Chrome ore is becoming increasingly strategic for platinum mining company Northam Platinum.
The JSE-listed company, which produced 45.1% more chrome in the 12 months to June 30 than in the prior year, expects to be producing at a rate of one-million tonnes of chrome ore a year as it doubles platinum production through a suite of four growth projects under way at a capital cost of R5.5-billion.
“Chrome is becoming an important business segment for us,” Northam CEO Paul Dunne said at the company’s presentation of results.
The 538 405 t of chrome ore that Northam produced in the 12 months to June 30 was 167 354 t more than in the corresponding period last year and this will continue to rise as Northam executes four new growth projects at a capital cost of R5.5-billion.
In response to Mining Weekly, Dunne described the 500 000 t of chrome produced and sold as a “significant volume in the world market for this product”.
Northam is producing more chrome-containing upper group two (UG2) reef at both its Booysendal and Zondereinde platinum mines, which is lifting chrome volume.
“That number’s going to be very important; it’s going to grow. As Northam’s production doubles, so will chrome production. A million tonnes of chrome production is a very strategic parcel in world terms,” Dunne added.
Because of the substantial volumes, the company is partnering global mining and marketing company Glencore, which will take charge of its chrome marketing.
In the 12 months to June 30, 16% more UG2 tonnes were milled at Booysendal and 13.2% more at Zondereinde.
• Earlier this month, Anglo American Platinum announced the commissioning of a new chrome recovery plant at its Amandelbult platinum mine as one of its fast-payback, low-capital-expenditure growth projects, motivated by the suboptimal dumping of chrome-containing UG2 tailings.