Name and Location
Lion ferrochrome complex Phase 2 expansion (Lion II) project, Limpopo, South Africa.
Client
Glencore-Merafe chrome joint venture (JV).
Project Description
The expansion will involve the construction and commissioning of a 360 000 t/y capacity smelter in Steelpoort, Limpopo, and will increase the Xstrata-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.
Value
The development will entail a total capital investment of R4.9-billion and includes R700-million for the concurrent development of the Magareng mine.
Duration
The first furnace came on line in April this year and the second furnace about a month later. The plant is fully operational.
Latest Developments
Glencore’s production lifted appreciably in the third quarter, as a result of the ramp-up of its low-energy Lion II smelter, which is on track to reach full capacity by mid-2015.
Production rose 5% to 939 000 t in the three months to September 30.
Key Contracts and Suppliers
Actom Air Pollution Control (baghouses).
On Budget and on Time?
The project was completed on time; however, project expenditure is forecast to be 7% more than the budget originally approved in 2011.
Contact Details for Project Information
GlencoreXstrata media, Charles Watenphul, tel +41 41 709 2462 or email charles.watenphul@glencorexstrata.com.
Merafe Resources, Kajal Bissessor, tel +27 11 783 4780, fax +27 11 783 4789 or email kajal@meraferesources.co.za.
Actom, tel +27 11 820 5111 or fax +27 11 820 5100.