Kalagadi Manganese secures R2.2bn bank loan
Integrated manganese developer Kalagadi Manganese has secured a R2.2-billion ($202-million) loan from the African Development Bank for its mine, sinter plant and part of the proposed smelter complex.
African Development Bank (AfDB) group CEO Haidara Alhassane announced last week that the women-led project dovetailed well with the bank’s development strategy.
“This fits well with the direction we want to follow,” Alhassane said at a media conference on the sidelines of the Investing in African Mining Indaba.
The 11-year loan, at an undisclosed interest rate, has a two-year grace period, he added.
Developmental funding insti- tutions like the AfDB give longer loan tenure at favourable rates of interest, which facilitates development.
Kalagadi chairperson and cofounder Daphne Mashile-Nkosi, accompanied by Mineral Resources Minister Susan Shabangu, said the sinter plant, which was hot-commissioned on January 6, was currently producing at a rate of 2 000 t a day.
Mashile-Nkosi reported that funding was also being secured for the unfunded portion of the smelter, which is to be built within the Coega industrial development zone at the deep-water Ngqura port, near Port Elizabeth.
The smelter is designed to yield 320 000 t of high-carbon ferromanganese a year and, of the 2.4-million tons of sinter expected to be produced a year, 700 000 t is earmarked for the smelter and the rest will be exported.
Kalagadi has secured a product offtake agreement with the JSE-listed Metmar.
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