THE South African government would ask the country’s coal producers to consider indexing the price of coal supplied to Eskom, the state-owned power utility, in an attempt to contain price inflation. “We are not going to coal producers to ask them to sell below the cost of production, but to discuss what is a reasonable… Read More

MID-tier gold producers have been urged to consolidate as there were “far too many”, said the Financial Times citing comments by the Shareholders’ Gold Council (SGC) which counts the New York hedge fund, Paulson & Co, among in its ranks. “The SGC strongly encourages mid-tier companies to pursue nil-premium mergers of equals where the elimination… Read More

EXXARO Resources said it had started production at its R3.3bn Belfast thermal coal mine in South Africa’s Mpumalanga province six months earlier than planned. Production from the mine is earmarked for export. “The mine will be able to produce 2.7 million tonnes (Mt) of good-quality thermal coal a year for at least the next 17… Read More

https://energymx.co.za/2019/09/12/expected-oil-surplus-could-force-new-saudi-oil-minister-to-cut-output-and-boost-prices/ COMPETITION in the oil market is getting tougher, which could lead to an oil surplus and lower prices, the International Energy Agency said in its monthly Oil Market Report on Thursday. In August, three major countries Russia, Nigeria and Iraq, produced 0.6 million barrels of oil per day (mb/d) more than their allocations, while… Read More

MINING industry union, UASA, voiced its support for secret balloting imposed by the Registrar of Labour Relations, saying it would help prevent unnecessary strikes. “The new rules will bring an end to wild strikes without member consultations in various industries where union leaders were out to settle personal goals using the union’s name,” UASA said… Read More

https://energymx.co.za/2019/09/12/eni-sasol-get-green-light-to-explore-controversial-kzn-basins/ TO fast-track Operation Phakisa to unlock the economic potential of South Africa’s oceans, the Department of Mineral Resources has granted environmental authorisation to two companies to conduct exploratory drilling in the Durban and Zululand basins, covering a total offshore area of more than 4,600km2. The go-ahead to the Italian energy group, Eni, and Sasol… Read More

A PROLONGED improvement in the gold price could spell bad news for the diamond sector because diamonds were considered a less effective store of wealth, said Bloomberg News citing the views of Citigroup. It was Citigroup that said earlier this week the gold price could test $2,000 per ounce assuming the US economy continued to… Read More

THE Minerals Council South Africa acknowledged rating agency Moody’s decision not to de-rate South Africa, but said it was critical the country’s government took steps to reform the economy, using the upcoming interim budget statement as a platform. It also heaped praise on a recent document produced by the National Treasury which set down steps… Read More

SOUTH32 had begun early work on development of a 1.5 million ton (Mt) to two million ton a year export-dedicated thermal coal mine, the company said. “Pegasus is a resource that’s highly attractive,” said Mike Fraser, COO of South32 in an interview at the group’s Johannesburg premises. “It’s only fairly small – about 14Mt –… Read More

THE World Gold Council (WGC) has published a set of guidelines for its members intended to encourage improved environmental and ethical standards, said Reuters. The newswire said the guidelines represented the latest effort by the world’s mining sector to respond to pressure by non-governmental organisations, consumers and governments to ensure the gold industry is free… Read More

THE improvement in the rand value of gold has given wings to all South African gold shares, including Sibanye-Stillwater – up 93% on a 12-month basis even though it also produces platinum group metals (PGMs) which have more to do with industrial demand that issues driving gold, such as global trade tensions and safe haven… Read More

LA Mancha Holding has tightened its grip over Golden Star Resources, the Toronto-listed gold producer, increasing its holding to 35% from 30% previously. “We are pleased that La Mancha has expressed its desire to be free to increase its investment in the company,” said Andrew Wray, CEO of Golden Star, and formerly the CEO of La… Read More

BUSINESS rescue practitioners (BRPs) are expected to select the winning bid for Koornfontein coal mine by the end of the this month, according to a report by IHS Markit. A decision on the successful bid for Optimum Coal Mine is expected soon thereafter, said the industry publication citing two sources involved in the process. BRPs… Read More

AFTER more than 18 months of bidding, Seriti Resources has emerged as South32’s chosen one: the company that has the right to buy control of its 28 million tons (Mt) a month in South African coal production of which half is sold to Eskom. More than 50 companies bid for the assets, collectively known as… Read More

ANGLOGOLD Ashanti might be willing to enter into a profit share on future gold sales in order to complete the sale of Mponeng mine and Mine Waste Solutions (MWS), but it would not commit to a firesale, said Bloomberg News. Commenting in a Bloomberg News article on efforts by the gold miner to dispose of… Read More

SOUTH African mines minister, Gwede Mantashe, said “an unforeseen error in a good speech” had led to him promoting a battery metal resource in the country that did not exist and was, instead, the focus of an April Fools joke. BusinessLive today cited Mantashe’s keynote speech at the Paydirt Africa Downunder conference being held in… Read More

SOUTH African power utility, Eskom, did not believe the sale of its coal-fired power stations was “the way to go”, said Bloomberg News citing the comments of a government panel which had recently completed a visit to two of the facilities: Medupi and Kusile. “We have posed a question to Eskom on the sale of… Read More

SIBANYE-Stillwater would unveil restructuring plans for Lonmin in about a month as there were certain of the former firm’s older shafts that “weren’t contributing to the bottom line”, said Neal Froneman, CEO of the Johannesburg-listed group. Froneman was responding to questions following presentation of the firm’s interim results in which it posted a loss largely… Read More

SHUMBA Energy, the UK-listed firm, has signed an agreement with two Chinese companies that could lead to the develop of a $1bn coal-to-liquids plant (CTL) using coal from its Mabesekwa prospect in Botswana. “It’s a very big project but with have with our Chinese partners got a company with strong relationships with Chinese lenders,” said… Read More

SERITI Resources would have to find innovative ways of financing itself as the field for those wanting to lend to fossil fuels had narrowed, the firm’s CFO, Doug Gain, told Bloomberg in an interview. The black-controlled South African consortium led by long-standing coal executive Mike Teke may have to seek funding from equipment suppliers and… Read More