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A robotic rig deployed at a project last year increased productivity by about 50% and consumed 75% less water than the more conventional rigs working on the same contract, Master Drilling director Koos Jordaan reported this week.

An image showing the robotic arm of the rig was displayed during this week's presentation of dividend-yielding, record $270.8-million revenue financial results for the 12 months to December 31.

In addition, Master Drilling's slim drilling robotic rig is moving to field trials in the second quarter of this year.

Interestingly, a company-developed slot-boring rig is being commissioned for larger diameter boxholes, and a low-profile rig is on a contract in Tanzania after being made available commercially last year.

Jordaan provided a far-reaching technology update for the drilling and mechanised rock excavation technology solutions company, which was established in 1986 and listed on the Johannesburg Stock Exchange Limited in 2012. Fochville-based, Master Drilling is active in close to 30 countries.

Covered during the presentation was company technology that is being advanced in rock boring, exploration drilling, shaft sinking, tunnelling, winch safety, digitalisation, efficiency upliftment, and technical investment across a broad front.

Technological advances are taking place amid the increased number of mines that are going underground requiring accelerated access to orebodies.

"It's important that we provide solutions for fast shaft and tunnelling access to underground orebodies, dilution reduction, and grade enrichment," Jordaan noted during the results presentation covered by Mining Weekly.

"For us to play an active role in this industry, focus on our automation, remote operation, and the robotics that we're driving in material handling, could make a big difference.

"There's also our understanding of what needs to happen in geophysics in exploration and in-hole data and information that's also important. How big data is treated and how value is generated from that by artificial intelligence is important," he added.

Master Drilling finds that clients with greater access to data have a bigger capability to be able to manage their operations in a safer and a more efficient manner.

"That being said, we also see risk in the implementation of solutions that are not brand agnostic. You can't have a project anymore that's operated in India and the servers are hosted in America," Jordaan opined.

TECH INVESTMENT

Being worked on are several raise-boring projects as well as engineering and design of a reverse circulation rig, which is required for specific shaft infrastructure construction. Engineering is also on the way for second-generation low-profile slot boring equipment.

Regarding shaft-sinking equipment, a 50 m test sink during the beginning of February is providing insight for commercialisation next year.

In tunnelling, a 5.5 m-diameter tunnel borer being advanced is heading for project mobilisation by the middle of theis year, and a completed 6.5 m-diameter tunnel boring design is awaiting inquiries.

Collaboration with Komatsu is also under way to identify the right opportunity to work together.

"In terms of cut and break, we're working in partnership with Element Six developing technology, and then also their consumables for tunneling applications, where we're very excited about the potential of this technology as a low-energy, non-explosive method.

"If you look at reef boring, we're busy assembling the system. We followed a staged approach where we've been successful on the milestones that we've set.

We'll do surface experimental testing with this unit, and then it should move to a field trial towards the end of the year. We're doing this work in collaboration with African Rainbow...

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The product basket of Anglo American Platinum contains eight more products then the five platinum group metals (PGMs) with which it is overwhelmingly associated.

Moreover, growing co-product revenue is helping to provide pushback against PGM price volatility.

"We mine and refine 13 products," Anglo American Platinum marketing and market development executive Hilton Ingram pointed out about the PGM mining and marketing company that is demerging into the standalone Valterra Platinum.

In addition to its five PGMs, the Johannesburg Stock Exchange-listed company's products basket also contains gold, nickel, copper, chrome concentrate, three sulphates and one rare earth metal.

Gold is at a record high with a bullish outlook in uncertain times, nickel prospects are improving following recent developments that have shown that Indonesia is price sensitive, continuing increases in demand for stainless steel translate into demand for chrome, and there is insufficient copper to meet the demand the global electrification trend.

These co-products are all helping to provide resilience against PGM price volatility and the commodity price cycle, Ingram noted at this week;s Capital Markets Day, covered by Mining Weekly.

PGMs are, of course, at the heart of the business, accounting for 85% to 95% of revenue over the last five years. While platinum is the largest by volume, changing prices put palladium into the revenue lead in 2019, rhodium then took over that role in 2021, with of platinum grabbing back the top revenue position in 2024. Then ruthenium and iridium play big roles in satisfying industrial market demand

CATALYTIC CONVERTERS, OXYGEN SENSORS, SPARK PLUGS

A breakdown of PGM market demand shows that investment made up around 3% of total demand in 2024, and jewellery 5%.

Various industrial uses attracted 25% of PGM demand, with green hydrogen expected to grow that significantly in time.

However, by far the largest PGM user at present is the automotive sector, where PGMs are used in emission controlling catalytic converters, oxygen sensors and spark plugs.

During this time of unprecedented change in the automotive industry, Ingram said: "I'm going to give you reasons why the mood music around PGMs has changed and why we should be optimistic."

Automotive demand as a function of the number of vehicles produced, the share of those vehicles that are catalysed, and the PGM loadings per vehicle.

Trends show that global auto demand volumes could beat consensus forecasts, with Ingram outlining how market demand still overwhelmingly favours internal combustion engine (ICE) vehicles.

On top of that, stricter emission standards and stepped-up testing are likely to lead to increased PGM loadings.

While historically, growth in global gross domestic product (GDP) has been accompanied by rising car sales volumes, today's consensus forecasts imply that an inflection point has been reached and that the age-old GDP-sales rise relationship will no longer hold.

"We asked the forecasters about the change: Is it because of mobility as a service? No, came the response.

"Is it self-driving vehicles? No, they said. These are still too far off to be affecting the forecast.

"So, what is changing? They attribute it to our changing relationship with cars, due to urbanisation, public transport and affordability. But that view assumes people buy cars purely for the utility of going from A to B and I'm not sure we do.

"If you've grown up poor, you know that cars represent more than just transport. They represent freedom and status.

"Our world is much bigger with a car. You have the freedom to go where you want, when you want. It's also a potent status symbol.

"Drive through the suburbs of Johannesburg today, and you see cars in the driveway that are...

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The Wits Mining Institute (WMI) has demonstrated to students and media the latest blasting initiation technology it is using in its simulated DigiMine as part of practical learning for students and in researching safer blasting practices.

The technology, which comprises the new-generation BlastWeb II system, as well as wireless detonators, has been supplied by electronic initiation company DetNet, which WMI has a long-standing collaborative partnership with.

The new blasting initiation system introduces various feature and functionality upgrades to its predecessor BlastWeb I, notably in terms of communication, monitoring, safety, security and integration with other systems in the mine.

Notably, some of the new features include centralised blasting from a control room, increased detonator capacity and accommodation for both wired and wireless detonators - the latter of which eliminates the need for surface wires and additional infrastructure.

The system also supports remote monitoring and reporting, all while being smaller in size than its predecessor and using magnetic transmissions for communication to ensure omni-directional coverage.

DetNet senior mining engineer Ntombifuthi Mathebula explained that each blast control unit of the BlastWeb II system had six channels, with one channel connecting up to 400 electronic detonators for a total capacity of 2 400 detonators.

DetNet first donated its BlastWeb I system to DigiMine in 2019 to train postgraduate students in its application and equip the future workforce with appropriate and practical skills based on real mining conditions.

DigiMine head Dr Ahsan Mahboob said exposing academics and future engineers to new technology was vital for mitigating against fall-of-ground incidents, which were still the primary cause of fatalities in the mining sector.

He emphasised the importance of collaboration and innovation among academia and industry to devise safer solutions for the sector, as well as other sectors that required detonation such as construction.

Mahboob said the BlastWeb II system, in particular, helped students to learn about the advanced digital aspects of mining technology, as well as contribute to more technology development, as DetNet plans to expand on the technology's functionality with input from WMI.

"DetNet's electronic initiation technology is an important part of modern blasting systems that makes mining safer while promoting sustainability and productivity," he added.

Notably, the use of BlastWeb by postgraduate researchers in the simulated mine conditions allowed them to explore possible avenues of integration with related mining systems such as ventilation and gas reticulation.

For example, post-blast conditions are often unsuitable for workers owing to dust and gases, delaying their return underground; however, integrated systems can allow for enhanced monitoring functions, real-time data generation and alignment between processes.

There are also opportunities to link blasting technologies to real-time geotechnical modelling to analyse post-blast rock stability. Advanced numerical modelling and simulations can optimise geotechnical conditions post-blast.

DetNet global market support manager Vinesh Naidoo advocated for more entrants in the mining industry to become aware of the benefits tied to electronic detonation and the advanced initiation systems available that can control blasting.

"[With] BlastWeb II, we embrace complex blast designs that deliver optimal results for miners, while also testing each detonator and blast from surface to ensure a safe and accurate blast with no misfires," Naidoo stated.

Mahboob added that the more precise blasting offered with the BlastWeb II system ensured more efficient use of resources and less waste,...

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Drilling and mechanised rock excavation technology solutions company Master Drilling, which was established in 1986 and listed on the Johannesburg Stock Exchange Limited in 2012, has declared a 23%-higher nigh-R100-million 2024 dividend while also moving the needle impressively on South Africa's safety-enhancing and cost-cutting mining front.

While reporting record $270.8-million revenue and earnings of $58-million in the 12 months to December 31, Master Drilling has also engaged in helping to advance the rollout of new technology, which is expected to take people out of vulnerable areas, elevate grades, lower unit costs, streamline downstream materials handling, reduce tailings management, and offer a propensity to advance from mechanisation to automation.

Also announced on Tuesday, March 25, was a new global partnership with De Beers Group polycrystalline diamond (PCD) and ultra-hard materials manufacturer Element Six, a pioneer in the development and manufacturing of ultra-hard materials.

The pair intend to deliver diamond-enabled tunnelling that reduces waste rock generation.

In addition, very promising additional separate advances involving Master Drilling were outlined to Mining Weekly by African Rainbow Minerals (ARM) executive: growth and strategic development in the executive chairperson's office Mike Schmidt following the Johannesburg Stock Exchange-listed company's presentation of financial results on March 10.

"Those two specific projects can really move the needle in this space," Master Drilling CEO Danie Pretorius enthused in a Zoom interviews with Mining Weekly. (Also watch attached Creamer Media video.)

"In the medium term, we should be well positioned to help the mining industry to get down to some of those orebodies that were not accessible in the past," an upbeat Pretorius opined.

A novel tunnel boring machine (TBM) at ARM, the diversified mining company headed by Dr Patrice Motsepe, is expected to open up a narrow tabular dipping platinum group metals orebody to allow narrow-reef boring to take place, so that upper group two reef extraction is maximised and waste minimised.

Master Drilling's activity with ARM, as well as its widespread function in nearly 30 countries, has helped to provide it with stable $332.5-million order book and further extend its already extensive $695.8-million work pipeline involving innovative drilling technologies and mining solutions.

Meanwhile, Pretorius expressed pride in the maturation of the company's inventive home-grown drilling and cutting technologies and displayed steadfastness in the its determination to enhance safety, uplift productivity, and magnify cost-effectiveness.

Beyond its core technologies, the far-reaching Fochville-based Master Drilling has strategically invested in asset-light digital ventures that encompass proximity detection solutions and integrated data and resource management systems specifically designed for mining operations.

Mining Weekly: What should be the big takeaway from your 2024 financials?

Pretorius: The two financial indicators that stand out are the profitability of the business and the balance sheet. For a company this size to increase the dividend 23% to nearly R100-million, with five times cover, is very important.

Is the transition to the green economy still a big driver of business for Master Drilling?

There are quite a few initiatives that we're busy with in the green economy space. Top of mind is the ARM project, the reef-cutting project that we're busy with, which was mentioned in the interview you had with Mike Schmidt of ARM, and just some context on that. If we can successfully roll out that reef-cutting project, we can probably, in theory, halve the waste development of a mine. Typically, a 600 000 t mine c...

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Confidence in the outlook for platinum group metals (PGMs) was expressed at the capital market day of which Anglo American Platinum, which is on its way to becoming the demerged and stand-alone Valterra Platinum.

"The market fundamentals of supply and demand suggest upside to the current PGM basket price," CEO Craig Miller highlighted about a group of precious metals that touch lives globally in the form of platinum, palladium, rhodium, iridium and ruthenium.

Existing demand is stronger than we had previously forecast, with demand for PGMs in catalysts more robust, and use in a wide range of industrial applications continuing to grow in line with gross domestic product (GDP).

"As we look further out, we also see the prospect of new demand segments to support the energy transition and the technologies addressing climate change, we reinforce our outlook that the demand for our metals is strong and it's sustainable," an upbeat Miller stated during the presentation attended in-person by Mining Weekly.

"At the same time, we continue to see primary supply decline on the back of lower investments in existing and new assets across the sector, while secondary supply, which comes from the recycling market, continues to under deliver against forecasts.

"We therefore believe that there will continue to be deficits in the balance between the PGM supply and demand, particularly in platinum and rhodium, which gives us positive outlook for PGM prices.

"So, as we go forward, we do have a differentiated value proposition. Firstly, we have an outstanding asset base being clear around the role of each asset within the portfolio and the investments that we continue to make to grow as well as sustain our asset integrity, supporting the continued delivery of steady production.

"In addition, our global marketing organisation delivers the right solutions for our customers and helps us maximise the value potential from every single ounce that we produce.

"Secondly, we've got the capabilities and the discipline to make the most out of that asset base. The primary objective is to make sure that all our managed operations remain in the most competitive part of the cost curve. This sets us up for through the cycle profitability, realising superior earnings margins.

"Thirdly, we bring our assets and our capabilities together with a strong balance sheet, with a clear capital allocation framework and a real discipline in how we execute.

"That should translate into a consistent and leading shareholder returns and great prospects for all our stakeholders.

"We have mine plans that give us a clear pathway to multiple decades of production. I'm grateful we don't have the reserve replacement challenges of many of our precious metal peers, and instead, can focus on optimising the full potential from our outstanding endowment. We also have a great balance. We have enough breadth in the portfolio to give us the diversification and a wide range of options to enhance value.

"Our marketing business provides a real connection to our customers and helps us to shape the demand for PGMs in a deliberate way. We have the team. We have the systems and the plans in place to position each one of our assets in the first half of the cost.

"In an industry that is unlikely to see significant sources of new supply, and we're low where the low hanging fruits on costs has already been taken out, this gives us the assurance of delivering cash through the cycle.

"We've put in place a new organisation structure, which is set up to make the most of our status as an independent company through efficient governance, clear accountability and a new level of agility.

"All of this sits behind our commitment to continue to deliver on our action plan, which involves a further R4...

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Namibia has produced its first green hydrogen; India has announced subsidies worth $259-million for its nine second green hydrogen auction winners; China has fired the starting gun on a new era of long-distance hydrogen-powered freight transport; Europe has put forward a "non-price" innovation for green hydrogen-based steel; Australia has picked a Hydrogen Headstart programme winner; Scotland has placed an order for a hydrogen electrolyser; and Bulgaria is stepping on to the hydrogen stage.

Mining Weekly can report that these current month developments have been announced amid a large number of less recent announcements, and also arise against the background of this month's South Africa-European Union Summit in Cape Town, where European Commission (EC) President Ursula von der Leyen stated in direct reference to South Africa: "You have clean energy in abundance, from wind to sun. You have raw materials that are critical for electrolysers, including 91% of the world's PGM reserves, and you have a rising industry to produce clean hydrogen and strong export ambitions." The summit, hosted by President Cyril Ramaphosa, positions South Africa as a future supplier of platinum-based green hydrogen to the European Union (EU).

Interestingly, green hydrogen was first generated in South Africa as long ago as 2012 by HySA with the help of a platinum-based electrolyser, with platinum group metals going hand-in-glove with green hydrogen and hydrogen fuel cells under the proton exchange membrane (PEM) flag.

The number of people working in platinum mining has doubled from 85 000 in 1988 to 183 000 in 2023. (Also see attached infographic.)

In Namibia, HyIron's Oshivela green hydrogen plant is using a 12 MW electrolyser from China's Peric Hydrogen Systems.

In India, none of nine companies that have won three-year subsidy payments for green hydrogen production has bid for the maximum subsidy across all three years, and those that bid for the maximum for one or two of the years brought down their overall average by requesting extremely low subsidies in other years.

In China, a new era of long-distance, non-stop 1 000 km-plus hydrogen truck travel has been entered. Advantages the refuelling advantage include full system diagnostics integration, and weight reduction.

In Europe, chemicals giant BASF has commissioned Europe's largest green hydrogen project at its Ludwigshafen complex in southwest Germany. The 54 MW PEM electrolyser supplied by Siemens Energy has more than twice the capacity of Yara's 24 MW PEM electrolyser in Norway, which previously held the title for Europe's largest completed green hydrogen project. In addition, German power utility RWE, in partnership with France's TotalEnergies, is advancing more than 30 green hydrogen projects. At the heart of the partnership is RWE's 300 MW Lingen electrolyser, which is expected to be operational in 2027. Moreover, EC last week presented an action plan to foster demand for EU steel products under the Industrial Decarbonisation Accelerator Act.

In Australia, Western Australia's ambitions to become a global clean energy powerhouse received a major boost with the federal government awarding A$814-million in production incentives to the 1 500 MW Murchison green hydrogen project. The funding forms part of the Hydrogen Headstart programme, designed to accelerate large-scale renewable hydrogen projects by bridging the commercial gap between production costs and market prices.

In Scotland, the Aberdeen Hydrogen Hub project, a scalable green hydrogen production, storage and distribution facility powered by renewable energy, is being delivered through a joint venture between bp and Aberdeen City Council. For this, Hydrasun has awarded a purchase order to Nel Hydrogen for a 2.5 MW cont...

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Shifting investment priorities and geopolitical uncertainty continue to shape the outlook for commodities, with platinum group metals (PGMs) facing unique pressures, Nedbank CIB markets research head Arnold van Graan reported on Thursday, March 20, when he described the mood in the PGMs sector as "remaining subdued".

On the one hand, supply is tightening and changing demand dynamics could push prices higher, and on the other hand, investor sentiment remains lacklustre, shaped more by short-term volatility than by the market's long-term trajectory, Van Graan outlined, while noting that this disconnect was evident in discussions at Mining Week in Cape Town, where industry leaders debated the risks and opportunities facing PGMs.

The divergence between short-term sentiment and long-term fundamentals is seen as being at the core of the PGM price conundrum.

Supply constraints are becoming more evident, particularly in South Africa, where ageing mines and years of underinvestment are limiting future production growth.

While no large-scale closures have been announced, rising costs and operational hurdles could soon drive further restructuring.

Markets tend to respond sharply when supply cuts become unavoidable, and history suggests that these turnarounds can take a long time to materialise but can be market-moving when they realise.

HYBRID VEHICLES

On the demand side, the hype around battery electric vehicles (BEVs) rapidly replacing internal combustion engine vehicles has softened.

While BEV growth continues, adoption is slowing owing to cost pressures, infrastructure challenges, and consumer hesitation.

Meanwhile, hybrid vehicles, which still require PGMs, are gaining market share and becoming a bigger part of the market mix.

Revised forecasts suggest that hybrid technology will remain essential to the transition to cleaner mobility, ensuring continued PGM demand.

With the platinum demand outlook evolving, there is a shift away from palladium, largely owing to geopolitical concerns over Russian supply.

Western automakers are reducing their reliance on Russian-sourced palladium, making platinum the preferred alternative.

While platinum's historical price discount to palladium was a key driver of this shift, concerns over supply security are now taking precedence, reinforcing platinum's position in long-term supply chains.

RECYCLING

Recycling, once a stable secondary supply source, has become less predictable. High used-car prices and reduced scrappage rates have constrained the availability of recycled PGMs.

Unlike past cycles, where price rallies quickly led to increased recycling, the pipeline of recyclable material has been depleted.

Rebuilding these supply chains requires time and capital, both of which are scarce in the current higher-interest-rate environment, making recycling a less effective market stabiliser.

Russian PGMs continue to flow into global markets despite sanctions, with supply routes shifting towards China and other non-Western-aligned countries.

Although these shifts have created short-term imbalances, history suggests that markets always find equilibrium.

Meanwhile, potential trade policy shifts in the US could introduce further volatility and uncertainty to a complex market.

HYDROGEN AND FUEL CELLS

Hydrogen and fuel cell technology remain long-term demand drivers, but their immediate impact is limited.

While industrial applications for PGMs are expanding, they are not yet large enough to offset declines in traditional autocatalyst consumption.

For now, the sale of vehicles that contain PGMs remains a primary demand driver, and any shifts in automotive trends should continue to have a material impact on PGM prices.

Investor hesitation continues to define this cycle. Despite clear signs of t...

Mining Weekly Editor Martin Creamer unpacks platinum recently being given a major boost with EU backing; the London Bullion Market Association calling for action along the entire gold value chain; and mindfulness, alertness, watchfulness and uptake being needed more than ever.

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With the gold price soaring sky-high, insight into the global gold assaying and refining standards that need to be upheld were intensively communicated at the conference this week of the London Bullion Market Association (LBMA), which proactively ensures gold market integrity, transparency and trust.

In providing this crucial insight, it was most interesting to hear the name of South Africa's Rand Refinery being mentioned in a renowned manner because of its 22 years of service as an LBMA gold market referee.

"Referees are an integral part of the work of the LBMA on the technical side of things," LBMA CTO Neil Harby, himself a former long-serving Rand Refinery technical assurance executive, pointed out.

In addition, Metalor Technologies of Switzerland's laboratory, trace analysis and metallurgy manager Daniela Manara, and LBMA's physical and technical services officer Hannah Coakley, outlined how good delivery, quality and integrity issues have, up to now, been proactively dealt with by Rand Refinery and four other refiners. However, because of the considerable workload, two additional referees were added to the referee list during the event.

"The LBMA plays a critical role in the precious metals market, ensuring quality, transparency and trust, but the referees are at the heart of this. They are acting as the gatekeepers who uphold the highest standards in bullion production and certification," Coakley said at the London event covered by Mining Weekly.

"The referees are key advisors to the LBMA, and throughout my five years in this role, a personal focus for me has been to continue the work of ensuring that the relationship between LBMA and the referees group continues to strengthen and develop.

"I believe that the referees group is unique in that competitors work together for the good of the industry and the market.

"Without this collaboration, the global gold and silver market would lack the credibility and reliability that makes it one of the most trusted investment spaces today," Coakley added.

As reported by Mining Weekly last year, Rand Refinery, as the owner of one of the world's largest integrated single-site precious metals refining and smelting complexes, is mitigating environmental impact by introducing renewable energy, with the South African gold refiner intent on reducing carbon emissions by 9 000 t to 11 000 t through growing its solar photovoltaic plant to a capacity of at least 5.4 MW. Importantly, the certified gold and silver chain-of-custody of the Rand Refinery, which was established in Germiston in 1920, is independently audited.

Regarding proactive gold-bar adjudicating, Coakley had this to say: "It's important to know that the referee and the applicant don't have any direct contact, and that the referees are never aware of the applicant name at any stage of the process, ensuring complete anonymity."

POROSITY RAISING CONCERNS

Worryingly, a hot topic which has recently raised concerns is the porosity and micro porosity of gold bars and interestingly, once again it is the Rand Refinery is part of the group that has been meeting to discuss how to deal with what has seemingly been brought about as a result of gold bars being produced in continuous induction furnaces rather than being conventionally cast.

While conventionally cast gold bars almost never contain porosity, bars produced in continuous induction furnaces often contained porosity, or micro porosity, the degree of which depends on the exact operating perimeters of a particular system.

With the increase in the use of induction furnace technology in the last decade, the presence of micro porosity in large bars was becoming more of a concern.

"The rejection of bars containing micro porosity in recent years, either by the LBMA as pa...

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In the next ten years, renewable energy market growth indications point to 30 GW of clean power capacity coming into play.

That is the calculation of Leon Groenewald, the MD of Exxaro Energy, the renewables division within the Johannesburg Stock Exchange-listed Exxaro Resources, which hosts Cennergi, a business that develops, finances, builds, owns, and operates bespoke and holistic projects that lower the cost of electricity through renewables partnerships and reduce carbon emissions.

Cennergi's stated mission is to build on its existing renewable assets and competencies in South Africa, while providing renewable-energy solutions to the private and public sectors locally, and in select global markets.

The operating wind assets of this business last year lifted revenue by more than R1.4-billion through the generation of 725 GWh of electricity, at an earnings margin of 80%.

Against that background, this question was asked during last week's Exxaro media conference, which followed Exxaro reporting a higher 2024 net cash position of R16.3-billion, up from 2023's R14.8-billion.

Mining Weekly: Do you foresee significant growth in your renewables business?

Groenewald: The answer is yes. Indications of the market growth over the next ten years for renewables is, let's call it, circa 30 GW, so we certainly think this is a market to target. Wind, if you can get it, is preferable, but if you look at the energy mix that is forecast, probably 60% to 70% is going to be solar. What we think will happen with solar is that, as the price of battery storage decreases, the combination of solar and battery storage will be able to compete with wind and also in terms of the time of use. So, we're certainly bullish about the wind and solar part of the equation, and we see battery storage as a rising star in the next couple of years. We already see it in Eskom. If you look at the tenders that Eskom issued and awarded, certainly in Bid Window 2, there's a significant reduction in tariffs already, so we've started to see the benefits of the combination of solar and battery storage developing.

BATTERY STORAGE

Battery storage, or battery energy storage systems (BESS), are devices that enable energy from solar and wind renewables to be stored and then released when the power is needed most.

BESS, which is said to seamlessly integrate with renewable energy sources, optimising their utilisation, minimising waste, and bolstering grid reliability, swiftly addresses grid challenges like under voltages, overloads, and reactive power deficits by injecting or absorbing power.

MINING TICKING THE BOX

Last year, group renewables capacity was increased to more than 437 MW by entering into a partnership with G7 Energies at Karreebosch Wind Farm, in the Western Cape, to provide platinum group metals (PGM) company Northam Platinum with 140 MW to power to its PGM mines for 20 years.

Moreover, the 68 MW Lephalale solar project at Exxaro's own Grootegeluk coal mine is on track to cut Scope 2 emissions by 161 000 t/y from mid-2025 and group wind asset project financing is expected to be settled by 2031.

Mining Weekly: In view of you doing a great deal with mining company Northam Platinum, are you going to focus more on mines in growing your renewables business? Is mining a good business area?

Groenewald: In terms of offtake, mines are generally larger offtakers, so certainly that ticks the box. From a counter-party credit risk, Northam is a very credible offtaker. But large industrials certainly come into play, and you'll see some of our colleagues in industry, particularly Noa Capital, which is backed by AIIM, doing the trader market. We also see that market as a precursor to the wholesale market that is developed, and therefore you can introduce offtak...