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Ongoing strong performance by South Africa's Hillside Aluminium operation in KwaZulu-Natal has helped diversified mining company South32 achieve record half-year aluminium production.

Moreover, South Africa Manganese sales increased by 9% in the December quarter at a 5% price premium to the medium grade 37% manganese lump ore index.

There were lower secondary production yields at South32's Australia Manganese, where a royalty tax equal to 20% of adjusted earnings before interest and tax applies.

Full-year guidance of 720 000 t of aluminium production remains unchanged at South Africa's Hillside Aluminium, whereas in Mozambique, full-year production guidance for the Mozal Aluminium smelter has been reduced by 12% amid Mozal's saleable production decreasing by 9% in the six months to December 31.

Furthermore, owing to some 60% of Mozal's production consisting of below specification material in the last three months of last year, Mozal product sold at discount prices compared with South32's other London Metal Exchange-linked aluminium sales.

"With some of our commodities facing headwinds in the half, we continued to focus on delivering cost efficiencies and expect first half operating unit costs to be below or in line with guidance for the majority of our operations," South32 CEO Graham Kerr stated in a release to Mining Weekly.

"As we enter the second half, strengthening market conditions for many of our commodities, our planned 7% production growth and ongoing cost management focus, position us well to capture higher margin," Kerr said.

BATTERY MANGANESE

Meanwhile, Financial Review journalist Hans van Leeuwen has reported from Davos that South32 is pressing on with plans to potentially supply manganese for battery making.

Kerr revealed in the report that initial memorandums of understanding with some battery makers and the supply of samples for a pilot study were now being expanded.

"We'll give enough material so they can seriously test it," Kerr is quoted as saying. Ultimately, South32 might produce high purity manganese sulphate monohydrate or HPMSM itself and sell that to the battery makers.

"When we thought about this three or four years ago, our marketing team said it would be about a 10 000 t market. Then all of a sudden, we're talking to our customers, and they're all asking for 60 000 t," Kerr said. "It's looking more promising."

Three other companies involved in the manganese industry in Southern Africa are showing strong interest in the production of HPMSM battery manganese for the battery industry in general and battery electric vehicles (BEVs) in particular.

Foremost among these is Bernard Swanepoel's Manganese Metal Co (MMC) in Mbombela, Mpumalanga, South Africa, which has a half-century of experience in adding value to manganese and has been engaging in far-reaching preparation for entry into the potentially colossal HPMSM market.

Trade & Industrial Policy Strategies (TIPS) senior economist Gaylor Montmasson-Clair describes the Mbombela company as "a South African industrial jewel" that could be much bigger than what it is today. He describes MMC as a one-of-a-kind company that should be supported on its growth trajectory.

TIPS, an independent, non-profit, economic research institution based in Tshwane, was established in 1996 to support economic policy development, with an emphasis on industrial policy in South Africa and the region.

All that stands between MMC and the construction of the battery manganese project in Mbombela is the finalisation of funding, which South Africa's State-owned Industrial Development Corporation (IDC) has managed to achieve for Botswana to the extent that the Canada-owned Giyani Metals has described the IDC funding as being the cornerstone of its $26-million funding package.

Funding from the IDC for construction of South Africa's own potentially paradigm-shifting initial HPMSM plant in Mbombela is stil...

Mining Weekly Editor Martin Creamer unpacks the nature-positive commitment that mining and metals companies have made; the opportunity presented by the JSE for critical mineral miners to access capital; and Copper 360 embracing smart watches to uplift mineworker wellbeing.

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A new platinum group metals (PGM) recycling facility has opened in China, where the autocatalyst recycling market is expected to grow at the rate of 18% a year.

Recycled PGMs are calculated to offer carbon dioxide (CO2) emission reduction of up to 98% when compared with mined PGMs.

The largely Southern Africa-mined PGM suite of metals embraces platinum, palladium, rhodium, iridium, ruthenium, and osmium, with metals used as catalysts in applications including exhaust gas purification, green hydrogen generation, fertiliser production, jewellery, and in cancer therapy medicines.

The new BASF HERAEUS Metal Resource recycling facility in Pinghu, China, has been jointly built by BASF Environmental Catalyst & Metal Solutions and Heraeus Precious Metals.

The joint venture investment is part of a global €300-million recycling expansion programme spanning China, the US and Germany, Heraeus Precious Metals senior VP business line chemicals Marius Vigener stated in a media release to Mining Weekly.

"It will support our customers by meeting their increasing demand for low-carbon footprint products. This commitment to sustainable development benefits not only both companies but also the wider PGM and downstream industries," Vigener noted.

Construction of the facility, which has a capacity to recycle 10 000 t of autocatalysts a year, was completed in 16 months on an area of 32 000 m2 in Pinghu. Also in China, a PGMs plant in Nanjing was opened by Heraeus in 2018.

In Germany, Heraeus is expanding its PGM recycling capacity in Hanau, as well as providing additional recycling capacity development in Wartburg, Tennessee, and Santa Fe Springs, California, both in the US.

In Hanau, several additional production lines are expected to increase recycling capacities substantially by 2026. The new lines will use electrolytic processes that reduce the use of chemicals and increase process efficiency.

In Pinghu, the joint venture will use BASF Environmental Catalyst & Metal Solutions pyrometallurgy recycling technology, providing customers with state-of-the-art technology for the recovery of precious metals.

BASF Environmental Catalyst & Metal Solutions senior VP Precious Metal Services & Recycling Tim Ingle described China as an important market and said BASF HERAEUS Metal Resource would facilitate the reuse of PGMs in China while supporting circularity and enabling customers to reduce their CO2 footprints.

"We extend our deepest gratitude to the joint project team, our partners in the construction company, and local authorities. It is the commitment of all those involved that ensured the project's rapid and successful completion ahead of schedule," said BASF HERAEUS Metal Resource GM Nancy (Ying) Ren, who highlighted the recycling operation as being pivotal for the broader context of China's industrial and environmental roadmap.

PGMS AND HYDROGEN

As reported by Mining Weekly last week, 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.

In the article, Heraeus Precious Metals new business development executive VP Dr Philipp Walter highlighted the strong global current momentum of the hydrogen economy - "politically, socially and technologically".

In South Africa, it is estimated that the hydrogen economy has the potential to add 3.6% to gross domestic product (GDP) by 2050, along with 370 000 jobs.

South Africa is already acting with purpose to harness the potential of green hydrogen and if investment is significantly scaled-up, green hydrogen can deliver the equivalent of more than one-third of Africa's current energy consumption, increase the collective GDP, improve clean energy supply and empower communities.

The Southern African region already has 33 green hydrogen-linked projects charted, 26 of them in eight provinces in South Africa and seven in Namibia. This re...

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The introduction of an electronic cadastral system to record and enable online access to mining data is imminent, Mineral Resources and Energy Minister Gwede Mantashe emphasised in an interview with Radio 702 host Clement Manyathela on Thursday.

Mantashe disclosed to Manyathela that agreement had been reached with the State Information Technology Agency (SITA) for the introduction of a cadastral system - a set of records and maps that describe the ownership, boundaries, value, and use of land parcels within a jurisdiction.

The announcement of the cadastral system service provider was imminent and the introduction of the system would accelerate the pace of processing mineral rights, Mantashe added when questioned on the issue of South Africa's Department of Mineral Resources and Energy (DMRE) having sufficient administrative capacity to operate efficiently.

"You will be able to apply and receive the receipt. If you're applying, for example, on a farm that has already had an application, you'll be able to see that yourself.

"I want to use 2024 as a year to clear backlogs. By the end of 2024, there must be no backlog," Mantashe instructed.

While the auditing of the process has been the responsibility of SITA, it is the DMRE that has now approved the cadastral system.

"To check functional cadastral systems, we had to go to Botswana and Namibia, for example, to see how they use their cadastral system.

"We'll pick up on functional aspects of the cadastral systems in those two countries and that's why we're confident that the cadastral system that we're going to implement will run and we said to SITA, if you have an issue, attach a person to the project so that we are able to clear the cadastral system quicker."

Pressed on the exactness of the date when the cadastre would be in place, Mantashe said: "I expected the DG to announce it even this week. Once it's announced, we'll start implementing, and that includes training people on it, so the work will start almost immediately."

Under the existing system, the backlog of about 5 000 applications had, he said, been reduced to about 3 000.

Helping this reduction was the moving of teams from provinces with relatively small backlogs to assist in provinces with big backlogs.

"But I want to emphasise that there are many applications for the same farms. There is an instance of 37 applications for the same farm and we must deal with that issue using first come, first served approach in approving the applications.

Manyathela: What is your comment on the status of our mining industry, do you think that we're still far from realising the full potential of this industry to contribute to our gross domestic product (GDP)?

Mantashe: I've been in the mining industry for some time, as a worker and as a unionist, and the story that mining will disappear in 20 years is a story I've had to face many times. As a result of that, we've coined the slogan that this is not a sunset industry; it's sunrise industry. In 2009, in my studies, I did research on the decline of gold mining. That research opened my eyes to a bigger part of South African society always equating mining to gold mining. The lucky thing about it now is that we talk mining in its entirety. While gold mining is in decline, platinum group metals, manganese and coal mining are growing, and iron-ore is doing well. The mining industry is healthy. Quarterly GDP reports show that mining is contributing and every time mining's contribution is shown to be slightly negative, you'll see in the GDP that overall growth has declined. When mining makes a positive contribution, GDP grows, so mining is performing. We've been around 8% contribution overall on the GDP. My own view is that it can grow.

In the early 90s, wasn't mining's contribution to GDP around 10%?

That was because gold is bulk and gold was big. I want you to take a visit to what were called Free State goldfiel...

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Global mining and metals companies have committed at Davos to take urgent action to support a nature-positive future by 2030 that promotes the health, diversity and resilience of species, ecosystems and natural processes.

International Council of Metals and Minerals (ICMM) members, representing a third of the global industry, have pledged that meeting the demand for critical materials must not be at the expense of nature.

ICMM brings together a third of the world's mining industry to drive sustainable development.

South Africa-linked member companies and organisations include African Rainbow Minerals, Anglo American, Glencore, Gold Fields, Sibanye-Stillwater, South32, Minerals Council South Africa, and Mining Industry Associations of Southern Africa.

ICMM's new commitments set out a five-point plan for nature:

Protect and conserve pristine areas of the natural environment: No mining or exploration in World Heritage Sites and respect all legally designated protected areas.

Halt biodiversity loss at operations: Achieve at least no net loss of biodiversity at all mine sites by closure against a 2020 baseline.

Collaborate across value chains: Develop initiatives and partnerships that halt and reverse nature loss throughout supply and distribution chains.

Restore and enhance landscapes: Around operations through local partnerships, including with Indigenous Peoples, land-connected peoples and local communities.

Catalyse wider change: Act to change the fundamental systems that contribute to nature loss and foster opportunities for nature's recovery.

These commitments apply to activities across all four realms of nature - land, freshwater, oceans and atmosphere - leveraging companies' areas of influence - from their direct operations, value chains and wider landscapes, through to creating the conditions required to achieve systems transformation. They are supported by transparent disclosures on performance outcomes, including publishing the results of nature-related impact and dependency assessments, and setting targets to address these.

"The mining industry owes its very existence to nature. At a time when the health of our natural world is in peril yet the demand for critical minerals is set to soar, we have committed to significant collective action to help create a nature-positive future," ICMM president and CEO Rohitesh Dhawan stated in a release to Mining Weekly.

These commitments build on the individual goals and actions of ICMM members over several decades, including habitat conservation, species protection and landscape restoration.

"There is no escaping that the act of mining directly affects nature, which is why the cornerstone of our commitments is to ensure at least no net loss of biodiversity at all mine sites by closure against a 2020 baseline.

"In addition, we have committed to take steps in our value chains, landscapes, and the wider systems in which we operate so that the total impact of our actions contribute to a nature-positive future. These will be taken with the critical participation of Indigenous and land-connected peoples, and local communities, whose rights, values, and knowledge will be central to our actions," Dhawan said.

Examples of initiatives ICMM members have already implemented include strengthening protection for areas of high biodiversity value, developing innovative technologies for improved seed performance during landscape revegetation, and defending important habitats from invasive species. ICMM's new commitments will enhance these to drive performance across the industry.

Nature advisory group chairperson Jonathan Price, who is also the CEO of Teck Resources, described collaboration across all sectors as being essential to help reverse nature loss and restore landscapes for the benefit of all.

THREE-TO-ONE RECLAMATION

"At Teck, we're taking action to conserve and restore nature while we also provide the critic...

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South Africa-linked mining luminaries are playing roles in an initiative to transform the metals industry with clean technology.

Being targeted for metals is the elimination of energy-intensive smelters, toxic chemicals and strong acids.

South African mining hall-of-fame stalwart Ian Cockerill, the chairperson of DEScycle of the UK, is now flanked in an advisory panel by fellow hall-of-fame achiever Mark Cutifani and highly successful local technology innovator Tony O'Neill, who was the leading light in the development of the world-first haulage truck powered by green hydrogen at Anglo American Platinum's Mogalakwena PGMs mine in South Africa's Limpopo province.

The novel class of deep eutectic solvents (DES) chemistry now being developed by DEScycle is initially targeting electronic e-waste recycling. Common items in e-waste streams include computers, mobile phones, large household appliances, and medical equipment.

As part of its growth strategy, DEScycle is developing mineral processing applications for nickel and cobalt battery metals, along with cyanide-replacement in gold processing, water-free copper and base metals processing, and simplified rare earth elements processing.

The low-energy, non-toxic metals treatment envisaged is set to lower costs considerably once piloting advances to commercialisation.

DES components are salts and organic compounds of a large number of possible formulations, with each formulation suited to a particular task.

The fastest growing e-waste stream is expected to grow to $82-billion a year by 2030, DEScycle states on its website.

Cockerill became an inductee of the Joburg Indaba South African Mining Hall of Fame initiative in 2017 and Cutifani in 2019. The initiative recognises individuals who have significantly influenced the South African mining industry.

SMELTERLESS TECHNOLOGY IN SOUTH AFRICA

In South Africa, smelterless Kell hydrometallurgical processing technology is being highlighted at Sedibelo's Pilanesberg PGMs mine in North West province.

Sedibelo announced its involvement with Kell at the premises of South Africa's State-owned Industrial Development Corporation (IDC) more than a decade ago.

Sedibelo shares an interest in Kell with the IDC and founder Keith Liddell, who conceived the smelterless concept I the late 1900s while working at South Africa's State-owned mineral research organisation, Mintek, in Johannesburg.

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Computer programmes that use artificial intelligence (AI) to model orebodies and plan mines optimally have already been introduced by Copper 360, the JSE AltX-listed Northern Cape copper mining company, which is developing the Rietberg copper mine, the first of a dozen copper-mining assets it has on its development list.

Next in line for South Africa's only pure copper play, which is already producing copper plate from surface material, will be smartwatches on the wrists of employees to uplift their well-being and even check their heart rates.

Then, towards the end of the year, battery operated vehicles capable of halving underground ventilation demand will be looked at.

In addition, intense consideration is being given as this article goes to press to the appointment of a chief technology officer to guide the organisation's embrace of state-of-the art technology from within its C-suite.

Meanwhile, deployment of technologies such as the internet of things, blockchain and AI are already providing the company with predictive outcomes.

Facilitated, too, will be smart contracts - self-executing contracts with the terms of the agreement captured in code - which can be used to automate transactions.

The possibilities are endless, and the tamper-proof nature of the blockchain adds a healthy measure of data security, reliability and integrity to the mix, Copper 360 CEO Jan Nelson noted in an Op-Ed.

"Mining's going to become an industry where, through technology, we'll create a full-cycle business," Nelson elaborated to Mining Weekly in a Zoom interview. (Also watch attached Creamer Media video interview.)

"What technology does is allow a small company to suddenly start being very competitive," Nelson enthused.

Technology is also enabling great strides to be taken to uplift employee-relations for levels never before experienced: "Can you imagine every one of your employees having a smartwatch," Nelson postured about from-the-wrist information that will elevate mine safety to new heights and even help his team to mine in areas where widths have hitherto been too small for human entry.

At Copper 360's debut Rietberg mine alone copper in the ground is estimated to be worth R12-billion to R15-billion. Closely spaced drillholes show ore ready for mining on at least five open and accessible predeveloped levels.

Nelson sees the internet of things as being akin to a spiderweb that enables mining companies to be preventive rather than reactive: "We can see things that are going to happen and we can stop them in time."

It is also providing improved and faster decision-making and, linked to AI, it enables real-time scenario optimisation.

Moreover, blockchain is providing a digital record of everything, while also holding everybody to account in the new world where accountability and sustainability are musts.

"Blockchain's extremely efficient to roll into your operations and doesn't cost a lot of money," Nelson remarked.

Mining Weekly: Is it essential that the collection of the state-of-the-art technologies be deployed collectively for the overall outcome to be most effective?

Nelson: If we had all the money and all the time in the world, I would say yes. It would be fantastic to be able to click your fingers and roll things out, but that's certainly not how we've planned it. There's a progression and part of that comes with proper planning and training. You can't just bombard your people with everything in one go. A progressive, sequential roll out is how we see it being the most efficient.

Will new technology create more jobs than it eliminates?

There's always a scary thing that people think with technology comes fewer jobs. But if you look at the tech companies and all the tech toys they've supplied us and gadgets that we have, we as human beings are able to do more and be more efficient. That's why I think we're going to use more of our people, but in different...

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The convergence in platinum and palladium prices is likely to go further.

Fundamentals point more positively for platinum into 2025 on a better autocatalyst demand trend.

This will be so even as global internal combustion engine (ICE) vehicle production declines, Deutsche Bank Research metals & mining analysts note in a commodities outlook published on January 10.

Within the platinum group metals (PGMs) market, the supply and demand trends favour platinum over palladium, the analysts state.

Since November, it has been the view of the Deutsche Bank Research team that PGMs would remain under the shadow of a United States recession and a consumer perception of poor vehicle buying conditions for the early part of the year.

This continues to be the case, with the forecast for a United States recession for the first half of the year suggesting that PGM prices will remain under pressure for at least the first quarter.

A weaker performance in palladium versus platinum is consistent with the autocatalyst industry's substitution process underway between 2023 and 2025, which is seen as unlikely to reverse course.

History would suggest, the analysts state, that the PGMs are likely to see scope for recovery, on account of a United States Federal Reserve pivot and easier credit conditions, which would improve vehicle buying conditions. Testing the S&P 500 over the course of previous recessions, the trough tends is found to be somewhat after the halfway point.

From spot levels, the research team's revised quarter-four forecasts of $1 350/oz in both platinum and palladium imply a 38% gain in palladium and a 44% gain in platinum.

PGM basket costs are the closest to producer cash costs since 2018, stress that has been evident most recently through Anglo American Platinum's reduction in production guidance for 2024 and 2025.

Anglo Platinum's 300 000 oz of lower PGM guidance in 2024 is a result of lower own-mine production, while the 300 000 oz of lower PGM guidance in 2025 is a result of lower purchase of concentrate.

Based on Anglo Platinum's historical ratios over 2020 and 2022, this would imply a greater reduction in platinum output than palladium (134 000 oz vs 95 000 oz) in each year. However, the possibility that the third party concentrate not purchased by Anglo Platinum finds its way to another refiner means that for the industry as a whole, the 2024 production cut is more certain.

On autocatalyst demand drivers, global ICE production, including nonplugin hybrids, is poised to decline by -3.1% in 2024 and by -3.7% in 2025, owing to the gradual adoption of battery electric vehicles (BEVs).

Through 2025, its assumptions are consistent with the shallower BEV adoption curve indicated by Deutsche's global autos team in December, but significantly less optimistic between 2025 and 2030.

Even with this less optimistic projection for BEV adoption, global ICE sales are set to decline more rapidly after 2025, accelerating to an annualised -5.1% between 2025 and 2030.

Only partially offsetting this is the tendency for manufacturers to use higher loadings to meet more stringent emissions standards, which amounts to a trend growth of 1.9% since 2006. The tightening trend in emissions regulation is not set to relax any time soon.

These drivers suggest, the analysts state, that palladium autocatalyst demand may fall by -270 000 oz to -300 000 oz in 2024 and 2025, and platinum autocatalyst demand by only -40 000 oz and -60 000 oz in 2024 and 2025, with substitution effects plausibly translating into a rise in platinum autocatalyst demand.

The upshot is that while 2024 supply-demand may still be close to balanced, a view incorporating 2025 would point to further deterioration in palladium balance relative to platinum, suggesting a potential for platinum to trade at a premium to palladium in 2025.

SUPPLY DECLINE

In a 25-page review for Auctus Metal Portfolios of Singapore, ...

Mining Weekly Editor Martin Creamer discusses the hydrogen economy as a new growth area for platinum group metals; Ian Cockerill's appointment as CEO of West African miner Endeavour Mining and the importance of growing the pipeline of leaders in the mining industry; and the importance of sustainability, as highlighted by Sibanye-Stillwater's appointment of Melanie Naidoo-Vermaak as its chief sustainability officer.

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Critical mineral demand is growing significantly at a time when South Africa has a pressing need to reawaken its public markets - two crucial needs that can be fulfilled in one go by companies raising capital on the Johannesburg Stock Exchange to fund their entry into the critical minerals mining space.

Globally, critical minerals lists are growing, with many of the minerals registered available from existing mines in South Africa, which also offers opportunities for potential expansion by existing mining companies.

Let us not forget that South Africa has got about 6 000 unexplored and abandoned mines, some of which have existing infrastructure on which to model data and facilitate the raising of some capital for the redevelopment these operations.

These are among the many points highlighted by Johannesburg Stock Exchange (JSE) business development manager Patrycja Kula-Verster during a Zoom interview with Engineering News & Mining Weekly. (Also watch attached Creamer Media video.)

"If one looks at the critical minerals such as copper, magnesium, lithium, nickel, cobalt, rare earths, for example, and many more, it is really a good opportunity to look into these critical minerals and see where the opportunities lie in terms of the broader electrification of the global economy as many are looking at securing energy security globally and not only here in South Africa," said Kula-Verster.

Regular additions are being made to critical mineral lists with Australia, for example, last year appending fluorine, molybdenum, selenium and tellurium to its register of minerals that it regards as essential to modern technologies, atop of Australian officials also creating a new strategic materials list that embraces copper, nickel, aluminium, phosphorous, tin and zinc.

"South Africa's got an abundance of resources and reserves and it is important to facilitate access to funding and unlocking this potential," added Kula-Verster.

Whether operations are existing or emerging, the JSE is there to facilitate access to capital to give these opportunities a platform on which to develop and make a significant contribution to the South African economy.

By listing on any exchange globally, one is essentially using the franchise of that exchange, and, particularly in the case of the 137-year-old JSE, that franchise is able to profile businesses to both institutional and also retail investors.

It is important for issuers of shares to maintain their profile and continuously engage with these investors.

When it comes to research coverage, local independent research analysts cover many of these stocks for the benefit of retail investors.

The JSE has around a dozen retail brokers plus financial services providers that have made it their job to ensure a user friendly experience when it comes to trading stocks on an exchange.

Most important is continuous communication with the retail investor audience.

The JSE also assists companies with broader exposure and as companies grow and are included in indices, for example, they can be included in many additional products.

Investing in a basket full of shares is a fantastic opportunity to get some indirect shareholding in some of these types of companies, as well as actively manage certificates.

Creating an enabling platform to access capital is the prime responsibility of exchanges along with ensuring continuous local and international profiles.

Once listed on the JSE, continuous access is provided to follow-on equity raising and even debt capital markets, depending on the funding requirements.

"There is access to capital via the JSE for junior miners, not only the large miners, and I think that's an important point to make. There are deep and liquid capital markets available here in South Africa, both in retail and institutional, so much so that you can even attract some offshore investments," Kula-Verster pointed out.

Run some model...