COMMENT •

Leon Louw - Editor • @ LeonLouw3 • llouw @ interactmedia . co . za

trending curves making headlines . Some of these curves meant good news , others meant bad news ( often sad news ). And then there were those outliers that meant throughthe-roof-great-news .

The first two weeks of January 2021 saw a horrendous increase in worldwide Covid-19 infections as the second wave in African countries , and the third wave in some global countries , surged to record levels . With the rise in infections the death rate followed suite , plunging health sectors around the world into crisis .

South Africa , the leading mining jurisdiction on the continent , took strain , as mine workers from around Southern Africa returned from their year-end break to resume operations amidst a rising infection and death rate . But those keeping an eye on other curves , noticed a trend that would stir-up a hint of optimism amongst the most ardent readers of African Mining .

Since October last year , almost all commodity prices have gradually been heading north . Aside from gold , which had a field day in an uncertain world last year , demand for other commodities like , amongst others , iron ore , manganese , coal , zinc , and tin , started running red-hot , with China emerging from the Covid-19 scourge with guns blazing . Some analysts went as far as calling it the next super boom . Most surprising was coal ’ s strong rally despite concerns about carbon emissions . The China-Australia trade spat might benefit Africa as the Chinese market looks for new partners . The South African coal sector

has already reported an uptick in Chinese off-takers and with the higher coal price , South African exporters will have a field day . Ditto for iron ore and manganese . As the mass vaccination programmes start making an impact on Covid-19 infections later this year , it all bodes well for mining , and the African mining industry in particular .

Nevertheless , the rise and rise of the Platinum Group Metals ( PGMs ), especially rhodium ( mined as a by-product of platinum ), is a boon for South Africa , which is the largest PGM producer in the world . Rhodium ’ s price has been steadily increasing since the beginning of last year , but in the second week of January 2021 it stunned the world by recording massive trading prices more than USD20 000 per ounce . Rhodium is mined as one of the metals in the PGM basket . Close to 90 % of the world ’ s rhodium is produced from the upper group of UG2 orebodies , which is found mostly in South Africa . Zimbabwe ’ s platinum mines might also see the benefits as the world ’ s thirst for platinum continues unabated . According to Neil Froneman , CEO of PGM giant Sibanye-Stillwater , predicts that it is possible that the platinum price itself would reach USD2 000 per ounce as the Chinese auto industry recovers after the Covid-19 knock . •

Leon Louw Editor