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 an initial mine life of about 14 years and can deliver one-million tonnes a year of phosphate rock concentrate at steady state.
The processing plant will produce a final saleable concentrate to the expected specification of 68% bone phosphate of lime and about 31% phosphorus oxide using a flotation configuration of direct, followed by a reverse flotation circuit.
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
The target date for commissioning has been moved to the fourth quarter of 2021.
Latest Developments
Kropz has indicated that its original equity facility funding may not be sufficient to commission the Elandsfontein project during the fourth quarter, depending on how the rand strengthens against the dollar.
The company announced on June 30 that the project continues to progress within budget and should be commissioned in the fourth quarter.
While earthworks and civil construction are complete, the fabrication, installation and assembly of structural steel, platework and piping is ongoing.
The funding shortfall pertains to the original equity facility it has in place with ARC, the company has said.
Kropz entered into the facility with ARC in May 2020 for $40-million (a maximum of R680-million). This, together with existing cash of $12-million, or about R200-million, was being used at the time to develop Elandsfontein.
The company subsequently entered into a further equity facility with ARC pertaining to the Hinda project, in Congo-Brazzaville, while it undertook a placement in May 2020 that raised $2.1-million for working capital purposes.
Meanwhile, Transnet and Elandsfontein are working on a revised solution for the export of Elandsfontein’s phosphate rock product. Following several meetings, Transnet has given assurances to deliver a long-term port access agreement for the export of Elandsfontein’s phosphate rock through the Port of Saldanha Bay.
Exports through Cape Town will be included in the agreement as a mitigation measure, should capacity through Saldanha be unavailable.
Key Contracts, Suppliers and Consultants
DRA (engineering, procurement and construction management); Minopex (processing plant operation) and VDM Transport.
Contact Details for Project Information
Kropz, tel +27 21 930 0927 or email info@kropz.com.