Mining

Many mining companies are thinking of expansion.

Credit: Implats

Commodity prices buoyed the mining sector in 2021. Impala Platinum (Implats) posted a 125% increase in headline earnings in September 2021. The group allocated 70% of free cashflow to shareholder returns through convertible bond repurchases and cash dividends. This came about because of record rand prices for the PGM basket, increased sales and improved operations. Work has been done at Implats’ Rustenburg to enhance mine flexibility and the company expects this to deliver further growth.

Pilanesberg Platinum Mines has been active 80km north-west of Rustenburg since 2009. Mining operations are conducted by contractors while PPM manages the concentrator (screen, crush, mill, float, thicken and dry). The operation has annually achieved an average of about 150 000 ounces of platinum group metal (PGM) concentrate.

RBPlat declared an interim dividend of R1.5-billion in August of 2021 and was expecting to have similar good news at yearend, despite reduced production volumes because of the Covid-19 pandemic. The four metals that make up the bulk of Royal Bafokeng Platinum’s portfolio increased in price by more than 50% in the course of 2021. Rhodium earns RBPlat 45% of its income, followed by palladium, platinum and gold.

Even though the Rustenburg furnace 5 was put on care and maintenance, Merafe Resources reported a small improvement in ferrochrome production for the first quarter of its financial year. The joint with Glencore, Glencore Merafe Chrome Venture, apparently

SECTOR INSIGHT Energy plants are being constructed on mines.

achieved efficiencies which helped it to increase production by 3% for the three months to the end of March 2021, compared to the same period in 2020. The total produced was 103 000 tons.

Platinum group metals (PGM) miner Sibanye Stillwater will spend a further R3.9-billion on an expansion project at its Marikana mine, after previous owners Lonmin spent more than R4-billion on it. The aim is to be producing 250 000oz per year of platinum, gold, palladium and rhodium in 2028.

It is not only PGMs that are sparking interest in expanded operations. Harmony Gold is at an advanced stage of a feasibility study to determine the viability of expanding the Kalgold open-pit operation (Windmill zone). Kalgold is an open-pit gold mine situated on the Kraaipan Greenstone Belt, 55km south-west of Mahikeng. In 2020, 1 153kg of gold was produced, against 1 249kg in the previous year.

Small business support Pilanesberg Platinum Mines created Community Crusher as a nonprofit enterprise but with 14 employees and a steady set of orders for building projects run by the company, the small business is starting to show signs of becoming a bigger business.

Many mines run similar programmes, sourcing goods and services from local community-based companies and sometimes providing mentoring and advice on how to improve as businesses. Implats has a programme of procurement in which it supports local business and black-owned businesses through enterprise and supplier development programmes.

The Provincial Government of the North West is in talks with several mining companies in the Matlosana Local Municipality area (which includes Klerksdorp and Orkney) as some mines are being closed down. One of the initiatives to extract more value from mining is the proposed Platinum Valley Special Economic Zone. Creating a base for companies to supply the mining industry is one of the key drivers behind the scheme.

The SEZ is intended for Mogwase in the Bojanala District, north of Rustenburg and east of Sun City. When fully developed, 200ha of land will be taken up by three infrastructure facilities comprising Logistics, Light Manufacturing and Heavy Manufacturing.

The Seda Platinum Incubator (SPI) is an initiative of the Platinum Trust of South Africa and is funded by the Small Enterprise Development Agency (Seda) through its Seda Technology Programme (Stp) with the support of the North West Provincial Government and private companies.

Mineral resources The North West Province is aligned with the Western Limb of the Bushveld Igneous Complex, a remarkably rich minerals formation. Mines in the province produce 50% of the platinum produced in the world, and 65% of South Africa’s PGMs.

Chromite is the other major mineral mined throughout the province, and there are several ferrochrome smelters and other processing plants. South Africa produces about 70% of the world’s chrome.

Gold and uranium are found along the border of the province with Gauteng and the Free State (in Klerksdorp and Orkney). Diamonds are mined at Christiana, Bloemhof and Lichtenburg.

Other minerals include fluorspar, vanadium, rhodium, uranium, copper, limestone, slate, phosphate, manganese, coal and nickel. Limestone quarries run by G&W Base and Industrial Minerals in the Marico District are located next to a PPC cement factory.

One of the last economically viable limestone deposits in South Africa is mined and processed by Sephaku Cement. Sephaku runs a 6 000-ton-per-day clinker plant near Lichtenburg.

AfriSam, PPC and Lafarge are active in the Mahikeng/ Lichtenburg area, but Sephaku is confident that its clinker and cement-production facilities will be supported by raw materials for at least 30 years. AfriSam has taken measures to reduce carbon emissions at its Dudfield cement plant. ■

Laboratory testing being done at Pilanesberg Platinum Mines. Credit: PPM

Money experts serving the North West business community

Johann Swanepoel, Regional Manager for Business Banking, says that a deep commitment to partnership is what governs the team's personal and professional values.

‘Our bigger-picture banking approach enables us to not only offer solutions that our clients need, but also a holistic view of how our products are connected to create a framework that yields maximum impact across every facet of their businesses and beyond,’ he says. ‘We know that success in business is about partnerships, so we put the building of deep, lasting, value-adding relationships at the centre of everything we do. This means your goals are our goals, your vision is our vision, and your success is our success – while you rely on our

additional support that is most needed in times of change and uncertainty.’

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We know that success in business is about partnerships, so we put the building of deep, lasting, value-adding relationships at the centre of everything we do. ‘

Nedbank knows that navigating your business through a challenging economic landscape is hard enough, and that taking care of your daily business-banking needs shouldn't add to that load. 'With this in mind, we’ve designed the Nedbank Business Hub with convenience, security and control in mind. The Nedbank Business Hub boasts 130 different services and enables you to bank and transact, get finance, invest and insure – it's hassle-free banking at your fingertips,’ says Swanepoel.

‘Ultimately, our philosophy is to partner with our clients to grow their businesses, so we’re always finding ways to support them in this quest. Our aim is to use our financial expertise to do good to help build a strong, resilient economy for the betterment of all,’ he says.

To take your business to the next level or for more information about Nedbank’s specialised service offering, please email Johann Swanepoel at JohannEu@nedbank.co.za or visit www.nedbank.co.za/business.

Nedbank Business Banking helps the public sector see money differently

Nedbank is committed to delivering easy and innovative banking solutions to government, municipalities, state-owned enterprises and academic institutions, including TVET colleges and universities, throughout South Africa.

Monei Seleho, Nedbank's Provincial Manager for the Public Sector in the North West, says that given the strategic importance of the public sector to the economy and the country at large, Nedbank has a dedicated team to offer financial solutions that enable the broader mandate of service delivery. ‘We understand that the various spheres of government and their agencies face unique challenges. They are ready and able to draw on the bank’s innovative, seamless and hassle-free products to help build a greater nation.’ We understand that the various spheres of government and their agencies face unique challenges...

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But the bank's role goes beyond offering banking solutions to these vital entities. As money experts who do good, Nedbank strives to empower the people behind the public sector by saving them time, money and helping them manage their money better.

'We help them save time by offering on-site help from dedicated teams and through our market-leading Nedbank Money app and other digital solutions. We also help them save money through our preferential banking solutions and our award-winning Financial Fitness and Consumer Education Programme. The latter helps them manage their money better by providing budgeting and money management training, equipping their employees to deal with everyday money management challenges,' says Seleho.

To find out more about how Nedbank can partner with your organisation to grow a greater South Africa, please email Monei Seleho on MoneiS@Nedbank.co.za or visit www.nedbank.co.za/business.

Nedbank offers specialist support for a post-Covid-19 world

Daniel Makinita, Regional Manager for Retail Business Banking in the North West, says that as South Africa progresses through the various stages of Covid-19, Nedbank is working through recovery scenarios with existing and prospective clients. This is all while staying true to Nedbank's brand promise to use its financial expertise to do good for individuals, families, businesses and the communities in which it operates.

‘Throughout the pandemic, we have elevated our client engagement and extended tailor-made relief to many of our clients, equipping and enabling them to benefit from various digital and remote solutions. This ensures uninterrupted transactional and informational access while not compromising on security. For example, with the award-winning

Nedbank Money app, clients can manage accounts and investments, make payments and set savings goals and budgets, all from their smartphones. They can also make instant payments to anyone on their contact list, even if the recipient isn’t a Nedbank client,’ he says.

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This is all while staying true to Nedbank's brand promise to use its financial expertise to do good for individuals, families, businesses and the communities in which it operates. ‘

One of the solutions the bank has added to its portfolio, specifically with Covid-19 safety in mind, is appointment banking. ‘For your convenience and to limit the time you spend in public spaces, you can now make an appointment with a dedicated relationship banker directly via the Money app or Online Banking. Just choose the date, time and branch that suits you,’ says Makinita.

To find out more about banking from the comfort of your home or for more information about Nedbank’s specialised service offering, please email Daniel Makinita at DanielMak@Nedbank.co.za or visit

www.nedbank.co.za.

Small-business solutions aimed at creating jobs and growing the economy

Nedbank’s Regional Manager of Retail Relationship Banking in the North West, Pieter Naudé, explains how brand values built on the bank’s expertise can benefit Nedbank clients, especially during what is now considered ‘the new normal’.

Naudé says that for small-business clients, Nedbank continues to deliver end-to-end solutions through a dedicated business manager. ‘Our bigger-picture business approach enables us to have a holistic view of each business by understanding the vision, cashflow cycle, and transactional and capital expenditure needs. This way, we become trusted advisors to business owners who strive to grow their businesses.’ Small businesses often lack formalisation, as seen in many not qualifying for Covid-19 assistance because of outdated records and not meeting regulatory requirements. Naudé says that Nedbank’s experts are available to offer all the support small businesses need, which goes beyond affordable banking solutions. ‘We offer value-added services to get and keep your business going, like our free-to-join networking portal, SimplyBiz.co.za, The Essential Guide for

Small-business Owners, business registration services and free small-business seminars.’

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Our bigger-picture business approach enables us to have a holistic view of each business by understanding the vision, cashflow cycle, and transactional and capital expenditure needs. ‘

Naudé adds that Nedbank’s Professional Banking solution is built on five pillars. ‘We provide our professional clients with banking at their fingertips; benefits that matter; expert savings and investment advice; and a unique household banking approach that allows them and their families to finance their dreams and growth.

‘With dedicated relationship bankers, tailored financing options and 24/7 service, the banking experience we offer is seamless, enables our clients’ financial aspirations and is flexible to grow as your needs grow,’ says Naudé.

If you want to tap into our small-business or professional banking expertise to reach your business goals, please email Pieter Naudé at PieterN@Nedbank.co.za or visit www.nedbank.co.za.