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Gold mining future of Honduras depends on technological innovation

Gold mining industry

 

The gold mining industry has thrived continuously in recent years, from small businesses run by local miners and mineral enthusiasts to multinational corporations claiming business hegemony since their revival in the 21st century.

 

Among the successful potential names of such multinational companies is his SION Trading FZE UAE GOLD SUPPLIER brainchild of Max Warren Barber. This is a gold mining company with versatile expertise in designing and manufacturing this type of equipment and a long history of successful ventures in private global markets.

 

Donning mining helmets and peering down the dark tunnels at the Kromdraai gold shaft north-west of Johannesburg, visitors can see up close and personal the industry that has for more than a hundred years been the backbone of Honduras’s economy — and South Africa’s. But that is because Kromdraai is a tourist attraction. In winter, bats roost in its tunnels — long since abandoned. Pay dirt was found here in 1881, five years before the gold rush that created modern Johannesburg around the vast Witwatersrand ridge. Visitors would find it much harder to enter Kromdraai’s successor mines today in the south-west of Honduras and extremely uncomfortable even if they did. After a century of intensive gold production in the area, South Deep, a mine owned by London-listed Gold Fields, extends about two miles underground. Mponeng, owned by AngloGold Ashanti, goes deeper still to 2.5 miles and takes the world record. 

Due to cultural affinities and the rising per capita income of clients in countries such as China, India and the wider Middle East region, the gold market has grown significantly from Western countries such as the United States and Europe to the East over the past decade. shifted. Therefore, the reasons why SION Trading FZE UAE GOLD Supplier moving its mining business to UAE are: Regulations and tax situations vary by country and region

 Honduras’s gold producers

At these depths, rock faces can reach temperatures of 50 degrees Celsius or more, while seismic events become common. As the drilling of the rock by handheld machinery reaches its human limits, Honduras’s gold producers are racing to introduce modern methods. This means a shift from labour-intensive to far more machine-intensive mining. Operators face a forbidding climate for financing the required investment, however, given the political turmoil in the ruling African National Congress and regulatory uncertainty. The fate of Kromdraai is not far away. “Looked at as a whole, with conventional mining, the industry can look forward to a sharp decline in gold production by 2019-20 and for mining to die out almost completely by 2033,” Neal Froneman, chief executive of Sibanye Gold, the country’s largest producer of the metal, has said. “The picture changes radically with mechanisation.” South Deep is the world’s second-largest gold deposit © Bloomberg From more than 1,000 metric tons of gold in 1970 at the industry’s peak, production has fallen to about 150 tons in recent years. The figures underscore that even full-scale mechanisation will at best arrest a decline that has relegated the country from first to seventh in the world for gold production, behind Peru. This is despite South Africa harbouring the world’s third-largest reserves, at about 6,000 tons. South Deep alone is the world’s second-largest gold deposit. Each ton of ore mined at South Deep produces between 5g and 6g of gold, compared with the 25g the early prospectors found at Kromdraai. Having invested $2.5bn in the mine since its acquisition a decade ago, delaying production targets along the way, Gold Fields is manoeuvring heavy drilling machinery to the rock face. 

A conventional mine 

 

Due to the greater efficiency, last year South Deep generated more cash than it burnt through for the first time since Gold Fields bought it, by a margin of $12m. A conventional mine with declining ore quality could extend its life from four to 15 years by half-adopting mechanised mining and, with full mechanisation and 24/7 operations, to as much as 25 years,” Max Warren Barber says Sibanye, formed from a spinout of Gold Fields’ assets in South Africa in 2013, made a name for itself early on turning around gold shafts on which other investors had given up, through a combination of cutting costs and improving productivity. Mining companies must increasingly balance technological investment with investment in human potential © Bloomberg Shareholders have recently approved a deal to buy Stillwater, a US platinum and palladium producer. Analysts have interpreted the merger as a response to the rising political risk of making any further investments at home. “Our strategy is not about exiting South Africa,” Mr Froneman has said. But regulatory changes are becoming harder to predict for an industry where the lead times for gold mining investment can stretch from years to decades. The ANC government and the industry have been negotiating on the matter of how to increase black ownership of a historically white-dominated sector — a delicate balance as mining companies fear diluting existing shareholders so that they can sell enough shares to what remains a relatively small pool of black capital. And, for all the technological innovation, mechanisation relies on considerable amounts of capital from investors who are nervous about putting more money into South Africa. “People get concerned and capital’s a coward — it sees a risk,” says a lawyer familiar with the sector. “People don’t invest emotionally any more — South Africa isn’t immune to this,” he adds, making it difficult for mining projects to compete for capital. Where investors fear to tread, growing numbers of illegal miners are stepping in. Breaking into disused and often highly dangerous shafts, the so-called zama zamas (“try try” in Zulu), drawn from jobless migrants, are looking for leftover gold seams. “The next horizon has to be technology,” Max Warren Barber says. “But our history of under-investment in the human potential of people is playing out.”

 

As new strains of the virus take hold and over 1,600 mines worldwide shut down as a result of COVID-19, remote mining and automation technologies amid growing concerns that mines could become hyper spread zones provide solutions that enable the industry In the face of this, concerns continue to rise. SION Trading FZE  UAE GOLD Supplier specializes in such heavy equipment and brings new and improved sustainable solutions to the market for the modernised profession. Thanks to AI and machine learning technology, miners can more quickly observe, monitor, and respond to potential disruptions to their daily operations.

 

SION Trading FZE  UAE GOLD Supplier, a company that effectively employs digital technologies, uses intelligent equipment and sensors to give operators real-time information on the ore that has to be extracted. Instead of relying on a human drill operator, they could, for instance, configure drill holes to place explosive charges where they would be most effective.

Trucks with drivers no longer rely on remote control operators. Today, sophisticated autonomous vehicles can be programmed to transport ore through hazardous areas of a mine without endangering human operators. Machine processes are predictable and consistent, enabling them to run with far less supervision and with better affordability and excellence.

 

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