The Eastern Cape Development Corporation (ECDC) on Tuesday unveiled its latest mining investment play – a R200-million aggregate mine in Indwe, in the Eastern Cape, with two offtake agreements already inked.
The development financier, which injected R736 000 to prepare the privately-owned farm site for the operations of the Blue Crane mine, called for more investment and additional offtake agreements for the operation, which has a 30-year mine life.
Initially approached by Blue Crane Resources and Minerals directors Sydney Stina and Mcebisi Limba, the ECDC undertook geotechnical surveys, drilling and laboratory testing, completed the environmental-impact assessments and secured authorisation, and developed a mining works programme, the site layout plan, business planning and financial modelling.
It also successfully negotiated two offtake agreements, with one agreement to produce 400 000 t of crush stone initially, reaching 800 000 t by the end of May.
“Subsequent offtake agreements and contracts will be financed through the ECDC,” ECDC CEO Buhle Dlulane said in a statement.
While Blue Crane’s primary focus was supplying standard concrete stone products, crusher sand, specialised road stone and base course products, nonstandard rock and crush products, the group was mulling the opportunities presented by other products, such as sand, ready-mix concrete, bricks and blocks.
“This operation presents exciting investment opportunities, as it still requires some R200-million to fully equip it,” he concluded.