Alternative processing method established for Kropz phosphate mine

3rd April 2020

By: Natasha Odendaal

Creamer Media Senior Deputy Editor

     

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An alternative processing method for Aim-listed emerging phosphate explorer and developer Kropz’s Elandsfontein project, in the Western Cape, has been confirmed to produce saleable concentrate, investment fund African Rainbow Capital (ARC) says.

The advanced-stage phosphate mining project has faced several setbacks and delays, with operations postponed until additional laboratory and pilot plant testing can be undertaken and funding procured.

ARC, of whom Patrice Motsepe is chairperson, holds 49.3% of the issued shares in Kropz.

ARC co-CEO Dr Johan van Zyl says the orebody at Elandsfontein was found to be more complex than initially anticipated in terms of particle size distribution and grade variability.

This meant a modification to the original circuit was required to achieve the desired consistent phosphate grade.

In a company update in February, Kropz noted that supplementary design work had been completed to advance the front-end engineering, and it had been determined that additional equipment, infrastructure and modifications to the original plant were needed to cater for the requisite process modifications.

Some 14 months of additional testwork, however, instilled confidence that the proposed modifications to the processing plant would produce the required final saleable concentrate at the desired yields after identifying and confirming a robust processing alternative to the previous flotation circuit.

“The processing plant will produce a final saleable concentrate to the expected specification of 68% bone phosphate of lime and about 31% phosphorus oxide, using a flotation configuration of direct, followed by a reverse, flotation circuit,” said Van Zyl.

“We have a plan – it looks good. The technical solution has been tabled and we are working towards implementation,” he told investors during a webcast of ARC’s results for the six months ended December 31.

Commissioning of the mine and plant was initially scheduled for the end of 2017.

According to the company, the target date for commercial production at Elandsfontein is now the fourth quarter of 2021.

As of February, the key milestone dates for the project, subject to funding arrangements, are the end of February for the scope freeze, July for the site establishment, August 2021 for commissioning commencement and September 2021 for first ore through the plant, with production ramp-up expected over a period of six months from first-ore date.

As a consequence of various delays, Kropz Elandsfontein is in technical default on its $30-million project finance facility from BNP Paribas (BNPP), with the company at an advanced stage of discussions to restructure this facility.

“The ARC fund has received investment committee approval to support the Kropz Group’s funding requirements to bring Kropz Elandsfontein into production, subject to reaching agreement with BNPP.”

Edited by Martin Zhuwakinyu
Creamer Media Senior Deputy Editor

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