South Africa dare not fail in securing future demand for its 'incredible' platinum group metals (PGM) endowment, the Hydrogen Economy Discussion heard on Wednesday.

Anglo American Platinum projects and environment executive head Prakashim Moodliar outlined the widespread marketing effort under way to boost PGM demand as well as the hugely positive benefit of adoption of the hydrogen economy.

Moodliar, a keynote presenter along with German Embassy deputy head of mission Enrico Brandt, revealed the considerable work under way to map South Africa's Hydrogen Valley further, while Brandt provided insight into the momentous acceptance of hydrogen in Germany. (Also watch attached Creamer Media video.)

Moreover, Moodliar outlined how the building of the hydrogen economy in South Africa would enable significant job creation, reduce carbon emissions, support social change and drive economic development.

Currently, the bulk of platinum group metals are used in catalytic converters to reduce emissions from internal combustion engines and the shift to battery electric vehicles therefore poses a risk to South Africa's PGMs industry, which employs 172 000 people, making it one of this country's largest private sector employers.

"Considering that every employed person supports an average of ten other people, we dare not fail in securing future demand for this incredible natural endowment.

"The significant growth forecasts for the hydrogen economy will offer significant demand opportunities for metals, including aluminium, copper, iridium, nickel, platinum, palladium, and zinc to support these hydrogen technologies.

"This would include metal for renewable electrical technologies, and the electrolysis for renewable hydrogen, carbon storage for low carbon, nitrogen, or fuel cells using hydrogen for power transport.

"We know that reaching the goals of the Paris agreement to keep the global temperature rise to well below two degrees would mean a quadrupling of mineral requirements for clean energy technologies by 2040," said Moodliar.

A typical battery electrical car for example requires six times more mineral inputs than a conventional internal combustion engine vehicle, with metal supply and investment falling far short of what is needed to reach the Paris Agreement.

A business plan has been submitted to South Africa's State-owned Industrial Development Corporation to secure funding from Germany's KfW development bank for Project Rainbow, which focuses on building a hydrogen freight corridor for trucks and buses.

"Rainbow is also looking at localised manufacture and assembly of vehicles to support building a local supply chain," said Moodliar, who added during the discussion covered by Mining Weekly that Rainbow has been afforded strategic infrastructure project status.

Brandt outlined Germany's commitment to hydrogen as part of its commitment to the Paris Agreement that calls for a fundamental shift away from fossil fuels and towards sustainable alternatives.

"The transition will affect everyone and everything, our way of life, politics and business," Brandt said.

"We're facing the most fundamental transformation of the global economy in our lifetime, comparable to the Industrial Revolution in the past," he added during the event chaired by mining luminary Bernard Swanepoel.

With demand for gold currently off the charts, South Africa has a huge opportunity to recover gold from its surfeit of gold mine dump material at relatively high speed, a mining event in the Golden City heard on Tuesday.

With gold supply only increasing 1.5% to 2% a year worldwide and being constrained, South Africa has the equivalent of half a dozen gold mines in the form of tailings available for turning to positive account.

"I invite you to go and try to buy some gold Krugerrands. Three months delivery, if you're lucky. There's no gold because the central banks are sucking it all up," Shumba Energy cofounder, chairperson and director Alan Clegg told the Coal & Energy Day chaired by mining luminary Bernard Swanepoel. (Also watch attached Creamer Media video.)

"In South Africa, we've got 800-million tons of gold tailings that contain approximately 30-million ounces of recoverable gold, equivalent to six tier 1 gold mines," Clegg highlighted during his presentation, covered by Mining Weekly.

Clegg put the worldwide gold tailings tonnage at 16-billion tons with a recovery potential of 450-million ounces of gold, which also presents an opportunity for South Africa

As South African gold mining has also taken place hand-in-glove with uranium mined as a byproduct, simultaneous recovery of uranium also needs consideration.

"Uranium is coming to the fore again. Very few people realise that until the mid-eighties, South Africa was the biggest supply in the world of uranium and today we have about 120-million to 150-million pounds of uranium in tailings. If the gold mines restart their uranium plants, they can produce uranium as a byproduct, so there's still a strong position for South Africa to re-enter the uranium market.

On an energy return on an energy-invested basis, it is 90% more energy efficient and 90% less capital intensive to process tailings than it is to start a primary mine, not to mention the shorter permitting cycle.

"If you consider technological advancements in process metallurgy today, tailings are a massive store of value," said Clegg, who calculated that it takes 16 to 20 years to find and build a new mine today in most jurisdictions.

TODAY'S GOLD MARKET

The bulk of gold production is in China, which does not export its gold, and other countries are starting to do the same to underwrite their economic futures.

Clegg described the bull market in gold as being decades in the making, extending back to 1971 when former US President Richard Nixon removed the gold standard, a monetary system where a country's paper money had a value directly linked to gold. Nixon did so to address US inflation and to discourage foreign governments from redeeming their dollars for gold.

The Nixon shock led to the end of the Bretton Woods Agreement and the convertibility of US dollars into gold. It is seen as the catalyst for the stagflation of the 1970s as the US dollar devalued.

Owing in large part to the Nixon shock, central banks now have a greater degree of control over their own money, making it easier to manage variables such as interest rates and overall money supply.

"Look at the top ten billionaires. They're buying gold," said Clegg.

Canada-based Lucara Diamond Corp has pushed out the completion date for its underground expansion project (UGP) at the Karowe mine, in Botswana, by a year-and-a-half and increased its capital cost to reach completion by $136-million.

The UGP, which is designed to access the highest value portion of the Karowe orebody and to extend the mine life to at least 2040, will now only be completed by the first half of 2028, instead of the previously anticipated date of the second half of 2026.

As a result, the forecast of costs to completion increased by 25% to $683-million.

The management update to the UGP schedule and budget, issued on Monday, follows a slower-than-planned ramp-up to expected sinking rates and to account for time incurred to date, as well as for anticipated future grouting programmes.

The grouting took longer than planned, owing to a combination of high-water volumes in the sandstone lithologies between 870 m and 752 m above sea level, combined with technical challenges associated with the transition to main sinking.

"Lucara has made tremendous progress on the Karowe underground expansion project, despite many challenges over the last year as we transitioned into the main sink phase of the underground development. Schedule delays due to longer-than-anticipated grouting activity have impacted the project timeline, however, the grouting methodology selected has proven to be effective in controlling water inflows.

"As we transition out of the sandstones early in the fourth quarter of 2023, we look forward to meeting planned sinking rates," says CEO Eira Thomas.

She also stresses that the project remains technically and economically feasible and that its major shareholder remains supportive of the asset.

In a Lucara statement, Adam Lundin comments that the Karowe expansion remains highly economic, despite the delays incurred. "As Lucara's largest shareholder, we remain fully supportive of the company."

The earnings of Anglo American Platinum (Amplats) for the first half of this year are expected to be sharply down.

Headline earnings and headline earnings per share (HEPS) are likely to decrease by between 65% and 75%. Compared with R26.7-billion in the first half of last year, headline earnings are likely to be between R6.7-billion and R9.4-billion, the company informed the Johannesburg Stock Exchange News Service (SENS) on Monday.

HEPS are expected to decrease to between 2 544c and 3 569c a share compared with 10 140c in the first six months of last year.

Basic earnings per share for the period are likely to decrease by between 65% and 75% compared with the first half of last year, with basic earnings at between R6.6-billion and R9.3-billion, compared with R26.7-billion in the corresponding period of last year.

Compared with 10 125c in the first half of last year, earnings per share are expected at between 2 506c a share and 3 531c a share.

Earnings have decreased for the period largely owing to a decline in revenue as a result of the lower average platinum group metals (PGMs) basket price.

The main contributors to this were declines in the dollar prices of rhodium and palladium. Rhodium was down 47% and palladium 29% lower.

The weakening rand/dollar exchange rate partially mitigated the dollar price impact on the overall rand basket price, which decreased by 15% against the corresponding period last year.

Furthermore, sales volumes from own production, excluding trading, were 12% lower, reflecting lower refined production as a result of the Polokwane smelter needing post-rebuild ramp-up in January.

Also lowering sales volumes from own production were yearly maintenance and asset integrity work at the processing operations, along with the impact of Eskom load-curtailment, which resulted in deferred production of 66 400 oz of PGMs.

Continued inflationary pressure and exchange rate volatility have also led to higher mining and processing costs.

Costs incurred in purchasing of concentrate decreased compared with the first six months of last year owing to lower prices and volumes.

Amplats will release results for the six months ended June 30 on SENS on Monday, July 24, the company stated in a release to Mining Weekly.

Toronto- and New York-listed Platinum Group Metals (PTM) is assessing the economic feasibility of constructing a matte furnace and base metal refinery in South Africa, either with or without partners, to process the concentrate from its Waterberg platinum group metals (PGMs) mining project.

PTM's primary business objective is to advance the Waterberg project to a development and construction decision.

PTM, as the Waterberg project operator, is directed by a technical committee made up of representatives from its joint venture (JV) partners, Impala Platinum, Mnombo Wethu Consultants, Japan Oil, Gas and Metals National Corporation and Hanwa.

A matte furnace and base metal refinery is envisioned as a separate business from the Waterberg JV company that could provide offtake terms to it and possibly to other PGM miners as well.

"Discussions with potential participating partners and investors are ongoing," PTM stated in a release to Mining Weekly.

The company, headed by CEO Frank Hallam, is also assessing the economic feasibility of constructing a matte furnace and base metal refinery outside of South Africa to process Waterberg concentrate.

Working with a potential partner in a jurisdiction with less expensive power and water, PTM has completed a trade-off study which indicates that savings on power and water substantially offset the cost of additional concentrate transportation. Before concentrate could be exported from South Africa, a formal government approval would be required and further studies are underway.

The shallow-resourced Waterberg project, located on the Northern Limb of South Africa's Bushveld Complex, is planned as a mechanised, shallow, decline access palladium, platinum, gold and rhodium mine.

In March, positive results from a completed infill drill and a stage-two budget of $3.6-million, covering the period from April 1 to August 31 next year, is a subcomponent of an approved $21-million work programme.

During the nine-month period ended May 31, PTM incurred a net loss of $4.05-million, which was well below the $7.26-million incurred during the corresponding nine months of last year.

Loss per share for the current period amounted to $0.04, as compared to a loss of $0.08 per share for the nine-month period ended May 31, 2022. Total expenditures on the Waterberg project, before partner reimbursements, for the nine months were $3.5-million.

Mining Weekly Editor Martin Creamer discusses Copper 360’s new mining school that will launch in the Northern Cape; the IDC’s interest in the West Wits Basin project; and the Mogale tailings retreatment project, which will see its official sod-turning take place this month.

The refurbished and rebranded Wits Sibanye-Stillwater Innovation Bridge, which links the east and west campuses of the University of the Witwatersrand (Wits), marks a further sponsorship from diversified mining company Sibanye-Stillwater.

"This investment will be instrumental in assisting postgraduate students and researchers, who are the academic and business leaders of the future, to conduct faculty projects that are expected to have a positive societal impact," Sibanye CEO Neal Froneman said at the unveiling of the refurbished bridge on July 12.

The additional financial commitment from Sibanye will be used for study bursaries, learnerships within its mining operations, graduate internship programmes and staff development within the Wits Faculty of Engineering and the Built Environment (FEBE).

Sibanye has contributed R68.5-million in funding to the university since 2014, with a further R5.5-million committed for 2023 and R50-million in technical equipment donated to the institution.

"The Wits Sibanye-Stillwater Innovation Bridge signifies an enduring investment in human capital and engineering. It serves as a gateway to the future and fostering shared value for the greater good," said Wits principal and vice-chancellor Professor Zeblon Vilakazi.

"Additionally, the bridge speaks to unifying Wits and Sibanye, higher education and the private sector to create a shared vision and talent pipeline that will benefit our economy and our society," he added.

Further, Sibanye was intimately involved in the development of, and continues to support, the Wits DigiMine, which is a digital mining laboratory and a partnership between Sibanye and the Wits Mining Institute, highlighted Froneman.

The DigiMine's primary objective is to complete postgraduate fundamental and applied research into digital technologies that will enable the mine of the future.

"The flow of talent and research and development outcomes from DigiMine is instrumental for Sibanye to realise our ambitions of being a digital-first organisation that harnesses the digital revolution to improve our business performance and create a better environment for our people to thrive.

"The Sibanye-Wits partnership symbolises the fusion of industry and academia, as we join forces to shape the future of mining and create a lasting positive impact on our planet. It is a commitment to the shared values of excellence, integrity and collaboration," he added.

"As a result of the DigiMine partnership, we are proud that 57 undergraduate, ten PhD and 27 MSc students have graduated through our support. Currently, there are four PhD and six MSc students in the process of completing their studies."

During the past decade, Sibanye has enabled 585 students to study at Wits by providing bursaries and allowances amounting to R19.4-million, he pointed out.

"Sibanye's support for staff development in the FEBE has revolutionised the digital landscape in mining engineering," noted Vilakazi.

"The flow of talent and research from the School of Mining Engineering, the Wits Mining Institute and the Sibanye-Stillwater DigiMine, among others, has exceeded industry expectations. Faculty and professional staff now operate in an environment that nurtures academic excellence, producing exceptional students who meet and surpass industry requirements," he emphasised.

Wits and Sibanye have walked the research and development path together. These donations and investments have not only contributed to the world-class infrastructure and academic facilities at Wits, but also have enabled many learners from diverse backgrounds to pursue careers in mining and engineering, said Wits FEBE dean Professor Thokozani Majozi.

"This ensures that academia maintains a pipeline of academically excellent researchers, postdoctoral academics, and professionals who are fit for purpose in the industry," he highlighted.

In the ever-evolving world, where the boundaries of innovation and progress are continually pushed, Sibanye is committed...

Northern Cape copper mining and marketing company Copper 360 is launching a mining school in the Northern Cape, with its eye on how the highly successful Camborne School of Mines in the UK does things.

The mining school idea arose during a discussion at a conference set up by the Department of Minerals Resources and Energy.

One of the speakers asked the professor hosting the session, 'why don't you start a school of mining like the Camborne School of Mines' and this is what is now being done, Copper 360 CEO Jan Nelson told Mining Weekly in a Zoom interview. (Also watch attached Creamer Media video.)

Interestingly, when early mining development took place in South Africa, it was Cornish mineworkers who came across from Cornwall to mine here initially, and Cornwall is where the Camborne School of Mines was established in 1888.

Mining Weekly: When will classes begin?

Nelson: Within the next two to four weeks.

Skills development, first and foremost, is Copper 360's immediate target, along with helping to reduce youth unemployment.

"We understand we're not initially going to train mining engineers and confer degrees and diplomas. That's not what we're trying to do. There are good institutions for that.

"But it's the category of people below that, who do not have a skill or a job and, and there's such a lot of opportunity in the mining sector for those people, and that's what we want to highlight.

"This is about transferring knowledge and skills within a short period of time. As an example, you can train somebody as a sampler within three or four months with a certificate, and then that person's got value," said Nelson.

"We won't then have the frustration internally of absorbing a person and then having to train that person. It will be done at the school and that person then can also go out and go and look for a job but he or she has then got a skill that they can use in the industry. We're targeting those types of jobs between grade 12 and what you would find in a diploma or a degree," Nelson explained.

Why do you think that Northern Cape mining has the longevity to host education?

First and foremost, our own activity tells us that this is the next metal province in terms of copper development, and we've got some spectacular drill results that we'll announce soon that show us that there are big copper deposits. Then there is manganese, iron-ore, lithium, cobalt and huge renewable energy potential and the proposed new Boegoebaai harbour is also going to be developed and built in the province. This is on the way to becoming South Africa's next major economic centre and it's because of all the minerals we have here, all the activity that's going on, and all the investment we see happening here.

How will the school be funded?

Initially, we will fund the school as part of our social labour and development plan in the community in terms of our mining right. But we're talking to third parties, such as fund managers and some of our suppliers and we're inviting other mining companies to take hands with us and invest because this can also produce skillsets for other companies in our area. I think everybody should come to the party because skills development is one of the most critical issues in our country.

Will people have to be from the Northern Cape to attend?

Our first target is the people in the Northern Cape province but people can come from other areas and we will make information available on our website where people can follow a link and can apply and send their details.

Concordia town in Namakwa district municipality has been selected as the location for the mining school, which will begin with 40 to 50 students and then build up.

COPPER WORTH R560-BILLION

Fast-moving Copper 360, which was formed in November last year following a reverse takeover of copper producer Big Tree Copper and copper miner SHiP Copper, has more than two-million tonnes of copper at its 12 mines, which is estimated to be worth R560-billion.

The Rietberg un...

South Africa’s State-owned Industrial Development Corporation (IDC) has issued a written expression of interest and indicative funding terms in connection with the financing of Qala Shallows, which form part of the Witwatersrand Basin Project of West Wits Mining.

A proposed IDC debt facility of R300-million ($15.9-million) for development capital for the project aligns with customary conditions for loan facilities and showcases the IDC's confidence in the Qala Shallows gold project, Australian Stock Exchange-listed West Wits stated in a July 11 media release.

“This is a testament to the immense potential and confidence in our vision for the Witwatersrand Basin Project,” West Wits chairperson Michael Quinert stated in a release to Mining Weekly.

The Witwatersrand Basin Project is described as a 4.28-million-ounce gold project at 4.58 g/t in a largely underground geological formation.

“We can now proceed to expedite the due diligence process, secure final approval, and embark on a transformative journey. This milestone validates our unwavering commitment to growth, innovation, and sustainable success," Quinert added.

Funding on the terms indicated by the IDC would provide the foundation for the financing of the entire development plan as outlined in the definitive feasibility study (DFS).

Initial funds would be for mobilising the mining contractor and acquiring essential equipment to initiate operations, enabling the West Wits team to establish a 30 000 t ore stockpile and facilitating delivery of 15 000 t a month to Sibanye-Stillwater’s plant.

Within a timeline of six to eight months from commencement of production, the project will generate revenues from gold production, the West Wits release stated.

A mine build-up towards supporting steady-state production of 5 000 oz of gold a month is targeted.

Qala Shallows, the first stage of the Witwatersrand Basin Project, is focused on the development of the Kimberley Reef. This is one of three reef packages that form part of West Wits’ mining right area in the Witwatersrand basin, the other two being Bird reef and Main reef.

The combination of the existing infrastructure and accessible shallow mineral resources allows access for production on a fast-tracked timeframe relative to most global opportunities for underground gold mining.

West Wits commenced early works at Qala Shallows in September 2021. Information gathered on underground inspections has advanced knowledge of the orebody and motivated a review and update of the DFS in 2022 and the further update due for release soon. The early works successfully delivered surface infrastructure and refurbishment of historical underground workings.

In October 2022, West Wits secured a toll treatment agreement with Sibanye-Stillwater’s subsidiary. A state of operational readiness continues to be maintained at the Qala Shallows project, which will enable mining operations to recommence once project finance is secured.

Bara Consulting is reportedly conducting a review and update of the Qala Shallows DFS.

The market for critical minerals used in electric vehicles, solar panels and wind turbines has doubled over the past five years, reaching $320-billion in 2022, and is expected to continue to growth strongly amid record deployments of clean energy technologies such as solar and batteries.

The International Energy Agency’s (IEA’s) inaugural ‘Critical Minerals Market Review’ shows that, from 2017 to 2022, the energy sector has been the main factor behind a tripling in overall demand for lithium, as well as the 70% jump in demand for cobalt and the 40% rise in nickel demand.

“As a result, energy transition minerals, which used to be a small segment of the market, are now moving to centre stage in the mining and metals industry,” the report states.

The market has responded, with investment in critical mineral development rising 30% last year, led by lithium with a 50% jump in investments.

Likewise, exploration spending rose by 20% in 2022, again driven by record growth in lithium exploration, particularly in Canada and Australia where year-on-year growth of 40% was recorded.

After a surge in 2021 and 2022, the IEA says many critical mineral prices started to moderate in 2023, albeit while remaining above their historical averages.

Nevertheless, IEA executive director Fatih Birol warns that far more needs to be done to ensure supply chains for critical minerals, such as lithium, cobalt, nickel and copper as well as platinum, manganese and various rare-earth minerals, are secure and sustainable.

There is also a need, the report argues, to diversify the sources of supply away from their current concentration in a handful of countries, with the Democratic Republic of Congo dominating cobalt supply, China holding half of planned lithium chemical plants and Indonesia representing nearly 90% of planned nickel refining facilities.

The report also cautions that any project delays and technology-specific shortfalls could undermine both the pace and cost of the transition to those energy technologies needed by 2030 to limit global warming to 1.5 °C.

The IEA, which began analysing the role of critical minerals in the energy transition in 2021 and subsequently received a mandate from its member governments to track developments, has also launched an interactive online tool to improve visibility of market dynamics.

The IEA Critical Minerals Data Explorer currently provides users with access to the agency’s demand projections under various scenarios and technology trends and supply-side information will be added in future updates.

The IEA is also preparing to host an international critical minerals summit in Paris, France, on September 28.