By Mark Egan

As operations manager at a South African platinum mine, Percy French has faced huge challenges over the past few years because of volatility in commodity prices. The price of platinum has dropped in half, and at the same time the value of the South African currency, the rand, has fallen precipitously. To keep his mine profitable, French had to look for new ways to make it more efficient. He found sensors and software. “We cannot afford any loss of revenues from inefficiencies because our cost to refine one ounce of platinum remains the same even though we get paid half of what we used to,” French says.

French’s company, Lonmin Plc, about an hour’s drive from Pretoria, is the world’s third-largest platinum producer. The process of refining platinum works like this. Once the ore has been crushed and turned into dust, furnaces heat the concentrated powder to over 1,500 Celsius and blow air through it to remove iron and sulfur impurities. This helps to shrink its mass before the refining process. A mix of chemicals and heat are repeatedly applied to the ore until eventually you get pure platinum, which is used in everything from automotive catalytic converters to jewelry and computer hard disks. It can take up to six months and 7 to 12 tons of ore, put through several complex physical and chemical processes, to create one troy ounce (31.1 grams) of platinum, now valued at about $930.

Lonmin’s operations were suffering from bottlenecks, French says. Downtime in the drying area of the smelter sometimes caused the whole production line to come to a standstill, resulting in the platinum being ruined. “If we lose one hour of availability, that costs us roughly 1.72 million rand per stoppage,” French says.

Operators also struggled to calculate just how much crushed ore to mix with chemicals and water to produce the right amount of concentrate powder so it could be dried at a steady pace in the furnace.

French found the tools he needed to keep the plant running smarter in GE’s Digital Mine solution, which uses data gathered from sensors on equipment to make operations run more smoothly. Digital Mine helped make those calculations and kept powder flowing to the furnace at a steady rate, meaning the entire plant used less power ramping up and cooling down the furnaces.

The improvements made as a result of Digital Mine led to less wasted production time, French says, and helped Lonmin produce 1.5 percent more platinum from the mine. “GE products have brought stability to our operations, boosting the recovery of ore and significantly contributing to our bottom line,” French says. “A minor improvement in recovery causes a major improvement in profits, which can lead to significant cost savings for the plant.”

For example, French says that at a price of 10,800 rand ($804) per basket of platinum, the improvements made with Digital Mine boosted profits by 800 rand ($60) — a gain of more than 7 percent. French says Digital Mine has also helped cut sulfur dioxide emissions from the mine by optimizing the gas cleaning plant.

French has been using Digital Mine since 2007 and says it has become “very difficult to exist without it.” He says that over the past decade the software has been added to more and more operations, helping him to “highlight more and more potential areas for improvement.” As a result, he plans to upgrade his technology to leverage Predix, GE’s new cloud-based platform for the Industrial Internet, and Asset Performance Management software to add predictive-monitoring capabilities so that he knows in advance when equipment is going to require maintenance.

When applied to some of the smelter’s critical equipment, including fans and blowers, Lonmin can avoid costly, unplanned downtime, French says.

GE Digital Mine Global Strategic Marketing Leader Kevin Shikoluk says the mining industry could particularly benefit from following Lonmin’s example by adding digital capabilities, particularly real-time, data-driven insights. He says the world’s top 40 mining firms alone had 2014 operating expenses of $531 billion and that if they captured a 1 percent efficiency improvement they would yield $5.1 billion annually.

BLOGBy Melissa Britz

Marrakech — When industrialization is mentioned I get a bit uncomfortable. Don’t get me wrong I’m not “anti-progress”. It’s just that that word conjures up images of big polluting factories, low-wage labour and soul-deadning boredom. But as Meghan Trainor says: “You need to let it go, you need to let it go”.

On the sides of COP22, the United Nations Economic Commission for Africa launched its Economic Report on Africa 2016. Former chair of the commission, Carlos Lopes says that U.S. $50 billion of manufactured goods are exported from Africa every year. So African countries can and do manufacture goods on a large scale.

While Africa is late to the industrialization bandwagon it presents an opportunity for countries to take a more sustainable development path. He points out a number of advantages that the continent has: in particular, greater potential to harness renewable energy than other regions and the much-touted demographic dividend, which means we have the largest and youngest labour force. While skilled labour remains a challenge, Africa has enough people who are educated to a level that makes the manufacturing of basic goods possible.

The dichotomy of development versus the environment is a false one, says Ngozi Okonjo-Iweala, former Nigerian finance minister and currently a Global Commissioner on the Economy and Climate. “Global CO2 emissions are flat for three years in a row. This means you can have growth and lower emissions.” She emphasised the need to invest in the sustainable infrastructure required for green growth as well as sound macro-economic policies on exchange rates, inflation and debt.

The African Union’s Commissioner on the Rural Economy and Agriculture, Rhoda Tumusiime Peace, says that “Africa’s Agenda 2063 puts people at its centre and shows where Africa should be in the next 50 years”. It has has an ambitious implementation strategy that looks at progress in 10-year increments. This strategy together with the Sustainable Development Goals highlights the need for green industrialization for African growth. The early adopters of green policies and renewable energy are the countries that are currently doing well, she says.

“There will always be reasons for you to be pessimistic” says Lopes. “But there is much reason for optimism.”

Minister of Finance, Economic Planning and Development Goodall Gondwe has said China will provide Malawi with 160 million yuan [about K16.5 billion or a $23 million] to improve Internet connectivity .

Gondwe said this after the signing of framework agreement on the provision of a concessional loan with China for the Malawi National Fibre Backbone Project.

The government of Malawi does not have centralized control over the international gateway, which the International Telecommunication Union (ITU) characterizes as competitive.14

Malawi has a total of six fiber gateways to the SEACOM and EASSy cable landings, three each through MTL and the Electricity Supply Corporation of Malawi Limited (ESCOM).

The state-owned Malawi Sustainable Development Network Programme (SDNP), a licensed ISP, oversees the local traffic hub that connects the country’s internet service providers (ISPs.)

Gondwe said with the Chinese loan concenssion Malawians will benefit from the project because most rural areas will now have Internet through the Malawi National Fibre backbone.

He said the issue will be taken to Parliament and once approved, government will go ahead to get the money from China.

According to Gondwe, under the framework agreement, it will be concessional at 21 percent interest and have a five-year grace period. It has 15 years repayment period.

The connectivity, whose lines will be carried using Escom electricity transmission poles, will have drop points at Capital Hill in Lilongwe, Government Office Complex in Blantyre and government offices in Zomba.

Chinese Ambassador Shi-Ting Wang said with the building of the Malawi National Fibre Backbone, Malawians will have ” timely benefits of this information era in the near future.”

Currently, onnection speeds for Malawian users are frustratingly slow, decreasing to an average of 1.7 Mbps from 1.9 Mbps a year prior, compared to a global average of 6.3 Mbps, according to Akamai’s “State of the Internet” report.6

The Freddom House index report for 2016 has also noted that slowing speeds have coincided with rising costs, likely due to poor infrastructure management and lack of investment.

Malawi’s flagging economy in the past year has reinforced its status as a least developed country, with soaring inflation having a negative impact on the ICT sector.

Low rates of internet and mobile phone access in Malawi are largely a result of the high cost of service for consumers, including 17.5 percent value-added tax (VAT) on mobile phones and services, and 16.5 percent VAT on internet services.

In May 2015, the Malawian parliament implemented an additional 10 percent excise duty on mobile phone text messages and internet data transfers.

Consequently, access to the internet is extremely expensive for average Malawians.

A low literacy rate of 64 percent also hinders access to ICTs, and there is a significant digital divide along gender lines.

Unreliable electricity and the high cost of generator power strain ICT use. Less than 10 percent of the country has access to electricity, giving Malawi one of the lowest electrification rates in the world, according to the World Bank.

The electricity grid is concentrated in urban centers, but only 25 percent of urban households have access, compared to a mere 1 percent of rural households.

Half of Malawi’s private sector enterprises rely on backup generators.

The high cost of infrastructure development in rural areas makes companies unwilling to invest in the country’s remote regions.

ANALYSISBy Alex Gitta

If your country’s police force has a reputation for corruption, how comfortable would you feel as a motorist about spot checks for drink-driving? One software developer came up with his own solution.

A group of police officers are engaged in an altercation with a driver who they have just stopped at a checkpoint. He has been asked to take a breathalyzer test to determine if he was in a fit state to drive. He wasn’t.

In Uganda, these checks are known as Kawunyemu, which means “smell it.” Before the introduction of the breathalyzer, Ugandan police would use their noses to detect whether a suspect had been drink-driving or not.

One Ugandan software developer has designed a smartphone app with which motorists can warn fellow drivers of the location of police drink-drive checkpoints.

This developer has refused to be interviewed by the media face-to-face or reveal his name but claims that his invention has been welcomed by the many people who are using it.

Drunken friends

He says inspiration for the app came after six friends of his – all in the same vehicle – were arrested. They were all drunk.

He defends himself against criticism of his app.

“While people may think it’s a bad thing and so forth, if you look at the way the police operate sometimes, you just have no option but to do what you can, so we decided to come up with this app.

The Ugandan police have been listed as among the most corrupt government departments in the country.

Drivers have the responsibility “not to drink and drive,” the developer said. “People who are drunk should watch the speed at which they are driving and try and get somebody else to drive them instead.”

Police say they are looking for the developer, who can expect to face cyber crime-related charges.

They say they have been monitoring users of the app and could be closing in on the developer.

The police have also launched a campaign to specifically discourage people from downloading the app.

DW asked a few Ugandan drivers whether they would use the app to avoid a police drink-drive checkpoint. Some said they would install the app to avoid corrupt policemen who were always soliciting for bribes. Others believe the app will cause more accidents.

“The idea of having roadblocks to catch people who are driving under the influence is a good one. The intention is good, but is has been abused, it has been misused, because the police are there to collect money. If this application is there to help me know where they have put the roadblocks, I would use it,” one motorist said. But another motorist is more cautious. “It gives a lot of loop holes so that people can beat the police. I have heard about it, but I haven’t used it,”

By Ouma Wanzala

The Teachers Service Commission has launched a new online system for appraisal of more than 290,000 teachers across the country.

The system contains the teacher performance appraisal and development tools.

TSC acting director for teacher management Mary Rotich has directed all county education directors to ensure that they upload appraisal data for teachers on a termly basis in the system.

In a memo seen by the Nation dated November 3 addressed to TSC county directors, Mrs Rotich has directed them to ensure that all sub-county directors activate and create online appraisals for the heads of institutions in their sub-counties.

In a collective bargaining agreement that was signed by TSC and teachers’ unions leaders last month, teachers will be evaluated annually as per the code of regulations.

The move is aimed at dealing with absent teachers in schools who have been blamed for poor performance in national examinations.

DO NOT ATTEND CLASS

A recent report by the Education Commission, a United Nations’ backed agency, which consists of former and current heads of state, business and education leaders, revealed that nearly a half of primary teachers in Kenya do not attend class.

The report showed that absenteeism costs Kenya Sh27 billion a year in wasted pay, with 47 per cent of teachers staying away from classes while 16 per cent of them choose not to report to school at all.

The appraisal of teachers which started this year is fundamental shift in policy in public employment and is aimed at enhancing and maintaining high performance standards in teaching service.

TSC, Kenya National Union of Teachers and Kenya Union of Post Primary Education Teachers also agreed to ensure continuous professional development and annual appraisal evaluation system.

There will be career development for those who perform well.

“All heads of institution activate and create appraisal of teachers and their institutions and the data is uploaded at the institutional level,” said Mrs Rotich.

Maputo — Mozambique has taken “very important steps” in recent weeks to deal with the “hidden debts” inherited from the previous government, the Deputy Director of the Africa Department of the International Monetary Fund (IMF), David Owen, told reporters in Maputo.

He was speaking on Monday, after he met with Prime Minister Carlos Agostinho do Rosario.

The “hidden debts” refer to loans of over 1.1 billion US dollars from European banks (Credit Suisse and VTB of Russia) to the quasi-public companies Proindicus and MAM (Mozambique Asset Management) that were illicitly guaranteed in 2013/14 by the government of the then President Armando Guebuza.

Owen was pleased that terms of reference for an audit of Proindicus, MAM and the Mozambique Tuna Company (Ematum) have been agreed between the Mozambican Attorney-General’s Office, the IMF and the Swedish government, which is financing the audit. The US company Kroll has been chosen as the auditor. It has a reputation as the foremost company in the world for undertaking forensic audits.

Owen expected the contract with Kroll to be signed very soon, after which it would have 90 days to complete the audit.

The IMF official praised the “significant tightening of macro-economic policy”, and particularly the dramatic rises in interest rates announced by the Bank of Mozambique in October. This, he said, had led to the stabilization of the exchange rate of the Mozambican currency, the metical.

Such measures should be continued into 2017, Owen continued, but he warned of “the need to protect the poorest in society from the effects of fiscal adjustment”.

He noted that the government “has taken the first steps to talk to creditors about restructuring the private external debt”.

“We want to see the result of the audit, and progress in the discussions with creditors, so that we can be confident that Mozambique’s debt is set on a sustainable path”, said Owen.

But hedge funds who purchased Ematum bonds are creating problems for debt restructuring. They have formed a “creditors’ committee”, after taking alarm at the October warning by the Minister of Economy and Finance, Adriano Maleiane, that the country’s current debts are unsustainable and must be restructured.

The “creditors’ committee”, according to a report from the Reuters news agency, was formed by 60 per cent of the holders of Mozambique’s 2023 Eurobond. This is what remains of the bonds for 850 million dollars issued in 2013 Credit Suisse and VTB on behalf of EMATUM.

This debt has already been restructured once and the “creditors’ committee” object to a second restructuring. They have refused to negotiate until the audit of Ematum, Proindicus and MAM has been completed and published.

If the bondholders stick to that position, negotiations with the government could not start before February, at the earliest.

Asked about this obstacle, Owen declined to comment. “The creditors will take their own decision”, he said. “The IMF is not involved in discussions between the creditors and the government”.

By Sebastian Mhofu

Zimbabwe’s central bank won’t say exactly when its controversial new bond notes will go into circulation this month, but the prospect has left many Zimbabweans worried. A protest is planned for later this week.

Zimbabwe’s radio and television stations have been flooded with Reserve Bank of Zimbabwe’s jingles promoting the bond notes saying they would be introduced any time this month. The central bank says the bond notes will trade on par with the U.S. dollar and that they will ease the severe cash shortages Zimbabwe has been facing for close to a year now.

Not to be outdone, some Zimbabweans have started circulating on social media jingles denouncing the proposed bond notes. That jingle says bond notes are the chemical agent that will finally destroy Zimbabwe’s ailing economy. Linda Maupa says she will take part in a protest planned for Friday by the opposition and civic organizations against the controversial new bond notes.

“I think it is a way of stealing from us. Daylight robbery like what they did in 2007, 2008,” Maupa said. “I feel we are being robbed. They are taking our U.S. dollars that are valuable and replacing them with bond notes that are just paper, printed paper. And we are not going to find goods in stores. The money cannot buy because it is not foreign currency. They need foreign currency to purchase things from outside the country. And if we have bond paper we are going to starve like we did in 2008.

Zimbabwe abandoned its own worthless currency in February, 2009 amid hyperinflation. Since then, it has been using all major foreign currencies but mostly the U.S. dollar.

Over the weekend, Zimbabwe Vice President Emmerson Mnangagwa said the government would go ahead with introducing bond notes despite threats of protests. He said bond notes are meant to slow down the smuggling of foreign currency out of Zimbabwe.

“The U.S. dollar is for international transactions. That is only found in Zimbabwe, a unique country, which is abusing the dollar,” Mnangagwa said. “So we said we must make sure that we use the U.S. dollar for the purpose we designed it. So we needed to find a mode of transaction that is domestic because if you put $200 million into Zimbabwe today, after a few days it’s all gone. It is not even going through the banking system.”

Zimbabwe has struggled to pay civil servants over the past year as revenue from taxes and duties has fallen. Analysts have long urged President Robert Mugabe’s government to attract foreign investors and promote exports to ease the cash shortages in Zimbabwe.

So far that advice seems to be falling on deaf ears and the country continues to import most food including bottled water, sweets, and toothpicks. As part of measures to curb that, the governor of the Reserve Bank of Zimbabwe, John Mangudya, has introduced what he calls a “priority list” on what has to be approved to be imported.

Despite intimidation and death threats, the SABC 8 on Sunday reiterated their determination to go ahead with a Constitutional Court case probing possible censorship at the national broadcaster.

“While the journalists are concerned about their safety, they remain resolute and determined to persist with the case,” said their lawyer, Aslam Moosajee.

Moosajee has previously been sent text messages containing death threats against certain of the journalists if they do not drop an upcoming Constitutional Court case asking for measures to protect the national broadcaster’s newsroom against censorship or interference.

One of the texts sent to Moosajee targets radio producer Suna Venter, declaring, “We will double what sbc8 backers are paying advice them to drop the case friday or the girl dies call this nr to stop it [sic].”

On Sunday, Moosajee, who is acting pro bono in representing the journalists, retorted that no amount of money could “lure” him to drop the case.

“I believe in their cause,” he said.

The SABC came in for criticism in July when it fired Venter, Foeta Krige, Krivani Pillay, Thandeka Gqubule, Busisiwe Ntuli, Lukhanyo Calata, Vuyo Mvoko and Jacques Steenkamp for speaking out against the broadcaster’s policy to not show footage of violent protests.

Subsequently the eight journalists, who were rehired by the SABC in September following a lengthy Labour Court battle, filed papers at the Constitutional Court asking for the National Assembly to institute an inquiry into the various issues plaguing the broadcaster, including their firings.

Intimidation

This weekend, the Sunday Times reported on various incidents of intimidation and death threats – especially targeting Venter, but also affecting certain others.

The Democratic Alliance has since said it will ask Acting National Police Commissioner, Khomotso Phahlane to give the journalists police protection until the court case is finalised.

Detailing the incidents on Sunday, radio producer Foeta Krige confirmed that his caretaker was held up during a house robbery.

According to the Sunday Times, TV producer Busisiwe Ntuli’s home has also been broken into and someone tried to ram into her car while she was in it. Ntuli declined to comment to News24.

Speaking to News24, Venter, who remains in hiding, confirmed the incidents reported by the Sunday newspaper. Acts of intimidation began with threatening messages sent in August and a break-in in her house in September. However, since October, the number of incidents has increased significantly.

These include being shot at with ceramic bullets while driving home at night, following which a text message was sent saying, “Next time, won’t miss”. In another incident, electric wires on her brakes were cut. She has also been the victim of tyre blowouts and punctured tyres.

Most recently, this Saturday, her car – parked at her secret location – was broken into and goods disturbed, but nothing was taken.

Nevertheless, Venter reiterated that she would not drop out of the court case.

“When [the incidents of intimidation] happen, you are scared for that moment – but if you look at the overall picture, I have to tell myself I will not allow them to terrorise me. And I will not.”

Won’t back down

Krige echoed Venter’s sentiments.

“We will never back down.”

He said all the journalists wanted was for the newsroom at the SABC not be subjected to interference.

A police task team has been established, headed by Lieutenant Colonel Gert Grobler.

Gauteng police spokesperson Lungelo Dlamini confirmed the investigation was ongoing.

“No one has been arrested,” he said.

Venter said that those behind the intimidation seemed “quite sophisticated” in their tactics.

She said, for example, that the shots angled at her windscreen during one incident were accurately aimed, appearing to have been fired by someone well-trained. She said she was saved because the shooter was too far away and she had protective film over her windows.

Krige also said that the case was made complicated by the fact that those involved clearly has certain professional skills such as being able to intercept emails.

The Sunday Times cited unnamed sources as saying the text messages had been identified as coming from the cellphone tower nearest the SABC headquarters in Auckland Park.

Krige suggest one way to determine who was behind the attacks would be to question who might feel the Constitutional Case was detrimental to their interests.

“I question their motives… why be frightened by newsrooms being independent?”

DOCUMENT

On Wednesday 2 November 2016, a report entitled ‘State of Capture’ prepared by the former Public Protector, Advocate Thuli Madonsela, was released.

The report did not make any findings. Instead it made what were termed “observations”, based, (the report acknowledged), on an investigation not completed. It deferred a proper investigation to a commission of inquiry to be established at a future date. The outgoing Public Protector has directed the President – in whom the Constitution vests the power to appoint commissions of inquiry – to appoint one, and further directed the Chief Justice to designate a particular judge to head it.

It is a matter for regret that the report was prepared in haste to meet a deadline related to the Public Protector’s own departure from office. That her office continues, as all State offices do, and that any uncompleted function is completed by a successor in that office, was not a consideration in the report.

“Observations” made in the report relating to, inter alia, my conduct, are in material respects inaccurate, based on part-facts or simply unfounded. What the previous Public Protector has done is not herself to investigate to completion, or to allow her office to complete what she initiated too late to complete herself. She has also determined on recording “observations” without, in crucial respects, putting intended harmful disclosures to me first – as she was by law required to do. She has effectively deferred my constitutional right to be heard to a future date, and to a further body, which she has ordered others to assemble.

If such a body is indeed by law to be assembled, and carry out the task, it will not be for some time -as recent experience indicates.

In the meanwhile harm is done – to the institution it has been my honour to lead in the most difficult times, to its reputation and to my own. I say nothing of the harm, too, to others close to me.

I am confident that, when the time comes, I will be able to show that I have done nothing wrong and that my name will be cleared. I shall dedicate myself to showing that an injustice has been done by the precipitate delivery of ‘observations’, following an incomplete investigation, which the former Public Protector has drawn back from calling ‘findings’. The truth will out.

I have, in the interests of good corporate governance, decided to leave my employ at Eskom from 1 January 2017. I do so voluntarily: indeed, I wish to pay tribute to the unfailing support I have had since I took up office from the chairman, the Board and with those with whom it has been my privilege to work. Together we brought Eskom back from the brink.

I will take time off to reflect before I decide on my next career move.

I wish to reiterate that this act is not an admission of wrongdoing on my part. It is rather what I feel to be the correct thing to do in the interests of the company and good corporate governance.

I wish to thank the shareholder representative, Ms Lynn Brown, the board, the executive team and all Eskom employees for their hard work and guidance in steering the company out of very difficult times during the twenty months that I was privileged to be the Group Chief Executive.

I go now, because it is in the interests of Eskom and the public it serves, that I do so.