Anglo American, which has reported record safety and record financials and the highest dividend in 15 years, has submitted an application to be allowed to self-generate 75 MW of solar power at its Mogalakwena mine, where the world’s largest hydrogen fuel cell haul truck is being developed.

Operationally, platinum group metals (PGMs) production was up 1% year-on-year to 4.4-million ounces, but with electricity load-shedding by Eskom leading to the loss of 38 000 oz of production.

Outgoing CEO Chris Griffith told Engineering News & Mining Weekly in a conference call: “We have an application in but I think it’s important to note that it’s not only an application through the Department of Mineral Resources and Energy.

“We also have to submit applications for water licences and environmental assessment. All those are in the process of being submitted and we have a process of engagement with all of those Ministries.

It’s really as a result of those timelines that generation can take place. I think most folk are forgetting that there are also water licences and environm

Why 75 MW is being applied for now is that there is currently land space available for that level of megawattage, but there is potential for considerably more.

On the economical viability of self-generation, Griffith said: “Costwise, it’ll come in lower than existing technology. We’re hoping to see the final numbers in the next month or so, and we’re hoping to take final approvals to our board in April,” he added.

Griffith is scheduled to leave the Anglo American group, which he has served for 30 years, at its annual general meeting on April 16 and his successor, who is expected to be an internal candidate, will be announced in the near future.

He also left Kumba Iron Ore in great shape when he joined a struggling Amplats in 2012/13.

He said Amplats management were committed to ensuring ongoing safe production while delivering value. The company came within a hair’s breadth of delivering operational net cash of R17-billion in the 12 months to the end of December.

Of the seven years at the helm of Amplats, which he leaves at its finest safety, marketing and dividend hour, he said: “I did nothing. It was our great team that did everything.”

The Mogalakwena and Unki mines delivered record production, with the turnaround plan at Amandelbult on track and a 12% improvement in production in H2 over H1. This improvement is expected to continue into 2020, as development and equipping at the mine have increased.

Unit cost rose by 8% to R10 189 per PGM ounce produced, owing to the impact of load- shedding and a draw-down on Mogalakwena ore stockpiles.

PGM prices rose sharply in 2019, with a 27% increase in the dollar basket price to $2 891 per platinum ounce (compared with $2 219 in 2018), owing to a 48% increase in the palladium price and a 73% increase in the rhodium price.

Coupled with a 9% weaker average rand: dollar exchange rate of R14.50 (2018: R13.33), the rand basket price was up 38%, resulting in a 33% increase in net sales revenue to R99.6-billion.

Amplats generated operating free cash flow of R16.9-billion, further strengthening the balance sheet to an overall net cash position of R17.3-billion, compared with the R2.9-billion net cash position as at December 31, 2018.