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Chromium accounted for 8% of South Africa's mining revenue in June 2024, says PWC South Africa lead economist macro analysis Dr Christie Viljoen, up from 5% in 2023.

Quoting Statistics South Africa data, Viljoen showed that platinum group metals dropped from 28% in 2023, to 22% this year, with coal down from 27%, to 24%.

Viljoen spoke at Chromium 2024, held in Cape Town.

He indicated that mining sales from South Africa reached R806-billion in 2023, with the industry employing 500 000 people directly.

Mining mergers and acquisitions (M&A) in South Africa jumped to R10.1-billion in the financial year ending June 2024, with a total of 32 deals.

In the corresponding period in 2023, this was R1.5-billion, captured within 24 deals.

PWC expected M&A activity to grow, albeit with fewer, but higher-valued, deals.

Viljoen said this would be driven by demand for the minerals and metals feeding the green economy.

He added that the megatrends influencing the global economy included climate change, demographic shifts (older vs younger populations), a fracturing world order and tech disruptions.

Viljoen said climate change posed a "serious and growing threat" to the world's ability to produce essential commodities, such as extreme heat impacting opencast mining operations, such as in the iron-ore sector, and drought affecting the production of lithium and cobalt, for example, as mining was a water-intense industry.

As for South Africa's economic outlook, Viljoen said the current lull in loadshedding and the formation of the GNU had injected some much-needed positivity into the local economy, despite the fact that real economic change was yet to become visible on the ground.

The PWC forecast was for headline inflation to reach 4% in 2025.

Real GDP growth for 2025 in an upside scenario was 1.8%, but 1.4% in a baseline scenario and 0.5% in a downside scenario.

Even if this number picked up, it was not yet sufficient to make a meaningful impact on unemployment, noted Viljoen, with this only starting to happen at 3% to 4% GDP growth.

He said South Africa was in a better position that 12 months ago, but added that it still "had a long way to go".

Copper-, iron-ore- and crop-nutrient-focused Anglo American reported on Monday that it expects to complete the sale of a minority interest it holds in an Australian steelmaking coal business in the second quarter of next year.

The Johannesburg- and London-listed Anglo is implementing structural changes that include selling off steelmaking coal and nickel businesses, demerging platinum group metals mining company Anglo American Platinum, and separating the iconic diamond mining and marketing company De Beers.

As part of accelerated portfolio downsizing and future-facing growth priorities, the terms for the $1.1-billion cash sale of 33.3% of Jellinbah - a joint venture that owns 70% of the Jellinbah East and Lake Vermont steelmaking coal mines in Queensland - have been agreed with privately owned Zashvin, also a 33.3% shareholder in Jellinbah, alongside Anglo and Japanese trading and investment conglomerate Marubeni.

"The cash proceeds reflect the exceptional quality of the Jellinbah business," Anglo CE Duncan Wanblad stated in a release to Mining Weekly.

Anglo does not market any of Jellinbah's steelmaking coal production volumes nor does it operate the Jellinbah mines, which are said to have coking coal reserves amounting to 196-million tonnes.

In the first half of this year, Anglo's one-third interest in Jellinbah contributed $354-million to group revenue and $153-million to earnings before interest, taxes, depreciation and amortisation (Ebitda). Last year, full-year revenue was $779-million and Ebitda $373-million.

The sale, conditional on regulatory approvals, is foreseen to be concluded before 30 June 2025.

The process of selling the rest of the Anglo steelmaking coal business - being the portfolio of steelmaking coal mines that it operates in Australia - is reiterated to be at an advanced stage - "and we're on track to agree terms in the coming months", Wanblad added.

James Xu of Zashvin spoke of Anglo's significant role in Jellinbah's successful journey and expressed appreciation for Anglo's dedication towards making the transaction "smooth and efficient".

"As a family that's been with Jellinbah since its inception, our increased investment not only reflects our confidence in Queensland's coal industry but also our commitment to supporting the central Queensland community," said Xu.

Wanblad reported that portfolio simplification progress was continuing as the company advanced towards becoming a producer of "highly cash generative and much higher margin" future-enabling decarbonisation, improved living standards, and food security products.

These, he said, would offer greater resilience through cycles and a path to copper production of more than one-million tonnes a year by the early 2030s.

As the new president and CEO of the Canada-listed NextSource Materials - which is chaired by former South African mining luminary and one-time Eskom FD Sir Mick Davis - the ex-Sasol and Royal Bafokeng Platinum CFO Hanré Rossouw is now leading a major graphite advance.

The Toronto-based battery materials development company Rossouw began leading on Friday, November 1, is intent on becoming a vertically integrated global supplier of battery materials through the mining and value-added processing of graphite and other minerals.

Rossouw's tenure will commence in Madagascar, where he will visit the group's Molo graphite mine operations as well as engage with the community and government as part of a structured leadership transition plan, NextSource stated in a release to Mining Weekly on Friday.

NextSource last month shipped its first commercial consignment of graphite concentrate to US and European customers, with these initial container shipments of SuperFlake graphite destined for key demand markets for higher value graphite products, including refractory materials and graphite foils for consumer electronics and fire-retardant applications.

Molo mine, in its first phase, is being optimised to reach nameplate production capacity of 17 000 t/y of graphite concentrate amid graphite being a key anode component of batteries used in electric vehicles.

Also effective from November 1 is the transitioning of former NextSource president and CEO Craig Scherba to the newly created role of chief development officer, where focus will be on developing strategy, managing offtake negotiations and expanding the original equipment manufacturer relationships globally.

Rossouw expressed delight in being selected to lead the company during the next phase of its growth strategy, which is reflected in a build-out strategy for battery anode facilities and the bolstering of the management team.

"The vision to become a global leader in sustainable battery materials is unchanged, with the key priority being the successful ramp-up of Molo," Rossouw pointed out.

NextSource has long-term offtakes with established industrial partners that account for more than 100% of the expected Phase 1 production of SuperFlake graphite concentrate and coated spherical purified graphite from the company's planned battery anode facility in Mauritius.

Phase 1 is powered by a solar-hybrid power plant that is expected to reduce CO2 emissions by more than 11 300 t/y. Molo is accessible by an all-weather airstrip and a network of regional roads, which allows access to the ports of Toliara and Ehoala at Fort Dauphin.

Vision Blue's Davis expressed confidence that the expanded management team under Rossouw's leadership had the capabilities to capitalise on the many downstream opportunities in the graphite supply chain, through the staged rollout of battery anode.

A major shareholder in NextSource, Vision Blue was created by Davis in December 2020 to capitalise on the structural change in battery mineral demand.

During his earlier period in mining, Davis raised more than $40-billion from global capital markets and completed more than $120-billion in corporate transactions.

NextSource's investment in Molo is based on the surge in demand for battery material not being met by an appropriate supply side response.

Mining Weekly Editor Martin Creamer discusses the very promising findings of Chile’s green hydrogen valley study; Implats' 35 MW solar project and expanded smelter at Zimplats; and De Beers urging entrepreneurs to take part in its local business development programme.

Australia-listed manganese company Jupiter Mines, which has a 49.9% beneficial interest in Tshipi é Ntle Manganese's Tshipi mine in South Africa's Kalahari manganese field, on Thursday reported strong production but weak pricing in the three months to September 30.

The spot price of manganese ore fell 34% in the period, which was attributable to persistent weakness in global steel demand coupled with an increase in manganese ore supply, particularly that of South African origin.

The average spot price for the September 2024 quarter was $4.24 per dry metric tonne unit (dmtu), compared with an average spot price of $5.50/dmtu for the June quarter. The spot price as of September 30 was $3.74/dmtu.

Tshipi's earnings before interest, taxes, depreciation and amortisation were A$21-million, compared with A$60.4-million in the previous quarter, and net profit after tax was A$13.7-million compared with A$38.7-million on 12%-higher sales volumes.

Meanwhile, improved equipment utilisation and performance elevated ore and waste mining 27% to ensure the building of stockpiles before the expected rainy season commences.

Tshipi's cost of production on a free-on-board basis was 7% lower.

The operation reported its first lost-time injury in nearly eight months, following an incident in which a team member was injured while climbing stairs on mobile plant equipment.

To reinforce safety awareness ahead of the upcoming holiday period, Tshipi's management team is implementing a critical season campaign which will include slip and fall prevention initiatives to enhance safety across operations.

Looking ahead, the World Steel Association has updated its forecast to predict 1.2% steel production growth in 2025 compared with a 0.9% contraction in 2024. This, combined with moderated supply levels, should provide a more supportive outlook for manganese prices in the second half of the financial year, Jupiter outlined in a release to Mining Weekly.

"While market fluctuations are normal in any commodity market, Tshipi remains resilient, with no debt, comparatively low operating costs and over 100 years of remaining mine life," Jupiter, whose main focus remains supporting operational optimisation at Tshipi and the execution of its five-year strategy, pointed out.

Going forward, lower manganese exports from South Africa in the last three months of the calendar year are expected to translate into positive support for port stock levels in China.

The initial findings of the study to identify the feasibility of the development of a green hydrogen valley in Chile's central zone are "very promising", Anglo American Chile CEO Patricio Hidalgo reported this week.

Speaking during Anglo's half-yearly sustainability performance update, Hidalgo told webinar attendees that the Anglo-supported study pointed to key areas in the South American country's central region having the potential to displace around 3 000 kilotons of carbon dioxide a year. (Also watch attached Creamer Media video.)

Through a private and public partnership, Anglo had, he said, also supported the design and construction of the first hydrogen bus made in Chile, as part of the Johannesburg- and London-listed company's shift to sustainable transport.

"While we acknowledge that lots needs to happen to build the ecosystem to enable green hydrogen at scale, the initial findings are very promising," he said while displaying a picture of the bus made by startup Reborn Electric.

The recent studies in Chile and Peru follow on from the work done by Anglo in South Africa, where solar and wind resources, as well as access to the platinum group metals needed for converting hydrogen into energy have positioned the country to capitalise on green hydrogen and become an important centre for green hydrogen production.

At the same time, Chile is said to have the renewable energy potential to install 70 times its current electricity generation capacity. "This abundant renewable energy will enable us to become the cheapest producer of green hydrogen on earth," former Chile Energy Minister Juan Carlos Jobet is quoted as saying.

Anglo already uses 100% renewable energy across its South American operations and the related green hydrogen thrust was among the update's deep dives, which brought to life how sustainability is adding value for shareholders by facilitating mining growth.

"Sustainability is fundamental to our ability to establish ourselves as a preferred partner for our future growth," Anglo CE Duncan Wanblad made known.

"It's critical for value creation through both enhancing operational performance and unlocking new growth options," Anglo strategy and sustainability director Helena Nonka said during the update covered by Mining Weekly.

"Sustainability can be and should be profitable, and this is why we embedded sustainability into our strategy and value creation model across the organisation, from board decision making to day-to-day operational activities.

"On climate, we have delivered absolute reductions in scope one and scope two emissions of 26% relative to peak emissions in 2019. On water, we are 22% below our 2015 baseline for freshwater usage. Through our socio-economic development progress, we've supported over 140 000 jobs outside of our mines," Nonka outlined.

The commissioning of the solar project and the enlarged furnace complex at Zimplats has positioned this Zimbabwe platinum group metals (PGM) operation to benefit from improved processing capacity, environmental performance and lower energy costs, Implats CEO Nico Muller reported on Wednesday.

The 35 MW solar plant project, which was commissioned in August, is ramping up power generation to design capacity.

Overall, the Johannesburg Stock Exchange-listed PGMs mining and marketing company is on track to deliver this financial year's (FY2025's) operational, cost and capital expenditure guidance, the first quarter production report for the three months to September 30 outlined on October 30.

Advancing competitive position and ensuring portfolio delivery of the operational results required to navigate the PGM pricing cycle is a current group focus.

"Healthy ongoing metal purchases and recent discussions with our core customer base confirm our view of robust demand for our key products over the coming year, with shifts in metal requirements also affirming our assessment of underlying market trends.

"The macroeconomic and geopolitical uncertainty that has typified the global outlook for much of the past two years has persisted. As a result, we continue to assume a prudent risk-adjusted view to our operational planning and capital allocation to ensure Implats' long-term sustainability and ongoing value creation," Muller stated in a release to Mining Weekly.

HEALTH AND SAFETY

Regrettably, three first-quarter fatalities at managed operations resulting from a fall-of-ground incident at Impala Rustenburg and a drowning incident at Impala Bafokeng. The

board and management team have extended their sincere sympathies and continue to offer support to the families of Joao Jose Goma, Orlando Auze Gola and Fenias Boaventura Gomes.

The group's lost-time injury frequency rate improved by 3% to 3.31 per million man-hours worked from 3.40 reported in the previous comparable quarter, while the all-injury frequency rate improved by 20% to 6.83 compared with the 8.55 of the first quarter of FY2024.

PRODUCTION

Tonnes milled at managed operations declined 6% to 7.09-million tonnes on the revised operating parameters at Impala Canada and Styldrift as well as safety stoppages at Impala Rustenburg and BRPM. Six element (6E) production from managed operations fell to 751 000 oz. The benefit of a 2% improvement in 6E milled grade to 3.83 g/t was offset by the temporary increase in concentrate inventory at Zimplats owing to furnace commissioning.

Meanwhile, 6E concentrate production from Implats' joint ventures at Mimosa and Two Rivers improved by 3% to 145 000 oz.

In line with market guidance, third-party 6E concentrate deliveries to Impala Refining Service (IRS) declined by 19% to 50 000 oz, reflecting changes in the contractual mix. Consequently, group 6E production volumes declined by 5% to 947 000 oz.

Refined 6E production, which includes saleable ounces from Impala Canada and Impala Bafokeng, declined 9% to 807 000 oz.

Scheduled annual processing maintenance was completed in the period, with refined volumes further impacted by water supply interruptions owing to extended Rand Water maintenance activities.

Excess inventory increased by 105 000 6E ounces from the end of FY2024 to 495 000 6E ounces at period end and 6E sales volumes were a 4%-lower 792 000 oz, including saleable production from Impala Canada and Impala Bafokeng.

IMPALA RUSTENBURG

Production at Impala Rustenburg continued to demonstrate a sustained improvement owing to increased operational flexibility, despite the lengthy safety stoppage following the fatal fall-of-ground accident in the period.

Tonnes milled decreased 6% to 2.84-million tonnes, while grade benefitted from improving ore mix and mining discipline, increasing by 5% to 4.17g/t. Stock-adjusted 6E production was 2% lower at 361 000 oz and refined 6E production 8% lower at 282 000 oz.

IMPALA BAFOKENG

Impala Bafokeng benefitte...

New hydraulic dewatered stacking (HDS) technology has the potential to transform the nature of tailings and land rehabilitation in the mining industry, Anglo American Chile CEO Patricio Hidalgo reported on Tuesday.

Anglo is implementing its patented HDS technology at the El Soldado copper operation in Chile.

"Sustainability considerations are embedded into our strategy and support our permitting track record - including with respect to water, which is the greatest sustainability challenge in our region," Hidalgo revealed in a release to mark Anglo's sustainability performance update covered by Mining Weekly.

The Johannesburg- and London-listed Anglo, headed by CE Duncan Wanblad, is coalescing accumulated know-how to deliver innovative water solutions, such as HDS as well as its integrated water security project at the Los Bronces copper and molybdenum mine, also in Chile.

"Both are critical to our licence to operate," added Hidalgo, without elaborating on how exactly he expects HDS has the potential to transmute slimes dams and the reclamation of terra firma to demonstrate to "shareholders, communities, governments and customers what responsible mining can really look like".

The integration of sustainability, innovation and responsible mining was also being used to deliver portfolio growth, Anglo strategy and sustainability director Helena Nonka reported.

"With many of the world's undeveloped copper resources sterilised due to environmental and community constraints, we continue to find innovative ways to unlock those and other opportunities for all stakeholders.

"While each undeveloped resource has its own physical and social characteristics, we have shown what can be achieved when genuine dialogue, collaboration and trust are combined with the required technical and sustainability competencies built up over time to deliver profitable outcomes and enduring value for stakeholders," Nonka added.

Anglo reported that it was updating its sustainable mining plan to reflect its future portfolio composition.

The presentation placed particular focus on how additional value was being unlocked from copper endowments.

"Sustainability, innovation and operating responsibly are embedded into our strategy - from day-to-day operational decisions to portfolio choices," Wanblad stated.

"We believe this approach is a pre-requisite for sustainable value creation and is integral to our DNA as a company.

"Our aim is to reliably and responsibly provide metals and minerals that are required to decarbonise our planet and that are also the building blocks of modern life - from housing to food - for ever more people," Wanblad added.

The commitment of South Africa's oldest mining company, De Beers, to leading the local diamond industry towards greater inclusivity is reflected in this week's call by the Anglo American company for entrepreneurs to take part of its local business development programme.

As a three-year sponsored initiative, the programme provides training and mentorship on diamond beneficiation, jewellery design, manufacturing and retailing from seasoned business leaders.

Highly successful entrepreneurs could ultimately become De Beers sightholders - the diamantaires who purchase rough at global sales auctions.

In a release to Mining Weekly, De Beers described the nurturing and elevation of entrepreneurial talent in South Africa's diamond and jewellery sector as a key pillar of its beneficiation strategy.

Carried out in partnership with Raizcorp, it is one of the investments in sector's future and the broader South African economy.

"We're committed to leading the transformation of the local diamond industry towards greater inclusivity and sustainability," said De Beers Sightholder Sales South Africa senior sales and office manager Richard Steenkamp, who described De Beers as being dedicated to driving growth and innovation in South Africa's diamond and jewellery industry.

Applicants are being invited for interviews in which insights will be shared on the way in which the programme contributes towards transforming the South African diamond industry by empowering entrepreneurs with the skills and knowledge required to build sustainable enterprises.

Regarding diamond production, De Beers stated this month that it is assessing options with its partners to reduce production going forward, as the midstream continues to hold higher-than-normal levels of inventory, while the expectation for a recovery remains protracted.

Amid that, it is continuing to maintain full-year production guidance of between 23-million and 26-million carats.

De Beers reported earlier this month that trading conditions remained challenging in light of the higher-than-normal midstream inventory levels and the prolonged period of depressed consumer demand in China.

In response, the seventh and eighth sales sights have been merged into one event.

Sales of rough in the combined sight seven and eight sights will be reflected in the fourth-quarter production report, as sales from the event continued beyond the end of the third quarter.

Consequently, rough diamond sales in the third quarter totalled 2.1-million carats from one sight, generating $213-million in revenue, compared with 7.4-million carats sold in three sights in the third quarter of 2023, generating $899-million in revenue.

Sales were also lower than the 7.8-million carats sold in three sights in the second quarter of this year, generating $1.04-billion in revenue.

The average price for the third quarter decreased by 4% year-on-year to $128/ct. The average price was also 10% lower compared with the second quarter of this year.

However, De Beers Jewellers delivered consistent performance with growth in design-led pieces.

The International Platinum Group Metals Association (IPA) is calling on policymakers to urgently drive forward the deployment of fuel cell electric vehicles (FCEVs), alongside battery electric vehicles (BEVs), before 2030 to boost European competitiveness.

The call embraces reducing dependency on critical raw materials by balancing the role of FCEVs alongside BEVs, maintaining Europe's competitive advantage in hydrogen technology as competitors rapidly catch up, and ensuring iridium supply for hydrogen production and clean transport.

Together with Heraeus Precious Metals and Johnson Matthey, two of the leading companies in the precious metals industry, IPA published its position paper "Fuel Cell Vehicles to Boost European Competitiveness and the Green Deal".

These platinum group metals (PGMs) experts outline where support is required to secure Europe's competitive position in FCEVs, meet Europe's 2030 zero-emission vehicle goals, and ensure a more achievable, resilient, and sustainable path to zero-emission mobility by 2050.

"PGMs are indispensable in the energy transition. To secure the scale-up of green hydrogen, we need a stable supply of PGMs which requires management measures for the PGM supply chain," Heraeus Precious Metals Executive VP Business Line Hydrogen Systems Philipp Walter explained.

The European Green Deal and Sustainable Mobility Strategy sets ambitious targets for transport emission reduction. While it calls for the deployment of zero-emission road vehicles, the reality is that deployments are heavily skewed towards BEVs, with FCEVs only seen as a longer-term necessity, particularly in the passenger vehicle segment.

In its paper, the association outlines three key reasons why the timely development of the FCEV market is required:

Focusing support solely on BEVs imposes a high risk of supply chain bottlenecks. This is particularly true for critical metals such as copper, nickel and lithium.

By investing in the development of its FCEV market, Europe would capitalise on existing, home-grown technology and supply chains, create more local jobs and prevent other countries from outcompeting Europe.

Developing FCEVs would secure the continued supply of iridium, a by-product of platinum mining. Platinum is currently in high demand for use in catalytic converters but needs a replacement market for the future.

Alastair Judge, Chief Executive, Platinum Group Metal Services at Johnson Matthey, said: "Platinum Group Metals have a crucial role in the energy transition, and we need the correct policies in place to make optimum use of these finite resources. Supporting the growth of both FCEVs and BEVs will allow for the sustainable development of clean hydrogen technologies and provide the necessary confidence in the market to continue investment in PGM mining," Johnson Matthey PGM Services CE Alastair Judge stated in the release to Mining Weekly.

Investment in FCEVs also makes economic sense when considering the full picture. For example, although building hydrogen refuelling stations may appear costly compared to using the existing grid for BEVs, replacing many existing vehicles with BEVs would require substantial and expensive upgrades to the grid and recharging infrastructure.

The paper concludes that the energy transition in Europe needs a two-track strategy, with deployment of FCEVs prioritized alongside BEVs. But while the ramp up of BEVs has seen substantial public and policy support in the last decade, the same is not true for FCEVs. The industry calls on policymakers to support their recommendations and urgently create a level playing field for FCEV manufacturing and refuelling infrastructure.

The PGM industry is leading the way on hydrogen development and is ready to scale up.

"But we can't do it alone. That's why we're calling on the EU to accelerate FCEV market scale with targeted fleet deployments, expand hydrogen infrastructure to meet 2030 targets, and bridge the cost gap for clean hydrogen production. T...