This audio is brought to you by Wearcheck, your condition monitoring specialist,.

Renewables company Envusa Energy, which is owned jointly by Anglo American in partnership with EDF Renewables, this week lodged an application for a licence to trade electricity in South Africa's Northern Cape, North West, Eastern Cape and Limpopo provinces over the Eskom network.

The seven offtakers are located in the Northern Cape, North West and Limpopo and the three generators on the borders of the Northern Cape and Eastern Cape provinces. (See map.)

Mining Weekly can report that the desired date for the licence to take effect is Tuesday, October 31, with the offtakers of the sun and wind energy being a combination of mines, smelters, and other large mining-related electricity users.

The operations to be served are Anglo Platinum's Amandelbult underground platinum group metals (PGMs) mine in Limpopo, Kumba Iron Ore's Kolomela mine in the Northern Cape, Anglo Platinum's Mortimer smelter operation that straddles Limpopo and North West, Anglo Platinum's Mototolo PGMs mine in Limpopo, Anglo Platinum's Polokwane smelter in Limpopo, Rustenburg PGMs mine in North West, and De Beers' Venetia diamond mine near the Zimbabwe border and also in Limpopo.

Amandelbult and Rustenburg are described in the application as collocated mines that house a combination of furnaces, compressors, and smelters.

A map of the trading area being sought shows three generation plants clustered on the borders of the Northern Cape and Eastern Cape as having a combined capacity of 520 MW of alternating current (ac).

These are the 240 MWac Mooi Plaats solar photovoltaic plant, the 140 MWac Hartebeeshoek wind plant, and the 140 MWac Umsobomvu wind plant. All three have been awarded Strategic Infrastructure Project status.

The durations of the power purchase agreements and the tariffs to be charged per megawatt hour have not been disclosed, but the total price charged to the respective offtakers will be a combination of a blended wind tariff between Umsobomvu and Hartebeesthoek, Mooi Plaats' solar tariff and the wheeling cost.

The energy reconciliation for wheeling will be based on the energy supply agreements already in place between Eskom and the offtaker entities.

Regarding metering arrangements, Envusa has been granted monthly access to the meters on the premises of the generators and the offtakers to perform the reconciliation process with Eskom.

This process involves matching the energy delivered to the offtaker by any of the three generators and setting this off against the offtakers' actual consumption, carried out in terms of the energy supply agreements that Eskom has in place with the respective offtakers.

Total trading revenues are calculated by applying the electricity price charged by the respective generators to Envusa adding the cost of wheeling.

Regarding human resources, Anglo American Energy Solutions Limited and EDF Renewables South Africa personnel will be seconded to the trading entity.

Envusa's business model involves purchasing energy from generators and selling it to offtakers. It allows for multiple generators of various technologies to sell energy to Envusa, and then Envusa to on-sell that energy to multiple offtakers across South Africa.

As has been reported by Mining Weekly, Anglo envisages that the partnership will ber generating 3 GW to 5GW of clean electricity across Southern Africa.

Not listed in the application is Anglo Platinum's large opencast Mogalakwena mine in Limpopo, which is where Anglo's nuGen™ zero emission haulage solution is giving rise to far-reaching emission-free mine haulage vision.

In October 2022, Anglo and EDF agreed to a first-phase launch of 600 MW by Envusa. The implementation of the regional renewable energy ecosystem through the partnership would also serve as a clean energy source for the production of green hydrogen for the increased rollout of hydrogen-powered ultra-class mine haul trucks while also supporting the dev...

This audio is brought to you by Wearcheck, your condition monitoring specialist.

The UK will make R20-million in funding available to help identify the most bankable opportunities for African countries to attract investment into the processing of critical minerals.

Boston Consulting Group will be carrying out the study, which should be completed by year-end.

The study will assess specific opportunities for in-country processing and mid-stream value addition and will focus on South Africa, Democratic Republic of Congo, Zambia, Zimbabwe, Malawi, Madagascar, Tanzania, Kenya, Rwanda, Morocco, Guinea, Ghana, Angola and Equatorial Guinea.

Besides outlining high-potential prospects, the report could also identify the key constraints to the projects proceeding and provide recommendations on how these could be addressed.

British High Commissioner to South Africa Antony Phillipson announced the commitment at the Critical Minerals Africa conference, taking place in Cape Town, where he reiterated the growing importance of cooperation on critical minerals for the economic partnership between South Africa and the UK.

In 2022, the two countries pledged to deepen their partnership on critical minerals during President Cyril Ramaphosa's State Visit to the UK, where it was agreed more should be done to promote the responsible exploration, development, production and processing of minerals in South Africa.

"African countries rightly have a high level of ambition for unlocking the value of their natural resources; and the UK will work with them in partnership to support delivery of their ambitions.

"We are committed to increasing our investment in the continent and strengthening the transparency and resilience of the supply chain for critical minerals - creating green jobs in Africa, while taking action on climate change," Phillipson said.

He added that demand for critical minerals was expected to more than triple by 2030, reaching over 30-million tonnes as countries sought to meet net-zero commitments, while demand for certain categories of minerals, such as lithium used in battery electric vehicles, would grow at an even faster pace.

The announcement came ahead of the second UK-hosted African Investment Summit, which will take place in April 2024, and which is expected to deliver new investments in line the first Summit of 2020, where R150-billion-worth of new investments were announced.

Work on the study is scheduled to take place as from the week beginning on October 23 and a decision will be made early in the new year regarding the best way to communicate the results and potentially advance the prospects further.

This audio is brought to you by Wearcheck, your condition monitoring specialist.

The continued weakening of platinum group metal (PGM) prices and macroeconomics have resulted in the Karo Platinum Project timeline for commissioning being extended out by 12 months to June 2025, with the opportunity to accelerate the timeline as markets become more favourable.

The Karo platinum project, an openpit PGM project under construction in Zimbabwe's Great Dyke, is a long-life asset with an initial 17-year life of mine.

The principal operating asset of Tharisa, the Johannesburg- and London-listed platinum group metals (PGMs) and chrome mining company, is its mechanised Tharisa mine in the south-western limb of South Africa's Bushveld Complex, which has an 18-year pit life and can extend operations underground by at least 40 years.

The revised timeline provides flexibility to navigate volatile market conditions, Tharisa CEO Phoevos Pouroulis stated in the company's production report for the fourth quarter and the year ended September 30.

"Our growth strategy remains firmly intact, with continuous optimisation at the Tharisa Mine, investment in downstream beneficiation, and our commitment to the development of the multi-generational Tier 1 Karo Platinum Project," Pouroulis added.

"While current markets are volatile and unpredictable, we believe in the medium term outlook for PGMs underpinned by a supply side constrained economy, this supported by a robust chrome market driven by stable demand," he said.

Tharisa's co-product model was supported by a strong recovery in chrome production in the second half of the year and benefiting from a 26% increase in price.

Chrome production for the financial year was 1 580.1 kt compared with 1 582.7 kt in the previous financial year and annual PGM production was 144.7 koz, down on the 179.2 koz of the 2022 financial year.

The average annual metallurgical grade chrome concentrate price was up 26.2% at $263/t and the average annual PGM price was down 26.1% at $1 893/oz.

Group cash on hand of $268.8-million and debt of $142.2-million has the company in a net cash position of $126.6-million.

Production guidance for the 2024 financial year is between 145 koz and 155 koz of PGMs and 1.7 Mt to 1.8 Mt of chrome concentrates.

"Our margins remain strong due to our mechanised low cost operations, with a continued disciplined capital allocation strategy, ensuring investment in our existing businesses, providing sustainable growth and return to shareholders," said Pouroulis.

MARKET UPDATE

Tharisa reports that the chrome market continues to support sustainable pricing, with reduced port inventory in China highlighting the tight market balance underpinned by the growth in Chinese domestic ferrochrome and stainless steel industries.

Supply chain complexities are exacerbated by constrained rail and port logistics in South Africa together with the effect of erratic electricity supply from Eskom.

The PGM market remains under continued pricing pressure with uncertainty of the macro global economic outlook having a direct effect on the demand for the precious metals. This is overlain by further indecisiveness on the future of the internal combustion engine.

With the steep decline in PGM prices, analysts have cautioned that higher cost producers within the PGM industry are not profitable at these commodity prices. The 'higher for longer' concerns of the global interest rate market have impacted prices for now and Tharisa sees muted upside in the short term for PGM prices.

In the medium to longer term demand drivers including the hydrogen economy, possible supply cuts at unprofitable PGM producers, project delays and capital discipline versus demand for the internal combustion engine, will require a recovery in PGM prices to ensure demand is met by supply.

This audio is brought to you by Wearcheck, your condition monitoring specialist,.

The world over, green hydrogen is being recognised as the most effective route towards combating the climate crisis in the most holistic way possible, with Minerals Council South Africa highlighting the collaboration of South Africa's leading platinum mining company with a local grey hydrogen producer and a car company with 30 global production site and a 140-country sales network.

Collaborating in the trialling of hydrogen fuel cell vehicles are Anglo American Platinum, BMW Group South Africa and Sasol South Africa in the trialing of fuel cell electric vehicles (FCEVs) in which the green hydrogen is converted into clean electricity by platinum catalysts.

"As countries around the world reduce their environmental footprint by reducing greenhouse gas emissions and address climate change concerns, green hydrogen is a vital component in the shift towards green energy sources," the Minerals Council stated in its release to Mining Weekly.

For South Africa, which is the largest supplier of platinum group metals (PGMs), the use of green hydrogen in the auto sector is an important development that could generate demand of up to five-million ounces of platinum group metals (PGMs) a year if hydrogen fuel cells are used in 10% of the global car market. This will underpin job security for the 175 000 people employed in the PGM mining sector.

Coinciding with the Minerals Council media release were several other local releases and many global newsbreaks emphasising green hydrogen's far-reaching momentum.

As reported by Engineering News at the weekend, South Africa's Eastern Cape, Northern Cape and Western Cape provinces have agreed to team up in a bid to position South Africa as a global hub for the production of green hydrogen and derivative products, as well as to produce the components required in the green hydrogen value chain, ahead of the finalisation of South Africa's Green Hydrogen Commercialisation Strategy.

In addition, steel producer ArcelorMittal South Africa is moving ahead with a study into the production of green hydrogen directly reduced iron (gHDRI) at its mothballed Saldanha Steel Works, in the Western Cape. The JSE-listed group has signed a memorandum of understanding with an as yet unnamed "developer of transformational energy solutions" to advance the production of gHDRI at the plant.

On Monday, Charbone Hydrogen of Canada announced the launching of the construction of the first phase of Toronto-listed company's green hydrogen production facility in Quebec

This followed the energy company with Australia's iron-ore mining group Fortescue has announced plans to build a 550 MW electrolyser at its Gibson Island Project in Brisbane, a platinum-based proton exchange membrane electrolyser as well as European company Lhyfe, a world pioneer in the production of green and renewable hydrogen for transport and industrial applications, turning the first sod for the construction of a hydrogen production plant in the German city of Schwäbisch Gmünd. This plant will be the first to supply hydrogen directly to an industrial park. It is also the first in a network of many plants that will be operated by Lhyfe, which is setting out to deliver green hydrogen in bulk in Germany and France by 2025.

In addition, Fortescue and Plug of the US have started the initial diligence process for Fortescue to take up to a 40% equity stake in Plug's Texas green hydrogen plant and for Plug to take up to a 25% equity stake in Fortescue's proposed Phoenix green hydrogen plant.

The World Platinum Investment Council, with its eye on the demand for platinum that the green hydrogen rollout will generate, expects one-million FCEVs to be on China's roads by 2035 and that one in eight newly registered commercial vehicles worldwide will be powered by hydrogen fuel cells by 2030. The broad-based commercial adoption of FCEVs could add more than three-million ounces to yearly platinum...

This audio is brought to you by Wearcheck, your condition monitoring specialist,.

The R1-billion solar project being developed by Chariot Transitional Power and Total Eren in North West province is on track as planned to be completed end 2024.

In doing so, it will contribute to Tharisa Minerals' planned reduction of 30% of carbon emissions in 2030, Tharisa investor relations and communications head Ilja Graulich stated in response to Mining Weekly on Friday.

Construction of the Buffelspoort Project solar energy facility, which is set to start in the second quarter of 2024, is expected to create jobs for about 200 people, mainly drawn from the local communities.

The project will generate up to 40 MW of photovoltaic (PV) electricity to the London- and Johannesburg-listed Tharisa's platinum group metals (PGM) and chrome mine in Rustenburg.

The PV project will supply electricity to the South African PGM mine on a minimum 15-year power purchase agreement.

"As an Africa-focused developer and an independent power producer, our core mandate is to develop, finance and operate renewable projects in Africa to sell renewable energy to private off-takers," Chariot CEO Benoit Garrivier stated in a release put out by the Department of Trade, Industry and Competition, which highlighted Chariot's momentum towards fulfilling its investment pledge, made at the fifth South African Investment Conference hosted by President Cyril Ramaphosa in Johannesburg in April this year.

"South Africa is an important market for Chariot because of its size in Sub-Saharan Africa, the abundance of renewable solar resources, the existence of various strong corporate off-takers and a supportive government.

"Various government initiatives over the last few years have made the South African market ideal.

"We're delighted to be working on this project, alongside our partner Total Energies, helping to reduce Tharisa's carbon footprint by developing this independent source of power for their mining operations," Garrivier added.

Chariot will also supply solar power to 70% Tharisa-owned Karo PGM mine in Zimbabwe at the initial installed capacity of 30 MW, as part of a broader project of 300 MW to be developed over the mine's evolution.

Mining Weekly Editor Martin Creamer discusses the American-Australian business partnership that was recently announced, which focuses on a global green hydrogen ecosystem; the global attention that Copper 360’s mining school is getting; and the focus on the integration of mining with the circular economy.

This audio is brought to you by Wearcheck, your condition monitoring specialist.

Building out and scaling up a global green hydrogen ecosystem collaboratively is at the heart of an American-Australian business partnership announced this week, amid 30-plus countries already having hydrogen strategies in place that focus on the deployment of green hydrogen to achieve net-zero climate-mitigation goals.

Plug of the US, headed by Andy Marsh, and Fortescue Energy of Australia, headed by Mark Hutchinson, outlined to 3 000 virtual attendees their common mission of spreading green hydrogen across the world, while at the same time fighting climate change by slashing carbon emissions, cleaning up industry, electrifying vehicles, powering commercial and residential buildings, and generating a substantial number of sustainable jobs. (Also watch attached Creamer Media video.)

"This is a big market opportunity. It's really a focus of Plug every day to make hydrogen an ubiquitous fuel, and that's why I get so excited when we partner with companies like Fortescue. We have a similar vision and know we have to make hydrogen easy," Marsh told the company's fifth annual symposium, which was covered by Mining Weekly.

Great news for South Africa is that the 550 MW electrolyser that Plug will supply to Fortescue's Gibson Island Project in Brisbane is a proton exchange membrane (PEM) electrolyser. This is because PEM electrolysers are platinum-based and South Africa hosts the world's largest resource of platinum group metals.

Fortescue's final investment decision on that project is expected to be taken by the end of December. Once operational, the plant will produce 385 000 t/y of green ammonia from the green hydrogen produced onsite through the hydrogen electrolysis facility.

In addition, Plug and Fortescue have started the initial diligence process for Fortescue to take up to a 40% equity stake in Plug's Texas hydrogen plant and for Plug to take up to a 25% equity stake in Fortescue's proposed Phoenix hydrogen plant.

Meanwhile, across North America and Europe, Plug has deployed more than 60 000 fuel cells and 180-plus fuelling stations and plans to build and operate a green hydrogen highway.

Fuel cells, which go hand-in-glove with platinum-based green hydrogen electrolysers, contain platinum catalysts that convert the green hydrogen into clean electricity for mobile and stationary use.

PEM electrolysers were first developed during the 1950s for the space programme and have transitioned to the mainstream as the case for green hydrogen has strengthened, driven by the need to find solutions to combat climate change. The improving business case for green hydrogen is based on growing renewable generation capacity, falling renewable electricity costs, and PEM's innovative advance.

"Gibson Island's one of our first projects. Eventually we want to work on how do you replace the LNG market globally. That's like the Holy Grail in our view.

"Just think about the last 12 months, how governments around the world have really accelerated this industry. We're very much at the starting gate of this industry, we've got a long way to go, but there's plenty to do for everybody," said Hutchinson.

Bloomberg estimates that 20% of world energy will come from hydrogen by 2050. By 2030, Europe will be using 10-million tons of domestically produced hydrogen a year and will also be importing another 10-million tons of hydrogen. Europe has made it clear that 42% of this hydrogen must be green hydrogen. The US will be generating 10-million tons of its own hydrogen.

"When we do a back-of-the-envelope calculation, just for our electrolyser business, just for Europe, just for the United States, it's a $40-billion opportunity between now and 2030, just for one small segment of our business.

"So, yes, hydrogen's going to be big, and we've been building it out. We've been building infrastructure for the last 15 years, and what I've learnt over those 15 years is that when you're in ...

This audio is brought to you by Wearcheck, your condition monitoring specialist.

The technical team of the JSE AltX- and Aim-listed Jubilee Metals Group is innovating a waste leach circuit for the treatment of copper and cobalt tailings, as part of its Northern Refining copper strategy in Zambia.

The development phase has commenced with upscaled continuous pilot runs to confirm the "encouraging" results achieved to date, which was how Jubilee described them in an October 11 release to Mining Weekly, which coincided with the company's publication of audited results for the 12 months to June 30 and an integrated annual report.

An investment programme has been implemented to diversify and expand chrome, platinum group metal (PGM), copper and cobalt operations.

In the 12 months to June 30, record production was achieved across Jubilee's PGM, chrome and copper operations with 42 433 oz of guidance-exceeding PGMs up 2% year-on-year, 1 289 890 t of chrome concentrate tonnes up 7%, and 2 923 t of copper tonnes up 29%.

In South Africa, its expanded processing of PGM tailings and ores previously regarded as waste has a production capacity of 44 000 oz of PGMs a year, and in Zambia, some 300-million tonnes of copper and cobalt tailings have been secured for upgrading and refining.

Back-up power units installed at chrome facilities in electricity-short South Africa ensured continuous operations and advancements were achieved in Zambia through the formulation of process flow sheets for the treatment of mixed and transitional copper reefs as part of a 14 000 t/y Southern copper strategy.

At the new Roan concentrator in Zambia, water and power infrastructure development has been provided.

"We've demonstrated our ability to navigate through some challenging infrastructure conditions," stated CEO Leon Coetzer, who pointed out that the drop in the PGMs basket price had been countered by expanding chrome operations into higher-margin offtake agreements.

Cash from operating activities, supported by increased contribution from operational expansions, totalled $37-million, down on 2022 financial year's $42-million. Earnings before interest, taxes, depreciation and amortisation were $29.8-million, down on the $48.9-million of the previous corresponding period. Gross profit fell to $38-million from $60-million prior.

Going forward, new processing partnerships in South Africa are expected to enhance margins and growth is on the cards in Zambia.

This audio is brought to you by Wearcheck, your condition monitoring specialist.

Copper 360's mining school in the Northern Cape is attracting attention from international mining schools and global agencies wanting to partner with it.

"We've received a lot of requests," Copper 360 executive director: human capital development Quinton Adams told Mining Weekly in a Zoom interview. (Also watch attached Creamer Media video.)

JSE AltX-listed Copper 360, headed by CEO Jan Nelson and chaired by Shirley Hayes, is intent on not only catering for the skills needed for its own mining and processing but also the needs of the Namaqualand area, where there are close to half a dozen mines.

In addition, a strategic partnership with Sol Plaatje University of Kimberley is envisaged, talks have begun with the Camborne School of Mining of the UK, a mining school in Poland made contact last week, and requests are being received from African countries regarding involvement with what will serve as an incubation centre for mining-related skills, amid the wave of mining growth sweeping through the Northern Cape.

Facilitators training the 30 students are working according to the Vygotsky theories of zone of proximal development to 'scaffold' these students towards the required levels of skill.

"What I like most about these facilitators - and they are stunning, and very dynamic - are their personal stories, their own journeys that they are sharing with the students, to broaden their perspectives and horizons," said Adams.

The students are learning about mining in a mining environment. When they open their doors after receiving theoretical instruction, they see that theory being carried out in practice.

"It is theory combined with practical. We take them from the bottom and we move them up," said Adams.

The three non-accredited courses that have been offered thus far are on basic geology and sampling and the development of ore reserve technicians. Simultaneously, future jobs that will be done at the copper operation are being mapped.

The flotation plant being built requires a higher level of skills, for which non-accredited courses are being developed.

"We want to be the leading mining school in the Northern Cape and to build partnerships with Sol Plaatje University, other mines, and, very importantly, the education department so that young people who are living in the area can become part of mining development," said Adams.

To what extent will students obtain modern exposure to exploration, resource development, copper mining and copper beneficiation?

The 'scaffolding' approach is being used as a core fundamental principle. We start at the bottom and we 'scaffold' students through all these different programmes. The last programme will be introduction into mining law, drone technology and surveying. After that, we'll start to focus next year on underground geology. A very interesting aspect is the digital skills that students are lacking. Before we can talk about artificial intelligence and mine optimisation, we first have to start at the bottom and that's why we are working with the schools because robotics and artificial intelligence need to start at an early age and that is the long-term plan to take students from the bottom and develop them to where they can understand and partake in beneficiation and exploration techniques.

More than 200 curriculum vitae were received for the initial 30 places, which is an indication of the eagerness of the people of the area to be trained.

This audio is brought to you by Wearcheck, your condition monitoring specialist.

Circularity is already practised at many mine sites, which use circular principles to reduce waste and conserve water.

But to achieve full circularity for products - from production to consumption to reuse - requires collaboration between designers, policymakers and industry, the FT Mining Summit heard this week. (Also watch attached Creamer Media video.)

As the circular economy grows in importance, many miners are also starting to look more closely at recycling operations, it was stated during a panel discussion covered by Mining Weekly.

Financial Times commodities correspondent Harry Dempsey, who moderated, referred to the apparent exponential rise of recycling and the circular economy as demand for critical minerals rises for the global energy transition.

Panel participants were Glencore global recycling head Kunal Sinha, Norsk Hydro EVP corporate development Trond Olaf Christophersen, International Copper Association material stewardship global director Louise Assem, and Circular CEO Douglas Johnson-Poensgen.

Cross-portfolio upcoming demand for critical minerals is roughly calculated to be six times greater than current supply, pointing to the need for as much responsible mining production as possible between now and 2050.

"Even if you ramp up all the responsible production you can between now and 2050, we think there's still a gap. It's hard to quantify, but there's still a gap. So, how you meet that gap is through what we would like to think of as responsible consumption, which essentially your circular economy," said Sinha.

"The circular economy is not just recycling. It's product life extension, repair, reuse, all of that, and the very last step is recycling, so it's not a competition with primary mining because you need as much mining as you can responsibly do, but you also need to consume more responsibly and have a circular ecosystem.

"Every mining company is different. Your portfolio is different. I can only speak for Glencore. From my point of view, our vantage point comes down to three things from our portfolio. Once is assets. We have two types of assets. We have assets that have been recycling for a long time. These are very complex metallurgical assets, so what you can do is operate at a massive scale where you blend both the primary feeds and the recycled feeds, very difficult to process materials," said Sinha, who added that Glencore also has other built assets that can be repurposed, exemplified by lead refinery outside London, parts of which are being repurposed for electronics recycling and potentially also battery recycling.

"So, instead of building greenfield, you can pivot and use these existing assets to do it much faster," Sinha noted.

Then there is risk management: "From our experience to do recycling properly, the risk is very high. To manage that risk, you need the same skills as commodity trading because you're not sitting on a deposit of copper and know exactly what it is in there and you're mining it and you have a plan. You have to buy this feed across hundreds of suppliers. You don't really know what you're getting, so you have all kinds of risks in terms of financial risk, counter-party risk, a lot of these risks, which is the same as in commodity trading, so our trading DNA helps with the recycling.

"In a world where you have a lot of primary production into the energy transition, as we have, and a history of recycling, you can easily combine those two to close the loop," added Sinha.

ALUMINIUM

When it comes to aluminium, Christophersen reported that the circular economy is already in place, with roughly one third of the total aluminum metal supply being recycled material.

In more mature markets such as in Europe and the US, 40% to 45% of the total metal production is based on aluminium scrap.

"A significant share of the total metal supply is secondary aluminium and part of the circular economy," Christopher...