Eskom is a South African electricity public utility, established in 1923 as the Electricity Supply Commission by the government of South Africa in terms of the Electricity Act . It was also known by its Afrikaans name Elektrisiteitsvoorsieningskommissie . The two acronyms were combined in 1986 and the company is now known as Eskom. Eskom represents South Africa in the Southern African Power Pool.The utility is the largest producer of electricity in Africa, is among the top seven utilities in the world in terms of generation capacity and among the top nine in terms of sales.Eskom tries to operate a number of notable but non functional power stations, including Kendal Power Station, and Koeberg nuclear power station in the Cape Province which is running at 50%, the only nuclear power plant in Africa. The company is divided into Generation, Transmission and Distribution divisions and together Eskom generates approximately 95% of electricity used in South Africa.Due to the South African governments attempted privatisation of Eskom in the late 1990s, Eskom's requests for budget to build new stations were denied. President Thabo Mbeki said in December 2007 that this was an error, and it is now adversely affecting the South African economy.In January 2008 Eskom introduced "load shedding", planned rolling blackouts based on a rotating schedule, in periods where short supply threatens the integrity of the grid. Demand-side management has focused on encouraging consumers to conserve power during peak periods in order to reduce the incidence of load shedding. Wikipedia.
News Article | May 15, 2017
The Democratic Alliance (DA) said on Monday it would be filing for an urgent interdict at the North Gauteng High Court in a bid to stop Brian Molefe’s reappointment as Eskom chief executive. DA spokesperson for public enterprises, Natasha Mazzone, said that Molefe was not a “fit and proper” person to be chief executive of Eskom because of the close links he allegedly has with the wealthy and politically connected Gupta family, as illustrated by the Public Protector’s “State of Capture” report. “We have had our last briefing with DA attorneys who are this morning lodging papers at the Gauteng North High Court in Pretoria to have this appointment stopped with immediate effect,” Mazzone said. “We feel that South Africa deserves better than someone shrouded in controversy being at the helm of such an important state-owned entity.” Mazzone said that Molefe’s “overnight resignation” as MP and his reappointment as Eskom chief executive was “unacceptable”. Mazzone was speaking outside Eskom’s headquarters, Megawatt Park, where a handful of DA and Congress of the People (Cope) supporters had gathered to protest against Molefe entering the premises. Molefe’s imminent return to Eskom sparked widespread outrage among political parties and civic organisations, which over the weekend said the move reversed government’s commitment to fight corruption. Mazzone said it was not true that Molefe had retired from Eskom as he himself said in his state he was stepping down in the interest of good governance, and was not entitled to a R30-million pension payout. “Eskom put out adverts for the position of CEO. They did interview people, and people were shortlisted. So the whole process has just been for null and void, and this is not good governance. It’s absolute madness that one person can hold the whole country to ransom and Minister Lynne Brown should have a little more guts than to fall prey to this kind of lunacy,” Mazzone. “If he stepped down in the interest of good governance, we are telling him he may not come back in the interest of good governance. He himself admitted that him being here was not good governance, and we think he should stick by his initial statement.” Reuben Dube, a DA activist from Alexandra, said that they do not want Molefe coming close to Eskom. “Brian must leave. I don’t want to want to go and talk too much what I heard of him or what I know of him. He is useless. We don’t want him in our spectrum of life. He must leave Megawatt Park,” Dube said. A female local resident who declined to be named also staged her own solo protest against Molefe, carrying a paper written: “You’re not welcome Mr Molefe. You have stolen enough. Go home!” “I came in on my own after hearing on radio that there was no one here. I’m not a member of any political party. But I’m tired of the pillaging of our tax money. South Africa is for all, not only a select few,” said the resident.
News Article | May 11, 2017
The start of early-works construction for the main production shaft at the Platreef platinum-group metals mine in South Africa highlights Ivanhoe's achievements in a busy first quarter TORONTO, ONTARIO--(Marketwired - May 11, 2017) - Ivanhoe Mines (TSX:IVN)(OTCQX:IVPAF) today announced its financial results for the first quarter ended March 31, 2017. All figures are in U.S. dollars unless otherwise stated. Ivanhoe Mines is a Canadian mining company focused on advancing its three mine-development projects in Sub-Saharan Africa: the Platreef platinum-palladium-gold-nickel-copper discovery in South Africa; and the Kamoa-Kakula copper discovery and the Kipushi zinc-copper-lead-germanium mine in the Democratic Republic of Congo (DRC). The Platreef Project is owned by Ivanplats (Pty) Ltd., which is 64%-owned by Ivanhoe Mines. A 26% interest is held by Ivanplats' historically-disadvantaged broad-based, black economic empowerment (B-BBEE) partners, which include 20 local host communities with a total of approximately 150,000 people, project employees and local entrepreneurs. In January 2017, Ivanplats reconfirmed its Level 3 status in its third verification assessment on a B-BBEE scorecard. A Japanese consortium of ITOCHU Corporation and its affiliate, ITC Platinum, plus Japan Oil, Gas and Metals National Corporation and JGC Corporation, owns a 10% interest in Ivanplats, which it acquired in two tranches for a total investment of $290 million. The Platreef Project hosts an underground deposit of thick, platinum-group metals, nickel, copper and gold mineralization in the Northern Limb of the Bushveld Igneous Complex, approximately 280 kilometres northeast of Johannesburg and eight kilometres from the town of Mokopane in Limpopo Province. On the Northern Limb, platinum-group metals mineralization is hosted primarily within the Platreef, a mineralized sequence that is traced more than 30 kilometres along strike. Ivanhoe's Platreef Project, within the Platreef's southern sector, is comprised of three contiguous properties: Turfspruit, Macalacaskop and Rietfontein. Turfspruit, the northernmost property, is contiguous with, and along strike from, Anglo Platinum's Mogalakwena group of mining operations and properties. Since 2007, Ivanhoe has focused its exploration and development activities on defining and advancing the down-dip extension of its original discovery at Platreef, now known as the Flatreef Deposit, which is amenable to highly mechanized, underground mining methods. The Flatreef area lies entirely on the Turfspruit and Macalacaskop properties, which form part of the company's mining right. The Platreef Project reached a total of 7,121,029 million hours and 16,055 lost-time injury-free hours worked in terms of the Mines Health and Safety Act and the Occupational Health and Safety Act of South Africa by the end of March 2017. Two medical treatment cases and two lost-time-accidents occurred during the first quarter of 2017. The Platreef Project continues to strive toward its workplace objective of an environment that causes zero harm to any employees, contractors, sub-contractors and consultants. Shaft 1, with an internal diameter of 7.25 metres, will provide access to the Flatreef Deposit and enable the initial underground capital development to take place during the development of Shaft 2 and ultimately will become the primary ventilation intake shaft during the project's four Mtpa production case. Following the successful commissioning of the stage and kibble winders and ancillary equipment, the permanent sinking phase started in July 2016. The initial sinking phase was completed to 107 metres below surface and the main sinking phase has been initiated. Shaft 1 had reached a depth of 346 metres below surface as of May 8, 2017. An average sinking rate of 45 metres per month is expected during the main sinking phase. The shaft includes a 300-millimetre concrete lined shaft wall. The main sinking phase is expected to reach its projected, final depth of 980 metres below surface in 2018. Shaft stations to provide access to horizontal mine workings for personnel, materials, pump stations and services will be developed at depths of 450, 750, 850 and 950 metres below surface. Figure 2: Members of the Platreef sinking team underground in Shaft 1, which was at a depth of 346 metres below surface on May 8, 2017: http://media3.marketwire.com/docs/1094410-F2.pdf Shaft 2 will be located approximately 100 metres northeast of Shaft 1. Shaft 2, with an internal diameter of 10 metres, will be lined with concrete and sunk to a planned, final depth of more than 1,100 metres below surface. It will be equipped with two 40-tonne rock-hoisting skips with a capacity to hoist a total of six million tonnes of ore a year - which will be the single largest hoisting capacity at any mine in Africa. The headgear for the permanent hoisting facility was designed by South Africa-based Murray & Roberts Cementation. The early works for Shaft 2 will include the excavation of a surface box cut to a depth of approximately 29 metres below surface and the construction of the concrete hitch (foundation) for the 103-metre-tall concrete headgear (headframe) that will house the shaft's permanent hoisting facilities and support the shaft collar. The early works are planned to commence in Q2 2017 and will take approximately 12 months to complete. Figure 3: Illustration shows two perspectives of Shaft 2's 103-metre-tall concrete headgear, the hitch (foundation) and internal permanent hoisting facilities: http://media3.marketwire.com/docs/1094410-F3.pdf Ivanhoe plans to develop the Platreef Mine in phases. The initial annual rate of four million tonnes per annum (Mtpa) is designed to establish an operating platform to support future expansions. This is expected to be followed by a potential doubling of production to eight Mtpa; and then a third expansion phase to a steady-state 12 Mtpa, which would establish Platreef among the largest platinum-group-metals mines in the world. Ivanhoe has made good progress on advancing the feasibility study of the first phase of development of the Platreef Mine. The study, which began in August 2015, is being prepared by principal consultant DRA Global, with specialized sub-consultants including Stantec Consulting, Murray & Roberts Cementation, SRK Consulting, Golder Associates and Digby Wells Environmental. The study is planned for completion in Q2 2017. Metallurgical testwork has focused on maximizing the recovery of platinum-group metals and base metals, also while producing an acceptably high-grade concentrate grade for sale to third parties. The three main geo-metallurgical units and composites have produced concentrate grades of approximately 85 to 110 grams per tonne platinum, palladium, rhodium and gold (3PE+gold) at good platinum-group-elements (PGE) recoveries (86% to 88% 3PE+gold). Comminution and flotation testwork has demonstrated that the optimum grind size of 80% passing 75 micrometres, in one stage of milling is sufficient to achieve the PGE recoveries referred to above. This simplifies the circuit and should enable Ivanhoe to optimize the capital and operating cost of the concentrator. The flow sheet for phase one comprises a four Mtpa, three-stage crushing circuit, which will feed into two parallel milling-flotation modules, each with a capacity of two million tonnes per year. Flotation is followed by a four Mtpa tailings-handling and concentrate-thickening, filtration and storage circuit. The selected mining areas in the current mine plan occur at depths ranging from approximately 700 metres to 1,200 metres below surface. The main access to the Flatreef Deposit and ventilation system is expected to be through four vertical shafts: 1, 2, 3 and 4. Shaft 2 will host the main personnel transport cage, and the material and ore-handling system; shafts 1, 3 and 4 will provide ventilation to the underground workings. Shaft 1, now under development, also will be used for initial access to the deposit and early underground development. The planned mining will incorporate low-cost, mechanized mining methods, including long-hole stoping and drift-and-fill mining. Mined-out areas will be backfilled with a mixture of tailings from the processing plant and cement. The ore will be hauled from the stopes to a series of ore passes that will connect to a main haulage level at Shaft 2, from where it will be hoisted to the surface for processing. The Olifants River Water Resource Development Project (ORWRDP) is designed to deliver water to the Eastern and Northern limbs of South Africa's Bushveld Complex. The project consists of the new De Hoop Dam, the raised wall of the Flag Boshielo Dam and related pipeline infrastructure that ultimately is expected to deliver water to Pruissen, southeast of the Northern Limb. The Pruissen Pipeline Project is expected to be developed to deliver water onward from Pruissen to the municipalities, communities and mining projects on the Northern Limb. Ivanhoe is a member of the ORWRDP's Joint Water Forum. The Platreef Project's water requirement for the first phase of development is projected to peak at approximately 10 million litres per day, which is expected to be supplied by the water network. Ivanhoe also is investigating various alternative sources of bulk water, including an allocation of bulk grey-water from a local source. The Platreef Project's electricity requirement for a four Mtpa underground mine, concentrator and associated infrastructure has been estimated at approximately 100 million volt-amperes. An agreement has been reached with Eskom, the South African public electricity utility, for the supply of phase-one power. Ivanhoe chose a self-build option for permanent power that will enable the company to manage the construction of the distribution lines from Eskom's Burutho sub-station to the Platreef Mine. The self-build and electrical supply agreements are being formulated. First phase of the relocation of informal graves completed; second phase underway On February 2, 2017, a South African judge issued a ruling in favour of Ivanplats clearing the way for the company to proceed with the relocation of informal graves in the vicinity of its Platreef Mine development project. A total of 75 informal graves were successfully relocated from land outside the perimeter of the active mine development site to new burial plots in a formal cemetery. An additional 19 locations were investigated and found not to contain human remains. The Ivanplats support program included assistance in providing new burial plots in a formal cemetery, tombstones and related services. Ivanplats plans to relocate an estimated 27 additional informal graves as part of the second phase of its relocation program after the permits for the exhumations and reburials have been received. Further phases on peripheral infrastructure areas also are planned. The relocation of remaining informal graves will not impact the development of the Platreef Project. The Kipushi copper-zinc-germanium-lead mine in the DRC is adjacent to the town of Kipushi and approximately 30 kilometres southwest of Lubumbashi. It is located on the Central African Copperbelt, approximately 250 kilometres southeast of the Kamoa-Kakula Project and less than one kilometre from the Zambian border. Ivanhoe acquired its 68% interest in the Kipushi Project in November 2011; the balance of 32% is held by the state-owned mining company, La Générale des Carrières et des Mines (Gécamines). The Kipushi Project achieved a total of 5,321,941 work hours free of lost-time injuries, equivalent to 1,694 days, to the end of Q1 2017. Malaria remains the most frequently occurring health concern at Kipushi which increased after the rainy season to an average of 26 cases per month over the quarter. In an effort to reduce the incidence of malaria in the Kipushi community, a Water Sanitation and Health (WASH) program has been initiated in cooperation with the Territorial Administrator and the local community. The main emphasis of the program's first phase is cleaning storm drains in the municipality to prevent accumulations of ponded water, where malarial mosquitos breed. The Fionet program to improve malaria diagnostics and treatment expanded to 300 Deki readers installed in 252 medical service providers in Haut-Katanga and Lualaba provinces in Southern DRC, which host Ivanhoe's Kipushi and Kamoa-Kakula projects. Deki readers provide automated readings of rapid diagnostic tests to remove the human-error factor and avoid prescription of unnecessary medication. The data is uploaded to a cloud server for analysis by the Ministry of Health in planning malaria-control measures. There were more than 40,000 patient encounters where Deki readers provided diagnostic testing during the past year, with only approximately 48% of Kipushi Project employees who were symptomatic testing positive for malaria. The Kipushi Mine, which had been placed on care and maintenance in 1993, flooded in early 2011 due to a lack of pump maintenance over an extended period. At its peak, water reached 851 metres below the surface. Ivanhoe restored access to the mine's principal haulage level at 1,150 metres below surface in December 2013; since then, crews have been upgrading underground infrastructure to permanently stabilize the water levels. Since completion of the drilling program, water levels have been lowered to the bottom of Shaft 5, which is planned to be the mine's main production shaft. The shaft is eight metres in diameter, 1,240 metres deep and approximately 1.5 kilometres from the planned main mining area. It provides the primary access to the lower levels of the mine, including the Big Zinc Deposit, through the 1,150-metre haulage level and underground ramp decline. Engineering work has focused on the upgrading of Shaft 5 conveyances and infrastructure, installation of the rock conveyor system, the stripping and evaluation of the underground jaw crusher, refurbishment of bearer sets on the main rising-water pipes, and the replacement of shaft buntons (struts that reinforce the shaft walls). A new twinned high-volume ventilation fan also has been installed and is being commissioned on surface at Shaft 4 to provide fresh air to the underground workings. Figure 5: New rollers being installed on the 1,150-metre-level ore conveyor belt as part of the infrastructure upgrading program: http://media3.marketwire.com/docs/1094410-F5.pdf In September 2016, Ivanhoe began a pre-feasibility study (PFS) on the Kipushi Project that will further refine the optimal development scenario for the existing underground mine at Kipushi. Orewin, of Australia, has been appointed the main engineering firm for the preparation of the PFS. Golder Associates, MDM, SRK, DRA, Murray & Roberts and Grindrod also have been engaged to complete various aspects of the study. The PFS will refine the positive preliminary economic assessment (PEA) for the redevelopment of the Kipushi Project that was announced on May 2, 2016. The PEA was prepared in compliance with Canadian National Instrument 43-101 - Standards of Disclosure for Mineral Projects. Highlights of the 2016 PEA, prepared by OreWin and the MSA Group (Pty) Ltd, of Johannesburg, South Africa, include: Figure 6: Upgraded supports for Shaft 5 pump columns at the 1,200-metre-level pump station: http://media3.marketwire.com/docs/1094410-F6.pdf Preparations are underway to start a 6,500-metre drilling program at Kipushi. The planned program, which is expected to begin later this month, will include six metallurgical holes and additional resource drilling in the Fault Zone and the Nord Riche and Southern Zinc zones to upgrade inferred resources to indicated resources. The Kamoa-Kakula Copper Project, a joint venture between Ivanhoe Mines and Zijin Mining, has been independently ranked as the largest copper discovery ever made on the African continent, with adjacent prospective exploration areas within the Central African Copperbelt in the DRC, approximately 25 kilometres west of the town of Kolwezi and about 270 kilometres west of Lubumbashi. Ivanhoe sold a 49.5% share interest in Kamoa Holding Limited to Zijin Mining in December 2015 for an aggregate consideration of $412 million. In addition, Ivanhoe sold a 1% share interest in Kamoa Holding to privately-owned Crystal River Global Limited for $8.32 million - which Crystal River will pay through a non-interest-bearing, 10-year promissory note. Since the conclusion of the Zijin transaction in December 2015, each shareholder of Kamoa Holding has been required to fund expenditures at the Kamoa-Kakula Project in an amount equivalent to its proportionate shareholding interest in the company. A 5%, non-dilutable interest in the Kamoa-Kakula Project was transferred to the DRC government on September 11, 2012, for no consideration, pursuant to the DRC Mining Code. Following the signing of an agreement with the DRC government in November 2016, in which an additional 15% interest in the Kamoa-Kakula Project was transferred to the DRC government, Ivanhoe and Zijin Mining now each hold an indirect 39.6% interest in the Kamoa-Kakula Project, Crystal River Global Limited holds an indirect 0.8% interest and the DRC government holds a direct 20% interest. Kamoa Holding Limited continues to hold an 80% interest in the project. On March 21, 2017, Ivanhoe announced that a new step-out hole, DD1124 - drilled 5.4 kilometres west of the present boundary of Kakula's current Inferred Resources - intersected a relatively shallow, 16.3-metre zone of typical Kakula-style, chalcocite-rich copper mineralization similar to holes drilled in the centre of the high-grade Kakula Deposit on the Kamoa-Kakula Copper Project. The new discovery, now referred to as Kakula West extended the length of the Kakula mineralized trend to approximately 10.1 kilometres, essentially doubling the previously estimated strike length of 5.5 kilometres contained in Ivanhoe's January 23, 2017 news release. On April 10, 2017, Ivanhoe announced the assay results for DD1124 that confirmed significant high-grade mineralization. DD1124 intersected 8.86 metres (true width) of 5.83% copper at a 3.0% copper cut-off, beginning at a downhole depth of 428.70 metres; 8.86 metres (true width) of 5.83% copper at a 2.5% copper cut-off; 16.05 metres (true width) of 4.14% copper at a 2.0% copper cut-off; and 16.05 metres (true width) of 4.14% copper at a 1.0% copper cut-off. DD1124's best six-metre intercept was 6.17 metres (true width) at 6.84% copper. In addition to DD1124, additional follow up drilling confirmed the significance of the initial discovery with two western step-out holes: Full details of the DD1138 and DD1144 intersections can be found in the April 10, 2017 news release. Excellent visual drill intercepts continue to be returned at Kakula West. The results show a rapidly growing area of shallow copper mineralization characterized by finely disseminated chalcocite in siltstone and maroon diamictite. The style and the overall geometry of mineralization are typical of the high-grade Kakula trend to the east. The Kakula Discovery remains open along a westerly-southeasterly strike. Importantly, the chalcocite-rich zone of mineralization in DD1124 was intersected at a depth of approximately 400 metres below surface, significantly shallower than several of the mineralized intercepts announced in January 2017 that were drilled closer to the western boundary of the Kakula Inferred Resource. The Kamoa-Kakula Project has started a PEA for larger production cases at both Kamoa and Kakula. The Kakula study will be based on an updated Mineral Resource Estimate expected in May 2017. It is anticipated that the increased resource base will support a Kakula mine capacity of approximately six Mtpa. The Kansoko mine capacity also is expected to be increased to six Mtpa through a change in mining method. The revised PEA targets peak mine production of approximately 12 Mtpa from the current resource base at the presently delineated Kamoa and Kakula deposits. In light of the successful step-out drilling at Kakula West, the Kamoa-Kakula development plans will be reassessed and amended on a continuous basis as the project moves forward. The updated PEA is expected to be completed in Q3 2017. Health and safety remain key priorities for all people working at the Kamoa-Kakula Project. As of March 31, 2017, the Kamoa-Kakula Project had achieved 6,394,834 lost-time injury-free man hours. During Q1 2017, 58 cases of malaria were diagnosed at the Kamoa clinic, compared to 85 for the same period in 2016. This progress is, in part, due to the project's malaria control plan. A major update to the Kamoa Environmental, Social & Health Impact Assessment (ESHIA) was submitted to DEPM (DRC environmental authority) on January 30, 2017, before the required five-year anniversary of the approved 2012 ESHIA. The scope of the updated ESHIA included the Kansoko Mine and concentrator, Kakula Mine and concentrator, Kakula tailings storage facility and main Kolwezi access road. Approval for the updated ESHIA was received from the DEPM on March 3, 2017. Ongoing exploration activities to focus on other high-priority targets As of the end of Q1 2017, more than 25,000 metres had been drilled at Kakula since the start of the year. There are 14 rigs on site, 12 of which are currently drilling; 10 from the contractor and two project-owned rigs. Included in the drilling total were holes drilled for geotechnical and metallurgical studies. Exploration activities significantly increased in Q1 2017. The accelerated exploration program was driven by resource expansion drilling to support an updated Mineral Resource Estimate planned for early Q2 2017 to be used for future development studies on the project. Nine of the 14 rigs on site were dedicated to resource expansion at Kakula. Coinciding with this expansion drilling, exploration activities were increased on untested parts of the Kamoa-Kakula licence. The Kakula West discovery was a result of the expanded grass roots program with three rigs currently dedicated to this area. With the onset of the dry season, the intention is to reallocate a number of rigs from Kakula resource expansion and development activities to test other areas on the Kamoa-Kakula licence where significant Kakula-style targets have been identified but have been inaccessible during the wet season. Figure 9: Kamoa-Kakula mining licence, showing copper grade of Indicated and Inferred Resources at a 2% copper cut-off, untested areas, current target areas and location of Kakula West Discovery: http://media3.marketwire.com/docs/1094410-F9.pdf Improved copper recoveries and concentrate grades confirmed by preliminary metallurgical tests on drill core from Kakula Following on from the positive preliminary testwork results received during Q4 2016 of 87.8% recovery at an extremely high concentrate grade of 56% copper, the next phase of flowsheet development has been initiated. A metallurgical drilling campaign to compile a representative composite sample is underway and is planned to be completed during Q3 2017. This sample will be used for the PFS circuit development and optimization testwork which is planned for the second half of 2017. Earlier metallurgical testwork indicated that the Kamoa and Kakula concentrates contain extremely low arsenic levels by world standards - approximately 0.02%. Given this critical competitive marketing advantage, Kamoa-Kakula concentrates are expected to attract a significant premium from copper-concentrate traders for use in blending with concentrates from other mines. The concentrates will help to enable the other concentrates to meet the limit of 0.5% arsenic imposed by Chinese smelters to meet China's environmental restrictions. Mine development at the Kansoko Mine expected to reach high-grade copper in Q2 Byrnecut Underground Congo SARL progressed well with the decline development at Kansoko Sud during Q1 2017. A total of more than 1,600 metres of development had been achieved at the end of Q1 2017. The service and conveyor declines each have been advanced more than 770 metres and are in Kamoa pyritic siltstone, which overlies the copper ore. Development of the underground mine is scheduled to reach the high-grade copper mineralization at the Kansoko Sud Deposit during Q2 2017. The Kamoa-Kakula technical team has identified a location for a box cut for the initial portal to planned decline ramps that will provide underground access to the Kakula Deposit. The design of the box cut has been completed and the excavation, support and civil works have been tendered. A preferred bidder has been identified and the project team is in a position to award the contract. Construction of the Kakula box cut is expected to take approximately five months, after which development of the set of twin declines can commence. A tender document for the Kakula decline development has been completed and will be issued to prospective contractors during Q2 2017. The construction of the 120 kilovolt (kV) power line that branches off from the main supply at Kisenge has been completed. A 120kV mobile substation was installed, commissioned and energized on October 30, 2016. The Kamoa mine site now is connected to the national electrical grid and is receiving hydropower for work on site. An eight-kilometre, 11kV overhead power line with mini substations has been constructed from the mine site to the Kamoa camp and is supplying hydropower to the camp. The supply of electricity from the grid has resulted in significant savings from reduced use of diesel fuel. The design of a 120kV line connecting the Kansoko mine site with Kakula has been designed and tenders from potential contractors have been received. The Mwadingusha Unit 1 repair work was completed in August 2016 and the official inauguration ceremony was held at the Mwadingusha power station on September 7, 2016. The Mwadingusha G1 unit, supplying 11 megawatts, was synchronized to the SNEL, the DRC's state-owned power company, national interconnected grid on September 6, 2016. The contract to purchase four turbines for the Mwadingusha power plant upgrades was awarded and the contract signed between SNEL and the consortium Andritz Hydro & Cegelec Corporation. A site visit by the consortium took place in December in preparation for demolition work to start in August 2017. The Sustainable Livelihoods project is largely aimed at economically empowering communities in the vicinity of the planned mine. The project, which has been in place for the past five years, continues to successfully manage the following programs during Q1 2017: The following table summarizes selected financial information for the prior eight quarters. Ivanhoe had no operating revenue in any financial reporting period and did not declare or pay any dividend or distribution in any financial reporting period. Review of the three months ended March 31, 2017 vs. March 31, 2016 The company's total comprehensive loss for Q1 2017 of $5.0 million was $2.1 million lower than for the same period in 2016 ($7.1 million). The decrease mainly was due to a $5.3 million increase in exchange gains on translation of foreign operations that was partly offset by a $2.0 million decrease in finance income. The decrease in finance income was due to the decrease in the deemed finance income on the purchase price receivable from the partial sale of the Kamoa Project from $4.3 million in Q1 2016 to $1.1 million for the same period in 2017, which coincides with the decrease in the purchase price receivable. Exploration and project expenditures for the three months ending March 31, 2017, amounted to $8.3 million and were $1.4 million more than for the same period in 2016 ($6.9 million). With the focus at the Platreef Project on development and the Kamoa Project being accounted for as a joint venture, $8.2 million of the total $8.3 million exploration and project expenditure related to the Kipushi Project. Expenditure at the Kipushi Project increased by $1.5 million compared to the same period in 2016. The company's share of losses from the Kamoa Holding joint venture increased from $4.2 million in Q1 2016 to $5.5 million in Q1 2017. The following table summarizes the company's share of the comprehensive loss of Kamoa Holding for the three months ending March 31, 2017 and for the same period in 2016: The costs associated with mine development are capitalized as development costs in Kamoa Holding, while the exploration expenditure at Kakula is expensed. The interest expense in the Kamoa Holding joint venture relates to shareholder loans where each shareholder is required to fund Kamoa Holding in an amount equivalent to its proportionate shareholding interest. Financial position as at March 31, 2017 vs. December 31, 2016 The company's total assets decreased by $3.1 million, from 1,002.2 million as at December 31, 2016, to $999.1 million as at March 31, 2017. This resulted from the company utilizing its cash resources in its operations. The company's total liabilities decreased by $2.7 million to $43.3 million as at December 31, 2017, from $46.0 million as at December 31, 2016. The remaining purchase price receivable due to the company as a result of the sale of 49.5% of Kamoa Holding decreased as the company received $41.2 million from Zijin on February 8, 2017. The present value of the remaining consideration receivable, net of transaction costs, was $38.4 million as at March 31, 2017 and is due on May 23, 2017. The company's investment in the Kamoa Holding joint venture increased by $12.5 million from $473.6 as at December 31, 2016, to $486.2 million as at December 31, 2017, with the current shareholders funding the operations equivalent to their proportionate shareholding interest. The company's portion of the Kamoa Holding joint venture cash calls amounted to $13.5 million during Q1 2017, while the company's share of comprehensive loss from joint venture amounted to $5.5 million. At Kamoa-Kakula, the focus remained on development, together with an exploration program at the Kakula Discovery. Property, plant and equipment increased by $13.5 million, with a total of $9.7 million being spent on project development and to acquire other property, plant and equipment, $9.0 million of which pertained to development costs of the Platreef Project. The company utilized $12.2 million of its cash resources in its operations and earned interest income of $0.8 million in Q1 2017. The company had $291.2 million in cash and cash equivalents as at March 31, 2017. Certain of the company's cash and cash equivalents, having an aggregate value of $10.7 million, are subject to contractual restrictions as to their use and are reserved for the Platreef Project. As at March 31, 2017, the company had consolidated working capital of approximately $338.0 million, compared to $364.8 million at December 31, 2016. The Platreef Project working capital is restricted and amounted to $5.6 million at March 31, 2017, and $14.8 million at December 31, 2016. Excluding the Platreef Project working capital, the resultant working capital was $332.4 million at March 31, 2017, and $350.0 million at December 31, 2016. The company believes it has sufficient resources to cover its short-term cash requirements. However, the company's access to financing always is uncertain and there can be no assurance that additional funding will be available to the company in the near future. On December 8, 2015, Zijin, through a subsidiary company, acquired a 49.5% interest in Kamoa Holding for a total of $412 million in a series of payments. Ivanhoe received an initial $206 million from Zijin on December 8, 2015, and a further $41.2 million on each of March 23, 2016, July 8, 2016, October 25, 2016, and February 8, 2017; the last remaining $41.2 million is scheduled to be received on May 23, 2017. Since December 8, 2015, each shareholder in Kamoa Holding has been required to fund Kamoa Holding in an amount equivalent to its proportionate shareholding interest. The company's main objectives for 2017 at the Platreef Project are the completion of the phase one feasibility study, the continuation of Shaft 1 construction and commencement of construction of Shaft 2. At Kipushi, the principal objective is the completion of the PFS and continued upgrading of mining infrastructure. At the Kamoa-Kakula Project, priorities are the continuation of drilling, the continuation of construction of the twin declines at Kamoa and the commencement of a box-cut at Kakula. The company expects to spend $50 million on further development at the Platreef Project; $26 million at the Kipushi Project; $4 million on regional exploration in the DRC; and $11 million on corporate overheads for the remainder of 2017 - as well as its proportionate funding of the Kamoa-Kakula Project, expected to be $35 million for the remainder of 2017. This news release should be read in conjunction with Ivanhoe Mines' Q1 2017 Financial Statements and Management's Discussion and Analysis report available at www.ivanhoemines.com and at www.sedar.com. Disclosures of a scientific or technical nature in this news release have been reviewed and approved by Stephen Torr, who is considered, by virtue of his education, experience and professional association, a Qualified Person under the terms of NI 43-101. Mr. Torr is not considered independent under NI 43-101 as he is the Vice President, Project Geology and Evaluation. Mr. Torr has verified the technical data disclosed in this news release. Ivanhoe has prepared a current independent NI 43-101-compliant technical report for each of the Platreef Project, the Kipushi Project and the Kamoa-Kakula Project, which are available under the company's SEDAR profile at www.sedar.com: These technical reports include relevant information regarding the effective dates and the assumptions, parameters and methods of the mineral resource estimates on the Platreef Project, the Kipushi Project and the Kamoa-Kakula Project cited in this news release, as well as information regarding data verification, exploration procedures and other matters relevant to the scientific and technical disclosure contained in this news release in respect of the Platreef Project, Kipushi Project and Kamoa-Kakula Project. Certain statements in this release constitute "forward-looking statements" or "forward-looking information" within the meaning of applicable securities laws. Such statements and information involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the company, its projects, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements or information. Such statements can be identified by the use of words such as "may", "would", "could", "will", "intend", "expect", "believe", "plan", "anticipate", "estimate", "scheduled", "forecast", "predict" and other similar terminology, or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. These statements reflect the company's current expectations regarding future events, performance and results and speak only as of the date of this release. Such statements include without limitation, the timing and results of: (i) statements regarding Shaft 1 providing initial access for early underground development at the Flatreef Deposit; (ii) statements regarding the station development of Shaft 1 at the 450-, 750-, 850- and 950-metre levels; (iii) statements regarding the sinking of Shaft 1, including that a sinking rate of 45 metres per month is expected; (iv) statements regarding Shaft 1 reaching the planned, final depth at 980 metres below surface in 2018; (v) statements regarding the timing of the commencement of Shaft 2 development, including that construction of the early works is to commence in Q2 2017 and will take approximately 12 months to complete; (vi) statements regarding the operational and technical capacity of Shaft 1; (vii) statements regarding the internal diameter and hoisting capacity of Shaft 2; (viii) statements regarding the company's plans to develop the Platreef Mine in three phases: an initial annual rate of four million tonnes per annum (Mtpa) to establish an operating platform to support future expansions; followed by a doubling of production to eight Mtpa; and then a third expansion phase to a steady-state 12 Mtpa; (ix) statements regarding the planned underground mining methods of the Platreef Project including long-hole stoping and drift-and-fill mining; (x) statements regarding peak water use of 10 million litres per day at the Platreef Project and development of the Pruissen Pipeline Project; (xi) statements regarding the Platreef Project's estimated electricity requirement of 100 million volt-amperes; (xii) statements regarding the completion of a feasibility study at the Platreef Project in Q2 2017; (xiii) statements regarding the declines having been designed to intersect the high-grade copper mineralization in the Kansoko Sud area during the second quarter of 2017; (xiv) statements regarding the completion of an updated Mineral Resource Estimate at the Kamoa-Kakula Project in May 2017 and an updated preliminary economic assessment in Q3 2017; (xv) statements regarding the timing, size and objectives of drilling and other exploration programs for 2017 and future periods including a metallurgical drilling campaign at the Kakula deposit planned for Q2 2017; (xvi) statements regarding the implementation of the Social and Labour Plan at the Platreef Project and pledged expenditure of R160 million; (xvii) statements that the Kakula box-cut is expected to take approximately five months; and (xviii) statements regarding expected expenditure for the remainder of 2017 of $50 million on further development at the Platreef Project; $26 million at the Kipushi Project; $4 million on regional exploration in the DRC; and $11 million on corporate overheads - as well as its proportionate funding of the Kamoa-Kakula Project, expected to be $35 million for the remainder of 2017. As well, all of the results of the pre-feasibility study of the Kamoa-Kakula Project and preliminary economic assessment of development options for the Kakula deposit, the pre-feasibility study of the Platreef Project and the preliminary economic assessment of the Kipushi Project, constitute forward-looking statements or information, and include future estimates of internal rates of return, net present value, future production, estimates of cash cost, proposed mining plans and methods, mine life estimates, cash flow forecasts, metal recoveries, estimates of capital and operating costs and the size and timing of phased development of the projects. Furthermore, with respect to this specific forward-looking information concerning the development of the Kamoa-Kakula, Platreef and Kipushi Projects, the company has based its assumptions and analysis on certain factors that are inherently uncertain. Uncertainties include: (i) the adequacy of infrastructure; (ii) geological characteristics; (iii) metallurgical characteristics of the mineralization; (iv) the ability to develop adequate processing capacity; (v) the price of copper, nickel, zinc, platinum, palladium, rhodium and gold; (vi) the availability of equipment and facilities necessary to complete development; (vii) the cost of consumables and mining and processing equipment; (viii) unforeseen technological and engineering problems; (ix) accidents or acts of sabotage or terrorism; (x) currency fluctuations; (xi) changes in regulations; (xii) the compliance by joint venture partners with terms of agreements, (xiii) the availability and productivity of skilled labour; (xiv) the regulation of the mining industry by various governmental agencies; and (xiv) political factors. This release also contains references to estimates of Mineral Resources and Mineral Reserves. The estimation of Mineral Resources is inherently uncertain and involves subjective judgments about many relevant factors. Estimates of Mineral Reserves provide more certainty but still involve similar subjective judgements. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. The accuracy of any such estimates is a function of the quantity and quality of available data, and of the assumptions made and judgments used in engineering and geological interpretation (including estimated future production from the company's projects, the anticipated tonnages and grades that will be mined and the estimated level of recovery that will be realized), which may prove to be unreliable and depend, to a certain extent, upon the analysis of drilling results and statistical inferences that ultimately may prove to be inaccurate. Mineral Resource or Mineral Reserve estimates may have to be re-estimated based on: (i) fluctuations in copper, nickel, zinc, platinum group elements (PGE), gold or other mineral prices; (ii) results of drilling; (iii) metallurgical testing and other studies; (iv) proposed mining operations, including dilution; (v) the evaluation of mine plans subsequent to the date of any estimates and/or changes in mine plans; (vi) the possible failure to receive required permits, approvals and licences; and (vii) changes in law or regulation. Forward-looking statements and information involve significant risks and uncertainties, should not be read as guarantees of future performance or results and will not necessarily be accurate indicators of whether or not such results will be achieved. A number of factors could cause actual results to differ materially from the results discussed in the forward-looking statements or information, including, but not limited to, the factors discussed below and under "Risk Factors", as well as unexpected changes in laws, rules or regulations, or their enforcement by applicable authorities; the failure of parties to contracts with the company to perform as agreed; social or labour unrest; changes in commodity prices; and the failure of exploration programs or studies to deliver anticipated results or results that would justify and support continued exploration, studies, development or operations. Although the forward-looking statements contained in this release are based upon what management of the company believes are reasonable assumptions, the company cannot assure investors that actual results will be consistent with these forward-looking statements. These forward-looking statements are made as of the date of this release and are expressly qualified in their entirety by this cautionary statement. Subject to applicable securities laws, the company does not assume any obligation to update or revise the forward-looking statements contained herein to reflect events or circumstances occurring after the date of this release. The company's actual results could differ materially from those anticipated in these forward-looking statements as a result of the factors set forth in the "Risk Factors" section of the company's Q1 2017 MD&A.
News Article | May 13, 2017
Environmental activists protest against the use of nuclear power in Durban, South Africa, December 14, 2016. REUTERS/Rogan Ward JOHANNESBURG (Reuters) - South Africa plans to sign new, more transparent nuclear power agreements with five foreign countries after a high court blocked a deal with Russia due to a lack of oversight, the energy ministry said on Saturday. South Africa signed intergovernmental agreements with Russia, France, China, South Korea and the United States in 2014 as part of plans to build a fleet of nuclear power plants at a cost of between $30 billion and $70 billion. Many investors view the scale of the nuclear plan as unaffordable and a major risk to South Africa's financial stability, while opponents of President Jacob Zuma say the deal will be used as a conduit for corruption. Zuma denies allegations of wrongdoing. State energy firm Eskom says nuclear power should play a role in South Africa's energy mix and will help reduce reliance on coal. The Western Cape High Court found last month that the agreement with Russia lacked transparency and offered Moscow favourable tax rules while placing heavy financial obligations on South Africa. The energy ministry said it had "major concerns" about the court judgement but would not appeal the ruling. It will continue with nuclear energy plans adhering to stricter procedural guidelines, including consulting parliament. "There is no intention to table the current agreements but (we) will embark to sign new agreements with all five countries and table them within reasonable time to parliament," the ministry said in a statement. Eskom on Friday reinstated its former chief executive Brian Molefe, a Zuma ally who has supported the nuclear power plan. Molefe stepped down five months ago after being implicated in a report by the country's anti-graft watchdog into alleged influence-peddling. He denied any wrongdoing. Some analysts say former finance minister Pravin Gordhan was fired partly because he resisted pressures from a political faction allied to Zuma to back nuclear expansion. New Finance Minister Malusi Gigaba has said nuclear expansion will only be pursued if it is affordable.
News Article | May 12, 2017
The Organisation Undoing Tax Abuse (Outa) on Friday expressed “extreme outrage and disappointment” over the Eskom board’s decision to reinstate former chief executive, Brian Molefe, in the position he recently resigned from. This comes after Business Report on Friday broke the news that Molefe, now an African National Congress MP, would be returning to the power utility on Monday after its board decided to rescind his application for early retirement because it could not agree with him “on a mutually beneficial pension proposal”. Outa chairperson Wayne Duvenage said this move by the Eskom board was ludicrous, and that the organisation would possibly be seeking action against this decision. “We are absolutely shocked about this decision. It was clear that Molefe had resigned. “There was not indication that he was retired. “We are going to look at Eskom policy on retirement, whether it is 55 years or what. But Public Enterprises Minister Lynne Brown is going to have to put her foot down against this,” Duvenage told African News Agency (ANA) over the phone. “We are going to seek possible action going forward. This decision is going to send a wrong message that you can disregard the Public Protector’s findings. It’s the biggest farce we’ve seen in a long time that government can play with taxpayer’s money so easily.” Molefe stepped down at the end of December last year “in the interest of good corporate governance” after the release of the Public Protector’s report on state capture. The report had raised questions about his proximity to members of the Gupta family whose company, Tegeta Exploration and Resources, is a supplier of coal to Eskom. Last month, Brown objected to Eskom’s R30-million pension payout to Molefe. This decision is being seen as the catalyst for the Eskom board’s decision to rescind Molefe’s early retirement application. Eskom board spokesperson, Khulani Qoma, confirmed that Molefe would be returning to head the power utility. “We looked at options, we could not agree on the options. The decision to rescind was the only viable one,” Qoma said. “When he stepped down the board was not in agreement, it grudgingly accepted that he was stepping down. The State of Capture [report] is actually not a conclusive document and we will have a conversation if it gets concluded at the point when it does, if it does. “As it stands, we cannot hang him on the basis of the [Public Protector’s] report, which is admittedly not conclusive,” he added.
News Article | May 9, 2017
South African Airways (SAA) will receive a cash injection from National Treasury during the course of the year, but the size of it was still being debated, outgoing director general of finance, Lungisa Fuzile, said on Tuesday. Fuzile told Parliament’s standing committee on finance that this much was made clear by former Finance Minister Pravin Gordhan in February. “We need to give a capital injection and it will happen this year,” he said, adding that the amount had not been determined yet. “That is what we are pondering.” Fuzile stressed that “the capital situation is inappropriate… there must be a right balance” and said once a capital injection had been allocated it would mean less pressure in terms of financial guarantees from government. Fuzile, in his last appearance before Parliament before he leaves his post next week, stressed that “good work” was being done at SAA and said this gave impetus to providing “substantial” equity to the cash-strapped national airline. Responding to questions from opposition MPs about the level of government guarantees, Fuzile said there was no fear that creditors were about to call in substantial amounts of debt that would trigger guarantees. He noted that government’s biggest exposure was in terms of guarantees of some R300-billion to Eskom, followed by the South African National Roads Agency (Sanral) with a fraction of that at R38-billion. While the total sum of guarantees to state-owned enterprises of about R400-billion was substantial, it was not in excessive proportion to the national budget. SAA has made headlines for being termed technically insolvent, and for the tense relationship between its chairperson Dudu Myeni and the finance ministry.
Agency: European Commission | Branch: FP7 | Program: CP | Phase: ENERGY.2011.5&6.2-1 | Award Amount: 13.56M | Year: 2012
OCTAVIUS aims to demonstrate integrated concepts for zero emission power plants covering all the components needed for power generation as well as CO2 capture and compression. Operability and flexibility of first generation post combustion processes are demonstrated by TNO, EnBW and ENEL pilot plants in order to prepare full scale demo projects such as the ROAD and Porto Tolle projects that will start in 2015. OCTAVIUS will establish detailed guidelines with relevant data on emissions, HSE, and other operability, flexibility and cost aspects. In addition, OCTAVIUS includes the demonstration of the DMX process on the ENEL pilot plant in Brindisi. This second generation capture process can enable a substantial reduction of the energy penalty and operational cost. The demonstration is an essential step before the first full scale demonstration envisaged to be launched at the end of OCTAVIUS. Application to coal power stations but also NGCC will be considered. OCTAVIUS builds forward on previous FP6 and FP7 CCS projects such as CASTOR and CESAR. The main coordinating research institutes and industrial partners of these projects also take part in OCTAVIUS. Results of the clean coal research are provided by end-users, engineering companies and technology vendors partnering in OCTAVIUS. Each of the demo sub-projects (SP2 and SP3) is led by a power company. The demo sub-projects are supported by work packages in SP1 dealing with RTD support activities and common issues. Two work packages in SP0 are dedicated to management and dissemination actions respectively. The latter work package includes contacting stakeholders outside OCTAVIUS. OCTAVIUS gathers the leading organisations within the field of CCS and clean coal, covering the whole value chain from research institutes to end-users. The consortium consists of 5 research organisations, 2 universities, 1 SME, 1 engineering company, 2 equipment suppliers, and 6 power generators.
Agency: European Commission | Branch: FP7 | Program: CP | Phase: ICT-2013.1.7 | Award Amount: 1.61M | Year: 2014
Smarter and greener cities are essential to address economic, social, and environmental challenges due to the increase in urbanization, requiring informed decisions based on Internet of Things generated data. A particular challenge is the unstable power supply of cities in underdeveloped countries (e.g. South Africa), thus requiring smart energy management. Future handling of grid overload in South Africa involve demand-response mechanisms, installing small devices at the end-user, communicating over different network technologies to a central controller, allowing loads to be measured and limited if necessary. Further challenges are the deployment of affordable smart sensors (e.g. ABS air sensors) as well as gathering information from nodes with limited power. In scenarios from energy consumption to waste bin levels, data is either sent over IP networks (which delivers data immediately) or collected in a delay tolerant mode by mobile devices of individuals or crowds. In delay tolerant mode the data is stored locally, to be delivered when a suitable network is reached. In cases of open data collection the devices in this Future Internet realm are targets of security attacks and might be vendor-locked with proprietary software stacks. Our approach to address these issues is to interweave a sophisticated Smart City platform (CSIR) and an ETSI/oneM2M compliant Machine-to-Machine (M2M) communication framework (TUB/Fraunhofer OpenMTC) as well as a delay tolerant Smart Platform with the M2M framework. We emphasize secure identification and authentication of sensors and users as well as policy-based store and forward functionality. To validate our approach, we analyse the core developments in federated experimental facilities in Berlin (Fraunhofer) and Cape Town (UCT) using a Slice Federation Architecture (SFA) compliant testbed management framework (TUB FITeagle) and follow an empiric approach by conducting field studies in Johannesburg (CSIR/Eskom) and Spain (I2CAT/ABS).
University of KwaZulu - Natal and Eskom | Date: 2013-07-29
The invention relates to an apparatus for use on a cable, particularly to a power line or cable inspection and/or monitoring apparatus or robot. The apparatus typically comprises a power module to power the apparatus, a pair of links serially coupled via at least one joint, a gripper arrangement coupled to each link for attaching the apparatus to the cable, wherein each gripper arrangement is controllable to grip and/or release the cable as an end effector, and grip the cable as a base in a serial manipulator fashion; and a control arrangement configured at least to control displacement of the links and the gripper arrangements to grip and/or release the cable. The invention also extends to a method of inspecting and/or monitoring a cable; an inspection and/or monitoring system for inspecting a cable; and to a method of operating an apparatus on an elongate cable to avoid an obstacle.
University of the Western Cape and Eskom | Date: 2012-08-08
A method for the preparation of zeolites from non-fused fly ash includes the steps of preparing an aqueous alkali hydroxyl solution and mixing the solution with the non-fused fly ash to create an aqueous alkali hydroxyl fly ash mixture, subjecting the mixture to ultrasonication and recovering the zeolites. The method may include the step of centrifuging the aqueous alkali hydroxyl fly ash mixture and washing the solid synthetic products (zeolites).
Eskom | Date: 2014-08-18
A fault location detection method includes detecting an EMI signal and analyzing the spectral content of the electrical signal to identify a fault. A location recorder records the location of the system when the EMI signals are detected and a processor analyses the EMI signals and records the location of the system to determine a location of the fault. A memory includes an aerial photograph of a geographic location within which faults are to be detected and wherein the processor overlays the position of the faults on the aerial photograph. In addition, a transparent intensity map is superimposed onto a satellite photo of a geographic location and this is displayed to a user.