Mining Dealmaker Sees Battery Metals as Third Pillar of Profit

Since its formation in 2013, after Gold Fields Ltd. spun off its oldest South African gold mines, Froneman has transformed Sibanye through the acquisition of platinum-group metals assets from Montana to Zimbabwe. This year, his focus has switched again to metals such as lithium, nickel and cobalt, which are helping to drive the electric-vehicle revolution.

“In maybe three to four years time, I would expect an equal proportion of earnings from gold, PGMs and and battery metals,” Froneman said in an interview from Johannesburg.

Flush with cash from a rally in PGMs, Sibanye said Thursday it would invest $490 million in a project that could become the biggest lithium mine in the U.S. That follows investments earlier this year in nickel and lithium assets in Europe. While facing competition from other miners and private-equity firms, further acquisitions may follow this year, said Froneman, who is also considering uranium projects in South Africa as the outlook for the nuclear fuel improves.

That expansion won’t compromise investor payouts, said the CEO, who announced a record first-half dividend last month.

“The fundamentals for PGMs and for green metals are very good because of the demand that’s going to arise from the move into battery electric vehicles and the shift into the hydrogen economy,” Froneman said. “That gives us the confidence to say we have got a very good chance of completing our strategy and rewarding our shareholders at the same time.”