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Mining Weekly Editor Martin Creamer discusses Anglo American delivering new platinum-catalysed hydrogen fuel cell electric vehicle mobility options across Europe; a call for the mining industry to commit to an intensified pursuit of decarbonisation goals amid the slow rate of decarbonisation; and thoughts on Barrick Gold’s restrictions in Mali.

TSX-listed Ivanhoe Mines has announced its 2025 production target for the Kamoa-Kakula copper complex in the Democratic Republic of the Congo (DRC), aiming for between 520 000 t and 580 000 t in the year.

This follows a record-breaking performance in 2024 with the complex producing 437 061 t of copper in concentrate for the full year, marking a 12% year-on-year increase. The fourth-quarter of 2024 alone delivered a record 133 819 t, a 15% quarter-on-quarter increase, while December saw a monthly production record of 47 058 t.

Ivanhoe attributes the year-on-year growth to the ramp up of the Phase 3 concentrator in the second half of 2024; while the record quarter production was a result of strong performance from the Phase 1 and 2 concentrators, delivering record throughput with improved grade and recovery, as well as the Phase 3 concentrator reaching and at times exceeding nameplate design parameters.

Kamoa-Kakula's high- and medium-grade ore surface stockpiles totalled about 4.19-million tonnes at an estimated, blended average grade of 3.18% copper.

Contained copper in the stockpiles at the end of December totalled about 133 000 t.

At year-end, there were about 30 000 t of unsold copper in inventory, up from 16 000 t of unsold copper in concentrate at the end of the third quarter.

The inventory of unsold copper is largely undergoing toll treatment at Lualaba Copper Smelter (LCS) and is expected to reduce during the first quarter.

However, Ivanhoe reported that a recent fire caused damage to a portion of Kamoa-Kakula's on-site backup generator, which could potentially delay the commissioning of its on-site smelter by up to three months. Expedited repairs are under way

In addition to its copper operations, Ivanhoe's ultra-high-grade Kipushi zinc mine, also in the DRC, produced 50 307 t of zinc in concentrate in 2024, including a monthly record 14 900 t in December as ramp-up approaches nameplate capacity.

Kipushi 2025 production guidance has been set at between 180 000 t and 240 000 t of zinc.

At the end of December, Kipushi's high- and medium-grade ore surface stockpiles totalled about 344 000 t at an estimated average grade of 23% zinc. Contained zinc in the stockpiles totalled about 79 500 t.

In recent months, imported power available to Kamoa-Kakula has been reduced owing to drought conditions affecting hydroelectric capacity in Zambia and Mozambique. Although the rainy season has begun, the company says it is too early to predict the degree to which reservoirs that provide hydropower in Zambia and Mozambique will be recharged.

Given this uncertainty, 2025 production guidance will be reviewed at the end of the rainy season in the second quarter.

Meanwhile, Ivanhoe Mines is also exploring options for future hydropower imports from Angola.

Ivanhoe Mines expects to release its 2024 financial results after market close on February 19.

The mining industry needs to commit to an intensified pursuit of decarbonisation goals amid the rate of decarbonisation being too slow to meet science-based targets, consulting services firm dss+ points out ahead of the February 3 to 6 Investing in African Mining Indaba, where it is a knowledge partner.

Mining accounts for 4% to 7% of direct global greenhouse gas emissions. When Scope 3 downstream emissions are included, this rises to 28%, or 19 440 megatons of carbon dioxide equivalent, and little is changing.

The research shows that roughly the same amount of greenhouse gas being emitted per tonne of mineral output every year, which holds especially true for deep mines that are experiencing ore-grade reduction and increasing demand for ventilation and cooling services.

Analysis of 52 mining companies found the average annual rate of emission reduction between 2018 and 2021 to be approximately 2%, resulting in a 40% distance from 2030 targets.

The current decarbonisation rate aligns to a future of more than 2°C of warming, way above the 1.5 °C future set out by the Paris Agreement and associated science-based targets, dss+ principal Gerhard Bolt points out in a release to Mining Weekly.

To achieve the required curtailment, the decarbonisation rate must increase to 4.5% a year across mining and be extended to include Scope 3 emissions.

Bolt described the mining industry as being faced with the paradox of having to reduce emissions to align with decarbonisation goals and improve their environmental, social, and governance performance, but also having to ramp up production to meet the demand for energy transitions minerals, which will require more energy and produce more absolute greenhouse gas emissions in the process.

"This creates a situation where the current rate of decarbonisation is too slow to meet targets - an issue that is increasingly seen as problematic by the investors needed to fund the exploration and expansion of mining operations," says Bolt.

Although many mining companies have committed to decarbonising their operations, interviews with mining executives across commodities and geographies reveal that several barriers still exist, ranging from reporting difficulties to implementation barriers.

The step change required can only be achieved if leadership adopts a value-based approach to decarbonisation - recognising the value of reducing emissions, creating the appropriate cultural context, building the right organisational and individual capabilities, and developing enabling structures and processes.

Specifically, dss+ recommends that mining companies must adopt internal carbon pricing consistent with net-zero targets, create a cultural context conducive to transformation, take on new data collection and monitoring frameworks, focus on quick wins while taking a long-term view, improve coordination of decarbonisation planning between sites, co-create conducive policy and financing frameworks, and demonstrate progress.

"Ultimately, there are clear, proven strategies that can help miners to overcome barriers and accelerate their decarbonisation journeys in the short-term," he adds.

Underpinning this is the requirement for a mindset shift within the industry, with leaders recognising the value of reducing emissions, creating the appropriate cultural context, building the right capabilities, and developing enabling processes.

"Doing so can drive significant reductions that are sustainable in the long-term, and thereby support more positive outcomes for all stakeholders."

GOLD MINES COULD LEAD WHILE GOLD PRICE IS HIGH

With the gold price as high as it is, gold mining companies could take over the baton that platinum group metals (PGMs) mines held at the time when PGM prices were far higher than now.

For example, in 2022 PGM mining company Anglo American Platinum launched the prototype of its first self-developed zero-emission hydrogen-powered mine haul truck, which was developed as part of its Future Smart Mining st...

New York- and Toronto-listed Barrick Gold remains restricted from shipping gold from its Loulo-Gounkoto mining complex in Mali, West Africa.

In addition, an interim attachment order has now been issued against the existing gold stock on site, which further prevents its export and disrupts normal operations.

Barrick believes the interim attachment order is unwarranted and is in contravention of the agreed dispute resolution mechanisms.

The inability to ship gold not only affects operations but has broader implications for the local economy, the 8 000 employees and its many local service providers, Barrick president and CEO Dr Mark Bristow stated in a release to Mining Weekly.

If this issue is not resolved within the coming week, Barrick will have no choice but to temporarily suspend operations at Loulo-Gounkoto. Such an action would be deeply regrettable but necessary, as previously reported.

"Barrick remains committed to constructive engagement with the government of Mali to resolve the existing disputes amicably," Bristow stated.

As previously disclosed, Barrick has initiated arbitration through the International Centre for the Settlement of Investment Disputes as a recognised mechanism to address these matters of disagreement while maintaining the integrity of existing agreements.

In parallel, Barrick is continuing its efforts to reach an agreement with the Mali government on a memorandum of agreement to resolve the existing disputes, redefine the partnership's future and increase the State's share of benefits from the Loulo-Gounkoto complex.

Bristow noted that the situation was further compounded by the continued detention, on unfounded charges, of several of Barrick's Malian employees and the company was actively working to secure their release and ensure their well-being. The company reiterated its commitment to the safety and rights of its workforce as a critical priority.

"Barrick continues to be a steadfast partner to Mali and its people, contributing significantly to the country's economic and social development over nearly three decades.

"We're committed to dialogue and finding a mutually acceptable resolution that allows us to secure the future of Loulo-Gounkoto as a vital economic contributor to Mali," Bristow emphasised.

Multinational metals and mining group Sibanye-Stillwater has entered into a $500-million streaming agreement with Franco-Nevada (Barbados) Corporation, a subsidiary of Franco-Nevada Corporation.

The deal grants Franco-Nevada access to gold and platinum streams from Sibanye-Stillwater's Marikana, Kroondal and Rustenburg operations, in South Africa, in exchange for an upfront payment of $500-million.

Under the terms of the agreement, Sibanye-Stillwater will deliver 1.1% of platinum, palladium, rhodium and gold (4E) platinum group metals (PGM) ounces contained in concentrate as gold until 87 500 oz of gold are delivered; 0.75% of 4E PGM ounces until 237 000 oz are delivered; and 80% of gold production thereafter.

For platinum, Sibanye-Stillwater will deliver 1% of platinum ounces until 48 000 oz are delivered, increasing to 2.1% until 294 000 oz are delivered, with no further obligations beyond that point.

The company will also receive a production payment equal to 5% of the spot price of the respective metals during the initial delivery periods, increasing to 10% for gold once 237 000 oz have been delivered.

The transaction, which is subject to approval by the South African Reserve Bank, includes an agreement to convert Franco-Nevada's 5% net profit interest on the Pandora property to a 1% net smelter return royalty.

Sibanye-Stillwater CEO Neal Froneman describes the agreement as a value-accretive transaction that raises non-debt capital at a competitive cost. He emphasises that the deal monetises gold, a minor component of the company's metal production, and a finite amount of platinum without significantly impacting its exposure to future price increases.

The financial support from Franco-Nevada, he says, validates the quality and long-term viability of Sibanye-Stillwater's PGM assets, which continue to generate value for stakeholders.

The funds will bolster Sibanye-Stillwater's capital structure, improve liquidity and reduce the net debt-to-adjusted earnings ratio by up to 0.7 times. The transaction strengthens the company's financial position without imposing repayment obligations or minimum delivery requirements.

The streaming agreement applies to production from the Marikana, Kroondal and Rustenburg operations, including potential underground growth and replacement projects.

These operations have extensive underground resources that could support low-cost brownfield developments and extend the life of the mines.

Feasibility studies are under way for several projects within the stream area, including the Kroondal depth extension projects and the Saffy and E3/E4 initiatives.

The development of these projects is contingent on achieving commercially viable outcomes, with further updates expected after the studies are completed.

Sibanye-Stillwater highlights that the agreement provides long-term financing while retaining upside leverage to rising PGM prices.

"This strategic partnership marks a significant step for the company as it continues to optimise its financial structure and advance long-term growth opportunities within its South African PGM operations," the company concludes.

The Competition Tribunal approval of the acquisition of ferromanganese major Metalloys in Meyerton, Gauteng, is raising hopes of a revival of South Africa's manganese alloy potential.

Metalloys, which has one million tons a year in manganese alloy capacity, has been on care-and-maintenance and has not been operating since March 2020.

Now Khwelamet, owned jointly by Menar and Ntiso, will be taking over where South32 subsidiary Samancor Manganese left off. Samancor is owned 60% by South32 and 40% owned by Anglo American.

Khwelamet's involvement in the production of manganese ore, through Menar, is relevant to the proposed merger.

The Competition Tribunal has approved the proposed merger subject to conditions relating to employment, remediation and rehabilitation.

Post-merger, Khwelamet would, the tribunal stated, exercise sole control over the Metalloys Operations conducted by Samancor Manganese, which was involved in the smelting, refining and processing of high-carbon and medium-carbon ferromanganese.

Khwelamet, it added, is active in sectors including mining and energy, infrastructure, property, financial services, telecoms, resources and agriculture and professional services provision.

Prior to ceasing operations, Metalloys was involved in producing manganese alloy. Its current focus has been to continue with remediation activities which include the selling of slag materials for use in road base and concrete making; uphold all environmental licenses and regulatory requirements; and maintain critical idle equipment to ensure their ability to safely restart as and when required, the tribunal stated.

As reported by Mining Weekly, private investment company Menar is looking to restart at least two of Metalloys' four furnaces. Bringing two furnaces back online would provide the base for the production of 500 000 t/y of ferromanganese and require a feed of one-million tonnes of manganese ore from South African mines.

"When Samancor decided to close the operations, it was purely because of issues with power availability. Now with Eskom having surplus power, the opportunity is created for ferroalloy producers and Metalloys is one of them,"

The Metalloys property has a gas-fired power station, which Menar would like to revive in tandem with baseload from Eskom, waste-to-power generation and solar power generation.

"If the numbers make sense, then we will hopefully restart the operations in the next 12 months. That's the plan," Menar MD Vuslat Bayoğlu told Engineering News & Mining Weekly in a recent Zoom interview.

"It's critical to make the product as green as possible and in addition to restarting the ferromanganese furnaces, we'd like to create an energy complex in the area. Hopefully this project will keep us busy next year.

"If you think about the 16-million-tonne to 17-million-tonne export capacity from South African manganese mines, a million tonnes is a sizable amount for the mines to supply for ferromanganese production. It will also be great for employment opportunities within the Vereeniging and Meyerton areas," Bayoğlu added.

Rail infrastructure is there to receive manganese from the Northern Cape to feed this historical asset, which can now be served by new technology.

South Africa is producing one-third of the manganese ore in the world, but selling only 5% of the ferromanganese to the world.

Menar's own diversification into manganese began in 2021 with the East Manganese project in the Northern Cape, where the development of a new underground manganese mine by the company is now at an advanced stage of assessment.

Blyvoor gold mine, the restarted underground Witwatersrand gold mine west of Johannesburg, is on the way back up.

South African mining company Aurous Resources reported on Monday, December 17, that rising gold prices and Blyvoor's improved operational performance has increased the Carletonville mine's operating profit by 59%.

In its most recent preliminary financial and operational results for the period ended August 31, unaudited preliminary revenue of R410-million was reported, a 5% increase year-on-year.

"We're pleased to announce meaningful progress on all fronts over the past quarter," Aurous CEO Richard Floyd reported.

In addition to operating Blyvoor, Aurous is developing the Gauta tailings retreatment project on the West Rand.

"We've enjoyed the continued support of the various regulators, we've closed out on our interim audit…and most importantly we have attracted strategic partners to further the funding drive towards capitalising our next phase of growth," Floyd noted in a release to Mining Weekly.

On closing the transaction, Hennie van Greuning, Christine Coignard and Stephen Hayes will join the board as independent non-executive directors amid Aurous securing commercial terms for a R356-million investment by Siyanda Resources through a private investment in public equity (PIPE) financing.

"We see many opportunities to work with the Aurous executive team to unlock potential opportunities and create value for shareholders," Siyanda FD Imraan Osman enthused.

The agreement remains subject to regulatory and shareholder approval and the execution of full documentation.

If approved, the deal will bring the combined committed and commercially agreed upon PIPE financing to R489-million by adding to a previously unreported investment of R133-million.

Meanwhile, the business combination process with Rigel Resource Acquisition is expected its to close in January, with an ultimate listing on the US' NASDAQ stock exchange.

Since the restart of Blyvoor production in 2022, Aurous has been able to re-employ about 1 500 workers who had been unemployed following closure of the mine in 2013.

The final assay results from diamond drill holes completed to test strike and down-dip extensions of the high-grade copper mineralisation at the Flat Mine South deposit, part of the Okiep Copper Project in the Northern Cape, South Africa.

The latest results add further momentum to mine development company Orion Mineral's development strategy for the Okiep Copper Project building on the outstanding outcomes of the recently completed confirmation drilling programme, which has confirmed the geology and endowment of the Flat Mines area.

Through the development of its mineral resources base located in the Northern Cape, Orion aims to be a next-generation base metals producer supplying future-facing metals for the global transition to a lower carbon future.

The latest results add further momentum to Orion's development strategy for the Okiep Copper Project building on the outstanding outcomes of the recently completed confirmation drilling programme, which has confirmed the geology and endowment of the Flat Mines area.

Results reported in this announcement have confirmed both strike and down-dip continuity of previously intersected high-grade copper mineralisation, highlighting the potential for further upside and extensions to the mineralisation intercepted in drilling by Newmont and Gold Fields in the 1980s and 1990s as well as Orion's confirmation drilling programme in 2024.

Drill hole OFMSD083 intersected a broad zone of 40.52m at 1.34% Cu from 585.00m down-hole (580m below surface), including 10.00m at 1.03% Cu from 585.00m and 26.52m at 1.60% Cu from 599.00m. The intersection is located 45m west of historical drill hole FMS053D1, which intersected 38.98m at 2.16% Cu from 574.45m.

A ground geophysical programme is in progress in the Flat Mines area using techniques not available to historical workers and is providing compelling indications of the potential for mineralisation analogous to the famous Carolusberg Deeps deposit at Okiep.

The positive results from ongoing exploration have resulted in a strategic decision to investigate changing the primary access and ore handling strategy for Flat Mine South scheduled for release in January.

Half of the employees of the emerging Prieska Copper Zinc Mine in South Africa's prospective Northern Cape were, as of June 30, made up of members of the host community towns of Prieska, Marydale, Vanwyksvlei and Niekerkshoop.

Trial mining has already resulted in 103 members out of a total of 206 on-site employees being near-mine people, the Johannesburg Stock Exchange main board listed Orion has reported.

In addition, a consequential proportion of the Prieska mine's goods, services and subcontracting opportunities have been awarded to local suppliers in that 69% of contracts have been awarded to businesses that are either based in, or employ labour from the host communities of, Siyathemba and Vanwyksvlei, and 31% to businesses located elsewhere in the Northern Cape.

Site preparation and site establishment for trial mining were completed in June. Ore sourced from the trial mining will be used for metallurgical optimisation tests and the detailed design of a modular sulphide concentrator plant.

Then, at Orion's Okiep Copper Project, 450 km west of the Prieska mine, the company headed by Boksburg-born CEO Errol Smart, is on track to complete a bankable feasibility study for Flat Mines Area, where Orion has acquired 12 156 ha of surface rights to assure access.

Moreover, at Orion's Jacomynspan nickel, copper and platinum group element project, 70 km north of the Prieska flagship, battery electric vehicle manufacturers could well become the end-users of the metal vapour powder products that Orion will be producing through the deployment of inventive refining technology.

Copper ore from trial mining is stockpiled on surface at Prieska, where the upgrade of the Cuprum electrical substation has been completed for the supply of 15 MVA, which is sufficient power for dewatering and early mining operati...

The Department of Mineral Resources and Energy's (DMRE's) review of mining regulations, which started a year ago, provides the chance to relook and unlock the true potential of South Africa's mineral wealth for the good of all citizens, says Minerals Council South Africa CEO Mzila Mthenjane.

In an opinion piece published on December 13, he points out that the review of the Mineral and Petroleum Resources Development Act (MPRDA) presents a rare opportunity to create a well-considered and shared vision of a thriving mining industry that can benefit future generations.

He believes more investment in exploration, mine development and operating mines can be encouraged through policy changes, especially as many mineral and metal sectors need to transition to a low-carbon future and new technologies.

Moreover, Mthenjane says the environment to discover and extract minerals such as platinum group metals, manganese, chrome, vanadium and gold is one in which it is difficult for investors to lay out the large sums of capital needed for exploration.

He cites Statistics South Africa's finding that expenditure on mineral exploration in the country declined by 8.1% every year between 2015 and 2023. Over the same period, overall real fixed investment by the mining sector increased by a mere 0.7% every year.

Much of the investment was to sustain current operations, not build new mines to increase capacity.

"The department's review of the MPRDA is the moment to implement a pragmatic revision of the regulations and underlying policies that have stifled prospecting and new mine development because of uncertainty in the regulatory environment and concern about security of tenure," Mthenjane says.

Without a pipeline of new mineral deposits, the mining industry has a finite future and one of diminishing importance to the economy and employment.

Positive, however, is government's intention to introduce a modern and transparent mining cadastre by June next year to better manage prospecting and mining rights, as well as applications. This will eliminate overlapping rights and applications to mine minerals on existing mining tenements and relieve pressure on the limited staffing capacity within DMRE.

This will help provide security of tenure to the industry, which is a fundamental requirement for investors.

MINING CHARTER

Mthenjane highlights that there is a concern in the local mining industry that the department may use the opportunity of splitting out petroleum resources from the MPRDA to revisit mining regulations, introduce damaging clauses that have negative unintended consequences, and, possibly, to address setbacks it suffered in earlier court judgments.

This includes the judgment that ruled the Mining Charter is a policy document, with various clauses set aside, and that there are enduring consequences from historic empowerment deals.

"This means past [empowerment] transactions do not have to be replaced or topped up.

"The industry believes it has dealt with the issue of once-empowered, always empowered through the courts and that it must be clear in any new iteration of the Act," Mthenjane explains.

The industry is operating under the third charter, with each iteration since it was first introduced in 2004 shifting the goal posts and creating uncertainty in the industry about the operating environment.

It is more important than ever that ideological considerations and any intentions to settle old scores are set aside for the greater good of creating a conducive, flourishing, and attractive mining sector for local and international investors, Mthenjane emphasises.

He adds that the focus should be to promote inclusive growth, job creation and increased tax generation and foreign exchange earnings for the country.

A thriving mining industry that is growing has upstream and downstream benefits for other industrial sectors, including manufacturing and construction.

"A growing mining sector will lead to greater demand for machines, equipment and ...

The gold price has increased by more than 28% year-to-date in dollars, trading 22% higher on average this year than during 2023, the World Gold Council reported on Thursday, December 12.

Gold's performance across currencies was equally strong and reached 40 new record highs and total third-quarter gold demand surpassed $100-billion for the first time.

Investment demand, especially through over-the-counter transactions, was supported by an undercurrent of geopolitical risk and volatility in many regional financial markets.

Central banks, the council stated in Gold Outlook 2025, have continued to add gold to reserves and even picked up speed in early October and for most of the third quarter, Western investors flocked back to gold as central banks started cutting interest rates.

A nigh 7% US stock market rise since early November points to American investors banking on a pro-business agenda under an America-first environment, which will likely favour risk-on trades in the first few months of the year, the World Gold Council report stated.

The question, however, is whether these policies will also result in inflationary pressures and disruptions to supply chains.

In addition, concerns about European sovereign debt are once again mounting, not to mention continued geopolitical instability, particularly considering the events in South Korea and Syria in early December.

In all, this could prompt investors to look for hedges, such as gold, to counter risk.

FEDERAL RESERVE

Monetary policy is limited in scope and its effects take time to become evident, complicating the decisions made by central bankers about whether to continue, pause or reverse the course of a given policy.

The Federal Reserve, which is aiming to engineer a hard-to-come-by soft landing, has so far managed to cool inflation without taking the wind out of the sails of the economy. But 2025 will likely not prove easy.

ASIAN DEMAND

China and India are gold's largest markets. More generally, Asia makes up more than 60% of annual demand, excluding central banks. Its contributions to performance can't be understated.

This year, Asian investors added to gold's performance, particularly during the first half, and Indian demand benefitted from the reduction in import duty in the second half.

However, the risk of trade wars looms large. Chinese consumer demand will likely depend on the health of economic growth - whether through normal means or government stimuli. While the same factors that influenced investment demand in 2024 are still present, gold may face competition from stocks and real estate.

While central bank demand will likely end the year below previous records, it has remained strong, positively contributing to gold's performance to the tune of 7% to 10%.

Equally, central banks will remain an important part of the puzzle. Central bank buying is policy driven and thus difficult to forecast, but our surveys and analysis suggest that the current trend will remain in place.

In our view, demand in excess of 500 t (the approximate long-term trend) should still have a net positive effect on performance. We believe central bank demand in 2025 will surpass that, but a deceleration below that level could bring additional pressures to gold.

LIKELY TO REMAIN RANGEBOUND

Gold is likely to remain rangebound if existing market expectations are correct.

However, a combination of higher rates and lower economic growth could negatively affect investors and consumers.

This could be particularly evident in Asia. Conversely, significantly lower interest rates, or a deterioration in geopolitics or financial market conditions will improve gold's performance.

A key checkpoint will be central bank demand as it will continue to provide a boost to gold if it remains at a healthy level.

Gold's final price performance will depend on the interaction of gold's four key drivers, namely, economic expansion, risk, opportunity cost, and momentum.