JOHANNESBURG (miningweekly.com) – With the Kalagadi manganese project now in the development phase, shareholders have already started seeing the benefits of investing in the project, black women-owned Kalahari Resources said on Monday.

Chairperson Daphne Mashile-Nkosi reported that the shareholders, which included mostly historically disadvantaged South Africans (HDSAs) and women's groups, had each been given a share of R223,7-million.

This was following steel giant ArcelorMittal's acquisition of a 50% stake in the project at a purchase price of $432,5-million. About $222,5-million or R1,8-billion was paid to Kalahari Resources.

Mashile-Nkosi noted its deal with ArcelorMittal had meant that wealth was being created for black economic-empowerment groups and individuals, while also being a "mechanism to protect [the company] from further dilution".

She also noted that Kalahari Resources, which was currently responsible for managing the project, had started a process in which it would seek to appoint an HDSA for the positions of CEO, CFO and COO at the project.

To that end, the company had already started a process to train four BCom students in each of these areas, creating a skills pool from which it aimed to appoint executives.

Meanwhile, Kalahari Resources retained 80%, or R1,1-billion, of the funds it had received from the ArcelorMittal deal to develop the project.

Mashile-Nkosi said that the company has completed a bankable feasibility study and has fast-tracked the project. The sinking of the shaft, as well as the procurement of items such as the headgear, had started.

She remained optimistic about the project's future, saying the company still planned to develop a three-million ton a year manganese mine, a 2,4-million ton a year sinter plant and a 320 000 t/y manganese alloy plant, which would be constructed at the Coega Industrial Development Zone.

She would not say what the development costs of the mine would be, saying that the board of directors would meet soon to approve the project costs.

Kalagadi Manganese is 50%-owned by ArcelorMittal, 40%-held by Kalahari Resources, and 10%-owned by State-owned financier the Industrial Development Corporation.

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