Lion ferrochrome complex Phase 2 expansion project, South Africa
Name and Location
Lion ferrochrome complex Phase 2 expansion (Lion II) project, Limpopo, South Africa.
Client
Xstrata-Merafe chrome joint venture (JV).
Merafe Resources holds a 20.5% interest in the JV and has an option to participate in the expansion.
Project Description
The expansion of the ferrochrome complex will involve the construction and commissioning of a 360 000 t/y capacity smelter in Steelpoort, Limpopo, and will increase the Xstrata-Merafe chrome JV's total ferrochrome capacity to more than 2.3-million tons a year.
The expansion will reduce the overall cost of the JV's total ferrochrome production by about 6%. The project includes the concurrent development of the 1.2-million run-of-mine tons a year Magareng chrome mine within the Thorncliffe mine complex.
Value
The development will entail a total capital investment of R4.9-billion and includes R700-million for the concurrent development of the Magareng mine.
Duration
First ferrochrome production is scheduled for the second half of 2013.
Latest Developments
The commissioning of Lion II is expected during the second half of 2013.
About 50% of the budgeted cost of R1-billion has been incurred to December 31, 2012.
Once this plant is fully operational, additional consumption efficiency improvements and cost savings are expected to materialise.
Key Contracts and Suppliers
None stated.
On Budget and on Time?
In spite of heavy rainfalls and community unrest, the expected commissioning date is still envisaged for the second half of 2013 and the project remains within budget.
Contact Details for Project Information
Merafe Resources, tel +27 11 783 4780, fax +27 11 783 4789 or email kajal@meraferesources.co.za.
Xstrata media, Alison Flynn, tel +44 20 7968 2838 or email aflynn@xstrata.com.
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