Global mine production of 929 t of gold in the three months to the end of June was a record for a second quarter, a period of firm gold demand and record gold prices, the World Gold Council reported on Friday.

Global central banks recorded 12 t of net gold buying in June, which was done through the International Monetary Fund and other public data sources, the council reported in its weekly market wrap-up.

At the time of going to press, the $2 473.64/oz told price was helping to solidify bullion's status as a formidable asset within the current disruptive economic landscape.

The council reported a second quarter of record price highs, driven by continued central bank buying, strong over-the-counter (OTC) investment , and a later-in-the-quarter upturn in Western exchange traded fund (ETF) inflows.

Conversely, the high price environment took its toll on jewellery consumption.

Total global gold demand, including OTC investment, was 6% higher year-on-year at 1 258 t. the World Gold Council added in its Goldhub report.

The London Bullion Market Association (LBMA) second-quarter gold price averaged a record $2 338/oz in Q2 - 18% higher year-on-year and 13% higher quarter-on-quarter.

OTC investment of 329 t was a significant component of total second-quarter gold demand and, together with continued central bank buying, it helped to drive the price to a series of record highs during the quarter.

Total gold supply grew by 4% to 1 258 t. In addition to the 929 t mine production hitting the second-quarter top spot, recycling supply was the highest for a second quarter since 2012, responding to the rising gold price.

Regional investment trends continued to diverge. Robust Eastern demand for bars, coins and ETFs contrasted with a marked Western decline, amid Western ETF investment flows beginning to return in the third quarter to date.

The council's full year outlook for 2024 is one of revived Western investment flows balancing out weaker consumer demand and potentially slower central bank buying compared with 2023.

Central bank activity was, once again, led by emerging market central banks such as the Central Bank of Uzbekistan and the Reserve Bank of India, which both added 9 t to their gold reserves during the month. The Monetary Authority of Singapore was the largest seller of 12 t in June.

Although gross purchases and sales are lower compared with the same period last year, buying strength continues with emerging market banks the main driving force of both purchases and sales.

Mining Weekly Editor Martin Creamer discusses Pan African’s Mogale Tailings Retreatment project being ahead of schedule and below budget; the Initial output from Sylvania Platinum’s new tailings project also being on track for the first half of 2025; and why Merafe’s ferrochrome output was down 17%?

The capital-raising success that emerging copper and zinc mining company Orion Minerals achieved is kindling high hopes that smaller South African shareholders will be facilitated to play a greater role in providing funding for new mining development and concomitant job creation.

Johannesburg- and Sydney-listed Orion has succeeded in bringing Australian Stock Exchange-style shareholder participation to smaller South African shareholders - and steps are being taken now to encourage a lot more of the same on the Johannesburg Stock Exchange (JSE).

"We can't really say that we've failed to raise money from retail in South Africa because we haven't tried, and now here's someone who came along tried and got it right," Utshalo founder Paul Miller commented to Mining Weekly in a Zoom interview. (Also watch attached Creamer Media video.)

Interestingly, of the R44-million-plus raised by Orion, the bulk - R33-million - was from small-end South African shareholders keen to increase their investment in the timely copper and zinc mines being developed in the Northern Cape.

"The Orion Minerals process has taught me that ordinary South Africans do want to own shares directly," Miller said, in reference to direct ownership of shares by ordinary South Africans being a pale shadow of the massive ownership by about ten large-end South African financial institutions, which manage more than 90% of South Africa's savings.

"There's been a significant change to the advantages that the regulators have given to large funds and how they've discriminated against individual investors.

"It was amazing what response we got from the market when we went out there to link up, really, with existing Orion shareholders," Miller added.

Utshalo's efforts to reach those investors in a new digital way assisted and although the Orion offer closed on the 23rd of July, Utshalo still has investors coming in, signing up on its website, and effectively putting their hands up for future similar offers.

"But I think it's important that while we show progress, we still need to lobby and campaign for our market regulators to take the same kind of steps that have been taken in other dynamic markets like Canada, Australia and the UK, where individual investors are given the credit they deserve as an important participant in the smaller end of the stock exchange."

An increasing number of concerned South Africans believe that this is conceivably the main reason why there are fewer than 100 companies on the JSE, which has been on a downward trajectory for the last 15 years.

Last year was the worst year on record for new JSE listings and primary capital raisings, despite many viewing the critical minerals boom as an opportunity to raise money for copper, lithium and graphite companies.

Mining Weekly: Most people agree that it's economically important that South Africa's mineral endowment and the Johannesburg Stock Exchange must be rejoined at the hip to help to fund lagging mining growth and to create jobs that are urgently needed. What is in the way of this being achieved?

Miller: The penny has not dropped with the financial regulators, with the exception, possibly, of the South African Reserve Bank, that there's a problem if you over-concentrate the buy side in your stock exchange, and that for smaller companies, particularly those out of the top 100, they need a diversity of smaller investors, small institutions, hedge funds, individuals, participating in the market. That penny hasn't dropped.

What is the potential for companies needing capital investment to achieve the same success as Orion from mainly smaller South African shareholders?

We have to recognise that South Africa's had a long history of inclusion in the financial markets. There's a whole generation of investors who grew up investing in new mines, participating in capital raisings. Many of them are aging now. We've had about two decades where there hasn't been much activity on that front because there's been signif...

First production from the developing Thaba Joint Venture (JV) chrome and platinum group metals (PGMs) recovery project on the northern part of the western limb of South Africa's well-endowed Bushveld Complex is expected in the first half of next year, the London Aim-listed Sylvania Platinum stated on Wednesday.

"The project will transform us into a significant chrome producer as we continue our examination of other opportunities," Sylvania CEO Jaco Prinsloo highlighted in a fourth-quarter to June 30 report.

The JV is made up of PGMs producer Sylvania Platinum's wholly owned South African subsidiary Sylvania Metals and ChromTech Mining Company subsidiary Limberg Mining Company and will process chrome and PGM ores from historical tailings dumps and current arisings within the Limberg chrome mine area.

"I'm very pleased with the excellent progress," Prinsloo added in the media release to Mining Weekly.

On schedule are the design, procurement and construction elements of the project, which Prinsloo describes as respresenting the first stage of Sylvania's strategy to diversify its production and income streams.

The 18- to 24-month execution of the provisionally budgeted R600-millon project came out of its starting blocks in August last year.

Thaba JV is poised to advance Sylvania's current core business retreatment of PGM-bearing chrome tailings in the six-plant Sylvania Dump Operations (SDO) in that a combination of run-of-mine (RoM) and historical chrome tailings will be treated, which will create a full margin chromite concentrate-revenue stream.

The group also holds mining rights for PGM projects in the Bushveld Complex's northern limb, which take in the Volspruit, Aurora and Hacra projects. Results of the Volspruit project's scoping study are expected during August.

In the three months to June 30, SDO recorded $20.6-million net revenue and earnings before interest, taxes, depreciation and amortisation of $2.8-million.

Cash of $97.8-million was on hand at the end of the period and SDO's Doornbosch operation achieved 12 years lost-time injury-free days.

A half-year interim cash dividend amounting to $3.3-million was paid in April and a special dividend totalling the same amount was paid in June.

SDO's Mooinooi and Millsell operations have reportedly stabilised after February's mineworker strike and optimisation efforts continue to address lower PGM feed grades and recoveries associated with the blend of feed sources at selected operations.

The strike plus lower PGM feed grades and a decrease in associated metal recoveries related to the ore mix at some of eastern operations resulted in a lower-than-anticipated quarterly production and ultimate yearly production of 72 704 platinum, palladium, rhodium and gold (4E) ounces for the full 2024 financial year, which was below the target of between 74 000 and 75 000 4E PGM ounces for the year.

The capital expenditure incurred of R98.2-million is in line with planned capital project schedules.

Optimisation of ore blending remains a priority with continuing focus on improving equipment runtime, which has resulted in an increase of 2% in flotation plant throughput.

A feasibility study for a potential new treatment facility for chrome tailings and RoM ore sources at the eastern operations is in progress.

At Lesedi, Section 189A labour relations consultations are under way on the possible restructuring of the operation.

PGM PLANT PROGRESS

Civil works for the PGM plant are complete and steel erection has commenced. The first batch of float tanks have been installed and fabrication of the reagent plant is under way.

Orders for long-lead infrastructure have been placed and most of the electrical, control and instrument design work has been completed, with small power, lighting and the last of the non-critical instrument datasheets being undertaken.

Preparation works have started for the equipping of strategic boreholes and opencast pit dewatering and recovery to supply clean water to the pla...

Diversified mining and marketing company Glencore expects to be able to announce the decision of the board regarding the potential demerger of its coal and carbon steel materials business next week.

The London- and Johannesburg-listed company is currently in the process of consulting with shareholders to assess their views on a potential coal and carbon steel materials business demerger.

An announcement on this is expected alongside the presentation of interim results on August 7.

Last month, Glencore acquired the remaining 77% of Canadian mining company Teck Resources' shareholding in Elk Valley Resources (EVR) steelmaking coal business.

"Post the acquisition of EVR, we are now in the process of consulting with shareholders to assess their views regarding the potential demerger of our coal and carbon steel materials business.

"We expect to be able to announce the outcome of such engagement and the decision of the Board regarding the potential demerger alongside our interim results next week," Glencore CEO Gary Nagle stated in its half-year production release to Mining Weekly.

"Across the portfolio, our full-year 2024 production guidance has been maintained and we have added additional steelmaking coal volumes in H2 2024, following successful closing of the EVR acquisition.

"Our forward-looking production guidance has been adjusted to separate steelmaking and energy coal.

"As anticipated, 2024 is expected to be a year of two halves, whereby the tracking of our year-to-date production versus guidance is expected to be caught up during the second half of the year," added Nagle.

Coal production of 50.6 million tonnes was 7% lower, on mainly the progressive effect of scheduled mine closures, the temporary impact of longwall moves in Australia in 2024 and export rail constraints in South Africa.

South Africa's energy coal production of 7.9-million tonnes was 0.6-million tonnes (7%) lower than in the corresponding first-half period of last year, mainly reflecting various measures implemented to progressively reduce coal production owing to export rail capacity constraints.

"As and when additional rail capacity is restored, the potential exists to increase production rates," Glencore stated.

Second-half energy coal production uplift is expected to arise mainly from longwall changes, improved equipment availability and reduced strip ratios in Australia.

South Africa's ferrochrome production of 599 000 t in the first six months of this year was 16% lower than in the corresponding period of 2023 as the Rustenburg smelter remained idled in response to weak market conditions and pending an improved price/cost environment.

Higher second-half copper production is expected from African Copper in the Democratic Republic of Congo and Antapaccay in Peru and higher second-half zinc production is seen to be on the way from Kazzinc in Kazakhstan, where Zhairem is continuing to ramp up.

There will also likely be more nickel from Murrin Murrin in Australia.

Full-year steelmaking coal production guidance has been updated to 19-million tonnes to 21-million tonnes through the inclusion of 12-million tonnes of expected second-half EVR volumes.

In the first half, own sourced copper production of 462 600 t was 2% down on last year and the 15 900 t of cobalt 27% lower than the first half of 2023.

Own-sourced overall zinc production of 417 200 tonnes was 4% down and nickel production a 5% lower 44 200 t owing to Koniambo's care-and-maintenance transition in New Caledonia.

Glencore expects to report a reduction in net first-half working capital and net debt.

The latest tailings retreatment project of Pan African Resources is ahead of schedule and below budget.

The Mogale Tailings Retreatment (MTR) Project, located to the west of Johannesburg, near Krugersdorp, on Gauteng's West Rand, is expected to produce 60 000 oz a year over a 21-year life of mine, at a forecast all-in sustaining cost (AISC) of less than $900/oz, London- and Johannesburg-listed Pan African reported on Monday.

"Exceptional progress has been made with the MTR Project's construction, which is nearing its final stages," CEO Cobus Loots stated in a Johannesburg stock exchange news service announcement.

Plant commissioning and first gold production at the below-budget MTR is anticipated well ahead of schedule in October 2024, with steady state production expected during December.

Pan African is not only creating 500 jobs for mostly local personnel but also helping to remove many years of environmental scarring brought about to the west of the City of Gold, where mining of the precious metal began in the 1880s, leaving behind a number of eco-social challenges.

"I can assure you we'll work to our ethos of making a positive difference to the site in the years ahead," Pan African chairperson Keith Spencer declared assuredly at the Mogale Tailings Retreatment sod-turning, covered by Mining Weekly in July last year, when attention was drawn to the West Rand location of the MTR project having, over many decades past, produced more than 2 000 t of gold from numerous deep underground shafts and tunnels, with some mines in the area deeper than 3.5 km from surface.

Apart from removing the unsightly and dangerous tailings, there will be the added benefit of filling in abandoned underground tunnels with re-mined waste material to eliminate illegal mining. The rehabilitated ground can be put to better economic use for factories, industry and housing.

Moreover, an independent feasibility study for a new solar plant at the MTR operation is expected to be completed before the end of September.

Solar plants are already a standard feature at Pan African's other operations. At its Fairview gold mine, a key part of the Barberton Mines complex in Mpumalanga, construction and mechanical assembly, including installation of the solar trackers for the mine's 8.75 MW solar photovoltaic generating plant, have been completed, enabling the commencement of the required test work to ensure that the facility complies with operating standards and regulatory requirements. First power generation is anticipated in the next month. This solar plant is expected to provide 15% of Barberton Mines' energy requirements, with annual electricity cost savings of $2.4-million, at current Eskom tariffs.

Evander Mines' and Barberton Mines' solar photovoltaic generating plants are now funded by a $19.4-million, five-year green loan facility, which became effective in June. This facility provides for an accordion option of $13.9-million to enable the group's future renewable energy funding requirements.

Pan African has again delivered into its production guidance, while further improving safety rates, it stated in its operational update for the year to June 30, which was accompanied by the announcement of group financial manager Marileen Kok taking over from retiring Deon Louw as group financial director.

The 6.2%-higher annual production of 186 039 oz was within guidance with the average achieved gold price of $2 021/oz ore R1 215 827/kg.

Barberton Mines produced 71 470 oz, Evander Mines underground: 40 869 oz, Elikhulu 54 812 oz, and Barberton Tailings Retreatment Plant (BTRP) 18 888 oz.

AISC for the reporting period is expected to be $1 350/oz, at an average exchange rate of R18.71 to the dollar.

The all-in sustaining production costs at the Elikhulu and BTRP tailings retreatment operations were described as being "some of the lowest in Southern Africa".

Commissioning of the ventilation shaft hoisting system at Evander underground during the start of the 2025 fi...

Mining Weekly Editor Martin Creamer discusses the Minerals Council South Africa's support of beneficiation where the economics make sense; Seriti Resources advancing into wind energy through Seriti Green and which may be further advanced by an entry into solar power; and Kumba Iron Ore being pleased with the new multi-party government’s commitment to continued reform of iron-ore logistics.

Anglo American Platinum, which is in the process of demerging from the Anglo American group, this week expressed confidence in the demand outlook for the platinum group metals (PGMs).

The Johannesburg Stock Exchange-listed platinum group metals (PGMs) is being set free to advance unfettered as an independent pure PGMs play.

It will do so with the added benefit of a secondary listing in London and carrying with it mining, processing and marketing know-how gathered over many decades.

"What we're particularly excited about is really the demand outlook for PGMs," an upbeat Anglo Platinum CEO Craig Miller commented to Mining Weekly in an exclusive interview, in which prime emphasis was placed on feet-on-the-ground, shoulder-to-the-wheel determination to achieve the utmost operational excellence from high calibre assets.

"Not only can we drive greater value from the current performance of our assets, but these assets also have fantastic optionality into the future, and we're continuing to invest into this optionality in a disciplined way," Miller outlined amid PGMs not only continuing to play a critical role in catalytic converters in internal combustion engine (ICE) vehicles and hybrid ICE plus battery electric powered vehicles, but also the far-reaching opportunities that are continuously presenting themselves as the world becomes cleaner and greener to combat climate change.

"PGMs can play a very significant part in that transition, and ultimately their utilisation in that greener world.

"That's probably more pronounced in terms of how PGMS can be used in the generation of green hydrogen and from renewable energy being converted green hydrogen," he said referencing the deployment of green hydrogen into many different sectors.

These sectors include hard-to-abate industries, such as the cement industry or the steel industry, but also mobility, of a heavy- and light-duty kind, utilising PGM-enabled green hydrogen powered by PGM-enabled fuel cells.

"That's really is the exciting opportunity for us. To capture a very significant portion of future demand, you would need round about one car in 10 to be a fuel cell electric vehicle car, which has no emissions, is powered by green hydrogen, and is entirely green.

"That will then result in round about six-million to eight-million ounces of PGM demand, and that, really, is just one of the applications where PGMs can be used in the future, which makes us so excited about what PGMs can bring, and therefore, the excitement around what a standalone, independent company will be once we've completed the demerger", which is expected before the end of 2025.

Mining Weekly: Why are you optimistic that the present low price of platinum is not a long-term problem?

Miller: There have certainly been some lower price environments. Certainly, we experienced that in in 2023 but I just need to take you back to 2021 and 2022 when, as a result of constraints in supply as a result of covid and the issues that we had in getting supply around the world,, we had record prices for PGMs. In that environment, a lot of our customers were concerned around supply, and went out and bought additional metal. They've been working through that inventory and we think they're probably back to more normalised inventory levels, so we should see some pickup in buying of PGMs. We're starting to see a narrowing of the anticipated surpluses in palladium and rhodium to more balanced environments, and platinum even growing in deficit. It's on that basis that I think you'll start to see some form of price correction in months to come.

Why is the word hybrid constantly cropping up in relation to PGMs and mobility?

A hybrid vehicle is probably the best of both worlds. You have a pure battery electric vehicle, which is just powered by a battery, and you have an ICE vehicle, which is powered by gasoline. A hybrid has both a gasoline engine and a battery. If you're going on short distances, you'll probably use the battery. If you're goin...

By the end of 2025, the new Anglo American is going to be focused 100% on copper, iron-ore and crop nutrient mining.

By that time, the demerged Johannesburg Stock Exchange-listed Anglo American Platinum will have a secondary listing in London, and on their separate ways will be Anglo's De Beers, steelmaking coal and nickel businesses.

What is described as simplification and transformation will have taken place, which prompted this comment from upbeat Anglo CE Duncan Wanblad: "We'll be in a substantially more resilient financial position, with considerable growth optionality embedded within the portfolio." (Also watch attached Creamer Media video.)

Plus points are that its copper mines in South America provide an organic pathway to 30% near-term production uplift, and the iron-ore mines of South Africa and South America benefit from through-the-cycle cash generation potential as a consequence of lump and direct reduction iron (DRI) price premiums.

With its Woodsmith project, the new Anglo will also have a food security option, which it believes encompasses one of the best megatrends of today's markets.

"As a result, we believe that this business will be valued much more positively by the market," an upbeat Wanblad told investment analysts amid commitment to transform the business over the next 18 months.

"The new Anglo has an incredibly powerful investment case, one that is far more focused with high quality set of portfolio assets, which means growth optionality that we already own.

"With our assets housed in a much simpler structure going forward, we can deliver material cost savings, and transform our Ebitda margin.

"We're confident that we're reshaping this company to be a more financially resilient one, driving improved through-the-cycle performance that will maximise value recognition by the market," Wanblad highlighted during the Johannesburg- and London-listed company's half-year results presentation covered by Mining Weekly.

Legal technical accounting and commercial work streaming and engaging with some buyers is underway.

"Alongside that, we have a team focused on the organisation design work to make sure that we are ready to execute as soon as each of these processes is complete, without any concerns to business continuity, or on delivering our efficiency targets.

"We then have a very tight team at the centre of all of this, to make sure that we manage all the critical interdependencies across all of these processes."

Starting with the disposal of the steelmaking coal in Australia, Anglo reported that it is "moving at full speed with the sale process".

"At Nickel, our intervention to limiting price pressure on cash flow has already delivered some results and we're well positioned to progress with our preferred option of a sale.

"At Anglo Platinum, we're well on track for a 2025 execution. Teams are working together to be able to deliver the separation as effectively and as efficiently as possible.

"Whilst our prior experiences with the likes of Mondi and Thungela was for the demerger process to take more than 18 months, we're well set to move more quicker given that Anglo Platinum already has listed company processes, systems and governance structures in place.

"That significantly accelerates this particular process, although it is important to flag that there are some complex separation pieces of work that will need to be done, as many of the functions are very closely integrated with a with a greater Anglo group.

"We want to make sure that Anglo Platinum gets done in the right way and set this business up to deliver its tremendous potential too.

"Success involves getting the separation right plus ensuring that the right actions are taken in managing flow back proactively.

"Alongside its primary listing remaining on the Johannesburg Stock Exchange, we're therefore looking at the potential of a secondary listing of Anglo Platinum on the London Stock Exchange and these processes are now underway," Wanblad outlined....

Diversified mining company Anglo American, which is in the process of restructuting itself, on Thursday delivered $5-billion underlying half-year earnings for the six month to the end of June.

"I'm very encouraged by a strong operational performance that delivered steady volumes and a 4% improvement in unit costs, while still facing weak cyclical markets for platinum group metals and diamonds," Anglo American CE Duncan Wanblad stated.

The Johannesburg- and London-listed centenarian company reported that it is on track to reduce annual costs by $1.7-billion and reduce capital spend by $1.6-billion over the 2024-2026 period.

"We are moving at pace to create a much more agile and structurally profitable mining company," Wanblad added in a media conference covered by Mining Weekly.

The new Anglo will be focused on its copper and Iron-ore businesses, while maintaining its growth optionality in crop nutrients.

It reiterated its committed to completing the key elements of this transformation, which involves the demerging of Anglo American Platinum and De Beers by the end of 2025.

It reiterated its target of creating a simpler, higher valued mining company with extensive growth options and considerable strategic flexibility.

The operational focus delivered half-year margins in earnings before interest tax depreciation and amortisation (Ebitda) of 53% in copper and 43% in iron-ore.

The $5-billion half-year earnings had a collective Ebitda margin of 33%.

South Africa's Kumba Iron Ore in the Northern Cape was described as continuing to perform strongly while collaborating with State logistics enterprise Transnet on rail reliability, while iron-ore subsidiary Minas-Rio in Brazil achieved its strongest first half production for several years.

The steelmaking coal business in Australia has also improved its production and cost performance, though the incident at Grosvenor will set production back, Anglo cautioned.

The process of divesting the steelmaking coal business is continuing with Anglo reporting strong interest from a large number of potential new owners.

The 4% improved unit costs improved were described as reflecting weaker currencies, operational improvements and effective cost control.

The development of the Woodsmith crop nutrient project has been slowed down and a joint venture partnership sought.

SOUTH AFRICAN RENEWABLES

In addition to its 2030 operational emissions reduction target, Anglo is targeting carbon neutrality across its operations and a halving of Scope 3 emissions by 2040.

Anglo said that it has managed to reduce Scope 1 and 2 and greenhouse gas emissions in the six months to below what they were in the prior period.

In South Africa, its jointly owned renewable energy venture with EDF Renewables - Envusa Energy - has completed the project financing for the first three wind and solar projects.

These three renewable energy projects, known as the Koruson 2 cluster and located on the border of the Northern Cape and Eastern Cape, are designed to have a total capacity of 520 MW of wind and solar electricity generation.

Managed operations in South America are already supplied with 100% renewable electricity and the managed operations in Australia are scheduled to move to renewablesupply from 2025.

At this stage, 60% of the global grid supply for the current Anglo portfolio would be drawn from renewable sources.