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 project has the capacity to deliver one-million-tonnes a year of  phosphate rock concentrate at steady state, with an initial mine life of about 14 years.

Potential Job Creation
Not stated. 

Net Present Value/Internal Rate of Return
Not stated.

Value
Kropz has spent $120-million to bring its Elandsfontein phosphates mining and processing project into production and requires an additional $16-million to cover its augmentation.

Duration
First ore to be produced by the end of 2019.

Latest Developments
Kropz is finalising the design of processing plant upgrades at the Elandsfontein project. The mine will ramp up to steady-state production of one-million tonnes a year during 2020 at a grade of about 32% phosphate rock concentrate.

Kropz has spent about $120-million to date on developing the project, with a significant portion having been spent on putting green mining practices in place.

The Elandsfontein property is situated on an aquifer, which has raised environmental concerns from stakeholders.

The mine pumps out about seven-million litres of water a day, which is put back into the ground at the same rate as if it were to occur naturally. The company also aims to rehabilitate the ground after its projected 14-year mine life to the extent that it is in a better state than before mining started.

The company continuously undertakes groundwater monitoring to ensure there is no environmental disturbance.

Kropz still needs to invest $16-million – mostly on equipment – up to first ore production.

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

On Budget and on Time?
The plant’s commissioning was paused in August 2017 because of 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.