Kalagadi Manganese project, South Africa

21st March 2014

By: Sheila Barradas

Creamer Media Research Coordinator & Senior Deputy Editor

  

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Name and Location
Kalagadi Manganese project, Northern Cape and Eastern Cape, South Africa.

Client
Kalagadi Manganese is held by ArcelorMittal South Africa (50%), Kalahari Resources (40%) and the Industrial Development Corporation (10%).

Project Description
The project involved the construction of a manganese mine and a 2.4-million-ton-a-year high-grade sinter plant (Umtu sinter plant), near Hotazel, in the Kuruman area of the Northern Cape.

The output required to produce this amount of sinter will be three-million tons a year.

An additional component of the project is the construction of a 320 000 t/y high carbon ferromanganese smelter complex, in the industrial development zone (IDZ) of the Coega deep-water harbour, in the Eastern Cape.

The plant will be designed to produce silicomanganese as an alternative product.

The smelter will be situated in Zone 6 of the IDZ metallurgical zone and provision will be made to expand the facility to as much as double the original production of 320 000 t/y of high carbon ferromanganese.

The project area overlies the Kalahari basin, which is estimated to contain 80% of the world’s known high-grade manganese resources.

An evaluation of historically available information indicates that up to 960-millon tons of mineable resources could exist under the 8 000 ha prospecting area.

Value
R11-billion, which will be funded by 40% equity and 60% debt.

Duration
The mine, sinter and associated infrastructure project is expected to be completed by the end of 2014.

Latest Developments
Kalagadi Manganese has secured a R2.2-billion loan from the African Development Bank (AfDB) for its mine, sinter plant and part of the proposed smelter complex.

The 11-year loan, with an undisclosed interest rate, has a two-year grace period.

Developmental funding institutions like the AfDB give longer loan tenure at favourable terms, which facilitates development.

The sinter plant, which was hot commissioned on January 6, is currently producing at a rate of up to 2 000 t/d.

Funding is also being secured for the unfunded portion of the smelter, which is to be built in the Coega IDZ at the deep-water Ngqura port, near Port Elizabeth.

The smelter is designed to yield 320 000 t/y of high-carbon ferromanganese and, of the 2.4-million tons of sinter expected to be produced a year, 700 000 t is earmarked for the smelter and the rest will be exported.

Kalagadi is finalising a product offtake agreement with the JSE-listed Metmar.

Key Contracts and Suppliers
Camden Geoserve (geological consultant); MDM Engineering (bankable feasibility study, front-end engineering and design; engineering and construction management); Group Five (civils and building contractor); Grinaker-LTA (shaft sinking and rail); Tubular (main and ventilation shaft headgears) and Outotec (sinter plant).

On Budget and on Time?
The project is on track and is expected be commissioned by July 2014.

Contact Details for Project Information
Kalagadi Manganese, tel +27 11 808 2000, fax +27 86 673 2122 or email info@kalagadi.co.za.

Edited by Creamer Media Reporter

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