Menar, which recently signed a deal to acquire Samancor's Metalloys, envisages reviving the ferromanganese smelting complex and exporting beneficiated manganese to the world.

"It's an exciting project for us," Menar MD Vuslat Bayoglu told Mining Weekly in a Zoom interview. (Also see attached Creamer Media video.)

Menar, a private investment company with a portfolio of diversified minerals that include anthracite, coal and manganese in South Africa, gold in Kyrgyz Republic and nickel in Türkiye, has signed a deal with Samancor, and is in the process of making applications to get the asset into its books.

As part of this process, it has made submissions to Competition Commission for approvals and also taken steps to have licences ceded to it.

"We're hoping to close the deal by the end of the year. In the meantime, we're investigating potential solutions, in terms of what we plan to do with the asset," said Bayoglu.

The main reason Menar showed interest in the asset is because of its readily available infrastructure. The rail infrastructure is there to receive manganese from the Northen Cape to feed a smelter that was consuming two-million tonnes of manganese a year.

"It also has the necessary licences in place, which is another advantage. This is a historical asset, so obviously it has things that need to be fixed. But Samancor did a great job in keeping it intact.

"We're hoping to do one of two things. We can either build two new blast furnaces that do not need a lot of power and work through coke to make sure that reduction happens. Alternatively, we can look at keeping two of the latest units that were built there and installing new technology," Bayoglu explained.

Discussion is under way with a South African company that has developed a new technology that would allow pelletised fines to be fed it into the plant, which will require less energy than an electric furnace.

Revival of Metalloys will be an important step towards the reindustrialisation of South Africa.

"These assets are important for South Africa and we need to bring the capacity back so that we can beneficiate the product and sell the beneficiated manganese to the world," added Bayoglu.

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

Mining Weekly: What is the latest regarding the underground manganese project you are working on through collaboration with ERG Africa?

Bayoglu: Because of the acquisition deal with Samancor, it's more critical for us to be involved in manganese production in the long term. Kongoni is an important asset for us. It's a large deposit with about 50-million tonnes of manganese underground, and we plan to mine the lower manganese orebody, which has a 36% to 36.5% manganese content. The challenge with developing a new manganese mine is the price of manganese, which has been depressed for a long time. When the incident occurred with South32's Australian asset, the prices spiked, but they are coming back to the prior lower levels. We need the right manganese price for developing Kongoni. So far, we have done all the groundwork in terms of how we plan to access the ore, how much it will take and how much it will cost us. We did our feasibility and we are waiting for the right price environment to push the start button.

Soon, Transnet is expected to finalise its Network Statement, which details how it plans to work more closely with the private sector. You have indicated in previous conversations that you support such a public-private partnership. How do you think the Network Statement will change or shape South Africa's rail reform efforts going forward?

This rail reform is critical. Transnet is unfortunately broken. They have two massive issues including hum...

In less than six years, at the end of the decade, 2030, Barrick will have grown its gold output by 30% and will be a copper miner up there with some of the biggest.

It goes to the upper 400 000 t of copper with the expansion at Lumwana in Zambia, which will take the New York- and Toronto-listed company to 240 000 t.

Then, its share of the first round of Reko Diq in Pakistan is 100 000 t of copper and 120 000 oz of gold.

In Reko Diq's second phase, production rises to 400 000 t of copper and 500 000 oz of gold, of which Barrick shares half.

"Just on those two assets, we're at more than 400 000 t of copper, which puts us into the mid-copper producer category," Barrick CEO Dr Mark Bristow outlined to Mining Weekly in an interview.

These are low cost copper pounds. Both operations meet the criteria at $3 a pound.

Then, Barrick still has Jabal Sayid in Saudi Arabia and its joint venture with Antofagasta in Chile that adds to that.

Reko Diq is very unlikely to be a 40-year mine because only four of the 14 porphyries are in the mine plan and geologists are currently evaluating the opportunity immediately within the mining licence.

The company has more copper opportunities in Idaho in the US, and copper and gold in southern Peru and also in Ecuador.

Efforts are under way to secure more opportunities within the Central African Copperbelt, which is largely copper, cobalt and sometimes also molybdenum.

Why are you so confident that 400 000 t of copper a year and 500 000 oz of gold a year will be emerging from Reko Diq and what is the real life-of-mine expectation there?

Currently, the life-of-mine reserves are 40 years, but every indication is that it'll go for a hundred years. When you get there, you walk on the mineralisation. It's like going back in time to Escondida and some of these massive Chile deposits, which are now getting to the end of their life. But they've been up for 60, 70 years. To find the copper deposits on surface are few and far between. Most of these big copper deposits have very long lead times and require big strips or underground access, like the Mongolian Oyu Tolgoi asset that Rio Tinto has developed.

But this one is a simple mine. It's made up of big multiple openpit mines in the Balochistan desert. Its first phase is 45-million processed tons a year, and when it's fully ramped up, it'll be 90-million to 100-million tons a year. So, it's a massive concentrator, effectively, and, we'll have the first stream operating in 2028 and it will be fully permitted. You just don't get these opportunities to build such big mines so quickly in the world today. If it was in America, that construction would probably take ten to 15 years just to permit.

You referred to a Biodiversity Residual Impact Assessment tool that Barrick launched in the last quarter. What is this all about and will it be applied to all your operations, including those in Africa?

Hopefully, some of our peers will copy it. It's really the same as what we did with our Sustainability Index. I'm of the view that if you're going to embark on something, you should be able to measure it, otherwise why do it? There's greenwashing going on. There's no better example than the gazillion people that have promised delivery of, you know, green vehicles in mining, which has not happened. Everyone created this buzz phrase, nature. We've been at sustainability for a long time and embedded in a proper sustainable mining endeavour has to recognise biodiversity.

A good example is Kibali gold mine, where, for instance, biodiversity is today positive relative to what it was when we got there. When we got there, it was full of squatters, who were exploiting the surface gold deposits in a gold-washing endeavour. Now, with all the water properly controlled, there's no discharge out into the environment unless the water is of environmental quality. There is greater biodiversity in the form of fish species, mammals or birds than what was there when we arrived. The world is goin...

Barrick Gold on way to becoming major copper producer

In less than six years, at the end of the decade, 2030, Barrick will have grown its gold output by 30% and will be a copper miner up there with some of the biggest. It goes to the upper 400 000 tons of copper with the expansion at Lumwana in Zambia, which will take the New York- and Toronto listed company to 240 000 t.

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Thungela's underwhelming interim results attributed to coal price dips, rail inefficiencies

Coal producer Thungela has blamed an unfavourable price environment across the Richards Bay and Newcastle Benchmark coal prices, together with the continued underperformance by State-owned Transnet Freight Rail (TFR), for a significant year-on-year deterioration in its financial performance for the six months ended June 30. Although the company's revenue increased by 17% year-on-year, from about R14.3-billion to about R16.7-billion, its profits dropped by 61%, from about R3-billion for the six months ended June 30, 2023, to about R1.1-billion in the period under review.

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Kamoa-Kakula's Phase 3 concentrator reaches commercial production

Dual-listed Ivanhoe Mines' Phase 3 concentrator at the Kamoa-Kakula Copper Complex, in the Democratic Republic of the Congo (DRC), has reached commercial production, the company announced on August 19. Together, Kamoa-Kakula's Phase 1, 2 and 3 concentrators achieved a combined monthly production record of 35 941 t of copper in July.

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Ivanhoe reports fatality at DRC mine

Canada-headquartered Ivanhoe Mines has reported a fatality at the Kansoko mine, part of the Kamoa-Kakula copper complex, in the Democratic Republic of Congo (DRC). The company explained that Bruno Mutombo, a Kamoa Copper drill rig operator, died following a fall-of-ground incident. Mining activities at Kansoko were temporarily suspended to conduct an investigation and have since restarted.

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Namibian Competition Commission approves Shanjin's buyout of Osino

TSX-listed Osino Resources says the Namibian Competition Commission (NCC) has approved Shanjin International Gold's buyout of Osino for a cash consideration of C$1.90 a share. The NCC's approval was the final outstanding approval to conclude the buyout and the acquisition is now set to conclude on or before August 29.

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Wärtsilä signs decarbonisation agreement for Madagascan power plant

The renewal of technology group Wärtsilä's operations and maintenance (O&M) agreement with QIT Madagascar Minerals (QMM), which is part of the Rio Tinto group, has been expanded to include a decarbonisation agreement. Wärtsilä says the agreement is a groundbreaking offering in the energy sector and allows for optimising all of the assets in the microgrid, including renewable-energy use, thereby not only reducing emissions but also producing notable cost savings.

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Hummingbird completes refinancing package with Coris Bank

Aim-listed Hummingbird Resources has completed the strategic refinancing of a portion of its existing loan facilities with the company's principal financing partner Coris Bank International. Hummingbird has secured a refinancing package of about $25-million at a yearly interest rate of 12%. This new financing will be used to meet the company's existing loan obligations due in the second quarter of this year, providing a two-year deferment of specific facilities currently held with Coris Bank.

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Virtually every mining house in South Africa is in the process of procuring green electrons, and similar advances are taking place across the African continent, from the Democratic Republic of Congo and Central African Republic, to Zambia and beyond.

'We're seeing a massive shift," Nedbank CIB head of infrastructure, energy and telecommunications Mike Peo outlined to Mining Weekly in a Zoom interview. (Also watch attached Creamer Media video.)

Earlier this year, Peo attended the Africa Energy Forum, in the company of politicians and public sector officials from across Africa, where it is making good economic sense for financial institutions to be investing increasingly in green energy.

"Within the Nedbank Group, we have a commitment from our board to allow us to participate in green energy projects, and we're going full steam ahead.

"I certainly cannot remember a time when our pipeline of projects in the green energy space was as heavy as it is now," added Peo.

Those investing in renewable energy are doing so because the economics make sense, even ahead of carbon tax imposition, and across the continent, transmission is probably the most important factor constraining the ability to switch from dirty electrons to clean ones.

As a result of transmission constraints, decentralised generation from smaller power stations is envisaged to ensure the provision of power to remote locations.

"These are developing to be able to give populations, firstly, access to power, and then, secondly, as a consequence, access to green power," Peo explained.

Mining Weekly: Tell us about the Africa Energy Forum event placing emphasis on the need for Africa to remain green and clean when it comes to the generation of energy on the continent.

Peo: By way of background, the African Energy Forum is a conference that has been held for probably the last 20 years. It's probably the single biggest conference that brings together in one place a combination of politicians, regulators, project developers, project sponsors, bankers, lawyers, technical advisers. It's probably the pre-eminent conference that gets together to discuss the problems that we encounter and hopefully the solutions that are needed to try and tackle what sometimes seems like a fairly insurmountable problem. The negative part of the conference was that many of the participants are still talking about the fact that the African continent has more than 700-million people that don't have access to energy on a daily basis. While this number has been pretty constant for 20 years, it's a combination of while we're making great strides in some regions in Africa, the population growth story means that the numbers are remaining reasonably constant.

The big theme of the conferences over the last five years has been around energy transition. Every country on the continent has adopted a form of net-zero commitment, a commitment to decarbonisation and climate change is top of agenda, but the narrative has changed and shifted very much to just energy transition, which means fundamentally that it's impossible for the continent to switch off coal, oil, gas, etc, overnight and just switch on green electrons, whether in the form of PV solar power, wind power, hydropower, et cetera. The financial commitment, the amount of money that is needed to make that transition, is virtually impossible. A lot of time and energy is being spent on finding how to transition out of areas such as oil- and gas-fired power stations to green energy power stations. That was the one key theme that did come out and the second key theme is that across the continent, transmission is probably the most important factor constraining the ability to switch from dirty electrons to clean electrons.

Each country has significantly different problems. A country like Namibia, for example, while very small in population size, is very vast, and to try to get transmission up and down the country is still a significant challenge. Those were the t...

Mining Weekly Editor Martin Creamer talks about the upcoming Electra Mining Africa show, which is coinciding with improved optimism about South Africa's economy; Exxaro's expectation of improved economic conditions and lower interest rates; and the steady performance delivered by Barrick Gold's African operations in the quarter ended June 30.

Johannesburg-listed coal and energy company Exxaro is expecting the Federal Reserve, the European Central Bank, the Bank of England and the South African Reserve Bank, among others, to start lowering official or policy interest rates during the remainder of this year.

"Such initial rate cuts would mark the end of the most aggressive rate hiking cycle in four decades," Exxaro CEO Dr Nombasa Tsengwa said during the company's presentation of first-half results on Thursday, covered by Mining Weekly. (Also watch attached Creamer Media video.)

With inflation rates retreating and interest rate cuts imminent, the global economy is expected to maintain its momentum throughout this year.

"However, it is worth noting that although South Africa CPI has been trending downwards, the mining CPI in this half was higher than in the second half of last year on the back of elevated electricity prices," Tsengwa pointed out.

Adding to the 12.7% higher electricity prices were elevated coke and refined petroleum costs owing to the increase in brent crude prices.

A highlight of Exxaro's half-year results were coal export sales of 3.2-million tonnes and a price realisation of 95% in line with its target.

The company, which is still within its 2024 market guidance, maintains its R12-billion to R15-billion cash book, which underpinned the board approving an interim dividend of R7.96 a share.

"We were able to successfully operationalise our decarbonisation and environmentally cleaner imperatives in the market by supporting our customers with higher quality, cleaner-burning coal products, in line with our decarbonation strategy," Tsengwa outlined.

Group revenue and earnings were lower owing to export prices, decreased domestic offtake and increased logistics costs.

"We're operating in a challenging environment, but despite tougher trading conditions, our cash generation of R4.8-billion resulted in a net cash position of R9.8-billion, setting a solid foundation to execute our growth strategy."

Tsengwa remarked that the recent South African election results and subsequent creation of the Government of National Unity has driven positive sentiment towards the country, but uncertainty still lingers in respect of policy execution.

RENEWABLE ENERGY

First-half green energy generation of 339 GWh was at an operational earnings before interest tax depreciation and amortisation (Ebitda) margin of 79% on revenue of R652 million, underpinned by the annuity nature of the long-term offtake agreements.

The operating wind assets project financing of R4.2-billion for the windfarms will be settled by 2031. This has no recourse to the Exxaro balance sheet and is hedged through interest rate swaps.

"We say that the renewable energy business is a predictable business, albeit seasonal," Exxaro MD for Energy Leon Groenewald outlined for Mining Weekly.

"Winds in the second half are usually higher than in the first half. You'll see the numbers on generation is consistent with what we've seen in the first half. Also, the prediction for the second half is in line with what we've seen in the past with the 720 gigawatt hours," added Groenewald.

"The Ebitda margins are around 80%. We looked at the fixed costs and there's nothing that concerns us about our cost base. The debt you'll see coming down on synergies and that debt will be repaid by 2031, so there are no surprises."

FOUR TREES REPLACE EVERY REMOVED TREE

The 68 MW Cennergi Lephalale solar project is poised to power Exxaro's Grootegeluk coal mine with 176 GWh/y of green energy in the first quarter of 2025.

The R1.6-billion Lephalale solar photovoltaic power plant will provide Exxaro with a 27% reduction in Scope 2 emissions.

Exxaro's 2024 full-year guidance for wind energy generation is 700 GWh to 720 GWh of green electricity.

"We still plan our solar project that we are in construction with, for the first quarter of next year.

"We have lost some time. To clear 240 ha of bushveld is challenging. The number that we quoted last ...

South Africa's preparation for a brand new economic future is coinciding with the biggest ever Electra Mining Africa show, which takes place in Johannesburg, from September 2 to 6.

Five interconnected industries - mining, electrical, automation, power and transport - with manufacturing at its core, will be showcased by 850 exhibitors in six halls, four outside exhibit areas, 39 000 m exhibition space, and more than 30 000 expected visitors.

Interestingly, Efficient Group chief economist Dawie Roodt, who kicked off the media launch in the presence of teams of journalists, expressed the view that economic positives could potentially be well on the way in South Africa, including a possible lowering of interest rates.

"I think the South African Reserve Bank will be in a position to start cutting rates in six weeks' time or so," Roodt outlined at the media event hosted by Specialised Exhibitions MD Gary Corin and portfolio director Charlene Hefer, who shared key information on this year's exhibition, which will be its largest of the event's 52-year history.

Regarding South Africa's new multi-party government, Roodt commented: " I must say, so far, things are going better than expected."

On the potential for faster economic growth, he said "I'm pretty sure that if we put the right policies in place, and we can get this economy to grow a little bit faster, it is very possible for the equity market to run another 20% or 30% which is huge."

Financial markets did react positively to the emergence of the multi-party government. The rand appreciated, as did equity and bond markets.i

His reading of the multi-party government is that greater efficiency is already happening.

But unless there is a positive policy change, Roodt's expectation is for economic growth to be just below 1% or so next year, or with a bit of luck, maybe 1.5% or 2%.

Needed, though, is a growth rate of at least 2% just to keep pace with population growth and to bring down unemployment, economic growth of 4% to 5% is essential.

Meanwhile, Roodt's expectation is that it will be India, rather than China, that will be driving the world economy, perhaps even for the next decade.

Roodt described the European economies as being dead in the water, and the American economy as currently shooting the lights out but with some indicating that a US economic recession may be on the way.

Johannesburg Stock Exchange-listed Merafe has reported a profit of R720-million for the six months ended June 30, on higher realised chrome ore prices and a weaker rand:dollar exchange rate.

But downward pressure on chrome ore prices has started and is expected to translate to lower ferrochrome prices, Merafe CEO Zanele Matlala outlined in the half-year presentation covered by Mining Weekly. (Also watch attached Creamer Media video.)

Ferrochrome prices remain strained and cost increases continue to put pressure on margins and the company is expecting the second half of 2024 to be softer given a weaker market outlook.

Nevertheless, the board of Merafe has declared an interim gross cash dividend of 20c, on a par with that for the corresponding period of last year.

Merafe's revenue and operating income are primarily generated from the Glencore-Merafe Chrome Venture, which is one of the global market leaders in ferrochrome production, with a total installed capacity of 2.3-million tonnes of ferrochrome a year.

Merafe shares 20.5% of the earnings before interest, taxation, depreciation and amortisation from the venture, its reportable segment being the mining and beneficiation of chrome ore into ferrochrome and the extraction of associated minerals.

Operationally, ferrochrome and chrome ore production were lower, with some improvement in electricity supply and logistics.

Global stainless-steel production increased and demand for ferrochrome followed a similar trend, with rand weakness against the dollar providing some cushion,

Global stainless-steel production increased by 9% to 31.3-million tons. The biggest increase came from China, which grew stainless steel production by 12%.

Ferrochrome demand increased by 10% to 7.9-million tons, in line with standard steel production growth.

China continues to dominate global stainless-steel production, accounting for more than 63%. Global ferrochrome production increased by 7% to 16.1-million tons.

Nearly all this growth came from China, which has been introducing new cost-efficient capacity and which grew by about 29%.

South African production decreased by 21% to 3.1-million tons following the growth in ferrochrome production in China, where chrome imports grew by 27% to 8.5-million tons, with the bulk of the chrome coming from South Africa.

Merafe had cash and cash equivalents of R1 717-million as at June 30.

Those who implement strong energy portfolios and grids timeously and effectively are going to be the biggest contributirs to the crucial just energy transition.

That is the collective viewpoint of Seriti Group CE Mike Teke and Seriti Green CEO Peter Venn, who spoke to Engineering News & Mining Weekly in a Zoom interview. (Also watch attached Creamer Media video.)

It is Seriti Green that is building a 155 MW wind farm in Mpumalanga province, South Africa's energy heartland of South Africa, and it is Seriti Resources that will be buying that wheeled energy for use at its coal mining operations.

"We're wasting time persuading each other about whether it will be fossil fuels or renewables. It's fossil fuels and renewables, and South Africa must travel that journey," Teke emphasised.

"It's renewables and coal," said a concurring Venn. "The money's there, the willingness is there. The industry is there. What we need is policy certainty and alignment, and whatever number you wish to throw in front of us as an industry, we're ready to take it on."

The reason Seriti Resources changed from being focused on coal was to align itself with what is underway globally.

"That energy transition is critical for the entire world and for South Africa specifically.

Firstly, we want to be active in ensuring that South Africans benefit out of the change and enjoy the benefits of an energy mix, where we have coal, we have wind, we have solar, we have nuclear and other forms of energy generation.

"Secondly, for Mpumalanga province, it is imperative that when we traverse this journey, we're going to build two more new coal mines, and we're building renewable energy in the area.

"That is significant for the Mpumalanga people, because it provides infrastructure growth, economic activity, development and what we are showing actively as a business is that this just energy transition is not going to be business only, but we will be taking along a lot of stakeholders who are part of Mpumalanga as a population."

Seriti Green has become the embodiment of energy transition collaboration.

Mining Weekly: Why is it so important, particularly in South Africa, that these two energy sources become joined at the hip?

Venn: Mpumalanga is the energy heartland of South Africa, and to have a just energy transition where we leave people behind is just not acceptable. The concept of an energy transition from coal to renewables is easy, but the just part is what we are focused on. Bringing the stakeholders along with us in Mpumalanga is so important, and then to get the timing right. The country as a whole has invested significant amount of capital in transmission infrastructure over decades, and to leave that transmission infrastructure behind, if we were to transition, is crazy. We need to leverage this infrastructure. We need to be building renewables in amongst the coal mines, and if you look at the circular economy, our mine, New Denmark, is 20 km from the Seriti Green wind farm, and we're taking water from the mine, and we're repurposing the water as we build out the wind farm, so there's a whole circular economy happening within Mpumalanga, and it's important to the people of Mpumalanga.

How much of the coal that Seriti mines each year is consumed in South Africa and how much is exported?

Teke: Sixty five per cent of our coal is supplied to the power stations and 35% is exported.

To what extent will Seriti Green be able to lower the carbon footprint of Mpumalanga with the introduction of wind energy?

Venn: From a Seriti group perspective, we will almost obliterate Scope 2 emissions in the production of electricity, in that Seriti will be purchasing green electricity from the wind farm, so there is a huge reduction. But I think we need to look at it as a network across the country. Every megawatt hour that's produced abates a ton of carbon in South Africa and this project, when complete, will be 3 000 gigawatt hours. So that's a significant abatement of carbon within ...

Mining Weekly Editor Martin Creamer joins me today to unpack the Rietberg copper mine possibly becoming the cash cow of Copper 360; AngloGold Ashanti's interim dividend improvement and strong free cash flow; and Glencore's strong strategic achievements as it continues with the decline of its thermal coal operations.