As the major supplier of explosives to the South African mining industry – and further afield in Africa – AEL has concentrated its technological innovation on developing specialised explosives, initiating systems and services that improve safety by optimising blasting efficiencies.
One such risk is the escalation in demand for commodities used in mining projects themselves and increases in prices of those commodities. For example, the recently experienced shortage of tyres for large earthmoving equipment globally was a result of the economic boom in China. The price of steel in South Africa has surged dramatically in the last two years owing to the import pricing parity formula used in South Africa, which makes its steel manufacturers among the most profitable in the world. This impacts the cost of implementing projects in the region and causes problems in managing steel price escalation.
“The plus side, however, is that if the management of mining companies do the right things many of these community and socially related risks can be managed,” Cattaneo says. “One can mitigate risks related to changes in regimes by forming good relationships with a variety of stakeholders including the host government, local suppliers and forming joint ventures.”
Greenhill believes that ALT-X is very much suited to mining and exploration. “South African and African resource-based companies source their labour, technology and of course the resource itself in this region; there is no reason they should need to use entirely foreign capital. South Africa does have an investment environment where one is able to raise capital for listings and the ALT-X listing requirements are appropriate for start up exploration projects, late stage exploration or junior mining projects.”
A further and more concerning restriction on construction capacity is the shortage of human resources in the industry. The construction upswing has stretched resources to the limit. There are only so many teams available. Succession planning is also a problem – it seems that there is a relatively big gap between the older experienced resources and the next level younger entrants. In these market circumstances, it will probably be to the advantage of both the clients and constructors to negotiate upfront participation on new projects and reserve capacity, Smith says. This will ensure that competent teams are allocated to the projects.
Since 1967 nearly 500 complete Bateman Modular Plants or sections of plants have been supplied to sites on land in about 30 countries and at sea, primarily to process diamonds, emeralds, coal, graphite, magnesite, andalusite, chromite and platinum.
Paardeberg East –
one of BRC’s
South African sites]Toronto, Canada --- MININGREVIEW.COM --- 12 February, 2008 - BRC DiamondCore Limited (formerly named BRC Diamond Corporation) – a development company formed to focus on diamond exploration and production in southern and central Africa – today completed the acquisition of all of the outstanding shares of Diamond Core Resources Limited , thereby effecting the merger of its business with that of Diamond Core.
the diamond plant
at Alto Cuilo,
in Angola]Cape Town, South Africa --- MININGREVIEW.COM --- 11 February, 2008 - Diamond production in Angola last year reached 9.7 million carats, representing revenues estimated at US$1.27 million (R9.5 million), reports allafrica.com, quoting the Angolan News Agency ANGOP.
The news agency learnt from a source at the National Diamond Company of Angola, ENDIAMA – while attending the International Mining Indaba here – that industrial production in 2007 amounted to 8.6 million carats, while artisanal output reached 1.1 million carats. Company estimates quoted production in 2006 at approximately 10 million carats – a huge 67% increase over the 4 million carats produced in 2005.
the first deep-sea
vessel mining in
South African waters]Johannesburg, South Africa --- MININGREVIEW.COM --- 8 February, 2008 - Diamond giant the De Beers Group – the largest diamond mining company in the world – showed a 14% increase in earnings from US$425 million (almost R3.2 billion) to US$483 million (more than R3.6 billion) in 2007. International production reached 51.1 million carats, maintaining the record level achieved in 2006.