Name of the Project
Elandsfontein phosphate project.
Location
Saldanha Bay, in the Western Cape, South Africa.
Project Owner/s
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 project has the capacity to deliver one-million-tonnes a year of phosphate rock concentrate at steady state, with an initial mine life of about 14 years.
Potential Job Creation
Not stated.
Net Present Value/Internal Rate of Return
Not stated.
Capital Expenditure
Kropz has spent $120-million to bring its Elandsfontein phosphates mining and processing project into production and requires an additional $16-million to cover its augmentation.
Planned Start/End Date
Not stated.
Latest Developments
Kropz has said that the Water Tribunal has requested continuation of the hearing against Elandfontein’s invalid integrated water-use licence (WUL), which is expected to resume on February 6, 2020.
The appeal hearing was heard by the Water Tribunal from December 11 to 13, 2019.
In order to allow the Tribunal the appropriate opportunity to fully review the matter, Kropz has said that it willnot be providing further comment on the official proceedings until the Water Tribunal has announced its decision.
The timing of the decision is currently unknown.
Pending the Tribunal's decision, there is no legal impediment to the continuation of the water-use activities authorised in the integrated WUL.
Key Contracts and Suppliers
DRA (EPCM), Minopex (processing plant operation) and VDM Transport.
On Budget and on Time?
The plant’s commissioning was paused in August 2017 because of 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.