Mining Weekly

Diversified mining major BHP on Thursday announced a proposed all-share offer that values Anglo American at £31.1-billion. The deal has the potential to transform the mining industry landscape. BHP offered Anglo shareholders £25.08 a share, including £4.86 a share for Anglo American Platinum (Amplats) shares and £3.40 a share for Kumba Iron Ore shares.

Copper needs to reach $12 000/t — a 20% jump from this week’s high — to incentivize large-scale investments in new mines, said Olivia Markham, who co-manages the BlackRock World Mining Fund. The metal’s price hit a two-year high near $10 000, but Markham said further gains are necessary to encourage miners to sign off on projects required to avoid major deficits during the energy transition.

Aim-listed mining development company Ironveld has entered into a further working capital loan facility agreement with shareholder Tracarta, in which Ironveld chairperson John Wardle has a beneficial interest. The facility agreement enables the company to draw down up to £125 000 on equivalent terms to the existing loan facilities with Tracarta and has a term of six months.

The World Diamond Council’s (WDC’s) revised System of Warranties (SoW) is set to reach its first critical deadline on September 21, when it becomes obligatory for all rough diamond sales.   “We strongly urge all companies, but especially . . . rough diamond traders, to transition to the revised SoW, if they have not done so yet, to be ready for the September 21 deadline,” WDC executive director Elodie Daguzan said on April 24.

Fast advancing copper producer Copper 360 has shipped copper concentrate from South Africa’s Northern Cape province for the first time in 21 years. South Africa’s only listed pure copper producer, which delivered record concentrate grades during plant commissioning, is performing way ahead of expectation as a producer of copper concentrate, as well as being the Northern Cape’s only producer of copper cathode.

The green hydrogen sector now has a digital platform on which users can buy and sell green hydrogen by the click of a button, it was announced on Tuesday.  Euronext-listed Lhyfe, the French group devoted to energy transition, has begun taking of orders for green hydrogen in Europe and facilitating contacts between buyers and sellers. (Also watch attached video.)

NYSE- and JSE-listed petrochemicals company Sasol says its energy business benefitted from higher basic fuel prices, as well as improved refining margins towards the end of the nine months ended March 31, which helped to offset operational headwinds at the group’s mining and Secunda operations. Sasol’s mining productivity has improved albeit at a slower pace than expected. The group expects to meet the lower end of its coal productivity guidance range of between 975 t and 1 100 t per continuous miner per shift for the full-year ending on June 30.

Anglo American subsidiary Kumba Iron Ore has reported a 10% year-on-year decrease in sales to 8.5-million tonnes for the quarter ended March 31, on the back of port performance challenges. About 400 000 t of shipments have been rolled over to the second quarter as a result.

JSE-listed copper miner Copper 360 has informed shareholders that it has noticed "unusual and uncommercial" trades in its shares, resulting in a substantial drop in its traded price. "The trades in question have continued on a systematic and sustained basis for a period of several weeks," it says in a notice published on the JSE's Stock Exchange News Service.

Copper production increasing by 11% as Quellaveco achieved its highest plant throughput rate in Peru, and Collahuasi and El Soldado in Chile benefitting from higher copper grades were among the first-quarter performance aspects that pleased diversified mining company Anglo American in the three months ending March 31. “We’re driving operational excellence across our assets, focusing on stability and effective cost management as levers to deliver significant value through the cycle,” Anglo CE Duncan Wanblad highlighted in a release to Mining Weekly on Tuesday.

Platinum group metals (PGM) miner Anglo American Platinum (Amplats) has reported a decrease in 5E metal-in-concentrate production of 7% to 834 100 oz for the quarter ended March 31, compared with the 901 200 oz produced in the same quarter of last year. Notably, the group’s own-managed PGM production decreased by 6% year-on-year to 504 300 oz, while the purchase of PGM concentrate decreased by 10% year-on-year to 329 000 oz.

Diamond miner De Beers, a subsidiary of diversified miner Anglo American, has lowered its production guidance for the 2024 full-year to between 26-million and 29-million carats in response to the higher-than-average levels of inventory in the market and expectations of only a gradual recovery in demand for rough diamonds. It had previously targeted production of 29-million to 32-million carats this year.

Zambia's State-owned electricity utility Zesco said on Monday it is seeking to import power to avert an energy deficit that could affect output in Africa's second-largest copper producer. The southern African country generates 86% of its electricity from hydropower stations. Power generation has been hit by a severe drought induced by El Nino - a weather phenomenon resulting from the abnormal warming of the waters in the eastern Pacific, which raises temperatures globally.

Diversified mining company Anglo American is taking steps to help to restore an Amazon rainforest equivalent of which less than 10% remains intact. The Mata Atlántica carbon forest is located near Anglo’s Minas-Rio iron-ore mine, in Brazil.

The richness of South Africa’s copper assets were emphasised on Monday when Northern Cape mine developer and explorer Orion Minerals published a standout intercept that sent its shares rocketing up 58% on the Australian Stock Exchange (ASX). Orion, headed by CEO Errol Smart, is primarily listed on the ASX, where it has 1 300 shareholders, and secondarily listed on the Johannesburg Stock Exchange (JSE), where it has 28 000 shareholders.

JSE-listed Merafe has reported that its attributable ferrochrome production from the Glencore Merafe Chrome Venture in the first quarter ended March 31 was 77 000 t. This represents a 26% decrease from the 103 000 t produced in the first quarter of 2023.

The Johannesburg High Court on April 19 granted permission to appeal an earlier ruling denying class action certification for 140 000 women and children in Kabwe, Zambia, who allege they have suffered the effects of lead poisoning as a result of a mine formerly owned by Anglo American in the country. In granting permission, Justice Leonie Wendell found that an appeal against her earlier judgment had “reasonable prospects of success on at least one ground of appeal” and that there were “compelling reasons to grant the appeal, as class action law is still being developed in South Africa”, and that “there are current matters of law of public importance which directly implicate constitutional rights”.

Diversified miner South32 has reported an overall improvement in its operating results for the March quarter and record year-to-date production at Hillside Aluminium, in KwaZulu-Natal, and South Africa Manganese, in the Northern Cape, along with a 60% increase in quarterly volumes at Illawarra Metallurgical Coal, in Australia. The group confirmed that its operating unit cost guidance for the 2024 financial year will remain unchanged, with the exception of the group’s Australia Manganese operations, which were affected by the impacts of tropical cyclone Megan.

ASX- and Aim-listed Base Resources and US-based uranium and critical minerals producer Energy Fuels have reached a binding agreement for Energy Fuels to acquire 100% of the issued shares in Base Resources by way of scheme of arrangement. Base shareholders are to receive 0.0260 Energy Fuels common shares plus an unfranked special dividend of A$0.065 for each Base share held, equating to total consideration of about A$0.302 a share.

London-listed Gem diamonds has recovered a 169.15 ct Type II white diamond from the Letšeng mine, in Lesotho. The find marks the fourth diamond greater than 100 ct that Gem has recovered in the year-to-date.