Harmony Gold Mining Co. Ltd. · JSE:HAR

Harmony Gold Mining — IBR Underground Mining Conference 2013

51 slides from Harmony Gold Mining's conference presentation, Jun 25, 2013

  1. Slide 1: IBR Underground Mining Conference: Phakisa Mine, Rail-veyor

    IBR UNDERGROUND MINING CONFERENCE PHAKISA MINE, RAIL-VEYOR™ Beyers Nel Operating Officer – SA Operations Alwyn Pretorius Executive Health and Safety 25 June 2013 1 w w w . h a r mw onwyw. c. hoa. zr m a ony.co.za IBR Underground Mining conference | Phakisa Mine, Rail-veyor™ | June 2013 www.harmony.c

  2. Slide 2: Harmony representatives

    Harmony representatives Beyers Nel (36) Operating Officer – SA Operations BSc (Mining Engineering), MBA • Beyers joined Harmony on its merger with ARMgold in 2003 • He began his career in Vaal Reefs as a mining graduate in 2001 has been with Harmony for over a decade, building on his managerial comp

  3. Slide 3: Agenda

    Agenda 1 Company and host mine 2 Initial problem statement 3 Traditional options 4 The future of bulk material handling (BMH) 5 Rail-veyor™ 6 Video – surface pilot plant 7 Video – underground application 8 Cost comparative and risks analysis 9 Why we chose Rail-veyor™ 10 From research & development

  4. Slide 4: Agenda

    Agenda 1 Company and host mine 2 Initial problem statement 3 Traditional options 4 The future of bulk material handling (BMH) 5 Rail-veyor™ 6 Video – surface pilot plant 7 Video – underground application 8 Cost comparative and risks analysis 9 Why we chose Rail-veyor™ 10 From research & development

  5. Slide 5: Harmony Gold Mining Company Limited (Harmony)

    Company Harmony Gold Mining Company Limited (Harmony) • In FY12, Harmony produced 1.27m oz. (including discontinued operations) • One of the world’s largest gold mining companies • Ten underground operations, an open-pit mine and several surface operations which exploit the gold-bearing reefs of the

  6. Slide 6: Phakisa host mine

    Host mine Phakisa Phakisa Mine 6 www.harmony.co.za IBR Underground Mining conference | Phakisa Mine, Rail-veyor™ | June 2013

  7. Slide 7: Historical overview

    Host mine Historical overview • Started as a project • Financial climate improved and • Formerly known as Phakisa was restarted in Sept FSG 4, Freddies 4, • Sinking was completed to the station • Harmony acquired these Tshepong South brow on 75 level operations in their • Now called Phakisa • Same s

  8. Slide 8: Overview

    Host mine Overview • Deep level, narrow tabular gold mine in SA • Employs 3 603 valued employees (FY12) • In FY12, Phakisa produced >80 koz as part of build-up to full production • Full annual production planned at 175koz – 200koz* • Exploits the basal reef South Area Central Area North Area GGLQ: G

  9. Slide 9: Agenda

    Agenda 1 Company and host mine 2 Initial problem statement 3 Traditional options 4 The future of bulk material handling (BMH) 5 Rail-veyor™ 6 Video – surface pilot plant 7 Video – underground application 8 Cost comparative and risks analysis 9 Why we chose Rail-veyor™ 10 From research & development

  10. Slide 10: Initial problem statement

    Initial problem statement • Phakisa was a pre-developed 7.1m Ø shaft up to the station brow of 75 level (7 500ft.) before the shaft deepening and equipping project was initiated by Harmony • The mine design and certain service excavations (including encircle development excl. 75 level) were complete

  11. Slide 11: Initial problem statement: Nyala shaft

    Initial problem statement Nyala shaft • Located 5.5km away from Phakisa • Unoccupied infrastructure able to service ± 250kt per month • Multiple excavations exits between Phakisa and Nyala on 55 level Need: A safe, efficient and cost effective rock transport system Plan view: Phakisa/Nyala holing on

  12. Slide 12: Agenda

    Agenda 1 Company and host mine 2 Initial problem statement 3 Traditional options 4 The future of bulk material handling (BMH) 5 Rail-veyor™ 6 Video – surface pilot plant 7 Video – underground application 8 Cost comparative and risks analysis 9 Why we chose Rail-veyor™ 10 From research & development

  13. Slide 13: Traditional options: Bulk Material Handling (BMH)

    Traditional options Bulk Material Handling (BMH) Trucks Conveyors RBE • Requires large underground excavations • Heavy equipment, mostly operator controlled • High capital replacement cost • Highly regulated in SA • Generally limited to a dip <10° • Inject heat into underground workings • Occupation

  14. Slide 14: Traditional options: Bulk Material Handling (BMH)

    Traditional options Bulk Material Handling (BMH) Trucks Conveyors RBE • Limited dip 15° • Conventional flat open belts cannot negotiate curves/bends without takeovers (6) • Maintenance intensive • Not environmentally friendly (rubber) • High friction loss, medium energy intensive • Highly regulated

  15. Slide 15: Traditional options: Bulk Material Handling (BMH)

    Traditional options Bulk Material Handling (BMH) Trucks Conveyors RBE • Limited dip of 0.4° (1:150 grade) • Safety risks, especially where pedestrians travel • Heavy equipment • Maintenance intensive • Intensive logistics management • Fixed tracks systems • Require long over runs • Mostly operator c

  16. Slide 16: Agenda

    Agenda 1 Company and host mine 2 Initial problem statement 3 Traditional options 4 The future of bulk material handling (BMH) 5 Rail-veyor™ 6 Video – surface pilot plant 7 Video – underground application 8 Cost comparative and risks analysis 9 Why we chose Rail-veyor™ 10 From research & development

  17. Slide 17: Our view of preferred BMH systems

    The future of bulk material handling (BMH) Our view of preferred BMH systems System characteristics? • Machine and human traffic separated • Ease of operation and maintenance • Quick installation • Modular/scalable • Safe • Economical (opex) and specifically labour efficient for SA applications • En

  18. Slide 18: Agenda

    Agenda 1 Company and host mine 2 Initial problem statement 3 Traditional options 4 The future of bulk material handling (BMH) 5 Rail-veyor™ 6 Video – surface pilot plant 7 Video – underground application 8 Cost comparative and risks analysis 9 Why we chose Rail-veyor™ 10 From research & development

  19. Slide 19: Rail-veyor

    Rail-veyor™ Our solution back in 2007: “the world first production Rail-veyor™ system” Other Rail-veyor™ systems: • Early 2000, first demo plant, Florida, USA • 2010, test plant, Sudbury, Canada • 2013, Xtrata Platinum, Eland Mine, SA 19 www.harmony.co.za IBR Underground Mining conference | Phakisa

  20. Slide 20: Rail-veyor characteristics

    Rail-veyor™ Characteristics • Combines the best features of conveyor systems and rail systems • A system of continuous track-bound Rail-veyor™ trains, running head to tail • No on-board operators • Fully controlled through a remote operating system via a computer terminal • Modular/scalable to incre

  21. Slide 21: Rail-veyor: Track

    Rail-veyor™ Track • Compact double-rail track installed on M-frames • Space efficient: the track is connected in a vertical loop to form a close loop. Rail- veyor™ trains are moving in one direction on one track and the other direction on the other track (Bi-directional traffic) • Limited civil work

  22. Slide 22: Track

    Rail-veyor™ Track M-frame Double rail rack 22 www.harmony.co.za IBR Underground Mining conference | Phakisa Mine, Rail-veyor™ | June 2013

  23. Slide 23: Track

    Rail-veyor™ Track Tip loop trestles 23 www.harmony.co.za IBR Underground Mining conference | Phakisa Mine, Rail-veyor™ | June 2013

  24. Slide 24: Drive station

    Rail-veyor™ Drive station • No locomotive • Rail-veyor™ trains pass through a series of drive stations (13) • Drive stations are ±380m apart • Electric motors (22kW below and 37kW above) with planetary gearboxes • Drive motors power foam filled tyres which, in contact with the carts’ side rail (or d

  25. Slide 25: Drive station

    Rail-veyor™ Drive station Drive station U/G drive station Isometric drawing 25 www.harmony.co.za IBR Underground Mining conference | Phakisa Mine, Rail-veyor™ | June 2013

  26. Slide 26: Carts

    Rail-veyor™ Carts • Each Rail-veyor™ train consist of small open ended hoppers called carts • Carts are connected to form a long trough which enables continuous loading and tipping • Cart attachments were altered from male-female couplings to ball end attachments • Carts are attached with connection

  27. Slide 27: Carts

    Rail-veyor™ Carts Cart side view Cart end view Pilot plant carts 27 www.harmony.co.za IBR Underground Mining conference | Phakisa Mine, Rail-veyor™ | June 2013

  28. Slide 28: Loading

    Rail-veyor™ Loading • Takes place as a continuous operation as carts are open ended • At the start of a loading pass, Rail-veyor™ trips a sensor which activates loading • Batch loading is at a consistent speed as Rail-veyor™ trains run head to tail • Once loading is completed, another sensor deactiv

  29. Slide 29: Tipping

    Rail-veyor™ Tipping • No overruns required (reduced access development cost) • 6m head space required • Rail-veyor™ passes through a double drive station to provide extra power to drive Rail-veyor™ up the incline • Rail-veyor™ does a loop and each cart becomes inverted as it’s load is tipped • Durin

  30. Slide 30: Tipping

    Rail-veyor™ Tipping Tipping loop 30 www.harmony.co.za IBR Underground Mining conference | Phakisa Mine, Rail-veyor™ | June 2013

  31. Slide 31: Tipping

    Rail-veyor™ Tipping Tip onto loading belt Pilot plant tipping 31 www.harmony.co.za IBR Underground Mining conference | Phakisa Mine, Rail-veyor™ | June 2013

  32. Slide 32: Phakisa specifications

    Rail-veyor™ Phakisa specifications Each Phakisa Rail-veyor™ train • 387 m long • 296 carts • Weight of empty Rail-veyor™ train 75 tons • Payload 75 tons • 150 tons total weight The Phakisa Rail-veyor™ consists of • 3 Rail-veyor™ trains • 13 drive stations along the 5.5km track • 4 booster stations t

  33. Slide 33: Agenda

    Agenda 1 Company and host mine 2 Initial problem statement 3 Traditional options 4 The future of bulk material handling (BMH) 5 Rail-veyor™ 6 Video – surface pilot plant 7 Video – underground application 8 Cost comparative and risks analysis 9 Why we chose Rail-veyor™ 10 From research & development

  34. Slide 34: Video – surface pilot plant

    Video – surface pilot plant 34 www.harmony.co.za IBR Underground Mining conference | Phakisa Mine, Rail-veyor™ | June 2013

  35. Slide 35: Agenda

    Agenda 1 Company and host mine 2 Initial problem statement 3 Traditional options 4 The future of bulk material handling (BMH) 5 Rail-veyor™ 6 Video – surface pilot plant 7 Video – underground application 8 Cost comparative and risks analysis 9 Why we chose Rail-veyor™ 10 From research & development

  36. Slide 36: Video – underground application

    Video – underground application 36 www.harmony.co.za IBR Underground Mining conference | Phakisa Mine, Rail-veyor™ | June 2013

  37. Slide 37: Agenda

    Agenda 1 Company and host mine 2 Initial problem statement 3 Traditional options 4 The future of bulk material handling (BMH) 5 Rail-veyor™ 6 Video – surface pilot plant 7 Video – underground application 8 Cost comparative and risks analysis 9 Why we chose Rail-veyor™ 10 From research & development

  38. Slide 38: Cost comparative

    Cost comparative Traditional Conveyor Rail-veyor™ Cost comparative analysis rail system system Initial capital index 100% 98% 68% Installation period index 100% 72% 48% Operating cost index (cost/ton) 100% 63% 44.2% Availability 70% 85% 98% Flexibility index (increase capacity) 100% 120% 150% Effici

  39. Slide 39: Cost comparative

    Cost comparative Traditional Conveyor Rail-veyor™ 3 scenarios in 2007 terms rail system system Initial capital R31.2m R30.6m R21.1m Installation period (months) 25 18 12 Opex (R/ton) R5.68 R3.58 R2.51 Source: M de Leeuw, Design Engineer 39 www.harmony.co.za IBR Underground Mining conference | Phakis

  40. Slide 40: Risk analysis

    Risk analysis Traditional Conveyor Rail-veyor™ Risk category rail system system Derailment/misalignment High Medium Medium Collisions Low Low Low Electrocutions Medium Low Low Fire Low High Low Failure of support system Low Low Low Technology failure Low Low Medium Interaction with other people High

  41. Slide 41: Agenda

    Agenda 1 Company and host mine 2 Initial problem statement 3 Traditional options 4 The future of bulk material handling (BMH) 5 Rail-veyor™ 6 Video – surface pilot plant 7 Video – underground application 8 Cost comparative and risks analysis 9 Why we chose Rail-veyor™ 10 From research & development

  42. Slide 42: Why we chose Rail-veyor

    Why we chose Rail-veyor™ • Layout • Sliping for conveyor installation would have added 8 months to the project schedule • Lowest cost per km ton • Low initial investment • Energy efficient • Environmentally friendly • Simplicity • Lower maintenance • Less downtime • Flexible • Ton/hour can be increa

  43. Slide 43: Agenda

    Agenda 1 Company and host mine 2 Initial problem statement 3 Traditional options 4 The future of bulk material handling (BMH) 5 Rail-veyor™ 6 Video – surface pilot plant 7 Video – underground application 8 Cost comparative and risks analysis 9 Why we chose Rail-veyor™ 10 From research & development

  44. Slide 44: From R&D to operation: lessons learnt

    From Research and Development (R & D) to operation: lessons learnt Derailment 44 www.harmony.co.za IBR Underground Mining conference | Phakisa Mine, Rail-veyor™ | June 2013

  45. Slide 45: From R&D to operation: lessons learnt

    From R&D to operation: lessons learnt Design changes impacting reliability Coupling upgrade • Male/female • Ball-end attachments • Tapered polyurethane bushes • Allows for articulation • Only lasted a few days • Improved durability • Less derialments Chassis upgrade • Angle iron frames • Tubular ste

  46. Slide 46: From R&D to operation: lessons learnt

    From R&D to operation: lessons learnt Design changes impacting reliability Loading loop upgrade Single rails at loading • Double rails at loading • No derailments Limit switch • If one cart derails, trips the Rail-veyor™ train • Prevent major derailments 46 www.harmony.co.za IBR Underground Mining c

  47. Slide 47: From R&D to operation: lessons learnt

    From R&D to operation: lessons learnt Design changes impacting reliability Rail switch upgrade • Reef waste switching arrangement • Wheels vs. traverse arrangement • The 8 contact points need to align perfectly • Avoid derailments when switching 47 www.harmony.co.za IBR Underground Mining conference

  48. Slide 48: Agenda

    Agenda 1 Company and host mine 2 Initial problem statement 3 Traditional options 4 The future of bulk material handling (BMH) 5 Rail-veyor™ 6 Video – surface pilot plant 7 Video – underground application 8 Cost comparative and risks analysis 9 Why we chose Rail-veyor™ 10 From research & development

  49. Slide 49: Acknowledgement

    Acknowledgement • Mr Graham Briggs, Mr Tom Smith and Mr Alwyn Pretorius, Harmony Senior Management • The late Mr Marius De Leeuw, Phakisa Design Engineer • Mr Robert Hart, Mr Fanie Bekker and Mr Fritz van Zyl , Harmony Engineers • Deebar Rail-veyor™ 49 www.harmony.co.za IBR Underground Mining confer

  50. Slide 50: Any questions?

    Any questions? www.harmony.co.za

  51. Slide 51: Contact details

    Beyers Nel Operating Officer – SA Operations Tel: +27 (0)57 904 4013 Mobile: +27 (0)82 444 0681 Email: beyers.nel@harmony.co.za Alwyn Pretorius Executive: Health and Safety Tel: +27 (0)11 411 2148 Mobile: +27 (0)82 806 0872 Email: alwyn.pretorius@harmony.co.za An exciting investment proposition 51 w

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