Page 22 - pd309-Oct22-mag-web-Neat

coVeR

Australian business and government on
ways of formalising the small-scale mining
sector and using it as a platform for large-
scale, commercial mining investment.
“Australians are preferentially welcome
because of their use of mercury-free tech-
nology, and the very good investment law
and facilitate concessional timeframes in
this country,” Minister Mennawi said. “Aus-
tralian miners won’t feel like aliens. Our min-
ing code is based on the WA mining code
with most elements based on the Australian
experience.
“The spread of small-scale mining has
occurred rapidly in the last decade. You
can’t stop small-scale mining but by organ-
ising it through cooperative organisations
you can control them a lot more and ensure
they use appropriate technology. One of the
main objectives of coming here is to learn
about mercury-free extraction technology.”
Sandile Ngoxina, special advser to the Minister of Mineral Resources & Energy, South Africa
The informal gold mining sector employs
more than 2 million people in Sudan, mak-
of 5% over the next five years.” energy sector,” he said. “Eskom is going to re- ing the East African country one of the larg-
Results are beginning to come, with the main a critical part of the energy mix but solu- est gold producers in Africa. Mennawi be-
South African Council of Geoscience recently tions to our electricity crisis is by getting a lot lieves that level of activity should prove an
identifying copper porphyry systems and lith- more private investment. In the mining sector incentive for international miners and that
ium-bearing pegmatite rock in the Northern alone, we have 6.5GW of projects.” foreign investment would in turn assist the
Cape. What the Australian miners say: I think Government in its formalisation plans for
The broader exploration strategy has they have to sort out the problems around the small-scale sector.
largely underwhelmed industry, but Minerals power, people and infrastructure. If those are “They go side-by-side,” he said. “We are
Council of South Africa chief executive Roger solved there is still potential and investors are developing a tripartite agreement between
Baxter said all parties continued to work at re- willing to go there. government, international companies and
fining the strategy. the [informal] miners which will minimise
“There is still a bit of work to do but it’s going Rankings: South Africa the use of mercury and help us organise
in the right direction,” Baxter said at ADU. “We the sector.”
are encouraging the Government to buy an To achieve those aims, Sudan requires
off-the-shelf mineral cadastral system. There 70 84 75 further foreign investment and Mennawi
is a backlog with processing rights that we 180 190 84 recognises the importance of demonstrat-
are focusing on [some 4,000 applications are ing precedence. Fortunately for his Gov-
clogged in the system] but cooperation has ernment, the country recently welcomed
been very good.” ASX’s most successful African gold miner,
If exploration has been curtailed by a lack Transparency International Corruption Index: World Bank Ease of doing business (2020): Fraser Institute Investment Attractive Index: Perseus Mining Ltd, as an investor.
of direction, new developments have been In February, Perseus paid $C215 million
hampered by South Africa’s ongoing power for Orca Gold and its 5 moz gold Block 14
crisis. The country frequently suffers from gold project in northern Sudan.
blackouts due to a crumbling grid. Nkabane Mennawi said the arrival of Perseus her-
said new policies announced by President alded a new era for foreign investment in
Cyril Ramaphosa would allow miners to find Sudan.
their own relief. “Investment is always driven by profit and
“We have implemented some reforms in profits are there,” he said in reference to the
energy policy and regulation including the potential of Block 14. “If this goes well, we
introduction of independent power producers Sudan will start to receive further bigger compa-
and removal of cap on embedded generation nies like Perseus. As well as gold, Sudan
which will allow miners to generate their own Like Nigeria, Sudan is turning to mining hosts copper and other critical minerals, in-
power for their own use without a licence. This after decades of relying on oil revenues. It cluding lithium and manganese.”
has enabled a pipeline of over 80 renewable is similarly underexplored but has the dis- Speaking at ADU, Perseus managing di-
projects producing 6.5GW by the mining sec- tinct advantage of an active and growing rector Jeff Quartermaine said the company
tor. All these reforms are geared towards en- informal mining sector to demonstrate its had been impressed by both Sudan’s pro-
sure we regain South Africa’s position as min- prospectivity. spectivity and willingness to do business.
ing investment and development destination. The visit of Minister for Minerals Moham- “Sudan is a very highly prospective, un-
Baxter commended the Government for ed Basher Abdalla Mennawi Abunammu to derexplored, attractive and prolific mineral
liberalising energy markets. ADU was the first by a Sudanese minister. province... [it] has been largely overlooked
“We have had a complete unlocking of the He said his intention was to engage with by western mining companies for many

Page 22 OCTOBeR 2022 aUSTRaLIa’S PaYDIRT