Rio Tinto’s Mine of the Future™ programme was unveiled in January 2008 and initially focused on the Group’s Pilbara iron ore operations. The programme is designed to create next generation technologies for mining operations that result in greater efficiency, lower production costs, improved health, safety and environmental performance, and more attractive working conditions.

Projects such as Resolution Copper in Arizona and Oyu Tolgoi in Mongolia will use an underground block cave mining method. This method requires construction of significant underground infrastructure prior to ore production. In anticipation of this need, Rio Tinto Technology and Innovation has been engaged in a long-running development programme to improve significantly both the safety and speed of constructing underground infrastructure such as shafts and tunnels.

The two new tunneling concepts from Atlas Copco and Aker Wirth will enable fast and cost effective tunnel creation. The shaft boring machinery being developed by Herrenknecht will combine rock excavation, rock transport and structural support – currently three separate processes – into a single system. All three new concepts are a result of civil tunneling industry technologies combined with input from Rio Tinto mining experts and contractor partners Redpath and Cementation.

John McGagh, Rio Tinto Head of Innovation, said, “At the heart of our Mine of the Future™ programme is industry-leading work to pioneer new technologies. The partnerships announced today will help us fundamentally change the world of underground mining by further improving safety and allowing more rapid construction of new underground mines. Our new partners will be very valuable in helping us to solve the challenges of developing block cave mines.”

The Rio Tinto, Atlas Copco and Herrenknecht teams will present information on their respective mining breakthroughs at the upcoming Society for Mining, Metallurgy and Exploration conference on 1-3 March 2010 in Phoenix, Arizona.

The investment sought must be for research and development, resulting in a working prototype or similar, which is ready for commercialisation. The proposed novel and inventive technologies must fall within the following technology areas:

Metals and Materials

The Innovation Fund seeks to invest in the development of novel and inventive metals and materials that have commercial application. These inventions must fall within the following cluster of materials and metals:

    * Light Metals and Super Alloys
    * Ferrous Alloys
    * Hard Metals
    * Stainless Steels
    * Metal Matrix Composites

Manufacturing

The Innovation Fund is seeking to invest in novel and inventive manufacturing technologies that have commercial application and fall within the following groups:

    * Metal Casting Technologies
    * Machining Technologies
    * Powder Metallurgy

Investment Amount and Criteria

The investment will be for a maximum of fifteen million Rands (R15 million) over a period of three years. The investment decision will be based on the following:

    * Existence of Proof of Science
    * Project being in the late stage of its research and development
    * Novelty and inventiveness
    * The commercial case for the technology
    * The capacity of the team proposing the technology
    * The applicant must be a company or be willing to register as such

Please read the Innovation Fund’s guidelines on returns and special conditions

If your technology meets the above criteria but has already proceeded beyond the research and development phase and is ready for commercialisation please visit the Seed Fund page

If you only need an investment to patent your technology please visit the Patent Support Funds page

Closing Date
The closing date for this call is the 18th of September 2009

www.innovationfund.ac.za

The problem in general is that the emerging contractor knows very little about Health and Safety. This lack of knowledge leads to incidents because the proper steps are not taken to address Occupational Health and Safety risks in a suitable manner.

This is why a Health and Safety file is required. I’m now referring to the Safety files that are expected to be compiled, maintained and available by contractors or sub-contractors who provide services on your site. 

The required Safety files are an attempt to force a contractor to at least contemplate the risks involved when performing the work he has been contracted to perform and then to put in place mitigation plans. The Health and Safety file is the place where these plans should be found. A lack of Health and Safety knowledge then leads to sub-standard Health and Safety files.

Health and Safety files are a contentious issue and Construction Safety files are probably one of the biggest problem areas.

The average contractor views the Health and Safety file as a one to five page document, and in the majority of cases, I can assure you that this will prove to be inadequate.

A guiding tool to the contents of a Safety file follows.

The file can be divided into the following parts:

Part 1: Introduction
Part 2: Reference Documents
Part 3: Definitions and terminology
Part 4: Roles & Responsibilities
Part 5: Objectives & Targets
Part 6: Planning & Procedures
Part 7: Health & Safety Specification Implementation
Part 8: Application of the Health & Safety Specification
Part 9: Health & Safety Practice
Part 10: Annexure & Addendums

In my following articles I plan to provide more information on what documentation and information should be contained in every section of the Health and Safety file.

Christel Fouche is the Managing Director of Advantage ACT, a Safety, Health, Environmental and Quality (SHEQ) service provider. You can read more SHEQ articles on her blog at christelfouche.com (http://christelfouche.com)

Article supplied by SHEQAfrica.com (http://sheqafrica.com)

The action reflects Moody’s view that the current trading prospects and economic environment in the metals industry will continue to adversely affect EBITDA levels and free cash flow generation, resulting in
accelerated cash burn and liquidity levels that could become insufficient to meet future debt service obligations. Reliance on continued availability under lines of credit is also seen as a source of concern
in the current environment, though the company recently successfully negotiated increased lines and revised covenants.

Reclam recently released its quarterly results for the period ended 31 December 2008, noting weaker operating performance and continued lack of visibility on a potential turnaround in its core ferrous markets. The company is highly exposed to cyclicality in commodities markets and has
experienced a severe deterioration in sales and EBITDA levels. It is the company’s expectation that some recovery may occur in the next few months as a result of destocking and the need to replenish inventory levels.

The downgrades and negative outlook reflect Moody’s concern that a more prolonged downturn and cash burn will eat into existing liquidity levels going into this downturn. Notwithstanding cash balances reported at 31December 2008 of approximately R1.3 billion and a relatively small revolving facility of R250 million, providing some cushion, the absence of a recovery in ferrous demand in the short-term, may result in rapid cash depletion and ultimately an inability by Reclam to meet its debt servicing obligations.

The outlook on Reclam’s ratings is negative. Further downward pressure could be exerted on the rating if the dislocation of the steel markets and related demand extends beyond the current year. An inability to
further cut back on non-essential capex investments to preserve cash and execute further cost cuts and efficiency improvements , will also lead to further downward pressure on the rating.

Pressure to return the negative outlook to a stable outlook could occur once Reclam demonstrates that it can implement a business plan that addresses the deterioration in financial and operating performance, which in Moody’s view could also require a capital injection to avoid default.

For the assignment of this rating, Moody’s has evaluated factors we believe are relevant to the credit profile of the issuer, such as i) the business risk and competitive position of the company versus others
within its industry, ii) the capital structure and financial risk of the company, iii) the company’s exposure to volatile ferrous and non-ferrous markets and the limited visibility over how the recent drop in demand
will impact the projected performance of the company over the near to intermediate term, and iv) management’s track record and tolerance for risk. These attributes were compared against other issuers both within and outside the company’s core industry subsector and our ratings are believed to be comparable to those of other issuers of a similar credit risk.

Prior to this rating action, on December 5, 2008 Moody’s downgraded Reclam’s Corporate Family Rating (CFR) and Probability of Default Rating to B3 from B1. Moody’s also dropped the rating on the EUR 253m Senior Secured Notes due 2013 to B3 from B1.This action concluded the review for a possible downgrade commenced on November 6, 2008. The rating outlook was negative.

Headquartered in Melrose North, Johannesburg, Reclam is one of the leading producers of recyclable ferrous and non-ferrous metal products in South Africa with market leading positions in its key product lines.

The consideration payable by Cape Lambert for its increased investment in Marampa is the issue of 17 million fully paid ordinary Cape Lambert shares to Marampa. These shares are to be issued to Marampa under the Company’s 15% threshold in accordance with the ASX listing rules.

Prior to entering into the Initial Marampa Agreement on 1 October 2008, the Company conducted extensive due diligence on the Marampa Project and believes that the Project has the potential to become a significant iron ore project, and as such, the Company could return such value to the Company and its shareholders.

This view has been enhanced by discussions with potential off-take partners and other parties interested in the joint development of the Marampa Project and/or related infrastructure and desktop studies of the Marampa Project by Cape Lambert technical advisors.

For predominately these reasons the directors of Cape Lambert feel it timely to increase the Company’s investment in Marampa.

On 1 October 2008, Cape Lambert announced that it had entered into an agreement to make a 30% investment in Marampa, owner of the Marampa Iron Ore Project, through the issue of 44 million Cape Lambert shares and agreement to sole fund the first US$25 million toward a definitive feasibility study at the Marampa Project (“Initial Marampa Agreement”).

The Company notes that its announcement of 1 October 2008 incorrectly stated that the 44 million Cape Lambert shares, issued pursuant to the Initial Marampa Agreement, were issued to African Minerals. These shares were in fact issued to Marampa.

Under the Initial Marampa Agreement, the Company also holds an exclusive option to invest further in Marampa by acquiring from African Minerals the outstanding shares in Marampa, which would result in Marampa becoming a wholly-owned subsidiary of Cape Lambert, at a price of US$200 million, less the aggregate of (i) US$25 million and (ii) the value of the 44 million Cape Lambert shares (already issued) and the 17 million shares (to be issued) as at the date of closing of the transaction. The option may be exercised at any time during the feasibility study period and for a period of three months immediately after its finalisation.

As manager of the Marampa Project, Cape Lambert has completed planning and definition of the initial work program, which included recruitment of several expatriate project management personnel, who have now mobilised and are in country.

The initial work program at Marampa has commenced, which will involve regional mapping, geophysics, drilling and metallurgical test work on the tailings (including recovery of a bulk sample for pilot scale work in Australia) and drill testing of the known geophysical anomalies.

The Company has also held discussions with parties interested in joint development of the Marampa Project and/or the development of the related infrastructure. These parties will visit the Marampa Project in the coming weeks so as to progress these discussions.

Rio Tinto’s subsidiary, Rio Tinto Iron & Titanium, has begun production of ilmenite at its QMM mineral sands operation at Fort Dauphin in Madagascar.

The development (owned 80 per cent by Rio Tinto and 20 per cent by the Madagascar government) began as an exploration project in the 1980s and is the second largest investment on the island. Ilmenite from Madagascar will be shipped for processing at Rio Tinto’s metallurgical complex in Sorel-Tracy, Quebec, which has upgraded its facilities to process this product.

The total cost of the investment in Madagascar and Canada is US$1.2 billion. Madagascar ilmenite contains 60 per cent titanium dioxide making it higher quality than most other global sources. It will be upgraded in Canada to produce a new 90 per cent titanium dioxide chloride slag suitable for global titanium feedstock markets where it is used in the manufacture of pigments for the paint and plastics industries.

Tom Albanese Rio Tinto CEO

Rio Tinto chief executive Tom Albanese commented: “This first production is a major landmark in a project which, notwithstanding many complex challenges, has been described as a model for future projects in Africa and elsewhere in the developing world.”

Harry Kenyon-Slaney, managing director of Rio Tinto Iron & Titanium, added: “The project will bring enormous benefits to the region. The floating dredge and wet plant, successfully launched in November, and the dry mill launched in December are producing concentrate at target quality. We are still in the early commissioning stage but expect to increase production over the coming months.”

The current mine site is at Mandena, to the north of Fort Dauphin, and production in phase one will eventually ramp up to 750,000 tonnes per annum. Later phases will be at Ste Luce and Petriky and there is potential to expand production to 2.2 million tonnes a year.

The first shipment of ilmenite to Quebec for processing is expected in March 2009, when work is completed on the new port of Ehoala to the south of Fort Dauphin. The construction of a new port is a public/private partnership executed by QMM that has benefited from a government grant of $35 million, funded by an IDA (International Development Association) loan from the World Bank. It will be a multi-user port capable of attracting other industry to the area and also providing a destination point for cruise ships.

The port, which can handle vessels up to 60,000 tonnes, is expected to promote existing local industries such as sisal growing, lobster fishing and harvesting of medicinal plants and fruits, and attract investors to a 400 hectare industrial zone nearby.

The social and environmental programme set up by QMM in the region includes a 620 hectare conservation zone that has been excluded from the mining area to protect the surviving littoral (coastal) forest and management of 31,275 hectares of legally protected biodiversity offsets.

Rio Tinto has worked closely with organisations such as Kew Gardens (with native species seeds being sent to the Millennium Seed Bank), Birdlife International (for the establishment of protected areas), Conservation International, Flora and Fauna International, Missouri Botanical Gardens and the Malagasy government. The aim of this work is to achieve a net positive impact on biodiversity and to rehabilitate and restore the land and eco systems affected by operations.

Community and social programmes have also been conducted in partnership with a range of national and international NGOs and development agencies, including Population Services International, USAID and UNDP among others. QMM seeks to promote local employment opportunities and small enterprise development as well as to improve health and education outcomes for its communities.

To finance the plant construction the Company has secured a loan facility of ZAR 30 million (GBP 2 million).  The lender has, subject to South African Exchange Control approval, the option to convert the loan into Chromex ordinary shares at a 22p strike price.  

In line with the reduced demand for chrome, Chromex has temporarily reduced production at Stellite to approximately 10,000 tonnes per month of run-of-mine ore.   However, importantly the Company currently has two users seeking off-take agreements for this ore, and is also actively discussing an off-take agreement for chemical grade sand. An update on these developments will be provided in due course.

Stellite currently has a SAMREC compliant resource estimate of 31.9 million tonnes of chromite, which is being mined profitably and further underpins the robust nature and economic viability of the Stellite project.  Chromex plans to upgrade the inferred resources through additional drilling and look at the feasibility of developing the underground resources in 2009.

Chromex CEO Russell Lamming said, “The construction of the plant will provide a further string to our bow and allow us to deliver a range of products to market which have the ability to positively impact revenues going forward. Importantly, in addition to the loan facility we have a healthy cash position of £2 million and a low cost base which places Chromex in a strong position to weather the current economic storm and actively position itself for when demand for beneficiated chrome products rise once again.”

50 metres at 58.6% Fe 0.12 % P, 4.98% SiO2 and 1.58% Al2O3 from 16 metres
48 metres at 59.0 % Fe, 0.11% P, 4.00% SiO2 and 1.17% Al2O3 from 14 metres
46 metres at 58.1% Fe 0.14% P, 4.85% SiO2 and 1.72% Al2O3% from 12 metres
42 metres at 59.6% Fe, 0.07% P, 4.50% SiO2 and 1.41% Al2O3 from 4 metres

Wodgina, which is part of the Greater Abydos Project, is strategically well placed abutting the Great Northern Highway, the FMG Railway line and the BHPB Railway line. “A discovery like this, 100 kilometres from a world class iron ore port and less than 10 kilometres from road and rail is a real win for Atlas” commented David Flanagan, Atlas Iron’s Managing Director.