December 2022 - January 2023 VOLUME 1. ISSUE 311 $11.95
Not just another boom:ot just another boom:ot just another boom:
N N
Africa’s critical mineral futurefrica’s critical mineral futurefrica’s critical mineral future
A A
l Lithium continues to flyLithium continues to flyLithium continues to fly
Australia’s Paydirt December 2022 - January 2023
l l
l Mining Indaba PreviewMining Indaba PreviewMining Indaba Preview 11
l l
l Argentina turns to AustraliaArgentina turns to AustraliaArgentina turns to Australia ISSN 1445-3436 343007
l l
771445 9
CONTENTS
PAYDIRT (ISSN 1445-3436) 6 NEWS
Published by
Paydirt Media Pty Ltd. The Australian lithium sector continues to
A.C.N. 063 985 133 go from strength to strength with demand
sending prices skyrocketing in 2022. We look
Head Office: at the state-of-play in the sector through two
Suite 9, 1297 Hay St, West Perth companies; one established and one emerging.
Western Australia 6005 Dominic Piper investigates Pilbara Minerals’
P.O. Box 1589, West Perth September quarter performance, while
Western Australia 6872 Fraser Palamara speaks with Global Lithium
Phone: (+61 8) 9321 0355 Resources managing director Ron Mitchell
Facsimile: (+61 8) 9321 0426 about his company’s recent growth
[email protected]
www.paydirt.com.au
24 COVER 6
As the world wakes up to the importance of
Editorial: minerals and mining to achieving net zero,
Editor: Dominic Piper governments across the globe are assessing
Journalists: Michael Washbourne, their current accessibility to supply. The usual
Fraser Palamara, Yvette Ogilvie resources superpowers of China, Australia
Art director: Nick Brown and Canada are already well advanced but
what of the developing world? Paydirt asks
Advertising:
Advertising manager: Richa Fuller leading natural resources policy experts –
including former De Beers director Sheila
Subscriptions: Vidy Suastika Khama – about the risks and rewards facing
Phone: (+61 8) 9321 0355 resource-rich emerging nations in the energy
Facsimile: (+61 8) 9321 0426 transition
Pre-press and printing:
Vanguard Press, 26 John St, 30 INDABA PREVIEW
Northbridge WA 6003
Member of: The Investing in African Mining Indaba
returns to its traditional February date on the
international mining calendar after a three-
year COVID delay. In our comprehensive
preview, we look at the Australian companies 30
set to attract attention in Cape Town as well as
examining the key political issues surrounding
Paydirt Media mining on the African continent
Executive chairman: Bill Repard
Finance manager: Giovanny Jefferson
Accounts/administration: 86 REGIONAL ROUNDUP
Anjali Mediratta. Away from Africa, Australian companies
Conferences: Angelique Julien, continue to shine on the international stage. As
Paula Fujita, Melita Fogarty part of our monthly regional round-up, Michael
Washbourne speaks with lithium explorer Galan
VOLUME 1. ISSUE 311 $11.95
December 2022 - January 2023
Lithium about its progress in Argentina, and
we shine the spotlight on the Latin American
country’s recent progress towards a more
liberalised investment environment
N N
Not just another boom:ot just another boom:ot just another boom:
A A Africa’s critical mineral futurefrica’s critical mineral futurefrica’s critical mineral future Sheila Khama,
l
l
Australia’s Paydirt December 2022 - January 2023
l Lithium continues to flyLithium continues to flyLithium continues to fly
l Mining Indaba PreviewMining Indaba PreviewMining Indaba Preview 11 African natural resources
l
l
l
l Argentina turns to AustraliaArgentina turns to AustraliaArgentina turns to Australia ISSN 1445-3436 771445 343007
l
9 policy expert
86
Member of:
Registered by Australia Post PP 643938/0071. No pages or articles in this publication may be reproduced in any form without
the consent of the publisher. This includes photographs either taken by Paydirt Media staff or provided by other parties.
Courageous Leadership
Courageous Leadership
Executive coaching for technical professions
Leadership coaching for technical professionals
— empowering resilient and authentic leaders —
www.morelconsulting.com.au +61 (0) 423 843 639
www.morelconsulting.com.au/paydirt [email protected]
paydirt strip Dec22 FINAL.indd 1 07-Nov-22 12:03:18
We are coming to the end of what
has been a rough year for the
resources sector...
aving survived and even thrived during the COVID lockdown, tralian gold price – with newly minted and low-grade producers
HWest Australian miners entered 2022 full of confidence. How- in particular feeling the pressure.
ever, they have been hit by several macro factors during the year The last two months alone have seen several gold stumbles.
which have left many of them limping towards the 2022 finish line. Gascoyne Resources Ltd put its Dalgaranga mine on care-and-
maintenance, while new producers Red 5 Ltd and Calidus Re-
Labour: sources Ltd tapped the market for cash relief as they ramped-up
their King of the Hills and Warrawoona operations respectively.
Firstly absenteeism caused by Premier Mark McGowan finally There was one group of miners, however, who were able to
lifting the border restrictions in April. The first few months after the increase margins. Lithium miner Pilbara Minerals Ltd heads to-
hard borders came down revealed exactly why the State’s major wards the end of 2022 as a $15 billion company, having put 70%
miners were happy to sacrifice Eastern States and international on to its share price value during the year.
workers during the lockdown, WA’s low COVID rates meant the Pilbara posted an average realised price of $US4,813/dmt
workforce remained healthy and productive. of SC6 spodumene concentrate in the September quarter, up
As soon as the virus spread in the WA community, producers from $US4,287/dmt in the June quarter and $US2,650/dmt in
of every size and across every commodity group reported falls in the March quarter.
productivity caused by staff absenteeism. IGO Ltd enjoyed a similar sales result, with chemical grade
While the strongest COVID wave has passed (although others spodumene sales revenue of $US4,187/t for September versus
are on the horizon), WA miners are still struggling from a labour $US1,770/t for the equivalent period last year.
perspective. Interstate and international workers are still to return to Such revenue increases render cost inflation almost redun-
the State after the pandemic and the majors in particular are finding dant.
their expansion plans hampered by a lack of workers in every role The ups and downs of different commodity groups this year
from senior professionals, to trades assistants and cleaners. (I have demonstrates above all just how resilient the WA resources sec-
been told anecdotally by two separate friends of large numbers of tor now is.
unskilled, lightly trained backpackers working on sites, an occur- The depth and breadth of the sector means that while com-
rence which would’ve been barely imaginable a few years ago.) modity-specific booms will continue to wash over the WA econ-
omy in waves, there is unlikely to be a major crash. As one com-
Supply chains: modity group falls, another will replace it.
Given the diversity it enjoys, the WA industry is as close to
The next major global issue to impact WA miners was the recession-proof as any commodity-driven economy in history.
stretched international supply chains. Starting with fuel, it soon
migrated to everything from steel to explosives. Here, it has been As this is our final issue of 2022, I would like to thank all readers,
geopolitical issues which have created the problem with Russia’s subscribers and advertisers for their support during the year. After
invasion of Ukraine placing strain on consumables and China’s the uncertainty of 2020 and 2021, Paydirt finds itself in fine fettle
zero-COVID policy restricting supply of key construction materials. and we hope to continue that in 2023, providing our audience with
The shortages appear to be easing but with China still pursuing the same trusted, independent coverage of the sector while intro-
total elimination, there could be little relief in 2023.
ducing and expanding our offering.
Inflation: If readers have ideas or requests for 2023
Even if supply chain delivery has improved, prices haven’t
with cost escalation rampant over the last six months in par- and beyond, feel free to get in touch with
ticular. me at [email protected]
If the June quarterly reports were a lament about labour avail-
ability, the September statements displayed the impact of infla-
tion on the WA industry. Miners have seen margins squeezed
as yo-yoing commodity prices rub up against climbing costs.
The gold miners have been hit the worst – despite a strong Aus- [email protected] @DominicPiper
PAGE 4 DECEMBER 2022 - JANUARY 2023 AUSTRALIA’S PAYDIRT
NEWS
Unstoppable Pilbara receives
government boost
nvestor enthusiasm for Pilbara Minerals The debt funding package provides ing the quarter. The operation’s original
ILtd continues unabated with even the another boost to Pilbara after a remark- Pilgan plant continues to outperform ex-
Australian Federal Government throw- able September quarter saw production pectations with production currently in the
ing its support behind the buoyant lithium of 147,105 dmt of spodumene concen- range of 360-380,000 tpa.
miner. trate from Pilgangoora with 138,249 dmt As well as the strong contract sales pric-
Shares in Pilbara have risen 70% over shipped. The company received an av- ing, Pilbara also enjoyed increased rev-
the course of 2022 as the miner benefits erage realised sales price of $US4,266/ enue from its innovative Battery Material
from rampant demand for spodumene dmt for its SC5.3 concentrate product (up Exchange (BMX) auction platform. The
concentrate product from its Pilgangoora from $US4,287 in the June quarter) at an company conducted three auctions during
operation in Western Australia. Such is the average cost of $US434/dmt (down from the September quarter, steadily increas-
outlook for lithium, the company is prepar- $US462). ing the price received from $US6,188/
ing for expansion and has secured a $250 Quarterly production was boosted by dmt in July, to $US6,350/dmt in August to
million long-term debt facility from the Aus- contributions from the Ngungaju plant $US6,988/dmt in September.
tralian Government to assist it. which hit nameplate capacity of 180- “The strong prices received for the BMX
Pilbara’s P680 project will see the com- 200,000 tpa spodumene concentrate dur- cargoes demonstrate continued robust
pany’s Pilgan processing plant lifted to
a 100,000 tpa spodumene concentrate
capacity. A concurrent project to build a Pilbara Minerals successfully commissioned its Ngungaju plant at its Pilgangoora lithium
dedicated 5 mtpa crushing and ore sort- operations during the September quarter, with the facility hitting its 200,000 tpa capacity
ing facility will replace existing contracted
crushing facilities and pave the way for
future expansion which could ultimately
see 1 mtpa of concentrate produced from
Pilgangoora.
The $250 million finance facility has
been provided through two separate $125
million loans from Export Finance Austral-
ia (EFA) and the Northern Australia Infra-
structure Facility (NAIF).
“We are extremely pleased to have re-
ceived notice of the funding approvals
from both EFA and NAIF,” Pilbara manag-
ing director Dale Henderson said. “The
continued support from the Australian
Government is a significant endorsement
for Pilbara Minerals [which] is a major
player in the growing global lithium sup-
ply chain and demonstrates the Australian
Government’s commitment to our domes-
tic critical minerals industry.”
PAGE 6 DECEMBER 2022 - JANUARY 2023 AUSTRALIA’S PAYDIRT
The Pilgan plant continued to deliver above
expectations during the September quarter company’s P1000 project which would a demonstration-scale facility continued
see Pilgangoora’s total production capac- with FID for the pilot plant expected in the
ity lifted to 1 mtpa. March 2023 quarter.
demand for lithium raw materials across Pilbara said FID for the P1000 project A second value-add JV involves Kore-
the global lithium-ion supply chain,” the was on-track to be taken before the end an steel giant POSCO, which is currently
company said. of 2022. building a 43,000 tpa lithium hydroxide fa-
With both Pilgan and Ngungaju at The company’s expansion ambitions cility in Gwangyang, South Korea. Pilbara
steady-state, attention has now turned to extend beyond the open pit. At Pilgan- has an option over a 30% interest in the hy-
expansion at Pilgangoora. goora, it continues to progress R&D work droxide plant and will feed the facility with
The P680 project is expected to deliver on the Midstream project with JV partner its expanded output from Pilgangoora.
an additional 100,000 tpa of concentrate Calix Ltd. Using Calix’s calcination tech- The company said senior management
production for a capital cost of $297.5 mil- nology, the JV is pursuing production of a would be visiting the facility in December
lion. Earthworks and ordering of long-lead lithium salt material which boasts higher ahead of commissioning in the second half
items began in the September period with lithium metal content (35% versus 6% in of 2023.
commissioning and ramp-up expected to conventional concentrate), less alumina-
occur in the second half of 2023. silica waste and a much reduced carbon – Dominic Piper
The P680 price tag also includes $50 intensity.
million of pre-investment capital for the Pilbara said studies into construction of
AUSTRALIA’S PAYDIRT DECEMBER 2022 - JANUARY 2023 PAGE 7
NEWS
Global Lithium has landed
he hype surrounding Global Lithium ated “a little bit of history” by securing such
TResources Ltd (GL1) solidified in No- lucrative investments.
vember when the company secured more “I don’t know of a project offhand that’s
than $120 million of predominately insti- had the level of interest we’ve had and it’s
tutional funding to accelerate exploration not just from the investment community,”
and development of its pegmatite-littered Mitchell told Paydirt. “I think a lot about the
projects in Western Australia. discussions we’re having with downstream
GL1 pocketed more than $110 million in partners in the offtake piece and the inter-
institutional funds and a further $10 million est there is next level, considering we are
from a share purchase plan which will go pre-economic [resource].
towards the Manna and Marble Bar spo- “Hopefully we’ve created a little bit of
dumene projects – proximal to Kalgoorlie history, we’re amazed at the outcome.”
and Port Hedland respectively – including The institutional placement welcomed
camp infrastructure, metallurgical testing nearly 70 new investors to the company
and scoping and feasibility studies. register while existing shareholder Mineral Ron Mitchell
The bulk of the funding will support the Resources Ltd upped its stake to 9.9%.
company’s $60 million acquisition of the Mitchell said the quality of the investors a 10-year deal for 30% offtake.
remaining 20% it currently does not hold was indicative of the potential expected Mitchell said overseas interest in Man-
in Manna from gold explorer Breaker Re- from Manna. na demonstrated just how advanced the
sources NL. “The interest we’ve received is incred- lithium story has become for GL1 and the
GL1 has experienced extreme share ible and it’s not just the money coming in greater battery materials market.
price growth since joining the ASX in May. from institutional and sophisticated inves- “That’s the bigger picture. On the back
At the time of print, the company’s stock tors, it’s the quality of those institutions,” of this raise, it sends a very clear signal
had climbed nearly 600%. The massive he said. “Some really big names in the to market,” he said. “A lot of these funds
capital raising is an unsurprising continu- resource industry; funds that are very fo- are incredibly well articulated in terms of
ation of momentum but is considered all cused on the energy transition. We’re re- lithium and the EV thematic. Gone are the
the more impressive given the company is ally pleased.” days of pitching to institutional investors
yet to define an economic resource from Argonaut Securities Pty Ltd, Canaccord and delivering them a ‘lithium 101’ slide
either of its projects. Genuity Australia Ltd and Macquarie Capi- deck. They really know their stuff.
Large capital raisings this early into the tal helped raise the funds which included “It certainly sends a signal the EV the-
development phase are typically reserved discussions with investors domestically matic has arrived, it’s not a question of
for headline discoveries, such as Julimar and abroad. ‘when’ or ‘if’, it’s here. We’re seeing the in-
and Hemi in recent times. GL1 is already linked to the global sup- dustry unfold before our eyes.”
Although managing director Ron Mitch- ply chain, including a strategic investment Although Marble Bar was GL1’s flagship
ell believes GL1 has passed the “early” de- from Chinese company Suzhou TA&A Ul- project when the company joined the mar-
velopment phase, he hopes to have cre- tra Clean Technology Co which has signed ket, it was the initial buy-in at Manna in De-
cember 2021 that turned heads. Shortly
after landing in the pegmatite-hosted spo-
dumene tenements outside of Kalgoorlie,
GL1’s share price broke the $1 threshold
for the first time.
At the time of print, GL1 was readying
to release its first update to Manna’s 9.9mt
@ 1.14% lithium maiden resource follow-
ing rigorous exploration via 20,000m RC
and 4,000m diamond drilling.
Mitchell is already contemplating the
next plan of attack at Manna.
“We’re incredibly confident the results
we’ve had thus far at Manna are going to
deliver an economic project,” he said. “As
I’ve said to the boys, they just keep drill-
ing – the more exploring they do, the more
lithium they find.
“We’ve also got a resource that’s open
along strike to the north-east and also to
the south-west. That’ll be the focus of our
additional drilling campaign next year.”
– Fraser Palamara
PAGE 8 DECEMBER 2022 - JANUARY 2023 AUSTRALIA’S PAYDIRT
NEWS
Rare find may trigger pegging rush
new pegging rush could descend on
A the largely unexplored and remote West
Arunta region of Western Australia after rela-
tive newcomer WA1 Resources Ltd made an
unexpected niobium-rare earths discovery.
Shares in WA1 initially soared more than
530% after the company, which only listed on
the ASX last February following a $4.5 million
IPO, reported an intriguing drilling intercept
of 54m @ 0.62% niobium, 0.18% TREO and
3.85% P2O5 from 162m from the very first
hole punched into the P2 geophysical target
at the Pachpadra prospect, West Arunta.
That intersection occurred within a broader
interval of 142m @ 0.31% niobium, 0.17%
TREO and 3.94% P2O5 from 74m and end-
ed in 2m @ 1.22% niobium, 0.22% TREO
and 5.73% P2O5. Samples from the top 74m
are yet to be assayed, but there is believed to WA1 has turned heads after making a surprise niobium-rare earths discovery in the remote
be potential for further mineralisation. West Arunta region
Investors have continued to rally behind the
fascinating find, with WA1’s stock peaking at
$2.92 in the weeks following the discovery are underpinned by carbonatite mineral sys- In an ASX statement, Curtis said the Iluka
announcement, having traded at just 13c/ tems. partnership was a major step in his compa-
share for most of October. If WA1’s reported discovery continues to ny’s bid to become a significant alternative
WA1 managing director Paul Savich said stack up, it is likely to trigger a rush of new ex- producer of dysprosium and terbium.
the discovery of a mineralised carbonatite plorers to the West Arunta which has histori- Iluka managing director Tom O’Leary said
system in the West Arunta was the first of its cally not been subject to a great deal of major the relationship was mutually beneficial for all
kind for the region. exploration activity. parties, including downstream consumers of
“For our first hole at P2 to have intersected Rio Tinto Ltd headlines a very small list of rare earths.
high-grade niobium mineralisation that companies currently exploring in the remote “Previously, intermediate rare earth prod-
remains open and with the highest grade region. Among those are Encounter Re- ucts such as Northern Minerals’ concentrate
at the end-of-hole, along with elevated rare sources Ltd which owns the Alieron project would require export overseas prior to refin-
earth elements and phosphorus, is an excit- surrounding WA1’s discovery. ing to produce separated rare earth oxides;
ing result,” he said. Sampling at Aileron in early 2022 identified this is no longer the case,” O’Leary said.
“To date, we have only assayed 4m com- the presence of rare earths as well as poten- “Iluka’s agreement with Northern Minerals
posite samples commencing from 74m depth tial IOCG targets. demonstrates the Eneabba refinery’s strate-
in this hole, where drilling entered fresh bed- Rare earths continues to be one of the hot- gic importance in fostering new supply chains
rock. With the knowledge that we are in a test commodities in the marketplace with a for critical minerals that are essential to global
mineralised carbonatite system, we will assay number of ASX-listed juniors now assaying electrifications and the transition to a low-car-
single metre splits for the entire hole. for neodymium and praseodymium indica- bon economy.”
“The geophysical anomaly at P2 extends tors, on top of scrambling for available ground Meanwhile, Arafura has entered into a
for approximately 3km, demonstrating the known to host the desired mineralisation. cornerstone binding offtake agreement with
significant exploration potential of this car- Several of the established rare earths play- Hyundai Motor Company and Kia Corpora-
bonatite system. Furthermore, there are other ers have also experienced a resurgence with tion to supply neodymium and praseodymi-
untested anomalies within the project area, investors over the past 12 months, includ- um from its Nolans rare earths project in the
which could now represent further targets for ing Northern Minerals Ltd and Arafura Rare Northern Territory over an initial seven-year
this style of mineralisation.” Earths Ltd. term, with the option for a further five years.
Further results from the maiden drilling pro- Northern Minerals has undergone a major It represents about 40% of the 85% of an-
gramme at West Arunta were expected at the corporate structure with former Lynas boss nual production available to be secured under
time of print. Nick Curtis coming on board as executive long-term sales arrangements.
There are currently only three major nio- chairman and Iluka Resources Ltd set to The agreement also allows for the buyers
bium mines in the world despite the key tech- provide up to $73 million of funding support to take the neodymium and praseodymium in
nology input being listed as a critical and stra- to complete a DFS for a mine and commer- the form of an oxide or its metal equivalent.
tegic mineral by countries such as Australia, cial-scale beneficiation plant at the Browns Contract volumes are for 600 tpa in the first
Japan, India and the US. Globe Metals & Min- Range project in the East Kimberley. year, increasing to 1,500 tpa in years four to
ing Ltd is the only other ASX-listed company Rare earths concentrate from Browns seven to align with the expected ramp-up of
with a primary vanadium asset: the Kanyika Range will also be sent to Iluka’s upcom- the project.
project in Malawi. ing refinery at Eneabba for processing. First – Michael Washbourne
Each of those three niobium mines, as well production from the former is scheduled for
as Lynas Rare Earths Ltd’s Mt Weld deposit, 2026.
PAGE 10 DECEMBER 2022 - JANUARY 2023 AUSTRALIA’S PAYDIRT
High Quality
Proven Technology
Onsite Gold Assays
Rapid Turn Around
Large Sample Size
Single Operator
Low CAPEX/OPEX
Robust
delivering a large number of assay results at low cost.
Short pulverizing/leach times of 1-hour have assays reported
within 2 hours.
Large sample size capability makes the PAL100 ideal for
coarse gold analysis, reducing the nugget effect.
The PAL1000 contains 52 sample pots, each capable of
processing up to 1kg ore samples.
Samples are completely pulverised (typically >90% passing
75um) and simultaneously leached with MPC’s uniquely
formulated Assay Tabs™.
Once leaching is complete, leach solution is collected
and analysed for gold by AAS. Silver and Copper analysis •
can also be performed . •
The pots and grinding media are washed before returning
For your onsite gold analysis needs, contact MPC at:
Mineral Process Control (MPC) Pty Ltd
30 Furniss Rd LANDSALE WA 6065
CLEAR SPACE
IPOs
NO TEXT TO BE PLACED HERE
Patriot flies the lithium flag
nvestor appetite for popular energy miner- The governments are clearly very sup-
Ials such as lithium and uranium remains portive through grants and funding, and
strong, with only one new gold company we’ll obviously be talking to them about
expected to join the ASX before the end of that once we get listed and start advancing
2022. these projects.”
West African-focused Toubani Resourc- CPS Capital Group has been appointed
es Inc is the lone non-critical minerals com- lead manager of the Patriot IPO, with the
pany in a queue of 10 awaiting entry onto company tentatively pencilled in to list on
the Australian bourse before Christmas. If the ASX in early December.
the TSX-listed explorer’s proposed $32.5 Thick, who was most recently head of
million IPO for a second home on the ASX Tianqi Lithium Australia, is joined on the
is successful, it will be just the second pre- Patriot board by seasoned lithium execu-
cious metals listing since July. tives Matt Gauci and Oliver Kruezer, who
Of the impending arrivals before another was primarily responsible for the evaluation
bumper year of resources IPOs comes to and acquisition of the three projects the
an end, three are lithium-dominant (Desoto new company is bringing to the market.
Resources Ltd, Lightning Minerals Ltd and Patriot owns the Keystone and Tinton
Patriot Lithium Ltd), two have nickel (North- West projects, both located in the Black
am Resources Ltd and Bayrock Resources Hills region of South Dakota, as well as the
Ltd) while uranium, vanadium and even Wickenburg project in Arizona’s appropri-
high-purity quartz are also set to feature. ately named Pegmatite Belt.
Most flagship projects are located in Thick believes the company is bringing a
Western Australia but there are a small healthy mix of Australian lithium expertise
handful which have turned to overseas op- to areas known to be highly supportive and
portunities, including US-focused Patriot accustomed to mining.
which is seeking up to $10 million for rapid “There are some other companies mov-
exploration and development of its lithium ing into the [Black Hills] area as well, so
portfolio across two high-grade belts in Ari- you’re starting to see an expansion into the
zona and South Dakota. lithium space,” he said. “It’s predominantly
Patriot chairman Phil Thick believes been other minerals, there’s been a lot of
North America is easily the hottest destina- gold exploration, tantalum, etc, as happens
tion for lithium in the world right now. in these areas, and now lithium.
“It’s a significant market on the demand “I think they’ve been very receptive to us.
side, the US currently imports 90% of its We’ve got people on the ground over there,
lithium,” Thick told Paydirt. local people, but with some Australian ex-
“Predominantly that comes from China, perience. I think everybody realises that
which the US obviously no longer sees as Australia probably leads the world in hard
being ideal, so it’s not only a great oppor- rock mining of lithium, so to get expertise
tunity for exploration and development, but out of Australia, added to the general min- U U
US-focused Patriot Lithium is one of 12 S-focused Patriot Lithium is one of 12 S-focused Patriot Lithium is one of 12
the market is right there. ing experience that’s in the area, it’s a pretty p p proposed new resources floats seeking roposed new resources floats seeking roposed new resources floats seeking
“In the US and Canada, I think you’re go- good combination.” t t to join the ASX before Christmaso join the ASX before Christmaso join the ASX before Christmas
ing to see significant moves in this space. No modern or systematic exploration for
PAGE 12 DECEMBER 2022 - JANUARY 2023 AUSTRALIA’S PAYDIRT
CLEAR SPACE
NO TEXT TO BE PLACED HERE
Performance of resources IPOs since September 2022, plus upcoming listings
COMPANY ASX TICKER IPO AMOUNT LISTING DATE PERFORMANCE SINCE LISTING
Terra Uranium Ltd T92 $7.5 million September 8 Down 19.4% to 29c
Octava Minerals Ltd OCT $6 million September 16 Down 28% to 18c
Atlantic Lithium Ltd A11 $17 million September 26 Up 43% to 83c
Critical Minerals Group Ltd CMG $5 million September 27 Down 28.5% to 20c
Basin Energy Ltd BSN $9 million September 29 Down 20% to 16c
Bubalus Resources Ltd BUS $5 million October 13 Up 4.5% to 23c
Tiger Tasman Minerals Ltd T1G $8 million November 14 N/A
Desoto Resources Ltd DES $12 million November 16 N/A
Toubani Resources Inc TRE $6.5 million November 16 N/A
Lightning Minerals Ltd L1M $7 million November 22 N/A
Orpheus Minerals Ltd ORP $6 million November 29 N/A
Richmond Vanadium RVT $35 million November 30 N/A
Technology Ltd
Taiton Resources Ltd T88 $10 million December 2 N/A
Patriot Lithium Ltd PAT $10 million December 5 N/A
Greentech Minerals Ltd GTM $7 million December 7 N/A
Northam Resources Ltd NRL $9 million December 16 N/A
Bayrock Resources Ltd BAY $12 million TBA N/A
Aeramentum Resources Ltd AEN $7 million TBA N/A
lithium has ever been completed at Keystone will stay at those levels, but they certainly don’t encounter any investor fatigue despite the
or Tinton West, which is proximal to the histor- need to be at the levels they currently are for pipeline of IPOs drying up through the back
ic Giant Volney mine that produced 1,080t of these sort of projects to be commercially vi- half of 2022.
spodumene concentrate grading up to 6.3% able,” he said. “We’re not worried at all about that,” he
lithium during the early 1940s. “My expectation is that they will continue at said. “If you’ve got the right projects in the
Wickenburg, a much earlier stage project, these levels, the supply-demand gap will re- right place and you’re not chasing ridiculous
contains an extensive pegmatite swarm iden- main and growth, particularly in the EV mar- amounts of money, I don’t think there’s really
tified over an estimated 8km by 5km area. ket, will continue to be substantial right across anything to worry about.
Rock chip assays have returned up to 7.5% the world, particularly in the US. I think we’re “We’ve kept this fairly tight, we’re only
lithium. in a really good spot from a timing perspective seeking the amount of money we need to
Thick expects the projects will resonate and an opportunity for Australians and West develop the projects.”
strongly with investors who have closely fol- Australians to invest in something that’s out- – Michael Washbourne
lowed the success stories of many WA-based side of the WA lithium market and has huge
lithium companies over the past few years. potential because of where it’s located.”
“There’s some debate around whether they Thick also believes Patriot is unlikely to
AUSTRALIA’S PAYDIRT DECEMBER 2022 - JANUARY 2023 PAGE 13
NEWS
Albanese budget makes critical statement
he Albanese Government’s first Federal to value add to Australia’s critical minerals do-
T Budget has proven to be a crowd pleaser mestically.
with the resources industry after promising Australia currently provides up to 60% of the
nearly $1 billion for renewable energy and criti- world’s lithium but the majority of supply is pro-
cal minerals projects. cessed or sold overseas. Lithium exports out
Presented by Treasurer Jim Chalmers to of Australia are forecast to increase more than
Parliament in October, the budget pledges 10 times over the next two years, potentially
more than $900 million for clean energy infra- growing to $14 billion in value.
structure and to shore up the country’s supply “A better future for Australia must mean
of critical minerals. a future made in Australia,” Chalmers said.
More than $800 million will go towards re- “No more sleepwalking while other advanced
newable energies such as solar panels and economies seize new opportunities – no more
batteries, while $100 million will be spent on surrendering industries and jobs overseas in Jim Chalmers
government grants for project development clean-energy manufacturing; in medical man- world will not reach net zero.”
and a critical minerals strategy. ufacturing; in new technologies; in agriculture; The Government is also supporting the
Chamber of Minerals and Energy of West- and in critical minerals – so that we can be a clean energy transition with the Australian Criti-
ern Australia chief executive Rebecca Tomkin- country that makes things again.” cal Minerals Research and Development Hub.
son praised the budget for matching the ideals Minister for Resources and Northern Aus- The programme unites Geoscience Australia,
of the country’s resources sector. tralia Madeleine King echoed Chalmers’ senti- CSIRO and the Australian Nuclear Science
“These measures are very much aligned ment for value-added processing of minerals. and Technology Organisation.
with the work our sector is already undertaking “These measures will help bring online More than $500 million of the budget was
to grow its ability to extract and refine forward- new sources of supply, support robust supply also allocated to supporting the end use of
facing commodities, and to reduce emissions chains, and create high-paying regional jobs clean energies, such as funding community-
as we work towards net zero targets,” she said. for Australians, while improving Australia’s criti- scale batteries and solar banks for businesses
Critical minerals for the energy transition in- cal minerals capability and export resilience,” and low income housing.
clude lithium, copper, nickel, graphite and rare she said. A “microgrid” project was also announced to
earths. “The programmes will help to establish bring improved energy security and affordabil-
During his speech to Parliament, Chalmers Australia as a renewable and critical minerals ity to remote communities.
criticised past government policies for failing superpower. Without Australia’s resources, the – Fraser Palamara
Trusted independent financial
advisor to the mining sector
2022: Advisor to 2022: Advisor to 2021: Advisor to 2021: Advisor to 2021: Advisor to
Iluka Resources Sibelco Pembroke Resources PYBAR Geopacific Resources
A$1.25bn financing of the A$49m investment in A$500m multi product A$99m sale of PYBAR US$100m financing (Loan and
Eneabba Rare Earths Refinery Diatreme Resources debt financing of the Olive Mining Services to Stream) for the greenfield
Downs Coking Coal Project Mastermyne Woodlark gold project
2021: Advisor to 2020: Defence co-Advisor 2020: Advisor to 2019: Advisor to 2018: Defence Advisor
Diversified Minerals to Cassini Resources Diversified Minerals Diversified Minerals to Explaurum Limited
A$27.5m sale of the Henty A$76m takeover by OZ A$200m sale of the Dargues A$100m development Unsolicited A$89m takeover
gold mine to Catalyst Metals Minerals gold mine to Aurelia Metals financing (Project by Ramelius Resources
Finance Loan & Royalty)
for Dargues Gold Mine
T +61 2 9133 9000 | www.icapartners.com.au
ABN: 55 158 181 241 AFSL: 470003
PAGE 14 DECEMBER 2022 - JANUARY 2023 AUSTRALIA’S PAYDIRT
2023
10 January Ministerial Roundtable
11-12 January Forum and Exhibition
Riyadh, Saudi Arabia, King Abdul Aziz International Center
ENABLING THE CREATION OF RESILIENT
AND RESPONSIBLE MINERALS AND
METALS VALUE CHAIN
6000+ 150+ 170+ 100+
Attendees Mining Corporates Global Industry Participating
and Organisations Speakers Countries
REASONS TO ATTEND THE FUTURE MINERALS FORUM 2023
Learn regional Engage with Explore emerging
and international mineral senior Government markets parterships and
development strategies officials from the region investment opportunities
Contribute
to conversations around Define the pillars
of future responsible
the creation of minerals mineral development
and metals value chain
Register Online
2023
BATTERY
MINERALS
21 - 22 March, Pan Pacific Perth
C C
Charging ahead with Australia’s critical minerals industry.harging ahead with Australia’s critical minerals industry.harging ahead with Australia’s critical minerals industry.
graphitephitephite cobalt
gra
gra
cobalt
cobalt
lithium
lithium
nickelelel
nick
nick lithium
copper
copper
copper
manganese
manganese vanadium
manganese
vanadium
vanadium
rare earthse earthse earths
rar
rar
Don’t miss out! Join us on 21-22 March!
SAVE THE DATE!
Australia’s only event dedicated to the development of the
critical minerals industry
Paydirt’s Battery Minerals Conference is the premier forum for miners and explorers
developing the essential ingredients driving the Industrial Revolution 4.0. The conference
provides a platform for presenters, sponsors and exhibitors to showcase their business to
investors and stakeholders; and gain exposure to key decision makers within the coveted
battery minerals space.
WHO SHOULD ATTEND?
Charging ahead with Australia’s critical minerals industry.harging ahead with Australia’s critical minerals industry.harging ahead with Australia’s critical minerals industry.
C C
Upstream:
Explorers, Developers, Miners, Consultants, Investors, Financiers, Brokers, Analysts,
Fund Managers, Mining Services and Suppliers
Midstream:
Engineering/Chemicals, Convertors, Energy Storage Providers, Traders, Governments, Regulators
Downstream:
Automakers, OEMs, Manufacturers, Metal Refiners, Researchers, Investors
Associated:
Government, Regulators, Media, Inspectors, Service Providers
WHY SPONSOR?
Establish new networks and secure viable prospects for investment from key stakeholders
Showcase your project and growth strategies on a global platform
Exchange ideas with mining project developers
Build relationships with potential joint venture partners
Create links to battery manufacturers and end users
Elevate your credentials in the battery minerals sector
Downstream and value-addition opportunities
Network with key resource buyers, procurement specialists and decision makers
Unrivalled media coverage
Sponsorship and exhibition opportunities now available!
Contact Paula Fujita on (+61) 8 9321 0355 or email
[email protected]
NEWS
In Unity, there is strength
estern Australia may be introducing toxic culture. Mines, Worksafe WA and the WA Police
Wnew policies to curb sexual harass- “It’s an industry I do genuinely love, so to better investigate allegations of harass-
ment and assault at mining camps across I do want to see it succeed, improve, and ment and assault.
the State, but Unity Co chairman Gordon do better,” he said. “The media recently Deputy Leader of the WA Liberal Party
Smith-Gander feels there is still more that surrounding mining camps and the FIFO Libby Mettam, who chaired the 178-page
can be done. lifestyle has been so negative. We’re trying industry report, argued the onus of pro-
The WA State Government is enact- to attract female workers back into mining tecting workers against “appalling behav-
ing 15 of 24 recommendations suggested and to make sure everybody’s comfort- iour” was both on hands of employers and
from a Parliamentary inquiry which de- able. the State Government.
tailed nearly 100 allegations of harass- “To do that, you need to understand the “This represents a failure of the indus-
ment and assault at mine sites and accom- true scale of the issue and we just feel a try to protect its workers and raises real
modation facilities. private organisation has the ability to do questions about why government was not
Smith-Gander’s hunger for more “ag- that quickly. I think it does take another better across this safety issue,” she said
gressive” change helped birth the start-up force to come in and say, ‘we’re willing to earlier this year.
of Unity Co. tackle this issue’. It’s a big issue that peo- “It is simply shocking this could be tak-
“The Government came out with their ple don’t want to talk about, but it needs ing place in the 21st century in one of the
response to the recommendations and to be spoken about to fix the issue now State’s most lucrative industries.”
they’re reasonable but they’re not aggres- because it has been persisting for such a WA Minister for Mines Bill Johnston,
sively addressing the issue,” he told Pay- long time. however, said ensuring a safe workplace
dirt. “We’ve recognised there are businesses was largely the duty of employers.
“That’s when we got together and said, that are much larger [than Unity Co] and “The real difference will come when
‘how can we, as individuals, create a they’ve got capabilities to provide these companies step up and meet their existing
company that addresses those issues?’, sort of services to their own company, but legal obligations,” Johnston told Paydirt
and we went through them one-by-one. they’re only focusing on their one com- earlier this year before the State Govern-
That’s how we got to where we are now.” pany; they’re not focusing on the industry ment tabled its official response to the re-
Unity Co launched in October and was more broadly. We’re working with the De- port.
set to begin servicing its clients in De- partment of Mines as to how we can work “There is also already a legal obligation
cember. The external platform helps cli- together to create a unified solution now.” on every employer in the mining industry
ents track, audit and manage reports of The “Enough is Enough” Parliamentary to not allow sexual harassment. There is
workplace sexual misconduct. Reports report offered government and industry already a legal obligation to provide a safe
are lodged anonymously by victims, who policy solutions such as harsher penalties workplace. This starts with culture and
can also lean on the support of a 24-hour for perpetrators and a sector-wide register management accepting their responsibili-
call centre. of employees found of wrongdoing. ties and we’d love to see the mining com-
Smith-Gander, whose prior experience The WA State Government turned down panies step up and fulfil their existing legal
with the sector includes constructing and the call for a register due to logistical is- obligations before we look at what we’re
setting up mine camps, believes busi- sues and concerns of data privacy but has going to do next.”
ness-government collaboration will be pledged to enact other policies, such as a Looking downfield, Smith-Gander is al-
key to cleaning up the sector’s reportedly collaboration between the Department of ready hoping to apply Unity Co’s data and
insights to prevent future crimes from tak-
ing place.
“Probably the most important part of
what we do is the reporting and insights;
determining when things occur and how
they occur to see trends,” he said. “We go
back to our customers at the end of each
month with the number of incidents we’ve
seen, where they happened and how they
happened, so you can target your training,
you can target supervision to where things
do occur and in the future you can hope-
fully prevent them from happening.”
At the time of print, names of potential
Unity Co clients could not be revealed,
but Smith-Gander said the company was
in talks with some of the industry’s larger
employers, including ASX300 mining com-
panies.
– Fraser Palamara
Unity Co chairman Gordon Smith-Gander with fellow board members Alex Atkins and
Tania Cecconi
PAGE 18 DECEMBER 2022 - JANUARY 2023 AUSTRALIA’S PAYDIRT
A Global Miner
poised for a new era of growth
Scale Future-facing Growth Exploration
One of the largest Producing copper, Pivoting to new long- Four world-
copper-focused a critical metal for life mines in Spain, class mineral
miners on the ASX a low-carbon future Botswana and USA provinces
Creating value through Opportunity sandfire.com.au
NEWS
Burgundy to reposition as luxury
goods company
ith the recent launch of its luxury brand gundy recovered its first diamond from the placing our product at the pinnacle of the
WMaizon Mazerea, Burgundy Diamond project as bulk sampling ramped up on the luxury pyramid,” Ravenscroft said.
Mines Ltd is taking ownership of its diamonds Blina ground, at Ellendale. The company achieved its first sales
from discovery to design as part of a wider ef- According to Ravenscroft, the com- through the Maizon Mazerea brand in
fort to transition into a luxury goods company. pany’s priority is on recovering larger dia- September via its partnership with Solid
The revised business strategy will see monds. Gold.
Burgundy utilise its Perth-based facility to “People have asked me how many dia- A large launch event in New York City
cut and polish diamonds. Managing director monds we are producing. And the answer was also held in early November with the
Peter Ravenscroft said most of the value in is not very many. That’s exactly what we Princess Grace Foundation.
diamond production did not come from the expected,” he said.
mining process. “It’s important to recognise what we are
“Figures show that more than 90% of the doing at this project and most of our other
margin in the diamond industry comes from projects, we are focused on recovering
cutting and polishing and jewellery sales,” only the large diamonds.
Ravenscroft said on a company-produced “So, at the Blina operations we have
webinar. a bottom cut-off size of 4mm, so 4mm
To ensure it can execute its strategy, Bur- means we are not going to be recovering
gundy needs a wide supply of rough dia- any stones less than about a carat.”
monds. The company plans to source these Ravenscroft said the company was also
via offtakes, purchases and its current pro- considering ways to create value from the
jects. other diamonds.
Burgundy’s portfolio includes the Ellen- “We all understand that in producing
dale project in Western Australia, Naujaat in fancy coloured diamonds, you are going The Maizon Mazerea brand aims to
Canada and the Botswana exploration alli- to be producing some non-fancy coloured target high-end customers to secure
ance. diamonds, some white diamonds. You will diamond sales
Ravenscroft did not rule out the possibility be producing some incidental smaller dia-
of further acquisitions. monds, they will have a value,” he said. “The Princess Grace Foundation gives
“We have identified the key thing we need “Our current strategy is we would sell us access to a very large network of po-
to be doing is finding sources of fancy col- them as rough through normal market tential clients, customers, and interested
oured diamonds,” he said. “They are not channels, but we will look at that as it parties,” Ravenscroft said.
everywhere on the planet. They are not in comes.” “They have their own luxury retail brand
every diamond deposit, but we are focussing Another key aspect of Burgundy’s strat- called Grace de Monaco and we are in dis-
on the ones where they are.” egy is to expand its cutting and polishing cussion with them on how we can form an
More recent activities have narrowed in capacity at its Perth facility. Ravenscroft alliance and provide fine and high jewel-
on the development of Ellendale, in which said the company could double its capac- lery into that sales platform.”
Burgundy is working to secure 100% of the ity by hiring more staff. To further accelerate its brand, Burgun-
project which historically produced 50% of Launched in July, the Maizon Mazerea dy is mapping out a strategy to execute
the world’s fancy yellow diamonds. brand has been carefully curated to target ESG measures.
Former owner Kimberley Diamonds sus- high-end customers to secure diamond “Our model is that we will take from the
pended operations in 2015 due to low recov- sales. retail sale of the diamond. We will take a
eries, size distributions and realised prices. “The idea of a brand has always been to percentage of that retail value and feed
During the September quarter, Bur- be able to access premium pricing through that all the way back, unadjusted, to local
community environmental projects,” Ra-
venscroft said.
He added the company was already in
discussions with the traditional landown-
ers around the Ellendale project.
“I’m very excited about this because not
only does it bring enormous value back to
the communities, its attractive to custom-
ers too, because when they are buying
the stone or the piece of jewellery, we are
telling about this ability to contribute back,
that’s something we all like to do,” he said.
– Yvette Ogilvie
Burgundy is eyeing near-term cash flow from the restart of the Ellendale diamond mine
PAGE 20 DECEMBER 2022 - JANUARY 2023 AUSTRALIA’S PAYDIRT
THIS YEAR - LEARNTHIS YEAR - LEARN
HOW TO AVOID THE MOTHER OFHOW TO AVOID THE MOTHER OF
ALL WORKPLACE HAZARDS:ALL WORKPLACE HAZARDS:
IGNORANCE.
IGNORANCE AND APATHY- BOTH SIGNIFICANT CAUSES OF INJURY
Enrolments in the previously scheduled Psychosocial Risk environments are safe from psychosocial hazards.
Management: Capability Enhancement training courses were In partnership with the Australian Institute of Health and Safety,
sold out. the FIFO Focus course is subsidised through the Mentally
Healthy Workplace grant from the Department of Mines,
The FIFO Focus course addresses the often hidden and less
Industry Regulation and Safety [DMIRS]
obvious workplace causes for psychological injury such as
trauma, anxiety, depression and sadly, even extreme cases of It aims to have attendees understand the issue, learn and
physical harm. identify what the hazards may be, analyse the risks, develop
strategies to mitigate, control, manage and measure their
Such has been the demand for training - a result of the new
impact. Plus, participants will gain an understanding of the
Work Health and Safety Act that came into force in WA during
legislative obligations.
March 2022 - new courses have been scheduled for March
and June 2023. This hands-on four-day course is spread over 3-4 months.
Participants attend the first two days, then practice conducting
To avoid missing out, we strongly urge you to secure hazards identification and risk assessments between attendance
your spots now.
on days 3 and 4,scheduled between six to seven
The Act elevates the psychological well-being of your weeks apart.
employees to the same level as their physical safety. It also To register, or to learn more, scan this QR code
places a legal obligation on employers to ensure that working or please visit fifofocus.com.au/grant
SP202233/c
6 - 8 Sept 2023
Perth, Western Australia
1. Scan 2. Register 3. Enjoy ADU23
Alternatively, to present, exhibit or attend as a delegate
please contact Angelique Julien directly
on (+61) 8 9321 0355 or [email protected]
EARLY BIRD
RATE $1,700
20 REASONS TO ATTEND ADU 2023
1 Biggest and best conference 11 Exclusive networking opportunities
outside Africa
12 Insights into breaking deals
2 THE premier Africa-Australia and investment prospects
business forum
13 Vibrant exhibition featuring
3 1500+ delegates from over the latest innovations
60 countries
14 Expert geopolitical and
4 20 years of success market analysis
5 Unrivalled access to African 15 Engaging panel sessions and
ministers discussions
6 Endorsement and participation 16 Cornerstone of Australia’s
by Australian federal and state “Africa Week”
governments
17 Satellite Events – research;
7 High profile speakers and infrastructure; education; training
attendees
18 High profile branding opportunities
8 Presentations that make you think
19 Comprehensive Australian and
9 Dedicated investor lounge with international media coverage
one-on-one matchmaking
20 ADU – a forum and
10 Access to key decision makers organisation you can trust
2023 SPONSORS AND SUPPORTERS TO DATE:
COVER
Not just another boom:ot just another boom:
N
O
Opportunities and risk in the pportunities and risk in the
energy transitionergy transition
en
t the beginning of the 21st century,
A the extractives sector appeared
an outdated industry with digital and
information technology set to be the
most crucial areas of economic growth
for the coming decades. However,
22 years into the century, something
remarkable has happened and the
sector, and mining in particular, finds
itself as an integral component in the
energy transition needed to save the
planet from climate catastrophe.
PAGE 24 DECEMBER 2022 - JANUARY 2023 AUSTRALIA’S PAYDIRT
here is overwhelming consensus that if The question now is at what cost the New Zealand Prime Minister Helen Clark
Tthe world is to achieve the decarbonisa- world will achieve the energy transition. said during a recent address in Sydney.
tion plans of the various climate change ac- Previous commodity booms have failed to “Around 80% of those projects are located
cords, vast amounts of critical minerals such strike a balance between the rush to secure on or near territories of indigenous and oth-
as lithium, copper, nickel, cobalt, graphite, supply with the rights of stakeholders in er land-connected peoples. Many mineral
manganese, vanadium and rare earths will host countries. Will the needs of global so- deposits are in areas of high water stress –
be needed. ciety see the developing world’s ambitions the ‘lithium triangle’ between Chile, Argen-
Governments across the globe are as- and prosperity sidelined for a quick solution tina and Bolivia is a good example of this.
sessing their current accessibility to these to the energy transition? And are govern- “Such environmental and social sen-
minerals and strategising what will be need- ments across the developing world ready to sitivities around mining are not new, but
ed to secure supply. The usual resources grasp such opportunity? pressure to approve new mines quickly
heavyweights of China, Australia and Can- According to a recent report commis- now could mean that insufficient time is
ada are already well advanced in their abil- sioned by the Extractive Industries Trans- allocated to consultations and impact as-
ity to provide these commodities but size of parency Initiative (EITI), many of the world’s sessments.
future demand is such that resource-rich transition minerals – its phrase for critical “It is estimated that between 30% and
nations from the developing world will have minerals – projects are impacted by en- 40% of forecast mineral production needed
a major part to play. vironmental, indigenous, water supply or for low-carbon technologies will originate
Africa is home to vast reserves of copper poor governance issues. from countries with weak governance. That
and has potential for lithium, graphite, rare “Half of the 700 active mining projects for suggests that status quo approaches to
earths and even nickel. South America is transition minerals in the 57 implementing corruption in those countries just won’t suf-
already the largest source of copper and is countries in the EITI overlap with conser- fice.”
now emerging as a major lithium producer. vation areas,” EITI board chair and former Africa’s prospectivity is undeniable
Governments, end-users and even investors
are increasingly demanding community
voices are heard in the development of
critical minerals projects
AUSTRALIA’S PAYDIRT DECEMBER 2022 - JANUARY 2023 PAGE 25
COVER
Africa is thought to be well-endowed with
critical minerals but little investment has
been made in large-scale assessment of the
geological potential
across an array of commodities but so too between critical minerals mining and others tensity has meant international companies
is the stalking presence of bribery and cor- because of decarbonisation and how they have generally failed to translate world-
ruption allegations, environmental steward- can benefit from this boom. class endowment into top-tier production,
ship gaps and human rights abuses. Will “It is not business-as-usual. There hasn’t iron ore being a classic example.
critical minerals development on the conti- been a lot of investment in exploration in In critical minerals, the situation may be
nent follow a similar path? total for the last 20 years and even less to different. While iron ore, coal and other bulk
Zambia and the DRC are already Top really map the continent and say what we commodities require capital investment
5 global copper producers but the conti- know about Africa’s critical minerals en- totalling billions of dollars, lithium, nickel,
nent is also emerging as a possible world dowment. There is an element of operat- graphite and rare earths projects can be
leader in lithium, graphite and rare earths ing in the dark. Countries need to take the built for less than $US500 million in most
reserves. necessary steps, invest in exploration and cases.
Exactly how well-endowed Africa is in develop policies to encourage investment However, while Australian companies
critical minerals is yet to be fully assessed in that space.” are leading the exploration drive, pathways
with governments slow to recognise the ASX-listed companies are at the forefront to production and end-markets remain em-
need to develop a specific interest in the of the critical minerals exploration push. Of bedded in the global supply chains of one
space. the 35 companies which presented at this country, China.
Botswana-based natural resources poli- year’s Africa Down Under, 15 are working In 2019, China accounted for 50-70% of
cy consultant Sheila Khama has witnessed on critical minerals projects. global refined cobalt and lithium production,
the sluggish response first-hand. A former In lithium, AVZ Minerals Ltd, Leo Lithium 50% of copper smelter production, 90% of
De Beers and African Natural Resources Ltd and Atlantic Lithium Ltd are taking pro- rare earths production and 35% of refined
Centre director, Khama advises both gov- jects widely acknowledged to be “world- nickel production. This dominance has
ernments and the private sector in Africa on class” towards production. In graphite, emerged as a key concern for other major
governance and sustainability strategies. Tanzania and Mozambique have emerged economies who are now looking to break
She believes there must be greater under- as likely Top 10 global producers, while their reliance on Chinese downstream pro-
standing of the critical minerals thematic companies such as Peak Rare Earths Ltd duction. The likes of the US, EU, Japan,
among African leaders. and Ionic Rare Earths Ltd are developing Korea and the UK have developed critical
“There is a general awareness about Africa’s first ever rare earths projects. minerals strategies and are looking at Af-
the critical minerals trend but you don’t get It is not the first time the continent has rica as a potential source but, according to
very far being general, and governments attracted wide-scale investment during a Khama, they could already be too late.
come up short on specifics,” Khama told specific minerals boom but apart from in “There is no concern among African
Paydirt. “Because they don’t have policies gold, copper and PGMs, the impediment of leaders about a scramble because there
and strategies saying what the difference is poor infrastructure and massive capital in- is recognition that it is already happening
PAGE 26 DECEMBER 2022 - JANUARY 2023 AUSTRALIA’S PAYDIRT
“ There is an element of operating
in the dark. Countries need to
take the necessary steps, invest in
exploration and develop policies to
encourage investment in that space.
Sheila Khama
COVER
and China is leading the charge,” she said. Robinson said such an approach would Clark said. “The EITI has set out best prac-
“China has taken the lion’s share of the counter the long-held concerns about the tices in relation to transparency and good
supply chain, whether that is cobalt out of transparency of mining deals, particularly governance. The World Bank Group’s IFC
the DRC, lithium out of Zimbabwe or oth- in Africa. Environmental and Social Performance
ers. The US and EU are tinkering on the “It has not always been the case and Standards and the ICMM [International
edge, not knowing quite what to do about there is a lot of public distrust about the sec- Council for Mining and Metals] Mining Prin-
operating in places like DRC. tor, particularly in Africa,” he said. “There is ciples are important and we want to see
“It is not yet clear exactly who the win- a lot of community concern about big min- financial institutions require the companies
ners and losers will be but China is well ing projects on their doorstep where they they invest in to uphold these standards.
ahead of the pack.” don’t always see returns, they just get the “Governments of minerals-importing
For Khama, African governments are downside of environmental concerns. countries must also act to uphold good
missing a chance to assert their own strat- “We’re in a period now where investors governance. Trade agreements related to
egy in the critical minerals space. are falling over themselves to get access the minerals sector should include strong
“When it comes to issues of international to opportunities. So, the issues are more ESG safeguards.”
trade and geopolitics, Africa is traditionally about are countries getting the right deal? Focus on importing countries highlights
very reactive rather than proactive,” she Are the contract terms favourable? Our the other major element of critical minerals
said. “But, when that happens we lack co- work on putting contracts into the public development; the opportunity for down-
herence, because your response has ele- domain is a vital piece of transparency to stream value-addition.
ments of what the EU, US and China are ensure citizens and media can scrutinise Various resource-rich African countries
doing. that.” have pursued value-add strategies across
“Africa tends to hover in the aspirational Greater transparency may also smooth diamonds, steel, copper and other miner-
space rather than the practical. In contrast, out the dramatic swings many African als for decades with little success. How-
the US has said: ‘We want to decarbon- countries experience between economic ever, just as in raw material extraction, the
ise so we will differentiate critical minerals liberalism and resource nationalism. impediments in several critical minerals are
produced in the US and tax them favour- “Resource nationalism is still present in lower than for more traditional metals.
ably” and has gone about funding it. That’s many countries but now in a more benign “With storage batteries, EVs, etc. there
practical. We don’t have the equivalent in sense, as in: ‘We want the greatest benefit is an opportunity as there is a modicum of
Africa.” for our people from these resources’,” Rob- a level playing field because you are not
A lack of coherent policies around critical inson said. “EITI seeks to create an institu- dealing with established production cen-
minerals demand could be amplified as the tional environment which is a level playing tres,” Khama said.
rush to secure critical mineral supply inten- field for investment, where investors feel “If an African country wants to begin pro-
sifies in the current decade. comfortable about making long-term in- cessing steel, it is pushing uphill because
“Pressure to approve new mines quickly vestments and ultimately supporting coun- it would mean having to wrestle market
now could mean that insufficient time is tries that want to attract that investment. share away from other jurisdictions who
allocated to consultations and impact as- Transparency assists that process.” have already built their industries. How-
sessments,” Clark said. “In many countries The Mission Critical Report also had rec- ever, in the battery/critical mineral space,
we are already seeing a move towards ommendations for miners and importing nobody yet occupies pride of place, so
streamlined or fast-tracked approval pro- countries. there is potential advantage for the first
cesses. While the motivation for this may “We need to see strong commitments movers who make a fast entry. The barri-
often be legitimate, there is a risk of harm to [from miners] to international standards,” ers are also a little lower. You still have the
communities and the environment if there
are not sufficient safeguards.”
The answer, according to EITI, is greater
transparency in mining industry govern-
ance from host countries, mining compa-
nies and end-users countries.
“Governments need to put in place
strong legal and institutional frameworks,
and ensure that these are effectively imple-
mented,” Clark said.
EITI executive director Mark Robinson
told Paydirt the recent report recommend-
ed greater transparency, accountability
and multi-stakeholder dialogue as crucial
to ensuring host countries and communi-
ties maximised the opportunities in the
emerging critical minerals space.
“The issues are around getting the right
deal,” Robinson said. “That means contract
terms that are fair for the host government
and community and putting the terms of
those contracts into the public domain so African governments are beginning to recognise the potential for critical minerals
communities know the details.” developments. Here, Malian Minister of Mines, Energy and Water Lamine Seydou Traore
(centre) visits Leo Lithium’s Goulamina lithium project in the West African country
PAGE 28 DECEMBER 2022 - JANUARY 2023 AUSTRALIA’S PAYDIRT
The EITI’s recent Mission Critical report identified several global (left) and transnational (right) governance risks across the energy transition
and the transition mineral value chain
hurdles of skills competency, price com- the conditions for small scale miners as it are just coming onstream in oil and gas
petitiveness, infrastructure and proximity is in their interest to ensure sourcing is re- such as Uganda, Ghana and Senegal,” he
to market to consider but you don’t have to sponsible because they know the spotlight said. “They see it as an important medium-
unseat established competition, apart from is on them. And traders also have a big role term revenue stream and fiercely guard the
China. But China downstream production to play by making sure value chains are ro- right to produce fossil fuels. We are saying
is established for China and the rest of the bust and transparent and at every point of to them that given the current investment
world is relatively open.” those value chains there is sunlight put on trends they can’t assume hydrocarbons that
Robinson agreed, pointing to the Mission the value of the sale, the prices given and are going to be a long-term, viable source of
Critical report’s recommendation that value- the amount transported to the ultimate des- revenues. So, use the investment to estab-
addition could help eliminate some of the tination. lish long-term green strategies to diversify
price swings which have affected African “We must ensure the whole debate on the economy.
mining economies in the past. critical minerals is around whether sourcing “We have been supporting this in the oil
“There is a very strong voice at the mo- is a responsible one, that at the point of pro- and gas sector with some long-term fiscal
ment among African leaders on value ad- duction the communities and workers see analysis so policy-makers can get a handle
dition and I think they are absolutely right, the full benefit. on what the actual revenues are going to be
however, the rhetoric is not met by reality “African policymakers are also going to given the likelihood of falling demand over
because most critical minerals are still be- have to be sensitive to those environmental the next 10 years or more.”
ing traded in their original form,” he said. and social impact issues.” The “just energy transition” debate high-
“But surely the opportunity for value-add is Carbon emissions will be under even lights the complexity of sourcing the miner-
huge. Should there not be investment in bat- greater scrutiny than human rights in the als needed while ensuring host countries
tery manufacturing in those countries which critical minerals chain but as the western and communities can maximise the benefit
have many of the resources? world enacts policies aimed at fossil fuel of the revolution.
“Those producing countries are very vul- reduction, what burden is being placed on For Clark, the associated risk hangs over
nerable to big swings in commodity prices African countries only just beginning to re- the entire world, not just resource-rich coun-
and value-addition would help smooth out alise their hydrocarbon wealth? It has led to tries in Africa or Latin America.
those swings. However, the time lag be- a global debate about a “just energy transi- “The implications of these trends matter
tween recognition and investment in plants tion” not only for resource-rich countries, but also
is a long one, but at least there is recognition “It is a simple-to-understand concept globally,” she said. “Weak mineral sector
of the opportunity.” but the truth is there is already no justice,” governance can harm downstream busi-
Those countries considering their appli- Khama said. “For more than 100 years the nesses and undermine the roll out of low-
cation into the global critical minerals supply global north spewed carbon dioxide into the carbon technologies at the pace and scale
chain must also appreciate the barriers to atmosphere before it realised it was no good needed to meet global decarbonisation ob-
entry. The US and particularly the EU have for the planet and put the brakes on. For the jectives.
launched stringent policies around battery sake of justice, do we, Africa, want to do what “The challenge therefore is to secure reli-
materials, including the EU battery pass- the north did? The sensible answer is no, so able mineral supplies for the energy transi-
port, an electronic identifier which will be re- the only way to have justice is to destroy the tion, and to do so in a sustainable manner.
quired for every battery, allowing traceability environment, that is why it is a fallacy. The means of minerals production and trade
of a battery and its materials and their social “The global north has all the advantages need to be consistent with the ends to which
and environmental impact. to be ahead of the pack, so the only way to they are used: they must benefit people and
Will such initiatives accelerate or pull the procure justice, is for the global south to say: the planet.
brakes on critical mineral development in ‘the buck stops here. We will not render our “The shift to net-zero has the potential
Africa? Robinson believes the former, if gov- hydrocarbons redundant. We will exploit our to provide significant benefits at the local,
ernments, industry and civil society get the coal and oil and gas and develop a plan on national and global levels. Yet, there is also
settings right. how to transition and will trade our critical a real risk of missing the opportunity to en-
“A sizeable proportion of production of minerals on those terms alone.’” sure that the mining sector contributes fully
these critical minerals comes from artisanal Robinson made a similar point, saying EITI to sustainable development and to the fight
sources – although not as much as is often was helping African governments plot their against climate change.”
assumed – and a lot of western focus has way through the energy transition using rev- – Dominic Piper
been on those labour conditions,” he said. enues from newly opened oil and gas fields.
“Some companies are doing a lot to improve “There are several African countries that
AUSTRALIA’S PAYDIRT DECEMBER 2022 - JANUARY 2023 PAGE 29
INDABA PREVIEW
Security and supply to dominate
Indaba agenda
Three Presidents and a PM: (from left) DRC Prime Minister Jean-Michel Sama
Lukonde joined Presidents Hakainde Hichilema (Zambia), Cyril Ramaphosa
(South Africa) and Mokgweetsi E.K. Masisi (Botswana) at the 2022 Mining Indaba
hen the resources world returns to Cape Town for the first full Investing
W in Africa Mining Indaba in three years this February, it will be to discuss
and debate a very different landscape from 2020.
n those pre-COVID days, the conversations can – never far from the centre of the confer- transitions, as well as the raw materials and
Iaround the halls of the Cape Town Interna- ence agenda – is set to rise in importance precious metals to bolster their economic
tional Convention Centre and the restaurants as the world’s largest economies assess the power.”
and bars of Camp’s Bay revolved around role Africa can play in the energy transition. So, where can we expect the debate to
financing. With the traditional resources mar- “We are entering a new chapter in both head? Paydirt picks five likely talking points
kets of Canada, UK and Australia having lost pan-African and global economies,” Simon for Mining Indaba 2023.
interest or faith in projects on the continent, Ford, portfolio director for Mining Indaba,
African-focused companies were searching said in November. “Therefore, the theme for Critical minerals and the
for alternatives, whether through M&A, pri- 2023’s Mining Indaba is ‘Unlocking African energy transition
vate equity or alternative debt facilities such Mining Investment: Stability, Security, and
as streaming and royalties. Supply’. This captures the very real geopo- There is little doubt that Mining Indaba, just
Ironically, perhaps given the erratic state litical shifts and economic disruptions we are like Africa Down Under in August-Septem-
of international capital markets and com- experiencing, and which are providing pres- ber, will focus heavily on critical minerals and
modity prices, financing is unlikely to be the sure points – and opportunities – within Afri- the energy transition. Commodity markets
main talking point at the 2023 Mining Indaba. can mining as global economies seek secu- have been buffeted about in 2022 but the
Instead, the geopolitical dimension of Afri- rity of supply, especially for their own energy battery and critical minerals, and lithium in
PAGE 30 DECEMBER 2022 - JANUARY 2023 AUSTRALIA’S PAYDIRT
South African President Cyril Ramaphosa
during the 2022 Mining Indaba
particular, have continued to climb in value are questions that miners, investors, gov-
as the world races to fulfil their decarbonisa- ernments and communities are asking each
tion ambitions. other constantly.
The US, EU, Canada, UK, Korea and Japan
have all declared their critical mineral poli- International governments
cies but are quickly realising their domestic Mining Indaba has always attracted delega-
mining industries are in no position to fill their
supply chains with the necessary volumes of tions from non-African governments but the
raw materials. 2023 is set to be the most geopolitical yet,
Instead, they are looking for partners and thanks to critical minerals. At the 2022 fo-
African countries – with an abundance of rum, the traditional Australian pavilion was
reserves of key metals and minerals – are replaced by a major new stand hosted by
a prime target. Saudi Arabia. Eager to find its niche in a
How African governments and their citizens world which doesn’t rely on oil, the Saudi
participate in this scramble will be the major Government is aggressively promoting its
discussion point at the 2023 Mining Indaba. hard rock mining credentials at conferences
Too often in the past, Africans have missed across the world.
out on the benefits of commodity booms, Its mission appears to be threefold; attract
receiving little more than short-term ben- investors to partner with state-owned com-
efits and long-term environmental and social panies such as Ma’aden on hard rock explo-
problems from their prospectivity. ration and development projects inside its 2022 Mining Indaba. Conversation in the
Discussions at the conference will revolve borders; find partners to build out its down- forum became fractured at times, as young
around how stakeholders can work to create stream battery minerals ambitions, and; South Africans expressed their frustration at
more lasting, sustained value from the con- build relationships to secure the raw materi- being sidelined by the mining industry.
tinent’s reserves of these crucial metals so als needed to feed its downstream plans. It is no longer enough to promise host com-
that they deliver for Africans as well as the Elsewhere, expect sizeable delegations munities a few low-level jobs. Across the
developed world. from the US, Canada, EU and UK as they continent, well-educated young profes-
turn their attention to Africa’s critical minerals sionals and entrepreneurs are demanding
Security sector. Australians will also be back in force deeper, more sustainable opportunities
across Cape Town. The ASX has raised which allow them to grow careers and busi-
Ongoing security concerns in West Africa more capital for African projects – particu- nesses which last well beyond the life of a
and the international instability caused by larly at the junior end – than any other ex- single mine.
Russia’s invasion of the Ukraine will be key change in the past five years. The Aussie
talking points. presence was smaller at the 2022 edition as Return of the travellers
The mining industry in Mali and Burkina much of the country was still emerging from
Faso have continued relatively uninterrupted lockdown. Amid all the mining talk, there will be plenty
by the deteriorating conditions in both coun- However, with borders now fully open and of old acquaintances sharing their personal
tries but the situation presents several de- ASX-listed miners and explorers on the con- stories from the two years of the global pan-
bates about how foreign investment affects tinent outperforming their domestic peers, demic. When last the resources community
security in troubled states. there will undoubtedly be a strong green- was all together in Cape Town, in February
Can a vibrant mining sector lessen the influ- and-gold presence. 2020, COVID-19 was little more than a mur-
ence of extremist groups, bringing prosperity mur, a worrying but confusing development
and wealth to those at risk? And how should Local content in China. Just weeks later, its spread saw the
international miners approach working in world plunged into an unprecedented lock-
high-risk settings? It is an issue which has continued to rise in down.
There appear no simple answers but they prominence at the conference and across After a rather muted 2022 edition, it is likely
the entire African min- international travellers will arrive back to the
ing industry; how do conference in big numbers for 2023.
Table Mountain looms over Cape Town. Still in recovery from the governments and for- Cape Town will also be glad of the cash in-
pandemic, the Mother City will be welcome of the eign investors ensure jection Mining Indaba brings. Like many oth-
economic injection Mining Indaba provides citizens are receiving er tourism-reliant places, this beautiful spot
the best employment on the edge of the African continent took an
and enterprise oppor- economic pounding during COVID.
tunities from mining It was still in recovery mode in May when
development in their Paydirt visited for the delayed 2022 confer-
communities? ence but it is hoped the Mother City is get-
The tension was illus- ting back to her old self by the time 2023 rolls
trated by the Young around.
Leaders Forum at the
AUSTRALIA’S PAYDIRT DECEMBER 2022 - JANUARY 2023 PAGE 31
INDABA PREVIEW
Debt-free Tietto passes construction
test with flying colours
ietto Minerals Ltd has defied global infla- For Wilcox, this is his fourth major con- going to be a faster, smoother process ulti-
Ttionary pressures and supply chain disrup- struction project in West Africa in the past mately, whereas if you have a lot of people
tions to complete construction of West Africa’s decade. And while the Abujar build may involved in every single decision, it’s going
newest gold mine on time and on budget. have appeared seamless to those follow- to take more time,” Wilcox said.
Barring an unexpected setback with the fin- ing the progress, he insists it has been any- “There’s a saying: ‘Time, cost, quality;
ish line in sight, Tietto will pour first gold from thing but. pick any two’, but that’s just a complete fal-
its Abujar project in December, having com- “It’s definitely been a challenge with sup- lacy in my opinion, at least for an African
pleted the build within 12 months of breaking pliers meeting their deadlines,” Wilcox said. gold project. Your time and your money are
ground in Cote d’Ivoire. “We were kind of prepared for the ex- definitely related because the faster you
As this edition of Paydirt went to print, tended shipping times whereas I think it do it, the cheaper it’s going to be. And your
Tietto confirmed contract mining was now caught a lot of suppliers very much short, quality is always going to be a function of
officially under way and the SAG mill was but we’ve got past that now. how well you manage the project and your
“mechanically complete”. The Abujar camp is “This is probably one of the only jobs I’ve contractors.
also more than 90% constructed. had where we haven’t run out of laydown “We certainly had a very good design
Tietto executive director Mark Strizek said space. As things were arriving on site, they team in Primero, they certainly supported
the company was “over the moon” with the essentially went up straight away.” us right through the construction and I’d be
performance of the Abujar build team, led Crushing activities at Abujar were ex- happy to use them again.”
by chief operations officer Matt Wilcox, who pected to begin at the time of print, while The next challenge for Tietto is to seam-
previously oversaw the construction of the the CIL tanks were already “functionally lessly transition from developer to producer
Sanbrado gold mine in Burkina Faso for West complete” with piping and electrical installa- and attempt to emulate the success of fel-
African Resources Ltd (WAF). tion being finalised. The water storage dam low ASX-listed West African juniors in WAF
“This must be close to one of the quickest is also closed and capturing water, with the and Perseus Mining Ltd.
builds that I’ve ever heard of,” Strizek said. tailings dam reportedly 60% lined. According to Tietto’s updated DFS, Abu-
“From a board perspective and even from Perth-based Primero Group Ltd was re- jar will produce 1.2 moz gold over the first
a shareholder perspective looking in from the sponsible for the engineering and design of six years, including 260,000oz at $US651/
outside, it has been totally seamless. We’re the 4.5 mtpa processing plant. oz AISC in the first year of operation.
just so incredibly appreciative of the efforts Wilcox praised the key decisionmak- Strizek remains confident the company
from Matt and his team. ers within each of the Tietto and Prim- will continue to meet expectations once that
“I’m really looking forward to seeing that ero camps for not procrastinating over any first gold bar is poured.
first gold bar, it’s going to be an incredibly mo- time-sensitive matters. “I’ve really been blown away with the
mentous occasion.” “If you can make decisions quickly, it’s technical capability we’ve been able to re-
cruit for this project,” Strizek said.
“West Africans are certainly doing it for
themselves and I’m really excited about
what next year is going to bring in terms
of repeating the success the construction
team has been able to put in place.
“I think the other important thing to note
is we’ve got scalability. We’ve got so much
acreage and ground to still go after and
drill. We’ve got AG Core, but we still don’t
know if there could be another one out
there, so we’re going to go and drill it and
find it.”
Unlike most of its predecessors, Tietto
will achieve producer status without hav-
ing taken on any debt. For that reason,
Strizek is particularly excited about the
value the first few years of production will
deliver for shareholders.
Based on the $US1,407/oz gold price
assumed in the DFS, the estimated to-
tal free cash flow is $US841 million (or
$US636 million post-tax). At a $US1,700/
oz gold price, forecast free cash flow in-
creases to $US1.285 billion (or $US968
Tietto is set to pour first gold from Abujar in December
PAGE 32 DECEMBER 2022 - JANUARY 2023 AUSTRALIA’S PAYDIRT
be able to do that, and the right teams as
well. We’ll have an exploration team and
a production team working independently,
obviously there’s cross-fertilisation of ide-
as and so forth, but one won’t take away
from the other. They can both happen con-
currently.”
At the time of print, Tietto was trading
at an all-time high of 83.5c, having added
almost 280% to its market value since the
start of July. Importantly, it strengthens the
company’s position as a potential takeover
target.
“It’s a bit of a cliche, but obviously the
best defence is a high share price,” Strizek
said.
“We know we have an extremely valu-
able asset and I’m sure so do many others.
“Given we’re a publicly listed company,
The CIL tanks are now “functionally complete”, while construction of other modules is if someone really takes a shine to us they
approaching the finish line can always have a crack, but we’ll just be
working away trying to increase our value
million post-tax). mining and production, at least during the through expanding gold production and
“The cream years are always those first first few months of operations starting at growing our resource base.”
years but mostly those monies go to pay- Abujar. However, Strizek reiterated man- As for whether Tietto could follow in
ing off your debt providers,” Strizek said. aging director Caigen Wang’s long-stated the footsteps of WAF and Perseus and
“What really sets Tietto apart is all of the promise to remain as aggressive as ever become another West African predator,
hard work that’s been done by sharehold- with the drill bit and continue finding more Strizek said the company would be “fool-
ers to support us to get to this stage. We’re
set up for a pretty incredible year [in 2023],
with the potential for some form of capi-
tal return. The board is still thinking about
what that’s going to look like, particularly
as we’re only just starting to see the plant
winding up, but you can’t overlook the fact
we’re in such an incredible position for a
first gold mine.”
No debt obligations is also why Strizek
believes Tietto will easily overcome the
malaise currently circulating the gold sec-
tor. The past 12 months have not been kind
to many producers, but neither Strizek nor
Wilcox are the least bit concerned about
switching the lights on at a time when in-
vestors appear to have lost their appetite
for gold.
“When you look at the amount of ounc-
es we can deliver at the current price, and
even below the current spot price, this
project generates incredible returns, so
it’s not something shareholders should be The Abujar accommodation camp was more than 90% complete at the time of print
worried about,” Strizek said.
Wilcox added: “Gold is still around ounces to replace the existing 3.45 moz ish” not to consider its options.
$US1,700/oz and we’re making money resource. “We obviously still have an incredible
even when it’s down near $US1,150/oz. “It’s a non-renewable resource and, for opportunity to continue to grow Abujar, but
If you can’t make money at $US1,700/oz, all companies, as soon as you start turning Matt and his build team, and our explora-
then you shouldn’t be in the game.” that mill and producing so many ounces, tion team, are capable of growing as well,”
While exploration has been the core of you need to get your skates on and contin- he said. “So, if there’s an opportunity to
its business for more than a decade, Tietto ue to add to your resource base and grow drill and build elsewhere, we will certainly
could be forgiven for putting the drill rigs to it to keep ahead of the curve,” he said. look at it, we would be foolish not to.”
one side and focusing on the transition to “We think we’ve got the right ground to
– Michael Washbourne
AUSTRALIA’S PAYDIRT DECEMBER 2022 - JANUARY 2023 PAGE 33
Visit us at Booth J26, Mining Indaba, February 4-7, 2023
alsglobal.com
Leading Provider of Analytical Mine Site Laboratory
Services
Geochemistry Services Partnering with ALS on a mine site laboratory • No matter how remote,
project provides peace of mind that interconnectivity with
design, commissioning and daily laboratory ALS’s global LIMS network
operations will be completed to the high provides unparalleled quality
standards characteristic of ALS. and oversight.
Egypt
Marsa Alam
Core Services
Mali Sudan
Bamako Working in challenging and remote locations • Core Logistics and
Atbara with little logistical support, you still need to Archive Management
Burkina Faso collect and interpret data that is meaningful
Ouagadougou and valuable. We offer a full spectrum of no- • Core Logging
Ethiopia hassle Core Services that may be bundled in • Core Photography and
Senegal Ghana any combination and offered at any of our In-Situ Analysis
Kedougou Kumasi Addis Ababa labs or on-site at your project as needed. • Core Cutting
Côte d'Ivoire
Yamoussoukro
Super Trace • Super Trace Four Acid
ME-MS61L™
Detection Limits • Super Trace Aqua Regia
Zambia ALS’s industry leading ICP-MS technologies ME-MS41L™/ME-MS41W™
Ndola deliver lowest detection limits for multi- Aqua Regia available in both
element analysis. standard and weak acid strength.
• Super Trace level Lithium and
Namibia Rare Earth Exploration
Okahandja ME-MS89L™
South Africa
Johannesburg
Digital Solutions to • ALS QCPro™
Monitor your QAQC program
Simplify Your Life from within Webtrieve™ while
preserving anonymity from the lab.
• Webtrieve™ API
Bridge Webtrieve™ and your data
repository with a customised API
for routine data transfer.
[email protected] • +27 11 608 0555 ext 1067
Visit us at Booth J26, Mining Indaba, February 4-7, 2023
alsglobal.com
Leading Provider of Analytical Mine Site Laboratory
Services
Geochemistry Services Partnering with ALS on a mine site laboratory • No matter how remote,
project provides peace of mind that interconnectivity with
design, commissioning and daily laboratory ALS’s global LIMS network
operations will be completed to the high provides unparalleled quality
standards characteristic of ALS. and oversight.
Egypt
Marsa Alam
Core Services
Mali Sudan
Bamako Working in challenging and remote locations • Core Logistics and
Atbara with little logistical support, you still need to Archive Management
Burkina Faso collect and interpret data that is meaningful
Ouagadougou and valuable. We offer a full spectrum of no- • Core Logging
Ethiopia hassle Core Services that may be bundled in • Core Photography and
Senegal Ghana any combination and offered at any of our In-Situ Analysis
Kedougou Kumasi Addis Ababa labs or on-site at your project as needed. • Core Cutting
Côte d'Ivoire
Yamoussoukro
Super Trace • Super Trace Four Acid
ME-MS61L™
Detection Limits • Super Trace Aqua Regia
Zambia ALS’s industry leading ICP-MS technologies ME-MS41L™/ME-MS41W™
Ndola deliver lowest detection limits for multi- Aqua Regia available in both
element analysis. standard and weak acid strength.
• Super Trace level Lithium and
Namibia Rare Earth Exploration
Okahandja ME-MS89L™
South Africa
Johannesburg
Digital Solutions to • ALS QCPro™
Monitor your QAQC program
Simplify Your Life from within Webtrieve™ while
preserving anonymity from the lab.
• Webtrieve™ API
Bridge Webtrieve™ and your data
repository with a customised API
for routine data transfer.
[email protected] • +27 11 608 0555 ext 1067
INDABA PREVIEW
Perseverance pays erseverance pays
P
off at Perseusff at Perseus
o
onfidence around Perseus Mining achieved,” he said. “The task is to keep mining,” Quartermaine said. “But your team
CLtd is so strong the company may working on the efficiency of the business becomes adept at recognising things.”
even have shrugged off the “African dis- and take opportunities where they exist.” Yaoure has been an instant success since
count” long applied to Australian miners The September performance was in large production started at the end of 2019. The
on the continent. part driven by improvements at the Edikan one question mark over the project was the
Perseus has massively outperformed its mine in Ghana where production was up anticipated drop in production after the first
domestic peers on the ASX in the last three 82% on the June period to 52,127oz gold. five years but even that has been addressed
years, posting a cumulative return of more Edikan – Perseus’ foundational asset – has by the recent announcement of a maiden re-
than 100% over that period while Australian- always been a difficult beast to tame but serve of 3.7mt @ 4.48 g/t for 537,000oz gold
focused rivals saw their value retreat. when speaking to Paydirt following the re- for the underground component of the CMA
Managing director Jeff Quartermaine is sults, Quartermaine sounded as confident deposit. A related PFS anticipated the CMA
glad to see the market ascribe a more level as ever in the outlook for the operation, with underground delivering 720,000 tpa from the
playing field to the company’s portfolio of mining rates increasing nearly 20% and mill- fifth year of operations, allowing Perseus to
West African assets, but believes it is as ing rates up 40%. maintain the current production profile which
much about Perseus’ operational capability “Edikan is back on track and should be was set to tail off as open pit mining switched
as it is perceptions of jurisdictional risk. fine from here,” he said. “In the early days, from CMA to the lower-grade Yaoure pit.
“Right around the gold world, companies I used to go off my tree about run time and “We will be able to blend that underground
are experiencing difficulties in the market the fact we had to be resigned to not doing material with the lower-grade Yaoure pit
so we don’t think we are anywhere close better than 85%. Now, we are consistently at and keep the production profile consistent,”
to earning a premium,” Quartermaine ex- 95-99% run time. We have gradually lifted Quartermaine said. “It is something of a bo-
plained. “But the fact is we keep generating standards across the board. Every day is nus, because when we went there, we didn’t
a lot of free cash flow and are keeping cash a challenge but the team on the ground is really know about the underground opportu-
costs under control. We laid out a plan five quite adept at addressing the challenges.” nity.”
years ago and since then we’ve delivered on The operational excellence extends into Exploration success has also been
everything we set out to investors.” Cote d’Ivoire where the Yaoure and Siss- achieved in Ghana with Perseus completing
Delivery was apparent in Perseus’ Sep- ingue mines also met expectations. a positive feasibility study of the Nkosuo pro-
tember quarterly report, which showed its Gold production at Yaoure was down ject, 7km north-west of Edikan.
ability to keep a lid on costs while increasing nearly 10,000oz to 71,469oz for the Sep- Quartermaine said the development of
production. tember quarter but AISC stayed stable at Nkosou – 14.5mt @ 0.91 g/t for 422,000oz
The period saw Perseus post record $US658/oz ($US641/oz in June). Sissingue gold in indicated resource – pointed to a
quarterly production of 137,460oz at AISC increased output to 13,864oz (12,509oz in fresh approach to gold exploration in Ghana.
of $US879/oz. Quartermaine said while the June) with AISC reduced to $US1,336oz “The assumption was that the area was
12% reduction in costs could be directly at- (from $US1,398/oz). barren but in the last 10 years artisanal min-
tributed to the production increase, it was still Despite the success, the company re- ers have been mining alluvials there, so
a notable achievement given the inflationary mains on alert to the challenges all three we picked up options on three blocks,” he
pressures gripping the world. operations could throw up. explained. “We have flown geophysics and
“Maintaining our cost base is an achieve- “Anyone who thinks their operation will run done mapping, etc and defined a series of
ment, given it is a lot more than others have 100% all the time has never been involved in structures and our geologists noted blocks
PAGE 36 DECEMBER 2022 - JANUARY 2023 AUSTRALIA’S PAYDIRT
of granite similar to what democratic elections will be
we see at Edikan. Don’t held in 2024.
be surprised if we repli- “The country is pressing
cate the 2 moz gold we ahead with democratisation,”
already have at Edikan.” he said. “My instincts are that
If Edikan and Yaoure the appointment of a civilian
represent immedi- government will occur sooner
ate evidence for value than later and when that hap-
uplift, Quartermaine pens western institutions that
believes the market is were there in 2019 will come
also slowly awakening back. I don’t think it is a pariah
to the possibilities of state at all.”
the company’s newest For Perseus, the risks of
acquisition. entering Sudan are far out-
In February, Perseus weighed by the potential re-
acquired Orca Gold in a ward.
$C215 million deal that “We have had several differ-
delivered it the 2.9 moz ent responses on the Sudan
gold Block 14 deposit deal,” Quartermaine said. “The
and a controlling explo- technical people say it is the
ration footprint in Su- best investment they’ve seen
dan, widely regarded because of the quality of the
as the most underex- ground while other investors
plored world-class gold are considered about the risk
province in Africa. profile. But if you look at the
The country is al- risk return, we are committing
ready a prolific gold 9.5% of Perseus to double our
producer thanks to a thriving informal min- reserve base and add a 13-year mine life government clearance for the first few
ing sector but has never been subject to and have first mover advantage in one of lists of equipment imports for the explora-
modern, large-scale mining or exploration the most richly endowed provinces in the tion programme and we are progressively
with its history of conflict warding off west- world.” making sure the agreement we have in
ern companies. Having only begun mobilisation in re- place works in practice.”
Prime Minister Abdallah Hamdouk was cent months, Perseus has been surprised Perseus should benefit from Sudan’s
deposed by the military for a second time by what it has found on the ground. eagerness to re-engage on the interna-
in November 2021 but Quartermaine be- “The capacity in-country for infrastruc- tional stage. Quartermaine said the com-
lieves the Sudanese Government is on ture, manufacturing and goods and ser- pany was receiving cooperation at all lev-
track to open up democratically and eco- vices is a lot better than we anticipated,” els of government.
nomically. Sudan’s leaders have stated Quartermaine said. “We have received “We have good discussions about be-
coming a signatory to the EITI and I think
that would send a clear signal to the invest-
ment world that Sudan is serious about be-
ing an active participant,” he said.
Success for Perseus appears to be in-
trinsically linked to future opportunity for
Sudan.
“When I sat with the Minister at Africa
Down Under, he asked us to act as am-
bassadors for Sudan,” Quartermaine said.
“I told him that process was already under
way and if we are successful other inves-
tors will come to the country. If we are not,
they won’t come for a long time. It is a
clear reason to work together, everything
that has happened suggests the Govern-
ment is keen to work with us to achieve
success.”
That Perseus would take on such a
challenge is evidence of the confidence
flowing through the company. If its Sudan
play comes off, that confidence will only
increase further.
– Dominic Piper
AUSTRALIA’S PAYDIRT DECEMBER 2022 - JANUARY 2023 PAGE 37
OPINION
G’day, I’m Scott Morriss, Australia’s Trade Commissioner
to Africa since May 2021
his opinion piece in Paydirt’s Mining
TIndaba preview has two purposes –
pass on to readers my observations and
learnings after 18 months in Africa, and
exhort Australian mining and METS com-
panies to participate in the second-ever
Australian Mining in Africa programme at
Mining Indaba in Cape Town on February
6-9, 2023.
Australian mining in Africa is noteworthy
for contrasting in scale, size, and reach to
Australia’s diplomatic and trade presence
in Africa, which is small, compared to other
continents. For example, across all of Af-
rica there is one Trade Commissioner (me)
and only eight Austrade staff cover North
and Sub-Saharan Africa.
In stark contrast to this, according to an
Austrade study at the beginning of 2022,
Australian miners had invested over $40
billion in the continent, not including ex-
ploration activities. As of January this
year, there were over 670 African mines
with Australian equity, and at any one time
there are about 130-150 Australian-owned
mines in operation across Africa, with 130-
140 to 140 Australian METS companies
active in supporting mining.
Just on those figures, Australian miners
and METS companies matter to Africa. opportunities in southern Kenya or deliv- settings in which taxes and tariffs are ap-
We are big investors, operators and, in ering internet-based education to remote plied to commodities that were not made
many cases, the suppliers of world lead- communities in north-west South Africa, with low carbon energy sources, are at the
ing capabilities and services. Whether it Aussie miners are proving their commit- top of concerns for many miners I speak
be traditional “hard” mining capabilities ment to long-term community develop- to. Closely linked to this is being able to
such as Australian drilling technology and ment and economic empowerment post draw upon a reliable, skilled and educated
skills, blast control, shaft ventilation, or the life of a mine many times over. work force locally in Africa to both help
beneficiation technology, or newer fourth This is all great stuff and worthy of acco- transform mining as well as create the jobs
industrial revolution capabilities involving lades, however, if I were to offer a perhaps of the future that can help make mining
digital twins and sophisticated modelling bitter chaser to my words above, it would greener.
software or immersive training technolo- be that many challenges remain. Many of So, if any of the above resonates with
gies, Australians are often in the lead in these could potentially degrade the mutu- you or sparks your interest in Africa, may I
collaborating with African partners to help ally beneficial relationship between Aus- encourage you all to participate in or pos-
transform mining into a safer, more effi- tralian miners and METS companies and sibly become a sponsor of our Australian
cient, and more profitable industry. Africa to a point that sees Australian com- Mining in Africa programme. Our African
But if you will listen to a newcomer, the panies depart for home or other parts of high commissioners and ambassadors will
Australian-owned mines in Africa and the the world. be there, and we plan to have a packed
new capabilities Aussie METS companies I do not want to see this. programme of roundtables, presentations
are bringing are not the only part, arguably Beyond some obvious problems in cer- and networking events with government
not even the most important part of the tain places such as power and transport and industry decisionmakers involved in
story. In talking with multiple African gov- infrastructure in need of rectification, many Africa mining.
ernments over my brief time here, it’s clear tell me that local content rules and political
that all Africans want to maximise the ben- expectations often create uncertainty that For more information, visit:
efits to local communities and more broad- make it difficult to provide assurances to https://www.austrade.gov.au/Event/
ly African nations, to result from mining. investors. If Australian junior miners – the MiningIndaba2023#/event
Australians are trustworthy partners in vanguard of Australian mining at large
this aim. Whether it be building schools, – cannot attract investment into new pro-
roads or hospitals in West Africa, or laying jects, then the future darkens.
down the foundations of new agribusiness Also, the world’s future decarbonisation
PAGE 38 DECEMBER 2022 - JANUARY 2023 AUSTRALIA’S PAYDIRT
Services for
every step of
your project
Capital Limited is one of the largest
mining services companies in Africa,
providing a comprehensive range of
drilling and mining solutions, including:
• Exploration drilling
• Blast hole and grade control drilling
• Load and haul
• Mine management
• Dewatering
• Maintenance
Contact us for a fully integrated mining
services solution for your project.
FOLLOW US www.capdrill.com | [email protected]
EWOYAA ON
EWOYAA ON
FULL CHARGE
“Green energy is
FULL CHARGE “Green energy is
going to be a big
going to be a big
nvestors”
tick with i
tick with investors”
Ghana’s first producing lithium mine has taken a major step
closer to fruition after the newly dual-listed Atlantic Lithium Ltd
unveiled enhanced economics and submitted a mining licence
application for its Ewoyaa lithium project.
Just four days before the company’s shares “Every $US100/t increase in SC6 price
K y e D s l i a t e started trading on the ASX on September forecast results in an additional 9%
increase to the post-tax NPV8, highlighting
26 under the ticker ‘A11’, Atlantic Lithium
y e
D
K ASX: A11 s l i a t e released a robust PFS on Ewoyaa which the significant potential value uplift to the
supported development of a conventional
project.
AIM: ALL
ASX: A11 2 mtpa DMS processing facility capable of “Operating costs of $US278/t SC6, which
OTC: ALLIF producing an average 255,000 tpa lithium include a discount of US$165/t for by-
AIM: ALL
Website: www.atlanticlithium.com.au spodumene concentrate (SC6) over the products, further demonstrate the attractive
OTC: ALLIF initial 12.5 years of mine life. fundamentals of the project. Ewoyaa ben-
LinkedIn: Atlantic Lithium Limited
Website: www.atlanticlithium.com.au The PFS delivered a number of improve- efits from simple mineralogy, low power
Twitter: @AtlanticLithium
LinkedIn: Atlantic Lithium Limited ments on the December 2021 Scoping and water consumption, a DMS-only pro-
cess flow-sheet design, skilled workforce
Study, including post-tax NPV of $US1.33
Twitter: @AtlanticLithium billion, IRR of 224% and payback in less and proximity to operational infrastructure,
than five months. including grid power, sealed road and
A maiden ore reserve of 18.8mt @ 1.2% deep-sea port. These fundamentals are
Li2O for Ewoyaa was also declared with arguably among the best in the world and
the PFS. enable a low-carbon footprint project.”
Other financial highlights from the PFS In addition to SC6 production, the PFS
were free cash flow of $US2 billion from incorporates two additional revenue
life-of-mine revenues of $US4.84 bil- streams from by-products; a saleable direct
lion and average life-of-mine EBITDA of shopping ore fines product and a saleable
$US248 million per annum. feldspar by-product.
Atlantic Lithium Interim CEO Len Kolff says The PFS conceptualises a three-stage crush-
the PFS further illustrates Ewoyaa as an ing facility being integrated ahead of the
industry-leading lithium asset. proposed DMS processing facility. This is a
“The study used a long-term average SC6 major design change to the scoping study
price of US$1,359/t FOB Ghana, with which assumed contract crushing, therefore
recent equivalent grade prices as high as improving operational control and reduc-
US$7,708/t being achieved on Pilbara ing both plant opex and lithium losses.
Minerals Ltd BMX platform and represent- As a result, capex has increased from
ing a mid-range forecast when compared $US70 million in the Scoping Study to
to other commentators,” Kolff says. $US125 million in the PFS, which also
EWOYAA ON
FULL CHARGE “Green energy is
going to be a big
tick with investors”
includes increased capital cost to relocate the HV powerline com- team supported by NASDAQ-listed Piedmont, which is backing
mensurate with a 42% increase in the MRE, building the feldspar the company through to production by funding studies and $US70
DMS circuit upfront and 17% inflation. million of capex.
Kolff, however, believes the robust economics outlined in the PFS As well as calling on the Piedmont experience, Atlantic Lithium
demonstrate Ewoyaa is not sensitive to inflationary and capital cost can lean on the lithium knowledge of Noel O’Brien and Steve
increases. Zaninovich who have both previously commissioned DMS lithium
“Against the backdrop of buoyant global lithium demand, driven projects.
particularly by electric vehicle demand, we believe Ewoyaa will Completion of the PFS also paved the way for submission of the
play a significant role in sustainable lithium production,” he says. mining licence application for Ewoyaa to the Minerals Commission
“This PFS moves the project another step closer to becoming of Ghana.
Ghana’s first lithium-producing mine. Supported by our funding “The application marks a significant milestone for the company
agreement with Piedmont Lithium Inc, we are excited to continue having completed extensive exploration and technical pro-
advancing Ewoyaa through the next stages of studies and permit- grammes, environmental and social studies, economic studies and
ting towards production.” the valuation of the project,” Kolff says.
Atlantic Lithium has been a standout performer on the ASX since “As evidenced by our work to date and highlighted by the PFS, we
debuting on the Australian bourse in late September. have demonstrated a fundamentally robust development case at
Given the significant growth in lithium demand forecast over the Ewoyaa, which delivers extensive social and economic benefits to
coming years, Atlantic Lithium Executive Chairman Neil Herbert our local communities and the Republic of Ghana.
K y e D s l i a t e believes now is the opportune moment to raise the profile of both “We look forward to working closely with MinCom, the Ministry of
Lands and Natural Resources, the EPA, local Government authori-
company and project.
odies towards the
ASX: A11 “We believe that trading on the ASX will extend the company’s ties, our host com munities and other regula tory b
shareholder base, enable wider trading and offer greater liquidity grant of the Ewoyaa mining licence.”
AIM: ALL
for Atlantic Lithium shares,” Herbert says. It could take up to 12 months for the mining licence to be granted
OTC: ALLIF “Lithium companies listed on the ASX have attracted significant but Kolff remains confident Ewoyaa can deliver on every level,
Website: www.atlanticlithium.com.au investor interest of late. As such, we believe that the listing will especially with lithium developers now coming under increased
LinkedIn: Atlantic Lithium Limited help enable the company to achieve a more attractive valuation in scrutiny for their performance across the ESG spectrum.
respect of its industry-leading Ewoyaa project. “The project has an extremely low environmental impact and,
Twitter: @AtlanticLithium
“As an Australian-headquartered company, the listing also allows because it is essentially a DMS project, it will be a lower power
us to reinforce the close communication we have with an expand- and water consumer,” he says.
ed group of Australian investors.” “We have grid power adjacent, largely hydro and two 20MW
Former Allkem Ltd general manager Keith Muller recently joined solar plants 40km away, so green energy is going to be a big tick
Atlantic Lithium as its new Chief Operating Officer, adding to a with investors.”
INDABA PREVIEW
Sandfire readying to
ramp up Motheo
espite management changes, Sand- Matt Fitzgerald flagged the possibility of
Dfire Resources Ltd is gearing up to further debt funding when A4 develop-
accelerate activities in Botswana, eyeing ment kicks off.
off another financing facility for the Moth- “We will look at a $40-60 million facil-
eo copper project. ity towards the back end of next year,”
Sandfire took the market by surprise he said.
in September when Karl Simich stepped Fitzgerald expects this to coincide
down after 15 years at the helm of the with the start of pre-strip at A4 and early
company, during which time he led it construction and planning activities dur- Construction activities from Motheo are
from microcap junior explorer to multibil- ing the commissioning of the 3.2 mtpa on schedule
lion dollar international copper producer. facility at Motheo. This comes following
In November, former South32 Ltd and BHP the release of a positive DFS in August
Ltd senior executive Brendan Harris was which supports expansion to 5.2 mtpa Motheo is expected to deliver about
announced as the company’s new manag- from the March quarter of 2024. 4,000-5,000t to the company’s total cop-
ing director. Acting chief executive Jason “We have designed the mine to make per production guidance for FY2023 of
Grace will continue to oversee Sandfire’s it as simple as possible to cut over to the 83,000-91,000t.
aggressive approach for expanded Motheo 5.2 mtpa rate,” Grace said. Meanwhile, the company’s MATSA op-
operations until Harris officially starts his Additionally, the company is looking at eration in Spain is expected to provide
new role from April. expanding exploration at the A1 prospect the bulk of production, targeting 60,000-
Following the execution of a $US140 after October assays outlined copper- 65,000t copper and 78,000-83,000t zinc
million facility in the September quarter, silver mineralisation over 1.8km of strike. for the financial year.
Sandfire drew down $US55 million to Sandfire executive of growth Richard Sandfire has a $US532 million facil-
fund development at the T3 prospect for Holmes said the company planned to un- ity at its disposal to advance activities
its 3.2 mtpa production goal. dertake step-out drilling at the prospect, at MATSA, with its next repayment due
Construction activities are on sched- with mineralisation open along strike to in January. The company completed its
ule, with first production targeted for the the north-east and up and down dip. first repayment of $US118 million in Sep-
June quarter of next year. “Geologically, the A1 prospect has a tember.
The company has begun installing the very similar setting to T3 and A4. If we While activities at its DeGrussa project
SAG mill and primary crusher and mined step out a little bit further, we think there is in WA are winding down, the approval to
the first ore to stockpiles. a further 4km of the dome to explore that continue processing operations until ear-
Furthermore, chief financial officer has a similar geological setting,” he said. ly next year has drawn out the process.
Fitzgerald said
the company was
$20-25 million into
its closure obliga-
tions for the project.
“The working
capital unwind of
DeGrussa is slowed
by the processing
extension and also
assisted by the ad-
ditional 2,000t cop-
per and 2,000oz
gold into that guid-
ance,” he said.
– Yvette Ogilvie
First production from the
Motheo mine is targeted for
the June quarter of 2023
PAGE 42 DECEMBER 2022 - JANUARY 2023 AUSTRALIA’S PAYDIRT
P&C Paydirt Indaba Preview FP Ad 2022_Engineering_FActp.indd 1 2022/10/31 12:16 PM
INDABA PREVIEW
Botswana: Home, sweet home for Cobre
Despite Botswana slipping in the Fraser “The Government generally has the right similarities to other deposits on the KCB.
Institute’s investor attractiveness index, Co- to take 20% stakes in projects that are get- Holland explained Cobre was using a two-
bre Ltd managing director Martin Holland ting ready to be turned into mines,” he ex- rig approach to drill out Comet while hunting
still believes the country is the best African plained. “What’s important about that is they for other opportunities.
jurisdiction to mine and explore in. don’t get free carried either. “We have one diamond rig that’s focused
“From our perspective, and a foreign in- “They actually fund 20% of the capex to on Comet and another diamond rig focused
vestment perspective, Botswana is regard- get exposure to projects in Botswana. That on scouting new targets for exploration and
ed as the number one place to mine in Africa means there’s a lot of alignment between to find new discoveries,” he said. “In parallel
as a mining friendly jurisdiction,” Holland told government and companies in country.” with that, we’ve completed a soil sampling
Paydirt. “I was on site literally a couple of Botswana’s most successful mining story programme, which we’re getting the results
weeks ago and you can feel on the streets at the moment is Sandfire Resources Ltd, back for now.
that it’s a very friendly jurisdiction. which is readying to kick off production from “That will extend our strike to over 500km
“It’s a very safe country, only a small popu- its Motheo copper mine on the Kalahari which will allow us to move ahead to get an
lation of around 2 million people and there’s Copper Belt (KCB) in 2023. aircore-RC rig on site in the first quarter of
good overall infrastructure already in place Cobre also operates on the KCB with 2023 to go and complete around 30,000m
in Botswana.” its Kitlanya East and West, Okavango and of drilling on those new targets.
Botswana ranked 11th in the world and first Ngami copper projects. “So, we’ll end up having two diamond rigs
and an aircore/RC rig on site and in opera-
tion from now and pretty much all the way
through 2023.”
As the neighbouring Sandfire readies to
kick off its 3.2 mtpa operation over an initial
12.5 years, Holland believes ongoing Aus-
tralian exploration and production on the
KCB will go a long way to improving investor
perception of Botswana.
“I think it’s getting more traction,” he said.
“You’re now having the first Australian com-
pany about to go into production, being
Sandfire, on the KCB with a large invest-
ment. You also have Cobre, a junior explor-
er, finding new discoveries on the belt. You
can tell the belt is filled with copper through-
out. It’s a large, district-scale opportunity we
have here with the possibility of finding quite
a significant amount of contained tonnes
of copper on the belt, probably millions of
tonnes.”
Cobre managing director Martin Holland, second from the left, recently returned from The likelihood of other companies enter-
Botswana where the company is exploring for copper among other ASX-listed groups such as ing Botswana’s KCB is low, given it is largely
Sandfire Resources
tied up between Sandfire (20,000sq km) and
in Africa in the Fraser Institute’s 2020 mining Holland said Sandfire’s rapid climb on the Cobre (8,000 sq km).
investor attractiveness index. Also ranking KCB has been matched by Government When asked if any prospective buyers
highly on policy perception, Botswana was participation. were circling Cobre, Holland reiterated the
recognised for its decreased concerns over “When I was out there, on site, you can company had no intentions of breaking up
labour regulations and employment agree- see all the infrastructure from power lines its holding and would instead look to keep
ments, taxation regime and uncertainty over and roads that have already been estab- systematically building its understanding of
protected areas. lished,” he said. “That’s showing the Govern- the KCB.
However, the following year, Botswana ment is really pro-mining.” “There’d never be a buying tenement sort
was dethroned by the fertiliser-friendly Mo- Shortly after speaking to Paydirt, Cobre of scenario,” he said. “We’re looking at it from
rocco. It was the first time Morocco was wel- announced the successful discovery of a a building scale opportunity. We’ve identified
comed to the Institute’s ratings and Botswa- high-grade copper zone at Ngami’s Comet around 55 targets at the moment and we’ve
na slipped in the overall rankings as a result. target. only explored one target to date that’s hit
While copper-endowed Botswana re- Infill drilling, still ongoing at the time of quite significant mineralisation of copper.
mained above peers such as Tanzania, Ni- print, intersected a 45m zone of visible cop- “The company won’t sell any individual
ger, South Africa, and Mali, it was devalued per mineralisation from 114m to 159m down- tenements, but we would look for potential
for the same policies it was rated so highly hole. strategic relationships that can come into the
in the year prior. However, Holland said, one Measurements made from a pXRF gun company to help move forward throughout
of the best parts of operating in Botswana showed chalcocite grades exceeding 10% this whole region.”
was the policies surrounding Government at the base of the zone. Cobre management
participation. believed the high grades at Comet showed – Fraser Palamara
PAGE 44 DECEMBER 2022 - JANUARY 2023 AUSTRALIA’S PAYDIRT
aecimining.com
BETTER
BLASTING
WITH DIGITAL TECHNOLOGY
AECI Mining Explosives’ new, high-accuracy (sub-1m) Di erential Global
Positioning System (dGPS) brings autonomy to the blast hole tagging
process, thus maximising e ciency by eliminating potential human error on
the bench and ensuring integrity of drill and blast operations.
INDABA PREVIEW
Manganese moons
our months into the longer-term ambitions.
Frole, Jupiter Mines Tshipi is one of four
Ltd managing director world-class manga-
Brad Rogers is start- align for Jupiter nese mines along a
ing to formulate ideas 32km stretch of land in
around exactly how the the Northern Cape.
company can take its “There are four glob-
Tshipi manganese mine to new levels. ally significant bulk commodity assets
Former BIS Industries chief Rogers in a small area which gives rise to con-
started at Jupiter on August 1 and has solidation options to capitalise on oppor-
spent his time visiting the 49.9% owned tunity and synergies in logistics, geol-
Tshipi in the Northern Cape, South Af- ogy – blending and mine planning – and
rica and speaking with staff and other management,” Rogers said. “If you have
stakeholders to ascertain exactly where mines hundreds of kilometres apart it is
the opportunities lie. His conclusion: much more difficult.
Tshipi’s world-class status could be im- “Strategically, you want to protect what
proved further, laying the foundations for you’ve got and make sure it is well de-
Jupiter to grow into a major international fended. After that comes growth and so
manganese player. after we focus on optimising what we
“Until now, Jupiter has been happy to have got, there is a supportive outlook to
operate the mine well and stream the do something more.”
dividends from that, but it is clear the in- The other factor encouraging Jupiter’s
vestor base wants something more than expansion plans is the shifting dynam-
that, and that is the opportunity I have ics of the manganese market. Rogers
come here to pursue,” Rogers told Pay- equated the metal to another steel addi-
dirt. tive, nickel, for the way demand is start-
The base is undoubtedly strong. Jupi- ing to diversify due to increasing use in
ter sold 938,000t of manganese in the EV batteries.
September quarter at an average cost “The macro conditions around manga-
of $US1.96/dmtu. With an average sale Brad Rogers nese give rise to potential consolidation,”
price of $US3.36/dmtu. This resulted in he said. “Its use in steel is increasing
EBITDA of $87.7 million and NPAT of far rosier than you would imagine. and the EV market will be a real demand
$54.9 million. “It is true that [national railway com- driver in the future.”
For Rogers, the immediate priority is pany] Transnet can’t meet our full needs, Nickel miners are already pursuing
improving those numbers further. but for all the handwringing their perfor- downstream strategies to deliver a nickel
“Obviously the lowest risk, highest re- mance isn’t too bad,” he said. “They are sulphate product straight into the battery
turn option is optimising Tshipi’s output not going to be able to give us more but supply chain. Rogers said Jupiter was
and when it comes to any bulk commod- they are meeting their commitment to investigating similar steps for producing
ity that means looking at logistics,” he us.” manganese sulphate.
said. “That was what attracted me to this That will necessarily limit immediate “We are doing the work on down-
role because logistics is my bread-and- growth – Tshipi could mine at 5 mtpa but stream options currently, pulling it apart
butter through my time at BIS. We have only has access to 3.5 mtpa of rail ca- and looking at how attractive it is and
to look at how we can optimise costs and pacity – but Rogers is already investigat- how we would go about it,” he said. “I
de-risk logistics to improve margin and ing other options. think because it is a long-term opportu-
organically grow production.” “In the Australian context, particularly nity it would likely be in partnership with
Rogers has already identified several in Western Australia, you’re relying on offtakers.”
potential quick wins, including the in- road for your bulk commodities. If you Discussions about downstream ca-
stallation of solar power to offset diesel take the mindset that we are getting our pacity are fashionable in Australian min-
generation and the implementation of rail allocation, but they aren’t able to give ing circles, something which manganese
conveyor technology to eliminate some us full amount for full production, we and South Africa have rarely been.
rehandling at mine and port. have to now optimise our land logistics “It is interesting the ASX is so risk-off
“And, that is just at site, offsite pre- as much as possible,” he said. when it comes to South Africa because
sents other opportunities in both land “There is real opportunity around our the risks aren’t insurmountable,” Rogers
and shipping logistics,” he said. road trucking. Everyone in the South said. “Manganese is a future-facing met-
Anyone with a passing knowledge of African manganese sector is trucking al with two key demand drivers in steel
the country’s recent travails would con- 1,000km to port, and I think there are op- and EV batters. I don’t think Australian
clude de-risking logistics in South Africa portunities to work with providers to be investors are familiar with that and we
is a sizeable challenge. The country has more efficient and impact communities need to get the story out there more.”
been badly affected by rolling blackouts less than we currently are.” – Dominic Piper
and crumbling rail and port networks. Jupiter’s recognition of manganese
However, Rogers’ initial assessment is as a logistics game leads it directly to
PAGE 46 DECEMBER 2022 - JANUARY 2023 AUSTRALIA’S PAYDIRT
Triple ISO
accredited
ISO17034 for Reference
Material Producers
ISO 17043 for Proficiency
Testing Scheme Providers
ISO9001
AMIS is the only triple ISO accredited,
Certified Reference Material Producer.
Visit our website at www.amis.co.za for more details and information, or contact
Jumien Peceur at [email protected] to further assist you.
www.amis.co.za
EXPLORING SOLUTIONS, TOGETHER.
2022/10/26 15:47
Amis Paydirt publication Triple ISO Accredited Ad.indd 1 2022/10/26 15:47
Amis Paydirt publication Triple ISO Accredited Ad.indd 1
INDABA PREVIEW
Bell tolls for West Wits start
West Wits plans to begin operations early
est Wits Mining Ltd has locked in ent strategy because we want something in 2023 after striking a toll-treatment
Wa toll-treatment agreement with to take to the banks and borrow against,” agreement with Sibanye-Stillwater
Sibanye-Stillwater Ltd, paving the way he said. “Now that we have that, it opens a
for financing and development of its Qala number of funding options to us.”
Shallows project on the Witwatersrand West Wits has appointed corporate ad- production over 10 years at an AISC of
Basin, South Africa. visory firm Taurum International to run the $US962/oz. Assuming a $US1,750/oz
The agreement will see West Wits sup- project financing process. gold price, that resulted in a pre-tax NPV
ply Sibanye-Stillwater subsidiary Ezulwini “They’ve already started engaging with of $US180 million and IRR of 38%.
Mining Company Pty Ltd with an initial the big banks in South Africa and the re- Gold developers have been hampered
15,000 tpm of gold ore for its Cooke 4 pro- action has been positive,” van Heerden by rising inflation and a soft gold price en-
cessing facility. It is planned this figure will said. “People have been seeing this pro- vironment in 2022 but van Heerden was
rise to 54,000 tpm over the subsequent ject coming for a while but now are in a quick to point out the rand gold price had
three years. position to look more carefully. That is why held up well against its US equivalent.
According to West Wits managing di- we waited until the toll-treatment was in “The turmoil in the US dollar gold price is
rector Jac van Heerden, the toll-treatment place, it means we don’t have to lose mo- not affecting us much and the updated fea-
agreement would de-risk the project and mentum.” sibility study already incorporated some of
unlock funding options for the company. Confirmation of the debt component will those cost pressures such as diesel,” he
“It was really the last hurdle for us to also set off equity discussions with the said. “The rand gold price has actually
start mining,” van Heerden told Paydirt. company eager to avoid further dilution for gone up so the project finances are not af-
“Now that we have a processing option shareholders. fected as some investors assume.”
in place, we are in a position to approach “We understand the potential for dilu- Finalisation of debt before Christmas will
debt funders to get term sheets and then tion but we still have to raise capital to give the company confidence to mobilise
look at capital raisings.” get things going,” van Heerden explained. the mining contractor and equipment for
Negotiations over toll-treatment had “We have a few options though and we are Qala Shallows, allowing for an operational
taken longer than anticipated but van looking at things like streaming and royalty start early in 2023.
Heerden said it had been vital West Wits agreements.” The modest start-up mining rates should
struck a deal which would satisfy funders. Financing discussions will be based mean the company avoids the equipment
“Companies like Sibanye have short- on the revised DFS which estimated a delays currently plaguing the global min-
term agreements but we require a differ- capex of $US63 million for 55,000 ozpa of ing industry, with an initial fleet already
PAGE 48 DECEMBER 2022 - JANUARY 2023 AUSTRALIA’S PAYDIRT
Having started dewatering several of its underground mines, West Wits has ambitions to lift
overall production to 200,000 ozpa gold
earmarked. Van Heerden said capacity
would be built over time as rates grew from
15,000 tpm to 53,000 tpm.
A mining contractor has already been
selected and has begun the labour hire
process.
“We will start with a team of 50 and then
build up over time,” van Heerden said.
That build-up will include a sizeable pro-
portion of employees from the local area
with West Wits eager to ensure it delivers
on promises it has made to the community.
“There is a lot of support from commu-
nity for this project and because we are in
a renowned mining area there are skills
available,” van Heerden said. “As we grow,
we will employ from the local community.
There are young people who require train-
ing who’ll come through as well. We are
already engaged with people and are en-
couraging them to send CVs and company
profiles as there are quite a number of con-
tracts to put into the community.” place but now we can move forward with ject 200 study,” van Heerden said. “It is
The restart at Qala Shallows is also sup- their support.” quite exciting. We are looking at increased
ported by the local and national govern- While the immediate restart of Qala resources, a reworked mine design and
ments for its potential to ease environmen- Shallows is the priority, West Wits will also optimising infrastructure, as well as the po-
tal legacy and illegal mining issues in the continue pursuing its wider ambitions on tential to build a plant and what our tailings
area. the Witwatersrand Basin with a full scop- storage could look like.
“We have very good support in the de- ing study under way to flesh out a strategy “It is still a definite option. We know the
partment and they are happy to see us for moving towards 200,000 ozpa gold scale of the orebody on our property and
moving towards production,” van Heerden production. the opportunity it poses.”
said. “It took time to get the permitting in “Everything is building towards that Pro- – Dominic Piper
Mahenge Graphite Project
The best undeveloped graphite project globally, driven by Geology and Geography
Tier 1 Scale Project Black Rock Mining is an Australian based company listed on the
NPV US$1.4bn (A$2.1bn) 1 Australian Securises Exchange (ASX: BKT). The Company has a
10
84% interest in the Mahenge Graphite Project located in
Govt Agreements and Tanzania. The Project is Tier 1 scale with a JORC compliant
Permits in Place Mineral Resource Essmate of 213m tonnes at 7.8% TGC. It is also
the 2nd largest reserve globally with Ore Reserves of 70m tonnes
Backed by largest ex-China at 8.5% TGC. The Ore Reserves support a mine life of up to 350k
Anode Producer, POSCO tonnes of g
tonnes of graphite per annum for a reserve life of 16 years.
Construccon Ready subject
to Financing
ASX: BKT
blackrockmining.com.au
Resource Essmate as released to ASX on 3 February 2022: BKT Confirms 25% increase in Measured Resources and Ore Reserve Essmates. Black Rock confirms that it is not aware of any new informason or data that materially affects the informason included in the original market
announcements referred to above, and in the case of essmates of mineral resources or ore reserves, that all material assumpsons and technical parameters underpinning the essmates in the relevant market announcements consnue to apply and have not materially changed. The
Compa
Company confirms that the form and context in which the Competent Persons’ findings are presented have not been materially modified from the original market announcements. The essmated Ore Reserves and Mineral Resources underpinning the producson and financial forecasts in
the Enhanced DFS were prepared by Competent Persons in accordance with the requirements in Appendix 5A (JORC Code).
1 See Black Rock ASX release dated 10 October 2022, Black Rock completes FEED and eDFS Update. All technical parameters, including in the essmason of Mineral Resources or Ore Reserves, underpinning the essmates consnue to apply and have not materially changed. The essmated
Ore Reserves and Mineral Resources underpinning the producson and financial forecasts were prepared by Competent Persons in accordance with the requirements in Appendix 5A (JORC Code).
AUSTRALIA’S PAYDIRT DECEMBER 2022 - JANUARY 2023 PAGE 49
INDABA PREVIEW
Sense of destiny has OreCorp
moving on
ircumstances may have blown the overall uncertainty in the market and Changes within Tanzania have also
COreCorp Ltd off course several times the fact we will be raising project funding in tipped the risk balance in OreCorp’s fa-
over the last seven years but it is testa- Australian dollars, none of it helps,” Yates vour. President Suhulu’s investor-friendly
ment to the quality of its Nyanzaga gold lamented. “Last year, we were hit with a approach has seen money flow back into
project that the company is far from sunk. wall of cash and had to close the place- the country, including Barrick Gold Corp’s
“It feels like we have always been facing ment at $56 million after scaling everybody recent $US200 million commitment and
adversity, but this is a big project and it will back. Fast-forward a year and we are not BHP Ltd’s $US110 million investment into
have its day,” OreCorp managing director worried about finding the debt component the Kabanga nickel project.
Matthew Yates told Paydirt. of the project finance but the equity inter- “The reaction to Tanzania has been very
OreCorp has been pushing Nyanzaga est is not there. But, gold will have its day positive, which is down to the President,”
forward since 2015, when the then $5 mil- again and fortunately we have that money Yates said. “She has set the tone from the
lion company pulled off a remarkable coup in the bank.” moment she came to power and we have
by convincing Acacia Mining to divest a Yates’ confidence has undoubtedly seen it on the ground. We received cabinet
25% interest in the 4 moz gold project. been reinforced by recent developments approval for our special mining licence in
OreCorp spent the next six years in- on Nyanzaga – 60km south of Mwanza June last year and by December the Presi-
creasing its interest and confidence in in northern Tanzania – including release dent had granted the licence.”
Nyanzaga. In March 2017, the company of a robust DFS in August and the warm- The DFS and mining licence have paved
released a positive PFS, pointing to a ing investment climate in the East African the way for OreCorp to step up financing
4 mtpa operation capable of producing country. discussions for Nyanzaga.
213,000 ozpa over 12 years. A DFS was The DFS built on the 2017 PFS which “That is the big push but there are
immediately launched but by the end of marked Nyanzaga as one of the best gold changing circumstances,” Yates said. “Ini-
the year, worsening investment conditions development assets on the African conti- tially we looked at 50:50 debt-equity but
in Tanzania had the company on the back- nent. now we are looking at 70:30 debt and what
foot. “In terms of production profile, mine life, alternatives we can pursue so we don’t
While peers in Australia and West Africa cash costs, etc everything remains sta- have to issue shares at a low price. We
took advantage of the market’s love affair ble. If anything the production profile is a are seeing healthy appetite from the local
with gold developers, OreCorp was left bit stronger than we envisaged [242,000 banks in Tanzania who have more debt ca-
frustrated as investors turned away from ozpa in the DFS versus 213,000 ozpa in pacity than we initially realised.
President John Magufuli’s resource na- the PFS],” Yates said. “That means the debt component
tionalism policies. “The one thing that has gone up is the should be fairly vanilla, allowing us to do
Investor appetite for Tanzania has re- capex, but we are not Robinson Crusoe different things with the equity. We are
turned thanks to the more progressive in that respect. It is a big project, 4 mtpa, looking at various arrangements and you
policies of current President Samia Suhulu and has scalability and longevity and in the mustn’t take any option off the table during
Hassan, but now OreCorp finds itself fac- modern world is as capex competitive as times of woe.”
ing downbeat capital markets. any project. The risk-reward balance is still Options could include bringing in a pro-
“It has been the perfect storm really with there but the prize has increased.” ject partner. While equity markets are re-
Nyanzaga is ideally located in
Tanzania’s gold heartland
PAGE 50 DECEMBER 2022 - JANUARY 2023 AUSTRALIA’S PAYDIRT