Browsing by Author "Burger, Martin Dewald"
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- ItemEvaluating different value adding processing systems for bamboo developments(Stellenbosch : Stellenbosch University, 2018-03) Burger, Martin Dewald; Oosthuizen, G. A.; Stellenbosch University. Faculty of Engineering. Dept. of Industrial Engineering.ENGLISH ABSTRACT: Mining contributed significantly to South Africa’s economic growth, but with the closure of mining operations several challenges arise. These challenges include land remediation, mine rehabilitation and dust control. This in combination with waste water and tailings management creates several environmental challenges. At the same time the socio-economic challenges and external obligations from government make the sustainability of mining very difficult. As these natural resources are depleted, it is critical to investigate ways to transform current liabilities into sustainable assets that can create shared value for both the mining company and community in which it operates. This research study attempts to address these challenges by investigating the possible opportunities when planting Bamboo on these closed mining sites to generate new economic activities, rehabilitate the soil and create livelihoods for the families left behind by terminated mining operations. In this study, possible applications or value-adding systems are explored to create sustainable value by planting bamboo on old mine sites and manufacture products from this bamboo. The project at hand considers a development of 1000 hectares. This is the size of the final development and it might take place in phases. The first objective was to understand the value creation possibilities for bamboo applications. Several applications were considered and with the needed advice from the industry, it was decided to investigate four applications or value-adding systems in detail. This included Charcoal, Biochar, Activated Carbon and Laminated Bamboo Board. The second objective was to identify key elements to consider and to understand the bamboo supply capacity for the selected defined project. Seven possible available biomass scenarios were established. These scenarios made provision for different yields and development phases. The third goal was to develop a financial study estimate model to validate the different scenarios. This led to the fourth goal which was to validate the financial study estimate model with selected bamboo value creation systems based on the key elements and supply capacity and to identify feasible solutions. The seven different biomass scenarios in combination with the four different value systems, meant that there were a total of 28 different scenarios. Quotations obtained from industry were configured by means of the Lang factor method to comply with all the scenarios. Thereafter, a feasibility study was conducted by using the financial model to gain an estimate with a detail level referred to as a study estimate. Seven of the scenarios had a positive NPV within the 10-year project evaluation period. In the feasibility study, the Activated Carbon 100 000 ton scenario had the highest NPV with an amount of R729 472 351.10 and it breaks even in year 2. The 100 000 ton Laminated Board scenario had the second highest NPV with a value of R639 777 550.44, it also broke even in year 2. The latter scenario had a much higher Capex and Opex. The final objective was to conduct a further risk analysis on the seven feasible solutions and to determine the best fit for the set criteria (which included a sustainable development criteria for the project.) The risk analysis included a sensitivity analysis which was done by the means of a Monte Carlo simulation. The inputs that were varied in this analysis included the cost of raw material, product selling price, labour cost, interest rate, production efficiency and the fixed capital cost. The two scenarios that performed the best in the feasibility analysis also performed the best in the risk analysis. The Activated Carbon 100 000 ton scenario which had the highest positive NPV in the feasibility analysis had a probability of 92.5 % to have positive NPV with a mean NPV of R425 018 426.87. The 100 000 ton Laminated Board scenario had a higher mean NPV of R1600 million and a higher probability of 94.5% to have a positive NPV. The Laminated Board scenario performed the best in the sustainable development index creating 346 jobs, 265 more jobs than the 100 000 ton Activated Carbon scenario. It was concluded that a laminated board value creation system with access to 100 000 ton of raw bamboo per annum is the best option for the given 1000 ha bamboo project.