Mining Weekly

Electricity and Energy Minister Dr Kgosientsho Ramokgopa, who is Eskom’s shareholder Minister, has reiterated his opposition to the utility receiving a 36.15% tariff hike next year, while also indicating that various policy interventions are being considered to reduce the increase. Speaking at a briefing in Pretoria that coincided with the National Energy Regulator of South Africa’s (Nersa’s) nationwide public hearings into Eskom’s sixth multiyear price determination (MYPD6) application, Ramokgopa expressed confidence that the hike would be “significantly” lower than what Eskom was requesting.

South Africa's Department of Mineral Resources and Energy (DMRE) has granted Whale Head Minerals (WHM), a subsidiary of Aim-listed investment company Kazera Global, an environmental authorisation for the Perdevlei (2a) concession in the Northern Cape. The authorisation was granted well ahead of the anticipated date of January 2025 and brings WHM closer to securing a mining right for the 3 095 ha Perdevlei concession, which contains about 170 ha of high-grade heavy mineral sands (HMS) deposits that are believed to be suitable for immediate mining.

Gold miners Centamin and AngloGold Ashanti have reported that the Jersey Court has sanctioned the scheme of arrangement between the two parties that will result in AngloGold acquiring all of Centamin's share capital.

A remodelled Integrated Resource Plan (IRP) for electricity will be released to the public next week and is expected to deviate materially from the heavily criticised draft IRP2023, which was published for public comment in January. Electricity and Energy Minister Dr Kgosientsho Ramokgopa says the revamped document has taken account of changes in the electricity supply industry since the publication of the draft IRP2023, as well as the 4 338 stakeholder comments received on the document, including 136 “substantive” comments.

A total of 25 countries and the EU are pledging to commit to no new unabated coal power in their next round of national climate plans, the latest global pledge aimed at curbing use of the fuel. Signatories to the agreement, outlined during the ongoing COP29 climate talks in Baku, include Canada, the UK and Germany, according to a statement published Wednesday. China and India, the world’s largest coal consuming nations, aren’t among backers so far, and neither is the US.

Potash development company Kore Potash, which owns 97% of the Kola and DX projects in Congo-Brazzaville, has signed a final engineering, procurement and construction (EPC) contract with PowerChina International Group for the construction of the 2.2-million-tonne-a-year muriate of potash (MoP) Kola project. The EPC contract has been signed at a fixed price of about $1.93-billion, with $708.9-million of that allocated for the construction of transportation links and utility pipelines that will enable the project to avoid relying on State infrastructure.

It is imperative that South Africa and industry decarbonises and, with the transition towards more sustainable forms of energy already occurring, stakeholders should focus on how the transition is implemented in a just manner at the pace that is required, and the steps and strategies this would entail. This was highlighted by Seriti Resources Group CEO Mike Teke, delivering the keynote address during the first day of the C&I Solar+Storage Summit, being held this week in Sandton.

London-listed emerging graphite miner Blencowe Resources has responded to shareholder questions following a capital raise of £1.6-million to fund the completion of a definitive feasibility study (DFS) on the Orom-Cross project, in Uganda. The company aims to complete the DFS by the second quarter of next year.

Japanese trading house Mitsui & Co. has emerged as the highest bidder for a stake in First Quantum Minerals’ Zambian copper mines, according to people familiar with the matter. Mitsui submitted an offer that’s higher than a rival proposal from Saudi Arabia’s state-backed Manara Minerals Investment Co, the people said, asking not to be identified because the information is private. The Japanese company is considering buying a roughly 20% interest in First Quantum’s Sentinel and Kansanshi mines for about $2-billion, according to the people.

A day after halting trading in its shares on the LSE owing to liquidity constraints, integrated vanadium producer Bushveld Minerals has placed its principal operating subsidiary Bushveld Vametco Holdings (VBH), along with Bushveld Vametco Alloys and Bushveld Minerals SA – its South African entities – in business rescue. A business rescue proceeding affords the South African entities protection from legal action while their future is assessed and potential plans to rescue the business are implemented.

Zambia's government has reaffirmed its commitment to fostering a favourable investment climate in the mining sector, citing significant production increases as evidence of the success of its policies, Canadian miner First Quantum Minerals (FQM) has said in a media release. Following a recent visit by the Ministers of Finance and National Planning Dr Situmbeko Musokotwane, Mines and Minerals Development Paul Kabuswe, Information and Media and chief government spokesperson Cornelius Mweetwa, and Labour and Social Security Brenda Tambatamba, as well as North-Western province Provincial Minister Robert Lihefu to FQM’s Kansanshi and Trident mining operations, government highlighted a substantial rise in copper production, exceeding expectations and bringing the country closer to its ambitious target of three-million tonnes a year by 2031.

TSX-V-listed Koryx Copper has appointed Heye Daun president and CEO effective immediately. Daun will also retain his position as chairperson.

A new brand that offers a comprehensive portfolio of hydrogen application support off a single platinum group metals (PGMs) company base has been launched at the European Hydrogen Week 2024 by Heraeus Precious Metals, a German-based entity with long-standing association with Johannesburg Stock Exchange-listed Northam Platinum. The new brand of Heraeus’ Hydrogen Systems Business Line is hailed as providing the collective platinum, iridium, ruthenium and PGMs recycling answers from a single source that the hydrogen economy needs.

With a focus on research, development and innovation (RDI), the Mandela Mining Precinct (MMP) is implementing a new strategy for the next five years, with a focus on the future of the South African mining sector. Speaking at the 2024 Mining Technology and Innovation Showcase, on November 18, MMP executive director Julie Courtnage noted that the new strategy, which was approved on October 30, reflected a shift in thinking for the public-private partnership.

The issues of electricity affordability and Eskom’s inefficiencies emerged as recurring themes as the National Energy Regulator of South Africa (Nersa) kicked off nationwide public hearings in Cape Town on Monday into the utility’s latest revenue application. Through its sixth multiyear price determination (MYPD6) submission, Eskom is requesting an increase in its allowable revenue to R446-billion in 2025/26, R495-billion in 2026/27 and R536-billion in 2027/28.

Vanadium producer Bushveld Minerals has suspended the trading of its shares on the Aim market of the LSE after it failed to secure additional funds to address its liquidity position. The company said on November 18 that its discussions with various stakeholders to secure funding had not yielded any results and that it would consequently be investigating turnaround strategies with the help of a turnaround specialist.

President Cyril Ramaphosa described the Stilfontein mine as a “crime scene”, on Monday, as he called for a peaceful resolution to the standoff at the disused mine shaft, where illegal miners are holed up. The South African Police Service and government departments have been trying, for over a month, to surface the illegal miners from the abandoned North West gold mine. While more than 1 000 miners have since surfaced and been arrested, it is believed that there are still hundreds of illegal miners in the shaft. Police had closed off the mine’s entrances and stopped supplies of water and food to the miners. However, the Pretoria High Court has since ruled that the shaft be unblocked by police to allow for food and water to reach the miners. One body has been retrieved from the mine. Ramaphosa said this operation formed part of government’s nationwide Operation Vala Umgodi crackdown to curb illegal mining activities in the country, which he said cost the economy billions in lost export income, royalties and taxes. “We need to be clear that the activities of these miners are illegal. They pose a risk to our economy, communities and personal safety. The Stilfontein mine is a crime scene where the offence of illegal mining is being committed. It is standard police practice everywhere to secure a crime scene and to block off escape routes that enable criminals to evade arrest. In doing so, the police must take great care to ensure that lives are not put at risk and that the rights of all people are respected,” he said. Miners who surface from the mine shaft are medically assessed and detained if found to be in good health. Others are transported to the hospital under police guard.

Donald Trump’s victory immediately buoyed markets from stocks to Bitcoin. Gold is going to take a lot longer to turn things around. In the two days immediately following the Republican candidate’s win, the precious metal’s performance was the worst in at least 13 US Presidential election windows, according to Deutsche Bank. Gold prices have dropped almost 7% since Election Day, even as several other asset classes enjoy a post-campaign boost.

BHP Group’s Australia chief said the nation can’t rely on its traditional mining export markets and is unprepared for a new era of lower-cost competitors. The boom in demand from China’s industrialisation is now “past the period of aggressive growth,” BHP’s Australia President Geraldine Slattery said Monday in a speech in Brisbane.

Australia's Resolute Mining said on Monday that it would pay $160-million to Mali's government to help resolve a tax dispute after the West African country detained its CEO Terence Holohan and two other employees this month. Resolute has made an initial payment of $80 million as part of the settlement from existing cash reserves and will make future payments of about $80-million in the coming months from existing liquidity sources, it said in a statement. Resolute shares were down as much as 14.3% in early trading on Monday to A$0.345, the lowest since March 1.