Tag Archives: Bushveld

Anglo American to collaborate on ‘hydrogen valley’ study in South Africa

Anglo American has announced a collaboration agreement to complete a feasibility study to develop a “hydrogen valley” anchored in the platinum group metals-rich Bushveld geological area in South Africa.

Spearheaded by South Africa’s Department of Science and Innovation (DSI), the collaboration agreement also includes energy and services company ENGIE, the South African National Development Institute (SANEDI) and clean energy solutions provider Bambili Energy.

The proposed hydrogen valley will stretch approximately 835 km from Anglo American’s Mogalakwena platinum group metals (PGMs) mine (pictured) near Mokopane in Limpopo province in the north of South Africa, along the industrial and commercial corridor to Johannesburg and to the south coast at Durban.

This collaboration follows the launch in 2020 of the South African Hydrogen Society Roadmap, aimed at integrating hydrogen into the economy by capitalising on the country’s PGM resources and renewable energy potential to revitalise and decarbonise key industrial sectors. The study will be conducted by ENGIE Impact and will identify tangible opportunities to build hydrogen hubs and explore the potential for green hydrogen production and supply at scale.

Natascha Viljoen, CEO of Anglo American’s PGMs business, said: “The transition to a low carbon world is an opportunity to drive the development of cleaner technologies, create new industries and employment, and improve people’s lives. Anglo American was an early supporter of the global potential for a hydrogen economy, recognising its role in enabling the shift to greener energy and cleaner transport. Our integrated approach includes investing in new technologies, supporting entrepreneurial projects and advocating for policy frameworks that enable a supportive long-term investment environment for hydrogen to deliver that potential.”

The regional PGMs industry will be central to such a hydrogen valley, with PGMs playing an important role both in Polymer Electrolyte Membrane electrolysis used to produce hydrogen at scale and in fuel cells themselves, Anglo says.

Anglo American is already investing in renewable hydrogen production technology at its Mogalakwena PGMs mine and in the development of hydrogen-powered fuel cell mine haul trucks – the world’s largest to run on hydrogen.

Dr Phil Mjwara, DSI Director-General, said: “The Department’s hydrogen valley partnership with Anglo American, Bambili Energy and ENGIE is an example of leveraging investments made in the Hydrogen South Africa Programme to create mechanisms for the uptake of publicly financed intellectual property. The hydrogen valley is among the projects that will be implemented in partnership with the private sector to support the Platinum Valley Initiative, which is aimed at supporting small, medium and micro enterprises to take advantage of opportunities in the green economy in support of a just transition.”

The public-private partnership is aligned to the South Africa Government’s Economic Reconstruction and Recovery Plans, with science, technology and innovation playing a key role in supporting the country’s plans to revitalise its economy.

Sebastien Arbola, ENGIE Executive Vice President in charge of Thermal Generation and Energy Supply activities, said: “ENGIE is delighted to be part of the hydrogen valley study. We are keen to share our knowledge and expertise encompassing the entire hydrogen value chain to accelerate hydrogen solutions’ deployment in South Africa and beyond. We already have a demonstration project under way to supply the hydrogen for the world’s first hydrogen mining truck being developed by Anglo American at the Mogalakwena PGMs mine.”

Zanele Mavuso Mbatha, CEO Bambili Energy, said: “The initiative to develop the South African hydrogen valley and the collaboration between Bambili, Anglo American, ENGIE and the South African government is significant as it will build material public awareness, confidence and support for the hydrogen economy. This collaboration is illustrative of Bambili’s view that a public-private partnership is critical in the development of this industry in the South African economy.”

Pre-sink of Shaft 2 at Ivanhoe’s Platreef underground project months away

In a review of exploration and development activities in 2018, Ivanhoe Mines has gone into some detail on developments at Shaft 2 at the Platreef PGM-nickel-copper-gold project on the northern limb of South Africa’s Bushveld Complex.

This follows a project update issued just after the Mining Indaba event in February.

Shaft 1, expected to reach its final depth of 982 m below surface in early 2020, will ultimately become the primary ventilation shaft during the project’s initial 4 Mt/y production case, but Shaft 2, around 100 m northeast of Shaft 1, will provide primary access to the mining zones.

Ivanhoe said Shaft 2 will have an internal diameter of 10 m, will be lined with concrete and sunk to a planned, final depth of more than 1,104 m below surface.

It will be equipped with two 40-t rock-hoisting skips capable of hoisting a total of 6 Mt/y of ore – the single largest hoisting capacity at any mine in Africa. The headgear for the permanent hoisting facility was designed by South Africa-based Murray & Roberts Cementation.

Ivanhoe said nine blasts were successfully completed in 2018 enabling the excavation of Shaft 2’s box cut to a depth of approximately 29 m below surface and the construction of the concrete hitch (shaft collar foundation) for the 103-m-tall concrete headgear (preparations pictured here) that will house the shaft’s permanent hoisting facilities and support the shaft collar.

Excavation of the box cut and construction of the hitch foundation is expected to be completed in the June quarter, enabling the beginning of the pre-sink, that will extend 84 m below surface, it said.

In July 2017, Ivanhoe, which indirectly owns 64% of the Platreef project through its subsidiary, Ivanplats, issued an independent, definitive feasibility study (DFS) for Platreef covering the first phase of production at an initial mining rate of 4 Mt/y. The DFS estimated Platreef’s initial, average annual production rate would be 476,000 oz of platinum, palladium, rhodium and gold, plus 21 MIb (9,525 t) of nickel and 13 MIb (5,897 t) of copper.

Ivanhoe Mines’ Platreef Shaft 1 intersects ‘Flatreef’ PGM deposit

Ivanhoe Mines and sinking contractor Aveng Mining have reached a new milestone at its Platreef PGM-nickel-copper-gold project in South Africa with Shaft 1 now at the top of the ‘Flatreef’ deposit, 780 m below surface.

At the Shaft 1 intersection, the flat-to-gently-dipping deposit is an estimated 26 m thick, making it amenable to the sort of bulk-scale mechanised mining most PGM operators would dream of.

This is the first time Platreef, in the Northern Limb of South Africa’s renowned Bushveld complex, has been intercepted by underground mining activity, according to Ivanhoe Mines.

The mining team has now delivered first ore from the underground mine development to a surface stockpile for metallurgical sampling. “The estimated thickness of the mineralised reef (T1 and T2 mineralised zones) at Shaft 1 is 26 m, with grades of platinum-group metals ranging up to 11 g/t 3PE (platinum, palladium and rhodium) plus gold, as well as significant quantities of nickel and copper,” the company said.

The 26 m intersection is expected to yield some 3,000 t of ore, estimated to contain more than 400 oz of PGMs.

The 750 m station on Shaft 1 will provide initial, underground access to the orebody, enabling mine development to proceed during the construction of Shaft 2 – the mine’s main production shaft.

The mining zones in the current Platreef mine plan occur at depths ranging from approximately 700 m to 1,200 m below surface.

Shaft 1’s 750 m station will also allow access for the first raisebore shaft, which will have an internal diameter of 6 m, to provide ventilation to the underground workings during the mine’s ramp-up phase.

As shaft-sinking advances, two additional shaft stations will be developed at mine-working depths of 850 m and 950 m. Shaft 1 is expected to reach its projected, final depth of 980 m below surface, complete with the stations, in early 2020.

Shaft 2

Excavation of the Shaft 2 box cut to a depth of approximately 29 m below surface is progressing well, according to Ivanhoe.

Completion of the box cut will allow for the construction of the concrete hitch (foundation) for the 103 m-tall concrete headframe that will house the shaft’s permanent hoisting facilities and support the shaft collar.

Shaft 2, around 100 m northeast of Shaft 1, will have an internal diameter of 10 m, will be lined with concrete and sunk to a planned, final depth of 1,104 m below surface. It will be equipped with two 40 t rock-hoisting skips with a capacity to hoist a total of 6 Mt/y of ore. This is the single largest hoisting capacity at any mine in Africa, according to Ivanhoe.

Headgear for the permanent hoisting facility was designed by South Africa-based Murray & Roberts Cementation.

In July 2017, Ivanhoe issued an independent, definitive feasibility study (DFS) for Platreef covering the first phase of production at an initial mining rate of 4 Mt/y. The DFS estimated Platreef’s initial, average annual production rate would be 476,000 oz of platinum, palladium, rhodium and gold, plus 21 MIb (9,525 t) of nickel and 13 MIb (5,897 t) of copper.

Amplats buys Glencore’s stake in SA platinum project

In another sign Anglo American Platinum is confident in the long-term fundamentals of the precious metal, it has agreed to purchase Glencore’s 39% interest in the Mototolo joint venture operation in the Bushveld of South Africa.

Amplats could pay up to R22 billion for the interest as part of a complex deal that involves an upfront cash payment of R0.8 billion on a “cash-free basis” and an additional consideration based on rand PGM prices over the life of mine.

This is Amplats’ second platinum group metal investment in as many weeks, with the company recently pledging $100 million towards two UK-based venture capital funds developing “innovative and competitive technological uses of PGMs”.

These developments come at a time when platinum prices remain subdued and many other companies, reliant on manual labour, are looking to scale back their exposure to the precious metals.

Amplats, on the other hand, is making money. In the first six months of the year, its EBITDA increased 70% year-on-year to R6.8 billion as it produced 4% more PGMs (2.58 million ounces ) and cut unit costs by 3%.

Mototolo is currently operated as a 50:50 JV between Amplats and a partnership of Glencore (39%) and Kagiso Tiso Holdings (11%). It produced 157,200 oz of PGMs in the first six months of the year, up 26% from the same period a year ago, due to higher built-up head grade and additional production rolled over from the second half of 2017.

Chris Griffith, Amplats CEO, said the increased interest in Mototolo, on the Eastern Limb of the Bushveld Complex, could lead to the company creating another major “PGM hub” that was, importantly, mechanised, low cost and had a high-quality resource.

Its Mogalakwena PGM hub on the northern side of the Bushveld Complex, another mechanised operation, is one of the most profitable operations within the group.

He also said the deal “unlocks significant optionality for the company in its wholly-owned Der Brochen resource”.

Der Brochen, 100% owned by Amplats, has 182.1 million tonnes of Merensky reef resources grading 4.37 g/t 4E PGE, plus 402.4 Mt of UG2 reef resources at 3.99 g/t 4E PGE.

The project has been within the Amplats portfolio for some time, but the company said combining the Mototolo JV area with the downdip and adjacent Der Brochen resource, could extend the current five-year life of mine to “well in excess” of 30 years. This is something the company is currently carrying out a study on.

The transaction is subject to a number of conditions, including competition commission approval, and is expected to complete in the December quarter of 2018.