Diversified miners Glencore and Managem have entered into a partnership to produce cobalt from recycled cobalt, nickel and lithium at Managem’s Compagnie de Tifnout Tiranimine (CTT) hydrometallurgical refinery in Morocco.

Glencore and CTT intend to enter into a five-year tolling agreement for 1 200 t/y of recycled cobalt, as well as nickel hydroxide and lithium carbonate.

The partnership forms part of Glencore and Managem’s commitments to support the electric vehicle industry in achieving its metals recycling targets.

The partnership is conditional on a feasibility study to assess the commercial viability of modifying and deploying the CTT refinery for recovering cobalt, nickel and lithium from black mass – a refinery feed comprised of recycled lithium-ion batteries.

The feasibility study will focus on achieving high recoveries and a low carbon footprint. It is expected to be completed by the end of the first quarter.

Glencore will leverage its long-established ability in sourcing and recycling cobalt and nickel-bearing products at its Canadian (Sudbury) and Norwegian (Nikkelverk) operations to supply cobalt-containing black mass to the CTT refinery.

Managem will provide the lithium-ion batteries recycling technology developed and tested in the pilot plant at the Reminex research and development centre. This technology enables a high recovery rate of cobalt, nickel and lithium from black mass.

Managem chairperson and CEO Imad Toumi says demand for cobalt is expected to increase significantly in the next decade, largely driven by the green energy transition.

“Most actors in the supply chain seek to ensure sustainably sourced materials and we strongly believe recycling will play a crucial role in addressing this demand.

“Managem is fully engaged in supporting the global circular economy through cobalt, nickel and lithium at the same time as mining cobalt with the highest corporate social responsibility standards.

“This partnership with Glencore represents an exciting step up in our development in this field,” he says.

“As the world seeks to address the challenge of climate change, primary/recycled cobalt and other future-facing commodities are set to play a pivotal role in decarbonising energy consumption and delivering the electric vehicle revolution,” says Glencore head cobalt trader David Brocas.

Meanwhile, the CTT hydrometallurgical plant will benefit from at least 90% wind-generated power.

Glencore will market the recycled products to its global network of portable electronics and automotive customers, as part of its continued commitment to support the transition to a low carbon economy, and to realise its own ambition of net-zero total emissions by 2050.

In terms of high-level outcomes, the vision of South Africa’s Hydrogen Society Roadmap is the creation of an inclusive, sustainable and competitive hydrogen economy to support net-zero carbon economic growth and societal well-being, Department of Science and Innovation (DSI) chief director hydrogen and energy Dr Rebecca Maserumule said on Monday.

Speaking at the North West Provincial Mining and Energy Investment Conference on Wednesday, Maserumule spoke of the Department of Mineral Resources and Energy doing work on the ‘just energy transition’ and contributing to the Hydrogen Society Roadmap, which the DSI is leading. (Also watch attached Creamer Media video.)

Maserumule told the conference, covered by Mining Weekly, that lots of conversations were taking place around the hydrogen economy and how South Africans can benefit from it.

The purpose of Wednesday’s discussion, she said, was to look at what is taking place in the hydrogen economy, and its ability to create jobs, impact youth and benefit North West, which is responsible for 45% of global platinum group metals (PGMs) that play key roles in hydrogen’s generation and use.

She highlighted how South Africa not only had one of the world’s best solar resources, and prime wind resources boosted by a three-sided ocean coastline, but was also endowed with 75% of the world’s PGMs that are so closely linked to going green.

What is more, policies were being developed by South Africa to ensure that this happens.

“Our journey started more than 15 years ago when the Cabinet at that point in time decided to pursue the hydrogen economy. This tells you that policy is a very important thing. It leads and guides us in the right direction,” Maserumule told the conference.

She recalled how 15 years ago, South Africa’s leadership initiated a programme of action to generate PGMs-linked wealth for South Africans.

“The national hydrogen strategy was to develop the necessary skills for a hydrogen economy in South Africa, which has been successfully achieved,” she affirmed.

Subsequently, the Department of Transport had developed the green transport strategy that opens the way for hydrogen fuel cell electric vehicles to play a decarbonising role.

More recently, the Department of Trade, Industry and Competition (DTIC) had come to the party with its green commercialisation strategy, and the DMRE with its ‘just energy transition’ and contribution to the DSI-championed hydrogen society roadmap.

Maserumule highlighted the roadmap’s societal well-being as equating to jobs, industrial development and, more importantly, cross-country economic growth that would not be centred in areas like Gauteng, the Western Cape and KwaZulu-Natal, but also in Limpopo and Northern Cape, with the North West leading the charge in the movement towards a hydrogen economy.

Engagements have taken place with close to 50 organisations, beginning with State-owned enterprises such as Eskom, Transnet and the Central Energy Fund, and extending to government departments such as the DMRE, Defence, Transport, Public Works; numerous private sector companies, including Anglo American, Sasol, Engie, Mitochondria, and the women-led Bambili Energy; and civil society organisations taking in the National Youth Development Agency and other youth industry associations.

“The youth are going to be front and centre of this transition,” she emphasised. “And I would say we had a roundtable, so no one’s view was more important than others – and that was really important because in most cases you find that certain voices are muted in the discussions, and that out of that, as a country, these are our priorities.

“The first priority is decarbonising transport, with a focus on roads, in part because road is responsible for 98% of emissions. So, we didn’t look at rail or shipping, but we focused on road, and the Department of Transport will lead that transition, and that process, supported by other departments,” Maserumule said.

The second outcome is t...

The Department of Mineral Resources and Energy (DMRE), together with the provincial government of North West, are increasing efforts to garner investment into and effect transformation in the province’s mining sector.

Speaking during a North West Mining and Energy Investment conference on January 25, Mineral Resources and Energy Minister Gwede Mantashe said government is aiming to create a North West, Limpopo and Northern Cape corridor of mining.

An initial Limpopo Mining Investment Conference was held in September last year.

The Minister noted that these provinces hold potential for a massive mining region, comparable to the workings of Western Australia, which is the “head office” for mining in Australia.

Mantashe pointed out that the Bushveld Complex, located in North West and Limpopo, is abundant in mineral resources of the future, including rare earths, nickel, zinc, chrome, vanadium and platinum group metals, which will increasingly be in demand as the world strives for lower carbon emissions.

He stressed the importance of encouraging investment into smaller companies that have acquired mothballed operations owing to low grades and that are able to extract these otherwise unviable resources.

“It must be part of the strategy of the mining sector to hand over remaining resources and infrastructure to smaller companies, to avoid sterilising resources and to encourage small business development.”

He added that to effect more sustainable transformation and economic growth in communities, mining companies in an area must pool resources and implement bigger projects for the economic prosperity of previously disadvantaged individuals, instead of donating single community halls or sports fields, as part of social and labour plans.

“In turn, these individuals and empowered companies must appreciate that wealth is not a gift from Father Christmas, but an opportunity to participate in building economic prosperity through challenges and growing pains.

“No one is entitled to any business, but everyone has a right to economic activity,” Mantashe said.

During his address at the conference, North West Premier Kaobitsa Bushy Maape echoed the Minister’s sentiment, stating that social and labour plans must be comprehensively and constructively implemented – with mining companies and investors not treating it as a box-ticking exercise.

He issued a clarion call for a “new patriotism” saying we can not be passive in the presence of suffering.

“The socioeconomic problems of poverty, unemployment, hunger and inequality are not going away, instead they are intensifying. We have to join hands as government, labour, business and civil society to form a real formidable front and create a better future for all.”

From government’s side, Maape mentioned that the province had launched an Accelerated Service Delivery programme to ensure basic services are provided not just to communities but also to industry.

“We are working with the relevant national departments, entities and municipalities to ensure that we provide much-needed services. We have also set up a task team alongside the North West Chamber of Commerce and Industry to identify problems and devise solutions related to service delivery in the province, including water provision.”

He noted that, coming out of the elections last year, newly elected mayors are settling into their responsibilities and the province is meeting with them regularly to discuss service delivery prerogatives.

While Maape pointed out the need for more beneficiation in the province, especially from existing mining companies, Mantashe admitted that, with the high price of electricity in South Africa, it often costs producers more to make products than they earn from exporting those products.

Mantashe said that, as the country continues to mobilise investment, government remains mindful of the mitigating mindset encouraged by the risks associated with energy poverty, climate change realities and the high electricity tariff...

Premium grade copper producer Big Tree Copper plans to list on the JSE and/or the Cape Town Stock Exchange (CTSE) in the first half of 2022 as it marches towards full production.

The company’s business centres on recycling previously dumped mining waste through above-ground processing at the decommissioned Okiep copper mine, now the site plant in Nababeep, in the Northern Cape.

A natural by-product of the operation is the rehabilitation of the area.

As reported by Mining Weekly on May 28, 2021, Big Tree Copper initially planned to list on ZARX in October last year but was forced to reconsider after the Financial Sector Conduct Authority suspended the ZARX exchange licence over liquidity and capital adequacy concerns in August.

The original listing date last year was also delayed because Big Tree decided to prioritise ensuring production capability.

Big Tree CEO Jan Nelson told Mining Weekly at a media briefing in Johannesburg, on January 25 that the company was now considering listing on either the JSE, or the CTSE or both, although a final decision had not been made yet.

He explained that the listing would be geared towards raising enough capital to further expand operations.

Nelson noted that listing offshore would be expensive and would divert funds out of the country, which he believed was counterproductive. Therefore, Big Tree would not list on foreign exchanges such as Aim unless it added significant value.

For the time being, the company plans to only list on a local stock exchange.

Once listed, the company would offer its employees and the local community about 15% shares in the business “without any strings attached”, Nelson said. He insisted that this decision was not made out of legal compulsion but rather a desire to “leave a legacy”.

“Irrespective of what the law tells us, we will do what’s right,” he said.

Big Tree is a mine dump retreatment business – not a mine – which means it is not subject to the Mineral and Petroleum Resources Development Act and, therefore, is not obligated to engage with communities like a mining company would.

Rather the company is subject to the Occupational Health and Safety Act like any other business.

The company has employed more than 90 people from the local Nababeep community over the past six months. Nelson said more locals would be employed as operations expanded.

“If we look after our community, they will look after our business,” Nelson said.

OPERATIONS

Big Tree started building a processing plant in September 2019 and produced its first copper plate in October 2020 as a proof of concept for investors.

After securing further funding, the processing plant was upgraded to include a solvent extraction and electrowinning (SX-EW) technology and a filter press. It is the only SX-EW plant in South Africa that has been purpose-built for copper production.

The upgrading of the plant started in November 2020 and was completed in June 2021.

From July to December 2021, the plant was successfully commissioned.

The copper plates produced are about 99.899% pure copper and are sold under an offtake agreement to trader Noble Metals at the mine gate.

Nelson said production was ramping up to reach a target of about 87 t a month of copper over the next three months. This increase will be funded from working capital.

Over the following two years, $4-million will be raised to fund further expansions to the plant, to increase output to about 333 t a month of copper.

Nelson noted that further plans were in place to raise an additional $5-million to reach 474 t a month of copper about 18 months after that.

The processing plant will be fed by rock dumps within about 500 m for the next five years. Loading and hauling is done by a fleet of three excavators, four dump trucks and two front-end tippers. All machines are owned, operated and maintained on site.

Big Tree also owns the Carolusberg copper tailings dam which contains another estimated 2 880 t of recoverable copper at an expected recovery rate ...

The Richards Bay Coal Terminal (RBCT) last year exported its lowest volume of coal since 1996.

In exporting 58.72-million tons of coal, RBCT was 11-million tons down on what it achieved in 2020 and 18-million tons down on its 77-million-ton budget for the 2021 year.

The target for the upcoming 2022 is 70-million tons.

Of the 11-million tons that it was down on last year’s budget, 1.8-million tons can be ascribed to two overall value-chain shuts totalling 19 days compared with the normal year’s ten days.

In other words, RBCT was 9-million tons down on operational matters impacting the value chain.

“It’s not one of those easy announcements to make for RBCT and Transnet in this year. Just to put it on the table – 2021 has been a very difficult year,” said RBCT chairperson Nosipho Damasane during Tuesday’s media briefing covered by Mining Weekly.

“We experienced a number of challenges and the biggest challenge we experienced as a value chain is the ability to get the coal from the mines to RBCT.

“Cable theft has been a significant matter in terms of what the coal line has been dealt with, and we’ve seen that on a daily, weekly basis throughout the course of last year. Loco availability has been a challenge,” said RBCT CEO Alan Waller. (Also watch attached Creamer Media video.)

“We have been working on a continuous basis from a terminal point of view as well as from an industry point of view, in partnership with Transnet Freight Rail (TFR), to understand how we can work together to understand what these challenges are and how we can contribute where required to assist in trying to improve the overall efficiencies. We have worked together on security issues and that process kicked off in October last year,” said Waller.

“We have definitely seen some gains and the true gains we’ve only started seeing now in January. The result where we find ourselves at this stage is that it’s really what the industry has brought to the party as additional resources.

“We have partnered with existing service providers that TFR use and at this stage industry and existing service providers, and the increased capacity that has been put on the line, are looking at the night shift on the security of the 750 km of the coal line. This doesn’t go all the way through to the Waterberg. It just goes to the Mpumalanga area, and we’re covering that in terms of the six-to-six shift at night, and then Transnet have doubled up on their security service providers on the day shift.

“We definitely, in January, are seeing some significant improvements in this regard, but it is a continuous battle and there are initiatives that are ongoing, still within the security area, to look at how we improve the issue. But it is a battle that we are winning at this stage,” said Waller.

Damasane emphasised the importance of the partnership that RBCT has had with TFR and Transnet National Ports Authority since 2012, which is resulting in joint initiatives resulting in claw back and recovery as a corridor.

Located in KwaZulu-Natal, RBCT, which loaded only 645 vessels in 2021 compared with 907 in 2017, is owned by a consortium of shareholding coal companies. The terminal received coal from 65 collieries, with ten active junior miners contributing 3.5-million tons. Four-million tons of RBCT’s 91-million ton capacity is allocated to junior miners in terms of a programme guided by the Department of Mineral Resources and Energy.

Vessel turnaround time moved out from 34 hours to 39 hours, partially influenced by vessel sizes. The increased number of Cape-sized vessels in 2021 assists with the efficiency of the terminal and is favoured, but they take slightly longer to load. Cape-sized vessels have risen to half from 39%.

RBCT has 98 stockpiles of coal at the terminal and with the low stock levels it was having to clear up to 25 stockpiles a month, whereas the 77-million-ton rate normally involves clearing about 15 stockpiles a month.

“Although the terminal per se is not affected by all th...

TSX-listed Ivanhoe Mines reports that the 3.8-million-tonne-a-year Phase 2 concentrator plant at its 39.6%-owned Kamoa-Kakula project in the Democratic Republic of Congo is expected to be 93% complete by January 31, with hot commissioning of the concentrator on track to start in April.

Ivanhoe co-chairpersons Robert Friedland and Yufeng “Miles” Sun note that this schedule is at the front end of its previous guidance of the second quarter, as well as several months ahead of the original schedule.

Hot commissioning involves introducing first ore into the plant at a reduced feed rate to set equipment parameters and test performance, with the feed rate being subsequently steadily increased.

The first copper concentrate produced from the Phase 2 plant is expected about one week after ore is fed into the ball mills.

The Phase 2 plant is identical to the 3.8-million-tonne-a-year Phase 1 concentrator plant and, as such, a faster ramp-up profile is expected, with the added benefit of operational knowledge gained during the commissioning of Phase 1.

Ivanhoe reports that the Phase 1 concentrator reached monthly design throughput during September 2021, which was the fourth full month of operation. First ore was introduced into Kamoa Copper’s Phase 1 concentrator plant on May 20, 2021, and first concentrate was produced from the Phase 1 plant on May 25.

The Phase 1 concentrator is currently running at a throughput in excess of its design capacity by more than 15%, with 117% of design throughput achieved in December.

Copper recoveries also are being achieved that are in excess of design recovery of 86%, depending on feed grade, with December’s recoveries about 2% higher.

Going forward, a dedicated project team has been appointed to de-bottleneck both the Phase 1 and Phase 2 concentrators after the latter’s commissioning, with targeted improvements aimed at increasing plant throughput from the design of 7.6-million tonnes a year, to nine-million tonnes a year – producing up to 450 000 t/y of copper in concentrate from the first two plants once steady-state is achieved.

Meanwhile, production guidance for the Kamoa-Kakula copper complex this year is between 290 000 t and 340 000 t of copper in concentrate.

“Kamoa-Kakula represents only the beginning of our undertaking to unlock the potential of this remarkable new copper province, which has the unique combination of outstanding scale, grade, mine life, and environmental, social, and governance credentials,” says Friedland.

MARK FARREN RETIREMENT

Along with the commissioning of the Phase 2 expansion, Kamoa Copper CEO Mark Farren has announced his retirement.

Ivanhoe has started the process of identifying his successor.

Farren first joined Ivanhoe in June 2014 as operations executive VP, before his appointment as Kamoa Copper CEO in October 2019 – a position in which he oversaw the construction, commissioning and operation of the Phase 1 mine and concentrator at Kamoa-Kakula, as well as the project’s Phase 2 and 3 expansions.

“[Farren] has accomplished a great deal during his time with Ivanhoe and Kamoa Copper, including delivering the Phase 1 project on budget and ahead of schedule in an unprecedented macroeconomic environment.

“Under his watch, the Phase 1 ramp-up was exceptionally smooth, and the Phase 2 expansion project is running ahead of schedule. Before he leaves, he will have successfully overseen the development of the Kamoa-Kakula complex into one of the ten largest copper producers on the planet,” says Friedland.

Sun adds that Kamoa-Kakula is an “industry benchmark” because of Farren’s leadership, especially considering the challenges posed by the Covid-19 pandemic. “I salute [Farren’s] significant contributions and wish him continuous success.”

Zijin Mining chairperson Jinghe Chen says Zijin Mining, which also holds a 39.6% interest in Kamoa-Kakula, “sincerely appreciates” Farren’s diligent work and his “magnificent” achievements in transforming the operation into a significant c...

JSE- and NYSE-listed Sibanye-Stillwater has decided to terminate its acquisition of the Santa Rita nickel and Serrote copper mines, both in Brazil, from Appian Capital for $1-billion and a 5% net smelter royalty over future production.

Sibanye intended to acquire operating companies Atlantic Nickel, which operates the Santa Rita mine, and Mineracao Vale Verder (MVV), which is developing the Serrote mine.

Sibanye explains that, subsequent to the signing of the sale and purchase agreements in October last year, a geotechnical event occurred at Santa Rita, which has been assessed and determined to have a material and adverse impact on the financial condition, the properties, assets, liabilities and operations of the mine.

The MVV deal will also be terminated, as it is conditional on the closing of the Atlantic deal.

Sibanye continues to look at acquisitive growth opportunities in the battery metals space.

Meanwhile, Appian says there is no basis for Sibanye to lawfully terminate the two agreements.

The company notes in a separate statement that the geotechnical event amounts to a localised fracture that occurs in the normal course of openpit operations.

"To remedy the condition of the area in question, some additional waste will need to be mined earlier in the mine plan which equates to less than 1% of the mine’s volume over a 34-year mine life. Appian does not agree that this constitutes a material adverse event," it notes.

According to the company, Santa Rita is expected to have a strong operational and financial performance in 2022 and generate significant free cash flow.

Appian is currently assessing all of its legal options and will take all necessary action to enforce its legal rights.

There are a lot more people looking at platinum as a hard asset and potential hedge against inflation, World Platinum Investment Council director of research Trevor Raymond said on Monday.

Responding to Mining Weekly’s questions on what has been driving platinum up over the last two weeks, Raymond raised the hard asset and hedge view, along with an array of automotive industry developments likely contributing to the platinum price rising well above the $1 000/oz mark. (Also watch attached Creamer Media video.)

Raymond spoke in a Zoom interview of the high surplus forecast of 2021 potentially reducing quite significantly in 2022 owing to factors including:

automotive manufacturers seemingly managing better with the automotive chips that they have at their disposal, which is allowing them to provide more vehicles into the market;

major producers Sibanye-Stillwater and Anglo American Platinum revising production outlook;

metal availability in the market appearing to be tight, despite the surplus forecast;

platinum lease rates rising from 0.1% for the three years prior to the pandemic to over 2% towards the end of December;

indications that fuel cell passenger vehicles might be arriving a little sooner than expected;

growing realisation of the very high carbon footprint required to produce a battery electric vehicle;

Euro 7 and China 6 emission control regulations for internal combustion engines pushing up platinum loadings; and

the recognition that platinum will potentially be in greater demand than might have been recognised.

SURPLUS FORECAST

“What we published in November was a really large surplus of over 750 000 oz for 2021. When we published a forecast for 2022, there was also a surplus of over 600 000 oz. But what we said at the time is that surplus for 2022 could actually reduce quite significantly as new information became available to the market – and I think we’ve started to see some of that,” said Raymond.

“Firstly, we’ve seen some green shoots in the recovery in the automotive industry, the supply chain issues, the shortages of semiconductor chips. There seems to be some softening there and some improvement. Already we’ve seen some of those forecasts increase the amount of light-duty vehicles expected this year by about a million vehicles.

“The other thing is that the automotive manufacturers seem to be managing better with the automotive chips that they have. We know that they are trying everything to meet the strong, pent-up consumer demand and what they’re doing, for example, is that they are delivering vehicles with less features than perhaps those same vehicles perhaps had before,” he said.

Large touch screens have given way to vehicles with much smaller screens being delivered and things such as foot-operated tailgate opening are being dispensed with.

Automakers are finding ways to provide more vehicles into the market.

“The other thing we’re seeing, in December and recently, is that both the major producers Sibanye-Stillwater and Anglo American Platinum have revised their outlook for their production, their mining supply, over the next few years and that seems to be flat to down for the next while.

“So, we think more investors are starting to realise that the spike in production was really the result of the unwinding of that backlog of material that built up due to those converter outages in 2020. We’re seeing some new information flow to the market, certainly putting pressure to reduce that 2022 surplus,” added Raymond.

Mining Weekly: We have seen the price of platinum pick up very nicely over the past two weeks, what do you believe is behind that?

Raymond: Yes, we have seen it. I think the strength is interesting. There are probably two or three main drivers. I think the first is that the gold price has been particularly strong. We do know that when the gold price is firm and moves up, it certainly moves platinum up with it. There are a lot of concerns about global inflation and certainly those inflation c...

Canadian base metals mining company Trevali Mining has started an early works programme on its Rosh Pinah 2.0 (RP2.0) mine expansion project, in south-western Namibia.

The Rosh Pinah underground zinc/lead mine – which is 90%-owned by Trevali and 10%-owned by Namibian broad-based empowerment groupings and an employee empowerment participation scheme – has been in continuous operation since 1969.

Positive results from an independent RP2.0 feasibility study were released in August 2021. The study considered the scenario of expanding the current throughput from 700 000 t/y to 1.3-million tonnes a year through the modification of the processing plant, the construction of a paste fill plant and the development of a dedicated portal and ramp to the WF3 deposit.

In a statement issued on January 20, Trevali said it was advancing certain aspects of RP2.0 to maintain the project schedule and mitigate the risks associated with the project as outlined in the feasibility study.

The early works programme, which has a capital budget of $20-million, is expected to be financed from internal cash flows.

The scope of the early works programme includes the procurement of mobile equipment, a power supply system upgrade, the procurement of long lead items for the paste backfill, portal construction and decline development and detailed engineering for the process plant.

“We are excited to kick off the early works programme,” Trevali president and CEO Ricus Grimbeek said.

FINANCING

Trevali said it was concurrently working toward securing project financing for the RP2.0 expansion project and refinancing both the existing corporate revolving credit facility and the existing facility with mining major Glencore, maturing in September.

"I am pleased with the progress made toward securing financing for the RP2.0 project and a new corporate facility. The level of interest we have seen . . . affirms our belief in the high-quality nature of the project,” Grimbeek commented.

Trevali appointed financial services provider Endeavour Financial in September 2021 to advise the company on the formation of a lending syndicate, coordinate lender due diligence and negotiate financing documentation, with the objective of providing a competitive non-equity financing solution for RP2.0 and refinancing the existing corporate revolving credit facility.

Trevali said it was considering several opportunities for the financing package, including project finance debt, subordinated debt and a silver stream on Rosh Pinah's silver production.

Trevali said it had also received nonbinding expressions of interest from several capital providers about participating in the financing process, including commercial banks, streaming and royalty companies, and mining-focused alternative lenders, as well as from Rosh Pinah's concentrate offtaker Glencore.

Glencore had indicated its support for the project by proposing an aggregate $33-million financing package, which Trevali said may include an extension to the existing Glencore facility of $13-million.

Trevali estimated that the RP2.0 expansionary capital costs would amount to about $111-million. The expanded mine was projected to produce, on average, 135-million pounds a year of payable zinc, 23.7-million pounds a year of lead and 303 000 oz/y of silver over an expected nine-year post-expansion mine life.

Modi Mining is a 100% black South African-owned company founded and owned by mining engineer and entrepreneur Samuel Molefi and entrepreneur Christina Motlapele Molefi.

The company was established with the sole objective of rendering differentiated contract mining services and to be a supplier of choice to the mining industry. (Also watch attached Creamer Media video.)

Modi Mining started operations in 2011 and has gone from strength to strength, serving some of the biggest names in the mining business.

Sam Molefi has 25 years of mining experience. He started with Gold Fields Academy and qualified as a mine engineer at Wits Technikon.

Holding a mine manager’s certificate of competency, he has managed local and international projects, including an explosives manufacturing plant in Mali.

Molefi provided technical support to Randgold Resources’ mines in Mali, has done long-term planning with platinum mines and has worked as a inme manager for chrome and ferrochrome mining companies.

In the North West, Modi Mining services some of the biggest of the big mining houses; in Mpumalanga it services the coal sector – and the company also manufactures and supplies products for major Gauteng-based gold mines and the Northwest-based platinum mines.

Sam Molefi’s latest deal is highly significant in that the contract won is close to his place of birth – Dobsonville, Soweto – and even closer to where his late father worked ­– Crown Mines, west of Johannesburg.

Modi Mining is now the key contract miner to West Wits Mining, the Australia-listed Witwatersrand gold reviver that is advancing fast on an initial A$9.5-million capital raise.

Helping West Wits Mining to come out of its starting blocks at high speed is an unexpected gold find that will result in revenue being generated considerably sooner than expected.

From next month, West Wits Mining, headed by MD Jac van Heerden, will begin turning valuable vamping material to account that nobody knew was there.

The vamping material escaped the attention of the definitive feasibility study (DFS) because entry of the dormant section of Rand Leases that closed a couple of decades ago was still unsafe at the time.

But that all changed in November and December when a ventilation system was installed, the underground made safe and the ready blasted vamping material came into view.

“It was a nice surprise for us,” an upbeat Van Heerden told Mining Weekly in the same Zoom interview in which he enthusiastically announced the appointment of Modi Mining as the company’s mining contractor.

When West Wits Mining ultimately meets its targeted 50 000 t/m, it will be looking to employ 600 to 700 people.

“At the moment, we’ll employ people through Modi Mining. They’ve got all their systems set up. We try to keep our head office, if I can call it that, relatively small, with most of the focus from the five guys we’ve got here going into Modi Mining, so that Modi Mining can do the employing. Modi Mining has got all the systems set up from their previous contracts. It's a lot easier to employ these operators through Modi Mining,” said Van Heerden.

These are the questions Mining Weekly put to Sam Molefi:

Mining Weekly: What has Modi Mining been contracted to do for West Wits Mining?

Molefi: The scope of our work is quite clear and detailed. It requires us to do the box cut brow support and to rehabilitate the old workings that have been left unattended to for years. So, we are going to be rehabilitating the brow area of the decline and putting in installations to ensure that when we enter the decline, a safe environment can be accessed. We have to make sure that the mine is set up to be able to be operated for a long-term basis. We are on early-stage works where we are establishing the footprint that will allow long-term mining to happen. That includes debushing all around the decline area. As you will recall, these mines were left a long time ago without any work happening there, so there were a lot of trees and b...