Mining Weekly Editor Martin Creamer unpacks huge advantages in South Africa modifying its Integrated Resource Plan to focus its energy effort exclusively solar, wind and storage; Hillside Aluminium which could go green by 2030; and Australian investment in Orion’s Prieska as well as in West Wits Mining.

Following successful trials, specialist graphite and graphene company Tirupati Graphite will ship the first commercial-scale column flotation system (CFS) for installation and operation at its 9 000 t/y Vatomina graphite production plant in Madagascar.

In July 2021, the Tirupati Graphene & Mintech Research Centre (TGMRC) established a pilot-scale version of its unique CFS, which it developed for use across its primary and downstream specialty graphite production plants.

The new technology is aimed at improving the performance of its primary graphite and downstream specialty graphite production processes, ultimately culminating in the latest plant, which has a capacity of 1.5-million tonnes an hour.

Tirupati executive chairperson Shishir Poddar says global flake graphite demand continues to grow on the back of the acceleration in the transition to electric mobility and growth in other flake graphite consumption areas, such as flame retardant and thermal management applications.

As such, he says, Tirupati is increasingly confident in its strategy of rapidly increasing its production capacity.

The CFS developed by Tirupati has demonstrated several advantages over conventional flotation-cell technologies commonly used in graphite processing, including the ability to reduce power consumption during the flotation stage of the process by about 40% and eliminate corrosion and wear in flotation, thereby reducing maintenance costs and production downtime.

The plant can also reduce the number of processing/flotation stages required to achieve desired graphite purity levels, thereby lowering the overall cost of production.

Tirupati will be incorporating the new CFS in its upcoming capacity expansion projects, replacing three of four flotation stages. This can be achieved without changing the planned timelines and is expected to deliver significant commercial and operational improvements, further strengthening its status as a low-cost-quartile producer of natural flake graphite.

As such, Tirupati expects significant benefits on cost and efficiency in the upcoming 18 000 t/y Sahamamy expansion to be completed at the end of the first half of this year, as well as the 54 000 t/y of additional capacity planned to be built in Madagascar by 2024.

“Our dedicated research centre in India, which is the technological backbone supporting the group’s operations, has enabled us to commercialise our CFS with many unique features,” says Poddar.

He adds that this enables the company to further reduce its costs and increase efficiencies at its primary flake graphite operations in Madagascar, downstream specialty graphite operations in India and, in due course, its primary flake graphite projects in Mozambique as well.

“We believe in continued innovation and technological improvements and continue to make progress towards being an important contributor to the energy transition economy and in the process seize the opportunities for creating sustainable values for our shareholders,” concludes Poddar.

Mineral resources group Sibanye-Stillwater has restarted some of its operations following safety-related interventions and stoppages that were announced on December 15, the company said in a statement on January 20.

Despite these interventions, however, another mineworker has died. A locomotive driver was killed in 2 Shaft at about 14:46 on January 19 at the company’s Driefontein gold mine near Carletonville, in Gauteng.

Sibanye investor relations senior VP James Wellsted tells Mining Weekly that a power outage appeared to have occurred on the locomotive level, which led to the electric locomotive stopping. During this outage, the locomotive driver exited the cab for reasons that have not yet been established, which appears to have led to him being fatally struck by either the locomotive or a hopper.

Wellsted confirms that investigations into the incident are ongoing and that Sibanye is cooperating fully with the Department of Mineral Resources and Energy (DMRE) and the relevant unions.

He adds that, although the section where the fatality occurred has been shut down, 2 Shaft remains operational.

This is the first death at Sibanye’s operations this year, and follows the 18 fatalities recorded in 2021 – a number that the Association of Mineworkers and Construction Union (AMCU) described as a grim record for the company.

“December alone saw two incidents in less than a week, killing three mineworkers at Sibanye’s Beatrix operations in the Free State and one mineworker at Khuseleka Shaft in Rustenburg [in the North West],” AMCU claimed in a statement.

In early December, production was suspended at some of the company’s gold mining operations to improve safety conditions. The suspensions included the Kloof 1 Shaft in Gauteng, as well as at the Beatrix 1 and 3 Shafts.

Trade union Solidarity on January 20 also expressed shock over the latest fatality, suggesting that inspectors from the DMRE consider closing down the entire Driefontein mine until Sibanye “can prove that it is safe to work in [its] mines”.

Meanwhile, Sibanye reported that following the implementation of extensive safety audits and corrective measures, operations at Kloof 1 Shaft restarted in January with a gradual ramp-up of production activities.

Operations at the Beatrix 1 and 3 Shafts, however, have not yet restarted because audits and engagements with the DMRE are still ongoing. It is anticipated that production from the Beatrix operation will resume towards the end of January, Sibanye said.

The company claimed that the operational restart at the remainder of its South African gold operations, following the seasonal break, has been consistent with what was planned.

PROCESSING

Meanwhile, processing operations at Beatrix were temporarily suspended on December 28 so that rehabilitation work could be undertaken on part of an active tailings storage facility (TSF).

“A limited portion of the Beatrix TSF requires precautionary reinforcement and buttressing work and a decision to cease deposition while this work is being completed has been taken,” Sibanye said.

The suspension of processing operations at Beatrix is expected to last about three months and is scheduled for completion by April.

The company stated that underground mining activities will continue during this time and that stockpiled ore will be processed over the remainder of the year, once the TSF remediation has been completed.

PLATINUM GROUP METALS

After an initial slow return to work and startup at the company’s Marikana operation in the North West, Sibanye said that its South African platinum group metals operations were “ramping up well”.

This follows a December break at the company’s Rustenburg operation, also in the North West, where the Khuseleka shaft underwent a management-imposed safety suspension, in addition to the temporary suspension of the Thembelani shaft, which was necessary owing to an increase in Covid-19 infections among supervisory and senior management. Both shafts have resumed produ...

The executive team of Orion Minerals is re-evaluating the development schedule of the Prieska copper-zinc project to assess the potential for its fast-tracking.

Also flagged is the opportunity to extract pillars left by historic mining.

“This could present a major breakthrough for the project,” upbeat Orion CEO Errol Smart said on Thursday, when he spoke to Mining Weekly in a Zoom interview. (Also see attached Creamer Media video.)

The early production investigations, which are due for completion by mid-year, coincide with prevailing positive macroeconomic factors and the continued long-term positive outlook for both copper and zinc prices.

If given the thumbs up, opencast mining would run concurrently with the 33-month development phase of the underground Prieska Deeps Mine, rather than at the end of the project life, as was planned in the 2020 bankable feasibility study.

The focus is to reschedule the feasibility study’s phased implementation, with the studies underway assessing the potential to mine the open pit first, rather than at the end of the mine life, and for this to concur with the 33-month dewatering and mining development schedule for the 200 000 t/m Prieska Deeps Mine.

“This alternative scenario is looking increasingly like the route we should go down,” said Smart.

The early production scenario relies on the material assumptions for the mine plan already incorporated in the 2020 bankable feasibility study.

The pillars left by historic mining are soon to be tested shortly as part of a 3 500 m underground drilling programme to allow for their inclusion in the mineral resources and reserve estimation.

Engineering studies indicate that many of the pillars – left in a grid pattern purely as ground support I the absence of modern backfilling – would not be required for continued geotechnical stability of excavations if cemented tailings filling from the opencast mine were placed in the historical voids, as planned in 2020 bankable feasibility study.

Using cemented open pit mine tailings to back-fill the historic voids also provides a rethink opportunity on the size of the planned tailings storage facility, which has a high upfront capital cost.

Negotiations with multiple banks and financing institutions for the funding of the Deeps Mine, which are continuing as a priority, are not affected by the engineering studies and financial assessments of an early production value enhancement scenarios underway.

The 2020 bankable feasibility study of the outlines the plan to re-establish Prieska Copper Mine, which was previously operated as an underground mine between 1971 to 1991 when 46-million tons mined produced 430 000 t of copper and 1.01-million tons of zinc in concentrates.

“The Prieska project is something special in that it is a relatively large base metals project in South Africa but it’s going to take four years to build and it’s a big capital ticket,” said Smart.

“Over the last while we’ve been taking a lot of investors and financiers to site and people look at our open pit, that we’ve planned to mine in 30 years’ time, which is very high grade because it's a 1.9% open pit. And they say ‘why don’t you mine this upfront’, and it was always a Catch 22,” he said.

When Orion began its bankable feasibility study, the copper prices were in the US$6 000/t, whereas last week they touched on US$10 000/t.

“So, the world has changed – and there’s one thing about copper, it seems to be the one certain thing for the medium-long-term future, so, we do need to start looking through different eyes,” said Smart.

While the open pit study was always planned to be mined at 100 000 t a month in year 13, mills are already on order, deposits paid to Eskom for power connections, which has prompted Orion to start asking itself about getting production going earlier.

It was always about there being insufficient tons. The open pit’s JORC-compliant sulphide tonnage is roughly 1.1-million tons.

“We can only really speak about the JORC-compli...

Mining explosives and blasting technology supplier BME has unpacked the benefits of its latest and most advanced electronic blast detonation system called AXXIS Titanium.

The company hails this system as a significant advance for both the company and the country, as it improves South Africa’s competitiveness in the blasting space.

“The release of AXXIS Titanium has raised the bar globally for the electronic detonator market,” says MD Ralf Hennecke.

He adds that this flagship product reflects the company’s continued focus on digital advancement of mines, and is designed to seamlessly integrate with BME’s software systems and hand-held digital tools.

Technology advancement has become particularly accelerated since the start of the Covid-19 pandemic, with rapid developments in modernisation, automation and digitalisation, Hennecke notes.

In keeping with these global developments and to remain competitive, BME’s technology is focused on process optimisation, which also advances environmental, social and governance prerogatives.

Hennecke says the AXXIS Titanium system is safer, more flexible and more accurate than its predecessors.

Particularly, with it operating more accurately, it ensures less fragmented blasting and, thereby, a reduced environmental impact, since it saves on mining cycles having to handle more material.

Additionally, more accurate blasting has the effect of less vibration, which is better for surrounding communities.

The manufacturing of the system supports local supply chains, since it is a South African designed and made product.

AXXIS Titanium improves safety levels and manufacturing quality through enhanced communication with the detonator during manufacturing to avoid defects.

Performance is raised through the increased blast duration per detonator, more units per blasting box and precise firing accuracy.

“The robustness of the wire, the easy-to-use interface and the improved integration will improve efficiency in terms of time, data and reporting,” notes product manager Tinus Brits.

BME puts safety at the heart of its products, particularly the AXXIS Titanium system – it incorporates a Swiss-designed integrated circuit chip in the detonator, which affords the system more safety gates against stray currents and lightning and allows for safer logging and testing.

“A unique innovation is our use of dual capacitors and dual voltage, allowing us to conduct low-voltage logging to avoid any chance of detonation,” Brits points out.

Blasts are initiated by a robust, encrypted blast command, ensuring that detonators all receive their respective commands and fire as planned. He emphasises that the detonator will only react if it receives the correct, encrypted firing sequence from the blasting equipment, not from any other source.

“We have developed AXXIS Titanium to be resistant to electromagnetic pulses caused by the blast, which can affect the accuracy of detonators or even cause them to fail.”

Brits explains that underground blasting – within confined spaces – makes detonators particularly susceptible to re-setting and misfiring owing to voltages from electromagnetic pulses, as well as from dynamic pressures.

Moreover, the application-specific integrated circuit chip boasts more memory and a faster processing speed, facilitating easier timing and centralised programming if the timing needs to be changed after being conducted on the bench. It also achieves lower power consumption with the incorporation of dual capacitors – so more detonators can be initiated per blast.

The system can now manage 1 000 detonators per blasting box, doubling the capability of the previous generation.

Brits adds that up to 20 blasting boxes can be linked and synchronised through hard wiring, enabling the possibility of initiating up to 20 000 electronic detonators in a single blast.

The AXXIS systems have been proven in some of the largest mining blasts on record, giving mines the choice of conducting fewer blasts and thereby reduci...

Dubai-headquartered copper and cobalt miner Shalina Resources and its subsidiary Chemaf have signed a financing and marketing agreement with commodity trader Trafigura.

The deal will facilitate new supply of high-grade cobalt hydroxide and copper cathode at a time of growing global demand.

Trafigura will syndicate about $600-million of financing to international banks, as well as market all of the cobalt hydroxide produced from the companies’ assets in the Democratic Republic of Congo (DRC).

The financing will enable Shalina to complete the construction of its fully mechanised Mutoshi mine and solvent extraction and electrowinning processing plant, in Kolwezi, as well as progress the expansion of the Etoile solvent extraction and electrowinning processing plant, in Lubumbashi.

An important component of the transaction involves Trafigura working with Shalina and Chemaf to enhance the management of social and environmental impacts of the operations, in line with international standards – including the Organisation for Economic Cooperation and Development’s ‘Due Diligence Guidance for Responsible Supply Chains’ and Trafigura’s own responsible sourcing programme.

The Mutoshi mine is set to be one of the largest copper and cobalt mines in the DRC with significant resource upside. The mine is expected to start production by the third quarter of 2023.

Since announcing plans to build a green ammonia export plant in Nelson Mandela Bay, the partners behind the project, Hive Hydrogen, Built Africa and Afrox subsidiary Linde, have witnessed a great deal of interest in this first-of-its-kind undertaking.

The R75-billion project heralds a new area for South Africa in its commitments to greener solutions for industry, particularly as the world is starting to feel the pressure to meet net-zero targets by 2050.

Notably, Hive Hydrogen South Africa chairperson Thulani Gcabashe says the support the project received so far stems largely from Transnet, Eskom, the local government of Nelson Mandela Bay and international industry partners. The proposed up to 900 000 t/y green ammonia plant – with its own dedicated green power supply at the Coega Special Economic Zone alongside the Port of Ngqura – is a significant South African response to the world’s need for green solutions to limit the devastating impact of climate change and to deliver on COP26 commitments.

The developers state that the renewable energy and energy storage component of the project alone will be the biggest of its kind in sub-Saharan Africa and one of the largest globally.

The project will be powered by a 1 000 MW solar plant, located adjacent to the plant, coupled with a 56 MW battery storage component on site, and a 1 400 MW wind farm, which will be built further away.

Gcabasha notes there is a surge in demand for ammonia globally, to meet agricultural, chemical and mining requirements. This, coupled with the expected global switch to green ammonia as the main fuel in the maritime industry, and its ability to serve as a coal substite, makes this the optimum time to invest in this commodity.

Hive Hydrogen in December last year published a prefeasibility study on the project and has been working towards a final investment decision. A full feasibility study is in progress and, thereafter, the project team aims to garner funding support.

The company expects the plant to be fully operational by 2026.

Hive Hydrogen UK founder and CEO Giles Redpath explains that, if by the end of the century nothing has been done to mitigate climate change, and a 5 ˚C temperature rise is not curbed, human life will not be supported and harsh weather conditions will ensue.

He highlights the importance of using South Africa’s renewable energy resources, not only for the benefit of the local economy, but also to position it as a leader in mitigating climate change concerns. He highlights South Africa’s abundant wind and solar resources as an advantage.

“This project is incredibly important . . . ammonia is important because it can be transported in ways that hydrogen cannot,” he says.

Elaborating further on the benefits of this clean fuel, Gcabashe says ammonia can be liquefied, stored and transported, which many other forms of renewable energy cannot. He adds that ammonia is burned with internal combustion engines, with no carbon emissions as a result; it can be converted to electricity directly, or provide hydrogen for fuel cells.

Transnet National Ports Authority will provide storage tanks for the ammonia to be stored pending export.

Although this is a complex ammonia production project, and a first for South Africa, it will be catalytic in terms of post-Covid-19 recovery. The project can be a huge boost for business confidence and present supply chain opportunities, as well as major foreign direct investment opportunities, states Gcabashe.

The project is poised to create thousands of jobs, should it come to fruition.

But beyond job creation, this project, being located where it is, could result in that area becoming an energy hub for renewable energy, notably for hydrogen.

“Our immediate priorities are to create a bankable project within 18 months, to find funders, and execute the project on time and on budget.”

JSE-listed platinum group metals (PGMs) miner Impala Platinum (Implats) issued an offer circular to shareholders of midtier PGMs miner Royal Bafokeng Platinum (RBPlat) on January 17 proposing to acquire all RBPlat shares it does not already hold.

As at January 7, it held 102.05-million RBPlat shares, representing about 35.31% of the shares in issue.

Implats is offering RBPlat shareholders R90 in cash and 0.3 of an Implats share for every RBPlat share held.

Implats CEO Nico Muller says the proposed acquisition of additional RBPlat shares will provide a structure that offers “compelling strategic, operational and financial benefits for all Implats and RBPlat stakeholders [as] it secures a western limb of the Bushveld Complex’s production base that enhances and entrenches the region’s position as the most significant source of global primary PGMs production.”

He adds that the acquisition will also deliver “tangible” socioeconomic benefits for the region, its communities and South Africa as a whole, including employment security and sustained indirect benefits for the greater Rustenburg region.

In a statement, Implats says the offer provides a “compelling” value proposition for RBPlat shareholders by “crystallising inherent equity value at an attractive premium” through the receipt of a combination of cash and high-quality and liquid scrip in Implats.

This, in turn, offers exposure to a global portfolio of PGM assets, projects and a toll refining business, which Implats says is well-positioned to capture the benefits of the full PGMs value chain through integrated processing facilities, including wholly-owned smelters, as well as base and precious metal refineries.

It also offers an opportunity to benefit from regionally-diverse production growth across shallow, mechanised operations on the eastern limb of the Bushveld Complex, Canada and Zimbabwe and the planned expansion of installed processing capacity.

Implats further adds that the offer avails the “best position” to deliver future operational benefits of significant, unique regional synergies presented by these contiguous operations. This is because of Implats’ comprehensive experience of the orebody and its ability to leverage cost-effective opportunities for future growth, it states.

Further, the offer provides an “attractive and sustainable” dividend yield, underpinned by clear and disciplined capital allocation priorities and a strong and flexible balance sheet.

“Our value-focused strategy is to increase exposure to low-cost, shallow, mechanised assets; enhancing the positioning of the Implats group with a quality portfolio of high-value operations that are sustainable and competitive through the cycle,” says Muller.

He adds that the level of ownership in RBPlats achieved by Implats to date is indicative of the broad support it has received and affirms the strategic rationale and value proposition provided by this acquisition.

The offer will be open for acceptance from 09:00 on January 17 to 12:00 on June 17.

Implats and fellow PGMs miner Northam Platinum have both made a play for RBPlat.

In November last year, RBPlat shareholder Royal Bafokeng Holdings accepted an unsolicited offer for up to a third of RBPlat shares in a R17-billion transaction.

Further, RBPlat in December announced that it had received an unsolicited approach from Northam regarding its interest in acquiring all, or a portion of, the voting securities of RBPlat. At the time, RBPlat said its independent board would deliberate on the approach.

West Wits Mining, the Australia-listed Witwatersrand gold reviver that is advancing fast on an initial A$9.5-million capital raise, is the beneficiary of an unexpected gold find that will result in income 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. (Also watch attached Creamer Media video.)

The vamping material escaped the attention of the definitive feasibility study (DFS) because entry of the dormant section of the Rand Leases and DRDGold 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 a Zoom interview.

Grab sampling showed that the material had an average grade in line with expectations and income generated will help to cover overhead costs.

That will happen ahead of the company getting stuck into the in situ orebody in March/April, when it will commence blasting and extract face rock.

Following the granting of the mining right and completion of the Qala Shallows Stage 1 DFS in the third quarter of 2021, West Wits has rapidly advanced site establishment, mine development and the early mining initiative at its Witwatersrand Basin Project that highlights the huge potential of South Africa to begin turning its rich legacy resources to positive account.

The underwritten rights issue to fund the project was fully underwritten by Evolution Capital.

The company has also completed a share placement on an unrelated investor to raise a further A$1.6-million and has appointed South Africa-rooted Taurum International to raise debt.

The compliant resource estimate of the Witwatersrand Basin Project has hit the 4.28-million ounces mark at a grade of 4.58 g/t of gold.

“That’s quite an exciting grade for us,” said Van Heerden, who described the orebody as strong and the growth potential as considerable.

The Qala Shallows area is where the DFS was finalised last year. There the grades are still at the 3.5 g/t or thereabouts. That is also the 500 m area where mining will start first and where the DFS declared a reserve of about 288 000 oz, a number that is poised to remain until further feasibility studies are completed this year.

With the mining of the vamping material and old available faces due to begin next month, rock engineering and ventilation teams are going all out to identify rock conditions and ventilation requirements to ensure that the reviving operation is in a position to start taking up ore from February/March onwards.

“We estimate that, at least for the next six months, we’ll be in a position to take out about 5 000 t to 8 000 t a month and as we understand the available faces a bit better, we’ll then extend that plan going forward.

“Our DFS project, as we call it, was only really scheduled to click in from about September this year, so what we’ve managed to do with what we call the early mining initiative is to bring quite a bit of activity forward.

“We’re in a position to prove to people that the gold is there and we’re funded for this year to start this early mining. We’re still working on our debt funding initiatives as well and at least for the next six months or so we’re are funded to start our early mining initiative,” Van Heerden enthused.

West Wits has appointed Modi Mining as its mining contractor. Modi states on its website that it is led by Motlapele Molefi, with entrepreneurial prowess derived from years of building successful enterprises through consulting and advisory, and mining engineer Sam Molefi, with a 20-year career in the mining and explosives.

When an output of 50 000 t/m is attained, the company expects to have created about 600 to 700 jobs.

Mining Weekly: Are your projected costs per ou...

JSE-listed ferrochrome producer Merafe Resources reports that it and Glencore Operations South Africa have reached an agreement to contribute to the Glencore-Merafe chrome joint venture (JV) a new platinum group metal (PGM) production plant that is currently being built at the Kroondal mine.

The new PGM plant’s main operations will be the treatment of PGM-bearing material derived from the mining operations at the JV’s western chrome mines, as well as that available in applicable tailings facilities and dams.

Merafe Resources FD Ditabe Chocho tells Mining Weekly Online that the PGM concentrate to be produced at the plant is an associated minerals concentrate from the JV partner’s production of chrome ore.

He adds that the plant is expected to be completed this year, and that because it is being built in phases, it enables the JV partners to currently produce concentrates even through it is still under construction.

It will also treat PGM-bearing material from certain mining operations in the vicinity of the Kroondal mine to which Glencore South Africa and/or Merafe directly or indirectly have rights in relation to PGMs.

“The cost of the plant will be financed from our cash reserves and will be disclosed when we release our year-end results,” he says.

Going forward, the operation of the new PGM plant will be governed by the existing unincorporated JV’s notarial pooling and sharing agreement between Merafe and Glencore Operations South Africa.

Meanwhile, Merafe reports that its attributable ferrochrome production from the JV increased by 42.7% year-on-year to 379 000 t for the year ended December 31.

Its share of production for the fourth quarter was 102 000 t – a 5.1% year-on-year increase, mainly as a result of current production being less affected by Covid-19 pandemic implications, coupled with improved plant efficiencies achieved at the smelters.