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Platinum group metals (PGMs) mining company Northam Platinum has begun construction of an 80 MW solar power farm at its Zondereinde operation in Limpopo - and the Johannesburg Stock Exchange-listed company will also begin constructing a large wind farm in the Western Cape at year-end.

The mining right of the Zondereinde mine, situated roughly 30 km south of the town of Thabazimbi, covers 9 257 ha, providing ample land for solar.

The 80 MW solar power farm will provide electricity to Zondereinde mine and metallurgical complex with power being supplied behind the Eskom meter. Development is in collaboration with an independent power producer, who will fund the construction and manage the installation.

In addition to the solar and wind power, Northam has 22 MW of on-demand power generation capacity from diesel generators.

Moreover, additional diesel capacity of 35 MW has been purchased and is being installed, with commissioning expected before the end of the third quarter.

This additional capacity will enable all operations to be unimpeded under level 4 Eskom load curtailment conditions, which is the equivalent of stage 6 loadshedding.

In response to Mining Weekly during a post-presentation media briefing, Northam Platinum CEO Paul Dunne cited speed and ease as the reason why the company was also installing diesel generation.

"We can quickly mitigate the risk of loadshedding events," Dunne said, whereas solar photovoltaic (PV) power and the wind power development take longer.

"Our very large wind farm in the Western Cape is very close to being sized," he added.

A slide displayed during Northam's interim results presentation for the six months to December 31, put expected upcoming wind power at 140 MW.

"Just out of interest, the carbon footprint of these modern diesel generators is lower than the carbon footprint of the average Eskom fleet.

"While it's a sub-optimal solution from a carbon point of view, the average carbon per kilowatt hour is lower than the average of the Eskom fleet, because these are modern, brand new generators, they're not old dirty diesels, if I can say it that way.

"Nevertheless, we need to do the renewables as well, and that's exactly what we're doing," said Dunne, who emphasised the low cost advantage of PV over all other options.

"No doubt about it, the price of glass has come down quite significantly to the point where economically it's quite attractive to put in PV.

"Wind, on the other hand, took a turn the other way. The large wind fans being largely priced in Euros has gone slightly against us. Nevertheless, we will do wind, but the best, as we see it at the moment, is PV," Dunne said.

Regarding the use of diesel to power mining, Dunne said, again in response to Mining Weekly, that the conversion of high kinetic diesel-driven LHDs to electric is not on at this stage.

"The technology is simply not sufficiently advanced when it comes to LHDs, but the slow movers, such as the drill rigs, are suitable for electrification, and we certainly are looking at that potential for the future," Dunne outlined.

MINIMISING MINING'S IMPACT

In highlighting that Northam produces metals critical for a cleaner and greener world, Northam CFO Alet Coetzee conceded that mining, by its nature, has an environmental impact.

"So, we've consistently looked to minimise the impact across our business," Coetzee noted during the presentation, covered by Mining Weekly.

Amid this, the Carbon Disclosure Project - a global climate change and water management disclosure platform that tracks the performance of more than 23 000 companies - has rated Northam above the global average.

Moreover, the De Berg Nature Reserve, which is part of Northam's conservancy trust initiative at the company's Booysendal PGMs mine that straddles the Limpopo-Mpumalanga border, has been designated as South Africa's 30th Ramsar wetlands of international importance.

Northam recycl...

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Platinum remains in fundamental deficit, Northam CEO Paul Dunne emphasised at the company's presentation on Friday, which reported a strong performance from all group operations in the six months to December 31.

"In mining terms, it's a slow-burning fuse. Ultimately, we will see a price response to this picture," said Dunne, as he displayed a visual diagram indicating the downward outlook for platinum supply. (Also watch attached Creamer Media video.)

He outlined how palladium-dominant mines are often combined with significant nickel production and the weakening nickel price is further eroding profitability.

Previously forecast increases in palladium supply were dependent on projects that are now unlikely to be pursued and flat-to-waning supply is expected over the medium term.

Rhodium is expected to follow the depletion profile of South Africa's upper group two (UG2) mines, leading potentially to significant under supply of what is a critical metal that is poised to return to deficit "quite quickly".

The current price environment may last for some time and this combined with general higher inflation will pressurise the sector and it is clear that the current market conditions cannot sustain supply, Dunne said as he displayed a margin chart during the presentation covered by Mining Weekly.

"Not all orebodies are created equal and, in this market, we would suggest that South African UG2, with its higher loading of platinum, iridium, ruthenium, rhodium and chrome, is strategically well-positioned for a future-facing market.

"At Northam, we have a UG2-dominat resource base, which is very well capitalised, and this places us in a strong position.

"Once again, safe production, efficient project execution, efficient mining, and a very firm grip on the cheque book, will ensure that we mine at the best possible cost," said the CEO of the Johannesburg Stock Exchange-listed Northam, which declared R1-a-share interim dividend on the back of its cash and cash equivalents of R11.8-billion and available undrawn banking facilities of R11-billion collectively amounting to R22.8-billion.

At the outset, Dunne drew attention to the picture of iridium chloride that featured in its presentation. Iridium chloride is critical to the production of green hydrogen.

"Iridium is one of the rarest elements on the planet and because of the many colours of its various compounds, was named after Iris, the Greek goddess of the rainbow.

"Iridium, together with ruthenium, were historically considered the minor metals but their importance is growing and together these contributed over 11% of Northam's R15-billion revenue for this six-month reporting period.

NEW SHAFT

The equipping of the new Zondereinde 3 Shaft has been completed to 500 m. Full equipping at 1 400 m and commissioning of the shaft, along with the 3A ventilation shaft, is scheduled for May 2025, at which time a combination of greatly reduced travel time for employees and improved hydropower and backfill pressure on the face, will significantly derisk mining.

"The pace at which we've been able to progress the 3 Shaft project we believe is impressive, given that we only stated piloting in September 2029 and we expect commissioning four-and-a-half-years later than that at a fraction of the cost of a conventionally developed shaft.

"The addition of 3 Shaft will allow us to mine this exceptional orebody well into the future," Dunne highlighted.

Cost control measures in the period kept the increase in group unit cash cost per equivalent refined four element (4E) ounce at 6.7% amid a 10.6% increase in equivalent refined 4E ounce metal from its own operations to 434 977 oz in the six-month period, when production reached record levels.

Mining Weekly Editor Martin Creamer the R7.9-billion life-of-mine extension project at the Mponeng gold mine; the recent delivery of Anglo American’s tenth emission-cutting ship; and the two huge wind and sun energy projects that were given the go-ahead in South Africa this week.

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Platinum group metals (PGM) mining, refining, and marketing company Implats, which reported solid production in a low-price environment on Thursday, is ironically still experiencing strong demand for all major PGMs with the exception of ruthenium.

The group generated half-year earnings before interest tax depreciation and amortisation of R8.4-billion, headline earnings of R3.3-billion or 365 cents per share, and recorded a free cash outflow of R4.8-billion, after funding capital expenditure of R6.8-billion.

"On the demand side, if we were to look at the current requirements from customers, we still see very good demand in terms of all the major metals except for ruthenium," Implats group executive: refining and marketing Sifiso Sibiya said In response to questions from Mining Weekly during a media briefing.

"In terms of what's happening with the prices and what's happening in the market, the overall volume of above ground stocks and the destocking by several original equipment manufacturers (OEMs) and the Chinese fibreglass manufacture, has affected prices.

"If we look at our market development, on the development front, on the AP Venture side, we've seen quite a good uptake from companies that are focusing on the hydrogen economy.

"If we look at the World PIatinum Investment Council in terms of investment, we've made a quite good progress in terms of the net ounces that have been taken by our partners.

"On the jewellery side, Chinese platinum jewellery remains low, as it has been over the last couple of years, and we expect an uptick this year.

"But if we look at the other regions, for example, Japan, India and the US, there's quite a healthy demand on the jewellery front.

"So, demand wise, things are very good but prices are not reflecting what we see on the floor," said Sibiya.

On prices not reflecting the good demand, Implats group executive: corporate relations Johan Theron contended that in his view the demand is being reflected in the price. "I think it does. If we look back two, three years, certainly that deficit, fundamental market balance was reflected in price.

"It's just important to understand that you've got two driving forces, you've got the physical supply-demand market, but you also have sentiment - sentiment on the global economy growth rates, investments, where the global growth is heading, and then people are also able to take positions on the paper markets - long, short positions, speculative marketing.

"So, when you see prices turn down from the record highs, then immediately people that are sitting on too much metal or have excess metal start selling that into a lower price to try and lock in as much value as they can, and, of course, they can protect themselves on the futures market by going short or negative, depending on their position.

"What we've seen over the last year is massive increases in short positioning, specifically in palladium, and that overhang of a negative sentiment on the market is what is primarily driving prices to what we are experiencing today," Theron explained.

DISCOUNTED MATERIAL

Added to that, specifically regarding palladium, over the last 12 months heavy discounted material has been seen coming from Russia, which created two market prices specifically in the Chinese and in the US markets.

"All those have weighed in heavily on pricing, with prices did not follow fundamentals," Sibiya added.

"Two things potentially can reverse it. If we start seeing the interest rate cycle moderating, like we all expect and global growth in economy, prospects improve, then sentiment will improve and there will be reaction," said Theron.

"Equally with the cuts and that on the supply side that we all are affecting, if indeed there is a healthy underlying market, then buyers are going to find it difficult to source metal, and then those short positions on the future markets are going to be squeezed out and then y...

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A phased reduction in group output owing to a probable decline in production from Impala Canada and Mimosa in Zimbabwe is likely from platinum group metals (PGMs) mining and marketing company Implats, which on Thursday reported lower group profitability, despite disciplined cost control and solid production across several operations.

The odds-on decline in production amounts to roughly 8% of the production guidance of the 2024 financial year to June 30. (Also watch attached Creamer Media video.)

Group six-element, or 6E, refined and saleable production is expected to be between 3.30-million ounces and 3.45-million ounces for the 50-year-old, 67 900-employee Implats, which has eight operations in three countries.

On top of that, the Johannesburg Stock Exchange-listed Implats is looking at previously planned expansion of 210 000 oz potentially not happening.

"Put together, it equates to roughly 14% of our internally planned production," Implats CEO Nico Muller said during an in-person and virtual presentation of results covered by Mining Weekly.

The group generated earnings before interest, taxes, depreciation and amortisation of R8.4-billion, headline earnings of R3.3-billion or 365c a share, and recorded a free cash outflow of R4.8-billion, after funding capital expenditure (capex) of R6.8-billion.

Guidance set in September remains the same other than the capex guidance, which has been reduced to between R11-billion and R12-billion from R12.5-billion to R13.5-billion.

Implats is pulling in its horns amid the price determination of PGMs not correlating to market fundamentals but being influenced by the marginal buyer that buys metal in a market where there is an abundant amount of metal available on surface.

In the bargain, too, is the global economy's super inflation and interest rate pressure on reserve banks and central banks, factors that have lowered the global economic growth rate.

"Even now it is evident if you look at the Purchasing Managers' Index, particularly for manufacturing, in most of the economies that use our products, you will see that the PMI is just over 50, which indicates that there is going to be contraction in the growth rate of that particular economy and at the moment it is just hovering above 50, so it indicates a fairly low expectation of economic growth in those jurisdictions.

"When you have this very bearish sentiment on the global economic growth rate, it tends to have a negative impact on commodities.

"It's not only the PGMs market but we've seen a downward trend in battery metals prices as well," said Muller.

On top of that, there are elections in 64 countries, conflicts in Ukraine, Palestine and potentially Taiwan and all of these are creating uncertainty.

"Therefore, if you are a manufacturer and you consume our products, there's been a trend of destocking. We saw it in the fibreglass industry and autos.

"Even on the back of fairly positive automotive sales last year, we have not seen an immediate price response.

"There is general consensus across the market that we cannot expect a rapid price recovery any time soon given the fact that it's tied to what's happening across the globe with macro factors," Muller said.

The Implats basket price declined by 32% mainly on palladium's 41% fall as well as the drop in the price of rhodium, despite a really solid fundamental operating performance across all of the group's operations, bar one.

"But notwithstanding that performance, and I'm talking of production of ounces as well as cost containment, we're going to see that our revenue declined by 25% and we'll see the downward trend in cash flow.

"This is necessitating a strong strategic response from the company and it cannot just involve marginal improvements in productivity and cost optimisation at the operations," he said.

The tide has turned and while fundamental demand for primary products remains robust, current pri...

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Green electrons are being generated as planned at Harmony Gold's 30 MW first phase of renewable energy generation, which is now fully integrated into the mining company's Tshepong South and North operations.

This was made clear by Harmony FD Boipelo Lekubo, who spoke to Mining Weekly in a Zoom interview on Wednesday, following the Johannesburg- and New York-listed company posting a superb set of half-year financials and declaring a record interim dividend. (Also watch attached Creamer Media video.)

"Phase 2 construction we expect to commence in FY25. We have the first phase of that which is 100 MW and which utilises the proceeds from our green loan.

"That will be constructed near Moab Khotsong and the second phase of that will be an additional 37 MW through a power purchase agreement.

"Phase 1 will reduce our Free State peak demand by 20% and group peak day demand by approximately 6%. So, that's about 30 MW out of 500 MW and Phase 1 and 2 together will reduce group peak demand by about 30%. So call that 167 MW out of the 500 MW.

"Repayment on the Phase 2A that we're building on balance sheet is fairly quick. We're talking around four years, so we'll definitely start to see the benefit of self-generation on the bottom line," Lekubo added.

Harmony's decarbonisation strategy is guiding operations to net-zero greenhouse-gas emissions by 2045 along a transition pathway that includes energy efficiency, portfolio re-engineering, electricity mix, improvement adaptation and decarbonisation of the transportation sector.

In the six months to December 31, record operating free cash flow rose 265% to R7 112-million driven by operational prowess and 11% higher underground recovered grades to 6.29 g/t from 5.68 g/t.

Full-year production guidance for the group remains unchanged at between 1 380 000 oz to 1 480 000 oz of gold. Full-year cost guidance also remains unchanged at less than R975 000/kg. Underground grade guidance remains unchanged at 5.60 g/t to 5.75 g/t.

Mining Weekly: There are so many highly positive aspects about Harmony's latest presentation. But what, in your view, should be the biggest overall takeaway from these stunning results?

Lekubo: The overall message of the exceptional set of results is that we've achieved what we said we would. If you look at what our strategic pillars are, we're recording improved safety performance, we've increased our underground recovered grades which have lifted margins. We've added quality ounces through Moab Khotsong and Mponeng. Consistent with our policy and growth strategy, we've declared a record interim dividend. Then from a balance sheet perspective, net debt to Ebitda is at zero and we were at a net cash position at the end of the period.

Some of the percentage increases of free cash flow were sky-high. What, in your view, is the one that deserves the most focus?

The operating free cash flows were largely driven by the higher recovered grades and, certainly, the higher average gold price that we received. The higher grade Moab Khotsong and Mponeng operations contributed around 45% to group operating cash flows and Hidden Valley on the other hand 25% of operating free cash flow. So, our new acquisitions and what we have in Hidden Valley were the main drivers behind that performance.

Is your gold-price hedging policy bearing fruit?

It's definitely bearing fruit. As per policy, we hedge to lock in margins. We do not speculate with the hedge book. As you all know, commodity prices are cyclical and we believe that, if we're consistent with our methodology, it will deliver the desired outcome. Eighty per cent of our production is unhedged, which offers good upside with increases in commodity prices. In addition, our hedge is done over shorter periods on a rolling basis, so it's working quite effectively as a financial risk management tool and we believe that we're well protected by the hedge should gold prices...

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The board of mining company Harmony Gold has approved the commencement of a R7.9-billion life-of-mine extension project at the rich Mponeng gold mine in the West Wits region of South Africa's Gauteng province.

Mine life will be extended from seven years to 20 years, ensuring that Mponeng remains a top-performing asset until at least 2044.

"Mponeng is an incredible mine with an existing world-class infrastructure," Harmony CEO Peter Steenkamp enthused during Wednesday's presentation of superb half-year financial results accompanied by the declaration of a record interim dividend underpinned by 226% higher headline earnings. (Also watch attached Creamer Media video.)

After Mponeng was acquired from AngloGold Ashanti in 2020, Harmony began a comprehensive update of the feasibility study to determine if it could extend Mponeng's life of mine.

Following two years of work, Harmony now has an optimised mine design, which ensures that it can extend the life of mine safely and profitably.

The Mponeng project will be self-funded through internal cash flows.

How this will be done was outlined to Mining Weekly by Harmony FD Boipelo Lekubo: "We estimate that around R7.9-billion in project capital will be required over the life of the project. In this half-year reporting period alone, Mponeng generated R1.9-billion rand in operating free cash flow and we estimate that Mponeng will be able to fund the extension out of operating cash flow.

"That will be done at an estimated rate of R1-billion worth of capital, or call it $50 million, a year, which makes this project affordable," Lekubo added.

The Mponeng project meets all investment criteria of the Johannesburg- and New York-listed company is also making progress with the execution of the Moab Khotsong gold mine extension, the Mine Waste Solutions tailings extension, and the Hidden Valley extension in Papua New Guinea.

Mponeng accesses two excellent orebodies, namely the Carbon Leader and the Ventersdorp Contact Reef, which both have exceptional grades of more than 9 g/t.

The project will convert more than three million ounces of gold onto mineral reserves, delivering at an average steady-state production of 260 000 oz or 8 t of gold a year.

Once the project is complete, Harmony is forecasting a cash contribution of about R2.5-billion a year at a real gold price of R1.1-million per kilogram.

Because of the high grade, the project will have an attractive real al-in sustaining cost of R768 000/kg or $1 290/oz, based on current assumptions and estimations.

With a substantial mineral resource of 24-million ounces, this is another example of how Harmony continues to extend its production profile by converting mineral resources to mineral reserves.

"We're proud that, in our hands, Mponeng will reach its true potential and deliver a significant positive social impact. This embodies how Harmony creates long-term value for its shareholders and stakeholders," added Steenkamp.

Harmony, which now has a copper footprint and uranium and silver by-products, has built a foundation that will facilitate an ongoing upward trajectory.

While strong commodity prices have provided Harmony with good tailwinds, improved safety, good mining discipline and operational flexibility with a stable and a predictable cost structure, remain fundamental to creating the long-term value expected by our stakeholders.

The company is intent on continuing to use its skills and strong orebody understanding to extract further value.

In the six months to December 31, record operating free cash flow rose 265% to R7 112 million driven by operational prowess and 11% higher underground recovered grades to 6.29g/t from 5.68g/t.

Full-year production guidance for the group remains unchanged at between 1 380 000 oz f gold to 1 480 000 oz. Full-year cost guidance also remains unchanged at less than R975 000/kg. Underground grade guidance remains unchanged at 5.6...

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The contribution of diversified mining company Anglo American to a cleaner, greener maritime industry is highlighted by this week's delivery of the last of ten emission-cutting ships.

The maiden voyage of the Ubuntu Liberty vessel from China to South Africa will mark the successful on-time transfer of all ten ships built over the last three years by Shanghai Waigaoqiao Shipbuilding, located along the mouth of China's Yangtze river.

The final vessel of the Ubuntu fleet is on its way to Saldanha Bay to collect iron-ore from South Africa's high-quality-producing Kumba operations in the Northern Cape, a repeat of what the first Ubuntu Harmony vessel did a year ago.

The fleet emits 35% less carbon dioxide into the air than ships fuelled by conventional marine oil fuel.

Customers are showing keen interest in accessing Ubuntu freight, which Anglo marketing business CEO Matt Walker says in a Johannesburg Stock Exchange announcement demonstrates growing recognition of the value of sustainable shipping as part of a more sustainable supply chain that end consumers increasingly expect.

Shanghai Waigaoqiao has delivered the fleet on time, on budget and with a zero-safety-incident record.

The Ubuntu fleet is a key component of Anglo's ambition to achieve carbon-neutrality for its controlled ocean freight by 2040, aligning with Anglo's sustainable mining plan commitment to carbon neutral operations across its mines by the same year. The LNG dual-fuelled vessels offer an estimated 35% reduction in emissions compared to ships fuelled by conventional marine oil fuel and are the most efficient vessels of their type today.

Since the first liquefied natural gas (LNG) dual-fuelled new-build ship was loaded, more than 6.4-million tonnes of iron-ore and steelmaking coal across global shipping routes.

Additionally, the fleet has conducted 30-plus refuelling stops for LNG in locations such as Singapore and Malaysia, amid the shipping industry being responsible for some 3% of the world's greenhouse gas emissions.

GREEN HYDROGEN

As reported by Mining Weekly last year, Anglo has established a framework of initiatives for the decarbonisation of its maritime activities, including energy-saving devices fitted to existing vessels, the use of voyage optimisation software, and a focus on exploring, trialling and adopting alternative, sustainable fuel options, including sustainable biofuel, green methanol and ammonia, and - further down the line - green hydrogen.

The use of LNG is also expected to lead to a reduction of nitrogen oxides and particulate matter from vessel exhausts, while new technology also eliminates the release of unburnt methane.

The dual-fuelled Capesize+ fleet is part of an ambition to achieve carbon neutrality for controlled ocean freight by 2040, with an interim target to reduce emissions from these activities by 30% by 2030. This is all part of a wider ambition to halve Scope 3 emissions by 2040.

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Toronto-listed Euro Sun Mining, headed by South African CEO Grant Sboros, is advancing a development-stage gold and copper project in Romania, a country which is reportedly shedding its rigidly bureaucratic past with considerable aplomb.

Unlocking the full potential of the Rovina Valley project, located in west-central Romania, is what Euro Sun is setting out to do, Sboros made clear in a Zoom interview with Mining Weekly. (Also watch attached Creamer Media video.)

In agreement with government, mining production will be more copper centred amid the Critical Raw Materials Act passed by the European Union in December last year.

"This is our ticket to ride," was Sboros' comment on the new critical minerals laws.

Meanwhile, he's going all out to make Euro Sun's 100%-owned Rovina Valley project as green as can be.

The planned mining process excludes cyanide and wet tailings and the people of the region are reportedly dead keen that he builds on Romania's 2000-year-old mining legacy.

"I was there last week, and every single person who you engage, from waiter to mayor, wants the project to happen as quickly as possible," extraction communications consultant Richard Dolamore stated in a preliminary note to Mining Weekly.

Notwithstanding this enthusiasm, Euro Sun has full compliance at the very top of its agenda and respects everything around what it describes as a beautiful relatively uninhabited slightly wooded area with steep hills.

The project will be the biggest in the last 35 years and government will earn 45% of the bottom line.

Since beginning his role as CEO in January last year, Sboros, who cut his teeth in mining in South Africa, has been engaging intensively with the government.

The environmental impact assessment stage is now a hair's breadth away and the mine will take two years to build, with first production expected to take place in mid-July 2026.

The plan is to exploit the porphyry-style asset as an opencast operation over a 30-year to 35-year stretch before probably heading underground.

"We're moving into a place that was historically mined just 5 km away from our current position, in the mountains of Rovina, very steep mining and not the biggest grades on the planet, but overall enough to produce ten-million ounces, with a view of a greater resource that we'll prove up on the rest of our licences adjacent to our properties. We 're probably looking to double up on that," Sboros forecast

Some 40 km away, Gabriel Resources is intent on getting Roșia Montană up and running, following a court case that spanned a dozen years and which is poised to net Gabriel considerable compensation.

"We've definitely seen a change from what was a bad perception of Romania. I've spent a lot of time on the ground and with all the stakeholders and we've seen a shift from the way the previous government were trying to manage things, compared with the new government now in place, which wants to exploit the resources of the country," Sboros highlighted.

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The lifespan of South Africa's rare earths project in Limpopo has received a distinctly possible lifespan boost to more than 16 years following an updated bulk density calculation, which has enlarged the likely Phalaborwa resource tonnage to 35.1-million tonnes, an increase of 16%.

"The improvement in the resource tonnage at Phalaborwa is extremely positive," London Stock-Exchange-listed Rainbow Rare Earths CEO George Bennett stated in a release to Mining Weekly on Monday, February 26.

The Phalaborwa Rare Earths Project involves the recovery of rare earths from gypsum and waste dumps and is poised to be part of the world's necessary journey to net zero, which will require an unprecedented increase rare earth supply.

What is also important to note about the project is that its resources host all four of the permanent magnet rare earths required for the green energy transition.

Moreover, the expected low cost of recovery of these sought-after rare earths is destined to be accompanied by the creation of much-improved environmental conditions, brought about by the removal of the waste dumps.

The two phosphogypsum stockpiles that make up the project's resource have been re-evaluated for density at depth. This has been done by Tetra Tec-group gypsum specialist Ardaman, which revised the drilling technique based on its worldwide experience that gypsum stacks increase at depth.

As a result, the expected resource tonnage has been increased by 4,7-million tonnes.

South Africa's inspection, testing, verification and certification company SGS will now assay for grade drill campaign samples to enable an updated joint ore reserve committee (JORC) mineral resource estimate to be provided. Accompanying this will be an upgrading of the inferred resources into the measured and indicated categories.

"Phalaborwa has the potential to become one of the most environmentally friendly and lowest-cost rare earths projects anywhere in the world," TechMet chairperson and CEO Brian Menell stated in the November 8 media release to Engineering News & Mining Weekly.

Menell, a member of South Africa's illustrious Menell family of Anglovaal mining and industrial renown, highlighted Rainbow's proprietary separation technology as providing Phalaborwa with a significant opportunity to fast-track production of the four most economically important rare-earth elements, which the company described as being essential for future supply chains for electric vehicles, wind turbines and other products vital to the energy transition and the global economy.

The project is expected to be cash-generative across the rare-earths pricing cycle.

TechMet, in which the US International Development Finance Corporation is a shareholder, has been granted an option to invest $50-million equity funding in the capital cost and take a direct ownership stake of 15% to 33% at project level, underpinning the $151.5-million to $333.3-million equity valuation of the project.

"While we await the assay results and the JORC compliant resource classification upgrade, it's clear that the growth in tonnages will lead to an increase in the life of the project by over two years in due course," added Bennett.