Mar 14, 2008
Engineering|Gold|London|Toronto|Africa|CoAL|Copper|Engineering News|Eskom|Mining Weekly|Pipe|Water|Africa|Australia|China|South Africa|Energy|Mining|Diamonds|Environmental|Parliamentary Portfolio Committee|University Of Toronto|Jeremy Maggs|Martin Creamer|Power|Water|Pipe|Engineering News|Mining Weekly|Fluidised Bed Technology|Same Time Use Technology
© Reuse this
Maggs: Let’s start with gold, you say that South Africa has been stripped of its gold crown by China, but now Australia is poised to become the first country to excel at mining on the ocean floor.
Creamer: Yes, top a Canadian Professor at the University of Toronto has tipped Australia to excel in mining gold from the sea bed. There are two companies that are actually located in Australia but listed on the Toronto exchange and also the London exchange and which have got very seafaring names, Nautilus and also Neptune.
Those companies are now setting about mining the ocean floor and particularly pursuing gold and copper. Besides having the crown for good gold production, South Africa has also worn the crown for being able to mine at depth, but they say it is far easier to put a pipe 3km down through the water than to sink a shaft through rock.
They also point to the sea-floor’s massive sulphides that they are targeting, which contain large quantities of gold and copper. They are using some South African technology, of course, because De Beers has always been an expert on mining diamonds in the sea and in fact the world’s most advanced company at doing that, but when it comes to gold, it’s another issue.
It’s now foreseen that Australia will possibly be the first to succeed and excel at getting the gold and copper treasure off the sea floor.
Maggs: Pretty much a mining theme to our discussion this morning. Vast quantities of raw chromite ore are still being allowed to leave the country’s shores in what, you say, is an unbeneficiated form. This would deny the country wealth and obviously job opportunities as well.
Creamer: That’s right. Just when we thought the hullabaloo of last year had made sure that there is legislation to prevent our chrome ore going out in raw form, we are now still selling family silver at a tenth of what we should be getting for it.
This kills jobs and revenue and it demoralises those who are spending a lot of money to beneficiate. So, the government promised quite emphatically last year that it would introduce legislation to stop this. That legislation unfortunately wasn’t put through separately, it was combined with big changes to the minerals legislation and it has now got bogged down in Parliament and thrown back to the Parliamentary Portfolio Committee.
During the same period of time, the Indians have managed to slap good tariff protection twice over and we have actually as South Africans done nothing and we are a far more mature industry when it comes to chromite ore and beneficiation of chrome.
Now with the power crisis, of course, a lot of the people doing it will say that it is far less energy intensive just to mine this ore and send it out rather than beneficiate it. So, it looks like we are just going to continue selling the family silver at a tenth for what we should be getting for it.
Maggs: Problems as well, or concerns with the country’s coal quality. You say it is going downhill so fast that use needs to be found urgently for this mountain of reject coal that is currently being built up.
Creamer: Eskom warned about this build up of reject coal at a recent conference. They said that we need to look at ways to try and use this. You can see it in two ways, either it’s an environmental scurge that you have got, the build up of huge quantities of reject coal, or you can say that there is energy in there and turn it to account.
Well, Eskom are looking towards the latter, where they will kill two birds with one stone and remove this mountain of discard coal that has built up over the years, about a billion tons worth and growing at about 60 000 tons a year. At the same time use technology known as fluidised bed technology in order to generate power from this.
This is something that hasn’t happened in South Africa before, where we make use of fluidised bed technology to turn this into power and electricity, but it does happen elsewhere in the world. So, it is now urgent that we do something as our coal in Mpumalanga goes downhill, the quality drops.
We are going to get more duff coal as they call it and before the Waterberg actually starts taking over and providing a better quality of coal, there could be technology put to use so that we can take this reject coal and turn it into valuable electricity.
Maggs: 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)
Updated 49 minutes ago The National Employers’ Association of South Africa (Neasa) will lodge an urgent application in the Labour Court in Johannesburg to stop the Metal and Engineering Industries Bargaining Council (MEIBC) from requesting Labour Minister Mildred Oliphant to extend the...
Updated 1 hour 4 minutes ago South African aerospace companies Denel Aerostructures (DAe) and Denel Aviation, both part of the State-owned Denel Group, have unveiled a major new project at the Africa Aerospace and Defence 2014 show on Thursday – the South African Regional Aircraft (SARA). This...
Updated 2 hours ago Three Chinese firms led by Shanghai Electric Group are considering setting up a coal mine and a 1 200 MW thermal power station in western Zimbabwe, company officials said. Industries and households in the southern African country have endured electricity cuts for...
Recent Research Reports
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.
Real Economy Insight: Road and Rail 2014 (PDF Report)
This six-page brief covers key developments in the road and rail industries over the past 12 months, including details of South Africa’s road and rail network and prospects for both sectors.
This Week's Magazine
The board of UD Trucks Southern Africa (UDTSA) has announced the resignation of MD Jacques Carelse. Long-time UD employee, corporate planning and marketing GM, Rory Schulz, has been appointed as acting MD while the process started to appoint a new MD. The Japanese...
There is a need to start planning another pumped storage scheme in South Africa. Much work has already been done at a site in the Limpopo province and the project was very close to being put out to tender at one stage. In 2008/9 the National Energy Regulator of South...
The Coega Development Corporation (CDC) is preparing to leverage its strategic coastal position to develop the Eastern Cape economy through proposed aquaculture development zones (ADZs), with a proposed R2-billion project aiming to contribute $278-million to the...
Completion of the ongoing construction of the 102 km Zomba–Jali–Phalombe–Chitakale road, in southern Malawi, has been extended from June to December 15 because of persistent rains and difficulties in paying the contractor. The project is being undertaken by Kuwait's...
The Malawi government has awarded South African firm Fischer Consortium the contract to upgrade the Malawi Road Traffic Information System. The Directorate of Road Traffic and Safety Services at Malawi's Ministry of Transport and Public Works says Fischer...