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Mining Weekly Editor Martin Creamer provides updates on the new rail corridor agreement between RBCT and Transnet; Anglo American's partnership with large Chinese recycler GEM for a research and development project; and this year’s Investing in African Mining Indaba, which will focus on new prospects under the disruption theme.

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Diversified miner Glencore has reported lower volumes across its key commodities for the 2023 financial year, but notes that these were all nonetheless still within the guided ranges.

The company's own-mined production for the year totalled 1.01-million tonnes of copper, reflecting a 5% year-on-year decline; 41 300 t of cobalt, marking a 6% year-on-year decrease; 918 500 t of zinc, which was 2% lower year-on-year; and 182 700 t of lead, reflecting a 5% year-on-year decrease.

Nickel production of 97 600 t was also 9% lower year-on-year; silver output of 20-million ounces 16% lower year-on-year; and ferrochrome production of 1.1-million tonnes 11% lower.

The company recorded a 13% increase in gold production from 661 000 oz in the 2022 financial year to 747 000 oz in the reporting year, as well as a 3% increase in coal output from 110-million tonnes in the prior year to 113-million tonnes in the reporting year.

Glencore CEO Gary Nagle attributes the lower copper and zinc volumes, including managed production volumes, to the disposals of the Cobar copper mine, in Australia, and various South American zinc operations in the year under review.

He adds that cobalt production was lower owing to feed plan adjustments at the Mutanda operation, in the Democratic Republic of Congo, in the context of an oversupplied market, while nickel volumes were impacted on by higher third-party production compared with own sourced production, as well as the planned shutdown of the Murrin Murrin operation, in Australia, for routine maintenance.

The company also had planned additional smelter downtime in the ferrochrome segment, during the three-month high-electricity demand winter season in South Africa when power prices are elevated.

As a result of the lower 2023 production, the group has adjusted its production guidance for this year to between 950 000 t and 1.01-million tonnes of copper, between 35 000 t and 40 000 t of cobalt, between 900 000 t and 950 000 t of zinc, between 80 000 t and 90 000 t of nickel, between 1.1-million and 1.2-million tonnes of ferrochrome and between 105-million and 115-million tonnes of coal.

Notably, the guidance does not take into account contributors from the Elk Valley Resources steelmaking coal assets, in Canada, which Glencore is in the process of acquiring a 77% interest in.

Moreover, Glencore expects to report earnings before interest and taxes of about $3.5-billion for the 2023 financial year.

Glencore will publish its full results for the year on February 21.

SOLAR PLANT

Meanwhile, Glencore has started construction on a 25 MW solar photovoltaic power plant at its Rhovan-managed ferroalloys mining and processing facility near Brits, in South Africa's North West province.

Once completed, the plant will produce about 30% of the operations' yearly energy demand, which should save 48 000 t/y in carbon emissions at the site.

Glencore Ferroalloys CEO Japie Fullard explains that, not only does the mine produce a range of vanadium products that can be used in applications to support a low-carbon economy, but by installing a solar plant that will supply renewable energy to the operation, Glencore is reducing the mine's overall emissions footprint.

The company plans to work alongside the Bakwena Ba-Magopa community in developing the plant, including by involving local small- and medium-sized enterprises in the project.

Commissioning of the solar plant is planned for later this year.

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Member organisation the World Gold Council's latest 'Gold Demand Trends' report, released on January 31, indicates that yearly gold demand - excluding over the counter (OTC) market demand - fell to 4 448 t in 2023, down just 5% from what the council says was a notably strong 2022.

When factoring in demand from the OTC markets and other sources, total demand climbed to a new yearly record at 4 899 t.

Investment from this more "opaque" source of demand supported last year's highest yearly average gold price on record, the council avers.

The central bank buying streak continued on from 2022 at a fast rate. Demand reached 1 037 t last year, making it the second highest on record, down just 45 t on the previous year.

In contrast to robust OTC and central bank demand, exchange-traded funds (ETF) outflows continued last year, losing 244 t in a third consecutive year of decline, with outflows in Europe dominating the picture.

In terms of bar and coin investment, demand was indicated to be subdued, down 3% as strength in some markets worked to offset weakness elsewhere.

European demand continued to plummet, down 59% year-on-year.

This decline was offset by a strong post-Covid-19 recovery in China, where yearly demand was up 28% to 280 t; combined with notable increases in India of 185 t, Turkey of 160 t and the US of 113 t.

The council highlights that the global jewellery market remained resilient amid record-high prices as demand inched up by 3 t year-on-year.

China was pivotal, recording a 17% increase in demand for gold, as it recovered from Covid-19 lockdowns, offsetting a 9% decrease in India.

Mine production was relatively flat last year, up 1% to 3 644 t, although this total fell just short of the 3 656 t record set in 2018.

After a strong first half, the council had expected the full 2023 to mark a new high for the global gold mining industry, but growth rates seen in the first two quarters were not replicated in the second half of the year.

Higher yearly output was, however, achieved in South Africa (+14 t or 15% year-on-year), where production recovered following protracted industrial action in 2022.

Recycling increased by 9%, which was lower than expected given the high gold price and drove total supply up 3%, the council points out.

"Unwavering demand from central banks has been supportive of gold demand again this year and helped offset weakness in other areas of the market, keeping 2023 demand well above the ten-year moving average.

"In addition to monetary policy, geopolitical uncertainty is often a key driver of gold demand and in 2024 we expect this to have a pronounced impact on the market. Ongoing conflicts, trade tensions and over 60 elections taking place around the world, are likely to encourage investors to turn to gold for its proven track-record as a safe haven asset," says WGC senior markets analyst Louise Street.

"We know that central banks often cite gold's performance in times of crisis as a reason to buy, which suggests demand from this sector will stay high this year and may help to offset a slowdown in consumer demand due to elevated gold prices and slowing economic growth," she adds.

OUTLOOK

This year, the council expects total investment (including OTC) will be higher, but, akin to the market behaviour last year, much of this demand could come from the less visible OTC segment - which adds a level of uncertainty.

Early continued weakness in global gold ETFs is likely to experience a turnaround by mid-year, aided by anticipated rate cuts and continued geopolitical risk, the council points out.

European ETF outflows are likely to continue until longer-maturity interest rates are on a firm path lower, but here too, regional politics, alongside geopolitics, could have an impact.

Bar and coin demand is likely to stay healthy and in line with the ten-year average, as Chinese and Indian demand strength offsets European weaknes...

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Kibali, the largest gold mine in Africa, is now also one of Africa's greenest and most impressively automated operations, which continues to stimulate local economic development and even provides ongoing funding for the reintroduction of white rhinos into a Unesco world heritage site in the Democratic Republic of Congo (DRC).

On the clean energy front, most of the electricity that drives Kibali is already supplied by its three hydropower stations and once Kibali's new 16 MW solar power plant and additional battery energy storage infrastructure are commissioned, its overall renewable electricity supply is set to increase from 81% to 85%.

Moreover, the additional battery energy storage infrastructure is designed to back up the hydropower supply during the region's dry season.

For six months of the year, its electricity demand will be met entirely by renewable energy.

"Bearing in mind that Kibali is also a leader in automation, the mine is a real role model for mining in Africa," Barrick president and chief executive Dr Mark Bristow has highlighted at a media briefing in the Democratic Republic of Congo (DRC).

Built in the remote north-east of the DRC in partnership government, Kibali has opened up a new mining frontier and, in the process, it has also advanced the development of a flourishing local economy.

Total in-country investment to date in the form of royalties, taxes, dividends and payments to local suppliers amounts to $4.7-billion and the mine's community development fund contributes 0.3% of revenue to the implementation of community development projects, with 44 new projects being launched last year.

The mine's new Cahier des Charges scheme has also launched 11 projects, with seven nearing completion. Kibali funding of these over the last five years has amounted to $8.9-million.

Regulations introduced in 2018 require mines to set out a clear and financially-provisioned five-year plan for local social development - a Cahier de Charge - in consultation with local communities and stakeholders.

"We're also continuing our support for biodiversity with plans underway to introduce additional white rhinos to the Garamba National Park," Bristow enthused in a release to Mining Weekly.

Last year, 16 white rhinos were brought to Garamba with a further 60 scheduled for delivery over the next three years. An environment has been created where white rhinos can exist safely in the park, which is supported by professional staff and qualified veterinarians who regularly monitor their acclimatisation.

Garamba has more 500 full-time staff and hundreds of additional employees on contract, including law enforcement teams and dedicated community personnel.

The park supports more than 9 000 community members in entrepreneurial enterprises such as beekeeping, fish and poultry farming, as well as four hospitals with a capacity for 12 000 patients.

Operationally, Kibali achieved its production guidance for 2023, and set a new annual throughput record in the process. Gold production in 2023 was 763 000 oz.

Also on track to again replace the reserves mined during the year, Kibali is seen as a standout example of what can be achieved through commitment to partnering with host countries and local communities.

Barrick has expressed strong intent to continue to work with government to grow its investments and development projects.

The Barrick-operated mine is owned by Kibali Goldmines SA, a joint venture company owned 45% by Barrick, 45% by AngloGold Ashanti, and 10% by Société Miniére de Kilo-Moto.

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Security incidents that disrupt trains transporting coal to South Africa's Richards Bay Coal Terminal (RBCT) for export to the world are in definite decline and that has certainly helped to improve performance, acting Transnet Freight Rail CE Russell Baatjies emphasised to Mining Weekly during question time at RBCT's latest media briefing.

In addition, a gradual changeout of overhead catenary copper cable that supplies electricity to locomotives using the coal line with the aluminium conductor steel reinforced (ACSR) cable alternative is being advanced.

"We replace especially hot-spot areas as fast as we can," said Baatjies.

Copper cables are routinely targeted because of copper's monetary value on the scrap metal market, with part changeout plan carried out during the annual maintenance shutdowns.

"We do it bit by bit because we cannot change it all at once," Transnet Freight Rail executive manager Moloko Matjekane pointed out.

While the ACSR cable does not have the same level of conductivity as copper, it is sufficient to keep the rail network operating and the plan is to eventually replace the cables across the entire network.

There is, however, still insufficient awareness among thieves that the new cables are no longer copper intensive and visual differentiation and signposted highlighting are likely going forward.

In addition, relay rooms and substations vulnerable to thieving are being shielded by new technology that ensures the early detection of predatory behaviour and quicker protective response.

"We've made quite a few arrests and we want to build on our intelligence side to make sure that we get better in terms of the convictions that we have.

"It's something that we've identified that we need to improve upon on our side, but certainly the teams that we have on the ground, make arrests in the instances where we do find the culprits busy," Baatjies disclosed.

Discussions to advance still further the security relationship that RBCT has had in place with Transnet for 24 months are under way amid the mutual cooperation agreement signed in November of last year already being seen as a game-changer.

Likely to be piloted soon is the monitoring capability that rail line fibre-optic cabling can do to quickly detect any tampering along the line and to dispatch response teams to investigate.

Various regulatory bodies are studying the crime-related impact on the coal line and several processes emerging from this study are poised to assist in providing intelligence.

"One of the big focus areas coming out of that process has been the judicial system, and how we can get to a great level of prosecution of these criminals so that they are not released," RBCT CEO Alan Waller told the media briefing during question time.

"That has made a difference in terms of the number of prosecutions that have been taking place and the number of people arrested.

"Part of the intelligence solution will come through that process but also, in terms of Transnet's individual contractual relationships with their service providers, they have an intelligence element within those contracts as well.

"We know from our interactions. We meet every Tuesday with the Transnet security team, together with the service providers, and information is provided in terms of what's happening at scrap metal dealerships etc., around the country.

"So, there's a big focus on that side of the business, but it's also coming from a strategic point of view," Waller added.

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South Africa-founded and Johannesburg- and London-listed Anglo American on Friday announced the launch of a research and development project in collaboration with one of China's largest battery and battery material recyclers.

The purpose of the project with Shenzhen-based GEM is to explore new and more efficient technologies for the use of existing and alternative raw materials deployed in batteries for battery electric vehicles.

The project will focus on jointly developing metal dissolving technologies, using metals such as nickel, cobalt, and manganese, to facilitate a more efficient use of battery materials, from either mined or recycled routes, with the intention of improving existing processes as well as exploring the use of new materials not currently employed in the battery value chain.

GEM is a battery material producer with pioneering technology and capability to recycle batteries through the extraction of the minerals they contain.

"This collaboration marks an important step for us, as we seek to drive synergies with industry leaders such as Anglo American that participate in the critical raw materials value chain and share our commitment to advancing technological development to shape a more sustainable future for the transport sector," GEM founder and chairperson Professor Xu Kaihua stated in a release to Mining Weekly.

GEM has had more than two decades of experience in recycling batteries and electronics and has invested heavily in understanding the processes needed to recover raw materials essential for the energy transition.

Anglo's diversified portfolio includes a range of products for the decarbonisation of transport, a sector which it estimates accounts for more than 15% of global emissions.

"We are collaborating with leaders in the sector to explore new technologies that build on the physical qualities of our portfolio of products to help tackle some of the key challenges facing the industry and contribute to the sustainable scale-up of electric vehicle travel," Anglo base metals and marketing executive head Paul Ward stated.

"Our work in this space is part of our commitment to supply our customers with products tailored to their specific needs and that capitalise on the opportunities offered by ongoing technological innovation," Ward added.

China is calculated to be the world's largest electric vehicle market, with an expected eight million vehicles sold last year.

Already a key partner to the automotive industry, Anglo's platinum group metals (PGMs) enable catalytic converters to strip pollutants from car exhaust gases as emissions regulators become ever more stringent.

Anglo has also been an early supporter of the hydrogen economy, advocating for more widespread adoption of fuel cell electric vehicles (FCEVs), a zero-emission option catalysed by the PGMs it mines.

The world-first haulage truck powered by green hydrogen was introduced by Anglo Platinum at its Mogalakwena PGMs mine in South Africa's Limpopo province.

PGM recycling is advancing strongly in China with the new BASF HERAEUS Metal Resource facility in Pinghu opening this month and 2018 seeing the opening of a PGM-recycling facility in China's Nanjing by South Africa-linked Heraeus, which is mastering the thrifting of PGMs to optimise their cost-effectiveness.

BASF HERAEUS Metal Resource GM Nancy (Ying) Ren highlighted the launch of the PGMs recycling facility in Pinghu as being pivotal for the broader context of China's industrial and environmental roadmap. This year will reportedly see a new Honda FCEV enter the automotive fray in the form of the zero-emission CR-V FCEV on Asia, where Toyota's FCEV Mirai continues to advance.

PGMS AND HYDROGEN IN SOUTH AFRICA

The hydrogen economy is an important new growth area for PGMs and, in turn, PGMs are pivotal for hydrogen production and application across a broad front.

Heraeus Precious Metals new business development ex...

Mining Weekly Editor Martin Creamer discusses Vanadium Resources’ expansive long-life operation plans and how its mulling a listing on the JSE; Orion Minerals new surface right access and property acquisition; and Giyani Metals $10-million in funding.

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The three-month-old mutual cooperation agreement that the private-sector-owned Richards Bay Coal Terminal (RBCT) signed with State rail enterprise Transnet is already boding well, RBCT chairperson Nosipho Damasane emphasised on Thursday.

"Over the last few months, we've already experienced a very strong engagement platform," Damasane highlighted at a media briefing covered by Mining Weekly (Also watch attached Creamer Media video.)

Particiating in the briefing with Damasane and RBCT CEO Alan Waller were Acting Transnet CEO Michelle Phillips and Acting Transnet Freight Rail CE Russell Baatjies.

"We've actually worked together in collaboration to improve this value chain," she added, describing the mutual cooperation agreement as allowing Transnet and RBCT to jointly explore opportunities for joint investments in assets and infrastructure to support South Africa's coal industry in the north corridor.

It allows the public-private partnership to collaborate on matters relating to the uplifting of performance.

Between November 2023 and today, the initiative has enabled the public-private partnership to procure locomotive spares in the form of batteries and compressors in December.

The initiative is delivering a jointly managed project plan and looking at a joint Transnet-RBCT assessment for the corridor.

Within the period, Transnet Freight Rail proved that it can consistently deliver coal volumes of more than a million tons a week.

An initiative is already in place to renew from April improved 24-hour rail line security surveillance by RBCT, Rapid Rail Police and Transnet.

Procurement processes are being speeded up and every effort is being made to maintain, enhance efficiencies and signaling.

Working with Transnet has already reduced the export cycle time. Work is under way to to cut this from 99 hours to 75 hours on certain aspects of the corridor and to decrease loading and offloading time.

"We now have visibility and involvement around what we can do together and how can we as industry also assist, because this is for the benefit of everyone.

"We've also looked at the improvement of the rolling stock and making sure that the inspections that are happening on the line are proper, the improvement of the overhead traction equipment OHTE in the system and, most importantly, we're in the joint planning process with Transnet Freight Rail.

"Our 30-trains-per-day process has already started working. There is very strong ambition coming from RBCT and very strong support coming from Transnet and we're going to try to get the volumes back to their former glory," Damasane told the many journalists present.

Coal exported has fallen from a record 76.47-million tons in 2017 to 47.21-million tons, the lowest since 1992.

More than 78% of last year's coal exports were to Asia, with India buying 19.73-million tons.

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Keep an eye on Vanadium Resources (VR8). It's a motivated ASX-listed, JSE-mulling junior that is thinking expansively in line with the potentially very long-life mine that it is setting out to develop in South Africa's expansive Bushveld Complex.

VR8's Steelpoortdrift mine project's 680-million-ton resource is poised to give the company a potential 180-year lifespan.

Its operations are exppected to be in production by the end of 2026 and early 2027, with a beneficiation plant next to the mine producing a vanadium-rich concentrate. The intention is for that concentrate to enable the proposed downstream Tweefontein processing facility to produce a vanadium pentoxide flake for the steelmaking market and for vanadium redox flow battery (VRFB) manufacture, with demand for vanadium is expected to grow significantly in the next five to ten years off the back of VRFBs.

Of great advantage to the vanadium aspirant is that the processing site lies in the heart of Steelpoort Valley, where many mining and processing operations are already active, ensuring access to virtually everything it will be needing.

Once production is well under way, the longer-term vision of VR8 is to become a vertically integrated operation that advances to vanadium electrolyte production and battery manufacturing.

"We've got a massive deposit. We're in the heart of Steelpoort. We're surrounded by some of the major platinum, chrome and vanadium operators, and by industry, consultants, and engineering.

"You don't get that in other jurisdictions in places that I've worked, in remote locations in Western Australia, Australia or in South America or other areas of Africa, where you don't have access to a lot of things.

"Having a project of this magnitude, a tier-one asset, first-quartile facility, first-quartile operation, in the Bushveld, it's eminently bankable," VR8 MD and CEO John Ciganek outlined to Mining Weekly in a Zoom interview. (Also watch attached Creamer Media video.)

Mining Weekly: What is the latest news on your two projects?

Ciganek: Our Steelpoortdrift and Tweefontein projects are advancing very well, with a lot of the feed work being developed on both the projects. Technically, we've moved a long way from having a feasibility study over 12 months ago and we're building a team, which is progressing very well.

What will be VR8's mining method?

It's going to be open cut. The orebody outcrops so it has a low strip ratio. That puts us in a very good place on the cost curve internationally. We're very competitive. Next to the mine, we'll be building a beneficiation plant to produce a vanadium-rich concentrate, which will then get transported 15 km to our downstream processing facility at Tweefontein, which will then produce a vanadium pentoxide flake, which will then go to the steel and VRFB markets.

What is the present state of the vanadium supply and demand?

The demand in terms of vanadium pentoxide equivalent is at about 200 000 t a year at the moment from a mix of primary and secondary sources of vanadium. We'll be in the primary category and analysts are forecasting that demand will grow to about 300 000 t a year of vanadium pentoxide equivalent by about 2033. Our operations are planning to be in production by the end of 2026 and early 2027, so we'll be well placed to meet that growth in vanadium demand from VRFBs in the future.

In what respect is your development strategy green, clean and nature-positive?

We'll have a solar facility and a small VRFB configuration that will be servicing the beneficiation plant and the mine. Once we're in production, we'll be looking to increase the capacity of the solar facility and the VRFB to a point that we could move away from coal-fired grid power. The objective at some point is to become 100% renewables project. That's a long stretch, but moving more and more away from coal-fired electricity generation is one of our objectives for ...

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The revival of copper mining in South Africa's prospective Northern Cape province on Tuesday received yet another promising forward nudge along the road to copper-revival in the form of development obstacles being moved out of the way Orion Minerals.

New surface right access and property acquisition will now allow Orion to advance its Flat Mines Project, for which a bankable feasibility study is being carried out by the Johannesburg- and Sydney-listed Orion.

"This is a very important milestone for the New Okiep Mining Project," Boksburg-born Orion CEO Errol Smart commented in a release to Mining Weekly.

The milestone centres on an agreement being reached to access and acquire Mora Plase surface ownership rights to Farm Nababeep and Farm Plaatjesfontein, properties which overlie most of the Flat Mines area, which is where Orion's majority owned subsidiary, New Okiep Mining, holds an Okiep Copper Project mining right and prospecting right applications.

Overall, Orion is targeting substantial diversified base metal production through the development of the Okiep Copper Project and the Prieska Copper-Zinc Project, also in the Northern Cape.

The historical copper district in which the Okiep Copper Project is located produced more than two-million tonnes of copper over a 150-year period ending in 2003 and Prieska has a recorded historical production of more than 430 000 tonnes of copper and one million tonnes of zinc from 46.8-million tonnes of sulphide ore milled.

As a result of the latest acquisition, Orion will immediately have access to undertake a drilling programme to confirm the expected metallurgical zonation and geotechnical assessments of the Flat Mines deposits, with the data expected to enhance the outcomes of the bankable feasibility study.

Ownership of the surface area will also allow Orion to optimise community agriculture as well as solar and wind plants for the future mining operations and to the surrounding communities.

the latest surface right ownership also removes any conflict of interest in future surface use, allowing outstanding environmental authorisations, and water use license and rezoning applications to proceed to completion.

Conflicting land use interests have until now prevented Orion from accessing the surface area to conduct important validation work.

"While the primary access for the deposits is located on municipal land - where we do have an access agreement - important supporting infrastructure such as roads, power transmission, water supply pipelines and, most importantly, ventilation holings will need to be located on the surface, within the newly acquired area," added Smart.

The acquisition also provides the opportunity to undertake future extensional drilling of the known deposits and resource categorisation drilling.

The surface ownership over the remaining areas that will be impacted in the foreseeable future is by the Nama Khoi Local Municipality, with whom Orion has secured an access and surface use agreement.

Orion has mobilised drill rigs to execute a 3 000 m twin hole drilling programme over the Flat Mines East and Flat Mines North deposits and conduct confirmatory geotechnical and metallurgical test work.

The drilling and test work programme is expected to be completed in the current quarter, with the results to be incorporated into an optimised bankable feasibility study that will be externally reviewed in the following quarter before release scheduled for June.

Owing to previous lack of surface access preventing validation drilling, reliance has been placed on 128 km of historical Newmont and Gold Fields drilling records validated by 2 331m of twin drilling by previous owners Southern African Tantalum Mining.

Unfortunately, the drill core from Newmont and Gold Fields is not available for geotechnical studies and test work such as ore sorting. Access to fresh drill core is expected to materially enhanc...