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Energy threat to ferrochrome, Africa mining optimisation, new Zambia copper mine plan

12th September 2014

By: Martin Creamer

Creamer Media Editor

  

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The biggest challenge facing South Africa’s ferrochrome industry is no longer China but the lack of electricity supply, says chrome producer Afarak executive chairperson Dr Alistair Ruiters, a former Department of Trade and Industry director-general. Read on page 14 of this edition of Mining Weekly of the likelihood of South Africa also losing market share to Finland, which has seen a reduction in energy costs. Never mind beneficiation – Ruiters highlights the “debeneficiation” as South African exports more raw chrome ore instead of value-added ferrochrome. He used the seventh South African Ferro-Alloys conference, convened by MetalBulletin Events, to point out that South Africa’s raw chrome ore exports to China have soared from 100 000 t/y in 2004 to six-million tons last year. South Africa currently supplies more than 50% of China’s ore requirements. Government commitments to intervene have not been honoured to a point where there is now no common cause between miners and ferrochrome producers, which could mean more “debeneficiation”. To watch a video on Ruiters discussing ferrochrome’s challenges, scan the barcode with TagReader (at www.gettag.mobi) on your cellphone, or go to ‘Multimedia’ and then to ‘Video Clips’ at www.miningweekly.com.

There are significant opportunities for improvement in the mineral resources industry in Africa, says Steve Burks. Read on page 61 of this edition of Mining Weekly of the first step along the road to improvement requiring an in-depth interaction with the owners’ team and the compilation of the appropriate data into an input model. In his previous columns, Burks discussed the potential of boosting net present value (NPV). Ultimately, the outcome of the study is a report with recommendations that need to be implemented for the potential benefits to be realised. This is then used to apply laid-down methodology and proprietary software to maximise the entire operational value chain. Targeted is an NPV at least 35% higher than the initial unoptimised plan.

Merged ASX-listed companies Blackthorn Resources and Intrepid Mines are expected to start construction of the Kitumba copper project, in Zambia, in the first half of 2016 after the completion of a definitive feasibility study. Read on page 16 of this edition of Mining Weekly of the $680-million project targeting production of 56 000 t of copper a year. Blackthorn shareholders will hold 48% of the combined company and Intrepid shareholders the rest. More exploration within Zambia is expected.

Significant improvement in the platinum and manganese units of the diversified African Rainbow Minerals (ARM) boosted the headline earnings of the black-controlled JSE-listed company by 10% to R4.11-billion in the 12 months to June 30. Read on page 16 of this edition of Mining Weekly of ARM Platinum’s contribution rising 68% to R883-million and ARM Ferrous’s contribution rising 17% to R3.74-billion on higher dollar prices for the company’s high-grade products.

Edited by Martin Zhuwakinyu
Creamer Media Senior Deputy Editor

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