Kalagadi Manganese project, South Africa

30th March 2018 By: Sheila Barradas - Creamer Media Research Coordinator & Senior Deputy Editor

Kalagadi Manganese project, South Africa

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.