ODERN M INING JUNE 2026 | Vol 21 No 6 For people who are serious about mining
IN THIS ISSUE
Lithium – the rise of Zimbabwe Huawei invests heavily in smart micro grid solutions
Nedbank unpacks dynamics influencing the mining sector Metso Lokotrack LT400J – designed for improved productivity Engineered-to-order plants from Sandvik Rock Processing optimise operations
www.multotec.com
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COMMODITIES OUTLOOK 8 Lithium – the rise of Zimbabwe
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10 Ngqura exposes South Africa’s 10 mt shift from raid to road 12 De Beers Sky Park streamlines diamond sorting, valuation 14 Record gold prices continue to shift demand dynamics
FINANCE 16 Nedbank unpacks dynamics influencing the mining sector
JUNIOR MINING 18 Revitalising the junior and emerging miners sector is essential for SA
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ENERGY 20 Huawei invests heavily in smart micro grid solutions 22 Hitachi Energy ramps up investments to support grid readiness
PUMPS & VALVES 34 Integrated Pump Technology strengthens local readiness as extreme weather reshapes dewatering strategies 36 The value of integrated pumps and mixers for mining operations REGULARS MINING NEWS 4 Deon de Kock appointed to lead Babcock’s operations in Africa Investors commit over R105 billion to Northern Cape economic development Cora Gold $120m financing to fund Sanankoro to production 5 Andrada secures $11 million to accelerate growth Platreef metals basket price exceeds $2 000 per ounce Metallurgical breakthrough positions chrome as revenue driver 6 Steenkampskraal Monazite Mine turns soil on new processing plant
CRUSHING, SCREENING & MILLING 24 Engineered-to-order plants from Sandvik Rock Processing optimise operations 26 Metso Lokotrack LT400J – designed for improved productivity MATERIALS HANDLING 30 Forging ahead into Africa: LIBO Group’s global growth strategy 32 Quarries turn to multifunctional machines to cut costs and boost efficiency
ODERN M INING JUNE 2026 | Vol 21 No 6 For people who are serious about mining
SUPPLY CHAIN MANAGEMENT 40 MMD Group acquires global rights TraxIQ from Anglo American mobile IoT: the cloud solution for mobile machines
COLUMN 38 The drive to achieving an integrated logistics network
ON THE COVER Strengthening the junior and emerging miners sector is crucial to the nation’s future.
IN THIS ISSUE
Lithium – the rise of Zimbabwe Huawei invests heavily in smart micro grid solutions Nedbank unpacks dynamics influencing the mining sector Metso Lokotrack LT400J – designed for improved productivity Engineered-to-order plants from Sandvik Rock Processing optimise operations
JUNE 2026 | www.modernminingmagazine.co.za MODERN MINING 1
Disrupting the global energy market T wo key events have recently taken place that disrupt the global energy market – one, the UAE officially left OPEC and the broader OPEC+ alliance, effective May 1,
Although this pioneering Chinese technology is unlikely to disrupt the global oil market immediately, it is positioned to start changing the market within 3 to 10 years (2029–2036). In this edition The June edition of Modern Mining brings together a range of insightful features and industry perspectives shaping the future of mining and energy across Africa and beyond. Among the highlights is a lithium market outlook by Tom Price of Panmure Liberum, titled Lithium – the Rise of Zimbabwe, which examines Zimbabwe’s emergence as a major player in the global lithium market. In just five years, Zimbabwe has grown its domestic lithium production rate from zero to 240 ktpa (pg 8). Diamond producer De Beers discusses streamlining diamond sorting and valuation at its Sky Park facility (pg 12), while financial services group Nedbank unpacks the key dynamics influencing the mining sector (pg 16).
2026, and two, a Chinese team has pioneered a path to turn carbon dioxide into jet fuel — a breakthrough arriving at a particularly opportune moment as jet fuel prices continue to surge. The UAE ended nearly 60 years of membership to pursue independent production goals, as it seeks to maximise its oil production capacity (up from 3 million to 4.8 million barrels/ day) without being constrained by OPEC+ production quotas. The UAE holds significant spare capacity, previously acting as a key swing producer in the Middle East. Based on projected production rates, the UAE's oil reserves are expected to last for over 100 years. However, despite having substantial
reserves, the UAE is pursuing a strategy beyond oil. Its diversification strategy aims for non-oil sectors to contribute over 70% of GDP by investing in technology, renewable energy, tourism, and manufacturing. Key strategies include developing AI, enhancing infrastructure, and
On the energy front, Chinese multinational, Huawei Digital Power, speaks to Modern Mining about its significant investments in smart microgrid solutions (pg 20). In the
Based on projected production rates, the UAE's oil reserves are expected to last for over 100 years. However, despite having substantial reserves, the UAE is pursuing a strategy beyond oil.
fostering a knowledge- based economy through sovereign wealth funds.
Crushing & Screening feature, Sandvik Rock Processing Solutions discusses its engineered-
Nelendhre Moodley.
So, what is the impact of this unprecedented move on the global economy? Essentially, it
to-order plants designed to optimise African crushing operations (pg 24), while Pilot Crushtec spotlights the Metso Lokotrack LT400J, engineered to enhance productivity and ease of use (pg -26-). The Materials Handling feature includes LIBO Group outlining its growth strategy to expand its footprint across the African continent (pg 30) with Astec Industries highlighting its multifunctional machines that help to reduce costs and improve operational efficiency (pg 32). Our Pumps and Valves feature highlights Integrated Pump Technology strengthening local readiness as extreme weather conditions continue to reshape dewatering strategies (pg 34) with ITT Goulds Pumps discussing the value of integrated pumps and mixers for mining operations (pg 36). Also featured is a thought-provoking column by Jesper Jonsson of RSK Group, titled We must find ways to de-escalate conflicts and work with artisanal miners (pg 38).
Editor: Nelendhre Moodley e-mail: mining@crown.co.za Business Development Manager: Angela Devenish e-mail: angelad@crown.co.za Design & Layout: Ano Shumba Publisher: Karen Grant
weakens the OPEC’s market control, impacts oil prices, and reflects a shift towards energy diversification amid geopolitical tensions. The move is likely to drive a more competitive, decentralised market with increased output. While this could offer relief to oil-importing economies, it reduces OPEC's, especially Saudi Arabia's, influence and introduces market volatility. Secondly, a Chinese research team from the Shanghai Advanced Research Institute of the Chinese Academy of Sciences (CAS) has successfully pioneered an industrial pathway to convert carbon dioxide (CO₂) directly into high- value aviation fuel, shifting the technology from laboratory testing to large-scale production. China recently inaugurated two fully operational power generators that run on carbon dioxide. Does this mean that, in the not-too distant future, we can kick the fossil fuel habit?
Deputy Publisher: Wilhelm du Plessis Circulation: Brenda Grossmann and Shaun Smith Published monthly by: Crown Publications (Pty) Ltd P O Box 140, Bedfordview, 2008 Tel: (+27 11) 622-4770 Fax: (+27 11) 615-6108 e-mail: mining@crown.co.za www.modernminingmagazine.co.za
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The views expressed in this publication are not necessarily those of the editor or the publisher.
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2 MODERN MINING www.modernminingmagazine.co.za | JUNE 2026
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MINING NEWS
Cora Gold $120m financing to fund Sanankoro to production
Deon de Kock appointed to lead Babcock’s operations in Africa
and South Asia at FLSmidth, and Vice President for South Europe, North Africa and the Middle East at Sandvik. n
Effective January 2026, Deon de Kock has been appointed Chief Executive – Africa at Babcock. An accomplished global business leader with more than 30 years of executive experience across industries and continents, De Kock is tasked with providing strategic direction and operational focus to support the growth of the business across the region. De Kock takes over from Roger O’Callaghan after more than two decades of leading Babcock Africa, effective January 2026. De Kock brings a wealth of global executive experience across the mining, engineering, industrial and energy sectors. He has previously held senior roles in large organisations and major multinationals, including President for Sub-Saharan Africa, the Middle East
Cora Gold, the West African focused gold company, has signed a binding term sheet for a US$120 million gold stream with Eagle Eye Asset Holdings to support development of the Sanankoro Gold Project in south Mali. Highlights of 2025 Definitive Feasibility development CAPEX of US$124 million. • Competitive opex – AISC of US$1,478/ oz driven by low strip ratios, soft ore and simple processing. Study ($2 750/oz gold price) • Low capital intensity – initial • Compelling economics – post-tax NPV8 of US$221 million and post-tax IRR of 65%. • Production – 64koz average annual gold production for the first five years. • At US$3,250/oz gold price the post-tax NPV8 is US$319m, post-tax IRR of 88% and AISC of US$1,568/oz. Bert Monro, Chief Executive Officer of Cora, commented, “Our September 2025 DFS, demonstrated the compelling economics of the Sanankoro Project, and we are now focused on advancing the Project into construction and ultimately delivering first gold. In parallel, we remain highly encouraged by the broader resource and greenfield upside across the project area and will continue to pursue a dual-track strategy of advancing development while systematically growing the resource base to support long-term production.”
Deon de Kock appointed Chief Executive – Africa at Babcock.
Investors commit over R105 billion to Northern Cape economic development
The Northern Cape province has announced that over R105 billion in pledges have been made by investors.
The mining industry investments included: • A R17 billion commitment by Vedanta Zinc International for expansion of its Gamsberg mine, which will make it the world’s largest zinc mine, as well as for the development of a smelter in the province. • An R11.2 billion commitment by Anglo American, which will include expansion of its Kumba Iron Ore operations in the province. • A R2.8 billion investment by Northern Cape Protech & Agri Revolution in mining, beneficiation and agriculture. • A R1.4 billion commitment by South32 for mining and beneficiation. n
The Northern Cape province has announced that over R105 billion in pledges have been made by investors in new and expanded mining, energy and agriculture projects in the Northern Cape, with an expected 19 800 new jobs to be created as a result. The investment accords were signed at the inaugural Northern Cape Investment and Jobs Conference in Kimberley this week. Northern Cape Premier Dr Zamani Saul said the new investor commitments took the province a long way toward achieving its target of growing the Northern Cape’s GDP from R164 billion to R200 billion and creating at least 60 000 new and sustainable jobs by 2030.
Cora Gold secures $120m to fund Sanankoro project development.
4 MODERN MINING www.modernminingmagazine.co.za | JUNE 2026
Platreef metals basket price exceeds $2 000 per ounce
Andrada secures $11 million to accelerate growth AIM-listed Andrada Mining, a tin producer with a portfolio of critical minerals mining and exploration assets in Namibia, has successfully completed a private placement the company to scale up operations and advance various growth initiatives, whilst deriving maximum benefit from the high commodity price environment. Importantly, this fundraise completes the current equity financial requirements for the Group. This funding, along with current
with strategic investors. The company has raised $11 million (£8.1 million) before expenses through a placing of 226 337 448 shares in the company at a price of 3.6 pence per share. Anthony Viljoen, Chief Executive Officer, commented: “The completion of this placement with some key strategic investors, comes at a pivotal juncture for Andrada. The funding allows
tin prices and production provides the pathway for the company to complete its expansion programme at Uis, with the exploration programmes at Lithium Ridge and Brandberg West already funded by strategic partners SQM and BWCAM.” n
TSX-listed Ivanhoe Mines Executive Co-Chair Robert Friedland and Chief Executive Officer, Marna Cloete, have announced that a project ceremony was held at the Platreef Mine, in Limpopo Province, South Africa, marking the achievement of three major development milestones. The milestones include the completion of construction of the 4-million-tonne-per-annum (Mtpa) Shaft #3; the breaking of ground for the Phase 2 concentrator site; and the commencement of widening of Shaft #2. The project milestones are a major advancement for the Phase 2 expansion and the future Phase 3 expansion. The on-site ceremony was attended by Ivanhoe Mines’ CEO Marna Cloete, senior management from Ivanhoe Mines and Ivanplats, as well as representatives from Ivanplats’ shareholders Japan Organisation for Metals and Energy Security (JOGMEC), ITOCHU Corporation and the broad-based black equity empowerment (B-BBEE) group. Ivanhoe Mines Founder and Co-Chairman Robert Friedland commented: “We are ramping up the mine at a time when metal prices are rising. Scarcity is real and the demand is relentless. Platinum, palladium, rhodium, copper and nickel are identified by countries all around the globe as critical minerals and therefore strategic to agenda of many of the world’s developed and developing economies.” n
Andrada Mining has raised $11 million to accelerate growth.
Metallurgical breakthrough positions chrome as revenue driver
the high-grade nature of the Bengwenyama UG2 Mineral Resource but also suggest that chromite concentrate recoveries of more than double initial estimates are achievable. “Metallurgical test work has once again confirmed the grade and robust nature of the UG2 Mineral Resource, but the doubling of chrome recoveries is potentially company-changing; it elevates chrome from a by-product to a parallel output,” said Southern Palladium CEO Johan Odendaal. On a 3E basis, the metallurgical sample indicates an average combined platinum, palladium and gold grade of 7.35 g/t and a prill split of 49.9% platinum, 48.6% palladium and 1.5% gold with a Cr₂O₃ grade of 29.71%. n
Results from metallurgical test work at the Bengwenyama Platinum Group Metals (PGM) project in South Africa’s Limpopo Province indicate that up to a fifth of Southern Palladium’s future revenues could come from chrome. Southern Palladium continues to make strong progress at Bengwenyama, advancing Definitive Feasibility Study (DFS) workstreams and early mine development planning at the Bengwenyama PGM project. Located on the Eastern Limb of South Africa’s Bushveld Complex, the Bengwenyama PGM project is one of the world’s largest remaining undeveloped PGM resources. Southern Palladium reported that the results from its latest metallurgical test work not only confirm
Up to a fifth of Southern Palladium’s future revenues could come from chrome.
JUNE 2026 | www.modernminingmagazine.co.za MODERN MINING 5
MINING NEWS
Steenkampskraal Monazite Mine (SMM) recently held a ceremonial soil-turning event to mark the official start of construction on its new monazite processing plant. The milestone advances the mine’s phased development plan and positions South Africa to become a producer of high-grade monazite concentrate, a critical feedstock for rare earth elements essential to renewable energy, electronics, medical and defense technologies amongst numerous others. Steenkampskraal Monazite Mine turns soil on new processing plant
T he announcement builds on and, for the first time in more than 60 years, produced monazite concentrate from its metallurgical circuit. “The initial product has demonstrated approximately 50% total rare earth oxide (TREO) content, confirming the high-grade nature of the deposit. In parallel, the mine’s hydrometallurgical laboratory circuit is currently undergoing optimisation. Early results have been encouraging, with production of mixed rare earth carbonate (MREC) and cracked thorium anticipated in the near term,” said Graham Soden, CEO of SMM. recent operational achievements at the site. SMM has successfully commissioned its on-site laboratory The monazite processing plant facility, located close to the existing underground decline shaft exit, will receive monazite-rich ore directly via a purpose-built conveyor belt system. Ore will be transported from underground workings to the surface plant
approximately 13 400 tonnes per annum of monazite concentrate containing more than 50% total rare earth oxides (TREO). During the initial ramp-up period, production will start at around 6 600 tonnes per annum,
for initial concentration using a proven gravity separation and flotation technology. The monazite processing plant
has been designed to achieve an annual steady-state output of
6 MODERN MINING www.modernminingmagazine.co.za | JUNE 2026
which will be undertaken within South Africa to maximise local beneficiation and value retention,” Soden said. SMM Executive Chairperson Prof Enock Mathebula added: “This phase represents the practical realisation of our strategy to re-establish Steenkampskraal as a globally significant source of rare earth materials. “We are leveraging proven metallurgical processes, supported by modern technology and strong compliance standards, to ensure a sustainable and efficient operation that benefits both the national economy and local communities. “The soil-turning event is more than a construction milestone, it is the foundation of Steenkampskraal’s commercial future. By establishing dedicated ore transport and processing infrastructure, we are creating South Africa’s first dedicated monazite concentration facility. This concentrate represents our initial revenue-generating product and will serve as feedstock for subsequent value-adding stages, including mixed rare earth carbonate and thorium production. “The soil-turning demonstrates our commitment to rapid, responsible development. With funding secured and construction now underway, we are on track to establish a revenue-generating
increasing to full capacity towards the end of the first year, Soden said. “This phase will use proven gravity separation and flotation technology, optimised through modern refinements and pilot testing by the Saskatchewan Research Council and Mintek. The process flow draws on the successful methods used during Anglo American’s historic operations at Steenkampskraal between 1952 and 1963. It has been adapted for modern environmental standards and incorporates a multi-gravity separation circuit, currently under evaluation for enhanced recovery efficiency. “The processing plant will receive feedstock from both historic surface stockpiles and underground ore, minimising initial capital expenditure and operational risk. This approach provides early revenue generation while refurbishment of underground infrastructure continues in parallel. The design also includes a front-end comminution and milling circuit, ensuring consistent feed quality to the concentrator and allowing for optimal grade control. “Phase 1 forms the foundation for subsequent processing stages, including hydrometallurgical treatment, oxide separation and product manufacturing, all of
process before the end of 2026. This will not only generate early cash flow but also create jobs, support local communities and contribute to South Africa’s critical minerals strategy. Offtake discussions for the concentrate are already advanced with international partners. “The Steenkampskraal deposit is recognised as one of the highest- grade rare earth and thorium resources globally, with a NI 43-101 compliant current resource of 665,000 tonnes at 14.5% TREO and significant co-products including thorium (2.14%). The spade-ready project benefits from fully developed underground and surface infrastructure, full regulatory licensing and an experienced mining partner, Bora Mining Investments (BMI),” Prof Mathebula added. “SMM remains committed to sustainable practices, including environmental rehabilitation, community skills development and compliance with all nuclear and environmental regulations,” he concluded. n
Steenkampskraal Monazite Mine (SMM) Steenkampskraal Monazite Mine, located in the Western Cape, is a spade-ready rare earth and thorium project owned by Steenkampskraal Holdings in partnership with Bora Mining Investments. With one of the world’s highest-grade monazite deposits, SMM is advancing a phased development plan to produce monazite concentrate, mixed rare earth carbonates, thorium, and ultimately separated rare earth oxides. The project is fully permitted and poised to play a strategic role in global critical minerals supply chains.
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JUNE 2026 | www.modernminingmagazine.co.za MODERN MINING 7
LITHIUM OUTLOOK
Lithium – the rise of Zimbabwe By Tom Price Managing Director, Research Analyst, Resources at Panmure Liberum
The long-standing dominance of Chile and Australia – as the collective source of global lithium supply, used mainly in rechargeable batteries, including those of electric vehicles (EVs) – is being challenged by Zimbabwe. In just five years, Zimbabwe has grown its domestic lithium production rate from zero to 240ktpa, now almost 20% of global lithium supply.
Lithium supply is used mainly in rechargeable batteries, including those of electric vehicles.
Key producers & projects Key local lithium operations include 90ktpa Bikita (bought 2022, China-owned Sinomine); 50ktpa Arcadia (Zhejiang Huayou Cobalt); 25ktpa Sabi Star Mine (Chengxin Lithium); 10ktpa Zvishavane (Zheli Lithium). Key projects include >30ktpa Sandawana (state-owned Kuvimba Mining House; possibly from 2027) and >12ktpa Zulu lithium-tantalum (Premier African Minerals). Resource nationalism Note, most lithium assets of Zimbabwe are Chinese-owned. Only the artisanal miners manage the country’s modest residual lithium-producing capability. For almost a decade, China’s various entities have been developing Zimbabwe’s lithium resources, to send the output home for refinement and use, mainly in its ballooning rechargeable batteries industry. To mitigate this loss of control over local mineral resources, the government of Zimbabwe banned the export of lithium ore in 2022. In January this year, the government decided to tighten lithium exports further, with a ban on lithium concentrate exports (carbonate, hydroxide, etc.) too. The objective of this ban is probably the same as Indonesia’s 2009 Mining Law, another country dealing with China’s relentless development of local mineral resources.
Restricting the export of unprocessed minerals effectively forces foreign players to invest in local processing and upgrading capacity – if they wish to continue receiving supply. This investment, in turn, allows the local economy to capture more of the commodity’s ‘value-in-use’ – the future cash flows arising from its production and trade. More generally, investment in the local industrial base creates local employment, boosts the local capital flow, etc. The policy has been spectacularly successful in developing Indonesia’s mining industry over the last 10-15 years – which has made it the world’s producer and exporter of thermal coal and nickel. Zimbabwe’s government is determined to achieve a similar outcome, starting with its China-dominated lithium mining industry. Price action, explained What price is paid, for Zimbabwe’s lithium exports? Over three-quarters of the global 1.3Mtpa lithium market is based on contract pricing (6-12 month-basis). These, in turn, are based on daily-reported prices, established by a China-centred spot trade. And over the last couple of quarters, spot prices of lithium’s key products – carbonate/hydroxide – doubled within 4Q25 to above US$20k/t, to trade in a US$20-25k/t-range year-to-date. Spot terms are a reasonable guide to the prices received for Zimbabwe’s lithium exports.
8 MODERN MINING www.modernminingmagazine.co.za | JUNE 2026
also slowed in 2025 (+3%YoY to 1,288kt vs. >>10%/yr, 2021-24), it was sufficient to offset supply by 2H25, buoying product prices by 4Q25, into 2026. 3. Stocking strategies: While there are no reported market inventories for lithium - like other base metals, steel, iron ore, coals, etc.) – we do track the monthly difference between supply and demand as a general proxy. Our analysis suggests that government-prompted strategic stockpiling is in play, acting as a quasi-demand driver. Lithium’s supply-demand outlook For 2026, we forecast a 2%YoY lift in global mine supply, to 1,346kt (420kt, brines; 926kt, hard-rock), well below the 15-45%/year growth rates of global lithium miners’ attempts to meet outsized demand growth in EV and energy storage during 2020-23. Note, the centre of global mine supply has shifted marginally in recent years – as the industry adjusted to 2023’s price collapse – from Australia-Chile- China to Zimbabwe-Argentina. Global lithium demand for 2026 is set to lift 4%YoY to 1,375kt. Of this total, EV demand is 1,083kt (79% of total Li demand), up 6%YoY; total rechargeable battery demand growth (incl. EVs) is forecast to lift 7%YoY to 1,259kt. Energy storage, lithium’s new demand driver, is set to lift 20%YoY to 73kt. Other lithium end-uses include consumer goods’ batteries, glass, ceramics, greases, polymers, etc. About electric vehicles Again, EV batteries demand dominated lithium’s demand outlook. Here, we focus on the latest EV sales data for guidance on risks to total lithium demand growth. Global EV sales for 1Q26 of 4.0m is flat year-on-year – including China’s 20%YoY fall to 1.9m (hit by new sales tax), EU’s +27%YoY to 1.2m, North America’s +27%YoY to 0.32m, RoW’s +76% to 0.6m. Of global EV sales, 65% BEVs vs. 35% PHEVs. For global 2026 global EV sales, we forecast 22.5 million EV passenger vehicle sales (+9%YoY), contributing 65% to all 2026 EV sales of 34.7 million (+6%YoY; incl. BEV, PHEV, FCEV; cars, buses, trucks, vans). In turn, total EV sales are set to represent 36% of 2026’s total global vehicle sales (95.7m, +0.2%YoY). Price outlook Our modelling of lithium’s short-term supply-demand condition flags a 30kt deficit for this year – making us lithium price bulls for 2026. Specifically, we expect the prices to at least hold above the US$20k/t (carbonate/hydroxide). But we are not long-term lithium price bulls. Our long-term lithium price forecast, active from 2030, is just $16k/t (2025$; for carbonate/hydroxide). Why do we expect prices to eventually fall from spot levels? Because spot prices are far above the industry’s current marginal cost of production of US$10k/t. We should therefore expect a lift in the global lithium supply rate – as miners worldwide exploit the industry’s current, substantial economic rent. Eventually, this supply-side response will drag on lithium’s medium- term prices, assuming its corresponding demand growth rate remains broadly intact. Of course, this supply-side response to high lithium prices is already happening – in Zimbabwe. China is struggling to grow low- cost lithium supply at home, and in its two key sources of imports – Chile and Australia. China’s massive-scale investment in the lithium industry of Zimbabwe since 2020 – the world’s newest lithium mining province – reflects its determination to bring down the cost of this critical battery input. n
3 x price rally drivers 1. Mine supply cuts: We regard mine output curbs of 2023-24 as critical in creating the conditions for lithium’s 4Q25 price rally: >200ktpa of supply was cut, 12-15% of the global total. These occurred mostly in Australia, Chile, China – partly displaced by lower cost supply in Zimbabwe. This structural shift saw both the industry’s capex cycle and total supply growth stall in 2025 (i.e. flat year-on-year, at 1,301kt). 2. Demand recovery/stability: While global lithium demand
JUNE 2026 | www.modernminingmagazine.co.za MODERN MINING 9
MANGANESE
Heavy road haulage continues to absorb mineral volumes where logistics constraints limit smoother movement by rail.
Ngqura exposes South Africa’s 10 mt shift from raid to road About 10 million tonnes of South Africa’s manganese exports still moved by road in 2025, even as the country shipped a record 26.2 million tonnes of the ore. EBC Financial Group (EBC) highlights that mismatch is the reason the planned 16-million-metric-tonne Ngqura manganese terminal in the Eastern Cape is more than a port project. For a country that holds about 70% of global manganese resources, moving close to two-fifths of exports by truck suggests the binding constraint is no longer ore demand. It is the freight system needed to move ore from inland mines to ships at scale.
N gqura’s planned capacity equals about 61% of South Africa’s manganese exports last year. That scale is large enough to change how a meaningful share of ore reaches export markets. EBC notes that the terminal raises export capacity only if more ore reaches the berth by rail. A port facility can load cargo, but it cannot solve an inland bottleneck on its own. David Precious, Senior Markets Analyst at EBC Financial Group, said, “South Africa’s constraint is no longer ore availability or export demand. It is the cost and reliability of moving bulk minerals from mine to port. When a country ships record manganese volumes yet still sends about 10 million tonnes to the coast by road, that points to a freight system that is absorbing demand rather than scaling with it.”
Coal and iron ore already show the cost of weaker logistics Coal exports from Richards Bay Coal Terminal rose 11% to 57.66 million metric tonnes in 2025, the highest level in four years, as rail performance improved. That was still far below the 76 million tonnes exported in 2017. This comparison shows that better rail performance can lift export volumes, but South Africa is still operating well below the capacity it once moved through the system. Kumba Iron Ore reported that rail performance improved to 84% of contracted volumes in 2025, helping raise sales and reduce on-mine stockpiles to 5.7 million tonnes from 6.9 million tonnes a year earlier. That means more ore were moved out of storage and into the export chain as logistics improved. The reverse has also been expensive as Transnet’s
David Precious, Senior Markets Analyst, EBC Financial Group.
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Bulk export handling at port level illustrates how terminal operations shape mineral flow from mine to ship.
Freight rail capacity remains a critical part of easing logistics bottlenecks across South Africa’s mineral export chain.
underperformance has already cut into coal and iron ore exports, cost mineral exporters billions of rand in lost revenue, and forced some producers to curb output. Mining contributed 5.8% of South Africa’s nominal gross domestic product (GDP) in 2025, equal to about R439.2 billion. Mineral ores and related products accounted for about 52% of merchandise export value, while mining contributed more than R100 billion
reached 23.4 million tonnes in 2025, and about 9 million tonnes moved by truck. That is equivalent to more than 826 trucks a day and carries a cost premium of about 40% compared with rail. The analytical point is straightforward. South Africa is still moving export volume, but too much of that volume is using a higher-cost road route because rail capacity has not been sufficient. The same imbalance is now visible in manganese.
to the national fiscus through taxes, royalties and value-added tax (VAT). Those figures explain why freight underperformance is not only a mining-sector problem. It affects export receipts, tax revenue, and the reliability with which cargo reaches overseas buyers. Rail reform has started: The transport mix is the next scorecard Eleven private train operators have
Transnet plans to invest ZAR 127 billion over five years to modernise rail lines and upgrade ports, after allocating R24 billion to infrastructure in the previous financial year and budgeting R25 billion for the current year. EBC sees that programme
Mineral ores and related products accounted for about 52% of merchandise export value, while mining contributed more than R100 billion to the national fiscus through taxes, royalties and value-added tax (VAT).
as a practical scorecard rather than a backdrop detail. The most useful signs of progress are concrete:
higher rail freight volumes, stronger port throughput, and a lower share of manganese ore moving by truck. Those are the numbers that would show whether South Africa is improving the full export route from mine to vessel rather than adding capacity at
advanced to the next stage across 41 routes and six corridors on South Africa’s state-owned freight rail network. The government expects those
only one point along it. “Ngqura only becomes economically meaningful if it changes the transport mix” Precious added. “If rail access reform, port upgrades, and capital spending start lifting freight volumes and reducing truck haulage, South Africa can convert mineral strength into export earnings more efficiently. If that shift does not happen, the country risks adding terminal capacity at the coast whilst the inland bottleneck continues to cap volumes and raise costs.” n
operators to add 20 million tonnes of freight capacity a year from the 2026/27 financial year and support a national target of moving 250 million tonnes a year by rail by 2029. EBC says that reform matters because it is meant to increase train movements on existing lines, not simply add another policy commitment to a system still rebuilding lost capacity. Chrome shows why the transport mix is the right measure to watch, with industry data indicating chrome ore exports
JUNE 2026 | www.modernminingmagazine.co.za MODERN MINING 11
DIAMONDS
De Beers Sky Park streamlines diamond sorting, valuation
Since its opening in March 2023, the Sky Park facility of De Beers Sightholder Sales South Africa (DBSSSA) has honed the efficiency, safety and sustainability of its rough diamond Sorting, Valuation and Sales.
An employee analysing large rough diamonds with a microscope and other technology in GSS, Gaborone, Botswana.
L ocated conveniently close to OR Tambo production and the sales office for supplying rough diamonds to South Africa-based diamond cutting and polishing customers. The operations combine proprietary technology, specialist expertise and rigorous controls to move rough diamonds securely from production through to global markets. According to Blanche Louw, Senior Operations Manager at DBSSSA, the building’s design is underpinned by a clear production logic. This allows each stage of the diamond’s journey to take place in a controlled, access-restricted environment – with reconciliation checkpoints built into every part of the process. Louw is responsible for overseeing the entire path of diamonds through the facility. “Our operation is meticulously sequenced international airport east of Johannesburg, the facility serves as the central processing hub for De Beers’ South African rough diamond
– moving diamonds through the cleaning zones and immediately into valuation and technical sorting areas,” she says. “The layout of the building is specifically designed to bring optimal efficiencies into our processes.” Activities at Sky Park assess the four key elements of a diamond’s value: carat weight reflecting the mass or size of the diamond; clarity from the presence or absence of internal inclusions and external blemishes; the colour of the diamond; and the cut which assesses the cutting opportunities presented by the diamond’s shape. Diamonds arrive at Sky Park under controlled custody, typically still carrying residue from the mining process, and are weighed and registered. The first stop is the Central Cleaning Plant (CCP) where diamonds are prepared to meet stringent standards for valuation and export. Louw notes De Beers has focused on minimising safety risks while maintaining effectiveness in its diamond cleaning activities.
Blanche Louw, Senior Operations Manager at De Beers Sightholder Sales South Africa.
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each one designed to reflect customers’ specific manufacturing requirements or downstream market needs. These boxes of rough diamonds are presented to customers at the ten ‘Sight’ sales events that De Beers holds each year, with South African customers viewing their allocated diamonds at the Sky Park facility itself in dedicated viewing rooms on the premises. Traceability, security Provenance has become an increasing area of focus in the diamond industry, as retailers and end-consumers alike seek transparency about a diamond’s source and journey to market. Sky Park has built traceability into the heart of its operation. All rough diamonds of one carat and above are scanned on arrival, creating a unique digital record of each diamond’s shape and characteristics - very much like a unique fingerprint. At point of sale, each diamond is rescanned and the system cross-references the rescan against the intake record to confirm origin. The digital records are captured on the blockchain-backed diamond traceability platform, Tracr, developed by De Beers to enable a diamond’s provenance to be shared downstream. The Tracr platform continues to scale at pace with more than five million rough diamonds having now been registered. Finally, Skypark hosts a Diamond Academy that ensures all employees follow a structured development pathway as they progress through the various levels of the production pipeline. This academy provides a strong foundation for employees to grow within their areas of expertise, supported by a range of internal programmes designed to build futureready skills. The Academy also runs a 12 month learnership programme targeting young people from communities close to operations and combines seven months of classroom-based diamond sorting and industry education with five months of on-the-floor learning. Louw concludes De Beers’ groupwide strategy is to increase female representation across technical and leadership roles through recruitment, apprenticeships, bursaries, leadership and mentorship programmes plus inclusive infrastructure (gendersensitive PPE and upgraded facilities as well as flexible work). n
A guest admires sparkling diamonds on display at Sky Park.
Safety with sustainability “With our sharp focus on health and safety we have sought and succeeded in finding alternative cleaning methods to the hydrofluoric acid approach that has traditionally been used, enabling us to deliver another significant step forward,” she says. Developing the new approach required multiple trial iterations to achieve the cleaning standard required by the specific mineralogy of South African production. This cleaning innovation has drawn considerable interest, with teams from other De Beers operations also looking at this pioneering breakthrough. Another advance has been a concerted move towards renewable energy – enhancing the facility’s sustainability credentials and reducing energy costs. A 360-kilowatt solar system became fully operational last year, comprising more than 1,200 solar panels and 575 kilowatt-hours of battery storage. This contributes to the facility’s five-star Green Star building rating. Assessing value Once diamonds have been cleaned, their carat weight is measured through one of two processing streams, either through sieving or sizing or a combination of both using proprietary technology to support efficiency. De Beers combines a wealth of human expertise and leading proprietary sorting technologies to deliver an effective diamond valuation process. Sky Park’s Technical Sorting (‘Techsort’) area sees automated sorting complement experienced sorting experts to support a
fast, repeatable and objective assessment for the smaller diamonds, which tend to be higher in volume but lower in value. Meanwhile, hand sorting by human experts remains essential for nuanced decisions on shape, clarity and colour for the larger diamonds, which tend to be lower volume but higher value products. Sky Park was intentionally designed to enable this combination of hand and machine sorting areas, supporting an optimised workflow. Demonstrating the attention to detail, De Beers’ diamond valuation processes see diamonds end up being sorted into one of more than 10 000 categories, each with its own accompanying value in De Beers’ global pricebook. De Beers’ combination of human and automated expertise accordingly delivers reliable and consistent pricing of each diamond parcel that is presented for sale. Consistency An important defining feature of De Beers’ Sightholder sales model is consistency. This underpins the ‘Intention to Offer’ arrangement under which customers are offered specific categories of diamonds that reflect their business needs at regular sales events. To support scale and consistency with diamond supply, which is by its nature unpredictable in terms of the variety of diamond types that come out of a mine, De Beers uses a process called ‘aggregation’ - blending together “likeforlike” categories of diamonds - to smooth out variability in production from different mines. This, in turn, enables the business to create consistent ‘boxes’, with
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GOLD
Record gold prices continue to shift demand dynamics The World Gold Council’s Q1 2026 Gold Demand Trends report reveals that total quarterly gold demand (including OTC) reached 1 231 t, a 2% increase year-on-year. While volumes increased modestly, the value of demand surged to a record US$193 bn, up 74% year-on-year.
Louise Street, Senior Markets Analyst from the World Gold Council.
T he World Gold Council’s Q1 2026 Gold Demand Trends report reveals that total quarterly gold demand (including OTC) reached 1 231 t, a 2% increase year-on-year. While volumes increased modestly, the value of demand surged to a record US$193 bn, up 74% year-on-year. Around the world, retail investors were drawn to gold’s price momentum and safe-haven appeal, driving bar and coin demand up 42% year-on-year to 474 t. Demand in China surged 67% year-on-year to a record 207 t, considerably higher than the previous quarterly record of 155t in Q2’13. Other Eastern markets, including India, South Korea and Japan, also saw an increase in bar and coin buying, contributing to the ongoing structural shift in gold demand. Bar and coin demand was also supported by strong growth in the US and Europe, up 14% and 50% respectively. Physically-backed gold ETF demand remained positive in Q1: holdings increased by 62 t, largely supported by continued strength across Asian-listed funds, which added 84 t over the quarter. Sizeable outflows in March, mostly from US listed funds, tempered what had been a very strong start to the year. In contrast, jewellery demand declined sharply, falling 23% year-on-year to 300 t in reaction to the higher prices seen throughout the quarter. Demand weakened across all major markets, with notable declines in China (-32%), India (-19%) and the Middle East (-23%). However, in value terms, jewellery demand increased, indicating continued consumer willingness to spend on gold despite record prices. Market analysis suggests that some jewellery consumption has moved into bar and coin demand, particularly in markets like China and India where jewellery can act as a proxy investment.
Central banks continued to support overall demand, adding 244 t to global reserves in the first quarter. Purchases exceeded both the previous quarter and the five-year average despite an uptick in selling by a small number of official sector institutions including the Central Bank of the Republic of Türkiye, the Central Bank of the Russian Federation and The State Oil Fund of the Republic of Azerbaijan. Market activity throughout the quarter underscored gold’s unique role as indispensable reserve asset, accessible during times of extreme market turbulence. Total gold supply increased by 2% year-on-year to 1 231 t. Mine production reached a new first-quarter record, while recycling increased modestly by 5% despite elevated prices, suggesting a relatively muted supply response and tighter overall market conditions. Louise Street, Senior Markets Analyst from the World Gold Council, commented: “Gold’s volatility has markedly increased in 2026, with prices peaking above US$5 400 /oz in January before a significant but contained correction. The combination of price momentum and heightened geopolitical risk propelled investment demand, most notably in Asia, as investors sought security in physical gold. Alongside this, continued central bank buying offset tactical selling. “Looking ahead, the geopolitical risk premium should continue to support investment demand, though higher-for- longer interest rates may present headwinds, especially in Western markets. Jewellery spending is expected to remain resilient even as high prices weigh on volumes. On the supply side, mine production is expected to grow modestly, although potential energy shortages could temper that outlook.” n
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Mobile and crawler cranes
FINANCE
Gold has breached the US$5 300 /oz level but has retracted marginally lower.
Nedbank unpacks dynamics influencing the mining sector
2026 is being defined by intense geopolitical tensions, while the mining industry is simultaneously navigating a “polycrisis” of operational complexity and surging demand for critical minerals. To unpack these dynamics, Modern Mining spoke with Nivaash Singh, Head of Mining & Critical Minerals, in a Q&A exploring investment appetite, project bankability and how lenders are assessing South African mining risk. What are the key global factors influencing mining and metals globally and on the African continent? What does Nedbank see as key themes in 2026? How can industry prepare and take advantage of the positive aspects while mitigating the challenges? Nedbank sees the following key themes in 2026:
• The energy transition and demand for critical minerals has ratcheted up a few gears. We are comfortably at a point of no return. • Geopolitics and resource nationalism – western countries are trying to displace China’s hold over African critical minerals. • ESG & sustainability – developiong a social license to operate will determine which operators will be successful. • Infrastructure, energy and operating cost structures – will impact the successful exploitation of bulk commodities. • Availability of capital and the commodity cycle – timing is everything as the investment cycle should ideally precede the commodity super cycle.
• Rising geopolitical risk. • Social license to operate. • Higher commodity prices likely to drive up operating costs. • Understanding the capital stack when raising finance for mine development. • The dangers of M&A activity during a commodity bull market. Miners should always plan, engage early with host governments, and build trust with local communities to develop a healthy social license to operate and to achieve long term success. Maintaining adequate cost control especially in a commodity bull market will ensure long term sustainability and
Nivaash Singh, Head of Mining & Critical Minerals at Nedbank.
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spending capital prudently and avoiding unnecessary M&A during a commodity super cycle will ensure success. How are these factors influencing investment appetite and how are investors and miners aligning? Investors and miners are almost always misaligned. Investors who do not understand mining should not invest in mining stocks. Short-term investors should stick to tech stocks and other industries where short-term gains may be easily monetised. Mining investors must be prepared to take a long-term view on their stocks and develop a longer-term view on the sector. If investors approach mining investments with these lenses, it will enhance alignment with the sector. Is the push from BRICS countries to trade in their own currencies in any way influencing mining trade deals yet? Mining companies trade in a global benchmark industry producing commodities that attract a USD price. Unless there are captive arrangements or vertically integrated operations whereby commodities are being produced and sold to a BRICS country under a bilateral arrangement, most miners will deliver into a global market earning hard currency revenues. Which countries in Africa are garnering the most FDI for mining projects? How are lenders reading South African mining risk. • Cote d’Ivoire • Tanzania • Zambia • Botswana • Namibia • DRC Each country above has a unique mining investment attractiveness. We are seeing a steady rise in capital flows into these jurisdictions for gold, copper, cobalt, uranium and rare earth minerals. South African mining risk remains low but given unclear regulatory frameworks, a lack of a mining cadastre and poor turnaround times by the mining regulator has severely dented capital flows into SA which has resulted in a drying up of mining exploration activity for the next commodity super cycle. Are you able to share insight into where South Africa stands as a country in attracting foreign investment for local mining projects? South Africa is not attracting its fair share of FDI for mining projects as much as it should. Mining project developers find it incredibly challenging to work with poor regulations, unclear investment frameworks, a lack of transparency and long response times from the regulator. These factors frustrate project developers to the extent that they migrate into neighbouring states such as Botswana, Namibia, Zambia and the DRC in search for exploration permits. Junior miners continue to face challenges in attracting project investment. Are there any innovative ways to access funding that have become available? There is no mining project in the world, junior or not, that will struggle to attract capital for development, only a lack of readiness and preparedness by the project promotor when
accessing capital markets. Nedbank has been actively promoting the concept of including funding plans into feasibility studies. Often, we find studies being released without an adequate funding plan. This creates a perception of being poorly prepared and approaching investors for capital without a plan. Which commodities does Nedbank see garnering the most funding – why is this? Copper, gold, PGMs, rare earth minerals, cobalt, iron ore, uranium. The energy transition is fuelling the demand for critical minerals while gold provides a safe-haven investment option. Gold has breached the US$5 300 /oz level but has retracted marginally lower. Analysts say this is largely due to a rise in geopolitical risk, a weaker USD currency and central banks higher demand for the safe-haven metal. How is the stronger demand for precious metals affecting investment in project developments? Gold and silver project developers and producers are attracting the most capital, followed closely by copper and rare earth mineral developers and producers. Diamond projects and operating mines are not attracting any form of capital at present given the depressed diamond price market and lack of demand for the expensive gemstone. Given the strong push from Western nations to invest in critical minerals, how well positioned are SA and Africa as critical minerals producers? There’s no definition of critical minerals. The closest definition would be minerals that are essential for the green energy transition. If we apply this definition, we are referring to copper, cobalt, graphite, tin, manganese, PGMs, nickel, lead and rare earth minerals. SA is well positioned to harness its endowment of PGMs and manganese to benefit mine owners, government and local communities in this commodity super cycle the world is currently experiencing. Given that Nedbank is positioned as a “green bank”, is there a growing focus on investing in clean energy projects? Nedbank led the funding of the restart of the Langer Heinrich Uranium mine in Namibia, owned by Australian listed Paladin Energy. This would be our greatest example of funding clean energy solutions for a greener economy. We are currently on mandate to lead arrange a funding package for Deep Yellow, another ASX listed company looking to make a final investment decision on its Tumas Uranium Project in Namibia. Is there an increase in M&A’s in the mining sector? What are some of the drivers for this and which commodities do you see as being ripe for the picking? M&A activity can been viewed as big-ticket mergers and low-key acquisition of assets / projects. We have been closely following: • the failed merger of Glencore and Rio Tinto, • the merger of Anglo American and Teck Resources, into Anglo Teck, • locally, Exxaro’s acquisition of key manganese assets in SA, • AngloGold Ashanti’s acquisition of Centamin plc, • Zijin Gold’s acquisition of Allied Gold Inc, • Robex Resources’ acquisition of Predictive Discovery in West Africa. n
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