JSE- and NYSE-listed Sibanye-Stillwater has agreed to sell its Beatrix 4 shaft, in the Free State, to LSE-listed uranium exploration and development company Neo Energy Metals for R500-million in cash and shares.

The transaction includes the Beisa uranium project, located at the Beatrix 4 shaft. The project accesses the Beisa uranium reef through the upper sections of the Beatrix 4 shaft infrastructure.

"It's quite a big deal and really allows us to consolidate in the region and look at becoming a producer," Neo chairperson Jason Brewer told Mining Weekly.

Beatrix 4 shaft was placed on care and maintenance by Sibanye-Stillwater in 2023 primarily owing to declining gold reserves and a depressed uranium price, which has subsequently recovered, peaking at $106/lb in January. Sibanye believes that the outlook for the uranium market remains positive.

Although the Beisa uranium project is not a capital priority for Sibanye-Stillwater, the company said on December 9 that the transaction presented an opportunity for Neo Energy to develop the project, while allowing Sibanye-Stillwater to maintain exposure to uranium production.

The total transaction consideration of R500-million will comprise R250-million in cash and R250-million in newly issued shares in Neo Energy. Upon signing, this will equate to Sibanye-Stillwater owning a shareholding of about 40% in Neo Energy.

Sibanye-Stillwater will also receive a royalty on all uranium sold from the Beisa uranium project at varying rates, depending on the spot uranium price, with a maximum of $5/lb.

Under the terms of the agreement, Neo Energy will assume responsibility for all Beatrix 4 shaft rehabilitation and environmental liabilities.

"To have secured such a strategic asset, which consolidates our position in the Witwatersrand basin, the heart of South Africa's uranium industry, is a major accomplishment and I believe truly sets us apart from many other uranium development companies and further sets us firmly on the path to being one of the next uranium production companies in the world," Brewer said.

Sibanye-Stillwater said the transaction would immediately crystalise value for its shareholders and fast-track the possible development of the Beisa uranium project, without extending the group balance sheet.

"I believe this is a win-win transaction for both ours and Sibanye's shareholders. We are acquiring substantial and strategic uranium resources and mine and processing plant assets, whilst Sibanye is securing a significant and strategic shareholding in us and is able to participate in our planned accelerated production and growth strategy at both the Beisa uranium project and our broader uranium portfolio in South Africa," Brewer said.

Before the transaction can be concluded, several conditions need to be met. Neo Energy shareholders need to give their approval and a Rule 9 Waiver in terms of the City Code of Takeovers and Mergers needs to be acquired. So far, Neo Energy has secured 46% irrevocable support for the transaction from existing Neo Energy shareholders.

The transaction also requires regulatory approval in terms of the Mineral and Petroleum Resources Development Act for the transfer of Beatrix 4 shaft, inclusive of the Beisa uranium project, to Neo Energy. This is expected to be finalised by the fourth quarter of next year.

Both Neo Energy and Sibanye-Stillwater have expressed confidence that these conditions can be completed timeously.

"The sale of this strategic uranium asset is in line with Sibanye-Stillwater's strategy to unlock value from our uranium assets. The sale of Beatrix 4 shaft and the Beisa uranium project realises immediate value for the group.

"Through our direct shareholding in Neo Energy, we retain exposure to the uranium price and the future development of the project, while prioritising allocation of capital from the group balance sheet for projects currently under development," Sibanye-Stillwater CEO Neal Froneman said.

Neo Energy's executive management ...

New Proudly South African smelting technology, which uses 70% less electricity, cuts costs, slashes carbon emissions and can process low-grade material, has all the attributes needed to win back the top ferroalloy production renown that South Africa enjoyed in the not too distant past.

The inventive new green, clean, economically competitive, locally patented smelting technology, which is tried, tested and proven, needs only 1.2 MW of power is to produce a ton of ferrochrome compared with the conventional 4 MW of power needed to do so.

It not only has all the attributes to reverse South Africa's downward ferrochrome and ferromanganese slide but could even boost back the likes of Highveld Steel and Vanadium as well open the way for a return of the local production of high-manganese rail.

Slogging away at developing SmeltDirect since 2012 has been Johannesburg Stock Exchange-listed African Rainbow Minerals (ARM), headed by executive chairperson Dr Patrice Motsepe.

Crucial for South Africa is that ARM has manged to come up with a trailblazer that is not only 300% more efficient but also provides bottom-of-the-cost-curve benefit.

Very advantageous as well is that it enables existing mothballed furnaces to produce three times more efficiently.

In addition, biocarbon can be used to oust fossil fuel reductants, carbon dioxide emission is decimated, and manganese and iron ores that are currently unsaleable can be processed.

A detailed bankable feasibility study has been completed, engagement with ferroalloy peers on joint venture partnerships has taken place, and funding and co-financing arrangements for what will be major generator of direct and indirect jobs are showing early promise. Some 700 jobs are created for every 200 000 t of alloy production a year and South Africa was once a producer of about four or five million tons a year, which points to the potential of creating tens of thousands of new jobs.

Moreover, the use of renewable energy with biocarbon can slash Scope 1 and 2 carbon emissions by up to 80% and Scope 3 emissions are halved, resulting in good carbon credits being on the cards when Europe's carbon border adjustment mechanism (CBAM) comes into effect from January 2026.

Visiting experts from around the world have given the fully operational demonstration plant at ARM's Machadodorp Works a firm thumbs up.

"If we work together, we can, in a pretty short timeframe, get South Africa back to being a leader in ferroalloy production," ARM Ferrous Division CE Andre Joubert, in the company of ARM executive technology development Henk Bouwer, predicted in a Zoom interview with Mining Weekly. (Also watch attached Creamer Media video.)

"I'm looking at this from a South African perspective, where we can partner with existing producers in South Africa and then start with the process to convert one furnace at a time, confirm the technology, see that it can produce at a commercial level, and from there on roll it out through all our mothballed furnaces and the current low or marginally profitable smelters in South Africa.

"It's very, very important that we, as a country, unite. We have big alloy producers in South Africa, people with a lot of experience, a lot of know-how, that we expose this technology in that context, to partner with these entities where there are already existing plants and infrastructure. You just need to retrofit this technology on to that.

"Secondly, I think we need to have a bilateral with government…If we work together, and we're very smart, we can revive this whole beneficiation process, which we can put back into our own hands and create the necessary employment," Joubert enthused.

Mining Weekly: In what manner should this new technology be deployed to ensure that it adds maximum value in our country?

Joubert: I want to raise three key elements of this technology. The first one, which I want to emphasise, is that this technology isn't just a nice or cute technology. It is a process that will bring us t...

Mining Weekly Editor Martin Creamer discusses the billion rand green loan facility that underpins the three solar PV renewable-energy plants being constructed by Harmony Gold; global investor sentiment towards South Africa improving significantly in 2024; and the outlook for platinum group metals demand being uplifted by a series of new global hydrogen fuel cell buildouts.

Mines using renewable energy are being encouraged to harvest and store heat wasted during minerals processing and to then use its green electrons to close renewables intermittency gaps that come about when the sun isn't shining and the wind isn't blowing.

Implementing systems to do this also come with considerable economic benefit, Kraftblock co-founder and CEO Dr Martin Schichtel outlined to Mining Weekly in a Zoom interview. (Also watch attached Creamer Media video.)

Kraftblock, a high-temperature thermal energy storage system for process heat recall, augments decarbonisation by decoupling renewable energy generation from energy demand and then discharging stored green electrons to where they are needed, when they are needed.

Rethinking heat can take mining operations to the next level of greenness, says Schichtel, whose main takeaway is that there are now options in the market to make processes even cleaner through high-temperature processing elevation.

"All those options, especially high-temperature energy storage, which were not that well known in the market, are here today, and we can use them now to make things better," he says about turning renewable electricity into usable heat as well as reusing waste heat from high-temperature processes.

As mining scales up production of critical minerals for clean energy technologies, storing clean heat from electrification for discharge during intermittency is seen as having the wherewithal to enable mining companies to also offset declining ore grade quality.

The mining industry is very much involved in the energy transition itself. Just think about the raw materials for photovoltaic (PV) solar, wind turbines, the transmission grid and the many other aspects of the energy transition requiring green electrons and increased energy efficiency that need to be ecologically positive in the fight against climate change.

Mining Weekly: What becomes of the surplus heat if it is not recovered and stored?

Schichtel: That's the crazy part of this story. Usually, where you operate an oven, a furnace, a kiln, a calciner, what we call waste heat is generated and sometimes, in the more modern industries, that waste heat is partially reused in the process, but not all of it, and usually there's a good opportunity to utilise what remains to increase efficiency. Otherwise, it just goes into the atmosphere as lost energy.

How does storage ensure that the intermittent renewable energy gap is filled?

Thermal storage involves storing heat and the stored heat is nothing but a buffer, which means you can decouple energy generation from energy demand. The perfect use case is as intermittent energy, especially to buffer renewable electricity, be it from solar PV or wind energy, because there are a lot of fluctuations. The stored energy can be discharged to whenever it's needed to make mining greener.

Where have you succeeded in using thermal heat to decarbonise operations?

Our earliest project began five years ago in the ceramics industry, where we installed the system to harvest the thermal energy by preventing it from going into the atmosphere and by putting it to our storage device. Then, when the next batch gets heated up, the stored heat is released back to the furnace, increasing the warmth from room temperature to 400 degrees when the gas burners start firing, which reduces emissions, saves energy and improves the quality of the ceramic material.

How long do these systems take to pay for themselves?

Systems in waste heat recovery have payback times of between one and a half years and three years maximum. Electrification of heat might be a bit different, because it depends on the price difference between gas and green electrons. But renewables in locations such as Spain, California in the US, southern Europe, and Australia, are so cheap that they easily compete against gas, with payback times of between three and maybe six years.

LOWERING EMISSIONS

The metal and mining sector has two big jobs. The...

Dr Nombasa Tsengwa, the CEO of Johannesburg Stock Exchange-listed Exxaro Resources, has been placed on precautionary suspension with immediate effect, pending the outcome of an independent investigation into allegations related to workplace conduct and governance practice.

The board stated in a stock exchange news service announcement on Wednesday, December 4, that it believes the decision to be in the best interests of the company and Tsengwa.

While on suspension, and for the duration of the independent investigation being conducted by law firm ENS, the suspended CEO will step back from all executive and Exxaro board duties.

Regarding the allegations related to workplace conduct and governance practice, the board stated that it takes any such allegations and resultant investigations very seriously but makes no presumption as to its conclusion.

The company would, the board added, be guided by the outcome of investigation before taking the appropriate action, if any.

Meanwhile, Riaan Koppeschaar, who has been appointed as acting CEO, would continue as FD.

"The board is fulfilling its fiduciary duties by taking decisive steps to act in the best interests of the company and stabilise its leadership, while it conducts an appropriately thorough and independent investigation in line with company values and policies," stated Exxaro chairperson Geoffrey Qhena, who described Koppeschaar as having a deep knowledge of the company and industry, and being well placed to act as CEO.

Koppeschaar has spent the last eight years as FD and will be supported by an experienced management team, many of whom have been with the company for decades, as well as what is described as a seasoned board.

"Together they are well placed to stabilise and lead the company by focusing on meeting customer demand, driving safe, disciplined and efficient production, while creating value for our stakeholders.

"The board and management team will continue to implement our strategy of maximising the value of our current assets, while undertaking a measured and responsible transition from a coal based to a diversified minerals and renewable energy solutions business that will thrive in a low-carbon future." sais Koppeschaar, who has been FD since 2016, before which he spent ten years as a senior manager in the company.

Koppeschaar has previously held various managerial roles at Iscor and Kumba Iron Ore.

Separately, it can be pointed out that Tsengwa is also the current president of Minerals Council South Africa, the mining industry employers' organisation which exists to serve 69 corporate members and promote their interests in South Africa.

A R1.5-billion green loan facility secured in 2022 is the significant funding underpin of three solar PV renewable-energy plants being constructed by Harmony Gold at its large Moab Khotsong gold mine in North West province, near Orkney.

The Johannesburg Stock Exchange-listed Harmony anticipates that this latest project will supply about 20% of the peak daytime demand of South African operations once completed in financial year 2026.

The triple solar Phase 2 project, for which required environmental authorisations and permits have been received, will have a combined peak capacity of 100 MW.

"It's critical we continue to decarbonise whilst lowering our energy supply risk and exposure to above-inflation tariff increases," outgoing Harmony CEO Peter Steenkamp stated in a release to Mining Weekly. Group COO Beyers Nel will succeed Steenkamp as CEO with effect from January 1.

"Our comprehensive renewable-energy programme will improve our energy mix, as we aim towards becoming carbon net-zero by 2045. The allocation of capital towards such sustainable projects benefits all our stakeholders and will create jobs and sustain economic activity for our host communities," Steenkamp added.

The engineering, procurement, and construction contract for the solar plants and associated infrastructure, which has been awarded to a joint venture (JV) between OptiPower and the Cox Group, will create employment and procurement opportunities for local host communities within the Matlosana and Moqhaka (Ramolutsi) local municipalities and surrounding areas.

The JV will manage the local procurement process, with preference given to black-owned, black-women-owned and black-youth-owned companies within the local host municipalities. Ongoing maintenance of the facilities will provide permanent job opportunities beyond the construction phase.

The JV will recruit fixed-term employees and where required provide:

skills development training initiatives for 'in-service' students;

skills development for locally employed staff; and

on-site enterprise development programmes with successful local companies.

A community liaison officer will be appointed to ensure that a working relationship is established with the contractor, community leaders and other stakeholders amid commitment to empowering local youth and promoting long-term career prospects in the growing renewable-energy sector.

Harmony, in which Dr Patrice Motsepe's African Rainbow Minerals is a significant shareholder, is dedicated to improving energy efficiency by establishing effective energy management programmes that support mining operations and help to ensure a safe and healthy work environment.

Global investor sentiment towards South Africa improved significantly in 2024, Exxaro FD Riaan Koppeschaar reported on Tuesday, December 3.

In a pre-close message for the financial year ending December 31, Koppeschaar highlighted the expectation of further positive improvements in investment sentiment towards South Africa on the back of factors including energy and logistical advancement.

"It is anticipated that private investment in renewable energy, increased maintenance by Eskom, a smooth run without loadshedding, and transmission system developments, along with the continuation and acceleration in the implementation of the structural reforms in ports and rail, will result in further reducing energy and logistical constraints and positive improvements in investment sentiment towards South Africa," the FD of the Johannesburg-listed diversified mining and renewable energy solutions company elaborated in a stock exchange news service announcement accessed by Mining Weekly.

Impressively, Exxaro's contribution to South Africa's social upliftment has elevated considerably at this time to social strain and a time of lower coal and iron-ore sales at lower prices.

Generously, and in the best interests of South Africa, social investments for the ten months to October 31 amounted to R2.4-billion, which is 26% higher than the R1.9-billion spent during the entire 12 months of 2023.

The local procurement spend on small medium and micro enterprises (SMMEs) constituted 75% of that social investment.

Combined, these initiatives have supported 488 SMMEs through local procurement as well as enterprise and supplier development.

A net cash balance of R16-billion (excluding energy net debt) was on hand as at October 31 and the intention is to continue to retain cash of between R12-billion and R15-billion to fund growth.

Fittingly, Exxaro generates clean energy through its wholly owned wind energy company Cennergi, which is forecast to generate 729 GWh of electricity for in this financial year (FY), which is up on 727 GWh generated in FY23 and higher than the guided 720 GWh.

Moreover, commercial operation of the 68 MW Lephalale solar project at the Grootegeluk coal mine are anticipated in the first half of 2025.

The project is a significant milestone for Exxaro in its contribution towards enhanced energy security of Grootegeluk and Lephalale community, decarbonisation of its operations, energy cost savings, and South Africa's energy transition pathway.

Emphasis has been placed on sourcing local talent for the construction of the renewable energy facility, which will employ between 300 to 400 individuals at peak.

As a company whose vision is to invest in resources powering a clean world, the R1,56-billion investment will generate 176 gigawatt hours of clean energy a year and reduce emissions for 25 years from commissioning.

This project covers a 236-hectare development envelope 25 km west of Lephalale in Limpopo. The site is 2 km from the Marapong community settlement and 4 km from Eskom's Matimba power station, which Exxaro provides with coal.

Going into 2025, Exxaro describes global economic activity as remaining well positioned for a further gradual moderation of consumer price inflation, more accommodative financial conditions, and a continuation of the steady global real gross domestic product growth rates.

With respect to Exxaro's key commodities, the average benchmark API4 Richards Bay Coal Terminal (RBCT) export price for FY24 is set to be $15/t down on the $120/t of FY23.

Weighing on 2024's the iron-ore market and pricing were subdued Chinese economic growth, persistent downturn in the Chinese property market, robust global iron-ore supply, and increasing China port inventories. Following a set of policy announcements by China, the impact on iron-ore and steel demand was not as supportive.

Expected 2024 coal production of 40 013 000 t will be down on the 42 464 000 t of 2023 and likely 2024 coal sales of 39 844 000 t will not match 202...

The outlook for platinum group metals demand has been uplifted by a series of new developments in the field of platinum-catalysed green hydrogen generation as well as concomitant fuel cell buildouts that are green-hydrogen fed.

On top of South Korea setting out to construct the world's largest hydrogen fuel cell power plant in the coastal city of Gyeongju, Sinopec inaugurating Hong Kong's first public hydrogen refuelling station, and Metrans testing of Slovakia's first hydrogen truck, Toyota UK has constructed ten quick-filling hydrogen fuel cell Hilux prototypes that have diesel-engine range, Tanaka of Japan has developed the world's first bulk nano-sized platinum that has ten times more hardness and four times more strength, BMW is introducing hydrogen-powered tugger trains and forklifts at its digital plant in Germany, and a global coalition of industry representatives at COP29 has brightly spotlighted the major benefits of a far larger investment thrust in hydrogen fuel cells than the $75-billion already at final investment decision (FID) stage across 434 projects.

Moreover, the World Platinum Investment Council has drawn attention to:

Le Havre, in France, being on its way to becoming a central hydrogen hub as part of a French government-backed $1.69-billion initiative involving Air Products and Qair Group.

Electrical demand for platinum in hard disk drives (HDDs) in a cobalt, chromium and platinum alloy which forms the storage layer in HDD stacks.

Platinum finding increasing uses in the semiconductor and sensor industries, with applications growing on the back of rising demand for artificial intelligence (AI), and, in the case of HDDs, the associated need for more data storage capacity. The AI market is projected to grow steeply to around $1.3-trillion over the next decade from a market size of $40-billion in 2022.

The biggest share of end-use platinum demand remains the automotive sector, which has a 40% pull. This is followed by platinum jewellery, which in 2024 absorbed 25% of the eight-million-plus ounces of platinum production. Glass demand takes up 8%, chemical demand 7%, investment demand 6%, medical 4%, petroleum 2%, hydrogen 1% and other 7%.

In South Africa, all speakers at the Mapungubwe Institute for Strategic Reflection's (Mistra's) ninth yearly platinum group metals (PGM) roundtable, on November 27, agreed that South Africa has potential to become a leading player in the hydrogen and fuel cell industry.

By developing capacities, the country can become an indispensable part of the whole hydrogen value chain from mining of minerals and beneficiation, to manufacturing and services, said Mistra executive director Joel Netshitenzhe.

As South Africa progresses its platinum-based hydrogen fuel cell economy, Mistra aims to ensure that the benefits of these emergent industries accrue to all, including youth and communities. Additionally, the institute is focused on securing the global supply of green hydrogen by ensuring PGMs and other critical minerals remain a stable and mutually beneficial source for investment.

Netshitenzhe cited estimates that 35-million tonnes of green hydrogen will be produced by 2035 and form 20% of the EU's energy mix by 2050, while the world is also moving towards more fuel-cell-powered trains, small vehicles, ships and aircraft.

South African hydrogen projects still awaiting FID include Boegoebaai in the Northern Cape, Coega in the Eastern Cape, Saldanha green steel in the Western Cape, Mitochondria's Vereeniging project in Gauteng, the Platinum Valley mobility initiative in Gauteng and KwaZulu-Natal, Isondo Fuel Cells project in Gauteng, and Enertrag green ammonia project in the Northern Cape.

North America's only publicly traded pure-play green hydrogen company, the Toronto Stock Exchange-listed Charbone Hydrogen, reported a 23% year-on-year revenue in the third-quarter of this year, along with progress beginning green hydrogen production at its Sorel-Tracy facility in Quebec next year...

Investment in downstream beneficiation is starting to pay dividends and to show real commercial results, says Tharisa CEO Phoevos Pouroulis.

"We sold our first commercial chrome alloy to an industrial user in South Africa and this really is the first step in a journey that sees us diversifying our product mix and allowing us to beneficiate our product in a unique proprietary way that opens up new markets, for our chrome business," Pouroulis adds.

"Also very exciting is that we've managed to upscale and test our Redox flow battery system, which is a chrome-iron proprietary technology that's developed from the chrome concentrate that we produced on site at Tharisa and ultimately providing a much-needed long-duration, long-life, efficient energy storage solution.

"We've had a very strong operational cashflow year and this really talks to that co-production business model. It truly has shown its resilience and robustness through the commodity cyclicality and volatility.

"Conviction may not be there in the PGM market at the moment but the fact is that these are the times when you need to invest and we see ourselves as being steadfast, committed to our vision and investing through the commodity cycle."

On the environmental front, Tharisa has committed to reducing its carbon footprint by 30% by 2030 and has made strides towards achieving this by signing a 15-year, 40 MW renewable wind and solar energy wheeling agreement with Etana, which equates to about 40% of the company's energy requirements.

This is in addition to its own progressing solar project, which will provide a site-embedded 30 MW of green power.

Tharisa COO Michelle Taylor reports that the co-product nature of the business and strategy embarked on some 15 years ago has served the company particularly well.

"There's been a steady track record over a number of years of profitability as a consequence of this co-product model.

"Touching first on the platinum group metals that we produce, it was a little disappointing to see the PGM basket price down year-on-year. It was expected and something that we planned for and understood.

"PGM prices were down some 28% at $1 362/oz compared with $1 894/oz the prior year. From a supply point of view, there clearly is consistent messaging coming through the market in terms of expectation on further primary supply reduction and what we anticipate going forward into the next years.

"From a supply point of view, there clearly is consistent messaging coming through the market in terms of expectation of further primary supply reduction coming primarily out of South Africa, which we expect to be a main catalyst for PGM price increases.

"From a buying point of view, we saw buying patterns by automakers normalising … with 36% of sales in 2024 being attributed to plug-in hybrids and hybrids themselves," Taylor points out.

Combustion engines, which remain a demand driver, have been relatively stable year-on-year and emission standards being rolled out will impact demand drivers and will call on the use of PGMs.

The London- and Johannesburg-listed chrome and platinum group metals (PGM) miner Tharisa has reported improvements in its production for the financial year ended September 30, which culminated in a higher operating profit.

The group produced 145 100 oz of PGMs for the 2024 financial year, compared with the 144 700 oz produced in the prior year, while chrome concentrate production had increased to 1.7-million tonnes, from 1.5-million tonnes in the prior year.

Notably, the company's chrome output was the highest in its history of chrome concentrate production. Operating profit increased by 26.3% year-on-year to $119-million, compared with an operating profit of $94.7-million in the prior year.

The company's flagship operating asset is the Tharisa mine, located in the Bushveld Complex of South Africa. Tharisa is also developing the Karo platinum project in Zimbabwe through a 76% shareholding in Karo Mining, which, in turn, holds 85% of the ...

Mining Weekly Editor Martin Creamer discusses Menar awaiting Competition Commission approval following its bid for the large Metalloys ferromanganese facility in Meyerton; the long-term outlook for platinum demand being robust amid concerns around supply; and thoughts that South Africa has the potential to become a leading player in the hydrogen and fuel cell industry.