Mining in focus
Fortune Mojapelo , CEO of Bushveld Minerals , participating in the panel discussion .
commodity ,” explained Harwood . A great mineral coupled with poor timing could have a detrimental impact on the success of a project involving a particular mineral . In Bushveld ’ s case , commodity prices for vanadium were low when the company was negotiating the Vametco deal . “ The prices of vanadium at the time were quite low . I think at the time that we made our pitch for Vametco , prices were as low as USD13.50 per kg for vanadium ,” said Mojapelo .
The vanadium commodity prices did eventually change for the better , and according to Mojapelo , Vametco ’ s low-cost project remained sustainable until the turn in prices arrived . “ For us it came at an absolutely beautiful time . By the time we completed the acquisition , prices had doubled , and they ’ ve continued rising ,” he said .
Challenges for junior miners
The outlook for battery metals may be encouraging ; however , many challenges still remain for junior miners to break into the battery metals space and exploit abundant opportunities in the sector .
Financing for explorations and projects remains a major stumbling block for junior miners . “ Funders look at a good business first and they want some certainty in terms of supply ,” explained Paul Ranamane , executive chairman of Opal Mining . Countries such as the Democratic Republic of Congo ( DRC ), Zimbabwe , Zambia , and Namibia are known for having minerals used to produce batteries . However , political and economic instabilities could potentially put off investors from investing in any explorations or projects that junior miners might have in the pipeline .
Another major challenge is related to the beneficiation of battery metals . Bertie Strydom , Industrial Development Corporation ( IDC ) senior project development manager in new industries , highlighted that there were various battery storage technologies on the market ( some in development ), all of which used different mineral resources . According to Strydom , the minerals were dependant on market demand . “ We see a segregation coming in the market between power-type solutions versus energy-type solutions ,” Strydom said .
“ One is where you ’ ve got a lot of energy for a small period of time , up to three or four hours , and then you ’ ve got your energy supplies , where you ’ ve got energy storage that delivers up to 10 hours . The chemistries and the technologies are different .” A situation arises where there is an increase in
South Africa is rich in minerals and we need to make sure we benefit from those opportunities .
prices for minerals and a decrease for end product pricing , which puts the middleman in a difficult position , because their margins are constantly under threat .
The value and supply chain is another factor that junior miners need to tackle . Popovic pointed out that in the battery metals industry , batteries often had to go via midstream processes , before finally reaching automotive manufacturers . “ Aligning that value chain and supplier chain , when it grows at 10 %, 15 %, or 20 % per annum , is going to be quite a difficult challenge for the sector for the upstream and for the downstream going forward ,” Popovic added .
Tony Harwood , Montero CEO and president , giving his input at the Junior Indaba .
What does the future hold ?
Technological innovation , as seen with BEVs and energy storage , has been a major factor in the rising demand for battery metals . As such , the demand for lithium , cobalt , lead , vanadium , and other minerals used in producing batteries will also increase . This is good news for African countries rich in minerals used in the production of batteries .
South Africa ’ s ranking in terms of lithium and cobalt deposit is not that high ; however , the country is considered to be one of the front runners with vanadium . Ranamane mentioned South Africa as one of the top vanadium producers in the world , along with China and Russia .
“ If I speak for vanadium , I would definitely say that the opportunity for juniors is there . The price run we ’ ve seen in the vanadium market is a sustaining one ,” explained Mojapelo . He added that the Bushveld Complex where vanadium is found is a consistent and large mineralised structure . “ When you go there you know you are going to find very good deposits ,” Mojapelo said .
From a beneficiation viewpoint , Strydom emphasised that it was important for South Africa to establish where it can leverage within value chain opportunities where a sustainable competitive advantage over extended periods can be gained .
He also suggested collaborating with established international companies that are familiar with the battery metals industry , as opposed to “ reinventing the wheel ”. Added to that , Ranamane said research and development was essential from a technical perspective . “ South Africa is rich in minerals and we need to make sure we benefit from those opportunities ,” Strydom said . b
[ 20 ] MINING MIRROR AUGUST 2018