http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 13.85Change: 0.03
R/$ = 10.93Change: 0.05
Au 1231.31 $/ozChange: -0.06
Pt 1248.50 $/ozChange: -1.00
 
 
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 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|Cement|Diesel|Engineering News|Johannesburg Stock Exchange|Locomotives|Mining Weekly|PROJECT|Sephaku Holdings|Transnet|Africa|Nigeria|South Africa|Building South Africa|Building|Cement|Cement Factory|Chemical Process|Mining|Technology Transfer|Transport|David Davis|Lelau Mohuba|Martin Creamer|Rail|Locomotive|Locomotives|Engineering News|Diesel
Engineering|Gold||Africa|Cement|Diesel|Locomotives|PROJECT|Transnet|Africa|||Building|Mining|Transport|Rail|Locomotive|Locomotives||
engineering|gold|johannesburg|africa-company|cement-company|diesel-company|engineering-news|johannesburg-stock-exchange|locomotives|mining-weekly-company|project|sephaku-holdings|transnet|africa|nigeria|south-africa|building-south-africa|building|cement|cement-factory|chemical-process|mining|technology-transfer|transport-industry-term|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
Swedish Ambassador to South Africa Christian Meuwly will next week inaugurate the final roll-out of the new vertical shaft brick kiln (VSBK) at clay brick manufacturer Langkloof Bricks’ facility in Jeffrey’s Bay. The VSBK formed a part of economic, social and...
Hot on the heels of the launch of Rustenburg’s rapid transport system’s brand name and logo last week, a negotiation framework agreement (NFA) has been formally agreed to and signed by the Rustenburg Local Municipality (RLM) and taxi and bus operators affected by the...
The runway at the George Airport, in the Western Cape, has been rehabilitated to improve safety, in terms of run-off and storm water drainage, and the structural capacity of the pavement surface. The scope of work comprised the extension of Runway 11/29, the...
More
 
 
Recent Research Reports
Defence 2014: A review of South Africa's defence industry (PDF Report)
Creamer Media’s Defence 2014 report examines South Africa’s defence industry, with particular focus on the key participants in the sector, the innovations that have come out of the sector, local and export demand, South Africa’s controversial multibillion-rand...
Road and Rail 2014: A review of South Africa's road and rail infrastructure (PDF report)
Creamer Media’s Road and Rail 2014 report examines South Africa’s road and rail transport system, with particular focus on the size and state of the country’s road and rail network, the funding and maintenance of these respective networks, and the push to move road...
Real Economy Year Book 2014 (PDF Report)
This edition drills down into the performance and outlook for a variety of sectors, including automotive, construction, electricity, transport, steel, water, coal, gold, iron-ore and platinum.
Real Economy Insight: Automotive 2014 (PDF Report)
This four-page brief covers key developments in the automotive industry over the past 12 months, including an overview of South Africa’s automotive market, trade figures, production and the policies influencing the sector.
Real Economy Insight: Construction 2014 (PDF Report)
This five-page brief covers key developments in the construction industry over the past 12 months. It provides an overview of the sector and includes details of employment in the sector, infrastructure and municipal spending, as well as insight into companies’...
Real Economy Insight: Electricity 2014 (PDF Report)
This five-page brief covers key developments in the electricity industry over the past 12 months, including details of State-owned power utility Eskom’s generation activities, funding and tariffs, independent power producers and prospects for the sector.
 
 
 
 
 
This Week's Magazine
Integrated energy and chemical company Sasol has partnered with Unisa Graduate School of Business Leadership (SBL) professor and founder and CEO of PanAvest Partnership Dr Douglas Boateng to publish a series of books on executive supply chain management aimed at...
MORNÉ DU PLESSIS Increased urgency and burgeoning awareness of the importance of these issues are beginning to change political risks and, thus, State responses to environmental concerns
The World Wide Fund for Nature’s (WWF’s) 2014 Living Planet Index (LPI) indicates that there has been a 52% decline in vertebrate species since 1970. The Index tracked the trends of 10 000 discrete populations of over 3000 vertebrate species between 1970 and 2010.
Rwanda has joined a number of East African countries seeking to import electricity from Ethiopia as its demand grows. After it became apparent several generation project it is implementing will not come on stream early enough, now plans to import 400 MW from Ethiopia...
Metrorail’s first new passenger train will arrive in November next year, says Passenger Rail Agency of South Africa (PRASA) CEO Lucky Montana. “Next year we will be able to put our hands around the infrastructure and equipment we have been talking about for so long.”
The Competition Commission has launched an investigation into what it says are “price fixing, market division and collusive tendering in the market for the manufacture and supply of automotive components to original equipment manufacturers” (OEMs, or vehicle...
 
 
 
 
 
 
 
 
 
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