Mining

De Beers’ giant conversion project has started producing.

R1-billion to upgrade the resource.Limpopo’s 2022 Mining and Energy Conference covered a number of issues relevant to the mining sector and laid out the investment case for the province.

In July 2023, as scheduled, De Beers Group celebrated the beginning of production at its Venetia Mine.

The long-term, $2.3-billion conversion project of the diamond mine to an underground mine began in 2012 and will extend the life of the mine to 2045 or beyond. The mechanised underground operation will deliver up to seven-million tons of kimberlite ore per year to produce four-million carats of diamonds. Construction of the mine, which employs 4 300 local people, is now 70% complete.

Mantengu has made a R700-million investment commitment in a chrome and platinum group metal (PGM) mine near Thabazimbi. Mantengu was previously known as Mining Restoration Investment and operated as an environmental-services company which worked on the environmental impacts created by the mining industry.

The Langpan Mine, which reportedly has a chrome and PGM reserve statement of 2.17-million tons and a valuation of R851-million, also has a processing plant which forms chrome concentrate from the chrome ore. The by-product has a high concentration of PGMs.

The R1.2-billion Sefateng Chrome Mine under development in the Sekhukhune District has so far created 350 jobs during the construction phase and will provide a long-term employment for 600 people once production begins.

Corridor Mining Resources, a diversified mining resources company wholly owned by the Provincial Government through the Limpopo Economic Development Agency (LEDA), is invested in a project where the equity partner, Sedibelo, is assembling

African Rainbow Minerals has purchased the Bokoni platinum group metals mine for R3.5-billion. Bokoni is located near ARM’s Modikwa and Two Rivers PGM mines and gives the ARM more palladium to mine.

Commodity prices buoyed the mining sector during the time of Covid-19. Rhodium, palladium, platinum and gold collectively rose in price by more than 50% in the course of 2021and these are all minerals that occur in Limpopo.

Increased demand for platinum group metals has been a trend for some years, but a huge drop in the global price of PGMs has occurred since rhodium attracted a price of $30 000 an ounce in 2020. In September 2023 it was trading at $3 500 (Financial Mail).

Glencore (with a 79.5% stake) and Merafe Resources jointly own chrome mines in Limpopo on the Eastern Limb of the Bushveld Igneous Complex (Helena, Magareng and Thorncliffe), the Lion smelter complex near Steelpoort and the Lydenburg smelter.

Expansion projects

Rustenburg Platinum Mines (RPM), a subsidiary of Anglo American Platinum (Amplats), has bought the prospecting rights for two blocks close to its existing Mogalakwena PGM mine, south-west of Polokwane near Mokopane. The blocks were purchased from Atlatsa and provide space to expand what is already the biggest and richest opencast PGM mine in the world.

A new mining right has been granted to PTM in the northern limb of the Bushveld Complex. The Waterberg project will be operated by PTM on behalf of Waterberg Joint Venture Resources which comprises Mnombo Wethu Consultants, Japan Oil, Gas and Metals National Corporation, Hanwa Company, PTM and Impala Platinum.

Implats intends expanding production at its Two Rivers PGM mine by 180 000oz. The project will take four years and cost R5.7-billion.

The soils of Limpopo are rich in platinum group metals, coal, copper, diamonds, gold, iron ore, nickel, rare earth minerals and tin.

Limpopo contributes 4% of coal mining in South Africa, according to the National Department of Mineral Resources and Energy, but it is likely that within the next three decades, the province will be supplying about half of South Africa’s coal. Limpopo’s Waterberg coal field is estimated to contain about 75-billion tons of coal.

Exxaro’s two coal mines in the Waterberg represent three-billion tons of Measured Coal Resources and 1.8-billion tons of Indicated Coal Resources.

Online Resources

Department of Mineral Resources and Energy: www.dmr.gov.za

Minerals Council South Africa: www.mineralscouncil.org.za

MTE: www.mteexpos.co.za

South African Institute of Mining and Metallurgy: www.saimm.co.za

This is where Exxaro operates its giant Grootegeluk Mine. Nine plants serve a 4kmlong and 120m-deep opencast mine on a 1 200ha site. Originally intended to supply the nearby power plants, Exxaro is now eyeing the export market with countries such as Ethiopia, Egypt and Pakistan potential markets.

Mineral beneficiation is a key component of the MusinaMakhado Special Economic Zone (MMSEZ) in the far north of Limpopo and coal is needed for the making of steel.

The planned FetakgomoTubatse SEZ will focus on the beneficiation of platinum group metals, magnetite, vanadium and chrome. The other strong mineral focus in the eastern part of the province is at Phalaborwa where Palabora Copper, a subsidiary of Palabora Mining Company, produces about 45 000 tons of copper annually, most of which is sold domestically. It runs a smelter and a refinery and also mines magnetite, vermiculite, sulphuric acid and nickel sulphate.

The popular annual Mining & Technical Exhibition (MTE) visits several Limpopo destinations every year. The MTE Lephalale event, due to be held in October 2023, will have a coal focus due to the huge reserves of coal that are in the area and the presence of Exxaro’s Grootgeluk mine. MTE, a division of IMD Conferences Exhibitions and Workshops, celebrates its 30th birthday in 2023. ■