The official opening of the new Fairbreeze heavy mineral sands mine, in KwaZulu-Natal, provides an interesting insight into the currency dividend that global companies receive from operating in South Africa.
It also throws light on the advantage of vertical integration at a time of weak commodity prices.
The interesting technology solution in use also shows how the smart use of water can result in a net gain of the precious liquid, especially during periods of drought.
Located near Mtunzini, 45 km south-west of Richards Bay, the new mine replaces the nearby and now rehabilitated Hillendale operation as a producer of titanium dioxide for developing company Tronox’s own pigment plants in the US, Holland and Australia. (Also see page 13 of this edition of Mining Weekly).
As a white, refractive and ultraviolet absorbing product, titanium dioxide pigment is commonly used in architectural and automotive paints, plastics, paper, textiles and inks.
Tronox’s vertical integration and internalisation opportunities have played a crucial role in its ability to navigate the commodity- price downturn, with the weakening of the rand against the dollar benefiting the company significantly.
KwaZulu-Natal Premier Senzo Mchunu heaped praise on Tronox chairperson and CEO Tom Casey for not only investing through the downturn, but also continuing to employ some 200 personnel for nearly two years while the new Fairbreeze mine was constructed to replace Hillendale.
It is also interesting to note that 45% of the NYSE-listed Tronox, which also operates Namakwa Sands on the West Coast, is owned by the JSE-listed company Exxaro, which is controlled by historically disadvantaged South Africans.
What distinguishes Fairbreeze from many of the other heavy minerals operations is the very high fines content of its orebodies.
As a result, the dredges and ponds normally associated with heavy minerals mining are nowhere to be seen.
Instead, hydraulic monitor guns come into view as the primary mining method, with studies proving that their use is the next cheapest mining method after dredging.
The locally built hydraulic monitor guns mine at 1 200 t/h, sending the run-of-mine ore to a three-stage spiral plant, where the fine material is recovered, most of it –2 micron in size.
Although the use of the water guns gives one the impression that more water is being used than would be the case with dredging, Tronox reports that, at the end of it all, a net water gain is achieved with the help of rainfall.
Rehabilitation of mined areas takes place while mining proceeds and once the orebodies are mined, the top soil will be replaced and the vegetation regrown, as has been the case with Hillendale, where sugar cane is once again very much in sight.
Interestingly, the R3.3-billion project has been 25 years in the making after first being explored by the former State steel company Iscor, which was looking for vanadium but found ilmenite instead.