Limpopo Business 2016-17 edition

OVERVIEW
At the University of Limpopo, the Materials and Modelling Centre
has a nationally-appointed Chair in Computational Modelling of
Materials. The chair, which is funded by the National Department of
Science and Technology and the National Research Foundation, is
held by distinguished Professor Phuti Ngoepe. High-level research is
undertaken into magnesium and titanium compounds and into issues
such as the nanostructures of lithium-ion which are relevant to the
electric-car industry.
Platinum and coal
Despite reduced global demand in the short term, Platinum Group
Metals (PGMs) are very much linked to the modern global economy
and high-technology products of every sort: catalytic converters
and fuel cells are just two examples. Jewellery is another application.
According to marketing agency Johnson Matthey, South Africa has, in
percentages of world supply of Platinum Group Metals: 75% platinum;
35% palladium and 86% of rhodium.
Implats’ major Limpopo asset is a 73% holding in Marula (eastern
limb) which is 50km north of Burgersfort. Jubilee is the minority
shareholder.
Lonmin runs the Limpopo mine near Polokwane on the eastern limb
of the BIC but most of its mines are in North West province. Lonmin’s
other Limpopo assets include the Baobab mine, a concentrator and
a half share (with Mvelaphanda Resources) of the Doornvlei project.
Northam Platinum has the mines Zondereinde (on the western
limb) and Booysendal in the east and in 2015 acquired the Everest
mine from Aquarius. The company is increasing production and made
a profit in 2015 of R595.8-million.
Junior mining companies active
in Limpopo include Lesogo
Platinum (the Phosiri Project on
the eastern limb), Nkwe Platinum
and Bauba Platinum.
A new platinum project got
underway near Mokopane in
2015, where Ivanhoe Mines
Platreef Project (64% owned by
Ivanplats) will spend $1.6-billion.
Limpopo contributes 4%
of coal mining in South Africa,
according to the National
Department of Mineral
Resources, but it seems likely
that within the next three
decades, the province will be
supplying about half of South
Africa’s coal.
Coal is massively in demand
because of South Africa’s urgent
need for more electricity.
Limpopo’s Waterberg coal field
is estimated to contain about
75- billion tons of coal.
Supplying coal to power-producer
Eskom has for many years
been part of the bread-andbutter
income for coal mining
operators. In 2015, Exxaro supplied
Eskom with nearly 30%
of the coal it needed to run its
power stations, about 33-million
tons of coal.
Exxaro spent several billion
rand expanding its Grootgeluk
mine in the expectation that it
would supply coal to Eskom’s
Medupi power station. However,
construction of the giant power
station has been severely delayed,
with the result that Exxaro
are now having to look to export
their coal. The plan was for the
mine to supply Medupi with
14.6-million tons of coal every
year for 40 years.
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