The platinum platform of diversified JSE-listed Pallinghurst has invested in a low-energy hydrometallurgical alternative to high-energy smelting.

The environment-friendly Kell process, which Pallinghurst has been studying over a prolonged period, requires only a fifth of the electricity required for conventional smelting and has the potential to increase the recoveries from platinum-group metals (PGMs) concentrates.

Initial test results at Pallinghurst’s Sedibelo Platinum Mines (SPM), in South Africa’s North West province, have been positive, the JSE-listed Pallinghurst said in reporting $100-million net group profit in the six months ended June 30.

“Analysis is ongoing as to whether the process can be applied to SPM’s current operations and potentially to other industry producers,” said CE Arne Frandsen, who reported a doubling of the Pallinghurst share price in the past 12 months.

Investec Securities reports that Pallinghurst has raised $65-million to develop the east pit of its Pilansberg platinum mine to take output to between 350 000 oz and 400 000 oz of PGMs a year in the next 18 months.

Patented by former Mintek researcher Keith Liddell, the Kell process is said to remove the need to melt PGM concentrate at a high 1 600 ºC temperature.

Instead, it consumes a mere 140 kWh for every ton of concentrate processed, compared with 1 000 kWh of electricity for every ton of concentrate smelted, recovering 99%-plus of the platinum and 98% of the remaining PGMs, as well as the base metals.

It requires no milling and emits only 440 kg of carbon dioxide (CO2) a ton of concentrate treated, compared with 1 400 kg of CO2/t for the estimated two-million tons of concentrate treated in South Africa a year.

The technology is also said to cope well with the chromite in the upper group two reef, which smelting finds problematic.

The main reason why Kell consumes so little power is that waste goes through the process without consuming any electricity.

The resource base of SPM – which produced 9% more first-half PGM ounces at 71 800 oz and which is earmarked for relisting as a sustainable, relatively shallow resource base – has been increased in the period under review as a result of the acquisition of 45-million more PGM resource ounces at Kruidfontein.

The directors estimate the value of Pallinghurst’s indirect 6.73% interest in $3.2-billion SPM at $215-million.

Pallinghurst’s strongly performing coloured gemstone business, Aim-listed Gemfields, achieved a revenue of $160-million and earnings of $59-million for the year to June 30, after bringing in $33.5-million revenue from its first auction of rubies, its second gemstone offering after emeralds.

Unusually high rainfall and grade volatility in coloured gemstone mining saw the Pallinghurst company’s emerald and beryl production at Kagem, in Zambia, fall by a third to 20-million carats in the year to June 30 and grade decrease 11% to 253 ct/t.

Production of ruby and corundum at Montepuez, in Mozambique, increased more than threefold to 6.5-million carats in the year to June 30, with total cash operating costs increasing to $11-million.

Earlier this month, Gemfields announced a joint venture in the Sri Lankan sapphire sector and the acquisition of 75% of a variety of Sri Lankan exploration licences.

Pallinghurst’s see-through 48% interest in Gemfields has been valued at $208-million.

The Tshipi manganese platform, which was profitable in its first full financial year of operations despite the weak manganese price environment, sold nearly a million tons of manganese ore in the six months to August 31.

Tshipi Borwa’s target production for the financial year to February has been raised to between 1.7-million and 2-million tonnes, commissioning of the rapid load-out station having reduced loading times, improving capacity and reducing costs.

Jupiter Mines has been granted a mining right over Mount Mason, in the Central Yilgarn region of Western Australia