Name of the Project
Elandsfontein phosphate project.
Location
Saldanha Bay, in the Western Cape, South Africa.
Client
The Elandsfontein project is held by Kropz (70%), African Rainbow Capital, or ARC (25%) and a smaller empowerment partnership (5%). Ubuntu Botho Investments forms part of the ARC structure.
Project Description
The Elandsfontein phosphate deposit is the largest sedimentary phosphate deposit in South Africa.
The phosphate mineralisation is contained in the Varswater formation, with the phosphate occurring in phosphatised shell fragments and phosphorite pellets. The remainder of the deposit consists of silica sand and calcium oxide.
The operation will be limited to a fenced-off area of 500 ha, which will contain the excavation area, processing plant and office. At any time, the open area of the mine excavation will be limited to 60 ha.
The sandy nature of the Elandsfontein deposit means that the phosphate can be upgraded without significant crushing and milling requirements often associated with rock processing.
A major component of the project will be the processing facility and its associated infrastructure, with a design capacity to produce 1.35-million tons a year of phosphate concentrate.
Included in the process will be screening, classification, milling, reverse flotation, dewatering and product handling.
Tailings will be dewatered by belt filter before dry stacking.
Potential Job Creation
At full production, Elandsfontein will provide direct employment for 450 people, 70% of whom from the local municipality.
Net Present Value/Internal Rate of Return
Not stated.
Value
Not stated.
Duration
Not stated.
Latest Developments
Kropz has secured several offtake agreements ahead of production.
The cornerstone offtake agreement, for about one-third of Kropz's production at market prices that will be negotiated yearly, is with Foskor, South Africa’s only vertically integrated producer of phosphate ore, phosphoric acid and granular fertiliser, in which State-owned Industrial Development Corporation has the controlling shareholding.
Once production ramps up, Kropz will ship phosphates from the Port of Saldanha to Richards Bay, in KwaZulu-Natal, where the Foskor plant is located. This will be done at a transport cost lower than what it costs Foskor to transport material from its own mine in Phalaborwa, in Limpopo, to Richards Bay.
Besides being a rand hedge for Foskor, the low cadmium content of the Kropz ore will also provide Foskor with greater efficiency potential.
Kropz’s other offtake agreements already concluded include marketing into the Americas and India through major trading companies.
Kropz says that it does not expect to struggle to sell its “rock”.
In finalising the design of its plant, the company is targeting lower initial output numbers, at which it will still be profitable, ahead of ramping up towards its capacity of between 1.2-million tons and 1.5-million tons.
Key Contracts and Suppliers
DRA (EPCM), Minopex (processing plant operation), VDM Transport.
On Budget and on Time?
The plant’s commissioning was paused in August 2017, when it was hit by depressed phosphate prices, delayed water drawdown in the pit and the inability to produce a 32% grade for sale to the market.
The plant was consequently placed on care and maintenance in September so that its weaknesses could be strengthened through robust redesign.
Contact Details for Project Information
Kropz, tel +27 21 930 0927 or email info@kropz.com.