Name and Location
Lion ferrochrome complex Phase 2 expansion (Lion II) project, Limpopo, South Africa.

Client
Glencore-Merafe chrome joint venture (JV).

Project Description
The expansion 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-ton-a-year run-of-mine 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
The first furnace came online in April this year and the second furnace about a month later. The plant is now fully operational.

Latest Developments
Merafe has reported that the second line of the Lion II expansion project is complete.

During mid-July 2014, daily ferrochrome production reached more than 60% of design capacity and the plant is expected to reach full capacity within the next year. Production is being ramped up and current plant output is better than forecast.

Key Contracts and Suppliers
Actom Air Pollution Control (baghouses).

On Budget and on Time?
The project was completed on time; however, project expenditure is forecast to be 7% more than the budget originally approved in 2011.

Contact Details for Project Information
GlencoreXstrata media, Charles Watenphul, tel +41 41 709 2462 or email charles.watenphul@glencorexstrata.com.
Merafe Resources, Kajal Bissessor, tel +27 11 783 4780, fax +27 11 783 4789 or email kajal@meraferesources.co.za.
Actom, tel +27 11 820 5111 or fax +27 11 820 5100.