http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 17.83Change: 0.29
R/$ = 15.87Change: 0.15
Au 1191.64 $/ozChange: -3.81
Pt 931.00 $/ozChange: -5.50
 
 
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 Letters About 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|Mining|Petroleum|PROJECT|rail|Resources|Transnet|Africa|Logistics|Service|Steel|Environmental|Drilling|Iron Ore|Iron-ore|Operations
Africa|CoAL|Exploration|Mining|Petroleum|PROJECT|rail|Resources|Transnet|Africa|Logistics|Service|Steel|Environmental|Drilling|Iron Ore|Iron-ore|Operations
africa-company|coal|exploration|mining|petroleum|project|rail|resources|transnet|africa|logistics|service|steel|environmental|drilling|iron-ore|iron-ore-person|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

To subscribe email subscriptions@creamermedia.co.za or click here
To advertise email advertising@creamermedia.co.za or click here
 
Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
Other Video News
More
 
 
Latest News
Updated 5 minutes ago Steel producer Evraz Highveld Steel and Vanadium announced on Wednesday that the Department of Labour had put a “pause” to Training Layoff Scheme (TLS) payments in response to confirmation that the proposed sale of the business to International Resources Limited...
Updated 6 minutes ago About 2 000 workers at LafargeHolcim's South African unit will on Thursday launch an open-ended strike over pay, a labour union said on Wednesday. "The industrial strike would encompass the entire workforce and it will be a total withdrawal of labour by our members...
Updated 18 minutes ago French Economy, Industry and Digital Affairs Minister Emmanuel Macron has announced the creation of six new French tech hubs in Cape Town, San Francisco, London, Tokyo, New York and Hong Kong. “I am delighted that Cape Town has been designated as a French tech hub....
More
 
 
Recent Research Reports
Construction 2016: A review of South Africa's construction industry (PDF Report)
Creamer Media’s Construction 2016 Report examines South Africa’s construction industry over the past 12 months. The report provides insight into the business environment; key participants; local demand; geographic diversification; corporate activity; black economic...
Energy Roundup – February 2016 (PDF Report)
The February 2016 roundup covers activities across South Africa for December 2015 and January 2016 and includes details of a Government Gazette notice that confirms Cabinet’s decision to move ahead with the 9 600 MW nuclear procurement programme; State-owned power...
Energy Roundup - December 2015 (PDF Report)
The December 2015 roundup includes details of State-owned utility Eskom’s application to claw back R22.8-billion; South Africa’s ranking as an investment destination for renewable energy; and a nuclear expert’s thoughts on reactor designs for South Africa’s nuclear...
Water 2015: A review of South Africa's water sector (PDF Report)
Creamer Media’s Water 2015 Report considers the aforementioned issues, not only in the South African context but also in the African and global context in terms of supply and demand, water stress and insecurity, and access to water and sanitation, besides others.
Input Sector Review: Pumps 2015 (PDF Report)
Creamer Media’s 2015 Input Sector Review on Pumps provides an overview of South Africa’s pumps industry with particular focus on pump manufacture and supply, aftermarket services, marketing strategies, local and export demand, imports, sector support, investment...
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...
 
 
 
 
 
This Week's Magazine
Power and automation company ABB is in the launch phase of its highest payload, multipurpose industrial robot, the IRB 8700. The robot has a reach of 3.5 m and can handle a payload of up to 800 kg. “When designing the IRB 8700, we emphasised reach and payload, as...
Identity and Access Management (IAM) is a critical facet of a connected security ecosystem, as controlling the confidentiality, integrity and authorisation of data access and use is key to securing new digital business channels. However, companies face several...
RORY YOUNG Managed security services provide companies with a means to actively monitor their environment and ward against threats
Data underpins digital business models, the digital economy, the Internet of Things and the fundamental changes in the ways people interact and protecting data is crucial to securing new ways of doing business, says T-Systems South Africa information and...
The City of Cape Town will issue a tender for the procurement of electric buses for its MyCiTi service, in line with the council’s commitment to lower its carbon footprint, says executive mayor Patricia de Lille. The tender, to be advertised early in February, will...
The iSimangaliso Wetland Park Authority signed a R10-million contract last month with local tailings storage facility specialists Cyclone Engineering Projects to remove about 100 000 m3 of dredge spoil obstructing the natural course of the uMfolozi river, in...
 
 
 
 
 
 
 
 
 
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
Subscribe Now for $149 Close
Subscribe Now for $149