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

Client
Kalagadi Manganese is held by ArcelorMittal Société Anonyme (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 input required to produce this amount of sinter will be three-million tons a year of manganese ore.

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 project is targeting October 2019 for steady-state production of 2.4-million tonnes a year of sintered manganese.

Latest Developments
Kalagadi Manganese has slowed plans to build the smelter plant, which will involve an investment of R4-billion to produce high-carbon ferromanganese, as the company does not currently have the capacity to raise capital.

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 structural, mechanical, platework and piping); Outotec (sinter plant) and Murray & Roberts (mining contract).

On Budget and on Time?
Not stated.

Contact Details for Project Information
Kalagadi Manganese, tel +27 11 808 2000, fax +27 86 673 2122 or email info@kalagadi.co.za.
Camden Geoserve, email info@geoserveafrica.com.
MDM Engineering, tel +27 11 993 4300, fax +27 11 886 9306 or email info@mdm-engineering.com.
Group Five, tel +27 10 060 1555, fax +27 86 206 2885 or email info@groupfive.co.za.
Grinaker LTA, tel +27 11 923 5000.
Outotec, tel +27 12 649 0100 or fax +27 12 649 012.