead of schedule. The mine was ofcially opened on June 22, 2012. Latest Developments Following the successful commissioning of the Kolomela mine in 2011, the mine is ramping up well ahead of guidance, ahead of the investment proposal and with a record safety performance. Kolomela produced 3.3-million tons during the rst half of 2012, and is on track to produce more than six-million tons for the year. The Kolomela mine and project combined, recorded 26.4-million lost-time injury- (LTI-) free man hours to end June, with the last LTI recorded in January 2010. Kumba has already started studies to expand the Kolomela mine. The Kolomela expansion project, which is anticipated to deliver a further six-million tons a year from Kolomela by 2017, is currently in the prefeasibility stage. On a cumulative basis R7.4-billion of the approved R8.5-billion to end June 2012 was spent on the Kolomela project capital expenditure (capex).
The remaining capex will be spent on 263 houses still to be completed, additional mining equipment still to be delivered, and technical debottlenecking, as the mine ramps up to full production of nine-million tons a year in 2013. Key Contracts and Suppliers Bearings International (bearings and transmission equipment); Metso Minerals (crushers); Takraf South Africa (stackers and reclaimer); Concor Roads & Earthworks (earthworks); Grinaker-LTA Civil Engineering (civils); Group Five (buildings); Hatch Africa, BVi Consulting Engineers Gauteng, Jeffares & Green, Ninham Shand (engineering, procurement and construction management, and consultants); Komatsu (equipment); Caterpillar (equipment); TTC (structural, mechanical, platework and piping); LSL Consulting (load-out station design); MikroPul (dust control contracts); Senet (conveyors); Condra Crane (cranes); Speedspace (prefabricated structures); Professional Cost Consultants, or PCC, in consortium with Mandla Mlangeni Quantity Surveyors, or MMQS (quantity surveying services) and JDS Industries (equipment manufacturer). On Budget and on Time? Kolomela was commissioned ahead of schedule and may still come in below budget. On a cumulative basis, Kumba spent only R7.4-billion of its approved R8.5-billion capex. Contact Details for Project Information Kumba head of projects Francois Louw, tel +27 12 683 7057 or email francois.louw@kioltd.com. MikroPul, tel +27 11 478 0456 or fax +27 11 478 0371. MMQS, tel +27 11 486 0080, fax +27 11 486 0081 or email mmqsjhb@mmqs.co.za. LSL Consulting, tel +27 11 789 8138. PCC, tel +27 11 486 4872, fax +27 11 646 0602 or email christo@pcc.co.za. JDS Industries, tel +27 18 469 9900/01/02, fax +27 86 6 471 227/ +27 86 6 657 301 or email jan@jds-karock.co.za.
39
Source: Kumba Iron Ore
Other Mining Sectors

Botswana is a relatively small copper producer when compared with the worlds major copper producers, but Discovery Metals Boseto copper project, in the north-west of the country, is aiming to develop openpit and underground mining operations to feed a three-million-ton-a-year concentrator for a 15-year period. The company has already produced its first copper/silver concentrate and will start a scoping study in due course to investigate the possibility for underground mining at the Plutus deposit, which forms part the project. On a different front, South Africas Kalahari Resources hopes to take advantage of the countrys significant high-grade manganese resources in the Kalahari basin to become a significant producer of the mineral, with the construction of a manganese mine and a 2.4-million-ton-a-year high-grade sinter plant (Umtu sinter plant), near Hotazel, in the Kuruman area of the Northern Cape.
Source: Discovery Metals

DiSCOVeRY MeTALS BOSeTO COPPeR PROJeCT
Name and Location Boseto copper project, Botswana. Client Discovery Metals. Project Description The Boseto copper project is located on one of 14 prospecting licences, covering an area of about 10 100 km2 within the Kalahari Copperbelt a previously poorly explored extension of the Zambian Copperbelt. The project consists of three main prospects, namely Zeta, Plutus and Petra. A bankable feasibility study (BFS) has indicated that the resources and reserves can support a three-million-ton-a-year copper/silver operation, over a ve-year life-of-mine. The development plan includes the establishment of both openpit and underground mining operations to feed a three-million-ton-a-year concentrator for a 15-year period. Yearly production is forecast at over 35 000 t of copper and one-million ounces of silver. Value $175-million.
Source: Discovery Metals
Duration Steady-state production is expected in the second quarter of 2012. Underground mining is expected to start from the Zeta prospect in 2014, with production expected in 2015. Latest Developments Discovery Metals produced its rst copper/silver concentrate, as commissioning of its Boseto copper project, in north-western Botswana, continued in June 2012. Over the next few months, the Boseto concentrator team will focus on optimising otation performance and achieving overall concentrator throughput that meets the design of three-million tons a year. Discovery Metals reported in May 2012 that it would start a scoping study to investigate the possibility for underground mining at the Plutus deposit, which forms part of its Boseto copper project. The decision was taken after a new mineral resource of 87-million tons, at 1.4% copper and 13.2 g/t silver, was estimated for the deposit. The deposit is now estimated to contain some 1.2-million tons of copper metal and 36.7-million ounces of silver. With the upgrade to the Plutus deposit, the Boseto projects measured and indicated mineral resources have increased to 36.2-million tons, grading 1.4% copper and 19.1 g/t silver.
Work on the scoping study for the Plutus underground mine will start in 2013. Key Contracts and Suppliers Sedgman (engineering, procurement and construction management); Transamine (concentrate offtake agreement); GRD Min-proc (BFS) and Standard Bank Chartered, Standard Bank, Credit Suisse and Caterpillar Finance (banking syndicate lead nancial arrangers). On Budget and on Time? Yes. Contact Details for Project Information Discovery Metals, tel +61 7 3218 0222, fax +61 7 3218 0233 or email info@discoverymetals.com.au; or Discovery Metals Botswana, tel +267 318 0751 or fax +267 318 0752.
41

KALAHARi ReSOURCeS KALAGADi MANGANeSe PROJeCT
Name and Location Kalagadi manganese project, Northern Cape and Eastern Cape, South Africa. Client Kalagadi Manganese is 50%-owned by ArcelorMittal International (the company paid $432.5-million), 40%-held by black women-owned and -controlled Kalahari Resources, and 10%-owned by State-owned nancier, the Industrial Development Corporation (IDC). Project Description The proposed project envisages the construction of a manganese mine and a 2.4-million-ton-a-year high-grade sinter plant (Umtu sinter plant), near Hotazel, in the Kuruman area of the Northern Cape. The output required to produce this amount of sinter will be three-million tons a year. An additional component of the project is the construction of a 320 000 t/y ferromanganese smelter complex in the industrial development zone (IDZ) of the Coega deep-water harbour, in the Eastern Cape. The plant will be designed to have the exibility to produce silicomanganese as an alternative product. The smelter will be situated in Zone 6 of the IDZ metallurgical zone and could possibly be expanded to handle 640 000 t of ore. The project area overlies the Kalahari manganese basin and is estimated to contain 80% of the worlds known high-grade manganese resources. An evaluation of historically available information indicates that up to one-billion tons of mineable ore, covering 8 000 ha, could exist under the prospecting area. Value R11-billion, which will be funded by 40% equity and 60% debt. The current shareholders have committed to fund the R4.5-billion equity portion, while the remaining R6.5-billion will be raised from development nance institutions and commercial banks. The IDC has committed R3.5-billion towards the implementation of the project. Duration Commissioning is scheduled for the third quarter of 2012. Latest Developments According to a Business Day article, Kalagadi Manganese will cold commission its sinter plant by the end of this month and feed it with material within two months from that date. The sinter plant is completed and workers are cladding it with metal sheeting. Cold commissioning is expected to start at the end of July. Hot commissioning and ramp-up will be completed two months later. The underground mine, at which horizontal development below surface has started, will start hoisting ore from the rst quarter of 2013 and take up to 18 months to reach full capacity of three-million tons a year. The shortfall between the start of the sinter plant and ore feed from the
mine will be met from stockpiled ore and on-reef development. Kalagadi will also buy third-party material and is engaged in talks with other producers in the province. Development at the project has continued despite the corporate fallout between the two biggest shareholders in the company. The South Gauteng High Court ordered ArcelorMittal International on June 26, to meet its R241.3-million shareholders agreement with Kalagadi Manganese within ten days. High Court Judge P Coppin also ordered the company to pay the costs of the legal proceedings and ruled that ArcelorMittal International discharge its nancial obligations in the future, pro rata to its shareholding in Kalagadi Manganese. ArcelorMittal Internationals application to have Kalahari Resources placed under business rescue was also struck from the roll, with costs. Kalahari Resources brought the matter to the High Court in May to ensure ArcelorMittal International honoured its shareholder-agreement
Source: Kalagadi Manganese

Key Contracts and Suppliers Mineral Corporation (geological consultant); MDM Engineering (bankable feasibility study; front-end engineering and design, engineering, and construction management); Civcon (main contractor); Shaft Sinkers and Grinaker-LTA (shaft sinking); Neutron Engineering (bulk earthworks for the shaft); Tubular (main and ventilation shaft headgears); Outotec (sinter plant); Esorfranki Geotechnical (piling contract); African Development Bank, or AfDB (loan nance) and Andrew Mentis (handrailings, gratings and stair treads). On Budget and on Time? The project is on track and was expected to be commissioned by July 2012. Contact Details for Project Information AfDB, Onike Nicol-Houra, tel +216 97 968 706 or email o.nicol@afdb.org. Esorfranki Geotechnical MD Roy McLintock; or Tammy Davies, tel +27 11 882 3906, fax +27 11 882 3112 or email info@esorfranki.co.za. Civcon, tel +27 11 206 9660, fax +27 11 316 6604 or email info@civcon.co.za. Grinaker-LTA, tel +27 11 578 6000, fax +27 11 578 6161 or email enquiry@grinaker-lta.co.za. Kalagadi Manganese executive chairperson Daphne Mashile-Nkosi, tel +27 11 234 4154, fax +27 11 234 4076 or email daphne@kalahariresources.co.za. Outotec investor relations VP Rita Uotila, tel +358 20 529 2003 or email rita.uotila@outotec.com. MDM Engineering marketing manager and public relations manager Vanessa Evans, tel +27 11 993 4300, fax +27 11 886 9306 or email Vanessa@mdm-engineering.com. Andrew Mentis, Elaine van Rooyen, tel +27 11 255 3200.
obligations, after the group had failed to settle the matter out of court. ArcelorMittal International has applied for leave to appeal the decision and has not paid, although Kalahari Resources has approached the courts to oblige ArcelorMittal International to adhere to the judgement. ArcelorMittal International has since been ordered to comply with the ruling while it awaits leave to appeal for the June judgement. The company says the appeal process will start soon if its leave to appeal is granted. Meanwhile, Kalahari Resources website reports that the sinter plant progress is at 53%, while engineering is more than 85% complete. Further, the building structures for the change house, mine stores and workshop are now completed. In terms of underground development, the ventilation shaft has reached shaft bottom; the main shaft is currently at production level (317 m) and the list of underground equipment has been concluded and the procurement is progressing. Kalagadi Manganese has secured the infrastructure to transport the sintered manganese to the smelter in Coega. Already plans are under way to link the mine to the existing rail line.
A water pipeline from the Vaal Gamagara will follow the rail line into the mine. Already the contract has been signed for the supply of water, as well as future upgrades to ensure consistency in pressure and volume. Eskom is currently supplying 13 MVA to Kalagadi Manganese for the construction phase. A contract for a further 132 KVA has been successfully negotiated and signed, this power will be available in the third quarter.
43
South Africa, which is the worlds largest platinum miner, supplied 4.86-million ounces of the metal in 2011 and platinum refiner and specialist Johnson Matthey expects that the overall balance of the platinum market in 2012 will be similar to that of 2011. Simultaneously, however, Johnson Matthey also contends that platinum supplies for 2012 are likely to be lower than in 2011, as production from South Africa is expected to decline. This is because several platinum companies reviewing their operations and capital expenditure in light of poor market conditions and ongoing operational challenges in the first half of the year. In spite of this, several platinum projects are still currently under development in South Africas North West province, including Royal Bafokeng Platinums and Anglo American Platinums BRPM North Shaft Merensky Phase 3 and Styldrift Merensky Phase 1 projects; Impala Platinums No 16 and 17 shafts, Tharisa Minerals Tharisa chromite and platinum expansion project, as well as Wesizwe Platinums Bakubung Platinum Mine project.
Platinum
Source: RBPlat
Platinum
ROYAL BAFOKeNG PLATiNUM AND ANGLO AMeRiCAN PLATiNUMS BRPM NORTH SHAFT MeReNSKY PHASe 3 PROJeCT
Name and Location Bafokeng Rasimone Platinum Mine (BRPM) North Shaft Merensky Phase 3 project, North West, South Africa. Client Royal Bafokeng Platinum (RBPlat) and Anglo American Platinum. Project Description The project will signicantly extend Merensky production levels at the North shaft, extending from level 10 down to level 15, giving access to 1.41-million Merensky 4E (platinum, palladium, rhodium and gold) ounces. Value R1.27-billion. Duration The project is scheduled to conclude in the third quarter of 2017. Latest Developments At the end of June 2012, project progress had advanced to 31% completion against a planned completion of 28%, with development to 453 m, ahead of schedule. The rst level, 11 level, was handed over to production in the second quarter of 2012 and the project is on track to conclude on schedule in 2017. Key Contracts and Suppliers None stated. On Budget and on Time? Yes. Contact Details for Project Information RBPlat investor relations Lindiwe Montshiwagae, tel +27 11 530 8056, fax +27 86 219 5131 or email lindiwe@bafokengplatinum.co.za.
Source: RBPlat
45
Platinum
ROYAL BAFOKeNG PLATiNUM AND ANGLO AMeRiCAN PLATiNUMS STYLDRiFT MeReNSKY PHASe 1 PROJeCT
Name and Location Styldrift Merensky Phase 1 project, North West, South Africa. Client Royal Bafokeng Platinum (RBPlat) (67%) and Anglo American Platinum (33%). Project Description The Styldrift project area is adjacent to the existing Boschkoppie mining area. The mine will exploit one of the last major Merensky mining blocks on the Western Bushveld. A total of about 60-million tons is expected to be extracted over the life of the mining operation between 2015 and 2043. The mine will process 230 000 t/m of Merensky reef at steady state. The project will deliver an underground operation, which will be accessed through a twin vertical shaft system, with the main shaft being sunk to 758 m and the service shaft to 723 m. Production will initially be through wide-reef trackless mining methods and, later, by way of narrow-reef conventional mining methods. The Styldrift project site is located about 5.5 km from the existing Bafokeng Rasimone Platinum Mine (BRPM). During steady-state operations, the mine will produce some 220 000 oz/y of platinum, effectively doubling BRPMs platinum-ounce production to about 400 000 oz/y. Shaft site infrastructure will comprise the twin shaft system, associated mining surface infrastructure, a concentrator plant and the waste rock dumps. Value R11.8-billion. Duration The project was approved by the boards of Anglo American Platinum and Royal Bafokeng Holdings during the third quarter of 2008. First production is expected to start in the second half of 2015, while steady-state production is expected by the second half of 2018. Latest Developments RBPlat has reported that it will most likely have to tap shareholders for funds in 2014 to complete funding for its share of the Styldrift project. However, the companys CFO has indicated that there will not be signicant alterations to the Styldrift funding plan and that there is time for the platinum market to recover. The announcement came after the company had indicated that it intended to defer R462.4-million in capital spending, owing to prevailing difcult market conditions, characterised by the softening of platinum-group metals (PGMs) prices, as a result of weaker demand for PGMs, particularly from Europe, as well as local cost pressures. To preserve cash ows, the company has deferred exploration drilling at BRPMs North shaft and at the Styldrift II, construction of a chairlift at BRPMs South shaft and R300-million in BRPM concentrator facility upgrades. In terms of the nancing for Styldrift, RBPlat has no debt. The company raised R1-billion from its listing in 2010 and expects to save R1-billion from the Styldrift I project capital cost through optimisation. Key Contracts and Suppliers TWP Projects (concentrator and main project engineering, procurement and construction management); Anglo Technical Division (mine shaft design); Mining & Engineering Technical Services, or Mets (service shaft headgears); Shaft Sinkers (main and services shafts and associated works); Louwill Engineering (main and service shafts headgears and winder house structural manufacturing and erection); FLSmidth Minerals (main shaft personnel and material winder mechanical portion); Actom, formerly Alstom Industry (main shaft personnel and material winder electrical portion); Coilmech (service winder mechanical and electrical portions); Stefanutti Stocks- Wramatshe joint venture (Phase 2 main bulk surface civils contract); Sarens (cranes) and Dowding, Reynard & Associates Mineral Projects (concentrator study). On Budget and on Time? Yes. Contact Details for Project Information RBPlat investor relations manager Lindiwe Montshiwagae, tel +27 11 530 8056, fax +27 86 219 5131 or email lindiwe@bafokengplatinum.co.za; or head of projects Neil Carr, cell +27 83 321 1499 or email neil@bafokengplatinum.co.za.
Source: RBPlat
Platinum
IMPALA PLATiNUMS NO 16 SHAFT PROJeCT
Name and Location Impala No 16 Shaft project, North West, South Africa. Client Impala Platinum (Implats). Project Description The shaft development is situated on the south-east corner of the Impala mining lease down-dip of the No 1 shaft, on the western limb of the Bushveld Complex. The No 16 shaft is expected to produce 226 500 t/m of reef from seven operational levels. The shaft will access both the Merensky and upper group two (UG2) reef horizons. The No 16 shaft ore reserves will be accessed by a downcast rock and menand-materials shaft. The rock and men-and-materials shaft is lined to an inside diameter of 10 m and sunk to 1 648 m, while the ventilation shaft is a 6.8-m-diameter inside-concrete lining shaft, sunk to 1 390 m below the surface. Being a shaft that will access reef from a depth of 1 220 m to 1 540 m, full-time refrigeration will be required for the underground workings, introduced through the rock and men-and-materials shaft. The refrigeration is designed to ventilate a maximum of 900 kg/s of cooled air from the surface. The No 16 shaft headgear, with a structural height of 108 m, houses two Koepe winders. One will hoist personnel and material, while the other will only hoist rock. The rock hoist tipping arrangement will be located inside the concrete headgear to reduce noise pollution. A conveyor will transfer reef and waste from the headgear bins to a transfer tower, from where reef will be transferred into two concrete silos one for Merensky and one for UG2. The power requirements for the new shaft will be met from a new Eskom 88/33 kV yard at the No 15 shaft. Duration The ramp-up to full production of 226 500 t/m of reef is scheduled to start in the third quarter of 2013. Latest Developments Pipe installation in the main shaft was successfully completed and steel work equipping has started. Shaft equipping and commissioning is on schedule and forecast to be completed by mid-2013, with production beginning in the third quarter of 2013. Capital development-to-reef through the ventilation shaft is progressing well and will open up sufcient reserves for a rapid production build-up once the main shaft is commissioned. The main shaft equipping and capital development activities are being performed by Shaft Sinkers, under direct supervision of the Impala owners team.
The fabrication, supply and installation of surface conveyors has been awarded to Louwill Engineering and JJG is currently completing the major surface civil works. Key Contracts and Suppliers Shaft Sinkers (shaft sinking); Read Swatman & Voigt (engineering, procurement and construction management); JJG Construction (civil works); Louwill Engineering (structural steel); NIC Instruments & Engineering (electrical); FLSmidth Minerals (Koepe winder mechanical); ABB South Africa (Koepe winder electrical) and Wade Walker (surface electrical works). On Budget and on Time? Not stated. Contact Details for Project Information Impala No 16 shaft general manager Frikkie Hll, tel +27 82 802 5051; or project manager Jako Pienaar, tel +27 72 699 9373 or email jako.pienaar@implats.co.za. Shaft Sinkers, +27 11 445 4300. JJG Construction, tel +27 18 484 1427, fax +27 18 484 5017 or email info@jjg.co.za. Louwill Engineering, tel +27 11 818 5844.
47
Source: Impala Platinum
Platinum
IMPALA PLATiNUMS NO 17 SHAFT PROJeCT

Name and Location Impala No 17 Shaft project, Rustenburg, North West, South Africa. Client Impala Platinum (Implats). Project Description Implats No 17 Shaft project consists of three new vertical shafts at the companys Rustenburg operation to replace operations at its older shafts that are nearing the end of productive life. Value R11.1-billion. Duration Ramp-up to full production of 225 000 t/m of platinum-bearing rock is scheduled to begin in 2017. Latest Developments The main shaft has reached the Merensky reef intersection at a depth of 1609 m, the reef inner-pillar was extracted successfully and sinking activities resumed. The ventilation shaft is nearing the Merensky reef intersection, while early development is continuing from the refrigeration shaft. The surface refrigeration plant construction is on track for commissioning during the third quarter of 2012, and will initially provide chilled air for early development from the ventilation and refrigeration shafts. Sinking and development activities are being performed by Shaft Sinkers, while Bluhm Burton Engineering (BBE) Projects is constructing the surface refrigeration plant, under a turnkey contract.
Key Contracts and Suppliers TWP (engineering, procurement and construction management); Scribante (earthworks); Murray & Roberts (civils); Shaft Sinkers (ventilation, main and refrigeration shafts); Louwill Engineering (building structures); NIC Electrical & Instrumentation Construction (electrical); Grinaker-LTA (shaft headgear erection contract); DRA Technical Services, ABB, Siemag Tecberg, Coilmec, Actom, Siemens and Winder Controls (supply of winders for the project); BBE (turnkey design, construction and commissioning of the refrigeration plant and air cooler system) and Johnson Controls, subcontracted by BBE Projects (supply of chiller system). On Budget and on Time? The project is on schedule and below budget, while still achieving a highquality nish, and should be completed in 2017. Contact Details for Project Information Impala No 17 shaft GM Jacques Pretorius, cell + 27 82 801 2987; or Impala No 17 Shaft project manager Jacey Kruger, cell +27 82 801 1232. BBE Projects, tel +27 11 706 9800, fax +27 11 706 6931 or email bbe@bbe.co.za. Grinaker-LTA corporate affairs, tel +27 11 578 6000, fax +27 11 578 6161 or email enquiry@grinaker-lta.co.za. Johnson Controls Systems & Services public relations manager Nanda Aerts, tel +32 2 709 4481 or email Nanda.Aerts@jci.com. Louwill Engineering, tel +27 11 818 5186 or email ben@louwill.co.za. Murray & Roberts, tel +27 11 456 6200, fax +27 11 455 2222 or email info@murrob.com. NIC Electrical & Instrumentation Construction, tel +27 11 386 5000, fax +27 11 786 6786 or email engineering@nicinst.co.za. Shaft Sinkers, tel +27 11 445 4300, fax +27 11 444 4410 or email sinkers@shaftsinkers.co.za. TWP, Don Munro, cell +27 82 658 0116.
Source: Impala Platinum
Platinum
THARiSA MiNeRALS THARiSA CHROMiTe AND PLATiNUM eXPANSiON PROJeCT
Name and Location Tharisa chromite and platinum expansion project, North West, South Africa. Client Tharisa Minerals. Project Description The Tharisa mine is situated in the Bushveld Complex, which contains more than 70% of the worlds known platinum-group metal (PGM) resources and 75% of the worlds known chrome resources. The mines total chrome resource of about 900-million tons of contained chrome makes it the largest single chrome mineral resource deposit in the world. The expansion project will process about 4.8-million tons a year of runof-mine (RoM) ore. The current pilot scale PGM and chrome concentrator provides for steadystate commercial production of 420 000 t/y of metallurgical-grade chrome concentrate and 40 000 oz/y of PGM concentrate. The new concentrator facilities will increase yearly output to 1.92-million tons of chrome concentrate and 156 000 oz of PGM concentrate by the end of 2013. Value In March 2012, Tharisa Minerals secured a R1-billion debt facility for the expansion of its PGM and chrome mine. The funds provided by the project facility will be used predominantly to increase the Tharisa mines RoM production capacity from 1.2-million tons a year to 4.8-million tons a year. Duration Completion of the new concentrator facilities is expected by the end of the third quarter of 2012, with targeted production by the Tharisa mine of 1.92-million tons a year of metallurgical grade chrome concentrate and 156 000 oz/y of PGM concentrate from the end of 2013. Latest Developments None stated. Key Contracts and Suppliers MDM Engineering (engineering, procurement and construction management) and HSBC, Absa Capital and Nedbank (mandated lead arrangers and lenders). On Budget and on Time? The project is on schedule. Contact Details for Project Information Tharisa Minerals chief operations ofcer Michelle Taylor, tel +27 11 996 3500, fax +27 11 996 3535 or email mtaylor@tharisa.com. MDM Engineering, tel +27 11 993 4300, fax +27 11 886 9306 or email info@mdm-engineering.com.
49
Platinum
WeSiZWe PLATiNUMS BAKUBUNG PLATiNUM MiNe PROJeCT
Name and Location Bakubung Platinum Mine (BPM) project, western limb of the Bushveld Complex, South Africa. Client Wesizwe Platinum. Project Description The BPM project, formerly known as the Frischgewaagd-Ledig project, will involve the construction of a platinum-group metals (PGMs) mine on Wesizwe Platinums core assets on the farm Frischgewaagd portions 3, 4 and 11 and the farm Ledig portions 1 and 2. The project will consist of an underground mine and a surface concentrator plant, and takes into account the establishment of all surface infrastructure, servitudes for bulk power and water supply, the sinking and equipping of ventilation and main shafts, the associated underground infrastructure, the ancillary excavations and the access development to establish a footprint for full production. The proposed access to the orebody will be through the sinking of an independent twin vertical-shaft system. This will comprise a 1 000-m-deep, 8.5-m-diameter downcast men-and-materials and hoisting shaft and a 930-m-deep upcast ventilation shaft of 7.5 m diameter. The shafts will be strategically positioned to most effectively access both reef horizons. The mine is specically designed to allow for optimum exibility in terms of mining method (conventional, mechanised or hybrid) and allows for fast production build-up to enhance shareholder value in the project. Further, the intention is to build the concentrator plant in two modules that are interchangeable between Merensky and upper group two (UG2) of initially 2 Merensky and 1 UG2, reversing this conguration when the mine becomes predominantly UG2 in the latter years of its production programme. This will allow for considerable exibility in grading the different ores and ensure optimum PGM recoveries. The design includes a primary one-stage crushing into a semiautogenous mill with a mill-oat-mill-oat circuit. The project has an estimated life-of-mine of 35 years at a production rate of 230 000 t/m, producing an average of 350 000 oz/y of platinum-group elements during steady-state production. This production rate is a major improvement on the 180 000 t/m envisaged during the prefeasibility study stage and reects the underlying quality and size of the orebody, as well as the extent of the proposed mine. Value The capital cost estimate for the project is forecast at R7.9-billion (2012 base), which, with expected ination and cost escalation, is expected to rise to R12-billion at completion of the development programme. Duration In April 2010, the Department of Mineral Resources granted all the requisite approvals and consents for Wesizwe Platinum to conclude the transaction through which it gained full ownership of its core Frischgewaagd-Ledig, now BPM project, while retaining a 26% shareholding in Western Bushveld Joint Ventures Projects 1 and 3. Following this approval, site work started and provisional earthworks took place within the constraints of the funding that was available, while the nancing agreement was being concluded with a Chinese consortium. The funding transaction was concluded in May 2011 and this allowed the mine to embark on a full development programme focusing on critical path activities to the start of presink. It is expected that shaft sinking, lining, equipping, station development and underground infrastructure development will take ve years. Opening up of the resource and ramping-up to full production status of 230 000 t/m is expected to take another four years. First production is expected to take place around 2017/18. Wesizwe is also embarking on the value engineering exercises for the engineering, procurement and construction management (EPCM) contract, with input from the major shareholders technical teams to look at new concepts and processes that can bring the date forward and lower costs through increased efciencies. The mine is expected to reach full production 2023. Latest Developments On July 27, 2012, Wesizwe conducted the rst blast on the ventilation shaft at the BPM project, embarking on a 62-month R1.64-billion shaft-sinking process. Key Contracts and Suppliers TWP Projects (EPCM contractor); Scribante Construction (earthworks and civil work Phase 1); Benco Engineering (blasting); Blast Management & Consulting (blast monitoring); Eskom (power supply); Liviero (civil earthworks and concrete) and Aveng Grinaker-LTA Mining (shaft-sinking contract). On Budget and on Time? Wesizwe Platinum remains condent that the project will progress on schedule, with rst production expected around 2017/18. However, the cost of the project is expected to escalate from R7.9-billion to R12-billion by the end of the development programme. Contact Details for Project Information Wesizwe corporate affairs, media and investor relations Hamlet Morule, tel +27 11 994 4600, fax +27 11 944 4601 or email hamlet@wesizwe.com; or project specic information Jacob Mothomogolo, tel +27 11 994 4600 or email mogalej@wesizwe.com.
Projects in Progress (Second edition published September 2012)

The material contained in this report was compiled by Creamer Media (Pty) Ltds Research Unit, based in Johannesburg, South Africa. It has been compiled from sources believed to be reliable, but no warranty is made as to the accuracy of such information. Creamer Medias aim is to present its reports in an impartial, user-friendly format for easy reference. The reports draw on material published over the past 12 months and are a summary of other sources of information published in Engineering News and Mining Weekly, as well as information available in the public domain. The reports do not purport to provide analysis of market trends. This report is designed to be a source of information for subscribers to Creamer Medias Research Channel Africa and Creamer Medias MiningWeekly.com Research, and is not to be reproduced or published for any other purpose. In particular, the report may not be republished on any other websites and it may not be reproduced or redistributed in any manner.
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SEPTEMBER 2012

Picture by Chief Photographer Duane Daws

Supplement September, 2012

Medupi power station

Need for State to play counter cyclical project role

Martin Creamer Publishing Editor

Projects in Progress 2012

Projects IN Progress 2012

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Source: Knight Pisold

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ESKOMS MeDUPi POWeR STATiON PROJeCT

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Petrochemicals and Chemicals

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OMNiA HOLDiNGS NiTRiC ACiD COMPLeX

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Transport and Logistics

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BeACON HiLL ReSOURCeS MiNAS MOATiZe COAL PROJeCT

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Other Mining Sectors

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