http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 13.14Change: -0.15
R/$ = 12.05Change: -0.20
Au 1200.03 $/ozChange: -6.12
Pt 1139.50 $/ozChange: -16.00
 
 
Note: Search is limited to the most recent 250 articles. Set date range to access earlier articles.
Where? With... When?








Start
 
End
 
 
And must exclude these words...
Close Main Search
Close Main Login
My Profile News Alerts Newsletters Logout Close Main Profile
 
Agriculture   Automotive   Chemicals   Competition Policy   Construction   Defence   Economy   Electricity   Energy   Environment   ICT   Metals   Mining   Science and Technology   Services   Trade   Transport & Logistics   Water  
What's On Press Office Tenders Suppliers Directory Research Jobs Announcements Letters Contact Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
Aug 10, 2012

10/08/2012 (On-The-Air)

Back
safmpod9august2012
 
 
 
Engineering|Gold|Johannesburg|Africa|Building|Cement|Diesel|Engineering News|Johannesburg Stock Exchange|Locomotives|Mining|Mining Weekly|PROJECT|Sephaku Holdings|Transnet|Africa|Nigeria|South Africa|Building South Africa|Cement Factory|Chemical Process|Technology Transfer|David Davis|Lelau Mohuba|Martin Creamer|Rail|Locomotive|Locomotives|Engineering News|Diesel
Engineering|Gold||Africa|Building|Diesel|Locomotives|Mining|PROJECT|Transnet|Africa||||Rail|Locomotive|Locomotives||
engineering|gold|johannesburg|africa-company|building|cement|diesel-company|engineering-news|johannesburg-stock-exchange|locomotives|mining|mining-weekly-company|project|sephaku-holdings|transnet|africa|nigeria|south-africa|building-south-africa|cement-factory|chemical-process|technology-transfer|david-davis|lelau-mohuba|martin-creamer|rail|locomotive|locomotives-product|engineering-news-published-medium|diesel
© Reuse this



Every Friday morning, SAfm’s AMLive’s radio anchor Xolani Gwala speaks to Martin Creamer, publishing editor of Engineering News and Mining Weekly. Reported here is this Friday’s At the Coalface transcript:

Gwala: Five hundred Chinese workers are building South Africa’s newest cement factory in Lichtenburg – and 200 more are due to arrive in the next few weeks.

Creamer: We haven’t had a cement factory built in a quarter century and this is the Sephaku Cement is doing out at Aganang in Lichtenburg in the North West. They have given the contract to a Chinese company Sinoma International Engineering.

Already on site are 500 Chinese workers and 200 more coming in the next few weeks and 1 000 at the peak. For every three Chinese workers there will be one South African worker who will learn the job and get the technology transfer. They are saying that the culture that the Chinese are bringing on to this site is quite phenomenal.

Firstly their price was 25% below anyone else’s and it was a turnkey bid, so they have got an appetite for risk. That means that the plant must work when they hand it over. If it doesn’t work then they have got to make sure it works.

This time next year this plant should be producing its first cement. It will also have an addendum at Delmas. Of course, it involves beneficiation of limestone, because they are mining the limestone and then they are using the chemical process to turn this into clinker.

The whole idea of bringing the Chinese on was around money, saving 25% on a R2,3-billion project, saving them about R575-million on that. They say if you look at the whole thing, the Chinese will only be on site for the next two years. The South Africans will then have 30-years worth of work in a very competitive business.

One of the big shareholders, a 64% shareholder, is Aliko Dangote from Nigeria, one of the richest Africans in the continent, and also the CEO of Sephaku Holdings, which is listed on the Johannesburg Stock Exchange, Dr Lelau Mohuba, who is also very much involved in fluoride benefication.

Gwala: Transnet is insisting on a minimum 60% South African content for the 599 new locomotives it has on order.

Creamer: Today is the last day where you can get the paperwork to bid on this. By Thursday, bidders have to sit in a compulsory meeting in Johannesburg for the locomotive tenders.

By October 2 they have to put in their bids for 599 electric locomotives, 465 diesel locomotives. So that is 1 064 units in all and the electric locomotives must have a 60% local content, the diesel ones at least a 55%.

You can see that this is a target of getting reindustrialisation going using this big procurement of Transnet for the general freight business side and building up this loco fleet by 2019. Also involved, of course, is a lot of wagons, 19 400 additional wagons.

What Transnet is looking at is lowering the age of its fleet from beyond 30 years to about 20 year average and making sure that we come up to speed with the transport equation in South Africa. They are looking rather ambitiously at being one of the top five globally active rail companies by 2020.

Gwala: New technology is seen as absolutely critical for the long-term future of South African gold mining.

Creamer: We have had two negative reports coming out of the gold mining industry even though we find that the gold price is not too bad at the moment.

We see Gold Fields telling the Australians that the investors are getting tired of ‘jam-tomorrow’ approach and never really fulfilling their promises from the gold mining industry. We also had Dr David Davis coming through with a rather disturbing report that they have been miscalculating the reserves of our mature gold mines.

They have used the wrong yardsticks to actually calculate so the market is actually under the wrong impression about the life of many of these mines.

Davis is saying that because they have miscalculated, within the next 12 to 36 months a lot of these mature gold mines are going to have to be downsized otherwise they could face bankruptcy.

Against that background, we see a much better news coming out of AngloGold Ashanti where they are going hammer and tongs into this new technology and saying it is absolutely critical.

We can see from some of the reports coming out that it is critical. All they need to do now is to get it in to the commercial phase.

The technical hurdles have been well cleared, because this will keep our gold mining going in a very viable way for the next 20 to 30 years.

We are talking about peopleless stopes, no longer using blasting techniques and having rock around the clock, because people will be able to mine 24-hours a day 365 days a year. People say it is like taking a sausage out of your hot-dog, that is the way they will mine.

They will use raise boring that gives you all the gold and nothing but the gold, you take that out with raise boring method and then you use a backfill so that Mother Nature doesn’t know that you’ve taken this gold out.

That is the sort of thinking and saying it is absolutely critical and you can see why with the cost situation in gold mines and these problems now with the reserve miscalculations that this technology succeeds.

The reward if it does succeed is going to change the face of South African gold mining industry and possibly the world industry and other mining activities as you migrate it across a broader spectrum.

Gwala: Thanks very much. Martin Creamer is publishing editor of Engineering News and Mining Weekly, he’ll be back with us at the same time next week.

Edited by: Creamer Media Reporter
© Reuse this Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
Other SAFM
More
 
 
Latest News
Updated 3 minutes ago International brewers are helping transform Ethiopia's business landscape as it slowly sells the assets of the former communist state and opens up to foreigners drawn to one of Africa's fastest growing economies. Heineken, Diageo and privately-owned Dutch brewer...
Updated 1 hour 12 minutes ago South African Airways (SAA) this week suspended its contract with the South African Post Office (Sapo) due to unpaid bills. Both parties confirmed that SAA ceased carrying mail to and from overseas postal services because of Sapo's failure to pay for the service.
DA parliamentary leader Mmusi Maimane
Updated 1 hour 18 minutes ago The Democratic Alliance (DA) is set to deliver a memorandum to Public Enterprises Minister Lynne Brown on Wednesday to protest Eskom's electricity tariff hike requests. DA parliamentary leader Mmusi Maimane said the opposition party will not stand for the burden of...
More
 
 
Recent Research Reports
Steel 2015: A review of South Africa's steel sector (PDF Report)
Creamer Media’s Steel 2015 report provides an overview of the key developments in the global steel industry and particularly of South Africa’s steel sector over the past year, including details of production and consumption, as well as the country's primary carbon...
Projects in Progress 2015 - First Edition (PDF Report)
In fact, this edition of Creamer Media’s Projects in Progress 2015 supplement tracks developments taking place under the Renewable Energy Independent Power Producer Procurement Programme, which has had four bidding rounds. It appears to remain a shining light on the...
Electricity 2015: A review of South Africa's electricity sector (PDF Report)
Creamer Media’s Electricity 2015 report provides an overview of State-owned power utility Eskom and independent power producers, as well as electricity planning, transmission, distribution and the theft thereof, besides other issues.
Construction 2015: A review of South Africa’s construction sector (PDF Report)
Creamer Media’s Construction 2015 Report examines South Africa’s construction industry over the past 12 months. The report provides insight into the business environment; the key participants in the sector; local construction demand; geographic diversification;...
Liquid Fuels 2014 - A review of South Africa's Liquid Fuels sector (PDF Report)
Creamer Media’s Liquid Fuels 2014 Report examines these issues, focusing on the business environment, oil and gas exploration, the country’s feedstock supplies, the development of South Africa’s biofuels industry, fuel pricing, competition in the sector, the...
Water 2014: A review of South Africa's water sector (PDF Report)
Creamer Media’s Water 2014 report considers the aforementioned issues, not only in the South African context, but also in the African and global context, and examines the issues of water and sanitation, water quality and the demand for water, among others.
 
 
 
 
 
This Week's Magazine
Projected capital expenditure (capex) in the South African automotive assembly industry should reach a record R7.48-billion this year, says the National Association of Automobile Manufacturers of South Africa (Naamsa) in its 2014 fourth quarter business review. Capex...
After several years of navigating project-threatening red tape and currency fluctuations, the 4.4 MW Bronkhorstspruit biogas power plant, which will supply clean energy to a leading automotive manufacturer in Gauteng, is expected to enter production before June....
RESOURCEFUL The raw material for the pilot plant would be supplied from the dissolving wood pulp plants at Sappi’s Saiccor and Ngodwana mills, in South Africa, and the Cloquet mill, in the US
South African paper and pulp producer Sappi reported earlier this month that it would build a pilot plant for the production of low-cost Cellulose NanoFibrils, or CNF (nanocellulose) at the Brightlands Chemelot Campus in Sittard-Geleen in the Netherlands.
The long-term outlook for Nigeria is a country that has the potential to be very strong. So affirmed International Monetary Fund (IMF) Nigeria Mission Chief and Senior Resident Representative Dr Gene Leon on recently. "But we are starting from a point of huge...
Poor infrastructure planning and inadequate maintenance are becoming increasingly problematic for new developments and the associated infrastructure required to support such developments. In many urban and rural municipalities, the state of infrastructure has been...
 
 
 
 
 
 
 
 
 
Alert Close
Embed Code Close
content
Research Reports Close
Research Reports are a product of the
Research Channel Africa. Reports can be bought individually or you can gain full access to all reports as part of a Research Channel Africa subscription.
Find Out More Buy Report
 
 
Close
Engineering News
Completely Re-Engineered
Experience it now. Click here
*website to launch in a few weeks
Subscribe Now for $96 Close
Subscribe Now for $96