Mining Weekly

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.

Ahead of new diamond import requirements from Group of 7 (G7) nations, starting on March 1, diamond producer De Beers Group says it anticipates no disruption to its diamond supply. The group reiterates that it fully supports the G7’s intentions to prohibit the import of Russian diamonds. It also emphasises the efforts it has taken over the past decade to provide assurance on the provenance of its diamonds.

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.)

Both Cabinet and organised business have lauded the five-year public-private partnership agreement between Sasol and Transnet Freight Rail (TFR), under which the energy and chemicals group will fund the maintenance and repair of a dedicated fleet of 128 ammonia tankers. In a statement following its February 28 meeting, Cabinet welcomed what it described as a “first-of-its-kind” partnership agreement, which it said would advance the country’s Freight Logistics Roadmap, drafted to turn around the underperforming sector.

Johannesburg- and London-listed diversified mining and marketing company Anglo American announced on Thursday that jointly owned renewable energy venture with EDF Renewables, Envusa Energy, has completed the project financing for its first three wind and solar projects in South Africa. The terms and structure of this non-recourse project financing are typical of high-quality renewable energy infrastructure assets. These three renewable energy projects, known as the Koruson 2 cluster of projects and located on the border of the Northern and Eastern Cape provinces of South Africa, will have a total capacity of 520 MW of wind and solar electricity generation.

Top coal exporters Indonesia and South Africa are aiming to ramp up supplies of thermal coal to key buyer India, company executives said, as they look to regain market share in the world's second largest import market for the fuel. Indonesia and South Africa are top suppliers of thermal coal to India, but have lost market share in recent years to the United States, Russia and Australia due to major changes in trade routes over geopolitical concerns.

Organised business says the appointment of a permanent executive team at Transnet – led by CEO Michelle Phillips, who has been acting in the role since September and who has been with the utility for 20 years – will enhance stability in the relationships between Transnet and the business sector and accelerate the implementation of the Transnet Recovery Plan. Phillips’ appointment was announced by Public Enterprises Minister Pravin Gordhan on February 28 alongside that of Nosipho Maphumulo, who has been appointed CFO.

The significant decline in platinum group metal (PGM) prices during 2023 has resulted in notably lower group profitability, despite disciplined cost control across several operations, PGMs mining and marketing company Implats reported on Thursday.   The group generated earnings before interest, taxes, depreciation and amortisation (Ebitda) 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 of R6.8-billion.

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 posting a superb set of half-year financials and declaring a record interim dividend. (Also watch attached Creamer Media video.)

Diversified mining company South32 on Thursday announced the $1.65-billion sale of its Illawarra assets, in Australia, marking the group’s exit from coal and aligning with a strategy that emphasised ventures in copper and zinc. The ASX-, LSE- and JSE-listed miner sold Illawarra to Golden Energy and Resources (GEAR) and M Resources for cash.

The board of mining company Harmony Gold has approved the commencement of a R7.9-billion life-of-mine (LoM) 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.

Illegal mining is one of the biggest constraints threatening the sustainability of the South African mining industry and, while this challenge is considerable, it is not insurmountable. There are several measures that stakeholders can and are pursuing to mitigate the impact of illegal mining. This was the key message outlined by speakers in Creamer Media’s ‘Mining Sustainability and Security in the South African Mining Industry’ webinar, held on February 28.

JSE-listed AECI, which is undergoing far-reaching restructuring to re-focus on its core mining and chemicals businesses and reduce debt, reports strong initial interest in the six noncore companies that it plans to dispose of over the coming 18 months for combined proceeds of about R2.5-billion. CEO Holger Riemensperger insists that there will be “no fire sale” and reports that a comprehensive disinvestment roadmap has been finalised for Much Asphalt, Animal Health, Schirm, Sans Fibers, Beverages and Public Water.

Canadian miner Eastport Ventures has appointed Robin Birchall CEO effective immediately. He brings to the board more than 20 years of experience in the investment banking sector within the mining sector. He has also helped develop junior mining companies to material stages, including feasibility study and final investment decisions.

An African Underground Mining Services (AUMS) employee died on Tuesday at the Mana mine in Burkina Faso. AUMS, a subsidiary of ASX-listed Perenti, is the underground mining contractor for Endeavour Mining at the Mana operation.

JSE-listed Salungano Group has advised that its indirect subsidiary Keaton Mining has filed for business rescue. Keaton Energy Holdings, which is a wholly-owned subsidiary of Salungano and the parent company of Keaton Mining, had been engaging with creditors to reach a compromise in terms of the Companies Act, which yielded positive results, barring one creditor which chose to proceed with a provisional liquidation application against Keaton Mining.

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.)

Finalising funding solutions for the expedited expansion of South Africa’s electricity transmission grid has been identified as a key priority for the Just Energy Transition (JET) project management unit (PMU), which is located within the Presidency. The unit is overseeing the implementation of the country’s JET Investment Plan (JET-IP), which was approved in 2022 with the goal of stimulating R1.5-trillion (about $80-bilion) in clean electricity, new energy vehicles and green-hydrogen investments, while also supporting workers and communities whose lives and livelihoods will be made vulnerable by the transition.

London-listed URA has raised £475 000 through the issue of 23.75-million shares at a price of 2p apiece to use as working capital for its 74%-owned Gravelotte emerald mine, in South Africa. "We are delighted to announce this successful institutional placing. This significant increase in their investment by well-known UK institutions is a testimony to the quality of our assets, our team and the progress we have made and will continue to make as we not only start production but focus on post production activities like sales, marketing and expansion.

ASX-listed Ionic Rare Earths has identified 69 holes with clay-hosted rare earth intersections above the current resource cut-off across three licences at the Makuutu rare earths project, in Uganda. The 69 confirmed holes formed part of a 76-hole rotary air blast drilling programme as Phase 5 on the 00147 and 00257 exploration licences, as well as the 00007 retention licence.