http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 14.30Change: -0.13
R/$ = 11.06Change: -0.09
Au 1235.25 $/ozChange: 2.33
Pt 1371.00 $/ozChange: 0.50
 
 
Note: Search is limited to the most recent 250 articles. Set date range to access earlier articles.
Where? With... When?








Start
 
End
 
 
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 Contact Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
Jul 25, 2012

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

Back
Africa|ArcelorMittal South Africa|CoAL|Exploration|Kumba|PROJECT|Projects|Resources|Africa|Australia|Mozambique|Thabazimbi Mine|Iron-ore Logistical Infrastructure|Logistics|Mining|Steel|Steel Producer|Northern Cape|Infrastructure|Iron Ore|Nonkululeko Nyembezi-Heita|Rudolph Torlage|Limpopo
Africa|CoAL|Exploration|PROJECT|Projects|Resources|Africa|||Logistics|Mining|Steel|||Infrastructure|Iron Ore||
africa-company|arcelormittal-south-africa|coal|exploration|kumba|project|projects|resources|africa|australia-country|mozambique|thabazimbi-mine|iron-ore-logistical-infrastructure|logistics|mining|steel|steel-producer|northern-cape|infrastructure|iron-ore|nonkululeko-nyembeziheita|rudolph-torlage|limpopo
© 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)
 
 
 
 
 
 
 
 
 
Latest News
Finance Minister Nhlanhla Nene
Updated 1 hour 53 minutes ago The Cabinet-approved support package for Eskom has reaffirmed that tariff adjustments “remain the key mechanism that will provide the electricity supply industry with a sustainable solution”, but it also included a further allocation of funds – no figure was provided...
Updated 2 hours 34 minutes ago China has extended 26-billion CFA francs ($51-million) in funding to Mali, the West African country said on Friday, as it negotiates a programme with the International Monetary Fund. President Ibrahim Boubacar Keita reached the agreement, which includes a gift of...
Updated 2 hours 40 minutes ago Tanzania signed a $565-million deal on Friday with the World Bank and other development partners to expand its main port of Dar es Salaam, part of plans to boost the east African nation's role as a regional trade hub. Tanzania wants to lift capacity to 28-million...
More
 
 
Recent Research Reports
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.
Real Economy Insight: Construction 2014 (PDF Report)
This five-page brief covers key developments in the construction industry over the past 12 months. It provides an overview of the sector and includes details of employment in the sector, infrastructure and municipal spending, as well as insight into companies’...
Real Economy Insight: Electricity 2014 (PDF Report)
This five-page brief covers key developments in the electricity industry over the past 12 months, including details of State-owned power utility Eskom’s generation activities, funding and tariffs, independent power producers and prospects for the sector.
Real Economy Insight: Road and Rail 2014 (PDF Report)
This six-page brief covers key developments in the road and rail industries over the past 12 months, including details of South Africa’s road and rail network and prospects for both sectors.
 
 
 
 
 
This Week's Magazine
The board of UD Trucks Southern Africa (UDTSA) has announced the resignation of MD Jacques Carelse.   Long-time UD employee, corporate planning and marketing GM, Rory Schulz, has been appointed as acting MD while the process started to appoint a new MD. The Japanese...
There is a need to start planning another pumped storage scheme in South Africa. Much work has already been done at a site in the Limpopo province and the project was very close to being put out to tender at one stage. In 2008/9 the National Energy Regulator of South...
The Coega Development Corporation (CDC) is preparing to leverage its strategic coastal position to develop the Eastern Cape economy through proposed aquaculture development zones (ADZs), with a proposed R2-billion project aiming to contribute $278-million to the...
Completion of the ongoing construction of the 102 km Zomba–Jali–Phalombe–Chitakale road, in southern Malawi, has been extended from June  to December 15 because of persistent rains and difficulties in paying the contractor. The project is being undertaken by Kuwait's...
The Malawi government has awarded South African firm  Fischer Consortium the  contract to upgrade the Malawi Road Traffic Information System. The Directorate of Road Traffic and Safety Services at Malawi's Ministry of Transport and Public Works says Fischer...
 
 
 
 
 
 
 
 
 
Alert Close
Embed Code Close
content
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
 
 
Close
Engineering News
Completely Re-Engineered
Experience it now. Click here
*website to launch in a few weeks