SPECIAL FEATURE Mining
SPECIAL FEATURE Mining Many mining companies are thinking of expansion. SECTOR INSIGHT Energy plants are being constructed on mines. 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 NORTH WEST BUSINESS 2021/22 18
WWW.NORTHERNCAPEBUSINESS.CO.ZA ONLINE JOIN S US ONLINE WWW.GLOBALAFRICANETWORK.COM | WWW.NORTHERNCAPEB | | 10 REASONS WHY YOU SHOULD INVEST IN SOUTH AFRICA 01. HOT EMERGING MARKET Growing middle class, affluent consumer base, excellent returns on investment. 02. MOST DIVERSIFIED ECONOMY IN AFRICA South Africa (SA) has the most industrialised economy in Africa. It is the region’s principal manufacturing hub and a leading services destination. LARGEST PRESENCE OF MULTINATIONALS ON THE AFRICAN CONTINENT SA is the location of choice of multinationals in Africa. 03. Global corporates reap the benefits of doing business in SA, which has a supportive and growing ecosystem as a hub for innovation, technology and fintech. 05. FAVOURABLE ACCESS TO GLOBAL MARKETS ADVANCED FINANCIAL SERVICES & BANKING SECTOR SA has a sophisticated banking sector with a major footprint in Africa. It is the continent’s financial hub, with the JSE being Africa’s largest stock exchange by market capitalisation. The African Continental Free Trade Area will boost intra-African trade and create a market of over one billion people and a combined gross domestic product (GDP) of USD2.2-trillion that will unlock industrial development. SA has several trade agreements in place as an export platform into global markets. 07. YOUNG, EAGER LABOUR FORCE 09. SA has a number of world-class universities and colleges producing a skilled, talented and capable workforce. It boasts a diversified skills set, emerging talent, a large pool of prospective workers and government support for training and skills development. 04. 06. 08. PROGRESSIVE CONSTITUTION & INDEPENDENT JUDICIARY SA has a progressive Constitution and an independent judiciary. The country has a mature and accessible legal system, providing certainty and respect for the rule of law. It is ranked number one in Africa for the protection of investments and minority investors. ABUNDANT NATURAL RESOURCES SA is endowed with an abundance of natural resources. It is the leading producer of platinum-group metals (PGMs) globally. Numerous listed mining companies operate in SA, which also has world-renowned underground mining expertise. WORLD-CLASS INFRASTRUCTURE AND LOGISTICS A massive governmental investment programme in infrastructure development has been under way for several years. SA has the largest air, ports and logistics networks in Africa, and is ranked number one in Africa in the World Bank’s Logistics Performance Index. 10. SA offers a favourable cost of living, with a diversified cultural, cuisine and sports offering all year round and a world-renowned hospitality sector. EXCELLENT QUALITY OF LIFE Page | 2 19 SOUTH AFRICAN BUSINESS 2020
