Global environmental engineering consulting organisation Golder Associates will highlight its service offering for the African continent at this year’s Investing in African Mining Indaba, which will take place at the Cape Town International Convention Centre (CTICC) from February 3 to 6, MD and Africa regional VP Dr Ralph Heath tells Mining Weekly.

“The Mining Indaba is the premium conference and exhibition for the mining industry in Africa, which provides a platform for mining companies, suppliers and consultancies to show what they have to offer potential investors and industry role-players. This is why Golder chooses to participate in the event,” states Heath.

Sustainable Mining Practices Key

Heath further points out that, over the last ten years, the issue of sustainability in the mining industry has come to the fore.

He highlights UK-based International Council on Mining and Metals’ running of a Sustainable Development forum during the course of the Mining Indaba, in collaboration with the organisers, as indicative of the increasing importance of sustainable practice in mining over the last decade.

“The focus on sustainability has been driven by investors, shareholders, governments and local communities who recognise that mining operations have to be undertaken in a way that mitigates negative environmental impacts,” states Heath.

Environmental Concerns Paramount

Golder's regional operations leader and environmental projects director Rob Hounsome says aligning mining projects in Africa with international project financing requirements, while ensuring that there is a direct link to the work conducted on the ground and that clients’ expectations are being met, can be challenging.

“Awareness of environmental sensitivities is decades old and the nature of enforcing environmental regulations has changed. Further, environmental compliance is constantly being reviewed by companies and the countries in which they operate.

“Historically, a company may have considered carbon emissions and energy efficiency conceptually. However, companies looking for international financing also need to follow International Finance Corporation performance trends,” explains Hounsome.

Moreover, he emphasises that awareness of environmental issues has developed into an essential part of a mine’s operational ethos.

“For example, mines that used to be located far away from power grids used a massive diesel generator, which required large amounts of energy. However, mining companies are being asked by local and national governments to use alternative or renewable energy, such as solar panels, to power their operations,” says Hounsome.

He emphasises that South Africa, in particular, is highly conscious of environmental issues.

“South African companies are, for the most part, in line with international standards, while countries, such as Ghana and Tanzania, are making steady progress to ensure that the environmental standards of mining companies operating in those countries are in line with international standards,” states Hounsome.

Further, he explains that many mining companies have established environmental management teams, as underperformance in environmental compliance can impact negatively on operations and investor attractiveness.

“Mining companies are aware that if they do not implement their environmental management programmes they will face severe legal, financial and reputational risks,” stresses Hounsome.

In addition, Golder Associates principal André van Niekerk points out that water concerns are among the most important environmental challenges facing the sustainability of mining operations in Africa.

He highlights certain drought-affected areas of South Africa, such as the North West and parts of the Free State and the Northern Cape, as being indicative of the country’s ongoing water-security concerns.

“Mines have had to strategically reposition and reallocate available water resources to ensure that they can continue with their mining operations,” states Van Niekerk.

He points out that many of the mining techniques, specifically in opencast, and in underground coal and gold mining are water intensive. Managing the ingress of water into mines is a costly and complex activity for mining companies.

“An impacted water source cannot be directly discharged, owing to the impaction of the materials,” he explains.

Van Niekerk states that water-security issues are of paramount importance, as South Africa is subject to fluctuations and climate change. “So, even if there is access to a water resource, that resource may fluctuate in terms of its availability.”

Further, he notes that there is a national drive across several sectors, including mining, agriculture, urban development, heavy industry and power generation, to use water more efficiently.

“It is a serious concern when you have limited access to an unreliable resource. You have to use what you have access to as efficiently as possible,” says Van Niekerk.

He adds that the issue linking water security and sustainability in mining is that mining does not take place in isolation. For example, water needs to be shared between a developing mine and the surrounding communities, as well as other sectors, like agriculture. However, the mining industry’s ability to collaborate with other sectors for equitable access to the water resource, as it becomes scarcer, continues to be a highly challenging issue of concern.

However, Van Niekerk believes that the mining industry has stepped up to that challenge and has stopped developing new projects and resources in isolation.

“Mines are considering the surrounding communities and water reclamation projects at coalfields. About five years ago, mining major BHP Billiton’s Optimum colliery in eMalahleni, Mpumalanga, became the first major mine to implement water-treatment technologies. However, mining companies are accepting that water treatment is part of a mine’s overall water management solution,” he says.

Further, Van Niekerk notes that, although water treatment is being implemented, it is still an expensive process.

“While a mine remains operational, it can continue to treat water. However, issues arise when a mine closes and the ongoing treatment of water in the area is no longer affordable. Using a water resource on a mine after it has ceased operating and how you manage the impacted water is a major challenge, as this directly relates to the cost of water treatment,” he states.

Consequently, Van Niekerk highlights the need for new technologies that decrease the cost of water treatment.

“There is a new wave of innovation in terms of water treatment, how conventional plants are built and in the introduction of passive treatment technologies,” he explains.

Van Niekerk says Golder  focuses on providing its clients with comprehensive water solutions.

“In providing these solutions, we prefer to work in partnership with all stakeholders. We collaborate with a large network of technology suppliers, service providers and advisers. It is absolutely key to  work together with the communities around the mine,” he states.

Van Niekerk adds that, if the water management programmes are properly planned and implemented, communities can be left with an asset in terms of the wastewater treatment plant, which they can operate themselves long after the mine has ceased operating.

“However, if mine water management is not properly managed and systems lapse, communities around the mines can be left with a burden,” he warns.

Adapting to Clients’ Needs

Golder’s client base is a mix of mining majors, mining juniors and developing mining houses.

“We have had to adapt dramatically in the past 18 months to the cost-cutting requirements of all our clients, who have been placed under severe strain, owing to the global economic downturn,” explains Heath.

He adds that mining companies have become significantly more strategic in the way they conduct their operations.

Heath points out that the company’s negotiations have become more complex and extensive than what they were in previous years, specifically with the smaller mining houses, which have to be more prudent in terms of how they effectively deploy their capital expenditure.

However, he notes that the fundamentals of mining operations, such as ensuring safety compliance, optimal operational efficacy and logistical coordination onsite and offsite, remain the same.

In addition, Heath states that many larger mining companies are aiming to consolidate their existing operations instead of ploughing resources into new projects, owing to the difficulty of securing investment in greenfield projects.

Nonetheless, he notes that Golder was involved in greenfield copper projects in the Democratic Republic of Congo (DRC) of several junior miners last year and the company has recognised that many of the junior mining houses that were willing to risk investing in new projects were rewarded at year-end through the commissioning of their mines.

Heath points out that the nature of winning contracts for projects has also changed, as companies have to bid for individual stages of a project as opposed to the complete life cycle.

“Mining houses have to raise the capital for each stage of a project, owing to the tough economic climate in which they are operating,” he says. This means that bids have to be significantly cost sensitive and provide value for money.

In addition, Heath notes that the diversity of mining companies that work with Golder has changed significantly over the last five to ten years, owing to the rise of Asian countries’ mining operations, particularly those of China and India.

“Working with Asian companies presents its own unique challenges, as they have their own way of operating, which is different from South African and other Western-run companies,” he explains.

Heath says that, when working with smaller mining companies, there is a need to develop robust and close business relationships, as they require more hands-on assistance than major mining houses.

Service Offering

Golder has a reputation for its approach to developing new mine management techniques and comprehensive solutions that add value to operations and form the basis of mining operations attaining production targets, says Heath.

“Our resource and reserve estimation services offer data validation, geological, geostatistical and financial evaluation modelling, orebody grade estimations and risk assessments, as well as compliance and resource auditing,” he adds.

Further, Heath notes that the company’s specialists provide a complete range of mining engineering services for feasibility studies, the optimal efficiency of existing quarries and openpit and underground operations.

“Our mining engineering services include, but are not limited to, openpit design and operation layouts, mining method selection and efficiency improvements, mining method assessment and scenario modelling, detailed mine layout and design, operating and capital estimations, efficient production scheduling and engineering, procurement and construction management,” he says.

Other services offered by the company include mine geotechnics, underground and openpit mining, mining geology and grade controls, project data assurance, groundwater management, acid mine drainage assessment and management, mine waste management and surface water management, as well as mine closure and rehabilitation planning.

Indaba Importance

Heath says the indaba provides opportunities for Golder to become aware of the latest developments outside of South Africa, which is important, as Golder has several offices across the African continent, including Ghana, Botswana, the DRC and Mozambique.

He adds that, in 2013, Golder worked on projects in 32 African countries such as Ghana, Madagascar, Mauritania, Senegal and Angola.

The firm’s Mining Indaba delegation will comprise about 12 senior management members. Six delegates will represent Africa while the rest will consist of representatives from Golder’s Canada, US, Australia and Asia offices.

The Investing in African Mining Indaba represents the company’s largest market-spend in terms of conferences and exhibition participation and is an event that Golder meticulously plans for several months in advance.