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The Johannesburg Stock Exchange (JSE) is poised to welcome its first mining listing in over two years this Wednesday, as Shuka Minerals, a firm focused on coal and base metals, makes its debut on the AltX. This marks a significant moment for the local bourse, signalling renewed interest in the mining sector.
Previously known as Edenville Energy, the company underwent a strategic overhaul and management refresh in September 2023, emerging as Shuka Minerals. This transformation was bolstered by a significant £1.46 million injection of new investment. The capital came from Quinton van der Burgh’s Q Global Commodities (QGC), through its Dubai subsidiary AUO Commercial Brokerage, and Tanzanian firm Gathoni Machai Investments (GMI), in which Jason Brewer holds a stake. Brewer, a known partner of Van der Burgh, also serves as CEO of Marula Minerals, a critical minerals company with operations in South Africa, where both are invested.
Richard Lloyd, CEO of Shuka Minerals, outlined the company’s immediate priorities on Tuesday. Top of the list is returning the Rukwa coal mine in Tanzania to production, with an ambitious target of up to 5,000 tons per month of washed coal. Lloyd also noted approximately 63 tons of stockpiled material that could be rewashed, a process that would also serve to stress-test the existing wash plant.
“There’s absolutely nothing wrong with the asset. The geology is really straightforward,” Lloyd told Miningmx in an interview, speaking about Rukwa. “It’s been unloved and perhaps suffered from a lack of funding,” he added, alluding to the mine’s past.
Beyond coal, Shuka is also actively pursuing the acquisition of Kabwe, a historic zinc/lead operation in Zambia. The mine, currently mothballed, is estimated to contain a substantial $4 billion worth of resources. Lloyd believes this wealth can be reaccessed once the shafts are dewatered and crucial infrastructure improvements are made.
The Kabwe assets are currently owned by Leopard Exploration & Mining, a company in which veteran mining financier and commentator Peter Major is involved. The completion of this deal has been pushed out to June.
“The current resource of Kabwe that we know of is 6.8 million tons at about 13% zinc and 3.5% lead. Now, that is with 1960s and ’70s drilling,” said Lloyd, highlighting the potential for even greater discoveries with modern exploration.
However, the dewatering of the pit at Kabwe presents its own set of challenges, particularly concerning potential water contamination. Lloyd acknowledged this, stating, “This is one of the first parts of the project that we’ll need to do is get our baseline ESG knowledge there.”
Kabwe’s past is also currently under scrutiny. The mine is the subject of a class action lawsuit in the UK, where members of the Kabwe community are suing Anglo American for alleged environmental harm. Anglo American, for its part, disputes that it was the outright owner of the mine during the period of the alleged contamination.
Closed in 1995, Kabwe was nationalised in the 1970s, with control subsequently handed over to ZCCM, Zambia’s state-owned mining company. Shuka Minerals’ plans for Kabwe signal a significant move to bring a historically rich, albeit complex, asset back to life.
