Opportunity Issue 108

MINERALS COUNCIL SOUTH AFRICA
play in terms of economic development and transition. Some
of the basic materials that we are already mining, such as iron
ore and manganese for input into steel production, as well as
limestone for cement and various other materials remain critical
to ensuring that we are able to build that foundation for ongoing
development and economic success. On top of that, there is a huge
technology drive to explore and develop green minerals. South
Africa also is endowed with minerals that are critical to a lowcarbon
future. Manganese is one of those. With the development
of battery technology, it will grow in its importance. (Light)
Steel is fundamental to infrastructure, and infrastructure that is
adaptable to a low-carbon future and a future where we must
adapt to higher temperatures. South Africa is well-endowed with
large vanadium resources and reserves, which are also important
in battery technology. And of course, we have the platinum group
metals (PGMs). In addition to applications for auto catalysts and
jewellery, PGMs will play an important role in the development of
hydrogen as an energy source. These are just some of the mineral
commodities that South Africa is going to be contributing to this
pool of green metals.
I assume you welcome Bushveld Energy working on
vanadium redox flow batteries in East London?
That’s the kind of innovation we need.
Where else should we be looking for innovation?
There’s lots of work being done looking at hydrogen as a source of
energy. Partnerships include PGM suppliers, Sasol, development
capital providers such as the IDC and domestic and offshore
hydrogen technology developers. I am looking forward to what
will come out of that.
Do you see partnerships as key?
The future and future success is really going to be about
collaborations; we will not reach it alone. I would like to use, as an
example, Anglo Platinum and the hydrogen truck that they built.
They produce PGMs and require more efficient ways of mining. They
brought together partners to collaborate on a solution where it has
access to technology that will create a cost, energy and carbonefficient
truck for its mining applications. It hasn’t abandoned its
mining to focus on hydrogen. We are going to see a lot more of that
in terms of mining becoming a platform for developing innovative
mining solutions without miners necessarily abandoning their core
business activities.
Is South Africa going to be in a position to take
advantage of the potential green minerals boom?
That’s a fantastic question. It is really the current challenge now. We
need to resolve some key issues in the value chain to ensure that
we don’t lose out on the emerging critical minerals commodity
boom, again. One of the biggest challenges is around the
legislative environment in enabling investment into exploration.
You know about the constraints related to the cadastral system
and the slow pace at which exploration and mining permits are
being processed. That’s a huge trap of capital that is waiting to
be invested for the development of new mines and realisation of
enormous value. From a mine-development capability and skills
perspective, the industry is ready and able. Mining is a global
business and South Africa has exported many mining skills to
international mining destinations. We can attract and return these
capabilities to stimulate and grow our industry.
What is the problem with the cadastral system
and are you hopeful that it will be fixed?
Not only hopeful, but it is an imperative that we fix the situation and
have an effective system installed. That is the only option. In terms
of the outstanding applications for prospecting and mining, the
cadastral system should enable the whole process of application
and approval to happen with ease on the part of the potential
investor before they invest any money towards exploration drilling
and developing a mine. It is an off-the-shelf system which has
been installed by many other African countries that are developing
their mineral potential. It is quick to install and is user-friendly as
we have seen in Namibia, Botswana, Mozambique and Malawi, to
name just some of our neighbours.
The Council for Geoscience is remapping South Africa
and Petroleum Agency South Africa is searching
for new sources of gas; would it help them too?
Exactly. Where there is a desire to find commodities for exploration,
whether it is oil or gas or minerals, it is a system that can be applied
to all of those commodities.
Are more mining companies going to start
generating their own energy?
I take a step back, and see this is an immediate risk management
strategy, but for the long term I don’t think it is something that will
necessarily become a core part of their business unless the miner
abandons mining and then reinvents themselves as a renewable or
an energy company. While mining companies must contend with
uncertainty of electricity supply from Eskom, they will invest in
generating their own electricity for security of supply. Further, the
cost of electricity has been increasing and so self-generation plays
an additional role of reducing the cost of business. That investment
is going to play an important role in maintaining the global cost
competitiveness of our mines.
But they won’t be selling into the grid, will they?
They will invest for what they need and there’s a third component
in terms of reducing their own carbon emissions because they will
be taking less of Eskom’s electricity.
Carbon efficiency will add to their global competitiveness. With
time, as electricity generation supply becomes stable, I foresee
value-unlocking opportunities emerging where mines have
invested in self-generation installations. A lot of these installations
could be the basis of new energy companies, where the mining
company pays a tariff to get access to that electricity and they get
the investment off their balance sheet.
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