Africa DownUnder Conference Stock Market Press Releases and Company Profile

Adelaide, Sep 8, 2006 AEST (ABN Newswire) - Africa's emergence as a mining powerhouse still faces basic logistical challenges to stem the loss of investment dollars to main rival, South America, according to diverse explorer and miner, GRD Minproc Limited.

One of the largest hurdles is Africa's 53 countries - and therefore 53 Mines Ministers - compared to just 16 for South America.

Addressing the Paydirt Media 2006 Africa Downunder Conference in Perth today, GRD Minproc's Business Development Executive, Mr Sean Heathcote, warned Australian miners to prepare their projects well to minimise serious disruption to project scheduling.

"The hurdles are not insurmountable but if not given fair consideration, will easily derail any mine development schedule," Mr Heathcote said.

"The chain of events that can throw your plans into turmoil is extensive but in many ways, very basic as well," Mr Heathcote said.

"Because of the country's size, large items of mine equipment have to be shipped long distances to site, generating accident-prone abnormal size loads.

"There is a finite number of ports of sufficient type, size, water depth, hoist facilities and break bulk capacity to handle the nature of loads associated with importing mining machinery.

"Once it leaves the port, a consignment faces a network of exceptionally poor road conditions. The rail network is questionable, requires locomotive changes at every border and has a performance record in the past three years which shows only a marginal improvement in the frequency of derailments and broken rail.

"River bridges are not sufficiently high, wide or strong enough for major equipment items, there are insufficient staff numbers at border checkpoints and border paperwork 'must be perfect'."

Landlines required short telephone calls ahead of line fallout and while mobile telephone networks had improved, there were large gaps in coverage.

To address such issues, Mr Heathcote said Australian mining companies should:

- Design in hard chemical use in processing plants to minimise transport of liquid chemicals

- Encourage smaller bridge sections requiring few major diversions if faulty

- Work much closer with port authorities on their developments to maximise use of capacity

- Redirect loads away from congested ports

- Decontainerise shipping consignments to smaller semi-trailer loads

- Consolidate site storage to minimise transport costs

- Employ GPS to determine the best road route options, and

- Consolidate the needs of several mining clients during decision making on infrastructure works.

Mr Heathcote warned against any consideration of rail for project construction.

"It is not just feasible to consider these networks for short-term construction logistics, therefore requiring that heavy items of mining plant be moved during the dry season," he said.

Contact

Kevin Skinner
Senior Consultant
FIELD PUBLIC RELATIONS

231 South Road
MILE END SA 5031
Tel: (08) 8234 9555
Fax: (08) 8234 9566
Mob: 0414 822 631
kevin@fieldpr.com.au


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