Local Enterprise Project Management (EPM) solution provider, UMT Project and Portfolio Management Services South Africa (UMT Consulting SA), has announced that there is an early adoption of a risk management framework on mining project life cycles. The company developed integrated risk management methodologies (IRM) to implement risk management in these specific industries.

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Jan du Plessis the chairman of metals group Rio Tinto has distributed the following letter to shareholders as Australia contemplates its “super tax” on mining firms in the region:

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The establishment of an Integrated Project Management Control Office (IPMCO) is the fastest growing concept in project management today and is extremely important when implementing project quality systems that effectively integrate with business quality systems in the mining and engineering sectors. To keep pace with increased competition and tougher economic conditions in a fast-paced global economy, mines must do more using fewer resources. This is according SA’s largest Project, Program and Portfolio management solutions provider, UMT Consulting SA.

The Company’s CEO Pieter Meyer says quality within mining and engineering projects has become an absolute necessity. “The majority of mines do not even attempt a project if conformity to ISO 9001 is not assured. It has become essential that the project’s Quality Management System aligns and integrates with the mining and engineering organisations’ existing Quality Management System.”

Meyer and two of his mining IPMCO subject matter experts, Chris Barnard and Johan Simons, say the true measurement of quality is based on ‘exceeding the expectations’ of the customer. “This applies to internal and external customers and each staff member with whom we deal during the course of our work.”

In order to achieve this, UMT Consulting SA needs to accept responsibility for the quality and control of its processes, products and services; actively exceed the quality and controls requirements of its clients; continuously strive to improve its knowledge and quality and controls processes; and actively participate in the maintenance and controls of a Quality Management System.

It believes that an IPMCO in the mining and engineering, with an integrated project Quality Management System, is the only answer to ensuring project delivery success. UMT Consulting SA uses a unique approach in the implementation of project Quality Management Systems to align it with the business Quality Management systems.

“During this approach, we make use of business analysis, process mapping and procedures with supporting templates and registers for the project Quality Management System. These processes are simulated to confirm effectiveness on large mining and engineering projects. This integrated project and business Quality Management System produces trusted dashboard reports for any organisation to make pro-active decisions,” says Meyer.

Advantages of a project Quality Management System in a project include:
• Being pro-active in the elimination of potential non-conformities
• The project is under control from the pre-feasibility stage
• Pre-manufacturing is under control and vendors are properly and sufficiently guided
• Construction happens within a controlled environment
• Smooth hand-over of the project to the client
• Solid operational footprint for future projects

“From our experience the disadvantages of not having a project Quality Management System within a Project are uncontrolled project, financial losses due to non-conformities and re-manufacturing or constructing, high liabilities during and after the project, jeopardising legal compliance, and poor market reputation for contracting companies which can put future business at risk,” he adds.

Meyer, Chris Barnard and Johan Simons stress that mining and engineering companies need to ensure solid control by integrating their project and business Quality Management Systems.

“The problem most companies face is that they control projects using two separate systems which leads to rework, wasting of manpower, miss-alignment and unexpected spend on external audits due to none conformances. They need to be more proactive than reactive to combat the current economy pressures,” they conclude.

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Diversified resources group Xstrata has slammed the introduction of a proposed resources tax in Australia. Below is the press statement issued by the group:

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Given the uncertainties facing the mining sector, mining companies will have to adopt sufficiently flexible planning strategies to accommodate a range of potential scenarios – a single vision cannot encompass the almost endless variation of challenges they may face in 2010. Deloitte’s global mining team put together the following ten trends that mining companies will face in 2010:

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The establishment of an Integrated Project Management Control Office (IPMCO) is the fastest growing concept in project management today and is very important for the effective implementation of projects across mining and engineering. To keep pace with increased competition and tougher economic conditions in a fast-paced global economy, mines must do more using fewer resources. This is according to SA’s largest Project, Program and Portfolio management solutions provider, UMT Consulting SA.

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Petrochemical giant Sasol Limited has awarded university bursaries to 188 students this year, who completed a comprehensive orientation programme at the company’s Secunda operations last week.

During the orientation programme, students participated in life and study skills workshops, while also being exposed to the Sasol operations and the plant environment. Sasol Secunda is the world’s largest Coal-to-Liquid (CTL) fuel plant and also houses Sasol Mining, which supplies coal to the CTL process.

The bursary scheme is a critical element in Sasol’s talent development strategy. This year’s intake boosts Sasol’s existing 761 undergraduate and postgraduate bursars to 949. The bursary investment of R45 million in 2009 focused primarily on developing talent in science and technology disciplines to, amongst other objectives, help bridge the gaps identified on the Government’s national scarce skills list.

“Sasol is investing now in talent that will develop into South Africa’s next generation of scientists and engineers. These future professionals will support our company’s ambitious growth plans for the future while also enhancing South Africa’s pool of expertise in these sought-after professions,” said Nolitha Fakude, Sasol executive director.

In 2009, Sasol invested over R400 million in programmes focusing on learner interventions from early childhood development through to PhDs, also leveraging the company’s Corporate Social Investments, to provide vital teacher development initiatives.

“With the spot-light again on disappointing Grade 12 and maths and science results, along with ongoing skills shortages, we believe a multi-sectoral approach that includes South African business is vital in helping education in South Africa turn the corner towards success. With these objectives, we at Sasol are committed to our ongoing investment in skills development through practical training and support of learners, educators and educational institutions”, Fakude said.

“The Sasol Inzalo Foundation, with its focus on science, maths and technology, is an important mechanism to ensure that the impact Sasol is seeking to make on skills development is tangible and sustainable,” she concluded.

Success flowing from this multi-sectoral approach is evident in Sasol’s partnership with three other petroleum companies to train artisans for the petroleum industry. This partnership forms part of the oil, gas and electrical manufacturing project and, through this initiative, Sasol trained 1050 artisans in 2009, with an investment of R140 million.

Sasol will continue to invest in the attraction of young talent through its sought-after bursary scheme that is largely focused on science and technology disciplines.

Students wishing to study towards maths and science degrees such as Engineering, Bachelor of Science or Bachelor of Commerce in the 2011 academic year are invited to apply. Candidates can apply online at www.sasolbursaries.com, call 0860 106 235 or SMS ’sasol bursaries’ to 33130. Applications close 5 March 2010.

Gold mines are stepping up innovative training techniques – using a world-first touchscreen training method developed in South Africa – to boost productivity and ensure greater returns on training.
So far the technique which is also used in the cleaning, petrochemical, health and retail industries has seen training budgets slashed by at least half. Mines using Edutouch say they have recorded measurable worker retention of learning rising at least 60% ensuring improvements in safety and productivity, mine training officers say.

These gains in worker efficiency are critical at a time when the sector is experiencing an array of challenges. The method has been used successfully at Kopanang and is being piloted at other mines. Rob Dersley, CEO of Edutouch who pioneered the method after long research with Unisa’s computer science department said, “what makes our method unique is that it is in whatever language the participant chooses, so they can learn in their own language.

It has been tested and proven that our technology speeds up learning four times. “The employee is able to work from either a portable touchscreen or a computer. In a group situation a handheld wireless control similar to that used on TV game shows allows each person to record their answers. It immediately informs the facilitator which section of the module the learner does not understand. The student can relearn that part only instead of sitting through the whole course again. It is inhouse so can be done during idle time and can be done in short three to five minute modules.” Gerrie Swanepoel, a trainer at Kopanang mine near Klerksdorp said: “We’ve found that workers enjoy Edutouch and become competitive with their peers. They also develop a sense of pride. Instead of being crushed, as some learners are when they pluck up the confidence to ask a question in a classroom setting and perhaps get laughed at. This system encourages the learner to learn at his or her own pace and to build confidence. We find that workers become more assertive in group settings and leadership skills readily come to the fore.”

Kopanang mine in the lucrative Vaal gold mining area has 5 500 workers. Five years ago Kopanang began using touchscreen training for workers. Training manager, Andre Oberholzer who introduced Edutouch says, “Initially I wanted something in place to assess all our workers fast.” Edutouch sends each workers grades immediately he or she has completed a module, allowing management to assess shortfalls with individuals and in teams.” It’s critical because everyone who works on a mine has to receive retraining after even brief vacations. Oberholzer said: “In the past AngloGoldAshanti Training and Development Services would do one on one questions but with medical exams and retraining it could take six days before a worker was back on the job. Using Edutouch it takes three days with 80% pass rates and far better knowledge retention than in the past. Before, if a facilitator stood in front of a class and did training, we did not know how much individuals remembered.”

Cornelius Tsotsotso (46), a miner since 1987 says, “I can understand better if I do it myself.” More productive workers and fewer accidents are critical to keep the gold sector as an important contributor to the Gross Domestic Product. Gold contributed 23% to the health of the economy in 2005 with exports of R101 906m according to Mose Mabuza of the Department of Mineral and Energy. In 2007, gold mining contributed 7,7% to GDP. But in the first quarter of this year mining revenue dropped R9bn or 12,8% to earn R21bn in March and gold contributed around R5bn to that, StatsSA noted. Although the gold price is close to record highs the industry has been bedevilled by poor management seeing some mines close – last week it was announced that 3 300 more jobs will be lost when Harmony Gold takes over Pamodzi Gold’s President Steyn mine in Welkom. But too, mine closures for brief periods to implement safety or better working standards by the Department of Minerals and Energy also takes a toll on earnings and the capacity of mines to employ more. It is essential therefore that training is effective.

More employment and retraining before retrenchment is what President Jacob Zuma has appealed for. Mines like Kopanang are keeping employment sound through persistent training and improving skills with EduTouch. As an example, in a group training session led by Alex Phakasi (32) a former rock engineering assistant; three men are discussing whether the answer to their question is: a bobbejaan spanner or a T-spanner? One mimes the actions of each on a bolt. They slowly consider and hit the handheld electronic buttons similar to those used on television game shows. They can’t move on to the next question until a row of green lights shows that each has answered. Phakasi said the discussions help improve knowledge and engender leadership skills and peer competition among the miners.

Edutouch has cut training costs dramatically – Kopanang now has six facilitators instead of 17 a few years ago (trainers earn around R6 500 a month) and the facilitators have learned new skills too for the electronic devices – they write and film new inserts as safety and training standards rise and do their own voice over’s. The two kilometre deep goldmine is seeing consistent gains in safety and production. Kopanang mine training manager, Andre Oberholzer says: “Ninety-six percent of accidents are human error, only four percent are geological. We can control accidents with the right mindset and the sort of training Edutouch gives us. Last year the general manager challenged us to achieve 15 white flag (accident free) days a month. We achieved five of six months with 15 or more white flag days. Last year we improved safety 25%, this year we will improve that record by a further 20%.”

Dersley said: “We are proud that Edutouch is giving a sense of pride to South African workforces and improving skills capacity at a time when the country desperately needs to boost employment and revenues.”

Contact information:
Rob Dersley,
Edutouch
011 602 7940
www.edutouch.co.za

As the South African mineral and mining industry has expanded in recent years, the related mineral and mining chemicals markets have enjoyed steady growth. However, the global economic downturn has had a severe impact on mining activity, and this has in turn decreased the demand for chemicals in this sector.

New analysis from Frost & Sullivan (http://www.chemicals.frost.com), the growth partnership company, finds that the South Africa Mineral and Mining Chemicals Markets earned revenues of $592.7 million in 2008 and estimates this to reach $901.7 million in 2014. Explosives will continue to be the dominant product segment, while processing and water treatment chemicals will grow at a slower rate.

“The demand for explosives is set to continue driving the mineral and mining chemicals market in South Africa,” notes Frost & Sullivan chemicals programme manager Mani James. “Legislation requires mining companies to have safer processes embedded in their operating systems, boosting the uptake of mineral and mining chemicals.”

Bulk explosives and detonators are set to promote growth in the explosives market. Growth in these product segments is due to a shift in the use of less safe packaged explosives. The use of bulk explosives in open cast mining activities such as coal mining activities will support market expansion.

However, as mines look to save costs they will place pressure on manufacturers to lower their prices. The decline in demand for commodities will also have a direct impact on the demand for chemicals, forcing suppliers to compete more aggressively for market share.

“Chemical suppliers to mining companies tend to review contracts more regularly because of fluctuating prices,” explains James. “It is imperative that chemical suppliers adopt flexible and competitive pricing strategies to continue as preferred suppliers to mines.”

Moreover, due to the maturity of the market, the level of competition is high. Competition among suppliers is further heightened by the fact that customers are price sensitive and not particularly brand loyal.

Enhancing awareness among companies about environmental issues is a major factor that will influence the adoption of environmentally safe chemicals. The role of chemical suppliers in the safety processes of their customers is becoming increasingly important. Chemical suppliers can facilitate market share growth by assisting companies in complying with environmental regulations.

www.frost.com