Name and Location   
Ironveld high-purity iron (HPI), vanadium and titanium project, Limpopo, South Africa.

   Client   
Ironveld.   

Project Description
The project is located in the northern limb of the Bushveld Complex, comprising a group of seven adjacent farms, with the rights covering 165 km2. Combined in situ inferred mineral resources are estimated at 32.9-million tonnes. The plan is to build an initial smelter as a precursor to a much larger pig iron plant, which will be fed with magnetite from the Ironveld project.

The initial smelter will require 15 MW of capacity. Power for the pilot plant is available immediately from an electrical substation 12 km away, at which 20 MW of power is available. Ironveld plans to use all this power.

The full-scale plant will require the construction of four 75 MW dc smelters. The 300 MW for the full-scale plant will be provided by Eskom from late 2018.

The 15 MW pilot plant, which will initially produce high-purity pig iron and high-purity powder, will eventually produce ferrovanadium. The plan will have a projected output of 42 000 t/y of HPI, 415 t/y of vanadium and 8 269 t/y of titanium.

By mid-2015, Ironveld expects to mine 2.4-million tonnes a year of magnetite as feedstock for its eventual one-million-tonne-a-year plant, which will also produce vanadium and titanium by-products.

Net Present Value/Internal Rate of Return
Not stated.

Value
The initial investment is estimated at $60-million, with the eventual larger plant requiring capital expenditure of $938-million.

Duration
The project is slated to start production in late 2015 and has a projected life of more than 25 years.

Latest Developments
Ironveld has reported that discussions are ongoing, with draft term sheets being discussed, and interest levels remaining high and resilient to the cyclicality of the market.

Due diligence is proceeding steadily with the debt funders and potential broad-based black economic-empowerment (BBBEE) partner funders who have indicated that they might provide funding for the project, in addition to BBBEE funding.

Draft construction contracts for the smelter being circulated are progressing significantly.

Requests for quotes for mining operations will be issued before the end of August.

In addition, Ironveld is implementing its critical infrastructure programme, with the design of the electrical infrastructure completed ahead of schedule and below budget. Also, with the necessary applications for the lease of land and water being in hand(, such  that) it is expected that these will be delivered in line with the project schedule.

Key Contracts and Suppliers
MSA Group (exploration); Setpoint Laboratories (assaying); Mintek (metallurgical testwork); and Geoserve (drilling).

On Budget and on Time?
The project is within budget and on time.

Contact Details for Project Information
Ironveld, tel +44 203 397 2071 or email contact@ironveld.com.
MSA Group, tel +27 11 880 4209, fax +27 11 880 2184 or email info@msagroupservices.com
Setpoint Laboratories, tel +27 11 923 7100 or fax +27 11 923 7029.
Mintek, tel +27 11 709 4111 or fax +27 11 793 2413.
Geoserve, tel +27 11 907 3463 or fax +27 11 907 3485.