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MANGANESE
R3,2bn Kalagadi manganese project to be fast-tracked
 
25th June 2007
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The proposed R3,2-billion Kalagadi manganese project was being fast-tracked, Kalahari Resources chairperson Daphne Mashile-Nkosi told Mining Weekly Online on Monday.

Mashile-Nkosi said the project’s request for proposals (RFPs) had attracted 16 potential joint venture partners from around the world, and that these would be shortlisted on Tuesday.

A final decision on which proposal to accept would be made before the end of July, Mashile-Nkosi said.

The Kalagadi managanese project, in which South Africa’s State-owned Industrial Development Corporation (IDC) is a 20% shareholder, consists of a mine and sinter plant in the Northern Cape and a ferro-manganese smelting plant at the industrial development zone in Coega, near Port Elizabeth.

David Wellbeloved, technical director of Kalahari Resources, which holds 80% of the Kalagadi project, told Mining Weekly Online that mine plans were being significantly scaled up, from 1,5-million tons a year, to the new level of 3-million tons a year.

The first manganese production was now scheduled to be exported from December 2008, three months ahead of the original schedule.

A resource of 39-million tons had already been proven at a grade of 38,9% manganese, with more drilling still under way.

The mine would operate in the lowest-cost quartile and its cost-effectiveness would be enhanced by its ability to implement mechanised mining.

IDC mining head Abel Malinga said the IDC would stand behind the project to see it through to its final fruition and had already invested R60-million for the now-advanced feasibility study.

He said that the support that IDC was giving to the Kalagadi project was a good example of that which it was prepared to lend to South African junior miners and was standing by to do much more for those junior minign companies with viable mining projects.



Edited by: Martin Creamer

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