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
Issue link: https://emj.epubxp.com/i/342236
method will require a major change in the mine design." The mine, reasonably shallow in terms of gold mining in South Africa, has two shafts—a decline shaft to move machin- ery in and out of the operation and a ver- tical shaft for transporting men and materials, as well as rock-hoisting. Ventilation and water conduits are accommodated in the vertical shaft. Sandvik twin-boom drill jumbo, LHDs and 30-metric-ton underground trucks formed the basis of the operations' mechanized fleet. It was in all respects a state-of-the art operation, yet it failed. "The first thing everyone asks is why we bought it," Richard Stewart, senior vice president of business development at Sibanye, said at a special analyst briefing held recently, "…and our re- sponse is, it was a great deal." Stewart said the company paid a nomi- nal $7 million for Burnstone, which includ- ed its debt of $177 million that comes ring-fenced to the mine itself so protecting Sibanye from historic financial liability. "It takes 10 years to develop a mine—and all that work has already been done and so the project is already mostly de-risked. There's been $500 million in capital already spent. How can you not do it? To start a project from zero with most of the work already done is a unique position to be in," Stewart said. Much of the issues with the mine are related to an overly ambitious mech- anization plan, as well as attacking an ore body that was poorly under- stood. "You cannot mine the entire deposit," Stewart said. "It has to be worked selectively." Stewart said the approach will use conventional and well-understood mining layouts. Selective breast mining with scraper cleaning will be used at the stope face, with a mechanized footwall infra- structure implemented. Mechanization on reef will be re- moved to reduce dilution and higher grade blocks will be targeted first. Extensive drilling has also taken place—under previous owners as well as by Sibanye. "More than 460 boreholes have been sunk. That's more than any other mine on the Wits basin," said Stewart. There's still work to be done. A detailed sediment and structural model- ling study has begun, and all boreholes will be re-logged. A detailed seismic sur- vey will be carried out next year. "By carrying out a detailed review of the ore body and using appropriate and under- stood mining methods, we think we can take the risk out of the project," Stewart said. In the meantime, the company is still on the lookout for deals. "We have been through the front door of every major plat- inum producer, but have no specific tar- gets," said Froneman. "We will look at any- thing—gold or platinum. But unless it enhances earnings—and, by that, we mean within two to three years—we won't do it." Sibanye will probably be closely watched in the next few years. It stands out as a wildly optimistic feel-good story in an industry struggling with a relentless flow of bad news. At a time when its peers are nervously eying the door, Sibanye is for now resolutely committed. "We have decided to position ourselves as a South African-focused company," Froneman added. "We are happy with that." 52 E&MJ; • JULY 2014 www.e-mj.com S I B A N Y E G O L D Mine workers have to take three different shafts to access the lower levels of Driefontein. Extensive stoping in mined out areas is giving access to lower grade deposits known as 'white zones' to extend Driefontein's life. EMJ_pg50-52_EMJ_pg50-52 7/1/14 2:52 PM Page 52