Gold mining company AngloGold Ashanti on Wednesday released a carbon emissions reduction target that aims to achieve a 30% absolute reduction in its Scope 1 and 2 greenhouse gas (GHG) emissions by 2030 through a combination of renewable energy projects, fleet electrification and lower-emission power sources.

The Johannesburg- and New York-listed company, which has reduced its absolute GHG emissions by more than two-thirds since 2007, is committed to achieving net zero emissions by 2050.

The targeted reduction, from a 2021 baseline of 1.4-million tonnes of carbon dioxide equivalent, aims to see emissions from the company’s activities diminish to about one-million tonnes by the end of the decade.

When growth projects are factored in, including those in Nevada and Colombia, AngloGold Ashanti is targeting a 46% reduction in emissions by the end of the decade.

Scope 1 covers emissions from within the mine site, while Scope 2 covers indirect emissions from the purchase of electricity from third-party providers.

The capital cost required to achieve these reductions over the coming eight years is anticipated to be about $1.1-billion, of which $350-million will be funded over that period by AngloGold and the remaining $750-million through third-party funding, including from providers of renewable energy infrastructure. The company plans in the coming weeks to initiate a process to secure a green funding facility of $250-million to $300-million to finance its portion of these decarbonisation initiatives across its business.

“We have a clear pathway to achieve our target by 2030, when we expect to have lowered our overall emissions by almost a third,” said AngloGold CEO Alberto Calderon in a release to Mining Weekly.

“This ensures we continue to do our part in reducing our carbon footprint, while also improving the value of our business,” Calderon added.

REDUCTIONS FROM ALL BUSINESS UNITS

The targeted reductions incorporate initiatives at each business unit including the introduction of renewable energy, cleaner grid power and partial fleet electrification.

Approximately 60% of the planned emissions reductions will come from large renewable energy projects including wind and solar projects at the company’s Australian operations and solar-power plants at both Siguiri in Guinea and the Iduapriem and Obuasi operations in Ghana.

In addition, a prefeasibility study has commenced at the Cuiaba mine in Brazil to confirm the benefits of replacing some mobile fleet with battery electric vehicles (BEVs).

AngloGold will also be working with Sandvik to trial underground mining’s largest-capacity BEV truck at Sunrise Dam.

The viability of a wind farm at Cerro Vanguardia in Argentina is also being investigated. The vast majority of these projects are expected to be net present value-positive adding value to its business by reducing energy costs and improving energy security.

Two ‘clean grid’ initiatives are already close to completion – a switch from diesel generation at the Geita mine site in Tanzania to the country’s national power grid, which has a high proportion of power sourced from gas and renewables, and the transition to full hydro-grid power in Brazil.

DECARBONISATION STARTED IN 2008

AngloGold’s decarbonisation journey started in 2008 when the company set a long-term target to reduce emissions intensity by 30% from its 2007 base. By 2021 it had achieved a 47% reduction in emissions intensity, through some fuel switching and efficiency improvements but also owing to the closure and divestment of assets.

Last year AngloGold Ashanti’s board approved a new climate change strategy and the company published its inaugural Climate Change Report in line with the guidelines and recommendation of the Task Force on Climate-Related Financial Disclosures.

The company’s 2030 targets are embedded in a Roadmap to Net Zero which focuses on all sources of energy-related emissions, both at the company’s mine sites and from its electric power providers.

As an...

Energy transition company Shell has established a nine-member consortium to create electrification solutions for mining sites.

The electrification offers a shift away from reliance on diesel. (Also watch attached Creamer Media video.)

Coming together with Shell to introduce the mining electrification of off-road vehicles – with the pilot offering including ultrafast charging complemented with renewable electricity generation on-site or through the grid – are Skeleton, Microvast, Stäubli, Carnegie Robotics, Heliox, Spirae, Alliance Automation and Worley.

For hard-to-abate sectors like mining, Shell described the initiative as being critical owing to mobile equipment comprising up to 50% of mining’s carbon dioxide emissions.

By 2030, it is estimated that a battery-electric haulage truck will lower total cost of ownership, involve 20% lower maintenance costs, and incur 40% lower fuel costs than existing diesel trucks, Shell stated in a release to Mining Weekly.

“It is increasingly clear that no one single organisation can solve decarbonisation alone,” said Shell VP sectoral decarbonisation and innovation Grischa Sauerberg.

“The need for a collaborative effort is particularly evident within carbon-intensive industries like mining, where the challenges are great but the opportunities are even greater.

“To overcome these challenges and unlock these opportunities, Shell is helping to bring together some of the sector’s most innovative companies – with electrification proving an important first step towards the shaping of a clear decarbonisation pathway,” Sauerberg added.

The mining electrification solutions for off-road vehicles consist of:

power provisioning and microgrids;

ultrafast charging taking approximately 90 seconds; and

in-vehicle energy storage through a combination of advanced battery and capacitor technologies.

“The challenge of decarbonisation is immense, but not impossible – providing collaboration and innovation go hand in hand at all times. Both of which were on show during the recent Charge On Innovation Challenge, which saw the Shell-led consortium of equipment manufacturers, technology partners, industry experts and Shell Energy – our in-house supplier of renewable power – push the boundaries of what is possible for hard-to-abate sectors like mining. Our winning solutions are proof of how, together, the industry can help power progress by realising the full potential of the technologies available to us – whether that is through electrification, digital tools or low-carbon fuels,” said Sauerberg.

Platinum group metals (PGMs) and chrome co-producer Tharisa, which on Tuesday reported considerably higher production in the 12 months to September 30, has achieved seven fatality-free years.

“We continue to strive to be a zero-harm company,” said Tharisa CEO Phoevos Pouroulis.

Production increased across the board at the flagship Tharisa mine, with improved recoveries at the Vulcan plant.

The Johannesburg- and London-listed Tharisa, in its financial year (FY) 2022, produced 13.6% more PGMs totalling 179 200 oz and 5.1% more chrome totalling 1 582 700 t.

The company’s PGMs basket price in the 12 months was 16.6% down at $2 564/oz but the annual metallurgical grade chrome price 35.7% up at $209/t.

A cash balance of $143.4-million and positive net cash position of $78.6-million is reported ahead of ground breaking at the Karo Platinum growth project in Zimbabwe in December, with inaugural production expected within the next 24 months.

In FY2023, six-element PGMs production is forecast at between 175 000 oz and 185 000 oz and chrome concentrates production at 1.75-million tons to 1.85-million tons.

Pouroulis described FY2022 as being a rewarding year operationally that would translate to a strong set of financial results.

“This operational performance is built on key decisions we made some years ago with the goal of accelerating our growth strategy,” Pouroulis stated in a release to Mining Weekly.

Although PGM prices were trading in the lower half of their 12-month range, Tharisa described them as not retreating as much as anticipated.

The company saw demand-supply fundamentals, particularly for palladium and rhodium, remaining in deficit, and platinum being in deficit within the next 18 months.

It noted that primary supply from South Africa was slowing, owing to a lack of development, rising costs and electricity curtailments, which was affecting deep level mines in particular.

“At the same time, the increasing importance of PGMs for the future of the hydrogen economy underpins our conviction that the fundamentals for these precious metals remain strong,” the company added.

“Chrome prices were volatile during the quarter where they retreated in line with expectation, mostly due to stainless steel and ferrochrome production curtailments in China. Consequently, port inventory rose slightly, albeit off a very low base. Inflationary cost pressures, supply chain constraints and the Covid policy in China remained key macro issues to the market. Towards the end of the quarter, increased demand stimulated a higher price environment as production of steel and alloy normalised.

“Policy announcements from the Party Congress on 16 October 2022 in China relating to the relaxation of Covid policies, and more stimulus packages being announced, would bode well for demand of Tharisa’s chrome concentrates.

“We believe that supply disruptions will mitigate a price retreat, in the face of pricing risks and slowing economies heading towards a recessionary environment,” the company added.

Expanding bulk mineral exports can increase employment to 500 000 direct jobs, up on the 459 000 of last year.

What is generally required is for South Africa to lift its export performance to levels of existing capacity.

The reward is R151-billion worth of extra export revenue.

As measured by delivered tonnages compared with contracted tonnages, in 2022 the opportunity cost for all bulk minerals – iron-ore, coal, chrome, ferrochrome and manganese – was R50-billion.

But this is not opportunity cost, this is opportunity lost, Minerals Council South Africa CEO Roger Baxter highlighted at the Joburg Indaba, covered by Mining Weekly.

Increased taxes from this would be R27-billion. Roughly 19% of every rand earned from exports comes back in tax revenue to the fiscus.

Increasing coal to 91-million tons to meet the existing capacity of the Richards Bay Coal Terminal would add an additional R92-billion.

Taking iron-ore exports to 67-million tons would add another R33-billion to the export total.

Five-billion rand extra would accrue from lifting chrome exports to 15-million tons.

The country could get R18-billion more by exporting four-million tons of ferrochrome – and another R3-billion could be obtained from more manganese going to market.

It all hinges on getting logistics right through a partnership of State-owned companies and the mining companies themselves.

Improved rail and port services are a must because of the major benefits that will accrue.

“We need to make sure that in partnership we are focused on improving our performance and how we compete on that international playing field.

“We can be a lot more globally competitive and we think this is an opportunity for us,” Baxter emphasised.

Why does it take 354 working days for South Africa’s Department of Mineral Resources and Energy (DMRE) to issue a prospecting right which Botswana accomplishes in 40 days?

Mineral Council South Africa CEO Roger Baxter put that rhetorical question to the Joburg Indaba under a broad comment of what South Africa can learn from other countries.

“There’s a lot we can learn,” said Baxter.

Botswana’s status is expected to be elevated still higher with the imminent launch of a new multi-authentication portal, whereas a leading bidder on the DMRE tender for the supply of a new cadastre has opted to withdraw from the tender because it is unable to understand the drivers of the DMRE’s terms of reference.

“We’ve got a lot to do to make sure that we are the best in the world,” said Baxter, who recently returned from Australia, where Australia’s coal and iron-ore models were observed first-hand at a time when coal exports from South Africa have been declining disappointingly as a result of rail issues ­– and Australia’s have been rising despite China banning the Importation of coal from Australia.

Notwithstanding the ban, Australia’s coal export performance has gone from 350-million tons to 395-million tons in five years.

“They press the button, they work with government, they invest in the resources, and they get on with the job. Here we sit and talk, and we need to start focusing on doing things that really make a difference in the grand scheme of things,” said Baxter.

Before Covid hit, South Africa was exporting more than 70-million tons of coal; this year it will be lucky to hit the 50-million-ton mark, at an opportunity cost of R50-billion.

“We need to do something different,” Baxter told the Joburg Indaba covered by Mining Weekly.

The capacity of the coal line is 78-million tons and the capacity of the Richards Bay Coal Terminal (RBCT) is 91-million capacity – and RBCT could be escalated to 110-million tons of export capacity at a capital cost of R1-billion capital and a very short duration of only two months.

The public sector is the custodian of the rail line and the private sector owns RBCT, which highlights the State as once again badly trailing business.

“So, just imagine if we were exporting 110-million tons, basically more than double our export performance. In my view, I think it’s very achievable, but the question we need to ask ourselves here is how are we going to achieve it,” said Baxter.

CHROME, FERROCHROME AND MAPUTO

The slide displayed by Baxter on the exports from South Africa of chrome and ferrochrome again showed the need for South Africa to learn from other countries.

Illustrated were exports through the Port of Maputo in Mozambique being on a sharp rise and the exports through Richards Bay bulk handing facilities in South Africa being in sharp decline.

“I’m not saying Maputo is the nirvana. Maputo is certainly helping,” said Baxter, whereas Richards Bay bulk handing facilities are a major let down.

“We need to try and resolve this particular issue and we’ve been in extensive engagement with Transnet,” Baxter added.

ALL MANGANESE SHOULD BE RAILED

Of the 22-million tons of manganese exported, South Africa is having to transport six-million to seven-million tons by road and railing only 14-million tons to 15-million tons.

“We think it should all be on rail because it is much cheaper by rail. Transnet would get much more benefit, and we’d save a lot more on cost,” said Baxter.

There is also the question of the rail letdown resulting in heavy damages to road infrastructure owing to the mining industry having to resort to the use of road transport to get manganese to port.

“I must tell you, we send a lot of time engaging with the farming community because they don’t like their roads being messed up in some of these areas.

“On the rail side, there is no doubt in our view that pushing on the same piece of string is not going to get the answer that we want. We need to start looking at what models work around the world an...

With effect from early 2023, Al Cook has been announced as the new CEO of De Beers Group and current CEO Bruce Cleaver as co-chairperson.

This follows Cleaver’s decision to step back after six years to a non-executive role, Anglo American CE and De Beers Group chairperson Duncan Wanblad stated in a release to Mining Weekly.

Cook brings more than 25 years of international leadership experience, gained predominantly at BP and Equinor, most recently leading Equinor’s multibillion-dollar global exploration and production business across Africa, the Americas and Europe. He previously led Equinor's global strategy and business development, developing the company’s net zero strategy. Equinor ASA is a Norway-based global energy company.

Wanblad described Cook’s multidisciplinary strategic skillset and strong personal conviction and values as being ideally suited to the nature of De Beers, a global business that spans much of the spectrum from exploration and mining to Bond Street and Madison Avenue.

Cook expressed deep recognition of the importance of De Beers' approach to responsible mining, most notably in Botswana, Namibia and South Africa.

“It is our responsibility to work with the industry on continuing to fulfil the true promise of diamonds,” said Cook, who is described as being passionate about bringing enduring economic, social and environmental value to communities throughout his career.

The diamond industry in general, and De Beers Group in particular, have a hugely exciting future ahead, said Cleaver, who is looking forward to working closely with Cook and the leadership team.

Cook joined Equinor after a 20-year career at BP that spanned a number of corporate, commercial and operational and major project development roles. He holds an MA in Natural Sciences from St John’s College, Cambridge University in the UK, and completed the International Executive Programme at INSEAD, France. He is a trustee of the Power of Nutrition charity, which helps address malnutrition in children across Africa and Asia.

Germany has announced that its new funding commitment of R6.2-billion (€355-million) for South Africa includes funding for the country’s “just transition towards climate neutrality”.

The announcement of the two-year funding commitment follows government-to-government negotiations, led on South Africa’s side by the National Treasury, on South African-German development cooperation, which took place on October 5 in Pretoria.

Head of the German delegation Birgit Pickel described the Just Energy Transition Partnership, or JETP, which was announced at the COP26 climate negotiation in Glasgow, Scotland, as a “milestone in international cooperation” and underlined Germany’s strong commitment to the partnership.

Besides Germany, the JETP includes the European Union, France, the UK and the US, which have offered potential funding of $8.5-billion for an investment plan that is currently the subject of negotiations between South Africa and these developed countries.

It is anticipated that the investment plan, which will have a strong electricity focus but will also include green hydrogen and electric vehicle elements, could be signed off at or before the upcoming COP27 climate talks to be held in Egypt in November.

Following the recent bilateral talks, South Africa and Germany issued a joint statement that emphasised the importance of the “just” component of the transition to protect livelihoods and the economic base of the coal basin in policy discussions on the JETP.

Separately, US Treasury Secretary Janet Yellen signed a $95-million loan agreement on October 6 for the Clean Technology Fund (CTF), and indicated that its contribution would help drive the overall JETP programmes in “South Africa, Indonesia, India, and the Philippines starting in October 2022”.

The CTF is a multilateral trust fund which helps to scale-up low carbon technologies in developing countries.

Meanwhile, the joint statement issued by South Africa and Germany also reconfirmed their five bilateral focal areas, including: peaceful and inclusive societies; climate and energy; sustainable economic development; training and employment; and health and pandemics.

Besides the emphasis on the JETP, it was announced that South Africa and Germany would further strengthen existing bilateral technical and vocational education and training skills development cooperation, which would be complemented by further initiatives focusing on “pathways from learning to earning”.

To strengthen governance and fight the ‘second pandemic’ of gender-based violence, Germany made additional commitments in the areas of violence and crime prevention and to tackle corruption.

The Minerals Council South Africa and the Mandela Mining Precinct plan to announce the finalists of an open innovation challenge – championed by Sibanye-Stillwater and Impala Platinum – to identify high-potential innovations for real-time rock hazard identification and loose rock removal in South African mines.

The challenge forms part of the Mandela Mining Precinct’s Advanced Orebody Knowledge programme, which is aimed at providing mine planners, rock engineers, geologists and other decision-makers with information and knowledge that will contribute to optimal extraction and zero harm objectives.

It also forms part of the Minerals Council’s Elimination of Fall of Ground (FoG) Fatalities Action Plan, which is a holistic approach that encompasses technical and human elements supported by the Department of Mineral Resources and Energy, the Mine Health and Safety Council, as well as organised labour and suppliers.

The action plan, which was approved in July 2021, includes a financial investment of R46-million over five years.

The open innovation challenge, which was first announced on August 12 and which will close on October 12, was an invitation to identify and implement new technology that will enable the development of user-friendly solutions for improving geological confidence at the face, while also making the underground mining environment safer during the removal of loose rocks after blasting and during cleaning before workers enter the area for drilling.

The finalists will be announced in early November.

The challenge seeks to address a two-fold problem – identifying the rock features that could be potentially hazardous and then safely supporting or removing them.

“For falls of ground safety, statistical analysis revealed a lot of accidents happened during the barring process. This is why we needed to search for whatever technologies, instruments and systems are out there that can help remove loose rock in the safest possible way – preferably remotely, without people being exposed,” Minerals Council safety and sustainable development senior policy analyst Lerato Tsele tells Mining Weekly.

She explains that the business case for the Minerals Council on this project centered on saving lives, adding that Sibanye-Stillwater and Impala platinum mines have availed themselves to pilot whatever tool or equipment or technology emerges from the challenge.

South African underground narrow, tabular gold and platinum mines have the highest FOG risks. Intense fracturing often occurs owing to high stresses encountered at depth and the structural complexity of these orebodies.

This fracturing is also exacerbated by the drill-and-blast method that is traditionally practiced in hard-rock narrow reef mines. The combination of faults, joints and shallow-dipping fractures occurring in tabular stopes can compromise the integrity of the hanging wall, resulting in rock mass instabilities.

These instabilities, if untreated, may result in hazardous FoGs. This is why they are typically the target of safe-making and support activities during mining.

The identification and visualization of geological structures and hazards on the face by mining personnel is typically limited to in-person visual and physical examination and the ability to identify hazards and risks ahead of the face are limited.

A new, better leading practice is being sought for frontline workers in hard rock, tabular, underground mining to more accurately identify and visualize hazards relating to rock faults, joints and fractures.

Once unstable and unsafe rocks have been identified, it is necessary to support or remove them safely.

The method of using a pinch bar to sound the rock to establish its integrity and then using it to remove the rock exposes the worker directly to the hazard, not to mention it being physically demanding. A new tool to safely remove a loose rock from the rock mass in a controlled manner is required to ensure zero harm to those tasked with carrying out m...

Mining Weekly Editor Martin Creamer unpacks the latest news coming out of this year’s Joburg Indaba.

The Joburg Indaba heard this week, from Minerals Council South Africa President, that mining’s biggest opportunity lies in helping achieve a net-zero carbon world.

Meanwhile, the country’s geological prospectivity is extremely positive according to Minerals Council CEO.

The Joburg Indaba also heard that development is the only conversation South Africa should be having.

South Africa-headquartered Harmony Gold is extending its diversification drive, announcing on Thursday that it would buy a copper/gold project in Australia for up to $230-million.

The JSE- and NYSE-listed gold miner will buy the Eva Copper project and its 2 100 km2 exploration land from TSX- and ASX-listed Copper Mountain Mining for $170-million in cash and up to $60-million in contingent payments.

Eva will add 1.718-billion pounds of copper and 260 000 oz of gold to Harmony’s mineral reserves and extend the company’s diversification into copper, a future-facing metal critical to the energy transition.

The project is envisioned to be a conventional openpit operation, which will produce more than 100-million pounds a year of copper production and 14 000 oz/y of gold over a 15-year mine life.

“Acquiring Eva Copper is strategically important to our growth journey. It opens a new copper/gold frontier for Harmony within a highly attractive Australian mining area, supplementing our 50% interest in the Tier 1 copper/gold Wafi-Golpu project.

"Eva Copper lowers our risk profile, providing additional scale and meaningful diversification that positions Harmony for the future," said Harmony CEO Peter Steenkamp in a statement.

Harmony will fund the transaction, which already received approval from the South African Reserve Bank, with existing cash and available debt facilities.

Studies conducted by Copper Mountain estimate development capital of $597-million will be required to build Eva Copper. Harmony said that, over the next 12 months, it would undertake a detailed review and optimisation of the existing feasibility study.

Timing of the development capital will dovetail with Harmony’s current capital expenditure profile. The peak brownfield expansion, namely Mine Waste Solutions, will be almost complete by the time construction of Eva begins.

The construction of Eva will take between two and three years to complete. Ramp-up to full production will be quick, owing to the shallowness of the orebody.

Speculation has been rife for months that Copper Mountain, which focuses on its namesake mine in Canada, is planning a project sell-off. In June, it hired Macquarie Capital to evaluate its strategic options.

Copper Mountain president and CEO Gil Clausen said that the transaction demonstrated the value that the company had developed in the Eva project since its acquisition of Altona Mining in 2018.

The closing of the transaction is subject to certain customary conditions, including approval from the Foreign Investment Review Board in Australia and Copper Mountain bondholder approval.

The transaction is expected to close in the first quarter of 2023.