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An extensive pilot initiative aimed at scaling up hydrogen technology, infrastructure and applications across the length and breadth of China has been announced, shortly before next month's promising Shanghai Platinum Week from July 7 to 10, where there will be a strong South Africa platinum group metals (PGM) presence.

As the world's largest consumer of PGMs, China is a major driver of the demand for platinum, which has risen to the highest level in more than a decade, with gains taking place at a time of market deficit.

Green hydrogen and PGMs go hand-in-glove in that PGMs are used in the electrolysers that generate green hydrogen, as well as in the fuel cells that convert that green hydrogen back into green electricity for mobile and stationary applications.

Platinum for immediate delivery has been trading at a premium to futures, which arising ahead of a big get together that never fails to provide a distinctive platform to gain insights into China's market dynamics and to emphasise South Africa's position as the world's largest producer of PGMs.

The latest China hydrogen scale-up initiative is targeting a comprehensive commercial deployment by June 2028, the initiative focuses on 11 specific areas within the hydrogen value chain, testing innovative models and technologies, the World Platinum Investment Council has reiterated on LinkedIn.

The membership of the World Platinum Investment Council, which provides insights to advance platinum investment, includes all of South Africa's major PGM mining companies.

After signs of strong demand in China, Bloomberg reports that platinum is heading for a record quarterly surge, as well as robust investor interest, exacerbated by deficit concerns.

The publication Fuel Cell Works Targeting has pointed out that each project under this new hydrogen scale-up directive is mandated to demonstrate technological progression, commercial potential, substantial carbon reduction benefits. Green hydrogen production must involve electrolyser facilities with capacities of at least 100 MW and be 80% powered by renewable energy sources. Remote locations such as deserts and isolated plateaus will reportedly host 100 MW-plus off-grid hydrogen systems.

Each China province and central State-owned enterprise can nominate up to five individual projects and two regional pilot schemes. Priority will be given to projects already holding necessary permits, aligned with national research and development strategies, or incorporating pioneering technologies supported by robust commercial and technical bases.

As the countdown begins towards the Shanghai Platinum Week, hopes are also high that China will introduce the first cornerstone of what will likely be global trading augmentation and add to price discovery, which is key for the overall market.

Ahead of Shanghai Platinum Week No 5, Mining Weekly has been informed that the Guangzhou Futures Exchange (GFEX) is close to regulatory sign-off of the promising new trading framework.

GFEX is where physically settled platinum and palladium futures have the potential to transform domestic price risk management and uplift demand for platinum products.

Acceptable will be platinum and palladium in the form of ingots and sponge - pure metal in powder form - as opposed to just ingots.

The ability to take delivery of sponge could be transformative for industrial users of PGMs, as well as automakers, as this is the main form typically used for their manufacturing purposes. No other exchange in the world allows delivery of sponge.

Other benefits of the GFEX's new futures are likely to include a mechanism for businesses involved in the market to hedge price risk and better manage their operations. For example, the removal of price risk will allow platinum jewe...

Mining Weekly Editor Martin Creamer unpacks Air Products's belief that South Africa has an opportunity to develop its own hydrogen economy; Mzansi Energy Consortium’s 12-year green energy supply agreement; and Zambia’s transparent mining revenue system.

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South Africa should initially focus intently on its local green hydrogen market rather than the global market, and progress at its own pace, which has the potential to give it a global lead.

Air Products MD Charles Dos Santos makes this point strongly in a sponsored post that is currently being videod on the website of Mining Weekly's associate Engineering News publication, within the context of the Green Hydrogen Summit in Cape Town, where Toyota, Valterra Platinum and Air Products showcased together.

"We have an opportunity to develop our own green hydrogen economy without a dependency on the global dynamics," Dos Santos points out in the video interview, "so let's focus on our own market, and as those global markets look to diversify the risk of their supply chain, we will participate in it. It's inevitable.

"But in the short term, the focus should be on our own localised requirements than relying on international demand to create a justification for the multiple projects that we're looking at in the region," Dos Santos advocates.

If South Africa can consume the green hydrogen that it generates where it creates it, significant value chain costs can be avoided in early emergent marketing stages.

"We've got all the right credentials in terms of resources, renewables, platinum, and the ability to generate the large amounts of energy that are required to produce the green hydrogen and whatever derivatives thereof.

"With South Africa's credentials, I'm very confident we're going to be a lead player in the greener hydrogen economy globally, but it's a big timing issue. from a local green hydrogen economy, it's very easy to piggyback global developments and to build on or to top up whatever we do locally. We're going to be more globally competitive by progressing at our pace," Dos Santos emphasises.

In the sponsored post, it is posited that replacing the large volumes of grey hydrogen already consumed in South Africa with green hydrogen presents an immediate baseload domestic market.

"If you can create a significant baseload with either existing users or high-volume users, that has a huge impact in motivating the economic development and the economic success of a particular project. That baseload is where it exists and we're fortunate in South Africa to have companies like Sasol and others who are already large consumers of hydrogen. That gives us a baseload opportunity so that when you do generate this green hydrogen, there's already an outlet and you don't have to wait for the longer-term developments that you would, for example, need for the mobility case, which is a great case. It's just time and effort that's going to be required to develop it.

"And then also in other areas where new technologies have still to be commercialised. For instance, going through to green steel, there's still development work needing to be done before that becomes a reality. But, here and now, there are opportunities immediately to produce green ammonia, or do refining using green hydrogen, or atmosphere inerting environments that could immediately change to green hydrogen without any investment being needed in the end user operation."

GREEN FINANCE

Interestingly, the Climate Policy Initiative and GreenCape have prepared a technical report for South African's National Treasury on Assessing International Interoperability and Usability of the South African Green Finance Taxonomy. This report provides recommendations to ensure that South Africa's Green Finance Taxonomy remains a globally competitive framework for sustainable finance.

As climate finance flows increase, seamless cross-border investments are seen as being crucial to achieving national and global net zero targets. South Africa's Green Finance Taxonomy is said to align w...

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Positive infrastructure advancement is on the way in the Democratic Republic of Congo (DRC), SRK Consulting Congo chairperson Dominique Sambwa has pointed out.

Speaking to Mining Weekly during a Zoom interview, Sambwa drew attention to the DRC having secured considerable agreements and partnerships on infrastructure building, which are expected to take root over the next five years. (Also watch attached Creamer Media video.)

He called attention to the latest negotiation by the government involving a $7-billion infrastructure investment in power stations, roads, rail, hospitals and schools - with a lot to come between now and 2030.

At a time when the DRC is seeking to diversify its mining partners, it can be reported that some of the biggest infrastructure achievements to date have been through Chinese infrastructure contracts that are linked to the granting of mining rights to Chinese consortiums.

Interestingly, the DRC has increased its copper production from 70 000 t in 2000 to more than two-million tons last year, on average adding 100 000 t a year.

Moreover, the Central African country will require a lot more energy infrastructure to achieve it beneficiation aspirations. These involve adding value domestically to the metals and minerals with which it has been so abundantly endowed.

Besides growing its copper output considerably, the DRC is continuing to provide the world with 70% of the cobalt that is so crucial battery, superalloy and vibrant blue colour applications.

Chinese companies have dominated DRC's mining sector for almost two decades, playing a big role in extraction of mainly copper and cobalt in the Katanga copper belt in particular.

More recently they have ventured towards lithium. The presence of lithium mineralisation in pegmatites in the DRC's Manono area has been confirmed and those mining lithium there have announced that they will be entering the production phase next year.

Chinese companies are also in gold areas, mostly with artisanal mining. "Although this can count, let's say it's out of the control of officials. But what's very positive is that these Chinese mining companies have invested in infrastructure, their mines have created a lot of local jobs, and their operations have contributed significantly to DRC mining tax revenues.

"But criticism persists over some imbalances here and there in the agreements, with some controversial situations. But the economic impact is noticeably real," Sambwa pointed out.

While some Chinese mining companies have been accused of causing water and soil pollution, deforestation and displacement of local communities, distinctive corrective measures have also been put in place.

Most copper and cobalt is produced using acid leach and if certain measures are not taken, water and soil pollution can result.

"But what needs to be made known is that Chinese companies have been doing quite a lot to comply with regulations and international standards, which has resulted in greater environmental protection.

"Compared with what used to take place 20 years ago, I would say that there has been very major operational improvement in their operations but some environmental and social impact challenges still remain and more effort is taking place to enforce environmental and governance regulations but there is a lack of expertise and a lack of people with competence to deal with these challenges," Samba added.

Mining Weekly: These days, investment has got to be inclusive. It's got to benefit the ordinary citizen. Of course, if the infrastructure is big enough, it's going to benefit the ordinary citizen. But how are you getting this investment to flow to everybody in the DRC, big and small?

Sambwa: It's a still a challenge because of the lack of follow up to make in...

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In a major boost for sustainable mining and South Africa's clean energy ambitions, Mzansi Energy Consortium has signed a 12-year power purchase agreement with Palabora Mining Company (PMC) in Limpopo province.

Together, Mzansi and PMC will develop a large private renewable energy project, along with South Africa's first grid-forming project.

PMC's copper operations include an underground block-cave mine, a concentrator, a copper smelter with anode casting facilities and an associated acid plant, an electrolytic refinery tank house, a rod casting plant, and by-product recovery plants.

Producing about 60 000 t of refined copper a year, the company supplies South Africa's domestic market as well as the export market.

In addition to copper ore, PMC has an opencast vermiculite mining operation and recovery plant. Itrs industrial minerals division produces the vermiculite and markets the hydrous phyllosilicate mineral through US, UK and Singapore marketing outlets.

Other by-products are magnetite, nickel sulphate, anode slimes, and sulphuric acid.

The mine owes its origins to the distinctive Palabora Igneous Complex rock formation of the Ba-Phalaborwa region.

Close to the Kruger National Park, PMC, headed by CEO Guangmin Wei, is actively involved in wildlife management and cultural heritage programmes to promote sustainability.

The solar site is outside PMC's operational area to avoid interference with the Kruger National Park's protected wildlife. The Environmental Impact Assessment also addresses the region's high soiling levels.

SUSTAINABLE ENERGY

The 12-year Marula Green Power initiative will deliver 132 MWp of solar photovoltaic capacity, a 360 MWh battery energy storage system, and a dedicated 132 kV transmission line to wheel clean, green power to PMC's mining operations. The grid-forming solution will provide stable, dispatchable electricity while supporting South Africa's broader energy transition, the companies stated in a media release to Mining Weekly on Tuesday, June 17.

PMC asset management, safety, health, environment and quality executive manager Itumeleng Ngoae drew attention to the wheeled solar power and battery storage being aligned with carbon-emission and operating-cost goals, while simultaneously strengthening community development and sustainable mining.

"Partnering with Huawei, we've adopted an integrated factory-to-field model that shares technology risk across the lifecycle, from design through to operations," Mzansi Energy Consortium COO Wessel Wessels, who is also CEO of Journey2Green, pointed out.

"We expect financial close in Q4 2025, construction to begin shortly thereafter, and commercial operations to commence in early 2027. This project supports our long-standing commitment to South Africa's energy transition and will deliver significant carbon reduction and grid stability benefits," Mzansi Energy Consortium CEO Tsatsi Mahlatsi stated.

Mzansi Energy Consortium chief marketing officer Tumi Mogoera emphasised the project's inclusivity: "Matching this project to applicable socio-economic needs was key. Our localised development model ensures inclusive benefits during all project phases - feasibility, construction, and operation. We've committed to equity ownership for five communities, creating up to 750 short-term jobs and over 30 permanent roles, with strong support for local SMMEs."

Since 2023, community engagement has been a core focus, with the project underscoring how renewable energy can uplift local communities and preserving natural ecosystems.

Palabora has been in operation since 1956. The mining production footprint is relatively small, measuring 650 m in length and 200 m wide, with 20 production crosscuts and 320 draw points. With the coarse fragmentation of the orebody...

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Zambia is strengthening transparency and accountability to make sure that natural resources improve the lives of all of its citizens.

It gives easy visibility to the level of natural resource wealth shared with the governments of host countries. with data published online for everyone to access.

It falls within the Zambia Extractive Industries Transparency Initiative (ZEITI), which in turn is based on the global EITI, the mission of which is to improve openness..

What is now exciting about the G-Factor is that it highlights very accessibly the value that transparency and accountability bring to the everyday person living in a rural community the extent to which the mine down the road is not only creating value in that community, but also value for the country.

The instrument that it is using is called the 'G-Factor for Natural Resources' and already Mozambique, the Democratic Republic of Congo and Nigeria have expressed interest in emulating it, the 'G' standing for words including government, governance and good practice.

Being targeted is a nigh-automated online repository on the ZEITI website.

It moves away from documents of hundreds of pages and reports on a one-pager that provides statistics at a glance.

Last year, Zambia became the first country in Africa to publish 'G-Factor' data, the figures from which highlight the contrasting contributions that a mining company can make to its host country depending on the prevailing operating and market conditions.

Typically, the G-Factor is expressed as a percentage for each operating subsidiary engaged primarily in the extraction and sale of natural resources.

Plans are afoot to showcase the G-Factor during Zambia's upcoming EITI validation in October.

"Already optics indicate that it's the G-Factor metric is going to give us a bonus rating during that validation," ZEITI national coordinator Ian Mwiinga told Mining Weekly in a Zoom interview. (Also watch attached Creamer Media video.)

In its simplest form, it shows how much value accrues to the community and to the government, an indicator of the percentage of a natural resource company's revenue that is paid to the host country's government in primary and direct taxes, plus where the host government is a shareholder and receives dividends.

It is also an indicator of the efficiency of natural resources companies in converting those natural resources into funds for the host government.

The initial focus was on emeralds, which are mined in Zambia by Kagem, the mine run by the London-listed Gemfields headed by CEO Sean Gilbertson.

"Kagem was our first port of call," Mwiinga revealed, but the methodology has now spread to other companies that are not in the gems the gemstone business, but also in basic minerals.

"If you go to our website, which is zambiaeiti.org, you'll find the G-Factor metric and we're excited to continue building on that going forward," he added.

"It's value from your resources. Remember in the communities, the analysis is that we have a mine, therefore we need a hospital, we need a clinic, we need the road. But with the G-Factor, you are able to demonstrate, in a very concrete way, what value is left in the community, and what value goes to the national coffers.

"What is even more interesting is that it's a one pager kind of analysis. You don't need a 300-page document with various permutations. It's straightforward, and you can actually do it over the back of your of your palm or an envelope," Mwiinga pointed out.

Mining Weekly: Are there any plans to roll out the G-Factor beyond the mining sector?

Well, why not? I mean resources allowing, this is a metric that is very flexible.

What advice would you give other countries when it comes to adopting and rolling out the G-Factor and enabling tran...

Mining Weekly Editor Martin Creamer unpacks a new platinum and palladium trading ecosystem proposed by China; Pan African's success in starting up a gold tailings operation in Australia's Northern Territory; and the immediate production target set out by Copper 360's

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Zambia's South Africa-developed mining cadastre licensing system portals have been reactivated, the Ministry of Mines and Mineral Development has confirmed.

"The disruption was due to the expiration of contractual obligations with Spatial Dimension, the South Africa-based system developer. The Ministry has taken interim measures to reopen the platform while finalising contractual arrangements to ensure the system's continued management," Ministry principal public relations officer Shamwinda Tembo has stated in a release accessed by Mining Weekly.

Clients can now access all services provided by the mining cadastre department through themining cadastre map portal https://portals.landfolio.com/Zambia/ and the online transactional portal https://portal.miningcadastre.com

However, some are still querying the lack of reference to the 'must be hosted in Zambia' requirement, which was said to be mandatory under data privacy law. The implementation of this resulted in the temporary ousting of the Trimble Landfolio System - the Spatial Dimension system - would be closed.

A screenshot Spatial Dimension's notice stated: "After almost two decades of supporting the Zambian mining cadastre, Spatial Dimension no longer has the contractual ability to provide access to the service."

A subsequent notice was then put out by Spatial Dimension to explain that "This system is not available at the present time. Please contact the Ministry of Mines and Mineral Development for more information."

No insight has been provided into First Mining DRC-Zambia's report that the locally-hosted ZIMIS system was intended to accelerate the issuance of mining rights, supporting the nation's ambition to hit 3.1-million tonnes of annual copper production by 2031. However, within weeks of launch, the Ministry issued a March 17 press release confirming that ZIMIS had suffered technical challenges, the publication stated.

Meanwhile, hopes are high that the initial launch of South Africa's own new cadastre system in the Western Cape on July 1 will be successful amid concern about the introduction of grids, which some fear may make insight difficult.

In an update on the introduction of the absolutely essential but extremely long-awaited South African cadastral system, DMPR deputy director general Tseliso Maqubela disclosed that the department had once again found itself at risk of repeating what had taken place with the introduction of the troublesome prior mining licensing system on 1 October 2013, which is now a business school case study on how not to roll out a project owing to its collapse soon after being launched.

On the way now is avoidance of introducing the new cadastre all at once nationally. Instead the new licensing system is going to be implemented regionally. "There won't be one roll out nationwide," Maqubela revealed.

"We've decided that we'll start with the Western Cape. We're still targeting completion in June 2025, as we had committed," said Maqubela on the grounds that the Western Cape is a manageable jurisdiction with the highest number of operational mines, no backlog and a limited number of outstanding appeals.

"So, we'll be able to test the efficacy of the system using that jurisdiction, which will soon be followed by Eastern Cape, and then all the other regions will follow after that.

"We know that there are regions with complexity that we're going to have to deal with, and we don't want any comebacks, so currently we're doing data migration, particularly for the region where we're going to start validation of that data, making sure that it is audited.

"Come the 1st of July, you won't be able to use Samrad to apply in the Western Cape, you will have to apply using the new cadastral system.

"One key feature is that we've introdu...

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In a step to accelerate South Africa's just energy transition and establish the country as a global green hydrogen leader, R656-million has been committed to a green hydrogen fund.

South Africa's state-owned Public Investment Corporation (PIC) asset manager, the State-owned Industrial Development Corporation of South Africa (IDC), and the Development Bank of Southern Africa (DBSA) have committed the equivalent of $37-million to South Africa's SA-H2 green hydrogen fund, also known as CI3 South Africa.

The pioneering blended finance SA-H2 facility has been designed to stimulate the energy transition with a core focus on the green hydrogen value chain, support inclusive economic growth, and drive job creation.

The fund is managed by a partnership between leading climate finance investor, Climate Fund Managers, and a Dutch development finance institution, Invest International.

The announcement was made on the first day of South Africa's Green Hydrogen Summit in Cape Town on June 12, at which SA-H2 also announced its first investment: $20-million in development funding for the Hive Hydrogen Coega Green Ammonia Project at Nelson Mandela Bay, in the Eastern Cape.

Hive will become South Africa's first large-scale green ammonia production plant, producing a million tonnes of green ammonia a year for export. The project will ensure that an annual 2.6-million tonnes of COe does not pollute our planet and create more than 20 000 jobs during construction and operations.

The Development Funding Agreement will cover engineering, procurement, and construction selection; front-end engineering and design; and the completion of advanced stage permitting, environmental and social impact assessments; leading to offtake finalisation and financial close preparation. It also secures SA-H2's right to invest up to $200-million in construction funding. Financial close is targeted for the second half of 2026, with commercial operations expected in 2029.

SA-H2 blends public and private capital within a single platform, made up of the:

Development Tranche, providing early-stage risk capital and technical assistance to prepare projects for financial close. SA-H2 secured its initial commitments in 2024, raising R1.4 billion ($80-million) from Invest International and the European Commission.

Blended Equity Tranches, to finance construction of projects through a tiered capital structure: The Tier 1 first loss tranche designed to absorb construction-stage risk; the Tier 2 Junior Equity tranche offering enhanced returns, supported by the other tiers; and the Tier 3 Senior Equity tranche, supported by risk mitigation instruments offering moderate risk-adjusted returns.

Accordingly, the IDC and DBSA have each committed R178-million ($10 million) to the second close of the development tranche, enabling it to achieve its fundraising target. The PIC, on behalf of the Government Employees Pension Fund (GEPF), has committed an initial R300-million ($17-million) to the equity tranche as the anchor commercial investor in Tier 2. An additional allocation may be considered for the second close, subject to the PIC's approval processes.

Climate Fund Managers CEO Andrew Johnstone described the commitments of PIC, DBSA, and IDC as signalling what he said was strong market confidence in South Africa's energy transition and green hydrogen potential.

"These institutions are backing a new generation of infrastructure, such as the Hive Green Ammonia Plant, that will decarbonise the economy, create green jobs, and enhance long-term competitiveness. SA-H2's blended finance model unites local and international partners across public and private sectors to deliver the energy transition at scale," Johnstone explained.

PIC CIO Kabelo Rikhotso spoke of SA-H2 offering ...

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South Africa witnessed Pan African build the Mogale Tailings Retreatment (MTR) gold project on Johannesburg's West Rand ahead of schedule and below budget.

Now Australia is witnessing this Johannesburg Stock Exchange-listed mid-tier company perform with similar aplomb in its Northern Territory.

Last month's timely and on-the-dot monetary delivery of only such processing plant the region Pan African's Tennant Mines region has provided a guided 46 000 oz to 50 000 oz production, close to 1 700 km2 of prospective exploration ground.

"I believe the group has never been better positioned to take advantage of record gold prices," Pan African CEO Cobus Loots stated in a Vault Exchange update to Mining Weekly of record half-year gold production, lower gearing and a share buyback programme.

"Increased cashflow generation and de-gearing is allowing our business to continue to invest and grow, whilst also increasing cash returns to shareholders. The share buyback programme approved by our board demonstrates our confidence in the group and its prospects.

"We look forward to reporting our final results for the year ended June 2025 on 10 September, where additional details on progress with our growth projects and sustainability initiatives will be presented," added Loots.

Hold thumbs now that this September's feasibility study on the Soweto Cluster gold recovery project gives the go-ahead to something similar to the budget-beating and schedule-outstripping MTR, which is also located less than an hour's drive from Pan African's corporate office in Rosebank.

The Soweto Cluster study is also focusing on the option of constructing a new processing plant for a stand-alone 50 000 oz/y operation, amid MTR's guiding of 52 000 oz to 54 000 oz for financial year 2026 (FY26).

Surface assets also on track to achieve full-year production guidance are Evander's Elikhulu, with 49 000 oz to 51 000 oz, and Barberton Tailings Retreatment Plant, with 13 000 oz to 15 000 oz.

Additionally, all of the company's underground mines put in better second-half performances, with Evander underground guiding 46 000 oz to 50 000 oz and Barberton Mines underground guiding 69 000 oz to 72 000 oz.

This takes the total FY26 production forecast to a 40%-higher 275 000 oz to 292 000 oz at all-in sustaining costs (AISC) of between $1 475/oz and $1 525/oz.

AISC for the second half of FY25 are estimated at a higher $1 525/oz and $1 550/oz, with full FY25 AISC expected to be between $1 550/oz to $1 575/oz at an average exchange.

Sad news is the accidental death on June 6 of an auto electrician, who succumbed to injuries sustained while on duty at Barberton's Sheba Mine. "The group will continue its focus on various safety performance initiatives in order to improve safety statistics and strive for zero harm," said Loots.