R/€ = 15.16Change: -0.03
R/$ = 13.35Change: -0.02
Au 1156.06 $/ozChange: -2.88
Pt 981.00 $/ozChange: 2.00
Note: Search is limited to the most recent 250 articles. Set date range to access earlier articles.
Where? With... When?

And must exclude these words...
Close Main Search
Close Main Login
My Profile News Alerts Newsletters Logout Close Main Profile
Agriculture   Automotive   Chemicals   Competition Policy   Construction   Defence   Economy   Electricity   Energy   Environment   ICT   Metals   Mining   Science and Technology   Services   Trade   Transport & Logistics   Water  
What's On Press Office Tenders Suppliers Directory Research Jobs Announcements Letters About Us
RSS Feed
Article   Comments   Other News   Research   Magazine  
Jul 25, 2012

Mittal aims to begin mining N Cape iron-ore prospect in 2015

Africa|ArcelorMittal South Africa|CoAL|Exploration|Kumba|Mining|Petroleum|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
Africa|CoAL|Exploration|Mining|Petroleum|PROJECT|Projects|Resources|Testing|Africa|||Logistics|Steel|||Infrastructure|Iron Ore|Iron-ore||Operations|
© Reuse this

JSE-listed steel producer ArcelorMittal South Africa (Mittal), which is currently exploring an as-yet-unnamed iron-ore resource in the Northern Cape, hopes to begin mining on the property by 2015, partly in a bid to close an anticipated supply gap that would arise from Kumba Iron Ore’s aged Thabazimbi mine, the life of which had already been extended to 2014.

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)
Other Metals News
Outgoing Seifsa president Ufikile Khumalo
Downscaling by South African primary steel producers was “unavoidable” despite recent protection measures, outgoing Steel and Engineering Industries Federation of Southern Africa (Seifsa) president Ufikile Khumalo cautioned on Friday. Khumalo is also chairperson of...
Evraz Highveld Steel and Vanadium creditors would, on Tuesday October 13, vote on a business rescue plan, which included a recommendation that International Resources Limited (IRL), of Hong Kong, be allowed to purchase the company. The vote was initially set for...
Article contains comments
The National Union of Metalworkers of South Africa (Numsa) on Tuesday called on the National Treasury to investigate the noncompliance of the Preferential Procurement Policy Framework Act and its local content regulation as part of its list of demands ahead of its...
Latest News
South African Airways (SAA) has enhanced its partnership with the airline’s in-flight duty-free concessionaire Tourvest Inflight Retail Services (TIRS), enabling Voyager members to earn miles when buying duty-free products and spend their miles when shopping for...
South Africa's new visa regulations are having an adverse impact on the country's tourism industry without proof that they are making any impact on child trafficking, according to Hussein Dabbas, International Air Traffic Association (Iata) regional vice-president...
The Council for Scientific and Industrial Research (CSIR) has developed a semi-autonomous solution for early pothole detection to potentially replace the often time-consuming expensive manual road inspection. Showcasing the Visual Surveying Platform (VSP), CSIR...
Recent Research Reports
Liquid Fuels 2015: A review of South Africa's liquid fuels sector (PDF Report)
Creamer Media’s Liquid Fuels 2015 Report examines these issues in the context of South Africa’s business environment; oil and gas exploration; fuel pricing; the development of the country’s biofuels industry; the logistics of transporting liquid fuels; and...
Road and Rail 2015: A review of South Africa's road and rail sectors (PDF Report)
Creamer Media’s Road and Rail 2015 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 infrastructure and network, the funding and maintenance of these respective networks, and...
Defence 2015: A review of South Africa's defence sector (PDF Report)
Creamer Media’s Coal 2015 report examines South Africa’s coal industry with regards to the business environment, the key participants in the sector, local demand, export sales and coal logistics, projects being undertaken by the large and smaller participants in the...
Real Economy Year Book 2015 (PDF Report)
There are very few beacons of hope on South Africa’s economic horizon. Economic growth is weak, unemployment is rising, electricity supply is insufficient to meet demand and/or spur growth, with poor prospects for many of the commodities mined and exported. However,...
Real Economy Insight: Automotive 2015 (PDF Report)
Creamer Media’s Real Economy Year Book comprises separate reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, gold, iron-ore and platinum sectors.
Real Economy Insight: Water 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
This Week's Magazine
BUSINESS LEADERS PANEL Adam Craker, Ivor Chipkin, Alan Hosking and Allon Raiz at the 6th IQ Business Active Growth conference
At the sixth IQ Business conference held in Sandton last month, a panel of business leaders and academics advocated that business reclaims the initiative to spur growth in South Africa amid fragmented and haphazard political direction. Management consulting firm IQ...
The building industry is an essential component of the South African economy as it contributes about 15% to the gross fixed investment that drives the economy. However, with the country’s economy going through a tough time currently, this, in turn, reflects on the...
The recipients of the 2015 South African National Energy Association (Sanea)/South African National Energy Development Institute Energy (Sanedi) Awards were announced at a ceremony and banquet in Sandton last month. Sanea chairperson Brian Statham named Exxaro CEO...
ASHER BOHBOT EOH’s corporate goals were originally aspirations, but the company is relevant and is making a difference in the territories it operates in
As South African information technology (IT) firm EOH posted another full year of strong growth, CEO Asher Bohbot, known for his frank words, people-centric management style and stoic humanism, attributed the company’s continued South African and African growth to...
International heavy-equipment engine manufacturer Cummins’ regional distribution centre (RDC) in Woodmead, Gauteng, has halved the average logistics distribution time for clients in Southern Africa and allowed for critical or long-lead stock to be kept closer to...
Alert Close
Embed Code Close
Research Reports Close
Research Reports are a product of the
Research Channel Africa. Reports can be bought individually or you can gain full access to all reports as part of a Research Channel Africa subscription.
Find Out More Buy Report
Engineering News
Completely Re-Engineered
Experience it now. Click here
*website to launch in a few weeks
Subscribe Now for $96 Close
Subscribe Now for $96