UK registered Interalloys Trading Ltd, together with black owned business partner, Onicaster (Pty) Ltd, announced plans to invest $50m in the Northern Cape between 2017 and 2019. The latest investment aims to ramp up production at their Rooinekke iron-ore mine, near Griekwastad in the Northern Cape.
“The Rooinekke mine is a priority in terms of our global investments and we intend to expand mining operations in the first half of 2017, creating much needed economic activity in the Griekwastad area. Further capital will be invested in the commissioning of our own rail load- out facility to ensure that we have long-term export logistics capacity and can provide a viable option to other emerging miners seeking access to the Transnet iron-ore export channel in the Northern Cape,” explained Interalloys CEO Charles Law.
Law pointed out that the emerging miners are currently reliant on the rail load-out facilities owned by the established iron-ore majors, Kumba and Assmang. “Whilst this support from the majors has provided vital outlets to the export market, these arrangements cannot be relied upon for the long term.” Law states that Interalloys aim to have their own rail loading facility operational by Q3 2018.
Northern Cape born businessman and shareholder of Onicaster, Mzolisi Banga added that: “Our investment is not only a response to legislation. We want to empower other emerging miners and show the community that we care through the creation of meaningful jobs and the opening of business opportunities for potential suppliers and related businesses. This is what Interalloys does where it does business around the world and it is a philosophy that we value wholeheartedly.”
While both Law and Banga are upbeat at the prospects of investing in the Northern Cape, they and fellow emerging miners are still reliant on the ongoing support from the majors to provide interim logistical solutions. This remains a lifeline to ongoing production and also provides the vital confidence required to make these investments.