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ASX- and JSE-listed Orion Minerals has reached the final stages of its acquisition of a controlling interest in the Okiep copper project, located about 570 km north of Cape Town in the Northern Cape.

Strategic funding partner the Industrial Development Corporation of South Africa (IDC) has now obtained internal approvals and counter-signed the addenda to the agreements which will see Orion acquire the controlling interest in Okiep.

In addition, all the supplementary conditions to implement the first phase of the Okiep transaction have been fulfilled, including receipt of the relevant approvals from the Foreign Surveillance Department of the South African Reserve Bank and the South African Takeover Regulation Panel.

Given this, the Okiep transaction agreements have now become unconditional.

"Orion's 641 km2 package of mineral rights holdings in the Okiep copper district represents a highly strategic asset, located in the heart of a rich historic mining camp that produced over two-million tonnes of contained copper under previous ownership, including Newmont and Gold Fields.

"This district is in the early phases of an exciting new chapter in its history, with a huge opportunity to meet surging global demand for copper metal from the electric vehicle and artificial intelligence-driven revolutions that are currently transforming the global economy," Orion MD and CEO Errol Smart said on May 6.

Orion said that it expects to complete the first phase of the Okiep transaction on May 7, with payment of R46-million, made up of R11-million in cash and R35-million settled by way of Orion issuing fully paid ordinary shares.

Orion will at a general meeting to be held on May 23 seek shareholder approval of, among other things, the ratification of the agreement to issue the consideration shares.

The IDC approval has been received for R43.75-million funding for its proportional share of drilling and operating costs for the New Okiep Mining Flat Mines project.

Moreover, a diamond drilling programme started in the Flat Mines area of Okiep in February. Eleven diamond core drill holes have been planned, made up of five holes at Flat Mine East, four holes at Flat Mine South and two holes at Flat Mine North, comprising a total of 5 800 m.

The programme has been designed to confirm historical drilling information and resultant interpretations, provide geotechnical information, and provide additional drill core for confirmatory metallurgical testwork.

Assay results from the first two completed holes at Flat Mine East were reported on April 22 and included the high-quality intercept in drill hole OFMED153 which returned 49 m at 4.89% copper from 231 m to 280 m, including 10.23 m at 12.47% copper.

Drilling is progressing well, Smart said, with the next batch of assay results from this ongoing drill programme expected before month-end.

"Given the major activity at the Okiep copper project, we are looking forward to delivering significant news flow from Okiep in the coming months," Smart added.

Completion of the Flat Mines feasibility study is on schedule for completion in July, Orion said.

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Green hydrogen, which is generated with the benefit of the catalysis that platinum group metals (PGMs) provide, is being increasingly highlighted as a pillar of the global decarbonisation transition that is poised to save the world from ruinous climate change.

News just out is that steps are being taken to locate a green hydrogen production facility in a location where the 2030 Winter Olympics are to be held in the French Alps.

The green hydrogen facility will not only decarbonise stainless steel production at a site in Savoie, France, but it will also provide green hydrogen to decarbonise mobility in the French Alps region where the 2030 Winter Olympics are to be held.

In the process, green hydrogen will be highlighted as the sustainable model of winter tourism.

The electrolysers that produce green hydrogen most efficiently are catalysed by PGMs that South Africa hosts in abundance.

Moreover, the hydrogen fuel cells that provide decarbonised land, air and sea mobility as well as green offgrid and minigrid electricity are also PGMs dependent.

By deciding to use green hydrogen at its Ugitech plant in Ugine, in the French Alps, Swiss Steel Group has evoked this comment from Lhyfe vice-CEO Philippe Desorme: "Green hydrogen can and must be deployed as quickly as possible."

Euronext-listed Lhyfe is designing the green hydrogen production unit to have a capacity up to 12 t a day as part of the plan to develop a local hydrogen ecosystem in the French Alps.

"The energy transition is going to become increasingly necessary to ensure the long-term survival of our industries, and green hydrogen is emerging as one of the pillars of this transition," Desorme added in a release to Mining Weekly.

Ugitech development director Frédéric Perret highlighted in the same release that the next step is to roll out this new green hydrogen solution to all systems for which direct electrification is not a compatible option.

The project planned is expected to eliminate the emission of 16 000 t of carbon dioxide a year.

France aims to install 6.5 GW of low-carbon electrolytic hydrogen production capacity by 2030, rising to 10 GW in 2035, according to a draft update of France's national hydrogen strategy.

Meanwhile, TignesNet.com reports that the Col du Palet, near Tignes, in the French Alps, is utilising a hydrogen fuel cell to supply clean renewable electricity for hikers staying at the mountain hut, the first in Europe to benefit from hydrogen technology.

At the Beijing Winter Olympics in China in 2022, more than 1 000 green hydrogen fuel cell vehicles were operated.

In the stationary power sector, fuel cells can convert hydrogen into electricity without producing any harmful emissions.

EUROPEAN HYDROGEN BANK AUCTION

The European Union has awarded €720-million to green hydrogen projects in the first European Hydrogen Bank auction, Hydrogen Insight reported on April 30.

Three of the auction winners are located in Spain, two in Portugal, one in Finland and one in Norway.

Together will have the capacity to produce 1.58-million tonnes of green hydrogen over ten years for use to produce green steel, green fertiliser, green chemicals as well as to supply green hydrogen derivatives to the maritime sector.

Meanwhile, the Georgia and Tennessee green hydrogen production facilities hydrogen solutions company Plug Power of the US have achieved full nameplate capacity, the World Platinum Investment Council has reported.

Using the country's largest proton exchange membrane (PEM) electrolyser, Plug Power's Georgia plant now produces 15 t of liquid hydrogen a day, and its Tennessee plant contributes an additional 10 t a day. PEM electrolyser efficiency is elevated through the use of PGMs.

Before the end of this year, Plug Power expects to bring an additional 15 t a day of liquid green hydrogen production online from a joint venture plant with Olin, in Louisiana.

Green hydrogen is seen by...

Mining Weekly Editor Martin Creamer discusses Barrick's recently revealed first quarter results where discovery and development were punted as the true drivers of value creation in mining; South Africa’s struggling economy, which could benefit relatively quickly from getting exploration going at pace; and Harmony Gold’s key South African gold projects and its Australian copper project.

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Diversified mining major BHP, which has made a rejected proposal to combine with Anglo American by way of a scheme of arrangement, confirmed on Thursday that it intended maintaining its multi-decade listing on the Johannesburg Stock Exchange (JSE).

BHPalso emphasised that, under its Anglo proposal, South Africa would continue to benefit from Anglo American Platinum and Kumba Iron Ore operating as independently listed South African companies investing in local operations, communities, and jobs.

The structure of its proposal, including the proposed distribution of Anglo's shares in Anglo Platinum and Kumba to its shareholders, reflected the priorities for BHP's portfolio as well as opportunity for synergies, BHP stated in its release to Mining Weekly.

Shares for the South African platinum and iron-ore businesses would, under the proposed structure, continue to be JSE listed and run by established South African-based management teams.

Moreover, the Australia-headquartered BHP said that the proposed structure did not reflect a view of South Africa as an investment destination and was based on portfolio and commodity considerations.

The great importance it attaches to creating social value for society and communities was also emphasised.

"We believe this structure unlocks immediate value, delivering shareholders and stakeholders access to future growth opportunities and investment currently not available under the existing ownership structure," BHP added.

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Discovery and development are the only true drivers of value creation in the mining industry, Barrick president and CEO Dr Mark Bristow highlighted on Wednesday, when this standout gold and copper mining company once again declared a dividend in reporting its first quarter results that position the company well to meet its full year targets.

The year-on-year net earnings per share of the New York- and Toronto-listed company headed by South African-born Bristow increased by 143% for the quarter, while adjusted first-quarter net earnings per share grew by 36%. (Also watch attached Creamer Media video.)

Barrick's investment thesis is that its embedded ability to grow copper and gold production will amplify its profitability in a rising commodity market.

"Exploration is to a mining company what research and development Is to the pharmaceutical industry," Bristow reiterated amid gold production by Barrick ramping up steadily and a globally significant organic copper growth project on the way in Africa.

Foreseeing the emergence of the copper's critical importance to the greening of the global grid, Barrick made the expansion of its copper portfolio a strategic priority at the time of its merging five years ago with Bristow's highly successful Africa-linked Randgold Resources.

While global pursuit of renewable energy is boosting copper price, with the red metal rising by 15% in the first quarter of this year, unprecedented conflicts, plus economic uncertainty have driven the gold price up 15% last year, and by the same percentage so far this year, taking the precious metal to record highs and confirming once again its status as the ultimate safe haven asset.

Disappointing for Barrick and its peers, however, is that their share prices are lagging the gold price, pointing to more belief in investment in gold than in gold producers, even with change accelerating across the world, uncertainty becoming more permanent, and chaotic events a lot more common, Bristow noted in his first-quarter presentation covered by Mining Weekly.

Meanwhile, Barrick is continuing its search for tier one opportunities across the world's gold and copper regions, with the company's highly successful brownfields and greenfields exploration driving Barrick's unparalleled ability to replace its mined reserves and greenfields programnes are expanding opportunities around the globe.

Even in mature gold districts, Barrick is managing to advance pipelines of exciting greenfields targets.

Continued work on its orebody models continually spotlights significant, untested potential, demonstrating how the updating of geological models can be a very fruitful stimulator of reserve growth.

Ahead of consensus for the quarter, Barrick's attributable earnings before tax depreciation and amortisation margin rose by 5% to 41% and the operating cash flows remained strong at $760-million.

The quarter dividend was maintained at 10 c a share and a strong balance sheet is underpinning the company's organic growth projects, enabling a significant rising production profile to be projected for the next five years and beyond.

AFRICAN COPPER MINING REVIVAL

While the copper industry as a whole has traditionally suffered from under-investment, the search for new resources to boost production has now accelerated.

But the long lead times needed to turn discoveries into developed mines mean that supply is unable to meet the growing global demand, driven by the worldwide energy transition to stave off devastating climate change.

A thorough review of its global assets has turned Lumwana in the central African state of Zambia, for example, into a large copper project that, once again, has a lower cost organic rather than riskier acquisition foundation.

In a manner positive for all stakeholders, the Barrick team restructured and re-engineered the struggling Lumwana operation back to health and then embarked on a supe...

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Pending an improved price and cost environment, Glencore said in its first-quarter 2024 production report on Tuesday that its Rustenburg ferrochrome smelter in South Africa's North West province would remain idled.

The London- and Johannesburg-listed diversified mining and marketing company reported 26% lower attributable first quarter ferrochrome production of 297 000 t amid the European benchmark ferrochrome price for the second quarter of this year settling at $1.52/lb, 5.6% up on the first three months of 2024.

Ferrochrome is a prime ingredient of stainless steel and most of the ferrochrome produced in South Africa is consumed by China, which is the world's biggest producer of stainless steel.

Coal production of 26.6-million tonnes was broadly in line with the third quarter of last year, with Glencore CEO Gary Nagle reporting unchanged overall full-year production guidance from that presented at the beginning of this year. South African thermal coal production of four-million tonnes was in line with that of the first three months of last year, while Australian coal output was 3%-higher at 15.9-million tonnes.

First-quarter copper and zinc production was broadly in line with the first quarter of 2023, while nickel increased 14%, reflecting recovery from the Raglan strike impacts in the base period.

Lower year-on-year cobalt reflected the previously announced market-related production adjustments in the Democratic Republic of Congo (DRC).

Glencore expects full-year marketing-adjusted earnings before interest and taxes to be in the $3-billion to $3.5-billion range.

Glencore's own sourced copper production of 239 700 t was 2% above that of the first quarter of last year on a like-for-like basis.

The company's own sourced cobalt production of 6 600 t was 3 900 t lower than that of the corresponding period last year on mainly planned lower run-rates at Mutanda Mining in the current weak cobalt pricing environment and mill downtime at Kamoto Copper Company, which are both located in the DRC.

Overall zinc production of 205 600 t was in line, while own sourced zinc production was 6% higher at 10 600 t.

Own sourced nickel production was 14% higher at 23 800 t.

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Platinum group metals (PGM) mining and marketing company Implats on Tuesday reported higher production in a period characterised by robust demand but lacklustre PGM prices.

"Despite continued macroeconomic and geopolitical uncertainty, demand from our contractual customers remains robust, with elevated additional volumes requested via spot sales during the third quarter.

"PGM pricing remains lacklustre however, with notable volatility in both platinum and palladium reflecting the continued influence of investor activity," Implats CEO Nico Muller stated in a production report for the period ended March 31.

In the nine months ended March 31, the Johannesburg Stock Exchange-listed company recorded a 16% increase in total six-element (6E) group production volumes to 2.73-million ounces, with a 25% gain in managed volumes to 2.17-million ounces, a 4% increase in joint venture (JV) production to 410 000 oz, and a 31% decrease in third-party receipts to 149 000 oz.

Gross 6E refined and saleable production increased by 15% to 2.47-million ounces in the nine months and 6E sales volumes increased by 11% to 2.52-million ounces.

"Margins remain compressed and we are pursuing a set of actions to ensure that each of our operations is set up to more robustly deliver sustainable free cash flow through the PGM cycle.

"It's imperative that each of our assets operates within the appropriate volume, cost and capital parameters relative to the current pricing environment and the broader operating context," Muller stated in a release to Mining Weekly.

In late April, Implats embarked on a Section 189 (3) consultation process at its South African operations, which could affect 3 900 positions, equating to a 9% reduction in labour across the group's Impala Rustenburg, Impala Bafokeng and Marula operations, as well as at the corporate office, which is targeting a 30% reduction in head office costs.

"We delivered a commendable operational performance while navigating several challenges in the period under review. Investigations into the 27 November tragedy at 11 Shaft progressed and the production ramp-up at the operation remains on track.

"The rebuild of Impala Rustenburg's Number 5 furnace was completed and first matte has now been tapped. Notable operational performances were delivered by Zimplats and Mimosa, and at Impala Canada, where mining and milling was rebased," Muller added.

Implats remains on track to deliver within the guided group parameters for the full 2024 financial year.

MARCH QUARTER

In the three months to March 31, gross group 6E production increased by 13% to 827 000 oz.

Tonnes milled at managed operations increased by 16% to 6.48-million tonnes during the quarter.

The maiden inclusion of Impala Bafokeng and higher milled volumes at Zimplats offset lower throughput at Impala Rustenburg, Marula and Impala Canada.

The 6E milled grade of 3.64 g/t was stable and 6E production at managed operations increased by 17% to 657 000 oz.

The 6E production from the JVs at Mimosa and Two Rivers increased by 7% to 134 000 oz.

At Impala Refining Services, third-party 6E receipts of 37 000 oz were 23% lower than the prior comparable quarter as two contracts concluded in financial year 2023.

There were negligible production losses owing to load curtailment in South Africa in the quarter, although regional electricity generation and distribution challenges did pose headwinds to operating momentum in Zimbabwe.

Refined 6E production, which includes saleable ounces from Impala Canada and Impala Bafokeng, increased by 8% to 717 000 oz.

Implats finished the period with 410 000 6E ounces of excess inventory and 6E sales volumes of 824 000 oz, including saleable production from Impala Canada and Impala Bafokeng, increased by 10%, and were 3% lower on a like-for-like basis from those in the prior comparable quarter, with some destocking of refined inventory to offset the impact...

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South Africa views BHP Group's proposed bid for Anglo American as "normal market activity" and is following the process as it unfolds, President Cyril Ramaphosa's spokesperson said on Monday.

BHP is considering making an improved offer for Anglo American after its $39 billion initial proposal was rejected by the London-listed miner, a source told Reuters last week.

"It is still early days in terms of the proposal that BHP has submitted to Anglo," spokesperson Vincent Magwenya told a media briefing.

"We will follow like everybody else the process as it unfolds. We don't as a country go out of our way to block market activity," Magwenya added.

BHP has until May 22 to make a binding bid. A deal, if successful, would create the world's biggest miner of copper, a metal central to the clean energy shift.

A condition of the miner's proposal is that Anglo first distributes to shareholders its stakes in Anglo American Platinum (Amplats) and Kumba Iron Ore, both of which operate in South Africa.

Any exit by Anglo - founded in South Africa in 1917 - would be an economic blow to the country, whose miners have been cutting jobs and investment in response to weakening metals prices and a slew of local challenges exacerbated by the state port and freight rail company.

BHP's bid comes weeks before a general election in which voter anger about a stagnant economy and high unemployment could cost the long-governing African National Congress its majority.

Mining Weekly Editor Martin Creamer unpacks Copper 360’s shares rising more than 26% after it shipped concentrates from the Northern Cape; Orion Minerals shares rocketing to 58% on the Australian Stock Exchange; and the new digital system that can be used to buy and sell green hydrogen.

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South Africa's 30 years of democracy has changed the character of this country's mining industry profoundly, Minerals Council South Africa emphasised in a report that highlights the industry's significant advance since the dawning of democracy in 1994.

Importantly, South Africa's highly regarded mine employees earn among the most competitive wages in the major job sectors, with tens of thousands of employees now direct partners in mining companies through employee share ownership programmes and profit-sharing schemes.

Mining is providing employees with profound opportunities to improve their lives and livelihoods as well as those of their families.

Steadfastly, the South African mining sector has increased workforce diversity, improved health and safety, crucially, and provided far-reaching training and education to develop skilled employees in tandem with innovation and technology developments.

Prior to 1994, black mineworkers were prevented from securing managerial positions, women were barred by law from operational activities, and mineworker pay was kept low.

Thirty years on, South African mining has an unrelenting focus on transformation and inclusion as it strives to address its legacy.

"We have made enormous progress in the past three decades since 1994," Minerals Council South Africa CEO Mzila Mthenjane highlighted in a release to Mining Weekly.

While significant strides in the transformation of management, the inclusion of women in all aspects of mining, and improved health and safety are acknowledged, the need for ongoing effort is recognised.

"We have more to do and we're intent on establishing a modern, inclusive, and transformed industry, which will expand, adding more meaningful jobs, both within the sector and downstream value chains and increasing our significant contribution to South Africa's society and economy," Mthenjane stated.

OVERWHELMINGLY HISTORICALLY DISADVANTAGED

Against the backdrop of 83% of employees in the mining industry being historically disadvantaged South Africans (HDSA), the Mining Charter 2018 - which was negotiated between government, unions and the industry - set a target of HDSAs holding 60% of middle and senior management roles, which the industry has come close to reaching, with 57% of middle management and 58.4% of senior management now made up of HDSAs,

However, to reflect economically active population demographics, the industry has more work to do on its transformation journey to be more inclusive and reflective of the country's demographics.

While in 2003, shortly before the Mining Charter came into effect, women accounted for only 3% of the workforce, women made up 19% of mining employees in 2023, up from 17% in recent years.

Also in 2023, the mining industry was one of the few economic sectors to grow employment, adding 7 600 jobs, providing work to more than 477 000 people and accounting for 4.7% of formal employment.

Salaries grew by R12-billion to R186.5-billion and over the past 15 years, increases in wages across the mining sector have been above the consumer price index (CPI), reflecting both the real wage gains in the sector by employees and a consistent narrowing of the earnings gap between lower and higher income employees.

Communities are also beneficiaries of the community benefit schemes that invest in infrastructure and community needs, above and beyond the compliance requirements of the Social and Labour Plans.

Some R7-billion a year is spent on human resource development, which includes mandatory, operational and safety training as well as education and skills development.

SAFETY ADVANCE

Since 1994, the number of mining fatalities has fallen by 88% to 55 in 2023, with major breakthroughs in fall-of-ground-related fatalities.

Safety is the foremost concern of the Minerals Council and its members, with CEOs meeting frequently through a CEO Zero Harm Forum to share learnings and inte...