Production from the first furnace at the Lion ferrochrome complex Phase 2 (Lion II) expansion project, in Limpopo, South Africa, which is owned by the Glencore-Merafe chrome joint venture (JV), started on April 6, this year.
The JV partners – diversified mining major Glencore and ferrochrome producer Merafe Resources – expect that ferrochrome production at the plant will ramp up gradually and that the smelter will be fully operational by the middle of this year.
Project Description
The expansion involves the construction and commissioning of a 360 000-t/y- capacity smelter in Steelpoort, Limpopo, and will increase the Glencore-Merafe chrome JV’s total ferrochrome capacity to more than 2.3-million tons a year.
The expansion will reduce the overall cost of the JV’s total ferrochrome production by about 6%. The project includes the concurrent development of the 1.2-million-ton-a-year run-of-mine Magareng chrome mine within the Thorncliffe mine complex.
Premus Technology
Lion II will be constructed using the proprietary low-energy Premus technology, which is currently in use at the JV’s Lydenburg and Lion I smelters and ensures low production costs.
Despite rising energy costs, Premus keeps the company in the lowest quartile of the global ferrochrome production cost curve.
Project Value
The development of Lion II will entail a total capital investment of R4.9-billion and includes R700-million for the concurrent development of the Magareng mine.
Duration
First ferrochrome production is scheduled for mid-2014.
Key Contracts and Suppliers
Air cleaning and dust control company Actom Air Pollution Control will supply baghouses to Lion II.
On Budget and on Time?
The overall project remains on schedule and within budget and it is envisaged that the smelter will be fully operational by the middle of this year.