Engineering and Mining Journal - Whether the market is copper, gold, nickel, iron ore, lead/zinc, PGM, diamonds or other commodities, E&MJ takes the lead in projecting trends, following development and reporting on the most efficient operating pr
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REGIONAL NEWS - AFRICA MAY 2017 • E&MJ; 23 www.e-mj.com to $47 billion, leaving very little cash for exploration. Even if the gold price rose most producers would be using the addi- tional cash to pay down debt rather than invest in finding new resources. "It's the reckless behavior of the in- dustry that has left it heavily in debt," Bristow noted. "The money spent during the commodity supercycle went down the drain." Mines were also leery of setting up new operations in countries where regu- latory uncertainty heightened risk. South Africa, once the go-to destination for gold had now fallen from favor due to shifting legal requirements around black share- holding. Bristow himself is a South Afri- can but has chosen to focus elsewhere on the continent, as have many others. Around 18 new mines have been com- missioned in the past decade in West Af- rica compared to the half dozen or so in South Africa. The tradeoff however is that poor infrastructure means mining com- panies have to pretty much bring every- thing they need with them. In the DRC for instance Randgold is building hydro dams to power for its Kibali operation. Global consulting firm Ernst & Young said in a report last year that since 2000, mines in Africa spent around $15.3 bil- lion on electricity and operating costs. Bristow warned that governments would need to continue being investor friendly if they hoped to draw ongoing investment. In the meantime, too little was going into greenfield gold and Bristow expects supply to begin to rapidly decline within the next decade. "There is not enough ex- ploration. We expect gold supply to fall by a third by 2025," he concluded. Kimberley Court Issues Liquidation Order to Rockwell Diamonds A judge in Kimberley, South Africa, during late March, issued an interim liquidation order against three subsidiaries of Rock- well Diamonds: Rockwell Resources RSA (Pty) Ltd., HC van Wyk Diamonds Ltd and the Saxendrift Mine. Interim liquidators have been appointed by the Master of the High Court, in accordance with requisi- tions by the major creditors. However, in view of further filings by Rockwell, they will not take control of the three com- panies, which remain in operation. Rock- well, an alluvial diamond miner, is known for producing large, high quality gemstones. On March 31, 2017 Rockwell filed a motion with the court, on an urgent basis to bring the date forward to consider the merits of the liquidation case brought by C-Rock Mining. The company has sub- sequently filed for business rescue. The effect of a business rescue filing is that any liquidation order is automatically stayed. If successful in its application for business rescue, a business rescue prac- titioner will be appointed to work with company management to restructure the company's affairs. In the meantime, Rockwell remains fo- cused on the commissioning and ramp-up the production rate of the processing plant at Wouterspan and the relocation of the Holsloot plant to Stofdraai. The Wouterspan plant is nearing completion, with ore being processed through lines 1 and 2 and com- missioning of line 3 now complete, to be followed by the ramp-up in processing rate. TAILINGS FLOTATION CELLS THICKENER UNDERFLOW CONCENTRATORS CENTRIFUGE AND CYCLONE FEED Series 5200 Control Pinch Valve Series D Slurry Knife Gate Valve Series DX Slurry Knife Gate Valve Series 75 Manual Pinch Valve Red Valve www.redvalve.com | 412.279.0044 The Best Choice for the Toughest Mining Applications. Since 1953, Red Valve Company has been the world's leading manufacturer of slurry valves for the mining industry. Built to last, Red Valve products are the industry's first choice for isolation and modulating valves througout a mining operation. Our global representative network stands ready to work with you.