http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 13.85Change: 0.03
R/$ = 10.93Change: 0.05
Au 1231.31 $/ozChange: -0.06
Pt 1248.50 $/ozChange: -1.00
 
 
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 27, 2011

Mittal expects to make N Cape iron-ore mine call by end Aug

Back
ArcelorMittal South Africa CEO Nonkululeko Nyembezi-Heita on the group's iron-ore mining aspirations. Camera Work: Nicholas Boyd. Editing: Darlene Creamer.
Africa|CoAL|Exploration|PROJECT|Resources|Transnet|Africa|Logistics|Mining|Service|Steel|Environmental|Drilling|Iron Ore|Rail|Operations
Africa|CoAL|Exploration|PROJECT|Resources|Transnet|Africa|Logistics|Mining|Service|Steel|Environmental|Drilling|Iron Ore|Rail|Operations
africa-company|coal|exploration|project|resources|transnet|africa|logistics|mining|service|steel|environmental|drilling|iron-ore|rail|operations
© Reuse this



Steel group ArcelorMittal South Africa (Mittal) expects to complete its due diligence of a modest-sized iron-ore prospect in the Northern Cape by the end of August and has indicated that such small-scale developments are likely to be central to its aspiration of closing a backward-integration gap in its sources of iron-ore supply.

CEO Nonkululeko Nyembezi-Heita said that the assessment of the as-yet unnamed project was "progressing well", but required some additional drilling.

Should the campaign prove successful, it could lead to the development of a mine able to produce between one-million and two-million tons of the steelmaking material yearly.

But she also stressed that the project would only prove feasible should it also be able to access a reliable rail logistics network, which was not a certainty. In fact, she indicated that the JSE-listed group was having ongoing difficulties in securing a reliable service from Transnet Freight Rail, the State-owned utility.

The project would also require black economic-empowerment (BEE) participation in line with South Africa’s Mineral and Petroleum Resources Development Act, which stipulates 26% ownership in mines by previously disadvantaged individuals.

Mittal itself currently had no BEE equity partner, and its proposed empowerment deal was currently being held up by a legal review of the awarding of an exploration right by the Department of Mineral Resources to Imperial Crown Trading 289, which could participate in the BEE deal should it proceed.

Nyembezi-Heita indicated that the property could emerge as a hub for a cluster of smaller mining operations in the region, which together could eventually produce at a yearly rate of around three-million tons.

Should the project proceed and Mittal prove successful in its arbitration with Kumba Iron Ore (Kumba) over the validity of a supply agreement involving 6.25-million tons Sishen iron-ore, the group would be more or less self-sufficient.

At full production, the steel group consumed some 10.5-million tons of iron-ore yearly, 90% of which was sourced from Sishen (6.25-million tons) and Thabazimbi (2.5-million tons), with the 10% balance purchased from Assmang’s Beeshoek mine, also in the Northern Cape.

Nyembezi-Heita said that Mittal had also not discounted possible participation in Kumba’s ‘Project Phoenix’, which would extend the life of the nearly depleted Thabazimbi mine, in Limpopo province. However, Kumba indicated previously that they did not anticipate that Mittal would participate in the project, which could be developed from 2016.

“We have reopened this particular issue [with Kumba] and want to reach some kind of an understanding about our participation in Phoenix. We believe that we do retain the right . . . to participate.”

COAL OPTIONS

The group is also considering coking coal alternatives, arising from Mozambique in particular, in a bid to improve the logistics of its imports, which currently account for 66% of supply and arise mainly from Australia.

It would test material from the Riversdale mine in Mozambique and was also optimistic of eventually receiving material for Coal of Africa Limited’s (CoAL’s) Vele project, in Limpopo, which had recently secured environmental permits to proceed.

It would also test a bulk sample for CoAL’s Makhado project, which was also located in the Limpopo province. Should the test prove successful, it could lead to an offtake agreement.

Mittal held nearly 16% of the shares in CoAL.

During the interim period, Mittal’s raw material costs rose sharply, with year-on-year coking coal costs increasing 59%, while iron-ore and electricity increased by 23% and 28% respectively.

In the third quarter, the group would bear the full brunt of the higher coking coal prices, which had surged to over $300/t on the back of supply disruptions associated with the flooding in Queensland, Australia. Prices jumped 98% from $170/t in June last year to R334/t in January.

ArcelorMittal South Africa CEO Nonkululeko Nyembezi-Heita on the group's iron-ore mining aspirations. Camera Work: Nicholas Boyd. Editing: Darlene Creamer.
 

Edited by: Creamer Media Reporter
© Reuse this Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
Other Carbon Steel News
Global crude steel output in September, at 134.4-million tonnes, was marginally lower than the 134.5-million tonnes produced in September 2013. According to the World Steel Association (worldsteel), China produced 67.5-million tonnes of crude steel in September,...
Henk Langenhoven
The Steel and Engineering Industries Federation of Southern Africa (Seifsa) warned on Friday that the metals and engineering sector could contract by between 2% and 3% in 2014, owing primarily to the fallout from a month-long strike in July. The sector, which made...
CoAL CEO David Brown
A national debate is needed to discuss ways of lowering the high cost of railing bulk commodities like coal, says Coal of Africa Limited (CoAL) CEO David Brown. The London-, Sydney- and Johannesburg-listed CoAL plans to produce nearly seven-million tons of saleable...
Article contains comments
More
 
 
Latest News
Swedish Ambassador to South Africa Christian Meuwly will next week inaugurate the final roll-out of the new vertical shaft brick kiln (VSBK) at clay brick manufacturer Langkloof Bricks’ facility in Jeffrey’s Bay. The VSBK formed a part of economic, social and...
Hot on the heels of the launch of Rustenburg’s rapid transport system’s brand name and logo last week, a negotiation framework agreement (NFA) has been formally agreed to and signed by the Rustenburg Local Municipality (RLM) and taxi and bus operators affected by the...
The runway at the George Airport, in the Western Cape, has been rehabilitated to improve safety, in terms of run-off and storm water drainage, and the structural capacity of the pavement surface. The scope of work comprised the extension of Runway 11/29, the...
More
 
 
Recent Research Reports
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.
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.
 
 
 
 
 
This Week's Magazine
Integrated energy and chemical company Sasol has partnered with Unisa Graduate School of Business Leadership (SBL) professor and founder and CEO of PanAvest Partnership Dr Douglas Boateng to publish a series of books on executive supply chain management aimed at...
MORNÉ DU PLESSIS Increased urgency and burgeoning awareness of the importance of these issues are beginning to change political risks and, thus, State responses to environmental concerns
The World Wide Fund for Nature’s (WWF’s) 2014 Living Planet Index (LPI) indicates that there has been a 52% decline in vertebrate species since 1970. The Index tracked the trends of 10 000 discrete populations of over 3000 vertebrate species between 1970 and 2010.
Rwanda has joined a number of East African countries seeking to import electricity from Ethiopia as its demand grows. After it became apparent several generation project it is implementing will not come on stream early enough, now plans to import 400 MW from Ethiopia...
Metrorail’s first new passenger train will arrive in November next year, says Passenger Rail Agency of South Africa (PRASA) CEO Lucky Montana. “Next year we will be able to put our hands around the infrastructure and equipment we have been talking about for so long.”
The Competition Commission has launched an investigation into what it says are “price fixing, market division and collusive tendering in the market for the manufacture and supply of automotive components to original equipment manufacturers” (OEMs, or vehicle...
 
 
 
 
 
 
 
 
 
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