South African tycoon Neal Froneman’s Sibanye-Stillwater shifts focus to lithium projects

Sibanye-Stillwater, the South African multinational precious metal mining company led by renowned businessman Neal Froneman, has made a strategic decision to halt plans for the development of its uranium assets.

Instead, the mining firm will prioritize its $1.05-billion lithium projects in Finland and the United States.

Neal Froneman, a leading South African mining tycoon at the helm of Sibanye-Stillwater, announced the company’s shift in focus during his speech at the London Indaba conference on “investing in resources and mining in Africa” earlier this week.

Froneman highlighted the company’s commitment to a more sustainable future and stated that the active role of uranium in future energy systems would not be as significant as originally forecasted.

“It is disappointing in a way because we sit on a lot of uranium,” Froneman said. He acknowledged that while uranium and nuclear energy would still have a role to play, Sibanye-Stillwater’s assessment indicated a lower significance than initially anticipated.

This decision represents a reversal of the group’s earlier strategy, which had placed emphasis on developing downstream nuclear energy.

In February, Froneman had expressed plans for a uranium strategy involving Beisa and the Cooke tailings dam, aiming to reestablish the company’s presence in the uranium business.

However, he had also noted that producing uranium was not a competitive advantage for Sibanye-Stillwater. Instead, the company intended to focus on energy solutions involving small modular reactors as part of its strategic pivot.

While Sibanye-Stillwater will continue to explore options in South Africa, Froneman admitted that there were limited opportunities available and that uranium would not experience the same growth as other minerals in the energy market.

The company has allocated approximately $1.05 billion in project capital for developing its Keliber and Rhyolite Ridge lithium projects in Finland and the United States, respectively.

In addition to the change in focus, Neal Froneman earlier this week revealed that Sibanye-Stillwater is nearing the completion of an offer to acquire Zambia’s Mopani Copper Mines.

Froneman expressed confidence in finalizing the deal, emphasizing the company’s desire for a favorable value proposition that aligns with the interests of its shareholders.

Mopani Copper Mines, with more than 90 years of rich history, has the capacity to produce 225,000 tonnes of copper annually, offering substantial growth prospects.