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 the capacity to deliver one-million-tonnes a year of phosphate rock concentrate at steady state, with an initial mine life of about 14 years.

Potential Job Creation
Not stated. 

All-in Sustaining Costs/All-in Costs
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
Kropz plans to start commercial production from Elandsfontein in the last quarter of 2021.

Latest Developments
Kropz has raised about $350 000 through an equity placing with chairperson Robin Renwick and interim CEO Mark Summers at 6.75p an ordinary share.

Additionally, Kropz has launched an open offer to existing shareholders to raise up to $4-million at the same issue price.

This follows the company announcement in mid-May of an equity facility, whereby its major shareholder, ARC, committed to provide up to $40-million for Kropz, which will be converted into new ordinary shares at the issue price.

ARC has indicated that it wants to subscribe for about 25-million open offer shares, equal to $2-million.

The equity placing shares will be admitted to trading on Aim from June 4, while the open offer shares will be admitted closer to June 19.

The proceeds of all the fundraising and facilities will be used to bring the Elandsfontein phosphate project into production and advance a new feasibility study for the Hinda project, in Congo-Brazzaville.

In addition to the legal issues that the company has been tackling, with regard to water, since 2017, the processing facility has also had to be modified to achieve the desired consistent phosphate grade, which involves additional testwork and equipment modifications.

Key Contracts and Suppliers
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.