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A feasibility study on the Soweto Cluster gold recovery project, which like the highly successful Mogale Tailings Retreatment (MTR) is also on Gauteng's West Rand, will be completed by September, midtier gold mining company Pan African reported on Thursday, December 12.

"The performance of our MTR operation has exceeded expectations," Pan African CEO Cobus Loots stated in the stock exchange news service announcement, in which he also expressed excitement at the prospect of further expanding the Johannesburg- and London-listed company's surface business in the short term for the benefit of all stakeholders.

Like MTR, the Soweto Cluster is less than an hour's drive from Pan African's corporate office in Rosebank and the feasibility study for it is following hot on the heels of the nearby budget-beating and schedule-outstripping MTR. (Also read Creamer Media's multi-page Top Project of 2024 MTR feature in the December 13 edition of the Engineering News & Mining Weekly magazine, now in bookstores.)

Interestingly, 122 ha of environmental rehabilitation at MTR has already been completed, with historical spillage cleaned up, derelict pipeline removed, alien vegetation eradicated and wetlands remediated.

When Mining Weekly was on site earlier this year, of the 1 600 people at work, 1 040 of them were locals.

Now, the Soweto Cluster appears to be a surface resource that could well eventuate as a repeat of what has happened at MTR and add another 50 000 oz a year to overall Pan African gold production, which is on its way to being a 16%-higher 215 000 oz in financial year (FY) 2025.

The feasibility study under way is focusing on the option of constructing a new stand-alone processing facility closer to the cluster's tailings storage facilities (TSFs) as well as putting the spotlight on a second option of including additional proximal TSF resources to increase the life of mine (LoM).

"By March 2025, we'll also be largely unhedged, and at prevailing gold prices, the cashflow generation from our long-life portfolio of quality assets should allow for rapid de-gearing and flexibility in deploying capital on value-accretive growth and further sector-leading dividends to shareholders," Loots pointed out.

Production being guided for FY2026, excluding the now wholly owned Tennant Consolidated Mining Group operation in Australia, is a further increase to between 235 000 oz and 250 000oz.

Elikhulu Tailings Retreatment Plant production is on track to total 52 000 oz or more for the full financial year, following phases 3 and 4 of the new tailings dam construction being completed ahead of schedule and under budget.

Barberton Tailings Retreatment Plant is on track for half-year production of between 7 000 oz and 8 000 oz amid the operation's LoM rising by a further six and a half years.

MTR is forecast to produce 33 000 oz in FY2025 with studies underway to increase annual production from 50 000 oz to about 60 000 oz in the next year through the installation of additional reactors to further improve recoveries, the addition of two carbon-in-leach tanks to increase throughput from 800 000 tons a month to a million tons a month at a capital cost of R70-million.

In addition, a prefeasibility study on the inclusion of a hard rock crushing circuit enabling the processing of nearby remnant hard rock sources is scheduled to be concluded in the next three months.

UNDERGROUND OPERATIONS

At Evander Mines, the sub-vertical hoisting shaft commissioning will be completed during December, enabling its daily hoisting capacity of 700 t to be achieved, underground production ramp-up delays from 24 Level to 25 Level operations at 8 Shaft have been resolved, and FY2025 production of 38 000 oz are expected. The third-quarter FY2025 establishment of the 24 Level B-Line raise will further improving face length and mining flexibility, and the average grade is expected to improve from 6 g/t to 7.5 g/t.

At the Egoli project, long-inclined borehole reserve delineation dril...

Mining Weekly Editor Martin Creamer unpacks the new Proudly South African smelting technology that could be big for the country’s ferroalloy industry; Seifsa's belief that an aggressive industrialisation programme can be driven through the repair and rebuild of existing infrastructure; and the most important steps to improve the outlook for South Africa.

A most fundamental human need is to breathe fresh air. Yet, for millions of people working in underground mines across the globe, this is not a given.

Now, members of the international ICMM mining organisation have committed to implementing further measures to protect people working in underground mines against exposure to diesel particulate matter (DPM).

Diesel-powered vehicles and equipment generate airborne DPM emissions, which, with exposure to high concentrations over time, can cause serious health issues, including cancer, ICMM stated in a release to Mining Weekly on Wednesday, October 11.

"Effective management of DPM in underground mines is critical to safeguarding the health of workers. This can be achieved through comprehensive measures including high-grade protective equipment, advanced ventilation systems, the use of low-sulphur fuels, rigorous maintenance practices and the transition to zero-emission equipment," the organisation outlined.

To accelerate progress across the industry, a DPM good practice guide has been published to provide a structured framework for companies to lower underground DPM exposure.

The new commitment and guide are said to reflect the latest advancements in understanding of DPM workplace exposure and the effectiveness of control measures.

By mandating the adoption of DPM management programmes across the membership, ICMM aims to bridge existing gaps and drive consistent, effective practices across the industry.

"These measures embody the commitment of every ICMM member to the health and safety of our people and communities towards the goal of zero harm. They will accelerate the changes necessary to safeguard people working on our sites and, I hope, provide the impetus for the widespread adoption of these solutions beyond the ICMM membership," ICMM president and CEO Rohitesh Dhawan stated.

This new commitment and guide build on the cleaner, safer vehicles initiative (ICSV) launched in 2018, which has driven collaboration between ICMM member companies, original equipment manufacturers and technology suppliers to develop next-generation mining vehicles and improve existing fleets.

"We're now anticipating the availability of zero emission haul trucks before 2030 - a shift from the previous expectation of 2040 - reflecting significant progress. One of the areas of focus of this collaboration is on reducing the impact of DPM through advancements in mobile equipment and mine infrastructure."

ICMM ICSV advisory group chairperson and BHP CE Mike Henry described DPM as a sector-wide health challenge. "It's pleasing to see members showing leadership and signing onto this important initiative," he said.

The new commitment aligns with mining's pursuit of health and safety improvement in its journey towards zero harm.

ICSV initiative companies are Caterpillar, Cummins, Epiroc, First Mode, Hexagon Mining, Hitachi Construction Machinery, Komatsu, Liebherr and Sandvik Mining and Rock Technology.

Company members well known in South Africa are African Rainbow Minerals, Anglo American, AngloGold Ashanti, Barrick, BHP, Glencore, Gold Fields and Sibanye-Stillwater, with associate members including Minerals Council South Africa, Mining Industry Associations of Southern Africa, International Chromium Development Association, International Manganese Institute, and World Gold Council.

South Africa, which hosts more than 70% of the world reserves of chrome ore and manganese ores, was dominant in ferroalloy production until 2010.

In the early 2000s, South Africa was the undisputed No 1 chrome ore- and ferrochrome-producing country, with 90% of the inputs, including technology and equipment, locally sourced.

More than 200 000 direct and indirect jobs were created across the chrome value chain and 20% of mining-related foreign exchange was earned from ferrochrome sales.

In 2010, the chrome value chain contributed R42-billion to South Africa's GDP and generated R36-billion worth of foreign exchange earnings, with ferrochrome production contributing 80% of the value of the chrome value chain.

Even then, South Africa's closed furnaces reduced CO2 emissions and increased energy efficiency. It was only soaring public-sector power tariffs that caused the industry to lose its grip on the global market.

But now, new South African technology is positioned to take greenness and cleanness to a high new level at a time when the likes of Carbon Border Adjustment Mechanism (CBAM) imposition are only a little over a year away, in a world in which combatting climate change is an essential requirement.

SmeltDirect, which has been tried, tested and proven, will be on the receiving end of value from CBAM carbon credits, giving South Africa an open window of opportunity to regain lost ground with bottom-of-the-cost-curve competitiveness.

Hugely advantageous for South Africa's stumbling ferroalloy industry is the development of a new technology by the Johannesburg Stock Exchange-listed African Rainbow Minerals headed by executive chairperson Dr Patrice Motsepe, which has no intention of holding it close to their chests.

Instead, ARM Ferrous division CE Andre Joubert, and ARM executive technology development Henk Bouwer, are determined to do what is best for the country and that is to spread the patented SmeltDirect as far and as wide as possible by retrofitting it to the considerable number of dormant smelters so that restarts get under way without delay.

Importantly, the technology is positioned to produce the most competitive green alloy, which is just what the world needs.

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

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

Moreover, the use of renewable energy with biocarbon can slash Scope 1 and 2 carbon emissions by up to 80% and Scope 3 emissions are halved.

Major logistical cost- and emission-reduction benefits result from ores being processed in the countries where they are mined.

No reasonable competitive entity anywhere in the world could justifiably aver that it is not correct for South Africa, which hosts overwhelming volumes of raw ore to process as much raw ore as possible close to where it is mined.

South Africa is by no means a newcomer to local alloy, which is clearly illustrated by this country being one of the originators of the International Ferro-Alloy Conference, where ferroalloy smelting knowledge is discussed.

Currently, however, conventional smelting of ferrochrome and ferromanganese are seen as no longer having a sound future in South Africa and the prevailing viewpoint is that more income can be generated by exporting the ores rather than adding any local value to them.

The production o...

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Neo Energy's executive management ...

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

How long do these systems take to pay for themselves?

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

LOWERING EMISSIONS

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

skills development for locally employed staff; and

on-site enterprise development programmes with successful local companies.

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

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