https://www.miningweekly.com

Mechanisation, automation suggested as solution to surviving bleak iron-ore market

4th December 2015

  

Font size: - +

With the outlook for iron-ore quite bearish, “some punters are even talking about the unthinkable” – a price below $40/t, after the commodity’s price dropped below $50/t in October, says machine vision solutions company Stone Three Mining Solutions CEO Louis Marais.

“Things are tough and the reality of this for South African mines is simple – become cost efficient or go out of business.”

An early casualty of this reality is the closure in July of diversified major Anglo American’s subsidiary Kumba Iron Ore’s Thabazimbi mine, in Limpopo, says Marais.

The simplest, but perhaps improbable solution, given the existence of open market policies in South Africa, he notes, is to have some form of price regulation to preserve much-needed jobs.

“However, while this could be applied in South Africa, it certainly would be extremely difficult to apply internationally. Moreover, it would fly in the face of the Competition Commission’s purpose of preventing restrictive business practices and the abuse of dominant positions and mergers to achieve equity and efficiency in the South African economy.”

Stone Three Mining Solutions process engineer and control expert Robbie Brown explains that process optimisation is essential. “This means having the right people in management, having the right plant and equipment in place and a highly efficient, modernised operation.”

Marais says process optimisation essentially means mechanisation and automation.

He adds that ore mining company Assmang’s Khumani iron-ore mine is an example of a mine that has invested con- siderably in technology, giving the operation a significant advantage in a difficult economic environment.

However, the arguments for and against mechanisation and auto- mation puts mine owners at loggerheads with trade unions.

“The positives, given South Africa’s position as a developing nation, are that it will upskill people and increase productivity. On the downside, as the trade unions will argue, is that it will mean job losses,” comments Marais.

He adds that, even so, upskilling workers will not be a simple process as operating high-technology equipment and systems requires an integrated skill set, and moving people into information and communications technology requires the necessary vision from management, effective planning and political will.

“Nonetheless, if South African iron-ore mines are to survive on the international market, they will have to mechanise and automate. This is the harsh reality.”

Brown adds that metallurgists need to understand their mineral extraction processes by measuring influential variables – smart technology can empower them to conduct this discovery process, which enables the improvement of operational efficiency.

However, putting in place the right integrated solution for a given mine requires a combination of skill sets, knowledge and experience, highlights Marais.

“Technology and consulting companies in the mining industry have a critical role to play in working closely with their clients to find workable, long-term solutions necessary for the survival of iron-ore mines in today’s hugely challenging market,” he concludes.

Edited by Tracy Hancock
Creamer Media Contributing Editor

Comments

The content you are trying to access is only available to subscribers.

If you are already a subscriber, you can Login Here.

If you are not a subscriber, you can subscribe now, by selecting one of the below options.

For more information or assistance, please contact us at subscriptions@creamermedia.co.za.

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION