Jul 25, 2012
Mittal aims to begin mining N Cape iron-ore prospect in 2015Back
Africa|ArcelorMittal South Africa|CoAL|Exploration|Kumba|Mining|PROJECT|Projects|Resources|Testing|Africa|Australia|Mozambique|Thabazimbi Mine|Iron-ore Logistical Infrastructure|Logistics|Steel|Steel Producer|Northern Cape|Infrastructure|Iron Ore|Iron-ore|Nonkululeko Nyembezi-Heita|Rudolph Torlage|Operations|Limpopo
© Reuse this
CEO Nonkululeko Nyembezi-Heita refused to name the property, nor provide the identity of its black economic-empowered (BEE) joint venture partner. Such disclosures would only be made once the Department of Mineral Resources had issued a Section 11 mining notice, as required by the Mineral and Petroleum Resources Development Act.
Nevertheless, CFO Rudolph Torlage indicated that some R207-million had been set aside mostly for the exploration and development of the property, which was located close to existing iron-ore logistical infrastructure.
The budget also included some funding for a joint exploration venture with Kumba in the Limpopo province at a project known as Zandrivierspoort. However, Nyembezi-Heita stressed that the 50:50 partnership with Kumba was at a very early stage and was not expected to be developed in the short- to medium-term.
Exploration on the Northern Cape prospect, which started in February and would continue until early 2013, was being fully funded by the steel company.
The BEE partner would remain a participant, as it participation was critical to securing a mining licence.
The exploration campaign was designed to advance the prospect to a point where a decision on a new mine could be made. But Torlage stressed that it would be premature to offer a capital expenditure figure for the proposed development.
The project formed part of a larger backward integration programme to secure steelmaking materials, such as iron-ore and coking coal – a programme that had been intensified following the cancellation by Kumba of a cost-plus-3% supply agreement struck at the 2001 unbundling of Iscor into separate mining and steel companies. The dispute was currently the subject of legal and arbitration processes, which Mittal hoped would be concluded by mid-2013.
In the area of coking coal, the company was beginning to diversify its supply away from Australia. It had already tested material arising from Vale’s mine in Mozambique and was also planning to integrate material from Rio Tinto’s Mozambique coking coal operations.
GM procurement and logistics Willem Nel said the company expected to receive about 350 000 t of material from Mozambique this year and increase purchases to around 500 000 t next year, logistics permitting.
He said it was also testing material from Coal of Africa Limited’s Makhado and Vele projects.
Edited by: Creamer Media Reporter© Reuse this Comment Guidelines (150 word limit)
Updated 3 minutes ago Industrial engineering group PSV Holdings said on Tuesday that it had been awarded several contracts that would bring “welcome relief” as it headed towards the end of its financial year on February 28. “We have spent time ensuring group tender processes and...
Updated 3 hours ago Petochemicals group Sasol and the Lion Match Company have inked a deal that will see Sasol subsidiary and candle manufacturer Price’s Candles being absorbed into Lion’s portfolio of homecare brands. Lion Match Company group CEO Alisdair Sinclair said the acquisition...
Updated 4 hours ago After receiving the most number of votes at PPC’s annual general meeting (AGM) on Monday, Tito Mboweni, Charles Naude, Daniel Ufitikizeri, Nicky Goldin, Timothy Leaf-Wright and Peter Nelson have been appointed to the board of the cement group. Shareholders were...
Recent Research Reports
Liquid Fuels 2014 - A review of South Africa's Liquid Fuels sector (PDF Report)
Creamer Media’s Liquid Fuels 2014 Report examines these issues, focusing on the business environment, oil and gas exploration, the country’s feedstock supplies, the development of South Africa’s biofuels industry, fuel pricing, competition in the sector, the...
Water 2014: A review of South Africa's water sector (PDF Report)
Creamer Media’s Water 2014 report considers the aforementioned issues, not only in the South African context, but also in the African and global context, and examines the issues of water and sanitation, water quality and the demand for water, among others.
Defence 2014: A review of South Africa's defence industry (PDF Report)
Creamer Media’s Defence 2014 report examines South Africa’s defence industry, with particular focus on the key participants in the sector, the innovations that have come out of the sector, local and export demand, South Africa’s controversial multibillion-rand...
Road and Rail 2014: A review of South Africa's road and rail infrastructure (PDF report)
Creamer Media’s Road and Rail 2014 report examines South Africa’s road and rail transport system, with particular focus on the size and state of the country’s road and rail network, the funding and maintenance of these respective networks, and the push to move road...
Real Economy Year Book 2014 (PDF Report)
This edition drills down into the performance and outlook for a variety of sectors, including automotive, construction, electricity, transport, steel, water, coal, gold, iron-ore and platinum.
Real Economy Insight: Automotive 2014 (PDF Report)
This four-page brief covers key developments in the automotive industry over the past 12 months, including an overview of South Africa’s automotive market, trade figures, production and the policies influencing the sector.
This Week's Magazine
Three-dimensional (3D) printers being sold in South Africa by electronics distributor Rectron currently print in two types of plastic, but have a clear upgrade path over the next five years to eventually print in wood, ceramics and metal-alloy materials, says Rectron...
The world’s two dominant commercial aircraft manufacturers, Airbus of Europe and Boeing of the US, both recently announced that they had made record aircraft deliveries in 2014. Boeing set a global record for the industry with 723 commercial aircraft delivered, while...
The Western Cape is shifting further into the renewable-energy space with the official opening of a factory specialising in solar inverters, a key component of solar photovoltaic (PV) plants. The investment in the manufacturing facility in Cape Town aims to boost the...
Business Leadership South Africa (BLSA) last month welcomed Cabinet’s establishment of a technical team war room to undertake various interventions to improve electricity supply security over the short- and medium-term, but added that the private sector also had a...
Despite a rapid rise in mobile connections and the economic and social benefits of such connectivity, more than half of the world ended 2014 unconnected. For this reason, industry commentators believe the biggest impact of mobile technology is still to come –...