By Sharyn Macnamara
PMC is unique. The company’s legacy, its community and environment, its operations, together with the innovation that the PMC family and its leadership drive across all of these elements shine through in the company’s internal employee initiatives and commitment to Zero Harm, its latest flagship projects and technological feats – all driving enormous production targets that are aimed at ensuring current and future business sustainability. In the first of a series of articles, African Mining introduces PMC and its ethos to our readers and unpacks the legacy and values that underpin PMC’s latest modern mining achievements.
All images supplied by Palabora Mining Company (PMC)
Palabora Copper (Pty) Ltd, a subsidiary of the Palabora Mining Company (PMC) and a leading major copper mine, is located in the small town of Phalaborwa situated in the north-eastern part of the Limpopo province, within the Mopani District in South Africa. This entity finds itself adjacent to the world- renowned Kruger National Park, and here wildlife, people and machinery co-exist in harmony. Over a period of 69 years, the mine has built a solid and enduring legacy inextricably intertwined with the growth and development of the town of Phalaborwa. PMC is not just a mine, delivering critical refined copper, vermiculite and magnetite to South Africa and the world. It is an economic powerhouse of innovation and has had a strong hand in driving and contributing towards the sustainability of the local economy of Phalaborwa since 1956. Today, the company’s operations continue to push the envelope when it comes to transformation, responsible and safe mining practices, sustainably supporting the thriving mining ecosystem in the area. This surface and underground mining operation’s legacy and future is intrinsically connected with the eight communities and the habitat they share with the fauna and flora of the area that host them. Neither the communities nor the operations that drive the local economy can function in isolation. With the Kruger National Park on their doorstep, theirs is a ternary relationship built over decades.
Meandering a shared mining memoire
The name “Phalaborwa” was born centuries ago when the Ba-Phalaborwa people settled in the area in the 1800s. Its meaning – “better than the south” – indicates the area’s perceived mineral wealth and healthier environment. The smelting of copper iron rendering copper of remarkable purity was produced in the Phalaborwa area as early as the 8th century. It was this prospect that offered a new start for the Ba-Phalaborwa tribe who moved in from the North to mine and trade in iron ore, evidenced by relics of works and clay smelting ovens found in the area.1
This was the beginning of a town with a history steeped in mining, from early European attempts in the 1900s to mine copper and apatite used as fertiliser (unsuccessful due to the high cost of transport to access the remote area) to the discovery of uranium in the 1950s. Finally the discovery of copper was made prompted by South African geologist Dr Hans Merensky’s prospecting expedition searching for economically viable deposits of apatite in the foskorite rocks in 1946.2
PMC Towers
A decade later, Rio Tinto Zinc and Newmont Mining joined forces to form the Palabora Mining Company and the result was copper production from Africa’s largest manmade hole and the largest open pit mine in the world. The surface mine today boasts a circumference of over 5km and a diameter of nearly 1 900m – almost six times the size of Kimberley’s famous Big Hole.
From the 1960s to the 80s, the open-pit copper mine and associated processing plants have produced over 2.7 million tons of copper3 supplying most of South Africa’s copper needs, while the balance was exported. In the future, the company aims to produce around 60 000 tonnes of refined copper per annum once current expansion plans are complete, and operations are in full production.
In 2013, the Industrial Development Corporation of South Africa Ltd (IDC) and the Hebei Iron and Steel Group (HBIS Group) took ownership of PMC with 10% belonging to the Leolo Trust, 10% to the Palabora Employee Trust and 6% to the Strategic Empowerment Local Business Trust.4 The company now focusses on the production of copper rod, vermiculite, magnetite with anode slimes, nickel sulphate and sulfuric acid as byproducts.
Today, PMC has developed a USD410-million underground mine with a production capacity of 30 000 tonnes of ore per day, while an onsite vermiculite deposit is mined and processed for sale globally. The company now operates a large block cave copper mine and smelter complex. Production of continuous cast rod for the domestic market and cathodes for export at the refinery have been put on hold recently to allow for the retrofit of the smelter. Other useful byproduct metals and minerals include zirconium chemicals, magnetite and nickel sulphate as well as small quantities of gold, silver and platinum. Strong future-focussed leadership and a robust capital investment programme has extended the Life of Mine (LOM) by an additional 15 years to 2040, thereby ensuring sustainable operations with immeasurable benefits for the surrounding communities as well as the greater good of the economy of South Africa.
The surface mine today boasts a circumference of over 5km and a diameter of nearly 1 900m – almost six times the size of Kimberley’s famous Big Hole
The PMC differentiator
Phalaborwa town relies heavily on the sustainability of PMC, and PMC understands the importance of responsible mining and a quest for Zero Harm for sustainability. Aidan Schoonbee, executive manager for PMC’s Lift II Projects, Concentrator and Vent Shaft, explains, “PMC is unique in that we are not part of a mining province like the platinum mines or the gold mines in South Africa. Aside from our longstanding neighbour, phosphate producer, Foskor – we stand alone in this area as one of South Africa’s ‘grand old’ copper mines and only producer of refined copper built on the back of the Phalaborwa Igneous Complex.”
As with all worthwhile mining ventures, it all starts with the fruits of the soil – nowhere else is copper known to occur in carbonitites as is the case at PMC. The Phalaborwa Igneous Complex was created by a series of volcanic eruptions over a period of millions of years. This unique, rich body of minerals was formed when molten matter intruded into granite along three large and numerous smaller volcanic pipes. PMC mines this rare ore body outcropping known as Loolekop which contains a variety of minerals – copper, phosphates, magnetite, uranium, zirconium, nickel, gold, silver, platinum and palladium, while two additional volcanic pipes nearby contain vermiculite and phosphate.
The PMC family – people of the soil
The extraordinary geology mined by PMC, its intriguing mining legacy and the resultant symbiotic relationship between mine and community, together with their extended beneficial relationship with the fauna and flora of the Kruger National Park are all underpinned by the PMC values and culture that have developed over the years.
PMC’s Lift II mine extension project has showcased several industry firsts and best practices underpinned by engineering the ‘Palabora way’ to safeguard the company’s
most precious asset, its employees.
PMC has built a strong bond with both its natural surroundings and the people that make up the ecosystem flourishing in the district. “We have initiated wildlife management programs to minimise the impact of our operations on the environment. Through decades of positive engagement with our communities, we have developed Palabora Link, a sound Socio Economic Development programme which is a condition for our mining as a social license to operate. This works hand in hand with PMC’s preferential procurement for local business as well as with initiatives which assist the growth of local Small and Micro Enterprises as they achieve their sustainability through acquisition of assets,” says Abby Ledwaba, manager of Employee Relations and Communications.
“PMC’s capacitation of the community through bursaries, skills development and employment have built the company’s reputation as the employer of choice in the district and have earned the company seven years of Top Employer accolades,” notes Zani Kutumela, the custodian of PR and communications for PMC. The bursary programme has been particularly successful in equipping candidates with technical qualifications for absorption into the business, and PMC is a leader in the appointment and development of women in the mining industry.
Values like ‘Integrity, Courage, Care, Innovation, Teamwork and Accountability’ are core to the mine’s vision of being a leader in the mining industry through performance and its mission to safely and profitably extract and convert minerals and metal from the PMC ore body. “Our 5 000 employees including contractors – 90% being locals from the surrounding eight communities – are the heart and the soul that drive the company’s operational goals. This year, our CEO, Mr Wei has mandated the production of 4 million tons of 65% magnetite (fe), with the dispatch of 10 million tons – and our teams haver sprung into action,” enthuses Kutumela.
Future-fit innovation – the ‘Palabora way’
The company’s divisions are driving innovation hard to make this mandate a reality across several flagship capital investment projects.
PMC’s Lift II mine extension project is one of these initiatives and has showcased several industry firsts and best practices underpinned by engineering the ‘Palabora way’ to safeguard the company’s most precious asset – the PMC workforce. Bearing testament to this, the project celebrated one million fatality free hours in January 2024. Schoonbee says, “This project is a shining example of how collaboration, expertise and a steadfast commitment to safety can lead to extraordinary achievements.” To date on this project, PMC and its partners have ensured that the Khumbul’ekhaya slogan is a reality for a workforce that stands protected by its leadership, proving that Zero Harm is possible – #HLAYISEKA.
Today, PMC has developed a USD410-million underground mine with a production capacity of 30 000 tonnes of ore per day.
PMC’s retrofit smelter is also well on its way to commissioning, together with a further five VIP magnetite projects in various stages of development. These projects are firmly grounded in sustainable mining practice with the refurbishing and modernising of otherwise obsolete technology to improve efficiencies. These are driven by transformational leadership within the different portfolios at the mine.
Schoonbee highlights, “PMC is working hard to extend our LOM to ensure a livelihood for generations to come in our local communities. A future-fit PMC will ensure the survival of our town. It is simple – if we do not mine responsibly and sustainably, PMC will have failed, and Phalaborwa may end up as just another ghost town.”
PMC has earned the support of its employees and host communities through its operational ethos. This is built on structured corporate guidelines that uphold human rights and corporate governance; by driving Zero Harm and providing a safe and healthy work environment for all employees and contractors; and by practicing sound environmental management to ensure the sustainable biodiversity of the natural environment within which it operates; by acknowledging and respecting stakeholder interests and
“In 2024 PMC invested R51.7-million in community development. Much of the infrastructure in our town was established and funded by the mine, like the construction of key roads and the refurbishment of schools. We are committed to advancing transformation. In fact, we see corporate citizenry initiatives well entwined with the success and sustainability of our mining business,” says Ledwaba.
PMC is inextricably interwoven with the town of Phalaborwa – its history, its current reality and its future. African Mining invites you to follow this good news mining story, as we delve more deeply into the PMC’s innovation and sustainability journey in future articles.
| Acknowledgement
African Mining, incorporating Mining Mirror thanks the PMC team – and in particular Aidan Schoonbee, Abby Ledwaba and Zani Kutumela – for sharing the company’s legacy, its intimate relationship with its people and its habitat, and for their fearless drive to innovate for posterity’s sake. Their passion for mining, community and our beautiful world shines through the headwinds currently pounding the mining industry – the backbone of global economies essential to the survival of the human race. |
References:
- https://www.britannica.com/place/Phalaborwa
- https://southafrica.co.za/phalaborwa-history.html
- https://www.palabora.com/
- The government has through the Minerals and Petroleum Resources Development Act (MPRDA) and the Mining Charter, required all mining companies to empower historically disadvantaged persons (HDSAs) to acquire 26% ownership equity value to ensure that they attain partial control of the assets.