Page 87 - pd307-Aug22-mag-web-Neat

Anglo American’s 510t dump truck
is piloting the company’s nuGenTM
zero emission haulage solution. It is
the first time a truck of this size and
load capacity has been converted to
run on hydrogen that will be produced
on-site in South Africa in hybrid
combination with a battery

South Africa Roger Baxter

floats hydrogen
opportunity

hile Australia’s energy revolution
Wdiscussion is dominated by lithium,
nickel and rare earths, South Africa is
pursuing a green economy fuelled by
hydrogen with the nation’s miners right
behind the initiative.
The Minerals Council of South Africa has
developed a Net Zero 2050 Action Plan on
behalf of its members with investment in
renewable energy sources such as green
hydrogen, solar, wind and battery storage
at the heart of its strategy.
“The industry has its own ambitions
related to the hydrogen economy and
we are doing work with government and
Sasol on that,” Minerals Council chief
executive Roger Baxter told Paydirt. ment of Mineral Resources and Energy, Ja- silver) from infill drilling on its Prieska copper-
However, with more than 80% of South cob Mbele,” Baxter said, laying some of the zinc project in the Northern Cape.
Africa’s currently limited power supply blame on the dysfunctional new cadastral Orion is updating its 2020 feasibility study
generated via coal, Baxter warned system. on the reopening of Prieska, which operated
the Western World couldn’t expect “South Africa is still not quite in the right for 20 years before closing in 1991.
emerging economies to move at the space to encourage a boom in exploration. Managing director Errol Smart said the re-
same rate as them. Without a functioning cadastral system, sults had exceeded expectations and would
“We are not climate change deniers, we timelines for prospecting rights are blowing benefit the company’s development plans.
are believers in a just energy transition,” he out. There is something like 4,000 prospect- “The grades intersected to date mostly
said. “The Minerals Council emphasises ing rights applications and renewals block- exceed that of the average grade of the
the criticality of a pragmatic and people- ing up the system. standing inferred resource estimate, making
centred energy transition that recognises “We are not sitting here just criticising the the early start of mining via an open pit an
South Africa’s dependency on a Government. We are saying, ‘you have a increasingly attractive opportunity,” Smart
reliable energy supply that is crucial for problem, it’s your problem and it’s our prob- said.
development and inclusive growth. lem’. We will play a role in trying to sort it out. “Our early production strategy aims to tar-
“We can’t sacrifice our energy security and “Every policy targets growth and the Gov- get the open pit and remnant pillars while de-
own development ambitions by turning off ernment has a target to get exploration up to watering is undertaken on Prieska Deeps.”
coal. We are engaged with Government 5% of world spend. Our view is that we have Meanwhile, West Wits Mining Ltd has se-
on a just transition and encourage some of the ingredients but not all of them cured an equity placement agreement with
more investment by the private sector in yet. We don’t have the treasury on board yet SBC Global Investment Fund for up to $75
renewables to enable the transition.” to implement a tax incentive, like Canada’s million as it looks to finalise development of
Baxter said miners had already targeted flow-through shares, to stimulate exploration its 4.28 moz gold Witwatersrand Basin pro-
investment in 1.6GW of renewables investment.” ject.
capacity over the next three years with a Despite the challenges, Baxter encour- Under the agreement, West Wits can elect
further 4.2GW planned. aged junior miners and explorers to consider when to place shares to SBC as it manages
“We are facing increased pressure from investing in South Africa. working capital requirements in parallel with
customers and over the next decade, “South Africa is not the perfect place, but debt funding discussions.
some 11GW of old-generation coal-fired it is a work in progress,” he said. “If you form “We are pleased to secure the agreement
power stations will need to be retired and good relationships at the domestic level, you with North American investor SBC Global In-
the energy mix will require much greater can succeed.” vestment Fund which provides the company
investment in renewables,” he said. “South Australian-listed companies are beginning flexibility to manage capital requirements
Africa has exciting prospects in the green to prove that. In June, Orion Minerals Ltd an- while focusing on the longer strategic financ-
energy space from renewables and nounced several high-grade hits (7.46m @ ing for development of the [project],” West
battery projects to Anglo American’s [plc] 9.24% copper, 0.19% zinc, 0.44 g/t gold and Wits chairman Michael Quinert said.
hydrogen fuel cell dump truck which could 17.46 g/t silver and 12.53m @ 4.89% cop- – Dominic Piper
be a game-changer for the industry.” per, 0.04% zinc, 0.51 g/t gold and 15.12 g/t

aUSTRaLIa’S PaYDIRT aUgUST 2022 Page 87