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A blast a day turns the Buffels team into a winner

In the December 1995 quarter, Buffels lost R8–million, having incurred losses for the previous 18 months. But by March it turned in R2,7–million profit, R13,3–million in June and R26,4–million by September. More of the same is forecast for the current three months, according to chairman Roger Kebble. "It is even in a position to pay dividends," says Kebble, adding that this does not mean it will definitely do so: cash might be called for in respect of the mine's future.

Buffels was sold out of the Gengold stable as part of an all or nothing offer for four mines by Randgold - neighbour Stilfontein, Grootvlei on the East Rand basin, and Unisel which went into Harmony gold mine.

Not publicised at the time of the deal was that Randgold bid only for Grootvlei and Unisel: Gengold sold them on condition that Randgold also buy Buffels and Stils.

Goodwin, who has 40 years in the mining industry, retired from Gengold in September 1995. He approached Kebble, a lifelong friend, about a job at Randgold. "I have to admit that I did not ask for Buffels," notes Goodwin, "but I'm really pleased about how things are going."

The previous Gengold management team is virtually unchanged. "The team has proved itself as good as, if not better than any in the industry," says Goodwin, "because it is allowed the opportunity of securing the mine's destiny."

His method is simple: everyone on the mine knows that they have to blast every face every day. While this sounds obvious, the mining industry is lucky to blast each stope face once in two days. Buffels has achieved a 97% success rate - and the miners are rewarded with a bonus every single week if they blast every day.

"Every person on the mine knows that they are there to help achieve a blast a day. If there isn't a blast, there is a minute's silence! Everybody knows about it, and I want to know why. It has almost become acceptable in the mining industry that an interruption to the air supply, or the water, or the power are reasonable excuses for not blasting, but not at Buffelsfontein. We can't afford it."

Goodwin acknowledges the effort made in establishing mineable face at Buffels – there are few big blocks of unmined ground left but what can be found is reliably payable. His rule never changes: a blast a day keeps the mine manager happy, but not away. A man who despises meetings, Goodwin goes underground at any hour of the day or night to see what is going on. "I lead from the scrum."

The next most important financial factor is to get a quality blast. "Left to themselves, drillers sit in one place and fan the holes," says Goodwin, "which limits the average blast to less than half a metre when we should be achieving a metre. But if properly supervised, the drillers put in decent holes. The blasts are managed, stoping width is controlled, dilution cut down and grade maintained ."

Goodwin makes it sound simple, but admits it is not. "There is some sweating, but we are getting results. We are actually having great fun."

A share incentive scheme has been introduced and is being extended further down the work hierarchy. Goodwin is relieved, because the risk of losing people to the neighbouring mines such as Harties or long-life giant Vaal Reefs diminishes every day the share price climbs.

"Buffels has a future now. It's difficult to say for how long we can mine underground, but there is 20 years worth of rock already on the surface which can be treated in the low–grade Multigold plant," says Goodwin. A second–hand mill has been bought to provide a dedicated circuit for the underground ore.

Gold shares are seldom in fashion as investments these days, but market–related factors aside, the upside for Buffelsfontein far outweighs the down.

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