Cautiously optimistic
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 Preview | Hatch enjoyed a number of successes on Kolomela project, including 18-million Lost Time Injury (LTI) free hours | 4.46 MB | Download |
 Preview | Hatch is currently working on a project for producer and marketer of concentrated phosphate and potash, Mosaic Potash in Saskatc | 2.28 MB | Download |
 Preview | Hatch Mining and Minerals Processing Director for Africa Lister Sinclair | 3.22 MB | Download |
Growing optimism on the back of a successful year in the South African mining industry, coupled with fears of a looming credit ‘squeeze’, has created an outlook of cautious optimism in the mining industry for the year ahead, says Hatch Mining and Minerals Processing Director for Africa Lister Sinclair.
“Even though South Africa’s mining industry has struggled to maintain its foothold against the significant growth seen in emerging countries such as South America, the country has still seen promising growth which should continue into 2012,” states Sinclair.
He adds that 2011 was a successful year for many project houses in South Africa, with most seeing an upsurge in work from the large mining houses. As a result of this upsurge from its stalwart clients, Hatch Africa has experienced what Sinclair has described as one of the best years in the history of the company.
“In addition to our larger projects that are currently on the go with clients such as Kumba and Gold Fields, we are currently working on a vast amount of studies, which we hope to eventually lead into execution. A number of these projects are forecast to go into construction in the latter part of 2013,” explains Sinclair.
Looking to Africa and its various commodities, Sinclair points out that there has been a large uptick in work related to iron-ore, gold, copper and coal. West Africa in particular is seeing a large amount of activity in gold and iron-ore in countries such as Ghana, Ivory Coast, Sierra Leone and Mauritania, while the Democratic Republic of Congo (DRC) and Zambia have come out very strong in copper.
Sinclair has identified Tanzania as an area where a large amount of expansion is taking place and interest has increased quite dramatically. “Similarly, rising foreign investment in Mozambique’s mining industry is spurring large-scale coal mining and associated infrastructure projects. Hatch Africa is currently involved in a large number of these projects, specifically in the Tete Province,” explains Sinclair.
Growth in emerging markets
A report published by Price Waterhouse Coopers (PWC) cites how emerging markets, such as South America, continue to change the face of the mining industry. When looking at the average Total Shareholder Return of the top 40 mining companies from emerging markets, they have more than doubled their return compared to the ‘traditional’ mining countries over the past four years.
Looking at Chile specifically, mining in considered to be one of the pillars of the Chilean economy, with copper making up more than a third of government income. Sinclair says that the mining methodology and automation that is being applied to mining projects in emerging countries like Chile is innovation personified.
“Hatch is currently working on a copper mining project in Chile with a production capacity of 140 kilotonnes per day. When compared to the South African monthly average of 180 tonnes per month, you begin to realise the vast scale of the operation and the level of expertise being applied,” explains Sinclair.
Leading the way in innovation
Hatch’s role as lead EPCM consultant to Kumba Iron Ore’s newly-developed 9 Mtpa open-pit Kolomela Mine in the Northern Cape saw the consulting firm complete the project both under budget and on time.
Hatch enjoyed a number of successes during the project, including: 18-million Lost Time Injury (LTI) free hours – a feat never achieved before in South African mining; being awarded Anglo American’s CEO Safety Award in 2011; and being Hatch’s Global Project of the Year – Sinclair says that this a significant achievement considering the fierce competition of other world-class Hatch project from across the globe.
In addition to Hatch’s role in the plant and stockyard portions of Kolomela, the company’s rail and infrastructure group successfully completed more than twenty kilometres of private siding rail infrastructure for Kumba Iron Ore.
The group’s involvement in the private siding rail infrastructure project with Kumba as well as its involvement with parastatal Transnet in the upgrade of the Sishen Saldanha Iron Ore Railway Line, allowed the firm to witness Kumba’s first 145-wagon train of iron ore being transported to Saldanha for shipment in December of 2011.
Hatch’s involvement in Gold Fields’ South Deep Ventilation Shaft Deepening Project, west of Johannesburg, saw the firm design and erect one of the world’s tallest steel headgears and what could be the world’s largest winders – the cutting-edge design will contribute to achieving Gold Fields’ gold production target of 750 000 oz/y at South Deep by the end of 2014. To the credit of Gold Fields and Hatch, the overall project took first prize in the Mining and Industrial category at the Southern African Institute of Steel Construction (SAISC) Steel Awards 2011.
Sinclair says that Hatch is currently working on a similar project for producer and marketer of concentrated phosphate and potash, Mosaic Potash in Saskatchewan, whereby Hatch Africa and Hatch Canada have designed and erected a Blair Multi-Rope (BMR) winder and a Koepe winder, as well as the associated headgear and shaft.
“Hatch has managed to achieve a number of ‘firsts’ on the project, one of which includes harnessing the heat generated by the winder’s motors to pre-heat the head frame in order to keep the conditions ambient at approximately 25 degrees Celsius – this considering that in Saskatchewan, temperatures can range from anything between 35 degrees Celsius to minus sixty degrees Celsius. The Mosaic project is currently in execution phase,” Sinclair explains.
Looking to the future, Sinclair says that Hatch is involved in an exciting project for a major gold producer whereby futuristic methodologies of mining at extreme deep level mines (below 4 000 metres) and means of reducing exposure of risk to people at these depths is being considered.
Sinclair’s outlook for 2012
Speaking on the outlook for 2012, Sinclair points out that all eyes will be on China. “China’s target to increase its Gross Domestic Product (GDP) to 8% annually, as part of its 12th five year plan, is not likely to be sustainable. However, should this growth drop to below 6%, it will have a knock-on effect around the world when looking at commodities,” explains Sinclair.
Global ratings agency Fitch said in a research report that the first set of economies to be affected would be Australia, South Africa, Brazil, Chile and Peru. Sinclair points out that should China experience a slow-down, it would only be temporary, and that there would be a quick recovery in 2013.
Speaking on Hatch Africa’s outlook for 2012, Sinclair says that the company has received a number of significant studies and projects, one of which is a suite of projects worth approximately R30-billion that will require more than 700 engineering, procurement and construction management (EPCM) professionals.
Ends.
Notes to the Editor
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About Hatch
Hatch supplies process and business consulting, information technology, engineering, and project and construction management and operational services to the mining, metallurgical, energy and infrastructure industries.
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