Broad-based black economic-empowerment (BBBEE) company Dziviri Potash, which is jointly owned by indus- trials investment companies Arkein International, Leruo MMVM Investment Holdings and Prograce Investments, acquired 26% of South African reagent chemicals trader ChemQuest earlier this month.
This acquisition forms part of Arkein International’s mineral beneficiation strategy.
Chemical reagents traded by ChemQuest include xanthates, depressants, frothers, activated carbon and flocculants for the mining and mineral processing industry.
“Arkein International’s portfolio largely consists of mineral processing and beneficiation projects and the main cost driver in these projects is the reagents used in the process. “ChemQuest supplies most of these reagents to the mineral processing industry and Dziviri Potash’s intention is to add manufacturing and supply capacity of the reagents to the larger group,” Arkein International CEO and Dziviri Potash director Donovan Chimhandamba tells Mining Weekly.
Control of reagents costs is key for projects, such as Arkein International’s Zambian copper concentrate project, which is being undertaken in conjunction with Konkola Copper Mines.
“This acquisition is at the centre of our beneficiation strategy and strengthens our ability to deliver value to our shareholders in the long term.” Centre of Excellence “ChemQuest will become the centre of excellence in the group, which will procure and supply the group’s projects with mineral processing chemicals,” he says.
Meanwhile, ChemQuest will immediately expand its customer base and long-term revenues through this acquisition, as it will become the preferred supplier of mineral processing chemicals for the group’s controlled projects across Africa.
This transaction also makes ChemQuest BBBEE-compliant, which will enable the company to attract new customers, Chimhandamba says.
Review
ChemQuest metallurgists and process engineers are reviewing Arkein International’s long-term reagents requirements to draw up a strategy to ensure that the group will have long-term security of supply and price stability with regard to mineral processing chemicals.
“We are investing for the long term and we intend to strengthen and potentially increase our share- holding in the foreseeable future,” Chimhandamba concludes.