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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
Slide 23: Track
Rail-veyor™ Track Tip loop trestles 23 www.harmony.co.za IBR Underground Mining conference | Phakisa Mine, Rail-veyor™ | June 2013
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
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
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
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
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
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
Slide 30: Tipping
Rail-veyor™ Tipping Tipping loop 30 www.harmony.co.za IBR Underground Mining conference | Phakisa Mine, Rail-veyor™ | June 2013
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
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
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
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
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
Slide 36: Video – underground application
Video – underground application 36 www.harmony.co.za IBR Underground Mining conference | Phakisa Mine, Rail-veyor™ | June 2013
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
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
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
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
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
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
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
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
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
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
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
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
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
Slide 50: Any questions?
Any questions? www.harmony.co.za
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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