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Midtier Africa-focused gold producer Pan African Resources is effectively building a new internally-funded underground gold mine on two levels of the Evander underground gold mine in Mpumalanga, CEO Cobus Loots said on Wednesday when the company reported record production for the 12 months to June 30 and distributed more than R400-million in dividends.

A video flighted at the results presentation described Evander as possibly one of the world’s largest unexploited gold orebodies.

The addition of 24 level, and now 25 level and 26 level, has given Evander Mines a life-of-mine of 14 years, with increased expected gold production.

The 25/26 level project will be funded by internal cash flows assuming a reasonable gold price environment.

“The Evander underground has been a real success story for Pan African in recent years and we look forward to ramping up this operation further in the years ahead,” Loots told Mining Weekly in a Zoom interview. (Also watch attached Creamer Media video.)

The underground team, which also delivered an excellent safety performance, produced almost 50 000 oz at the low all-in sustaining cost of $1 100/oz.

The 25 and 26 levels project will require two years of fairly elevated capital to execute and then have the benefit of the expenditure for more than ten years.

The current low-cost Evander 8 Shaft operation is focused on the mining of the shaft pillar, from which high-grade ounces are extracted.

Pan African’s use of underground support packs allows for extraction of the shaft pillar while providing permanent support for the shaft. This allows mining to continue at the lower 24, 25 and 26 levels.

This provides access to more than 500 000 oz of gold using infrastructure that is already in place, which allows the company to reap the benefits of sunk capital spent over a decade of mining.

Experience gained and the many upgrades already completed at Evander underground have laid the groundwork for further quick-payback life extensions, which is good news for its investors, the surrounding communities and supply-chain companies dependent on the mine.

The 24/25 levels project is not only on track to deliver its first production on schedule in 2023 but is paving the way for the provision of 65 000 oz of gold a year for more than eight years – and significantly extends the life of the operation.

“What we're doing at Evander underground is very exciting. Evander underground is certainly not without a checkered past. In 2018, we had to press the reset button and basically put the underground on care and maintenance, and we looked at the options and we then commenced with pillar mining on a shaft pillar at 8 Shaft, and that’s been a fantastic success for Pan African.

“It’s safe, it's generated great cash flows, and it also has allowed us the opportunity of relooking at the design for 24 to 26 level, and [to] come up with development and execution plans, so that’s what we’re busy with now,” Loots told Mining Weekly.

“Two weeks ago, I visited the new fridge plant on 24 level. The F line is ready to be mined on 24 level, and there are a number of improvements. We've changed the layout to an on-reef development layout for 25/26, which means that there'll be very limited waste.

“We’re equipping a ventilation shaft that runs up to 17 level to do hoisting, which means you cut out a massive number of conveyors, so that improves your mine call factor and your ability to produce.

“You have a new fridge plant and new infrastructure close to the face and then a number of other improvements also in terms of ore storage etc. This will be a great operation for us in the years to come. It’s a world class reserve that we have there.

“To top it all off, we obviously have our first solar plant up and running at Elikhulu. It's been a great success for us and we'll expand that solar footprint to also take care of a lot of the underground energy requirements and that's going to also bring down the cost of production,” said Loots.

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Several organised business formations have outlined six recommendations in a joint position statement on carbon tax, which they argue will improve the carbon tax proposals in the Taxation Laws Amendment Bill and “avert unintended consequences”.

Released by the Energy Council of South Africa, Minerals Council South Africa, Business Leadership South Africa, Business Unity South Africa, the South African Petroleum Industry Association and the Energy Intensive Users Group, the joint statement stresses that organised business is supportive of carbon pricing, including the carbon tax, to help decarbonise the economy and facilitate a just transition.

However, the statement argues that the “carbon tax should be implemented at a pace and rate aligned to a developing economy that takes into account the challenges in South Africa including low economic growth, energy security and high unemployment”.

The organisations recommend that yearly carbon tax increases be based on the prevailing consumer price index plus two per cent structure until at least 2030, rather than implementing the National Treasury’s proposal of increasing the carbon tax rate for the 2023 to 2025 tax periods by a minimum of $1/t carbon dioxide-equivalent (CO2e) and increasing thereafter to $20/tCO2e in 2026 and at least to $30/tCO2e in 2030.

During Phase 1 of the implementation period, South Africa’s headline carbon tax base rate was set at R120/tCO2e and, in February, Finance Minister Enoch Godongwana announced that the first phase would be extended for three years.

He also announced that the carbon tax rate had been increased from R134/t to R144/t, and that the carbon tax rate would be progressively increased every year to reach $20/t by 2026 and $30/t in 2030.

“We welcome the extension of Phase 1 and recognise the need to increase the rate of the standalone carbon tax to ensure that South Africa remains protected against border tax adjustments and can attract financing to enable the just transition,” the organised business grouping assert.

However, they add that the South African economy cannot accommodate the steepness of the carbon tax rate increase in the proposed timeframe currently envisaged.

The organised business formations acknowledge that carbon prices are high in other regions, including the European Union and Canada, but stress that these are ameliorated by various allowances, such as free allocations, indirect compensation, subsidies, ringfencing of carbon tax revenues, and funding support for innovation, technology, research and development.

“For South Africa, such support measures/incentives are currently lacking, and we propose that these be explored and introduced in support of decarbonisation.”

The organisations have, thus, called for the enacted allowances to be retained to 2030 and for other supporting policies and measures to be introduced to encourage decarbonisation and growth of low-carbon sectors.

“We are concerned that the 2022 draft Bill does not retain the allowances to mitigate the impact of the rapidly increasing carbon tax proposals.

“To date, these allowances have been instrumental in assisting business sectors requiring support, such as the mining, petrochemical, steel, cement, and other hard-to-abate sectors, from detrimental financial impacts.

“There is therefore a need for greater policy certainty around the retention of allowances,” the joint statement reads.

During the first phase, several tax-free allowances and offsets have been included, which have resulted in a materially lower effective tax rate.

In a recent opinion article published on Daily Maverick, Just Share director Robyn Hugo warned that with such extensive allowances, even a much higher tax rate would be ineffective in driving the change required to ensure urgent decarbonisation.

The third recommendation contained in the statement is for the implementation timelines to be revised on the basis that “business cannot afford the proposed tax rates and simultaneously m...

Platinum group metals (PGMs) as global decarbonisation and environmental, social and governance (ESG) enablers have arguably never been a hotter topic globally, which will be highlighted at the upcoming conference of the Southern African Institute of Mining and Metallurgy (SAIMM) at Sun City on November 2 and 3.

Southern Africa’s PGMs endowment plays hugely into the current global insistence on creating a greener world, which will not be possible without the deployment of the catalytic metals that come out of the PGMs basket.

In addition, the SAIMM will be striving for maximum collaboration during the event, given the far-reaching value chain of PGMs.

“They all play a critical role – in hydrogen, in fuel cells, in all of the future generation metals,” SAIMM mining technical programme chairperson Gary Lane emphasised from London during a Zoom interview with Mining Weekly. (Also watch attached Creamer Media video.)

Ahead of a greener-world-themed eighth International PGMs event, ESG and sustainability (ESGS) have assumed sky-high importance to business and society in the wake of climate change destruction, ever-widening inequality, global uncertainty and increasing economic risk.

A key speaker at the event is past SAIMM president and current chairperson of the ESGS interest group, Gordon Smith, who is of the view that ESGS needs to achieve the same status as safety.

“Ultimately, ESGS, or responsible mining, needs to achieve the same status as safety and become a fundamental part of our mining DNA, and the way we behave as professionals,” is a point Smith drives home forcefully.

Other key speakers include Anglo American Platinum’s Fahmida Smith, who will talk on the role that PGMs will play in our future world, along with the social requirements of the future world.

Dr Tsakani Mthombeni, executive: sustainable development at Implats, will be talking about ESG and beyond, Anglo American’s Stephen Bullock will focus on how PGMs play into the circular economy, and SFA Oxford CEO Henk de Hoop will show how the different players rank against each other in the ESG world.

A function at Sun City’s Valley of the Waves is designed to provide maximum opportunity for people to interact and converse, which is viewed as crucial at this time of global green momentum.

Mining Weekly: What does the conference aim to achieve in relation to the current state of the PGMs industry?

The SAIMM is 125 years old and we've looked at reinventing what the SAIMM stands for, and one of the key things is around collaboration. Key is bringing parties together, because there's the integration of the mining value chain from the suppliers through to fuel cells downstream and research, so the conference aims to bring people together to collaborate and talk to also open people's eyes to what the potential is. Historically, the conference has been very focused on the mining side but the value stream of PGMs is long, right from the mining of underground or opencast PGMs, all the way to the downstream beneficiation uses of the different metals, the research being done. It's bringing all those parties together to focus on the whole value stream and the benefits to South Africa in the PGMs industry, because if we’ve got more than 80% of the known PGM reserves in the world, and the PGMs are really the only true 100% green decarbonisation avenue, imagine the opportunity if we were very much more strategic around the positioning of the country on the fuel cells, on the generation of hydrogen, so very much about collaboration.

What sort of green flags will you be flying at the eighth International PGMs conference to emphasise your green theme?

We’ve got quite a number of really good speakers in the first session and which runs for most of the first day, all around ESG, the circular economy, the impact of ESG, talking about how PGMs fit into the future world. You'll find all the speakers are all focused on the greener world, the role only PGMs play in hydrogen generation, i...

A Proudly South African green hydrogen mobile solution, which is scheduled to be launched at the African Aerospace and Defence Exhibition (AAD) next month, ticks all the local boxes by making use of a platinum-catalysed hydrogen proton exchange membrane fuel cell (PEMFC) and also being able to accommodate PEM electrolyser technology if need be.

Built in response to local and international demand to meet the need for alternative energy solutions, GESS can provide 230 kWh of electrical power to remote and isolated locations, delivered by solar photovoltaic panels, lithium-ion batteries and the PEMFC.

“We decided to channel our expertise, dedication and attention to developing green hydrogen solutions, which resulted in the development of South Africa’s first green hydrogen mobile solution and becoming the green powerhouse in South Africa,” Rheinmetall Denel Munition stated in its invitation to Engineering News & Mining Weekly to attend the launch at AAD on September 21.

The company, which is jointly owned by Rheinmetall Waffe Munition GmbH (51%) of Germany and Denel South Africa, is best known in munition and plant engineering circles, having been established in 2008 when Denel’s Somchem, Swartklip and Naschem became part of the group.

The complete modular, self-sustaining, renewable decentralised energy solution is specifically designed to be adaptable to client-specific requirements.

It is easily transported between locations, does not rely on external infrastructure, and is sufficiently robust to be operated in several geographical locations.

The units can be optimised for maximum hydrogen production in the event of a preference for green chemical production rather than decentralised energy.

“We will target both the commercial and defence market. We are also designing a similar system for field hospitals and clinics in remote lactations, which will be able to provide medical grade oxygen as an additional product,” the company stated.

The different decentralised energy and green chemical production units will be designed in Somerset West, Cape Town, whereas the various different system integration functions and over-all system manufacturing will be executed in Boskop, Potchefstroom.

Although the green hydrogen is predominately produced through electrolysis by an alkaline electrolyser, a platinum-group-metals-using PEM electrolyser can also be used.

The unit is designed in such a manner that one can modify each component to accommodate more efficient technology becoming available. Hence, this system can accommodate renewable electricity produced from wind and/or hydropower if available at a particular site.

Multinational mining and mineral processing equipment manufacturer Sandvik launched its new high-tech head office facility, workshop and manufacturing complex today in Kempton Park, east of Johannesburg, on September 9.

The facility was officially opened by President Cyril Ramaphosa.

The launch of Sandvik’s Khomanani facility is a fulfillment of the industrial giant’s investment pledge of R350-million, made at the fourth South African Investment Conference six months ago.

“Government is hard at work to create the conditions that will enable businesses – both big and small – to emerge, to grow, to access new markets, to create new products and to hire more employees. The establishment of this facility is testament to that commitment,” Ramaphosa said.

The Khomanani manufacturing site is one of Sandvik’s biggest and most advanced facilities globally, consolidating operations previously undertaken at five separate sites and accommodating 550 employees.

For the first time ever, the company now has its soft rock, hard rock and surface businesses all under one roof. Khomanani, which occupies a 62 000 m2 site, can produce underground loaders with over 60% local content, allowing them to be designated as ‘Proudly South African’.

Acting VP of Sandvik Southern Africa’s sales area Reinhard Reinartz said Sandvik's mining divisions supply the industry’s needs with equipment, parts and services, with the aim to fuel growth in a sustainable way.

“Our role is not only as an original-equipment manufacturer (OEM) to our customers, but also to be good corporate citizens. Hence, we are investing in localisation, and this new assembly facility relocates activities from China and Finland to South Africa,” he stated.

Localisation is a cornerstone of Sandvik’s operations, which supports government’s aim to build domestic production capacity to supply local and foreign markets, to support broader economic development and to create more jobs.

The investment by Sandvik in local manufacturing capacity is an important vote of confidence in South Africa and its mining sector, the President noted.

“With industrialisation and manufacturing being essential pillars of South Africa’s Economic Reconstruction and Recovery Plan, it is gratifying to see this commitment turned into reality here in Gauteng,” he said.

Reinartz said the decision to invest in South Africa was a simple one. “South Africa is still one of the biggest mining markets in the world, with resources including coal, platinum group metals, gold and iron-ore. With both surface and underground mining, there is no question about investing here,” he enthused.

The expansion of local production will make South Africa’s economy more inclusive and create more opportunities for new entrants into the industrial sector.

Greater investment in mining, localisation and beneficiation all contribute to extending mine life, to increasing mining exports, to skills development and to the creation of employment.

The President pointed out that the mining machinery and equipment sector also has significant linkages into other parts of the economy.

The companies supplying equipment to the mining industry have important backward linkages to major assembly suppliers, sub-assembly and parts suppliers, specialist component suppliers and raw material suppliers.

“Increasing local production will contribute significantly to the revival of South Africa’s manufacturing industry,” he said.

The machines being assembled at Khomanani are the 12 t LS312 flameproof loader for underground coal operations, as well as the LH115 and LH208 loaders, respectively of 5.5 t and 7.7 t capacity, for underground hard rock mining.

Not only are these machines being supplied to the Southern African market but Sandvik can also export them. They are produced to the exact same quality standards as Sandvik machines manufactured at its overseas factories. Moreover, the company is able to produce them at a cost which is very competitive by global standa...

The future quantum of global demand for platinum group metals (PGMs) significantly outweighs global supply from 2023 onwards, the latest review carried out by independent precious metals consultant Dr David Davis indicates.

Compiled for Auctus Metal Portfolios of Singapore, the review illustrates a comprehensive picture of platinum supply/demand estimates between 2022 and 2050, which in some respects “puts the cat among the pigeons”, says Davis, who has been associated with the South African mining industry and mining investment industry for the past 45 years. (Also see attached supply/demand graphic.)

The review points to a decline in global PGMs supply from particularly South Africa and Russia and highlights the mismatch that is developing between the future quantum of platinum supply and demand amid the pursuit of decarbonisation on a global scale.

South African platinum mine supply is calculated to be declining at a compound annual growth rate of about -1.4% over the long term and Davis’s view is that the projected decline in global platinum mine supply is not being given the attention it deserves.

MAJOR IRIDIUM THRIFTING NEEDED

Davis concurs with the International Energy Agency that the content of the PGMs metal iridium will need to be slashed by 80% to 90% to support proton exchange membrane (PEM) water electrolysers used to produce green hydrogen, which is in growing demand.

In addition, technology will need to be advanced to achieve an anode catalyst loading of 0.05 gIr/kW or lower.

PEM water electrolyser recycling and iridium recovery infrastructure will also need to achieve end-of-life recycling rates of 90%.

To meet the needs of the transition from internal combustion engines, platinum loading in fuel cells (FCs) will also have to be drastically reduced for fuel cell electric vehicles (FCEVs), let alone trains, ships, stationary applications, PEM electrolysers and other uses.

Additional thrifting of FC platinum loading to 2gPt/kW and below is required.

GREEN HYDROGEN PILLAR

Davis notes in the release to Mining Weekly that green hydrogen has become a key pillar of decarbonisation for industry in the same way as platinum is inextricably linked to vehicle emission standards, which have been progressively tightened through regulation worldwide since 1970.

Europe is boosting its green hydrogen ambitions as it looks to secure energy independence and has increased targets for production and imports of green hydrogen by 15-million tonnes a year.

A Siemens illustration displayed shows 20 collective applications for green hydrogen in the chemical and electrical industries ranging from steel, food, green fertilisers to heat pumps, planes and ships.

“It becomes obvious that global PGM mine supply, particularly platinum mine and secondary recycling supply, will not be able to support both substitution and additional platinum loadings, notwithstanding the additional platinum required for FC, FCEV, PEM electrolysers, green hydrogen and other transport and industry sectors,” says Davis, who adds that China’s continuous platinum buying will further contribute to upward price pressure as platinum supply dwindles.

PGMS CENTRE LAUNCHED IN SHANGHAI

As reported this week by Mining Weekly, a new trade and technology centre dedicated to the growth of the PGMs market is being established in China, already the single largest consumer of PGMs, accounting for more than 25% of total demand.

Anglo American, Honeywell and the World Platinum Investment Council (WPIC) were among close to 70 organisations that signed strategic cooperation agreements with the Lin-Gang Group and other related parties in support of the Platinum and Precious Metals Centre, or PPMC, which is being established in the Lin-Gang Special Area of Shanghai. The Lin-Gang Group is a State-owned developer of industrial parks.

PPMC is made up of a PGMs research institute, venture capital fund, industrial park and offshore trading market, which will be developed in sequence to su...

As a platinum group metals (PGM) producer, Impala Platinum is excited about the opportunity of hydrogen as a potential new demand source, says Impala Platinum executive new commodities Seten Naidoo.

“The exciting component for us is actually the green hydrogen,” says Naidoo, who was speaking as a panel member at this week’s Hydrogen Economy Discussion.

“We’re looking at around 2.5-million ounces of PGMs by 2040 and breaking that down, you can allocate about one million ounces to fuel cells, 500 000 oz to 700 000 oz to electrolysers and another 700 000 oz to a million ounces that could potentially find its way into the storage market,” he estimates.

Implats is committed to a five-year, R50-billion capital investment programme to extend life-of-mine development at several of its operations, increase beneficiation capacity, strengthen energy security and ensure the group meets its decarbonisation targets.

“It’s a bit of a chicken-and-egg scenario. If we want the hydrogen economy to become a new PGM demand source and grow, we can’t make the industry nervous about supply.

“So, Impala Platinum as well as our peers, are all on the path of not cutting back production. We’re wanting to keep it at the same level or in time increase it in certain metals,” says Naidoo.

“There is significant potential for platinum group metals (PGMs) as a result of green hydrogen gaining momentum as a key element in the successful energy transition,” says Deloitte senior manager energy Jandre Bezuidenhout, who served as chair of the panel that included Isondo Precious Metals CEO Vinay Somera, Mitsubishi Corporation business development head Dr Jonathan Butler, and Hystar sales and applications engineering head Tina Andersen.

London-based Butler, who specialises in the sales and marketing of PGMs, is closely involved with Mitsubishi’s new hydrogen industry thrust.

“The first thing to remember, when we talk about PGMs and the hydrogen economy, is that we’re not just talking about fuel cells and electrolysis, but we’re talking about PGMs touching pretty much the entire hydrogen value chain, that is from upstream electrolysis to hydrogen, distribution, and storage, and to electrical downstream use.

“On the upstream side, PEM electrolysis is a big user of platinum and iridium, but also alkaline technology which utilises ruthenium. There’s seawater electrolysis, which uses platinum and iridium.

“Then there’s liquid organic hydrogen carriers and then to extract the hydrogen at the other end. The we get to fuel cells and that is where the volume is right now, but there is also hydrogen peroxide and utilizing the building blocks of the entire chemical value chain using PGMs, whether that be from electrolysis.

“Suppliers of PGMs need to give those in the market confidence that PGM prices are not going to fly away from them,” says Butler.

Somera, as the founder and CEO of Isondo, a South African PGM technology company focused on the producing membrane electrode assemblies and PGM catalysts for fuel cells and electrolysers, as well as the recycling of these parts back into their core PGM constituents, reports that his company is also working to deploy three hydrogen refueling stations for hydrogen fuel cell buses and trucks, based on access to seven tons of hydrogen a day in the Johannesburg area.

Isondo has a state-of-the-art facility being developed at OR Tambo special economic zone and has positioned itself to be at the same level of technological expertise as the world’s best.

“Our facility will be similar in size to what they’re doing in China and at the same level of quality as well. It is designed holistically around the processes utilising the latest development in the field so we can be the most modern in the natural skills sense,” Somera reveals.

“Great things are coming. I’ve got 100% confidence in that,” says Bezuidenhout.

Andersen is part of an organisation that ultimately aims to develop the world’s most efficient PEM electrolysers, which are key enab...

Aim-listed Sylvania’s Dump Operations (SDO) achieved a solid production performance of 67 053 oz of platinum, palladium, rhodium and gold (4E) platinum group metals (PGMs) for the financial year ended June 30.

This was in line with its production targets and notable given that it was a turbulent year with macroeconomic challenges, CEO Jaco Prinsloo says.

“A key contributor to achieving this result was the stellar performance of the Tweefontein plant, which achieved monthly, quarterly, six-monthly and annual production records during the period.

“Furthermore, and no less stellar, our Doornbosch plant achieved ten-years lost-time-injury-free in June and was awarded the 'Best-in-class Safety Performance' commendation by the Mine Metallurgical Managers Association of South Africa,” Prinsloo acclaims.

“Strong effort was put in by all production teams and the newly commissioned [milling and flotation (MF2)] circuit at Lesedi, as well as the improvement in run-of-mine (RoM) PGMs grade received from the host mine in the last half of the year, assisted the group to deliver ounces in the mid-range of its stated production target,” Prinsloo adds.

The new Lesedi tailings storage facility was successfully commissioned during March, with optimisation of the Lesedi MF2 plant continuing.

The MF2 expansion at Tweefontein is on track to start commissioning and to start contributing PGM ounces during December.

Following the successful roll-out of MF2 and ultra-fine screening circuits at various operations since 2017, this technology is now also being implemented at Lannex, with commissioning scheduled towards the end of the 2023 calendar year.

For the period, Sylvania achieved net revenue of $151.9-million, group earnings before interest, taxes, depreciation and amortisation of $82.8-million and a net profit of $56.2-million.

It had a positive group cash balance of $121.3-million with no debt and no pipeline financing.

Sylvania bought back 6.6-million shares in the market, equating to $7.1-million and cancelled six-million shares.

The lower PGM feed grades and recovery potential associated with the considerable increase in opencast RoM sources during the period impacted on both PGMs production and operating costs for most of the year.

The effect of high global inflation and economic uncertainty continues to impact the cost of reagents, fuel and transport.

“Clearly, commodity pricing has been more volatile than we have seen for some time, with a 23% decrease in the average basket price received, which impacted our overall financial results for the year. However, looking forward I am optimistic about the uptick displayed in the chrome market.

“The impact of higher global cost inflation is inevitable, and we continue to maintain prudent cash management with disciplined capital allocation and control, as well as production cost control.

“This ensures that the company remains in a position with sufficient cash reserves to cover working capital for the pipeline period, finance capital projects, fund growth and exploration and mitigate any potential future adverse impacts it may face,” Prinsloo outlines.

Sylvania has declared a yearly cash dividend of 8p an ordinary share for the full year. A windfall dividend of 2.25p an ordinary share was declared and paid in April.

“Looking ahead, I am confident that our operations will continue to deliver a strong production performance and, as a consequence, [we] have set an annual production target of 68 000 oz to 70 000 oz [of 4E PGMs] for the year ahead,” informs Prinsloo.

Back-up power supply systems will be implemented at the three most affected operations during the next year to mitigate any potential power supply disruptions associated with either vandalism of power supply infrastructure or potential load-shedding by national power utility Eskom.

Post-period end, all of the conditions precedent for the sale of 100% of the shares in, and claims against Grasvally Chrome Mine, to Forward Africa Mining, have...

Platinum group metals (PGMs) miner Anglo American Platinum (Amplats) has revised its full-year refined production guidance lower, as its quality assurance processes have detected the delivery of substandard materials for the Polokwane smelter rebuild.

Delivery of replacement materials will result in a two-month delay to the completion of the project.

As a result, there will be a build-up in work-in-progress inventory this year and a short-term timing impact to refined PGMs production.

The company has, therefore, lowered its full-year refined production guidance to between 3.7-million and 3.9-million ounces of PGMs, from the previous guidance of 4-million to 4.4-million ounces of PGMs.

Sales guidance will be revised in line with refined production.

There is no impact to metal-in-concentrate guidance which remains at between 3.9-million and 4.3-million ounces of PGMs and unit cost guidance remains at between R14 000 and R15 000 a PGM ounce.

“As we undergo our first full rebuild of the Polokwane smelter in 12 years, our quality assurance processes identified a defective consignment of materials required to complete the rebuild.

“We remain committed to ensuring the structural integrity of our Polokwane smelter, with high standards embedded into the rebuild to ensure asset integrity and the longevity of this operation.

“We will not compromise on safety or quality and, therefore, the defective materials will not be used, and a new consignment of materials is expected to be delivered by the end of October,” says Amplats CEO Natascha Viljoen.

“Work has commenced to find solutions to mitigate the impact on refined production this year,” she adds.

The Industrial Development Corporation of South Africa (IDC) has struck a deal with copper developer Orion Minerals to fund 43.75% of the pre-development costs and facilitate black economic enterprise (BEE) ownership at the Okiep project, in South Africa.

Under the terms of the agreement, the IDC will become a major shareholder in the New Okiep Mining Company (NOM), alongside Orion, which will hold 56.25% of NOM’s ordinary shares.

On becoming a shareholder, the IDC will advance its share of the R79.03-million total budgeted pre-development operating costs of the NOM.

Orion MD and CEO Errol Smart said with Orion already having contributed R44.58-million, representing 56.25% of the pro-rata total pre-development budget, the IDC has now agreed on the key commercial terms on which it will fund the balance of the budget to complete feasibility studies by June 2023.

“Following hard on the heels of last week’s announcement regarding the grant of the South African Tantalum Mining (SAFTA) Mining Right for the Flat Mines area at Okiep, we are delighted to have reached agreement on the key principles for both the inclusion of Mining Charter 2018 historically disadvantaged South African (HDSA) structures and for the IDC to contribute 43.75% of the total budgeted pre-development costs for NOM, marking a significant step towards the broader commercial development of the Okiep copper project,” said Smart.

“Having also received the long-awaited grant of the mining right to the core area, we are finally able to complete the required drilling and metallurgical sampling to finalise the optimisation of the feasibility studies which are already well advanced.

“The future ownership of NOM with high quality development partners, such as the IDC, Lulamile Xate and our employees and host community, puts the Okiep project on a very solid footing for the near-term development of what we expect to be a very exciting, brownfields copper mining project.”

Orion and the IDC anticipate finalising and executing the definitive agreements for the IDC share acquisition and pre-development funding arrangements by the end of September 2022, with the IDC funding to flow during October 2022, subject to fulfilment of conditions precedent standard for such arrangements.

The IDC funding of pre-development costs in the amount of R34.5-million will be advanced to NOM on the same terms as the pre-development funding amount of R44.4-million already advanced by Orion to NOM.

A 2021 scoping study into the project estimated that the 780 000 t/y operation could have a mine life of nearly 12 years, producing 386 000 t/y of copper concentrate. The study estimated that the project would require a capital investment of A$53-million, and would have a post-tax net present value of A$114-million and an internal rate of return of 37%.

Feasibility studies to upgrade the scoping study economics are well advanced, and targeted for completion in the third quarter of next year.