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  1. 7 HRS AGO

    Strong cash generation enabling Harmony to fund a future in both gold and copper

    This audio is brought to you by Endress and Hauser, a global leader in process and laboratory measurement technology, offering a broad portfolio of instruments, solutions and services for industrial process measurement and automation. South Africa's largest gold-mining company Harmony Gold is building a resilient portfolio by investing continuously in its orebodies while growing in copper to protect cash flows through the commodity cycle, Harmony Gold CEO Beyers Nel highlighted during the JSE-listed group's declaration of record interim dividend payout of R3.4-billion. The dividend involves a total payout of 43% of net free cash and an increase of 23% over the previous dividend policy, which is now revised to allow for up to 50% of net free cash to be returned to shareholders, Harmony FD Boipelo Lekubo outlined at the presentation, which reported 9% lower half-year gold production of 724 000 oz and 21%-higher all-in sustaining costs of $2 115/oz. (Also watch attached Creamer Media video.) "The cash we're generating today is enabling us to fund a future in both gold and copper," an upbeat Nel reported during the well-attended presentation covered by Mining Weekly. The operating profit of Harmony, which is a geographically diversified producer with assets in South Africa, Papua New Guinea and Australia, was up 61% at R16-billion on 11% lower but in-line underground recovered grade of 5.72 g/t. Basic earnings per share were up 24% at 1 563c. Harmony's portfolio is underpinned by 136-million ounces in mineral resources and about 37-million ounces of mineral reserves providing scale, longevity and optionality. "Gold remains our core, while copper is our strategic growth lever," Nel explained. Harmony plans to bring 100 000 t of copper online a year from Australia within the next few to five years. "Guided by long life asset optimisation and disciplined capital allocation, we prioritise value over volume to build a more profitable and sustainable Harmony over the long term. "We're not targeting a fixed copper-to-gold ratio. Our decisions are driven by fundamentals, economic value and reserve strength. By financial year 2035, 40% of production may be copper from Eva and CSA, both in Australia, and from Wafi-Golpu in Papua New Guinea, "complementing our South African gold base and enhancing resilience and also margins. Operational fundamentals remain firmly intact, despite some short-term headwinds," Nel noted. The lower 724 000 oz of gold reported for the reporting period was impacted by an industry-wide cyanide shortage and lower plant recoveries in South Africa. Although underground recovered grades decreased by 11% to 5.7 g/t, face grades mined were in line with our plans, and plant recoveries have reportedly now also normalised. Hidden Valley's production in Papua New Guinea was affected by a tectonic-related mill motor failure and gold shipping delays, which impacted the amount of gold sold during the period. Group all-in sustaining cost rose to R1.18-million per kilogram, or $2 115/oz, owing to lower volumes and much higher royalties paid. "I'm confident that we'll remain on track to meet full-year production cost and grade guidance. We're generating strong free cash flows. On the back of consistent strong operational and financial results, we've revised our dividend policy to reflect the higher base dividend and additional performance related payout. This means shareholders could receive up to 50% of net free cash as a dividend. "Our interim dividend has more than doubled, rewarding our shareholders alongside our growth aspirations. "Copper and gold are both intrinsically important to us, and Harmony is well positioned for growth," said Nel. Harmony's lost time injury frequency rate reached an all-time low of 4.23 and has remained below five for three consecutive quarters now. "We are deeply saddened by the loss of our colleague in the second quarter, because any loss of life is unacceptable and reinforces the need for cont...

    10 min

  2. 1 DAY AGO

    Turn wealth beneath soil into prosperity for all, Minerals Council CEO pleads

    This audio is brought to you by Endress and Hauser, a global leader in process and laboratory measurement technology, offering a broad portfolio of instruments, solutions and services for industrial process measurement and automation. South Africa's mining sector must be a national economic priority so as to unleash its inherent and powerful multiplier effects, make inroads into high levels of unemployment and contribute to industrialisation to maximise South Africa's latent mineral potential, driving transformation and social prosperity. This can be achieved through targeted incentives and reducing the cost of doing business, Minerals Council South Africa CEO Mzila Mthenjane outlined in an in-depth article on March 10. Prospects for growth of the sector's medium- to long-term profile of production are not immediately promising, which is disappointing and frustrating given the huge contribution it continues delivering to the fiscus and society despite the multiple constraints under which it has, and continues to, operate. Only in recent years have these constraints received the attention they demand, but not with the urgency required to expedite investment in mineral exploration, new mine construction and longer-term sustainability of existing operations. Given the government's continued social expenditure to avert social distress and deliver services and infrastructure - and mining's ability to deliver, ensure its future growth and leverage its employment multipliers - the sector has an important role to play in South Africa's future social security. The turnaround in prices for gold and platinum group metals (PGMs) underpinned the 2025 fiscus, contributing to the R21.3-billion increase in gross tax revenue. Mining tax collections increased 29%, mainly from higher gold and PGM prices and increased chrome and manganese exports. However, the ambition is for growth in production output, which accounts for real expansion of the sector and results in higher and broader benefits, at elevated prices, for the country through increased employment, arresting deindustrialisation and expanding manufacturing inputs for new mines, related infrastructure and broad-based tax revenue earnings for the fiscus. The mining sector stands at a pivotal moment. Long recognised as a bedrock of the economy, it faces intense pressures and unprecedented opportunities in the local and international transition to a low-carbon future, rich with rapid technology advances requiring the minerals we have in abundance. South Africa remains uniquely advantaged despite the noisy environment: endowed with magnificent qualities and diverse mineral resources, supported by a maturing public-private problem-solving partnership, a functioning constitutional democracy, advanced financial and capital markets and a youthful population, it is positioned to supply the minerals to power global energy and technology transitions from revitalised exploration and mine development. The mining sector stands at a pivotal moment. Long recognised as a bedrock of the economy, it faces intense pressures and unprecedented opportunities in the local and international transition to a low-carbon future, rich with rapid technology advances requiring the minerals we have in abundance, Mthenzane noted. Decisions made now by the government, industry leaders, investors and social partners will determine whether South Africa leverages this once-in-a-generation moment to rebuild economic momentum, or risks missing this opportunity to transform the lives and restore the dignity of our citizens. The mining sector continues to demonstrate its resilience and centrality to South Africa's economic engine. Estimates based on data for the first three quarters of 2025 suggest that mining contributed R439-bn to nominal GDP, representing 5.8% of economic activity, and paid more than R100-billion in taxes, royalties and VAT. Mineral exports accounted for roughly 52% of merchandise export earnings, undersco...

    6 min

  3. 1 DAY AGO

    ARM's Bokoni platinum project's prospects are continuing to excite

    This audio is brought to you by Endress and Hauser, a global leader in process and laboratory measurement technology, offering a broad portfolio of instruments, solutions and services for industrial process measurement and automation. The definitive feasibility study for the Bokoni platinum group metals (PGM) project is targeted for completion in this half of 2026, followed by an investment decision, African Rainbow Minerals (ARM) CEO Phillip Tobias reported during ARM's latest half-year presentation. "We're still very excited about the quality of the orebody, the grade that it has, and all that it can bring," Tobias enthused. Following the suspension of ore mining and milling at the end of ARM's 2025 financial year, the operation has prioritised ore reserve development to allow high-grade stoping production. The independent value engineering review that is under way will be followed by a presentation to the board for an investment decision to be taken. For the required narrow-reef-cutting technology, ARM is partnering German tunnel-boring machine company Herrenknecht, and South African reef-boring solutions company Master Drilling of Fochville. The decline shaft heads directly into upper group two (UG2), the preferred higher-grade reef. Mining Weekly's request during question time for an update on the Bokoni project elicited this response: "We're making good progress. However, there are some teething challenges because the ground where we are is still quite soft, so we're basically going slowly. "But in terms of the profile of the excavation that's developing, it really shows that if we sort out those teething issues, it will yield some positive returns. We're just waiting to see consistent grade performance, so that we can report the positive results. "We've incorporated lessons that we picked up from Mogalakwena and also from Eland and, as a result, we're really looking forward to improved performance," Tobias added. In response to a question put by Integral Asset Management mining analyst Bruce Williamson about when Bokoni would achieve its targeted 120 000 t steady state, Tobias recalled that Bokoni's earlier 60 000 t lower-grade effort had proved unviable and that the new way forward was the chosen higher-grade 120 000 t throughput level. ARM COO Jacques van der Bijl's elaboration on the 120 000 t throughput decision included the pointing out that most labour-intensive PGM mines have relatively high fixed costs that require minimum ounce production levels to cover those fixed costs and ensure cash competitiveness. "However, the benefit that Bokoni has is the high in situ grade," Van der Bijl pointed out When Bokoni's grades of 6.5 g/t to 7 g/t are fed into the mill, the number of ounces that can be produced – even at the 120 000 t level – are very comparable to what is currently being produced at ARM's Two Rivers and Modikwa PGM mines, which have considerbly higher throughput, which, he said, places Bokoni in a "very strong" position to survive the price cycles and be economical over the 20-year lifespan currently being planned for Bokoni. Moreover, the upfront capital required is considerably more moderate. "We're in the process of finalising and just doing third party value engineering, and we should be able to provide further clarity at the next reporting session," Van der Bijl explained. The UG2 focus carries with it a mineral resource grade 30% higher than Merensky reef and benefits from lower geological losses. Ore mining and milling operations were suspended at the end of ARM's 2025 financial year as lower-grade on-reef development, combined with a milling capacity limited to 60 000 t proved insufficient to offset fixed costs and maintain profitability. This decision allows Bokoni to focus capital and strategic efforts on off-reef ore reserve development. Looking ahead, Bokoni's future lies in a higher- grade, phased development path. Given the steeper dip of the orebody, the mining method has been revised to a...

    5 min

  4. 2 DAYS AGO

    70% energy cut by South African smelt technology is 'huge achievement' – researcher

    This audio is brought to you by Endress and Hauser, a global leader in process and laboratory measurement technology, offering a broad portfolio of instruments, solutions and services for industrial process measurement and automation. The 70% reduction in electricity used by the SmeltDirect technology is a huge achievement, a giant leap forward, Phoenix Research's David Roche-Kelly remarked following the update on the local technology during question time at Friday's results presentation of African Rainbow Minerals (ARM). The Proudly South African smelting technology of the Johannesburg Stock Exchange-listed ARM, headed by founder and nonexecutive chairperson Dr Patrice Motsepe, enables three times more product to be produced using the same amount of electricity. "We're ready for commercialisation. We've done all the testwork, and we're very confident that our technology will work and that we can smelt alloys using up to 70% less electricity," African Rainbow Metal Technologies (ARMeT) CEO Andre Joubert said in response to Mining Weekly's request for an update on SmeltDirect, which opens the way for South Africa's ores to be processed in South Africa, by South Africans for the benefit of South Africans. Unlike the 4 MW required by conventional systems, only 1.2 MW of electricity is needed to produce a ton of alloy using SmeltDirect, and some 700 jobs are created for every 200 000 t of alloy produced a year. As a result, SmeltDirect has attracted global attention. "South Africa is at a pivotal juncture. It can choose to remain a supplier of raw commodities that enrich other countries or become a global leader in mineral-based industries. Beneficiation is not just an economic strategy – it's a national imperative to turn the wealth in the ground into wealth for our population," former UK-based globally rated metals and mining analyst and portfolio manager, Shamim Mansoor, now based back in South Africa, emphasised in an interview with Mining Weekly. SmeltDirect also halves carbon emission and takes users down the cost curve in not only ferroalloy production but also the revival of lost steel opportunities. "As communicated in our previous update, the feasibility study for the commercialisation of SmeltDirect at Machadodorp for the production of 300ktpa of ferrochrome has now been completed, following the successful demonstration of the technology on the smelting of chrome ores," Joubert added in a written update on SmeltDirect to Mining Weekly. However, it should be noted that the projected financial returns are currently constrained by prevailing macroeconomic factors, most notably the exchange rate environment. In the absence of deliberate and targeted government interventions to address these structural challenges, it will remain difficult for any producer to sustainably manufacture ferroalloys in South Africa – even when deploying a breakthrough technology such as SmeltDirect, which will be the lowest cost producer in South Africa. "Our current demonstration operations at Machadodorp are, in the near term, focused on the production of manganese alloys and a range of specialised steel-grade alloys. These initiatives are being pursued in collaboration with a number of local and international partners," Joubert pointed out. There is known to be significant interest from international partners wanting to partner ARMeT to accelerate the commercialisation of SmeltDirect, which has managed to survive ARM's strict financial discipline. Those closest to SmeltDirect emphasise that strong positivity continues to surround it because of the depth of its energy reduction and promise of its better environmental friendliness. Advantageously, SmeltDirect can also be spread to a return of the local production of high-manganese rail and the introduction of greener steel. Already bankable, SmeltDirect allows for fossil fuel reductants to be replaced with biocarbon. The SmeltDirect update arises amid the Glencore-Merafe Chrome Venture having ...

    7 min

  5. 5 DAYS AGO

    Let's make South Africa best place, says Motsepe as he bows out as ARM exec chair

    This audio is brought to you by Endress and Hauser, a global leader in process and laboratory measurement technology, offering a broad portfolio of instruments, solutions and services for industrial process measurement and automation. Let's make South Africa the best possible place. The future looks very, very bright, African Rainbow Minerals (ARM) founder Dr Patrice Motsepe said on Friday at the close of ARM reporting a good set of half-year financial results. Motsepe, who has ceased being executive chairperson of the Johannesburg Stock Exchange-listed diversified mining company but will continue in a non-executive capacity, pledged that ARM would continue to play its role in building a future for all South Africa, black, white, coloured and Indian South Africans. Following ARM reporting 10%-higher half-year headline earnings of R1.6-billion plus an interim dividend of R5 a share, Motsepe committed ARM to continue its practice of making donations to all political parties. It would maintain the historic relationships across the board, "because we're all South Africans and I think good political parties always listen to the voters of other political parties, and there's always something to them." Building a future for all South Africans – "black South Africans, white South Africans, coloured South Africans, Indian South Africans" – would be ongoing, he promised as the presentation, covered by Mining Weekly, drew to a close. "We must continue to be positive and optimistic. This country has got such incredible, incredible people, and I've never been more confident, and I'll tell you partly why. "It's because we grew up in societies where your existence, your credibility, was amongst the poor, was amongst the marginalised, the unemployed. "We've educated more than 5 000 students through the Family Foundation and many other things over many years, because we always understood, stay with the people on the ground. The joy we derive is in these relationships with vulnerable people," he told the audience, which included his wife Dr Precious Moloi-Motsepe and their sons. "This company has to remain a world-class company, and we have to make sure of that for all shareholders, whether in South Africa or worldwide. "They don't have to buy the shares of African Rainbow Minerals. They can buy the shares of other companies. We have to give them a reason that they should have confidence in ARM and keep buying ARM shares because we give them competitive and, in some respects, superior returns. "Over the years, we've employed the smartest and the brightest, black, white, coloured and Indian South Africans, and will continue to do so. "As a company, we have a huge obligation to all stakeholders, the communities where we live and the country as a whole," Motsepe added. ARM ended the half year with net cash of R8 464-million compared with R6 609-million in the same period last year. Basic earnings increased by 69% to R2 353-million or R12.20 per share and revenue was up 32% to R8 399-million. Two Rivers platinum mine achieved three million fatality-free shifts and the ARM Ferrous division reached more than one million fatality-free shifts.

    3 min

  6. 5 DAYS AGO

    Martin Creamer talks about: Platinum demand, hydrogen economy

    Mining Weekly Editor Martin Creamer discusses robust investment demand for platinum in 2026; the ‘encouraging’ recent developments in China’s hydrogen economy; and Africa’s envisaged hydrogen mobility build-out potential.

    6 min

  7. 6 DAYS AGO

    Shift in global order providing opportunity to strengthen platinum industry

    This audio is brought to you by Endress and Hauser, a global leader in process and laboratory measurement technology, offering a broad portfolio of instruments, solutions and services for industrial process measurement and automation. The world's current extraordinary times are providing South Africa's platinum group metals (PGM) companies with an extraordinary opportunity to focus on how to strengthen themselves. Consensus is widespread that a new era is upon us. Trade paths are changing and the move from globalisation to multi-polarity accelerating. With 80% of the world's PGMs supplied from Southern Africa, engagement with other jurisdictions is under way to determine the extent to which relationships can be formed to provide security for long-term supply. While demand for PGMs has risen, certain supply risks are being acknowledged amid historical levels of investment in future supply lapsing. The shift in world uncertainty, combined with shifts in fundamental markets, has given cause for PGM prices to rise. As a consequence of the nature of the major forces, consensus is widening that price support currently underway will outlast the current White House administration and is requiring the PGM mining and marketing industry to organise South Africa and Southern Africa very differently for a generation to follow. "It is our belief that this current upswing in prices will remain longer than has been the case in the past, where we saw relatively short summers following very long winters," Implats CEO Nico Muller emphasised during the Johannesburg Stock Exchange-listed company's stunning set of half-year financial results of 180% better earnings before interest, taxes, depreciation and amortisation (Ebitda) of R18.1-billion, a fivefold increase in headline earnings of R9.3-billion, and free cash flow of R7-billion. Implats closed the period with an adjusted net cash balance of R12.1-billion and R28.8-billion in liquidity headroom. Dominating the results were production performance at mine and PGM processing levels and the 40% increase in the rand basket price. "If you look through all of the financials, the entire PGMs industry is looking a lot more attractive than what it did in the previous period. "Given the fact that we are where we are in terms of metal prices and then increase in revenue, Ebitda and cash flow, it does provide us with a really important opportunity, and that is to change our strategic focus in the company. "During the lean years, we are very defensive. We focus on cost control, capital management. "We now have the opportunity to focus on how to strengthen the company and there is a pipeline of opportunity," Muller outlined at the presentation covered by Mining Weekly. Starting off at the most basic level are a number of early action programmes to initiate life extension projects. These have occurred at the Two Rivers mine, Marula mine and at some of the shafts at Impala Rustenburg. Already approved is R1-billion for Rustenburg's 14 Shaft that will provide mine life extension. "I'm very confident that some of the other early works programmes that we've initiated will result in approval of additional capital," Muller commented. Roughly, a three-year extension to the current steady state 3.5-million PGM ounces a year production profile is on the cards. Thereafter, additional initiatives will be required. Part two is the far-reaching optimisation of the South African PGM industry as a whole, firstly through the sharing of infrastructure. "We will open up some processing capacity to share in the industry and we do believe it's critically important for Southern Africa to protect local beneficiation of the metals, and so I think that the opportunity to do so will increase as we go forward. "Then there are the normal cross-boundary opportunities that always exist. An example of one of the areas that we battle with in the industry is the eastern limb of the Bushveld Complex. We need to reimagine what the eastern ...

    5 min

  8. 6 DAYS AGO

    Solar power for Marula and Rustenburg platinum mines being sought by Implats

    This audio is brought to you by Endress and Hauser, a global leader in process and laboratory measurement technology, offering a broad portfolio of instruments, solutions and services for industrial process measurement and automation. Platinum group metals (PGM) mining company Implats is looking at solar for the Marula PGM mine and also the Rustenburg operation, the company reported during a media roundtable on Thursday, March 5. This follows Implats' renewable electricity supply agreement with Discovery Green, which will supply up to 90% of Impala Refineries' electricity demand through a combination of solar and wind generation. First Discovery Green power is expected in the second half of the 2026 calendar year. Regarding green power for Marula and Rustenburg, Implats COO Patrick Morutlwa said in response to Mining Weekly's question that the plan no longer involved the company itself building solar facilities. "We've shifted the model a little bit. We're not now looking to build our own facilities. We look at wheeling agreements, as you have seen what we've done with Discovery Green for our refineries. So, for Rustenburg and Marula, we're looking for the same kind of arrangement," Morutlwa explained. "Discover Green's still part of the pool of people we're talking to but for Rustenburg, we're speaking to Royal Bafokeng – they are keen to undertake that type of a project with us guaranteeing an offtake agreement with them. So, we are speaking to several players in industry." Mining Weekly: And how much megawattage are you looking at? Morutlwa: For Rustenburg about 50 MW and Marula about 30 MW and, as you know, for the refineries, it's for Discovery Green to supply about 90% of the baseload. As reported by Mining Weekly last month, Discovery Green signed a five-year power purchase agreement with Implats on January 27, with the electricity being sourced from multiple wind and solar facilities that are being advanced to construction by independent power producers (IPPs) in various South African provinces, with the first wheeled electricity for Implats expected by the end of 2026. Discovery Green is entering into exclusive procurement contracts with the IPPs (mostly wind generators) with the intention of supplying the electricity to multiple customers pursuing both decarbonisation objectives and price-path certainty. The Scope 2 greenhouse-gas emissions at Implats' refinery in Springs are expected to be reduced by more than 852 000 t over the period, with 130 000 MWh of electricity delivered yearly at a tariff that is decoupled from Eskom's rising tariffs. ZIMBABWE In Zimbabwe, Zimplats' first 35 MW of its intended 185 MW solar power complex reached design capacity during the half-year, and construction has commenced on the $54-million, 45 MW second phase of the Zimplats solar project, which remains on track for technical completion in August 2026. Once commissioned, the plant will supply an additional 110 GWh of renewable energy annually and reduce emissions by 69 396 t CO2e per year. Renewable electricity use remained steady at 31% against a target of 35%, as prolonged droughts in Zimbabwe and Zambia continued to constrain hydropower supply from Zambian national power utility Zesco. Despite a moderate rise in electricity consumption associated with commissioning the Zimplats smelter, both scope 1 and 2 carbon emissions of 1.66 t CO2 per six-element (6E) ounce and energy use of 8.08 GJ per 6E ounce were largely unchanged compared with the prior period, owing to increased 6E output.

    3 min
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MiningWeekly.com provides real time news reportage through originated written & video material. Now you can listen to the top three articles on Mining Weekly at the end of each day.

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