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  1. 21H AGO

    Master Drilling's novel developments are set to move needle for South African mining

    This audio is brought to you by Astec Industries, a Global Leader in manufacturing equipment for infrastructure, including asphalt production, construction, and material processing, driving innovation and sustainability. Three major developments, which are poised to move the needle for South African mining, were outlined to Mining Weekly by the Johannesburg Stock Exchange-listed drilling and mechanised rock excavation technology company Master Drilling, when it reported 399%-higher half-year after-tax profit of $18.1-million on Tuesday, following a partial impairment reversal. The Proudly South African Far West Rand original-equipment manufacturer, with an order book of $306-million on a revenue pipeline of $515-million spread across 28 countries on five continents, highlighted the first of its three major developments as its ready-made new shaft boring system (SBS) that points to drilling a shaft to depth in half the time. The second is a mobile tunnel borer (MTB) machine that is paving the way for the third - a narrow-reef rock cutter that will maximise extraction and minimise waste from an orebody that is currently not economically viable using conventional mining methods. (Also watch attached Creamer Media video.) The SBS eliminates the need for conventional blasting in hard rock material; the MTB is destined to tunnel for some distance at the Bokoni platinum mine of African Rainbow Minerals (ARM) in Limpopo; and the third is a narrow reef cutting advancer with the likely ability to halve the development of a mine, for example ensure that what would conventionally be a 600 000 t mine is a 300 000 t mine - but with the same number of ounces produced. Master Drilling CEO Danie Pretorius told Mining Weekly in a Zoom interview: "Quoting some of the ARM management, dilution in the industry is a cancer, so if we can reduce dilution and get the on-reef cutter on autopilot, I really think that's going to come with a lot of value such as transporting less through the mine, reduced plant size, less energy requirement for the plant, and the list goes on." (Also watch attached Creamer Media video.) The contract negotiations have been finalised and operations are expected to start in the fourth quarter of 2025, with hot pursuit to achieve key performance indicators (KPIs). Mining Weekly: How will you make it possible for the currently inaccessible narrow-reef upper group two - UG2 - reef to be extracted at Bokoni? We'll tunnel with the MTB for some distance, and then follow with on-reef cutting. No doubt, certain modifications will probably be done as we progress but we see this as our rock factory, and we're not using drilling and we're moving away from explosives, which obviously, for the miners, would mean continuous operation, which we're really excited about. If we can hit those KPIs with the client, it's going to really add a lot of value in the industry. PUT TO THE TEST The SBS, which is designed to bore shafts with diameters of 4 m to 11.5 m, depending on client requirements, has bored a 4.3 m shaft to depths of up to 100 m using a cutter head specifically developed to drill through extremely hard rock, such as 320 MPa norite. What was Master Drilling's top highlight of the six months to June 30? The successful commissioning of the SBS here at the site, close to our offices. I really think this could probably move the needle for the miners of the deeper orebodies that we need to get to quicker. We need to take the next step here to increase the size from 4.2 m to larger than six metres, which is work in progress. But I think this was probably, in our business, top of mind for the last six months. So, what we're busy with are the SBS, the MTB and the on-reef cutter, that's what the industry needs today. What was the reversal of the impairment all about? It's more of an IFRS accounting entry that happened last year. We cleared site at Mogalakwena early last year and unfortunately had no committed mid-year work for the machine....

    8 min

  2. 1D AGO

    Another public-private rail transport service agreement signed

    This audio is brought to you by Astec Industries, a Global Leader in manufacturing equipment for infrastructure, including asphalt production, construction, and material processing, driving innovation and sustainability. Another agreement involving collaboration between the public sector and the private sector in the field of rail transport service has been signed, this time between the Johannesburg Stock Exchange-listed Exxaro Resources and State-owned company Transnet Freight Rail (TFR). Acting through its operating division, TFR has entered into a formal service agreement under the existing long-term agreement between the parties. In terms of this agreement, Transnet and Exxaro will collaborate to improve the performance of its logistics channels, including to contribute to Exxaro's Leeuwpan coal mine turnaround plan. The agreement outlines clear performance expectations and joint planning initiatives to enhance rail capacity and optimise long-term logistics. This aligns with Exxaro's commitment to operational efficiency and long-term sustainability, Transnet's mandate to ensure the security of logistics supply, and supports the national objectives of strengthening South Africa's trade and logistics. Exxaro CEO Ben Magara expressed the belief that this service arrangement strategically unlocks value for Exxaro and capacitates sufficient strategic levers for the group. "The agreement is good for the national economy and specifically, Transnet's commitment to assist Exxaro in minimising job losses and sustain mine viability," Magara stated in a release to Mining Weekly, in which he thanked Transnet for the constructive manner in which this agreement had been reached. Transnet group CEO Advocate Michelle Phillips said: "We're confident that this agreement will unlock significant value not only for Transnet and Exxaro, but for the broader industry and economy. "It reflects a shared commitment to rebuilding trust and delivering on our respective mandates for the benefit of all stakeholders," Phillips added. This partnership reaffirms both entities' commitment to restoring and enhancing rail performance, promoting economic growth, and driving competitiveness and long-term sustainability within the mining and transport sectors. The agreement follows Transnet and Hotazel Manganese Mines signing a ten-year contract under the third phase of the Manganese Export Capacity Allocation framework as well as Transnet and United Manganese of Kalahari signing a ten-year contract for the transportation of manganese by rail from UMK's mine in the Northern Cape also under the Manganese Export Capacity Allocation agreement. Moreover, Minister Barbara Creecy last week announced that 11 of the 25 private train operating companies that applied to operate routes on Transnet's rail network had met the requirements to do so and would now be entering into contract negotiations to enable them to gain access to the network and begin operating the routes - an announcement that represents a significant step in opening South Africa's freight rail network, which has hitherto been monopolised by State-owned Transnet, to third-party operators.

    3 min

  3. 4D AGO

    Self-generation of solar power catalysed DRDGOLD's strong new growth thrust

    This audio is brought to you by Astec Industries, a Global Leader in manufacturing equipment for infrastructure, including asphalt production, construction, and material processing, driving innovation and sustainability. There's a wonderful gold-price tailwind behind all gold companies at the moment but it's the self-generation of solar electricity that served as the catalyst of change for Ergo. Following the company's declaration of a doubled final 2025 cash dividend on 69% higher cash operating profit and earnings, revenue touching R8-billion and strong free cash flow, Mining Weekly spoke to DRDGOLD CEO Niël Pretorius in a Zoom interview. (Also watch attached Creamer Media video.) "The self-generation of solar electricity was the catalyst and what the gold price is doing for us at the moment is helping us to make the changes that are necessary to extend Ergo's LoM - and they are very much focused around alternative deposition storage capacity. "The gold price cycle has prompted a new direction in the thinking of DRDGOLD, in the sense that the initial capital invested was premised on a mining programme of 12 years and it was going to start running out of steam roughly four years ago, when decommissioning would have started. "But instead, the decoupling and rebasing of gold relative to other economic drivers and indicators pointed to closing perhaps being premature because there were still a lot of resources left. "It's just that those resources were deemed non-viable, and DRDGOLD had to take a very long and hard look at the cost construct of Ergo. "One of the things that really got in the way was the uncertainty with regards to the supply and the cost of electricity and if the company could find a solution for that, then many of the other things we'd be able to do by way of engineering solutions. "So, we decided on the 60 MW solar farm, which was duly built, and that was coupled to the battery energy storage system, which is a 180 MW storage system, which means that we could basically run Ergo and related infrastructure for 12 hours a day on renewable energy. "It's like a halving of Ergo carbon footprint, and it brought down the risk categorisation. It changed the risk profile of Ergo because electricity moved from number two to a lot lower down in the risk hierarchy of Ergo. "Brakpan tailings dam, which has been around since 1984, has to all intents and purposes served out its term as a useful facility. "It's now not quite in a decommissioning phase, although we've reduced deposition onto that dam from 2.1-million tons per month back in 2022 down to 1.65-million tons per month, and it will progressively be reduced even further. The focus point for Ergo is to create new deposition space and to resume deposition on Daggafontein, which is another available deposition facility, that at 500 000 t a month can be used for another 20 years. "The gold price is helping us to do that. We could spend all of this capital, at Ergo about R4-billion over the next few years, without having to dip into our facility, and the same applies to Far West Gold. "We've been talking about Far West Gold Phase 1 and Far West Gold Phase 2 since the early days of acquiring Far West Gold and we're now executing on Phase 2. "We're doubling the size of the plant from a design capacity of 600 000 t a month to 1.2-million tons a month and under way is the construction of the Regional tailing storage facility, the RTSF, which is an 800 ha facility that's going to be fully lined. That's been going since June of last year, and that's going along really well. "There have been some rain interruptions and so forth, but that facility is going to facilitate a change in throughput profile and change in production profile for Far West Gold going forward, also adding about 20 years of life, so that target we spoke about at DRDGOLD's 130th anniversary celebration earlier this year, and hopefully we'll be here to celebrate our 150th anniversary. "The gold price is helpi...

    13 min

  4. 5D AGO

    Martin Creamer talks about DRDGOLD, Exxaro investments, and surging nickel demand in focus

    Mining Weekly Editor Martin Creamer unpacks DRDGOLD's R7.8-billion investment in its Big Five capital growth projects; Exxaro's spend of R5.2-billion on a coal mine expansion and R4.7-billion on a wind farm development; and the global defence industry stimulating considerable dem

    5 min

  5. 5D AGO

    Exxaro spending R5.2bn on coal mine expansion, R4.7bn on wind farm project

    This audio is brought to you by Astec Industries, a Global Leader in manufacturing equipment for infrastructure, including asphalt production, construction, and material processing, driving innovation and sustainability. Johannesburg Stock Exchange-listed Exxaro Resources will be spending R5.2 billion on a life-of-mine expansion project at its Matla colliery and R4.7-billion on the development of the 140 MW Karreebosch wind energy project. Matla will basically provide a new mine and the wind farm's supply of clean energy to Northam Platinum will come with Scope 3 emission credits as Exxaro executes on its decarbonisation roadmap. Being an Exxaro coal customer, Northam will support the reduction of Exxaro's Scope 3 emissions obligations through the Karreebosch wind energy project arrangement. Despite persistent global and domestic headwinds, new Exxaro CEO Ben Magara reported a good set of dividend-yielding interim results that saw net cash rise 27% to R12.4-billion. Magara made the point that this level of cash buffer wouldnot be retained once the purchase of Ntsimbintle Holdings and OMH manganese assets is brought to completion, which is expected to take placed in the first quarter of next year. Of the R3-billion dividend funding, R1.7-billion was a pass through from the Sishen Iron Ore Company dividend and R1.3-billion from Exxaro's own managed operations. Half-year domestic and export coal sales were 1% higher on production of 19.4-million tonnes. The operating wind assets of Exxaro's energy solutions company Cennergi generated 337 GWh of electricity in the six months to June 30, amid the signing of a power purchase agreement for platinum group metals mining company Northam Platinum to receive clean power from the Karreebosch wind farm, a project that will uplift the gross clean power capacity to Cennergi 437 MW. Combined with Exxaro's Lephalale Solar Project, the two projects will more than double Cennergi's capacity by the first half of 2027. The half-year revenue of Cennergi rose 3.5% to R675-million on stable generation and increased annual tariff escalations, which uplifted the operational earnings of the wind energy business to R537-million - "and this drive is not just about money, but it's also about reducing emissions", said Magara. Expansion capital of R1.1-billionwas spent on the Lephalale Solar Project and the Karreebosch wind farm in he half year, FD Riaan Koppeschaar reported. Exxaro is configuring its assets to support its decarbonisation journey, with a particular focus on technologies such as fleet optimisation to reduce Scope 1 emissions. A key milestone in this commitment is the commissioning of the self-generation Lephalale Solar Project initiative at the Grootegeluk coal mine, which will deliver a 25% reduction in Scope 2 emissions and a 17% reduction in total Scope 1 and Scope 2 emissions. Addressing Scope 3 value-chain emissions remain a priority, and through strategic partnerships and meaningful stakeholder engagement such as the signing of a memorandum of understanding with Eskom in April, Exxaro expressed confidence of making progress in reducing these emissions. MORE DOMESTIC COAL OFFTAKE EXPECTED Exxaro is expecting more of its coal to be bought by Eskom, especially in view the fourth unit of the Medupi power station that it supplies, has been returned to service. "We we're very pleased when they announced a few weeks ago that unit four is back," said Magara during the presentation of half-year results covered by Mining Weekly. Each unit consumes somewhere around 2.2-million tons to 2.3-million tons of coal. "When a unit's down for a year, that's 2.2-million to 2.3-million tons out of your production and that impacts unit costs," said Magara, adding that all six Medupi units now seem to be running. As a result, Exxaro is guiding total 2025 production of around 38.9-million tons to 42.8-million tons, and total coal sales of 38.3-million tons and 42.4-million tons, with export sales ranging poss...

    7 min

  6. 6D AGO

    DRDGOLD investing R7.8bn in Big Five growth projects as part of Vision 2028

    This audio is brought to you by Astec Industries, a Global Leader in manufacturing equipment for infrastructure, including asphalt production, construction, and material processing, driving innovation and sustainability. Johannesburg- and New York-listed DRDGOLD on Wednesday outlined its plans to invest around R7.8-billion in its Big Five capital growth projects, two on the well-established East Rand and three on the fast developing Far West Rand. The R7.8-billion capital investment is described as being a medium-term forecast for the key projects within the Vision 2028 strategy, extending life-of-mine by at least 20 years for both East Rand and West Rand operations. Vision 2028 is working towards increasing throughput to three-million tons a month, boosting gold production to more than 200 000 oz/y, reducing the company's environmental footprint and maximising social impact. (Also watch attached Creamer Media video.) The plan now for Ergo on the East Rand is to expand the operation's lifespan to beyond 2040 to process a resource base previously thought non-viable. Increasing deposition capacity, however, would be vital until this could be achieved, by resuming deposition on to the Daggafontein tailings storage facility (TSF) by the first quarter of the 2027 financial year. Ergo's throughput is being throttled at 1.65-million tons a month to ease deposition on the current Brakpan TSF. Longer term, the planned new Withok TSF would take over from the Brakpan TSF. At the Far West Gold Recoveries operation, near Carletonville, the story is similar - for now - to that of Ergo. The throughput rate at Far West Gold Recoveries Phase 1 has, from inception, been determined by the capacity of its TSF, Driefontein 4 Dam. Phase 2 construction is now well under way, with the expansion of the current DP2 plant to double its current throughput capacity to 1.2-million tons, enabled by constructing the large new Regional TSF. The Regional TSF, with a 30-year life, is designed for 800-million tons at an eventual deposition rate of 2.4-million tons a month for the life-of-mine (LoM). It will still be in construction when its lower section begins to be used from the southern side. "I think I'll venture to say that this is possibly the largest tailings dam constructed on a liner, definitely in South Africa, maybe even in the southern hemisphere. I don't know of another tailings dam that's this big," DRDGOLD COO Jaco Schoeman commented during the results presentation covered by Mining Weekly. In the case of Ergo, some of the existing infrastructure has to be upgraded for gold to be recovered from the Marievale and Crown major clusters with treated material making use of Daggafontein and Withok deposition capacity plus a dual 11 km pipeline, one for slurry and the other for return water. Commencement of deposition onto Daggafontein is envisaged in the first quarter of DRDGOLD's 2027 financial year. Withok, which is directly south of the Brakpan tailings dam that is scheduled for closure, is designed to hold 310-million tons of material with a deposition rate of 1.3-million tons a month. "Once this and Daggafontein are an operation, Ergo's deposition capacity will return to 1.8-million tons a month deposition capacity, providing a LoM of more than 20 years. "We anticipate that it's going to take us approximately three years before we start commissioning," Schoeman reported. The 600 000 t capacity of Far West's DP2 plant will be doubled to 1.2-million tons, which will be pumped to the Regional TSF, close to the town of Fochville. Shown during the presentation was the proposed carbon-in-leach (CIL) circuit. The 1.2-million tons of tailings will come from the Driefontein 3 and Lebanon tailings dams. The envisaged completion date for this is the first quarter of DRDGOLD's 2027 financial year. "From an engineering and design perspective, we're 99% complete. Our procurement packages are 94% complete. Fabrication and supplies are 65% complete and construc...

    4 min

  7. AUG 19

    Defence industry expected to spur demand for nickel as world invests in armaments

    This audio is brought to you by Astec Industries, a Global Leader in manufacturing equipment for infrastructure, including asphalt production, construction, and material processing, driving innovation and sustainability. The global defence industry is expected to stimulate considerable demand for nickel as the world invests in more armaments that require nickel-containing steels. "I think there's going to be a big demand side inflection coming quite quickly from the global defence industry as the world invests - and I think, unfortunately, has to invest - in more armaments that all require stainless steel and specialised steels that contain nickel for gun barrels, for armour, for ships. "I'm not seeing, yet, that it's factored into the demand side analysis much at all, but I think it's going to be big. It's going to be bigger than anyone's thinking about at the moment," Lifezone Metals founder and chairperson Keith Liddell outlined to Mining Weekly in a Zoom interview. (Also watch attached Creamer Media video.) "We think that the nickel price will start to trend up over the next few years, and we want to be commissioning into a rising price, rather than where we are at the moment where the price is in a bit of a doldrum." New York-listed Lifezone recently took full control of Kabanga Nickel, which in turn holds an 84% interest in Tembo Nickel, the Tanzanian operating company behind the Kabanga project. The remaining 16% is held by the Tanzania government. Lifezone's comprehensive feasibility study for the Kabanga project outlines the initial development phase, including a 3.4-million-ton-a-year underground mine, processing infrastructure and tailings storage. The project will produce a high-grade nickel, copper and cobalt concentrate for downstream processing and has an expected 18-year mine life. "It's very big and it's a very high grade nickel resource - and those two things, large tonnage and high grade, don't often come together. "You either get one or the other, but not both, and this is what makes Kabanga so great," said Liddell, who is well known in South Africa for conceiving smelterless Kell Technology that enables the production at mine sites of refined platinum group metals (PGMs), substantially cutting capital expenditure and operating costs. Liddell was also instrumental in the development of South Africa's Kroondal PGMs project, which gave birth to a low cost and efficient PGM business. Now, Kabanga is on its way to bringing benefits to the people of Tanzania, and Liddell is going all out to make sure it does so. The feasibility study contains the reserve statement, which at the project level is 52-million tons of ore grading 2% nickel, and that contains 103-million tons of nickel in the reserve, 7.8-million tons of cobalt and 14-million tons of copper. "So you can see it's big, over 100-million tons of nickel in reserve. That's massive," Liddell pointed out. Steady-state output of 60 000 t/y of nickel in product would make it one of the larger nickel mines in the world, particularly underground nickel mines. Project-level financial metrics include a post-tax net present value (NPV) of $1.58-billion at an 8% discount rate at just over $8/lb nickel price, with an after-tax internal rate of return (IRR) of 23%. On a capital expenditure (capex) of just under a billion dollars to build a mine and a concentrator first, a $1.858-million NPV is described as being eminently fundable with both debt and equity. The feasibility study initially is based on the sale of concentrate and the Kabanga concentrate runs at 17.5% nickel with no penalty elements contained in it. The initial assessment includes a Lifezone-hydromet-technology-using refinery making an entry five years after the startup of the mining concentrator, so cash can be generated to pay for most of the refinery capex, but also derisk the project from a debt and equity perspective, to open the way for the mining concentrator to be built as fast as possible. In ...

    8 min

  8. AUG 18

    Mining energy supplier secures $40m from Denmark to fund greener Africa

    This audio is brought to you by Astec Industries, a Global Leader in manufacturing equipment for infrastructure, including asphalt production, construction, and material processing, driving innovation and sustainability. Mining energy supplier CrossBoundary has secured a $40-million investment from Impact Fund Denmark to expand its portfolio of clean energy projects across Africa. The investment supports CrossBoundary deployment of solar photovoltaic and battery storage across Africa. Impact Fund Denmark targets climate action, poverty alleviation and economic growth through energy solutions that drive sustainable development and improved quality of life. MD and green energy co-head Thomas Hougaard described the investment in a media release to Mining Weekly as one that contributes towards improving the quality of life for communities. Significant growth opportunities on the continent, are seen by Hougaard, who views innovative energy solutions as unlocking economic potential and driving inclusive progress. The solar and battery energy storage solutions envisaged as bringing additional power capacity to sectors that require stable electricity, while flexible power purchase agreements enable enterprises to access energy without the need to engage in any of their own capital expenditure (capex). CrossBoundary's zero-capex model is highlighted by CEO Pieter Joubert as one that lowers the barrier to entry for African businesses seeking stable, clean and cost-effective power. "Once companies' balance sheets are freed up to invest in their core value-generating activities rather than power provision, they can reach and exceed their targets, unlocking further economic value in the regions in which they operate," Joubert emphasised. After signing a commercial and industrial power purchase agreement with Kamoa Copper in the Democratic Republic of the Congo, CrossBoundary is constructing a solar and battery energy storage system baseload plant in Africa that is poised to uplift the Kamoa's output and increase its regional economic impact. CrossBoundary associate principal Tom Roberts spoke of the investment from Impact Fund Denmark as being crucial for the provision of CrossBoundary's service offering to clients such as Kamoa. CrossBoundary is also heading towards to commercial operation date phase of the wind project to help power QIT Madagascar Minerals, a joint-venture between Rio Tinto (80%) and the government of Madagascar (20%), near Fort Dauphin amid the two substantial solar phases also developed for the ilmenite, zircon and rutile minerals sands mine, in the Anosy region of southeastern Madagascar. Earlier this year, Norfund doubled its investment in CrossBoundary to $80-million, following a $140-million senior debt close from Standard Bank at the end of 2024, as the first tranche of a $300-million senior debt mandate. CrossBoundary also recently secured a $495-million guarantee framework from the World Bank's MIGA, which will protect its assets from transfer restriction and currency inconvertibility. While CrossBoundary develops, owns, and operates distributed renewable energy solutions for businesses, offering energy through power purchase and lease agreements, Impact Fund Denmark provides developing region risk capital.

    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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