spot_img
Home Blog Page 13

Investing in African Mining Indaba returns to Cape Town

0

Investing in African Mining Indaba is returning to Cape Town in February 2023 with an speaker line-up comprising thought leaders and decision-makers from across the mining industry.

Source © Southern Africa Resource Watch Southern Africa Resource Watch Investing in African Mining Indaba is returning to Cape Town in February 2023

“We saw a record-breaking Indaba in May 2022 that really set the tone for the industry and for post-pandemic events as we lead up to February 2023,” says Simon Ford, portfolio director, Investing in African Mining Indaba.

“We are seeing a lot of early commitment and we are encouraged by the interest we have already received. This really reaffirms the importance of the Indaba, that it is given the upmost attention and support by state officials and is really driving positive policy change across the continent,” he adds.

SA and African support

Key government leaders and policymakers across the globe are signing up ahead of the world’s largest mining investment event.

Leading the charge of government leaders that will be in attendance are South African Minister of Mineral Resources and Energy, Gwede Mantashe and Minister of Trade and Industry, Ebrahim Patel.

Government leaders from mining-producing countries in Africa include the Nigerian Minister of State for Mines and Steel Development, Gbemisola Ruqayyah Saraki the Ghanaian Minister of Land and Natural Resources and Samuel Jinapor and George Mireku Duker the Ghanaian Deputy Minister for Lands and Natural Resourcesas well as the Zambian Minister of Mines and Minerals Development, Paul Kabuswe.

Investing in African Mining Indaba continues to garner significant support across the continent, with government officials from Chad, Ethiopia, Botswana, Central African Republic, Mali, Mauritania, Namibia, Somalia and South Sudan having also made early commitments.

Global support

On the global front, US Under Secretary of State for Economic Growth, Energy and the Environment, Jose W. Fernandez, will be in attendance. He will be joined by Special Presidential Coordinator Amos Hochstein.

Fernandez last visited South Africa in August 2022 where he participated in the US-South Africa Strategic Dialogue and co-chaired sessions that explored ways to deepen bilateral cooperation on climate and energy issues, as well as strengthen economic ties between the two countries.

Unlocking African Mining Investment

The theme for 2023 is ‘Unlocking African Mining Investment: Stability, Security, and Supply’ and will feature speakers who will consider the challenges and opportunities facing the continent’s mining industry as it seeks ways to bolster its economic power amid the global rush to secure supply for greener energy transition.

Speakers include:

 

– American chief executive, Duncan Wanblad

– Rio Tinto’s chief executive – minerals, Sinead Kaufman

– CEO of Exxaro Resources, Dr Nombasa Tsengwa

– Minerals Council South Africa CEO, Roger Baxter

– Gécamines SA chairman Alphonse Kaputo Kalubi
– CEO of ICMM, Rohitesh Dhawan

South African engineers are trying to solve the global water crisis

0

Smartphones now outnumber people with access to clean water in their homes. This bizarre factoid shows that human quality of life is no longer limited by our technological capabilities but rather by our access to, and efficient use of, finite and depleting resources.

In other words, the kind of innovations that we tend to think of as high-tech are no longer suitable for solving many of our global crises. Instead, what we require are solutions that are cost-effective, economical with resources, and simple enough to be implemented in the under-resourced regions in which those crises are felt most keenly. In the case of the global water crisis, this must be done urgently.

Residents of Nelson Mandela Bay are keenly aware of this, as some areas experience “water-shedding” because of low dam levels, and the looming threat of “Day Zero” when taps throughout the municipality run dry. Capetonians narrowly averted this scenario a few years ago and throughout the country there are places where trucks have to deliver fresh water.

Predictions by the United Nations and the World Bank paint a bleak picture in which water scarcity will displace almost a billion people this decade, resulting in a wave of refugee crises and conflicts, and the next decade is set to be even worse.

Research is needed where it matters
The first questions to be addressed, then, are what do we use water for, and where does it actually end up? Globally, and in most countries, the breakdown of water usage by sector is as follows: 70% for agriculture, 20% for industry, and 10% for household use. In short, we use the vast majority of our water for farming. Of that water, only a tiny fraction (seldom even as high as 5%) ends up in the actual plants; the rest evaporates, one way or another.

This paints a simple picture of the root cause of water shortages – evaporation in agriculture accounts for twice as much water as all other uses put together. I have personally attended several scientific conferences about water technology and farming is seldom mentioned. Evaporation, specifically, barely comes up.

The distribution of research efforts is completely disproportionate to the breakdown of water usage for two reasons.

First, industrial water users have much larger profit margins than farmers and can therefore fund considerably more research. There is considerably more legislation governing industrial water contamination that forces them to use that money.

Second, Europe does not have a water crisis, and neither does most of North America. These two places are the world’s major scientific hubs and so scientific spending and effort reflect their needs rather than those of poorer regions.

Perhaps worse still, the incentives in science are all structured to reward working on the same things that other people are working on which, coupled with the reverence held by developing nations toward developed ones, means that even the world’s poorest nations tend to devote our resources to solving Europe’s problems rather than our own.

Nevertheless, the task of minimising agricultural evaporation, and thereby addressing the water crisis, has started to gain momentum. A consortium of South African researchers (of whom I am one) from Wits University, UCT and UNISA has begun delving into the problem by taking the same techniques of chemical engineering reactor design and optimisation that has been used to ruthlessly refine chemical processes for decades, and applying them to agriculture, particularly greenhouses.

C02 and plants
The results have been startling. It has been found that there is a crucial limitation on reducing water usage, which is the requirement for CO2. Because plants quite literally construct themselves out of CO2, there is a minimum air-flow that is needed to meet that demand. Because plants require conditions that are warm and somewhat humid, internal greenhouse conditions tend to entail a considerably higher water content in air than the surrounding air, because the water carrying capacity of air increases exponentially with temperature.

Because airflow must enter the greenhouse at ambient conditions and then leave at internal greenhouse conditions, this difference in water content must be met by evaporation in the greenhouse. And because air is such a dilute source of CO2 (~410 parts per million at present) the air-flows required to supply enough CO2 are remarkably high and therefore, huge quantities of air end up being humidified during their passage through a greenhouse. This phenomenon holds true for open-air agriculture as well but is even worse because air-flows and diffusion are much less controlled.

This inverse relationship between CO2 concentration and water requirements means that finding a richer source of CO2 has the potential to solve this problem by lowering that fundamental minimum water requirement, potentially lowering agriculture’s water requirements drastically. Pure CO2 produced by the usual method, cryogenic distillation of air, is generally too expensive to apply this method economically. The economics of its production are tied to the demand for the other constituents of air, Oxygen, Nitrogen and Argon. Ramping up CO2 through those methods, therefore, is a limited prospect at best.

Optimising C02 use
Fortunately, there is no need to supply pure CO2 to plants; they simply require a source that is richer than the atmosphere.

Several viable sources for such a feedstock have emerged in recent years. One of those is flue gas from industrial processes, an approach which kills two birds with one stone by drawing down greenhouse gases and converting them to biomass.

When the predominant fuel was coal this would not have been feasible; flue gas from coal contains contaminants such as sulphur dioxide, mercury and radionuclides that make it unsuitable to go anywhere near our food sources. But natural gas has become more common as part of a drive to reduce environmental impacts. It is a far cleaner-burning fuel with flue gas suitable for greenhouse CO2 enrichment (after cooling).

Another emerging option is using membrane gas separation to extract CO2 from the atmosphere. Membranes that are highly selective to CO2 have been developed recently, primarily directed toward the purpose of CO2 capture but entirely suitable for partially enriching an air stream to feed a greenhouse.

Perhaps the most promising approach, particularly in the South African context, is true closed-loop agriculture. In this concept, all of the waste arising from food production and consumption is in some way converted to usable commodities and returned to the greenhouse.

The simplest and most appealing form of this is one of a bio-digester that processes sewage (the end-of-life product of all food crops) along with agricultural and kitchen waste to produce biogas as an energy source, with the resulting CO2-rich flue gas returned to the greenhouse and the digestate from the digester used as a fertiliser.

By returning most of the outputs of agriculture to the growing environment, this approach minimises the required inputs, saving on fertiliser, water and energy while increasing yield.

Some barriers remain, unfortunately. Most water-scarce regions also have hot climates, making cooling a key issue for greenhouse operation. Because ventilation is the most prevalent method of cooling, reducing airflow through CO2 enrichment becomes impractical, because ventilation requires high air-flow and evaporation is the main mechanism for removing heat. This means CO2 enriched agriculture is most easily implemented in cold climates, a situation which threatens to deepen the global imbalance in food availability by making cold European climates counter-intuitively superior for farming.

This trend is already evidenced by the fact that the Netherlands, a tiny country with scarcely any sunlight, is now the world’s second largest exporter of fresh produce, trailing only the USA.

The only solution, evidently, is to fix the problem of greenhouse cooling in hot climates under resource constraints. The problem with that solution is that hardly anyone is working on it.

Finally, although engineering solutions are a vital part of solving water shortages, as can be seen in areas where South Africans have run out of water, failures of governance – poor planning and corruption – are the key problem. We need good science and engineering to address our water shortages. But even more, we need better politics – there is no good reason for water to be scarcer than smartphones.

Neil Thomas Stacey lectures on waste-water management at Wits University.

BOOYCO ENGINEERING RAISES THE BAR IN AIR FILTRATION ON DUSTY SITES

0

Catering for the increased focus on the environmental aspects of surface mining, quarrying and construction, there are now enhanced options available for air filtration on mining and earthmoving equipment.

Well known for its specialised mobile HVAC solutions, Germiston-based Booyco Engineering is now a distributor for Sy-Klone International’s air filtration technology. According to Booyco Engineering’s Field Services Sales Manager Gordon Postma, this brings a range of exciting products to its local customers. The Sy-Klone offerings include enclosed cab filtration, air precleaning for engines and high efficiency air filtration for heavy equipment.

“We can offer customers a complete cab air quality system that includes both fresh air and recirculated air systems combined with high-efficiency HEPA and EPA filtration as well as real-time CO2 and pressure monitoring,” says Postma.

“Tighter international standards – embodied in the ISO 23875 global standard for cab air quality – are leading the world’s major mining companies to adopt better air quality control systems for their heavy machinery cabs and other operator enclosures,” he explains. “The trend is also being felt in southern Africa, as mining and construction companies look for more effective dust control solutions.”

The new ISO standard will require machine cabs to have a fresh air pressurisation solution, a recirculation system and a monitoring device, he points out. They will also need to be fitted with filtration that exceeds 94% efficiency at 0.3 microns, such as Sy-Klone’s EPA and HEPA filters. Many mining and earthmoving vehicles and equipment are imported with filtration systems that are not suited for the region’s dry and dusty conditions.

“Sy-Klone solutions can be retro-fitted onto vehicles and equipment to provide unsurpassed levels of protection and be in compliance with emerging standards,” says Postma. “Higher levels of filtration also support the safety of machine users, promoting operator alertness and improving productivity.”

He highlights that the Sy-Klone distributorship is a natural fit with Booyco Engineering’s HVAC specialisation and experience – as more effective filtration for the cab also enhances the performance and lifespan of the air conditioning system.

“This collaboration allows us to offer an even more comprehensive solution to our customers’ needs, harnessing the latest technology to meet rising global standards,” he concludes

How changes in the small-scale mining sector are impacting the environment

0

The value of Ghana’s gold export receipts for 2022 alone is estimated to be US$ 6.6 billion.

Meanwhile, the revenue accrued declined from US$ 6.779 billion in 2020 to US$ 5.083 billion in 2021. This was attributed to the contraction in gold production, particularly the near-collapse in the volume of gold exports by the small-scale mining sub-sector.

Furthermore, gross receipts from the export of minerals waned from US$ 6.998 billion in 2020 to US$ 5.241 billion in 2021, representing a 25 percent downturn. However, gold exports in 2022 alone was more than the total minerals export value for the previous year.

The development comes on the back of industry expectation for a 12.5 percent increase in the 2022 year under review as output from large-scale gold producers in the country, against the previous year’s gold production of 2.7 million ounces.

The Minister for Lands and Natural Resources, Samuel Abu Jinapor, at a recent press briefing, in Accra, disclosed that, in the small-scale mining space, gold output went up from 3,429.91kg in 2021 to 22,158.25kg in 2022, representing about 550 percent increase.

These among others demonstrate the significance of the ‘gold sector’ (particularly the small-scale sub-sector which provides an estimated 40 percent of Ghana’s total gold output, while employing close to some 1 million people) to the national economy.

How changes in the small-scale mining sector are impacting the environment
A woman artisanal small-scale miner
But, despite this, the small-scale mining sector has been fraught with an age-long illegal practice commonly known as ‘galamsey.’ This menace has since brought the ‘second-tier gold production industry’ into disrepute in recent years, notably due to its wanton environmental destruction and pollution resulting from the practice.

How changes in the small-scale mining sector are impacting the environment
An illegal mining site
In the face of these challenges, successive governments have tried various interventions, in a bid to end illegal mining which is pervasive in the gold mining regions of the country.

In 2017, the government promised to end the ‘galamsey’ menace, and subsequently halted all small-scale mining activities and launched intense security operations to clamp down on those involved in the illegal mining operations.

This notwithstanding, the country has yet to witness the end of galamsey activities. At a meeting with the Ghana National Association of Small-scale Miners, Mr. Jinapor said the government remains unrelenting in its efforts to sanitise and regulate the small-scale mining sector.

How changes in the small-scale mining sector are impacting the environment
Sector Minister, Samuel Jinapor, addressing security personnel during a tour of an illegal mining site.
“The government is very mindful of the consequential and important nature of the small-scale mining sector of our country,” he said while also acknowledging the challenges.

This, however, comes on the back of several reformative measures initiated to curb the situation, including the introduction of a mercury-free gold processing technology dubbed, the ‘gold katcha.’

The new technology, comprising crusher, miller, concentrator, and upgrading smelting system, is envisaged to help eliminate the use of mercury to extract gold from the ore. This follows the adoption of the Minamata Convention on Mercury, which enjoins state parties to take measures to reduce and where feasible, eliminate the use of mercury in artisanal and small-scale mining.

At the inauguration of about 100 of these pieces of equipment, last year, the President, Nana Addo Dankwa Akufo-Addo, said it will significantly help to protect the health and lives of small-scale miners, and the natural environment, and above all, protect the population from the debilitating hazards of mercury use.

How changes in the small-scale mining sector are impacting the environment
Some of the gold katcha equipment inaugurated by President Akufo-Addo
This is because the uncontrolled use and exposure to mercury, aside from contaminating water bodies and destroying aquatic life, can also result in damage to the nervous, digestive, and immune systems.

The President, however, also acknowledged that the small-scale mining sector has been a major vehicle of environmental pollution and land degradation, including the threat posed to life by the use of mercury in the recovery of gold and its subsequent release into the ecosystem.

But, he noted that banning small-scale mining cannot be the solution to this challenge. It is against this backdrop that he said several efforts have been made to ensure a viable, responsible and sustainable small-scale mining sector.

Among these efforts, is the Community Mining Scheme, which has been revamped along with an operational manual that has been developed to promote responsible and environmentally-sound small-scale mining.

The policies and strategies being implemented, according to the Ministry in charge of the sector, are to promote viable businesses for Ghanaians who intend to work in the mining industry while protecting the environment.

“This is part of the broader vision of the government to make Ghana the mining hub of Africa, where all mining and mining-related activities from exploration to downstream production, and from innovation to research, will be centred,” the Minister stated at the ceremony.

The Communications Director of the Ghana National Association of Small-scale Miners, Abdul Razak Alhassan, in an interview, expressed his satisfaction with the new technology.

He highlighted the effectiveness of the gold katcha, stating that it allows miners to retrieve around 90 percent of the gold, compared to the previous method’s yield of only 30 to 40 percent.

He lauded the Minerals Commission for digitizing its services, while noting that moving it online makes it easier for the acquisition and application of mining licenses.

Africa’s wettest mines look to Grindex for dewatering

0

A strategic drive to grow the Grindex dewatering pump footprint in key Southern African markets has already begun to deliver results for local distributor Integrated Pump Technology, with significant take-up in mines where dewatering is mission critical.

Among the countries seeing the most action is the Democratic Republic of Congo (DRC) and Zambia, says Integrated Pump Technology Managing Director Jordan Marsh. With rising global demand for copper in a world pursuing a lower carbon future, mines in the DRC have been growing.

“With many of these mines being among the wettest in the world, dewatering is a vital duty that is well served by our quality Grindex pumps,” says Marsh. “Since we established sales and support channels with well-placed distributors in these regions, we have seen sizeable orders coming through for our equipment.”

He notes that many copper mines in Southern Africa are expanding and mining deeper, and in countries like the DRC, Zambia and Tanzania this means much more water being encountered in mining operations. Grindex submersible pumps are now playing an important role in keeping deeper mining areas operational and safe

Congo halts ERG’s copper project after waste leakage

0

Eurasian Resources Group’s Boss Mining copper and cobalt project has been halted by the Democratic Republic of Congo’s government, which cites environmental concerns after flooding in March sent mine waste into a river and nearby town.

The suspension is the latest sign of strained relations between copper miners and the Congolese government at a time when output is booming. While the Boss operation is relatively small, the suspension highlights a broader push by Congo to hold miners accountable for environmental damage, Mines Minister Antoinette N’Samba Kalambayi said.

The project is set to produce an average of 21,600 tons of copper and 3,600 tons of cobalt hydroxide per year.

N’Samba Kalambayi suspended the project for at least three months and ordered an investigation into possible reparations for damages, according to remarks to a Senate commission Thursday sent by the ministry. The Boss project was restarted by ERG in November, after spending more than three years on care and maintenance.

“For some time now, there have been more and more incidents in mining areas relating to the overflow of effluents and the destruction of dikes causing significant damage to the environment,” she said. “Such was recently the case at the Boss Mining installations.”

The “enormous environmental damage” could have been avoided or reduced if the company had updated its environmental management plan when it reopened, N’Samba Kalambayi told Boss in a May 29 letter ordering the shutdown that was shared by her ministry.

The miner will need to revise its social and environmental impact studies to resume operations or face further suspension, N’Samba Kalambayi told the senate commission.

ERG did not respond to emails or text messages requesting comment.

Bauchi to collaborate with North East states on mining, steel

0

Bauchi State Government is set to collaborate with the other five states of the North East region on the cluster through the Artisanal and Small- scale Mining (ASM) Department, Ministry of Mines and Steel Development, amid creating an enabling environment by providing security, infrastructure such as roads, electricity and water supply for the optimum operations of the cluster.

Governor Bala Abdulkadir Mohammed, who was represented by the secretary to the state government, Barrister Ibrahim Kashim on Tuesday inaugurated the newly established Kaolin Ore Processing Plant in Gwaram community of Alkaleri Local Government Area of the state, with an assurance to work with the federal government to advance the operational effectiveness of the project.

The governor said that the state government is determined and ready to continue to work with Miners Association of Nigeria, Kaolin Millers Association, Mineral Resources and Environmental Management Committee (MIREMC) and all other stakeholders on how to improve the value chain of the raw material.

He added that said his administration had established the Ministry of Natural Resources in 2020 with the aim of complimenting the Federal Government’s effort in streamlining the activities of solid mineral resources in addition to repositioning the Bauchi Mining and Exploration Limited (BAMSEL).

According to him, so far, the Bauchi Mining and Exploration Limited has acquired 17 licenses comprising 9 exploration licenses, 7 small scale mining leases and 1 reconnaissance survey permit, which makes it rank top in the North-East region.

“I am delighted to be part of this important and most auspicious occasion, which is essentially a journey of promises and fulfillments. What we are witnessing today started with the recommendations by the Economic Sustainability Plan Committee of the Federal Government in response to the challenges posed by COVID-19 Pandemic.

“The Federal Government had accordingly requested the Bauchi State Government for a piece of land for the setting up of the Artisanal and Small- scale Mining (ASM) Cluster and the Need Assessment for the North-East geopolitical zone. This noble objective has been achieved as we gather here today to commission the Kaolin Ore Processing Plant.

“Kaolin being an important raw material with a wider spectrum of industrial applications is abundant in more than five local government areas in Bauchi State and indeed the North-East geopolitical zone. It is estimated that annual national demand for Kaolin stands at 350,000 metric tons while local production is only 25,000 metric tons, leaving a huge deficit annually.

“This deficit will definitely create a humungous capital flight due to importation. This cluster is a special type being earmarked for an index Pharmaceutical Ingredient (IPL). There is no doubt that the ASM Cluster will help North-East and Nigeria at large to achieve the long desired national policy on local content, substitution and deletion of mineral resources.

“Let me inform the Minister of Mines and Steel Development that we will continue to look for the assistance of his Ministry in the areas of synergy, transparency, accountability and revenue generation from Solid Minerals. In Bauchi State, there are 341 licenses acquired by operators and/or speculators. These comprise of 152 Exploration Licenses, 17 Mining Leases, 55 Quarry Leases, and 117 Small Scale Mining Leases.

Read also: Africa is the future market for global steel fabrication — Austen-Peters, Dorman Long’s chairman

“The activities from exploration to marketing of these negligible resources are by far very important considering the number of titles acquired in the State. I would therefore like to call on the Federal Ministry of Mines and Steel Development to strictly enforce the policy on ‘Use it or Lose it’ on dormant and speculated licenses. On the other hand, considering the quantum of mining and mineral activities in Bauchi State, we want to see the enhancement of a royalty that truly reflects these activities.

“The Minister may wish to be reminded that the State has been working round the clock in developing the first mining policy in the North-East Geopolitical zone, a development that has been acknowledged and blessed by your Ministry, to our greatest dismay, however, this effort is being sabotaged by the Federal Mines Officer in the State due to his non-cooperation.”

On his part, Olamilekan Adegbite, Minister of Mines and Steel Development, explained that the Bauchi Kaolin Ore Processing plant is to process Kaolin needed for the use of the pharmaceutical industry in the country stressing that efforts should be made to embark on dry processing for the paint and other industries.
SHARE0

Small-Scale Mining Fetched Ghana US$1.2 Billion In 2022, Says Jinapor

0

Mr Samuel Abu Jinapor, the Minister of Lands and Natural Resources has stated small-scale mining has been contributing increasingly to the nation’s gold output as the sector produced a total of 712,405 ounces of gold last year.

He said it brought to the nation almost US$1,200,000,000 in export receipts, adding that all diamonds produced in the country in 2022, which amounted to 82,251.99 carats and generated US$3,900,000 in revenue were from small scale mining.

Mr Jinapor made the statement when he was speaking at the opening of a two-day transformational dialogue on artisanal and small-scale mining under the theme, “Sustaining Environmental Security and Human Right in Small Scale Mining Operations in Ghana” at Fiapre in the Sunyani West Municipality.

The programme, initiated by the University of Energy and Natural Resources (UENR) aimed at bringing together various stakeholders to deliberate on the issue and jointly make efforts towards a common direction.

It was attended by politicians, traditional leaders, students, members, and staff of the UENR, artisans and small-scale miners, civil society actors, representatives of large-scale mining companies and the media.

Mr Jinapor said small scale mining sector had been the source of employment for thousands of people and supported the lives and livelihoods of millions of the citizens.

But he added the increasing illegalities associated with the sector and resulting to the destruction of the environment remained a national challenge that required collaborative effort to end the menace.

Mr Jinapor said the government’s effort to clamp down on galamsey had been met with resistance because of the greedy and unscrupulous nation-wreckers destroying the environment for their personal interests.

He said government in addressing the threat of illegal mining had introduced policies and measures under the National Alternative Employment and Livelihood Programme (NAELP) to provide alternative sources of income and livelihood to persons engaged in the menace.

In that regard several young men women had been employed in the production of seedlings and reclamation of degraded mined lands in the Ashanti, Eastern and Western North Regions, the Minister added.

He said the Apprenticeship, Skills Training and Entrepreneurship module of the Programme was expected to be rolled out later this year to provide training for 5,000 youth in agriculture, technical, vocational, industrial, and mining skills.

Mr Jinapor therefore commended the UENR for introducing several novel programmes, including bachelor and graduate programmes in Sustainable Mining, Land Degradation Neutrality and Sustainable Land Management aimed at promoting sustainable mining and environmental protection.

The effort needed all hands-on-deck approach to promote sustainable resources extraction practices and transforming mined lands into viable lands for agricultural purposes, he said and called for intensification of education on responsible and sustainable mining practices.

Investor analysis: why African mines hold key to green energy transition

0

Investment Monitor analysis finds that foreign direct investment (FDI) into mines – and oil and gas projects – across the African continent is expected to rise in 2023, following a sluggish 2022.

The materials miners are interested in are those needed to make batteries and battery components for electric vehicles (EVs), but demand risks outpacing supply, and shortages of materials are expected by 2025, according to GlobalData analysis.

“Generally, there is currently either a shortfall of transition metals, or expected to be one in the coming years,” says David Kurtz, the director of mining and construction at GlobalData. “For some commodities such as lithium, cobalt and nickel, while supply and demand are quite balanced at the moment, as demand for EV batteries continues to rise, demand will quickly outstrip supply in the second half of the decade.”

Africa has some of the largest deposits of nickel, cobalt, graphite and lithium on Earth and is expected to produce 40,000 tonnes (t) of lithium this year. By 2030, that number is expected to climb to 497,000t.

There are, however, challenges to operating in Africa.

“Broadly, most of the easy-to-mine deposits have been, or are being, mined and so miners are increasingly having to go deeper and into more remote locations, which brings about safety and security risks,” Kurtz says. “Political instability and corruption also pose risks for miners in [certain locations in] Africa, along with challenges over regulations, which may be unclear.”

Despite this, the continent is well-positioned to help meet global demand for transition materials and investors have taken steps to begin exploration.

There has been greater exploration for graphite, lithium and rare earth minerals that will likely benefit established producers, as well as smaller mining markets like Côte d’Ivoire, Mozambique and Namibia, which will also present attractive opportunities for investors, analysis from risk consultancy ControlRisks finds.

Exploration under way in Namibia
Of these smaller mining markets, Namibia offers a functional political environment and low security risks, which foreign companies are most eager for.

Namibia historically ranks among the best countries in Africa in terms of security on Fraser Institute rankings, making it a more attractive jurisdiction compared with other countries on the continent.

“Namibia has a stable political and policy environment which is expected to lead to significant growth in investment in the coming years,” Kurtz says.

According to GlobalData, there are 135 mines in Namibia, most of them in the exploration stage, signalling high interest from mining companies.

“We have investors applying every day for permits and visas,” says Nangula Uaandja, CEO and chairperson of the Namibia Investment Promotion & Development Board.

The country’s work to maintain peace and security, put in place legislation and create an environment attractive to investors is paying dividends. Miners are optimistic about what lies below the Namibian desert soil and are encouraged by the stable environment.

“I believe the Namibian mining sector is underexplored, and there are opportunities for Namibia to play an increasing role in the green transition,” says Anthony Viljoen, the South African CEO of Andrada Mining, which operates exploration projects across Africa, including in Namibia. “They have tin, which is the glue that holds the whole green transition together now,” Viljoen says. “There is lithium, cobalt, nickel… it is all farmed there in relative abundance. The size of the deposits is off the charts.”

From mine to market
With the progress made in terms of regulatory and political stability, Namibia still has room to improve its attractiveness as an investment jurisdiction. For example, the country ranks 104th for ease of doing business, but Uaandja says the government has made improving this ranking a priority.

The country is determined to attract investment across the value chain, increasing beneficiation within its borders and across the continent. Though home to 30% of the world’s mineral deposits, 70% of mined minerals are exported.

“In terms of Agenda 2063, African leaders have realised that we have natural resources, but they are all being exported to other countries,” says Uaandja.

“There are significant opportunities for refineries in Africa, particularly in terms of the minerals that are mined on the continent, and this provides significant benefits for those who take up the first-mover advantages.”

From exploration to extraction and refining, Uaandja says there are many opportunities for companies. Namibia is also investing in vocational training in recognition that skilled labour is essential to develop the country’s nascent manufacturing sector. By 2050, according to the UN, Africa is projected to have the largest working age population in the world, with birth rates falling in other regions globally.

“Namibia is the best destination in Africa to invest in,” Andrada’s Viljoen says. “It is not perfect, but it is as close as you can get.”

Taseko’s Florence copper project inks historic preservation deal with U.S. EPA

0

Taseko Mines (TSX: TKO; NYSE: TGB; LSE: TKO) announced that as part of the National Historic Preservation Act (NHPA) section 106 process, a programmatic agreement has been executed by all required signatories, including the United States Environmental Protection Agency (EPA) and Taseko, regarding its Florence copper project midway between Phoenix and Tucson, Arizona.

The agreement is now in effect and stipulates requirements for the treatment, handling and protection of cultural resources on the Florence project site, in accordance with the NHPA. A draft of the deal was issued by the EPA in August 2022 for public comment and comments received were addressed prior to finalizing and executing the agreement.

Taseko president and CEO Stuart McDonald said, “The signing … is an important step in the EPA’s permitting process, and an indication that the EPA is preparing to make a final decision on Florence copper’s underground injection control permit.”

Taseko reports a net present value of US$930 million (after-tax, at an 8% discount rate) with an internal rate of return of 47% (after-tax) on measured and inferred resources of 363 million tonnes grading 0.35% copper.

For more information, visit www.TasekoMines.com.