Modern Mining February 2022

MINING News

Mining services company Ukwazi has acquired financial modelling consultancy, Sidus Consulting. The transaction will help grow Ukwazi’s existing solutions portfo- lio, expanding the business’ integrated mining offering for clients across Africa, Ukwazi acquires Sidus Consulting , solidifying transaction advisory capability ensure that clients achieve a cost profile that is efficient, sustainable and safe to operate.”

the Middle East and Europe. Sidus’ chief executive, Kerron Johnstone, will head up mining valuations as part of the new Ukwazi Transaction Advisory (UTA) divi- sion, which will provide industry-leading public reporting, mine financial modelling, project valuation reports, independent technical reports (ITRs) and competent person reports (CPRs), amongst other key services. “As we move into 2022, we see a revi- sion in mining capital allocation strategies, driven largely by post-pandemic economic recovery trends and a rise in demand and pricing,” says Ukwazi’s MD, Jaco Lotheringen. “While this certainly presents an opportunity to make bolder decisions – particularly when it comes to viable and responsible mining investments – accurate financial modelling and risk assessments will be essential to the sustainability of these investments.” According to Lotheringen, Sidus’ vast experience in capital budgeting and investments, closure liability assessments, due diligence and mining IPOs, perfectly complements Ukwazi’s range of multi-dis- ciplinary advisory services as well as the company’s expert capabilities in mining, engineering and environmental solutions. “Leveraging these core competencies will

Johnstone, who will play a major role in UTA, has more than 20 years’ experi- ence analysing the viability, feasibility and life-cycle costing of large mining, water engineering and industrial capital projects. His main area of specialisation is techno economic assessments, a field he became interested in during his time working in merchant and investment banking and engineering consulting. Explains Johnstone, “The mining sec- tor has reached a pivotal point – rapidly evolving technology, the requirement to sustain the licence to operate and increas- ing environmental, social and governance (ESG) pressures, including the journey towards decarbonisation. Determining future production figures, profitability and expenditures through effective cost mod- elling and estimates, will greatly assist the industry in successfully navigating these perceived risks, turning them into workable opportunities. Robust modelling and ana- lytics, as well as Code compliant technical reports, will also help inspire international and local investor confidence, enhancing sector access to appropriate capital and much needed funding.” 

Determining future production figures, profitability and expenditures through effective cost modelling and estimates will be essential to inspiring international and local investor confidence. Sibanye-Stillwater to assume full ownership of Kroondal Diversified mining house Sibanye-Stillwater has entered into an agreement wi th Rustenburg Platinum Mines (RPM), a sub- sidiary of Anglo American Platinum (AAP), through its subsidiary Sibanye Rustenburg Platinum Mines (Rustenburg operation), which will result in the Rustenburg operation assum- ing full ownership of the low cost, mechanised Kroondal operation. The transaction will facili- tate the life of the Kroondal operation being extended to 2029 and ensure significant value creation for all stakeholders. Sibanye-Stillwater currently operates the Kroondal operation. Sibanye-Stillwater CEO Neal Froneman commented “We welcome this mutually ben- eficial transaction which, through the full consolidation of these operations under a sin- gle owner, will unlock significant value for all stakeholders by extending the operating life of the Kroondal operation.” 

BFG Africa appoints a new MD as it expands into broader SA economy Composites manufacturer BFG Africa, a subsidiary of BFG International, has appointed Bongani Khoza as the new MD, effective from 03 January 2022.

Khoza is leading BFG’s expansion plans into automotive, rail and renewable energy sectors in Southern Africa.

BFG Africa is majority black-owned by the Mergence group, a diversified financial services group, after acquiring the stake in 2018, as part of its diversification into the SA industrial sector to bolster SA’s manufactur- ing capacity. As an initial contract, entered into with the Gibela Alstom Consortium, BFG Africa will clad the interiors of a fleet of 600 commuter trains. To date, BFG has designed and manufactured the interiors of 51 commuter trains, of which 34 were completed in 2021 at the height of the Covid-19 pandemic. Before joining BFG, Khoza was an operational improvement specialist at Gibela Rail, responsible for optimising production and helping Gibela suppliers improve operational performance and comply with the train production standards and requirements.  Bongani Khoza the new MD.

4  MODERN MINING  February 2022