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Flexible, leaner service approach vital for African mining projects

22nd January 2016

By: Mia Breytenbach

Creamer Media Deputy Editor: Features

  

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Companies need to focus on becoming leaner and challenging the status quo when providing mining- and mineral-related services in Africa in the current global economic climate during which there has been a slump in commodity prices, engineering company WorleyParsons cautions.

“The provision of these services should further incorporate particular emphasis on the use of more efficient, cost-effective and technically integrated solutions that also reduce risk,” says WorleyParsons mining, minerals and metals GM Henry Jonker.

He adds that it has become standard at the company to use new technologies to maintain an evolving service offering, by applying smart, technical solutions to projects, such as the integration of SmartPlant engineering and design processes.

These include full-suite, data-centric solutions that add functionality, usability and work-process improvement concepts to tangible business benefits and three-dimensional virtual mine planning and design. Jonker explains that this contributes to significant cost savings for clients, as the technology can be applied to determine operational changes and challenges.

WorleyParsons business development executive Dona Serge Ngandu agrees, adding that this is underscored by certain projects that the company has undertaken, such as the implementation of its SmartPlant technology at a gold plant in Mali and the completion of a rehabilitation- and modernisation-related study in October 2015 on an iron-ore plant in Mauritania, both in West Africa.

“Through the application of smart technologies, WorleyParsons provided a newer technological process solution to capture and reduce the plant’s dust emissions, as well as reduce carbon footprint,” he explains.

Ngandu believes while Africa remains an attractive investment destination – based on its rich mineral resources – investors focus on projects that will provide a faster, higher return on investment and on using service providers that will reduce project risks.

“WorleyParsons, based on its expertise, skills and experience in risk reduction, has been appointed to several projects spanning the manganese, platinum, gold, gas and diamond sectors across Africa,” he adds.

Changing Scope
While the majority of WorleyParsons’ mining division work still stems from South Africa, Jonker believes that the bulk of the company’s future projects will come from the African mining market and infrastructure projects required to unlock mining opportunities.

“While the current long-term projects in South Africa focus on shaft sinking, constituting most of the work for the mining industry, new work in Africa is mostly study-related at this stage,” he says.

Ngandu adds that, since several heavy mineral projects, such as iron-ore projects, have been delayed in the past year, the company considers base metals, fertilisers, copper and gold, besides others, as viable projects. “Though gold seems to be stagnating, the commodity is still seen as a safe haven,” he acknowledges.

The company’s project portfolio is also shifting towards including more smaller, junior mining projects and fewer larger mining projects, says Jonker, adding that the company has repositioned some of its focus from Tier 1 companies to also assist Tier 2 and 3 companies.

“Several projects will become very viable when [the mining cycle] changes . . . the industry changes quickly; therefore, it falls on the ability of an organisation to change and readapt to harness these opportunities,” he stresses.

New projects in Africa are not only mining related but also concern infrastructure to allow for further enhancement of the mining industry, Jonker highlights. WorleyParsons’ involvement in this sector includes a 32-month contract for the Lake Turkana Wind Power project, in Kenya.

The company has completed more than one-third of the contract for the project, which aims to supply 360 MW of reliable, low-cost wind-turbine generator capacity to the Kenyan national grid.

“The wind farm represents one of the biggest private investments in Kenya’s history and forms part of the government’s drive to generate 5 000 MW of renewable-energy capacity by 2017,” Mining Weekly reported in November 2015.

WorleyParsons will attend this year’s Investing in African Mining Indaba conference and exhibition, at which the company expects to reinforce its presence in the industry, raise awareness of its capabilities and establish new networks. The Mining Indaba will take place from February 8 to 11 at the Cape Town International Convention Centre.

Edited by Tracy Hancock
Creamer Media Contributing Editor

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