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ASX-listed Theta Gold Mines has entered into a non-binding streaming term sheet with Sprott Resources Streaming and Royalty Corporation worth A$110-million, in return for a gold stream on the TGME gold project, in South Africa.

Theta said on Wednesday that the TGME stream would be a significant milestone on the path to achieving first gold production at the mine, and would cover some 90% of the TGME gold project’s first stage of $77-million peak funding requirement.

The project is expected to deliver Sprott up to 100 000 oz of gold a year over its life-of-mine (LoM), for which Sprott will pay 10% of the gold price per ounce delivered under the stream. Theta has the option to buy back 50% of the stream based on a pre-agreed price, following which Theta will deliver 2% of the ongoing gold production.

Prior to the initial gold delivery, Theta will pay, either in cash or shares, 9.5% a year interest to Sprott for the funds advanced.

“We are very pleased to announce this significant milestone in our project financing efforts for the construction of the TGME gold project,” said Theta executive chairperson Bill Guy.

“The streaming deal is a much more cashflow-friendly style of financing compared to a straight debt finance. It is less risky to a start-up project where the unique repayment mechanism provides the company the flexibility to manage its cashflow as long as the minimum gold delivery requirements are met.

“Once the Sprott funding is closed, the company may commit to further upgrading our ore reserve base, as well as to potentially further expand our total mineral resource in order to increase production scale and life-of-mine from the existing Stage 1 definitive feasibility study mine schedule, hence creating ongoing significant value growth for our shareholders.”

Guy said that the recently published definitive feasibility study into the TGME project demonstrated robust economics for a horizontal stope underground mining and milling operation with low initial capital cost and high rate of return.

The study estimated that the mine would require a capital investment of A$232-mllion, and was based on the initial development of four mines, and has estimated an initial LoM plan of nearly 13 years, at a processing rate of 540 000 t/y.

First gold production is targeted for the second quarter of 2024, with the plant expected to produce over 100 000 oz/y by the third year of production. Over the LoM, Theta could recover as much as 1.08-million ounces of gold from the 1.24-million ounces mined.

An environmental impact assessment is ongoing with the local authorities and is expected to be completed later this year, along with the final approvals for two water use licences under application.

Surface gold mining company DRDGold on Wednesday reported a 1% quarter-on-quarter increase in gold production to 1 453 kg, on a 1% increase in tonnage throughput.

DRDGold’s principal subsidiaries are Ergo, its flagship metallurgical plant located 50 km east of Johannesburg, in Brakpan; and Far West Gold Recoveries, near Carletonville, west of Johannesburg.

In an operational update for the three months to the end of September, the Johannesburg- and New York-listed company reported a 4 kg decrease in gold sold to 1 442 kg. This resulted in cash operating costs per kilogram increasing 2% from the previous quarter to R658 530/kg. Cash operating costs per tonne of material processed remained stable at R133/t.

All-in sustaining costs per kilogram decreased 14% quarter-on-quarter to R755 201/kg, on a 68% decrease in sustaining capital expenditure. All-in costs per kilogram were a 9%-lower R796 255/kg quarter-on-quarter.

Adjusted earnings before taxes, interest, depreciation and amortisation decreased by 19% from the previous quarter to R386.4-million, owing primarily to an insurance claim of R84.7-million recognised in the previous quarter.

Cash and cash equivalents decreased by R280.5-million to R2 245.1-million after payment of the final cash dividend of R342.5-million for the year to the end of June.

The cash generated during the current quarter will go towards the extended capital expenditure programme for the 12 months to the end of June next year.

A favourable position remains for the declaration of an interim cash dividend.

As Mining Weekly reported in August, DRDGold has paid consecutive financial year dividends for 15 years, distributing a total of 60c a share in the previous financial year.

In the financial year now under way, it intends investing R700-milion, up on the previous financial year's R584.1-million.

Ergo and the Knights plant in Germiston comprise what may well be world’s largest gold surface tailings retreatment facility.

Together with the milling and pump station at Crown Mines and City Deep – both former plants – these operations treat approximately 1.7-million tonnes a month (t/m).

Far West Gold Recoveries, acquired from Sibanye-Stillwater in 2018, increased gold reserves by 90%. The Driefontein plant 2 has a capacity of 600 000 t/m and Driefontein 4 tailings storage facility a capacity of 525 000 t/m.

Integrated energy and chemicals company Sasol, already a seasoned grey hydrogen producer, and Freeport Saldanha Industrial Development Zone on Tuesday announced the signing of a memorandum of understanding (MOU) to facilitate a green hydrogen hub in the Western Cape.

In terms of the MOU, the parties agree to collaborate with a view of achieving a bankable and implementable project.

The MOU follows Sasol’s agreement with ArcelorMittal South Africa that also takes in the Saldanha green hydrogen hub.

Together with the Northern Cape Economic Development Agency, Sasol is also evaluating the proposed port of Boegoebaai for green hydrogen derivative exports.

Freeport Saldanha CEO Kaashifah Beukes described Saldanha Bay as having a strong strategic fit with Sasol's ambition to be a leading driver and contributor to the development of South Africa's green hydrogen economy.

In addition, Freeport Saldanha has brought together several stakeholders to drive catalytic investments in sustainable industrialisation and product streams, which adds value to Sasol and ArcelorMittal South Africa, the latter intent on becoming the first African green flat steel producer by using green hydrogen to produce direct reduced iron.

Meanwhile, South Africa has an opportunity to establish itself as a key player in the global transition to renewable forms of energy. With strong access to solar and wind resources and large industrial activities, the development of green hydrogen – a clean alternative to fossil fuels based on renewable energy – could help drive forward South Africa’s decarbonisation ambitions and serve a range of wider national objectives, Beukes and CSIR researcher Thomas Roos stated in a recent co-authored op-ed to Mining Weekly.

Earlier this year, South Africa updated its Hydrogen Society Roadmap, which aims to bring about a carbon neutral society that is economically inclusive and environmentally stable. For industries where electrification isn’t possible, such as steel production, shipping, aviation, chemicals, and cement production, the development of green hydrogen will be essential to ensuring that these industries are sustainable and can continue to contribute to the South African economy for years to come, Beukes and Roos stated.

BOEGOEBAAI’S LARGE LAND TRACTS

Boegoebaai, situated 60 km north of Port Nolloth, has large tracts of land and globally competitive renewable energy factors and a 24-month study of the strategic potential of the green hydrogen hub has reached the halfway mark.

Part of the planning being done is for 9 GW of renewable sun and wind energy to be generated, 400 000 t of green hydrogen a year to be produced, and 6 000 jobs to be created. The initial concession is for a 5 GW electrolyser to be deployed.

Green hydrogen – produced by the electrolysis of water where the energy source comes from renewables such as wind or solar – can play a huge part in the transition away from fossil fuels. Yet reducing the cost of green hydrogen production is crucial to accelerating its use as a zero-emission, carbon-free fuel to help achieve net zero goals.

The use of platinum group metals (PGMs) by proton exchange membrane (PEM )electrolysers is another important boost for South Africa, which hosts the bulk of the world’s PGMs.

The World Platinum Investment Council stated in a release on Tuesday that innovations are demonstrating the potential for a new era of sustainable offshore green hydrogen production to help deliver cost-competitive green hydrogen, by combining wind power with platinum-based PEM)electrolysers to produce green hydrogen in an off-grid solution.

This brings together two established technologies; electrolysis – first discovered over three centuries ago –and wind power, with today’s industry the result of developments that occurred in Denmark at the end of the 19th century.

Wind power is now one of the fastest-growing renewable energy technologies. Usage is on the rise worldwide, in part because costs are fallin...

LSE- and TSX-listed Endeavour Mining on Monday launched the construction of its Lafigué project on the Fetekro property, in Côte d’Ivoire, following the completion of a robust definitive feasibility study (DFS).

The Lafigué mine will produce an average of 203 000 oz/y at an all-in sustaining cost of $871/oz over a 12.8-year mine life.

CEO Sebastien de Montessus said in a statement that Lafigué would become a cornerstone mine for Endeavour and that would enhance the group’s geographical diversification.

“We are ideally positioned to launch the construction of Lafigué, given our net cash position, the continued strong performance of our operations, and our success in de-risking the Sabadola-Massawa expansion with a significant portion of the capital already committed on-budget. Moreover, we are seeing reduced inflationary pressures and favourable foreign exchange rates compared to earlier in the year,” he said.

The DFS estimates upfront capital of $448-million and yielded an aftertax net present value, using a 5% discount, of $477-million and an internal rate or return of 21% with a 4.2 year payback.

First production from Lafigué is expected early in the third quarter of 2024.

Endeavour executive VP for exploration and growth Patrick Bouisset said that the Lafigué discovery was an example of how the mining company created value.

“For a modest exploration investment of $31-million, which represents a discovery cost of $12/oz, we have added a new cornerstone asset to our portfolio. To continue to source our projects organically, we have increased our greenfield exploration efforts, which, over recent months, have resulted in significant success at our Tanda-Iguela property in Côte d’Ivoire, where we expect to publish a maiden resource later this year.”

High on the list of the steps that must be taken to stop South African mining from fading further into sunset mode is free access to geological information from State institutions such as the Council for Geoscience.

Next is the provision of a modern, functional, and transparent mineral cadastre system that must include access to historical holdings to ensure transparency of historical and new mineral data. A functioning cadastre system would allow explorers to see what licences are available and speedily facilitate the processing of applications for available licences.

In addition, a well-trained and functional Department of Mineral Resources and Energy (DMRE) is essential to enable the quick turnaround of licence applications and enforcement of the ‘use it or lose it’ principle.

A tax advantage to investors in exploration companies is the missing investment spur that must be put in place.

A simplified legislative framework must be put in place and kept in place, and access to finance and capital flows must include revision of Johannesburg Stock Exchange requirements for junior exploration and mining.

These and many other pointers were provided by successful explorer James Campbell, the CEO of Botswana Diamonds, the London- and Botswana-listed development company that has been able to work with the challenging systems that the South African government has put in place, even though it requires a great deal of work.

The absence of a central repository of information for new exploration entrants into South Africa is a large barrier to entry for newcomers, says Campbell, who spoke to Mining Weekly in a Zoom interview. (Also watch attached Creamer Media video.)

Mining Weekly: The lack of exploration in South Africa is worrying, yet Botswana Diamonds seems to be going great guns in South Africa at Thorny River and Marsfontein.

Campbell: We are able to work with the DMRE. We are able to work with the systems that the government has in place, but it does take a great deal of work to get things done. I think what was published last week was that the telephone systems for DMRE don't work. But be that as it may, we just make sure that we have people on the ground to go and visit the DMRE to make sure our licenses progress. But I think what is important to mention is that we're a junior, and juniors go to places which are highly prospective, but are difficult places to work. We've operated across the whole of Africa. I ran a company called West Africa Diamonds in Sierra Leone just after the war there. We go to places and we know and acknowledge that it's hard work to get things done, whether it's the bureaucracy, whether it's the deep sand of the Kalahari in Botswana, whether it's just coming out of a war in Sierra Leone. We see these as opportunities, and that's why we believe South Africa, which has got fantastic infrastructure, although it is crumbling a little bit, is a great place to be because of its high prospectivity.

Do you foresee your exploration in South Africa transitioning to mining?

We absolutely hope so. We've applied for two mining permits on the Thorny River project already, and we're in the process of applying for a water use licence. We've done considerable geological work, bulk sampling, micro diamond work, drilling, mineral chemistry, and we believe that the kimberlites ,which are east of Marsfontein, and what we call the Thorny River project, are commercial, and there we’ve applied for a mining permit, which is almost a unique form of legislation, when I look at the different regulations throughout Africa. In most of Africa, it's a mining licence or nothing, and a mining permit is designed for small scale miners, and it's a really neat piece of legislation, which allows companies like ours to commercially exploit small deposits over a shorter period of time.

In your concluding remarks during a recent presentation, you spoke of the need to be able to access geological information in South Africa at zero cost. How ...

A multi-phased development approach is being adopted at the Karo Platinum project in Zimbabwe, where a 17-year opencast mine is to be built with a timeline to deliver its first ore to mill in July 2024.

“In July 2024, we will put the first ore in mill,” Karo Mining Holdings MD Bernard Pryor told a project update presentation covered by Mining Weekly. (Also watch attached Creamer Media video.)

Land has been allocated for a 300 MW solar plant to serve the project, the 12-month design and construction period for which began on July 1.

The updated output is scheduled at 194 000 oz a year, which puts the project in line with Anglo American Platinum’s Unki mine, also on Zimbabwe’s Great Dyke.

Total cost to first ore in mill is estimated at $391-million, with $20-million spent to date and with Tharisa able to provide an extra escalation reserve of $26-million should it be needed in today’s volatile world of escalation and inflation.

Under the Zimbabwean government, the project, with a total value of $686-million, has a five-year tax holiday.

Its internal rate of return is just over 26% and return on investment capital is 30%.

The earthworks contracter began clearing the site this week for earthworks terracing to begin in December.

“The accelerator is flat to the floor,” was how Pryor described the project’s pace.

Orders for ball mills and flotations cells, the two long-lead items, have been placed. The ball mills are on the critical path that defines the 24-month construction period and the advanced flotation cells area expected to lift metal recovery to 82%.

Civils contracts will be awarded this month and final negotiations are under way with the selected mining contractor, a mix a South African mining contractor and a local Zimbabwean mining contractor, and “we should execute that in the next few weeks”.

In a country described by Pryor as having an exceptional level of education and challenged employment, there has been a nigh hundred-to-one response to the ten senior jobs advertised.

“My experience here in Zimbabwe is that the workforce is very capable, educated and has a greats work ethic, which will certainly help us to bring this project in on time and on budget,” Pryor said.

A first-phase resource of just under 10-million ounces has a six-element grade of 2.04 g/t.

Typically, the reef horizons are between two and three metres thick and Karo will be targeting anywhere between 3 m and 5 m in terms of its mining proposition, Tharisa CEO Phoevos Pouroulis stated.

Currently Tharisa plc owns 70% and Leto Settlement the remaining 30% of Karo Mining Holdings plc, which in turn owns Karo Zimbabwe Holdings in joint venture with Generation Minerals, which is the Republic of Zimbabwe’s carried interest in the Karo Platinum project.

Pryor described environmental social and governance (ESG) as one of the project’s most important targets, along with International Finance Corporation-compliant performance standards being applied to the mining and concentrator processing plant.

“We still have the water supply and the power supply to be approved by the Zimbabwean government. Those are in process, and we see no real issues with them.

“In terms of the tailings dam, clearly a subject that is important to all miners, this is a structurally safe dam, rock built not earth or dam built, and it has been independently designed and checked by our consultants,” said Pryor.

The community is seen as key, with the two towns within 30 minutes’ drive of the project site earmarked for employee recruitment.

“We will prioritise local recruitment so that we can benefit the local communities as much as possible,” Pryor promised.

A dedicated social and environmental team of 12 people will ensure that all ESG obligations are met, he added.

Government has allocated new land for 12 households to be relocated and the new houses will be built according to laid-down standards in the next six to nine months, with previously absent power and water supply laid on.

GREEN E...

Mining Weekly Editor Martin Creamer discusses how expanding bulk mineral exports can increase employment to 500 000 direct jobs; South Africa's red tape in issuing a prospecting right; and AngloGold Ashanti's goal to reduce its emissions by 30% by 2030.

The exciting part of the Eva Copper project is the near-term production prospect that it brings with it, says Harmony Gold Mining Company investor relations head Jared Coetzer of the Johannesburg- and New York-listed company’s purchase of the Australian copper project, that comes with 2 100 km2 of exploration land, for a cash consideration of $170-million and up to $60-million in contingent payments.

“The project itself is a quick build,” says Coetzer, who was speaking to Mining Weekly in a Zoom interview. (Also watch attached Creamer Media video.)

“We understand the risks. We understand what needs to happen. It's 100% owned and operated. We’re in full control of this project”, sold off by Canada’s Copper Mountain, whose president and CEO Gil Clausen highlighted the transaction as demonstrating the value that the Toronto-listed company had developed in Eva since its acquisition of Altona Mining in 2018.

The acquisition has brought forward Harmony’s copper story, adding 1.718-billion pounds of copper and 260 000 oz of gold to Harmony’s mineral reserves.

Harmony’s existing cash and facilities will see to the $170-million needed now, with the strength of its balance sheet leaving the company in a comfortable net debt to earnings position.

“We're very comfortable to pay the cash required for this now, “ says Coetzer, and then cross the capital expenditure (capex) bridge required for project development when it arrives at that point in a few years’ time.

Studies conducted by Copper Mountain estimate development capital of $597-million will be required to build Eva Copper.

Over the next 12 months, Harmony will be undertaking a detailed review and optimisation of the existing feasibility study.

The closing of the transaction, which is expected to take place in the first quarter of next year, is subject to certain customary conditions, including approval from the Foreign Investment Review Board in Australia and Copper Mountain bondholder approval.

"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 has already received approval from the South African Reserve Bank.

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.

Mining Weekly: For many years, Harmony has held on to the still-undeveloped Tier 1 copper/gold Wafi-Golpu project in Papua New Guinea. Why should Harmony now want another undeveloped project on its hands?

Coetzer: It's a good question and certainly one that's come up a lot. I think the important thing to understand is that this Australian asset is permitted whereas Wafi-Golpu is not permitted, and that’s been the real Achilles’ heel for us over the last few years, getting the special mining lease in place. One of the big decisions behind the Eva Copper acquisition was the fact that it's in a tier-one jurisdiction, has low operating risk and is permitted. We feel that this really does transform our business. What it does it brings forward the copper gold story. We've been talking about Wafi-Golpu for many years now. It’s the perennial gorilla in the room. We were in Denver a couple of weeks ago, the first question that gets asked is where is Wafi-Golpu and the copper gold story Harmony has been talking about for the last number of years.. It's very important to us and I think it's a great opportunity for us to fast-track that story. The exciting parts with this Eva Copper project is that introduces a producing copper asset well before Wafi-Golpu reaches its peak capex. It dovetails really well between where we are now and where we want to be in a couple of year...

South Africa is on track to achieve a new record low in mining fatalities for the year, Mineral Resources and Energy Minister Gwede Mantashe said during the Mine Occupational Health and Safety Tripartite Summit hosted by the Mine Health and Safety Council, in Midrand, on October 13.

To date, 38 work-related fatalities have been recorded in the South African mining industry, a significant drop from the 74 recorded last year, Mantashe said.

The lowest ever number of fatalities recorded by the South African mining industry in any year was in 2019, when there were 51 fatalities. The industry’s safety performance, however, worsened again in 2020 and 2021 when 60 and 74 fatalities were recorded.

Mantashe also warned that there were still two-and-a-half months to go before the end of the year and that much could change during that time.

He implored delegates attending the summit to continue striving for zero harm and zero fatalities.

The summit is aimed at addressing the bottlenecks that prevent the industry from achieving zero harm and zero fatalities.

Mantashe singled out fall-of-ground (FoG) incidents as a longstanding area of significant concern, but he also applauded the lack of incidents in both the gold and platinum group metals (PGMs) mining sectors so far this year.

Mining Weekly reported earlier this year that the gold and PGMs mines had achieved zero FoG-related deaths throughout the first half of this year.

The mining industry has been paying particular attention to the issue and has been taking steps to do all it can to eliminate FoG-related deaths. The Minerals Council South Africa, the Mandela Mining Precinct and other partners earlier this year also launched an innovation competition aimed at identifying technologies that could help eliminate the risk of FoG-related deaths in the mining sector.

Mantashe encouraged continued efforts to eventually eliminate all risk associated with FoG incidents, reiterating that one fatality was a fatality too many.

He also commended the 67% reduction in machinery-related fatalities so far this year.

Further, Mantashe raised concerns about the safety of South Africa’s tailings storage facilities (TSFs), singling out the Free State as having many more TSFs that were akin to the Jagersfontein tailings facility. He implied that there was a general lack of proper qualifications among those who manage the TSFs, saying these employees were qualified in mining rather than in water management.

Organised labour stakeholder advocate Hanlie van Vuuren, meanwhile, called on Mantashe to conduct an urgent and immediate survey of all tailings facilities in the country.

“We have a responsibility to improve the image and reputation of the sector and we can do better,” Mantashe agreed.

He said it was important to continue pushing for zero harm and zero fatalities because the mining sector was important for South Africa’s economy, and that it needed to grow.

He called on delegates to do more exploration and open up more mines to achieve a 12% contribution to [gross domestic product]. He said mining was not dead in South Africa, only that it was no longer focused so heavily on gold mining but on a more diversified portfolio of metals and minerals.

Mantashe claimed that mining saved the fiscus during the Covid-19 pandemic, and so it should work hard to not destroy jobs through injuries and fatalities but rather create jobs by ensuring worker safety.

Mantashe said relations between all stakeholders were important, and that much of it depended on continued improvement in health and safety.

“The protection of workers is critical to ensure that the industry continues to thrive and contribute to the economy,” he said.

Mantashe also called for a swift resolution and end to strikes, or to avoid them altogether by working more cooperatively.

He said industrial action caused much stress for workers, and that stressed miners who were under pressure suffered lapses in their safety consciousness, which could lead t...

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...