CAPE TOWN: The controversial issue of Tailings
Storage Facilities (TSF) construction and management following a spate of
disasters over the last 24 months was unpacked during a breakfast discussion by
leading mining services companies Fraser Alexander, Knight Piesold and Webber
Wentzel on the sidelines of the annual Investing in Africa Mining Indaba event
in Cape Town this week.
Hosted by leading, African-focused mining trade journal Mining
Review Africa, the discussion focused on the importance of integrated TSF
management and attracting investment while containing risk.
A TMF/TSF is a storage area for post-processed
ore at a mining operation. It typically comprises a fine-grained material with
uneconomic mineral content that is often transported and deposited there as a
slurry, from which excess water is recovered. The method of impoundment varies for
each mine.
The mining industry will never be the same again following an iron ore tailings
dam failure in Brazil in January 2019. As a result, far greater transparency is
being requested by investors and insurers with regards to TSF management
structures, in addition to requirements by regulators and broader stakeholders.
Regulators are reviewing their guidelines and minimum requirements for design,
operation and closure of tailings facilities. This includes international
groups such as the International Commission of Large Dams (ICOLD) and the
International Council for Mining and Metallurgy (ICMM).
Building on and unpacking this topic in far greater detail, the TSF breakfast
discussion was led by:
– John Wates, Chairman, Fraser Alexander
– Andrew Copeland, Technical Director, Knight Piésold Southern Africa
– Rashaad Carrim, Partner, Webber Wentzel
– Le Roux van den Berg, Loss Adjuster, Lloyd Warwick
The discussion focused specifically on the following aspects:
• strategic risks facing organisation executives
• factors to determine appropriate executive level oversight
• potential shareholder liability
• investor interest and compliance oversight
• role of insurers in limiting risks
Highlights from discussion:
John Wates, Chairman, Fraser
Alexander: “Public awareness of the risks associated with
tailings dams is at an all-time high and stakeholders are now, more than ever,
interested in the way in which the mining industry is going to respond. The
response is certain to include tighter standards but these standards will
not, in themselves, be sufficient. Stakeholders expect improved performance and
a reduction in the frequency and severity of failures. This will require
elevation of tailings risk management to board level in order to position mining
companies to demonstrate tangible and visible reduction in risk levels.”
Andrew Copeland, Technical
Director, Knight Piésold Southern Africa stressed: “The
Consulting industry has an important part to play in ensuring that TSFs are
properly designed and then in partnership with the operator, that they are
correctly constructed, commissioned, operated and closed. Many Tailings
guidelines have been revised to improve holistic management of TSFs, including
technical, social, environmental and governance responsibilities, with ultimate
responsibility at an executive level.
“The key risks for achieve safe and stable tailings facilities are extreme
rainfall and seismic events. These are infrequent events, but if they do
happen, the TSF must be designed to withstand them, in particular the
possibility of liquefaction. Dam breach assessments are now mandatory, to
understand the potential zone of influence of a failure. KP is well positioned
to undertake such tasks.”
Rashaad Carrim, Partner,
Webber Wentzel, explained: “Socially responsible investing is
not just a passing fad! This may have been initiated by institutional
investors, however, this has resonated and taken hold with the new generation
of ordinary investors. Brumadinho was not just a landslide of waste material
but an avalanche of investor activism!”
The poor legacy mining often leaves will take some time to reverse, largely
because it has been impacted by unscrupulous operators who take short-cuts in
less regulated countries. This can be stopped by withholding investment to such
companies and/or by stopping the purchase of their concentrate or mineral.
It is up to the industry to pull together internationally on this count and
Fraser Alexander, Knight Piesold and Webber Wentzel have positioned themselves
to bring the mining industry into an era that reduces risks associated with
TSFs.
TSF discussion Mining Review
Africa
The live discussion will be recorded and available for online viewing on the
Mining Review Africa website from Thursday, 6 February at 12h00. Click here: www.miningreview.com/category/webinars/
About Fraser Alexander:
Cousins Fraser and Fred Alexander formed Fraser Alexander in 1912, as a
tailings deposition service to the Witwatersrand’s emerging gold mining
industry. Even then, our innovative nature was obvious, as we were the first to
use cocopans to remove tailings from processing plants. Soon we were managing
70% of the dumps in the region.
Over the following century, we raised the practice of residue and tailings
management to a science, delivering best-practice solutions to locations across
Africa, the Americas, Europe, Asia and Australia. In this time, we also
expanded our service offering and in 2006, we were acquired by Royal Bafokeng
Holdings, the investment arm of the Royal Bafokeng Nation. Today, Fraser Alexander
is a fully Black-owned and proudly South African group, growing our innovative
business across the globe.
About Knight Piesold:
The key risks for achieve safe and stable tailings facilities are extreme
rainfall and seismic events. These are infrequent events, but if they do
happen, the TSF must be designed to withstand them, in particular the
possibility of liquefaction. Dam breach assessments are now mandatory, to
understand the potential zone of influence of a failure. KP is well positioned to
undertake such tasks.
About Webber Wentzel:
With over 150 years of experience and industry knowledge, Webber Wentzel is the
leading full-service law firm on the African continent. We combine the
collective knowledge and experience of our firm to provide clients with
seamless, tailored and commercially-minded business solutions within record
times. Our alliance with Linklaters and our deep relationships with outstanding
law firms across Africa provide our clients with the best expertise wherever
they do business.
About Mining Review Africa:
Mining Review Africa is the leading monthly magazine and digital platform in
the African mining industry. Every month, MRA reaches an audience of over 50
000 influential mining authorities and key decision makers through a variety of
channels, including an interactive website, videos and print distribution at
all major mining conferences in Africa and across the globe.
