The Eastern Cape Development Corporation (ECDC) has spent R736 000 in preparing a quarry, which will have a future value of R200-million, in Indwe, about 120 km from Queenstown, in the Eastern Cape.

The mine is set to produce aggregate, with the ECDC expecting the mine to have a life span of 30 years. “It is ripe for private- and public-sector investment opportunities as well as additional offtake agreements,” says ECDC deputy chairperson Loyiso Jiya.

The ECDC has committed its investment towards conducting geotechnical surveys, drilling and laboratory testing, environmental-impact assessments and authorisations, mining works programme development, site layout planning, business planning and financial modelling, as well as market offtake negotiations.
“This operation presents exciting investment opportunities as it still requires some R200-million to fully equip it,” he adds.

The quarry is situated on 1 000 ha of land, with a plant (worth about R150-million) being hired to facilitate the starting up of operations. The plant includes machinery and earthmoving vehicles.

ECDC CEO Buhle Dlulane says the quarry has secured two offtake agreements and is already negotiating supply contracts with a local municipality for 1 500 reconstruction and development houses as well as several companies in the road construction business.

“Subsequent offtake agreements and contracts will be financed through the ECDC. The plan is to gradually expand operations and supply capacity beyond the 200 ha the mine currently occupies and to use the available land for additional production capacity,” he notes.

“The ECDC is also pleased with the initial approach by Blue Crane Resources &Minerals directors Sydney Stina and Mcebisi Limba, who found the Indwe site and identified it as carrying aggregate quarry. Although located on a private farm owned by Willem Stapelberg, Blue Crane Resources & Minerals, with the help of the ECDC, has successfully negotiated a partnership agreement with the farm owner,” adds Dlulane.

Limba says Blue Crane Resources & Minerals’ primary focus is on supplying standard concrete stone products, crusher sand, specialised road stone and base course products, nonstandard rock and crush products. In addition, Blue Crane Resources and Minerals is investigating other products, such as sand (building, river and plaster sand), ready-mix concrete, sabhunga and bricks and blocks.

With the business and quarry operations being accessible from the R63 road between Indwe and Dordrecht, the location is in close proximity to various government infrastructural developments in the former Transkei region. “As a result, Blue Crane Resources & Minerals has already secured an in-principle agreement with the company that has been appointed by the South African National Roads Agency to build a road between Elliot and Barkly East, and another road from Indwe to Ugie and Maclear,” says Limba, adding that the cost of the aggregates required is estimated to be in the region of tens of millions of rands.

“In addition, the enterprise is also soliciting opportunities from the new 17 km road construction from Indwe to the Elitheni coal mine, in Guba Village, which requires aggregates estimated at more than R30-million, as well as an approved low-cost housing development for 1 500 units for Guba Village with potential cost of aggregates being more than R27-million,” he adds.

The company currently employs 40 people from the local community and intends to increase the number once the offtake agreements that are under negotiation have been signed.