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The world’s largest battery-electric truck for underground mining is on its way to becoming commercially available in 2024.

Sandvik’s 65 t TH665B machine removes between 1 t and 2 t of carbon dioxide (CO2) a day, along with heat and noise.

“When we talk about sustainability and electrifying mining, we focus a lot on what we can reduce, such as CO2 emissions, heat and noise. That's one side of the coin, and that's great.

“But what's important to emphasise, too, is that you can also increase a lot of things. Battery-electric machines have more power, which provides the potential to improve performance, speed and tons moved,” Sandvik VP strategy and commercial for the battery and hybrid/electric-vehicles business unit of Sandvik Mining & Rock Solutions Jakob Rutqvist highlighted to Mining Weekly in a Zoom interview. (Also watch attached Creamer Media video.)

By the end of this year, Sandvik will have three proven battery-electric production units to help satisfy the rapidly increasing demand for decarbonisation – a 4 t loader, 18 t loader and 50 t truck.

The 65 t truck will be the next big product launch, amid the company’s overall commitment to provide – by the end of 2025 – an offering covering all the major size classes, with the exception of low-profile machines.

“Low profile is one of the potential next steps beyond 2025,” said Rutqvist.

The official unveiling of the 65 t battery-electric truck was one of the attractions of this month’s Electra Mining Africa exhibition in Johannesburg, which was attended by more than 30 000 people at a time when major mining companies the world over are going all out to meet their net-zero decarbonisation commitments.

The deployment of a full renewables-powered Sandvik loader and truck fleet underground is calculated to cut total mine emissions by around 35%.

When engaged in heavy load work on a steep ramp, the 65 t battery-electric truck has a runtime of roughly one-and-a-half hours to two hours.

When on level terrain, that runtime can extend to three hours before requiring the battery to be swopped, which takes about five minutes. While one battery is in operation, the other is charging.

The low-noise TH665B, which also has collision avoidance and digital prompt systems, is to undergo site acceptance testing at Western Australia’s Sunrise Dam gold mine, beginning early next year.

“We're going to put it to very hard use with Barminco and AngloGold Ashanti for the first half of next year. I'm sure we’ll learn a lot, and then we’ll implement some improvements, and maybe some product upgrades, based on what we learn,” said Rutqvist.

Sandvik’s first battery-electric entry into Africa will be with the 18 t battery-electric LH518B underground loader at South Africa’s South Deep gold mine, a mechanised operation 50 km southwest of Johannesburg, where a 60 MW solar power development is under way.

On the development of the solar farm, Rutqvist said: “I was very impressed when I saw that last week.”

The commissioning of the battery-electric loader, already a commercial product, will begin early next year.

“We're well prepared, both on the customer side and on Sandvik's side, for a successful introduction of this technology in South Africa,” said Rutqvist.

Canada is currently the leading battery-electric market, with Australia, northern Europe and Africa rapidly picking up pace.

Mining Weekly: What milestones has Sandvik already achieved when it comes to electrification?

Rutqvist: We started a very long time ago. The first electric loader came out the same year I was born, so that's 1982, and the first electric truck came in the late 80s. These were cable electric, connected to the mine grid with a cable. We launched our first automated electric loader in 2009 and then acquired Artisan Vehicle Systems in 2019, which is where I sit right now. This is our R&D hub, battery- and prototype factory for battery-electric vehicles, the big new thing. This year is a milestone because we've secured some very ...

Botswana-listed coal miner Minergy has reported “remarkable growth” in revenue from P193-million in the 2021 financial year, to P425-million in the 2022 financial year.

The company achieved the one-million-tonne mark for ore extracted and processed at its Masama coal mine, which is located 60 km northeast of Gaborone, in Botswana, in the year under review.

The company started turning a profit in the fourth quarter of the 2022 financial year ended June 30, which sets it on a path for a profitable 2023 financial year.

Minergy’s operating loss has narrowed to P74-million, against an operating loss of P85-million posted in the prior financial year, mostly owing to the company breaking even in the last quarter.

CEO Morné du Plessis describes the reporting year as “historic” in having a challenging first three quarters, followed by an exceptional turnaround in the fourth quarter.

He attributes the company’s pure coal sales growth, which amounted to P297-million, against pure coal sales of P167-million posted in the prior year, to the many European and Eastern countries looking for alternative sources of supply.

As a result, Minergy’s high-quality coal became a sought-after commodity. Du Plessis tells Mining Weekly that the cycle of a shortage of energy supplies is poised to continue, particularly if the war in Ukraine persists beyond this year.

He believes governments are realising that switching off coal completely is not the way to go if economies are to remain electrified. Du Plessis adds that because many coal mining companies have ceased operations or diversified away from the commodity, it leaves a shortage of coal supply in the market, to which Minergy is well positioned to cater to.

Du Plessis explains that the war in Ukraine has led to high coal prices as of end-March, as energy markets have come under severe security of supply pressure.

However, he adds that hyperinflationary-like price increases of explosives and diesel had diminished some of the revenue gains made in the year.

The regional market, in contrast with the international market, was constrained for most of the year under review, owing to an oversupply of coal.

Du Plessis explains that because South Africa’s State-owned freight utility Transnet Freight Rail failed to support many coal dispatches into the export market through its Richards Bay port, many coal suppliers dumped coal into the regional market instead of exporting to the international market.

Moreover, the year was also marked by some key events for the company, including a debt restructuring exercise to stabilise the business and the successful commissioning of Stage 4 of Masama’s processing plant, which involves screening and stock handling.

The now fully functional plant contributed greatly to a steady production environment.

The mine is currently producing at a run-of-mine rate of 125 000 t a month, or 1.5-million tonnes a year, which Minergy aims to sustain in the 2023 financial year.

Responding to whether Minergy plans on expanding Masama or venturing into more projects, Du Plessis says the mine’s 390-million-tonne resource will keep it in production for well over 100 years, even at aggressive production rates.

Instead, the company will focus on its markets and maximising sales, particularly the seaborne market, which Du Plessis says is now a viable pursuit owing to high prices.

Minergy continues to capitalise on viable export opportunities through the ports of Walvis Bay, in Namibia, and Maputo, in Mozambique.

“Historically, plant and market factors limited us from operating at optimal capacities, but fortunes have now changed. This turnaround supports the expansion of mining operations to produce additional coal, and the mining fleet has been increased to capitalise on this.

“Opportunities to exceed production capacity and the resultant additional saleable production are being pursued,” Du Plessis states.

He is positive about the outlook for the coming year and expects the company to becom...

Industry body the Minerals Council South Africa says the industry’s safety performance in August, during which eight fatalities were recorded, making it the worst month of the year, is a red flag that it cannot ignore and demands an immediate, proactive response.

In the year to date, the total number of deaths is 36 compared with 36 in the same period in 2021, which is deeply disappointing after the industry’s safety interventions delivered an encouraging performance in the first seven months of the year. During the early months of this year, record safety achievements in fall-of-ground (FoG) and trackless mobile machinery-related fatalities were achieved, it says.

"We are fully cognisant of the heartbreak and tragedy that is visited on the families, friends and colleagues of every single person who has died. We affirm our ongoing commitment to the achievement of zero harm in the industry and that our members are proactively addressing the deterioration in safety with all the seriousness and urgency that it deserves," the council emphasises.

The Minerals Council convened a special board meeting on September 9 to urgently address an unacceptable regression in the mining industry’s safety performance in August and to implement a range of interventions to ensure safer working environments.

"The board meeting was to agree revitalised safety interventions in the sector, as it heads into the final three months of the year, which are historically the period associated with an increasing number of fatalities."

While the board members agreed on the need for increased and impactful, visible, felt leadership safety campaigns and mass meetings in the last months of the year, the board emphasises that it was equally important to address the potential impact of Covid-19, mental health and external environmental factors, which include economic pressures, crime in communities and gender-based violence, on the safety of employees in mining operations.

"The board members agreed on various actions for the prevention of fatalities in the last months of the year, including ensuring proper planning, supervisory oversight and adequate team resourcing in people, materials and equipment. The Minerals Council will also establish a multi-disciplinary team to explore alternative ways of cleaning broken ore from working areas, as part of the winches proposal."

Further, in terms of trackless mobile machinery, the aim is to ensure controls, such as proximity detection systems and/or collision prevention systems, are effective.

"While the industry has seen reductions in FoG and transport-related causes of accidents in recent years, a worrying trend has been observed regarding winch-related fatalities in the mining industry," the Minerals Council highlights.

On September 15, the Minerals Council hosted the Scraper Winches Day of Learning to share learnings, leading practices and technologies to address the challenges associated with using underground winches that are used to scrape broken ore out of working areas to haul to the surface for processing.

"One of the outcomes of the session was the endorsement of the recommendation made by the Minerals Council special board meeting on the establishment of a multi-disciplinary team to explore alternative ways of collecting the broken ore in conventional mines besides scrapers and winches," it notes.

Additionally, the actions agreed on by the board also include a recommitment to eight interventions agreed in December 2021, which include increased visible-felt leadership presence at mining operations, and stopping unauthorised and uncontrolled access to old mining areas that are not routinely mined; and to effectively and rigorously conduct risk assessments and implement controls where work in previously mined areas is routinely undertaken.

The December commitments also include quality and scheduled maintenance programmes instead of opportunistic and ad hoc maintenance arising from production pressures, and deplo...

A collaborative energy approach, like that of the European Union (EU), is needed in Southern Africa, says Namibia presidential economic adviser James Mnyupe.

At least South Africa and Namibia should put together a case that shows seriousness about decarbonising sub Saharan Africa, says Mnyupe, with the two countries looking to share with the world the burden of building the required pipeline and transmission line infrastructure.

Mnyupe, who was a panel member at the Hydrogen Economy Discussion, says EU-like collaborative regional and continental approaches are needed in the renewable energy and green hydrogen space.

Moderated by Allen & Overy counsel Gillian Niven, the other panel members were EU-South Africa trade policy officer Darryn Allan, International Renewable Energy Agency programme officer policy Emanuele Bianco, and RebelGroup Southern Africa senior consultant Laurens Cloete.

Mnyupe says African policy makers need to be aware of the different policy toolbox needed for African countries playing different roles.

For example, Namibia is poised to be an exporter of green hydrogen, South Africa perhaps a net importer and others playing a self-sufficient roles.

“If you look at Morocco, it may export but it has really large industries that it may need to decarbonise, and South Africa might very well be a good example of that as well.

“Depending on what type of country you are, you will need to think strategically about the different pieces of legislation and policy that you would want to be championing.

“For example, if you are an exporter like Namibia, you will be thinking very hard about securing offtake agreements with clientele countries,” he highlights.

For others, the focus will be on regulating pricing for the use of specific infrastructure, such as pipelines and ports, and the need for some of that infrastructure needing to be common-user infrastructure so that the original builder of the pipeline does not necessarily restrict access to others down the line.

From an upstream perspective, there will be a need for collocating assets in a way that makes sense.

Namibia, with both good wind and solar in one jurisdiction, will need to ensure that it puts legislation for special economic zones around the generating assets to facilitate industrialisation clusters or a hydrogen valley around the generation assets.

Thought needs to be given to the prospect of assembling wind blades close to where the wind turbines will be located to negate the need to transport these large pieces of infrastructure over long distances.

“Figure out whether you are a net importer or a net exporter - something that I think is very important from an African perspective as well as beginning to think about inter-regional trade,” he adds.

He foresees not only green molecules in the form of green hydrogen and its derivatives being transported around Southern Africa but also green electrons in the form of renewable energy.

It could be that South Africa will be importing some of the molecules from Namibia to decarbonise its hard-to-abate sectors.

“The one thing I would like to remind all African States to bear in mind is that hydrogen is not purely a molecule play. When you deploy very large renewable energy assets at scale, you will be getting electron connectivity. You could capture some of that, use that to become self-sufficient but possibly to trade electrons as well into the Southern African Power Pool.

President Cyril Ramaphosa on 25 July spoke about South Africa possibly needing to consider importing electricity from neighbouring countries that have excess electricity.

“If that electricity happens to be good, clean renewable energy that is cheap and affordable, I think that presents a really great opportunity for South Africa and its neighbours, such as Namibia, Botswana, Zimbabwe and Mozambique. That’s what Africans need to start thinking about when looking at the hydrogen opportunity.

Both Namibia and South Africa are looking at green hydro...

The Minerals Council South Africa supports President Cyril Ramaphosa’s electricity recovery plan and urges more rapid private sector participation in resolving the country’s deepening electricity crisis.

Minerals Council members have 6 500 MW of embedded energy projects in the pipeline which will ease demand pressures on Eskom, giving it the space to conduct much-needed maintenance programmes.

The 89 projects by 29 mining companies are worth more than R100-billion.

The mining industry’s projects are part of the more than 8 000 MW of energy projects the private sector has planned, taking advantage of the removal of the 100 MW cap on licence-free embedded energy projects by President Ramaphosa in July.

The plans outlined to stabilise South Africa’s electricity supplies included, as a primary focus, the stabilisation and normalisation of Eskom, which declared Stage 6 load-shedding on Sunday after multiple plant failures.

“It’s critical we get stabilisation in the existing network while we in the private sector do what is necessary to get investment into the next stage of South Africa’s energy chapter by developing alternative additional sources of electricity in the form of renewable energy,” Minerals Council CEO Roger Baxter stated in a release to Mining Weekly.

“We know load-shedding will be a risk for the next two years, but we must continue to bring supplemental supply from the private sector on stream as quickly as possible,” Baxter added.

There has been progress around the time it takes to register private renewable energy projects and access Eskom’s grid, and in relaxing environmental permitting, but there are still unnecessary bottlenecks that are delaying investments. The Minerals Council and fellow business groups and energy users have raised these with the Presidency and relevant Ministers.

Eskom CEO André de Ruyter has said the utility needs up to 6 000 MW of additional electricity supply so its teams can conduct effective maintenance programmes on its fleet of aged power plants.

The energy projects in the mining industry are largely for self-use as the sector strives to be a net-zero carbon emitter in line with commitments by its global peers by 2050.

The industry has noted Eskom is willing to buy third-party generated electricity as outlined in the President’s energy recovery plans, but at the moment mines are focused on supplying their own needs to take pressure off the national grid.

As reported by Mining Weekly, Eskom aims to approach the market imminently with an offer to buy up to 1 000 MW of surplus electricity that it believes could be immediately available from existing independent power producers and large companies with their own generation capacity

Mining companies that have opted to self-generate have found the business case to be exceedingly strong.

Gold Fields’ South Deep gold mine west of Johannesburg in Gauteng will be generating its own solar power at a mere 8.5% of the cost of power from the national grid.

The JSE- and New York-listed company is also optimistic that it will be successful in augmenting the solar power generated with wind power.

Gold mining company Pan African Resources, which began with 10 MW, is now targeting another 30 MW. From its pioneering 10 MW endeavour it saved R4-million in its first month of generation.

Moreover, the energy transition under way globally presents a fresh opportunity for South Africa to build a clean and inclusive energy ecosystem that can create new and significant economic opportunities for the African continent.

This continent, with its vast natural reserves of abundant sun and wind, provides an unmissable opportunity to both decarbonise and create significant new economic sectors – and many in mining have been committed for a long time now to play their role in making that opportunity a reality.

The global forecast for battery electric vehicle (BEV) production has risen by 120% over the past two years, according to research carried out by research and consulting firm SFA (Oxford).

SFA (Oxford) senior battery markets analyst Lakshya Gupta, who presented the research findings during a webcast hosted by diversified miner Sibanye-Stillwater on September 14, noted that some of the BEV production appears to be weathering global component supply disruptions better than internal combustion engine (ICE) vehicle production.

“It's a combination of strong consumer demand, with original-equipment manufacturers (OEMs) prioritising electric vehicles (EVs) over ICE cars throughout the recent semiconductor chip shortage,” he said.

Globally, the top 15 EV markets experienced about 80% growth in the first half of this year, against a backdrop of a 10% decline in overall car sales.

“Basically, the EV market has just become more competitive. OEMs are allocating more and more capital resources to make this trend happen and expanding and bringing forward the timelines. Consumers have more attractive models and more and more models to choose from every year, which is generating demand,” Gupta explained.

Another key driving factor behind the EV market success is the “carrot and stick” approach from governments, where subsidies or tax rebates make EVs more competitive than ICE cars in terms of price, he said.

LITHIUM

One of the most critical metals for the ongoing success of EV production is lithium, Gupta noted.

Lithium-ion batteries have the highest potential performance relative to other commercial rechargeable batteries. They also have the highest power density which, for an EV, translates to acceleration and they have the highest energy density, which translates to the range of the car.

Lithium is required in BEVs to have acceptable performance, based on consumer expectations from ICE cars. This performance is determined by the composition of cell components.

Ions move through the separator during normal operation, between the two electrodes of the cell. Cathode materials are the main driving factor behind the price of EVs. If the cost of the cathodes can be reduced, the cost of EVs will come down, Gupta explained.

Although lithium prices may have peaked, they remain at extremely high levels for both lithium carbonate and lithium hydroxide, he noted.

“The lithium market is forecast to move to mounting deficits from next year onwards, but supply from ‘probable’ and ‘low-risk possible’ projects could potentially keep the market balanced through to 2025. Prices are likely to reach a floor in 2024, before starting to rise to incentivise higher-risk projects,” he explained.

So far this year, Gupta said, EV sales appeared inelastic to battery metal prices. This could be owing to several factors, including strong demand pull, OEMs not passing on rising production costs, a boost in EV demand as a result of pent-up savings since Covid-19 and the probability that OEMs prioritised EV production during the semiconductor chip shortage.

“Nonetheless, our analysis and research in the last few years has shown that lithium is likely to be the bottleneck in meeting aggressive EV projections,” Gupta stated.

SIBANYE’S INVOLVEMENT

Sibanye has made moves to involve itself in the battery metals market by concluding a series of transactions in 2021.

Key among these was the company’s investment in the advanced Keliber lithium hydroxide project, in Finland, aiming to be the first fully integrated European lithium producer with direct access to the European BEV market.

Sibanye spokesperson James Wellsted said that, to date, the company had committed €176-million for its 50%+1 shareholding in the Keliber project.

The maximum amount to buy out minorities to increase shareholding from 50%+1 to about 80% is estimated at €196-million, which the company aims to complete by October.

The Finnish Minerals Group is considering retaining about 20% of the project, while Sib...

From next year, platinum group metals (PGMs) demand in the hydrogen sector will eclipse 100 000 oz for the first time, according to Metal Focus’ Hydrogen Economy Quarterly Service.

Catalysed by the global shift to clean energy, the metals will see year-on-year double-digit growth over the next decade, overtaking more established demand sectors, it was stated in a note to Mining Weekly.

With hydrogen becoming a key component in the quest for global decarbonisation and a focal point of the automotive industry, the Hydrogen Economy Quarterly Service report assesses the implications for PGMs demand of current market trends, policies and technology.

With PGMs and hydrogen joined at the hip, the metals received an additional boost this week when the creation of a new hydrogen bank was announced by European Commission president Ursula von der Leyen during the yearly State of the Union speech.

In cooperation with the European Investment Bank and using €3-billion as a starting capital, it is calculated that the overall budget for hydrogen can be leveraged up to €20-billion.

The new hydrogen bank will purchase ten-million tons of hydrogen that need to be produced to cover the targets of the renewable energy directive that was approved simultaneously by the European Parliament.

Moreover, the European Parliament has voted through a key renewable energy directive amendment that eliminates the former restrictive “additionality” requirements, and approved binding targets for renewable hydrogen and its derivatives in industry and transport.

Failure of the European Parliament to do so was perceived as risking a “mass exodus” of green hydrogen investors to the US amid the new US hydrogen tax credits that offer subsidies of up to $3/kg for green hydrogen, which requires platinum and iridium PGMs as catalyst electrolyser metals.

In welcoming the European Commission’s €3-billion hydrogen facility to spur investment into green hydrogen, Clean Hydrogen Partnership executive director Bart Biebuyck said on LinkedIn: “We need to move from niche market to mass market for hydrogen.”

According to a study from Indian/US firm Transparency Market Research, the global green hydrogen market will expand from $2.14-billion last year to $135.73-billion by 2031 – a colossal compound annual growth rate of 51.6%.

The study adds that solar energy will be the leading source of power for green hydrogen over the forecast period, with PGMs-using proton exchange membrane (PEM) technology dominating the electrolyser market.

“Policymakers are considering green hydrogen as an option in a number of industries as a result of the lofty net-zero objectives set by governments throughout the world,” Ballard Power Systems commented in LinkedIn.

Meanwhile, South Africa’s State-owned Industrial Development Corporation (IDC) was particularly bullish this week on prospects for green-economy investments, including in renewable energy, battery storage, new energy vehicles, green hydrogen and renewables and battery component manufacturing.

About a third of the IDC’s overall 40-project pipeline are green economy projects.

The IDC already had renewable-energy generation assets worth R14-billion, mostly developed under government’s Renewable Energy Independent Power Producer Procurement Programme (REIPPPP) and will continue to participate in REIPPPP projects but is also experiencing strong deal flow as a result of recent reforms allowing distributed generation projects below 1 00 MW to proceed without a licence. Government is in the process of lifting that cap entirely.

Following the regulatory change to raise the licensing limit for distributed generation projects from 1 MW to 100 MW, SOLA, African Rainbow Energy this week reached financial close on two 100 MW solar projects. “African Rainbow Energy is the largest shareholder in the SOLA Group and the funder of the two projects. “This is a clear demonstration of African Rainbow Energy’s and partners, Absa, DBSA, Nedbank and Standard Bank...

Mining Weekly Editor Martin Creamer discusses Pan African Resources effectively building an underground gold mine at Evander; Menar seeing good prospects for anthracite; and the upcoming Southern African Institute of Mining and Metallurgy conference, which will have a large focus on platinum group metals and its importance in achieving a greener world.

Diversified miner Anglo American has issued its first sustainability-linked bond valued at €745-million.

The bond includes performance targets to reduce Scope 1 and 2 greenhouse-gas emissions by 30% by 2030, compared with the 2016 baseline, and freshwater abstraction in scarce areas by 50% by 2030, compared with the 2015 baseline.

Anglo has also set a target to support five jobs off site for every job on site by 2030.

The bond matures in September 2032.

The issuing of the instrument follows Anglo publishing a Sustainability Financing Framework (SFF). Should the group not meet these targets, a higher final coupon payment will be due to the bond investors.

The investors will be owed a coupon increase of 40 basis points accruing from September 2031 for each of the selected key performance indicators that did not achieve its target, or if the verification of the target had not been published.

Anglo’s SFF has been established in alignment with the Sustainability-linked Bond Principles 2020, which is administered by the Loan Market Association.

These are voluntary guidelines that outline best practice for financial instruments to incorporate forward-looking sustainability performance outcomes and promote the development of sustainability-linked bond markets.

The SFF of the company covers bonds, loans and other financing instruments, linking the company’s funding requirements to goals set out in its mine plan.

The prospects for anthracite are looking very good, especially in terms of market value and having demand coming from different parts of the world, says Menar MD Vuslat Bayoglu, who was speaking to Mining Weekly in a Zoom interview. (Also watch attached Creamer Media video.)

Bayoglu reports that many European countries are seeking alternatives to anthracite from Russia, a major anthracite producer, and opportunities are opening up for non-Russian anthracite producers to establish long-term relationships with new markets.

South Africa, which produces about three-million tons of anthracite a year, is one of the countries benefiting from access to new lucrative markets.

Sixty per cent of South African anthracite is exported from Richards Bay and Durban and 40% is used domestically for sintering, ferroalloys, and electrode paste.

Menar, which bought Zululand Anthracite Colliery (ZAC) from mining major Rio Tinto in 2016, is now investing in the development of ZAC’s new Mngeni shaft. ZAC operates an underground narrow-seam operation located in Emakhalathini, about 100 km from Richards Bay in Northern KwaZulu-Natal.

ZAC has continued to supply anthracite to Rio Tinto’s Richards Bay Minerals.

“For us it’s a good operation, it makes money and we have a very good relationship with the community in the area, so we are very happy to have invested in Zululand Anthracite,” says Bayoglu.

ZAC is currently mining from three shafts in five different sections. “The main challenge with ZAC is that the geology is very difficult, it might be the most difficult underground coal mine in South Africa. We have several issues, be it gas or dykes, so production has got lots of challenges.

“Hence, we have find ways of increasing production. We decided to put in a new shaft. We called it Mngeni and after a long timeline we got all the approvals. We’ve started clearing the site and we’re hoping to get the first coal out of Mngeni in March/April next year,” says Bayoglu, who adds the company is continuing to explore the area. This will aid in extending the life-of-mine of ZAC still further and, with that, the extension of jobs and social labour plan benefits in an otherwise poor region of the country, where a large community is dependent on ZAC for water. Water from underground is purified and supplied to about 80 000 people.

Mining Weekly: What’s your assessment of the global anthracite market?

Bayoglu: I think four inter-connected factors will drive the market in the foreseeable future. The first is the race for post-Covid global economic recovery. Major economies – for example, Europe, Asia, China and the United States – are trying hard to avoid a slump and to put their economies at levels better than the pandemic phase.

The second is the ongoing Russian war in Ukraine which has triggered Western sanctions against Russia. European anthracite importers that have previously depended on Russia have searched and discovered replacements elsewhere including in South Africa.

The third factor is the intrinsic value of anthracite. As a high-premium coal with high carbon content, anthracite is suitable for a variety of industrial applications – from steel to electrode paste manufacturing. According to the World Steel Association, about 89% of a blast furnace-basic oxygen furnace’s energy input comes from anthracite, 7% from electricity, 3% from natural gas, and 1% from other gases and sources. In the case of the electric arc furnace route, the energy input from anthracite accounts for 11%, from electricity 50%, from natural gas 38%, and 1% from other sources.

The fourth is possible shortage of coking coal. According to a recently released report by market research company Fortune Business Insights entitled ‘Anthracite Coal Mining Market, 2022-2029’, the global anthracite coal mining market size is set to expand significantly in part due to expectation of global coke shortage. In addition, Macquarie researchers recently projected a deficit for metallurgical coal ...