Name of the Project
Elandsfontein phosphate project.

Location
Saldanha Bay, in the Western Cape, South Africa.

Client
The Elandsfontein project is held by Kropz (70%), African Rainbow Capital, or ARC (25%) and a smaller empowerment partnership (5%). Ubuntu Botho Investments forms part of the ARC structure.

Project Description
The Elandsfontein phosphate deposit is the largest sedimentary phosphate deposit in South Africa.

The phosphate mineralisation is contained in the Varswater formation, with the phosphate occurring in phosphatised shell fragments and phosphorite pellets. The remainder of the deposit consists of silica sand and calcium oxide.

The operation will be limited to a fenced-off area of 500 ha, which will contain the excavation area, processing plant and office. At any time, the open area of the mine excavation will be limited to 60 ha.

The sandy nature of the Elandsfontein deposit means that the phosphate can be upgraded without significant crushing and milling requirements often associated with rock processing.

A major component of the project will be the processing facility and its associated infrastructure, with a design capacity to produce 1.35-million tons a year of phosphate concentrate.

Included in the process will be screening, classification, milling, reverse flotation, dewatering and product handling.

Tailings will be dewatered by belt filter before dry stacking.

Potential Job Creation
At full production, Elandsfontein will provide direct employment for 450 people, 70% of whom from the local municipality. 

Net Present Value/Internal Rate of Return
Not stated.

Value
Not stated.

Duration
Not stated.

Latest Developments
ARC has announced delays to its 25%-owned Elandsfontein phosphate mine.

It is now expected that the mine and plant will be fully commissioned only in August 2019, rather than at the end of this year, as previously expected.

“We had to look at our processes . . . The phosphate is embedded in silica and to get the phosphate out to the required concentration, you need a particular process, such as reverse osmosis, which works well for the most part, but it does not consistently get us to the 30% concentration that we require,” ARC CEO Johan van Zyl has said.

Therefore, ARC and fertilised feed minerals miner Kropz, which owns 70% of the mine, need to augment the reverse osmosis process with an additional process, of which there are two or three options available.

Van Zyl has noted that this is a common occurrence for phosphate deposits globally, so it is not a new issue for the mine.

“We have received proposals from experts in Australia, Israel and Canada, who have weighed in on how the process can be augmented.”

Much of the time lag up to August 2019 is owing to ARC and Kropz wanting to ensure the right processes are implemented, after which building or acquiring additional equipment will follow.

“It is not a major addition, but it will take time,” Van Zyl has noted.

Depending on the experts’ process recommendations, the cost will vary.  

Kropz CEO Ian Harebottle has indicated reverse flotation will still be used to recover the apatite, but with some enhancements to the process being considered to support improved operating efficiencies in the longer term. 

"Securing additional capital remains a priority. We are still confirming the proposed circuit modifications to ensure sustainable future production. Construction is expected to start towards the end of 2018.

Various funding and investment options continue to be explored to ensure the best possible outcome for the project and all stakeholders.

Meanwhile, Kropz, which has invested $120-million in its 95% complete Western Cape processing facility, is finalising the process plant design.

The boxcut has been developed and ore has been opened for what will be an estimated 15-year life-of-mine.

The plant can supply 1.35-million tonnes of phosphate rock into the market, with an important aspect of the concentrate being that it is very low in cadmium and heavy metals.

Minopex has been contracted to operate the plant, with associate company DRA Global being awarded the engineering, procurement and construction management (EPCM) contract.

VDM Transport has been contracted to haul the concentrate from the mine site to the deep-water Port of Saldanha, which is 50 km away and accessed by national freight routes.

Kropz has secured offtake agreements for all its production.

Many additional boreholes have been drilled across the resource and initial metallurgical sample testing returned from Tenova, in Israel, is positive.

Changes to the processing plant are likely to be minimal and the cost of implementing the required changes is being calculated to get back into production as soon as possible.

While this has been taking place, water has been continually pumped out of the aquifer for recharging downstream to draw down the water levels within the mining area.

Key Contracts and Suppliers
DRA (EPCM), Minopex (processing plant operation), VDM Transport.

On Budget and on Time?
The plant’s commissioning was paused in August 2017, when it was hit by depressed phosphate prices, delayed water drawdown in the pit and the inability to produce a 32% grade for sale to the market.

The plant was consequently placed on care and maintenance in September so that its weaknesses could be strengthened through robust redesign.

Contact Details for Project Information
Kropz, tel +27 21 930 0927 or email info@kropz.com.