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Quarry industry gaining momentum owing to infrastructure development and legal compliance

15th February 2013

By: Yolandi Booyens

  

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Feedback from member companies of the Aggregate and Sand Producers Association of Southern Africa (Aspasa) reflect that the quarry industry gained momentum in 2012, owing to an increase in infrastructure development with a positive industry outlook expected for 2013.

Government, at the end of 2012, committed to providing better infrastructure development and to undertake certain projects such as building universities. Money for these projects has been set aside but needs to be properly spent, warns Aspasa director Nico Pienaar.

“It is no use to be in conflict with government as both parties need to work together to achieve a healthy and sustainable industry, ensuring quality mined products that can develop infrastructure in the hub of Southern Africa,” he points out.

Slower production levels are still evident in the quarry industry owing to a lack of overall demand. Insufficient capital expenditure by government has played a role, as have market surpluses and over-production, resulting in the stockpiling of mined commodities, aggregate and sand.

The effects of the 2008/09 global economic recession are mirrored in the aggregates and sand market slowdown, highlighting many factors that are stifling local production. These include weak global growth, poor investment into the country, the need to mine more efficiently than before, skills short- ages, slow infrastructure development and an unhealthy emphasis by government on mining safety measures such as Section 54 safety stoppages.

Although safety stoppages, owing to unsafe working conditions, are having a negative effect on production, they have also been a positive step, which causes fewer fatalities in the industry, Pienaar asserts.

Despite the challenges faced by local operators, South Africa is not alone in reporting dwindling production rates. Developed countries in Europe have slowed by a similar margin owing to stricter regulatory and environmental legislation. In the US, compliance demands and an increased focus on worker safety have also hampered production levels.

In contrast, developing countries in South America reported growth of up to 15% in non-metallic mining operations and China’s skyrocketing economy has led to a yearly 10% increase in production since 1981.

Australia, with a market similar in size and character to South Africa’s, has increased the market for mined nonmetallic commodities by an estimated 4% since 1970, Pienaar states.

South Africa’s regulators should view the performance of other developing countries as an indicator of what can be achieved locally. “We should start asking why so much emphasis is placed on regulating the mining industry and seek ways of improving our overall performance. “Government can also play a role by unlocking infrastructural spend that was earmarked years ago and for which budgets were provided,” he reiterates.

The realisation of economic growth requires proper infrastructure development. “It is important for government and the construction and quarry industries to work together,” Pienaar stresses, adding that Aspasa has a healthy, clear working relationship with the Department of Mineral Resources (DMR).

During 2012, the Minister of Mineral Resources Susan Shabangu set up a formal committee to deal with illegal quarrying, which is driven by the construction industry’s need for cheaper-priced sand and aggregate.

The extraction of these commodities does not comply with the necessary safety standards and, therefore, poses a danger to the public when used in the construction of roads and civil infrastructure.

In the past, illegal mining was only viewed as the theft of gold, platinum and other minerals of high value, Pienaar explains. Aggregate and sand does not have high value but the damage caused by illegal mining to the environment is severe.

Pienaar notes that there is a bigger focus on the issue of illegal quarrying by government. “Illegal quarrying greatly affects the construction industry as sand and aggregate used for building may not comply with legal standards to ensure the public’s safety.

The Mineral Resources Petroleum Development Act of 2002 is clear on mining requirements and the law has to be upheld.

“Aspasa has over the years complained about illegal mining with not much success. The authorities have been noneffective in policing this problem.” Aspasa now takes it upon itself to report illegal operations and see that action is taken.

In November 2012, the Department of Environmental Affairs (DEA) chief director of communications told Engineering News that illegal sand mining has been recognised as a significant issue by environmental advocate, Green Scorpions, in many of the provinces across the country.

“Many of the branches of the Green Scorpions are busy with cases involving illegal sand mining in response to complaints that have been registered. “The issue of illegal sand mining has also been identified as a strategic project by coordinating structure for environmental compliance and enforcement Working Group IV and enforcement blitzes were planned for early 2012,” the DEA stated at the time.

Aspasa states that it has done a great deal of work to self- regulate the quarry industry.

Pienaar stresses that the quarry industry has a responsibility to build efficiency into production processes, curb corruption, eliminate bribery and operate transparently.

The industry’s members also need to work with each other and government to create true partnerships between stake- holders, aim for global best practices to be internationally competitive and seek opportunities to increase development.

“Investing in training to tackle the skills shortage is also a factor needed to ensure economic development,” Pienaar points out, noting that, in return, government should aim to curb corruption and bribery and close the door on the damaging nationalisation debate.

To ensure growth across all local industries, government should create mining certainty and avoid overtaxing the industry.

Green Operations

Aspasa notes that it has thrown its full weight behind programmes aimed at protecting the environment. All member companies which, through their efforts, hope to set an example to nonmember companies of Aspasa, as well as the mining industry, regarding environment-friendly Aspasa member companies, have adopted sustainable mining practices.

Previously, unscrupulously operated pits and quarries were left to “scar” the environment and contaminate it as a result of mining activities, which were often left for future generations to clean up.

Over

the last few years, however, environmental awareness has prompted Aspasa to lead by example and launch its comprehensive About Face programme to guide its members on legislation governing the industry. The programme requires members to implement the legal requirements as set by environmental standards and guidelines.

Aspasa conducts audits on its member’s quarry operations, investigating health, safety issues and environmental issues. “It is compulsory for Aspasa’s members’ quarry operations to be audited by the association,” he explains.

The audits are unique to the quarry industry, aiming to ensure legal compliance and are based on International Standard of Organisation principles.

Aspasa’s yearly audits indicate that health and safety management is a top priority among its members and the practice constantly improves the way in which the association’s members conduct business. “While members still make mistakes, we believe the overall awareness of health and safety challenges will drive down the accident rate in the quarry industry, as well as the construction industry, which often owns its own quarry operations, to the zero levels we are aiming for,” states Pienaar.

“The audits benchmark operations against other participating quarries to provide a snapshot of the entire industry’s performance in terms of environmental regulations and guidelines. “The DMR may also use the information for future mining licence decisions,” Pienaar explains.

This year, the Aspasa About Face audit yielded encouraging results, proving that environmental health at member’s mines and quarries are better than ever before in South Africa.

Edited by Tracy Hancock
Creamer Media Contributing Editor

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