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

The processing plant will produce a final saleable concentrate to the expected specification of 68% bone phosphate of lime and about 31% phosphorus oxide using a flotation configuration of direct, followed by a reverse flotation circuit.

Potential Job Creation
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
The target date for commissioning at the project has been moved to the fourth quarter of 2021.

Latest Developments
Kropz has made its second quarterly drawdown request of $4-million under the equity facility with its major shareholder, the ARC Fund.

The second drawdown will be paid through the issuing of 50.96-million new ordinary shares at 6.75p apiece to ARC Fund on September 25.

The equity facility is for $40-million (which cannot exceed R680-million) as announced on May 13.

The next drawdown of the equity facility is expected to be made on or about December 10, and quarterly thereafter, in line with the terms of the equity facility.

Meanwhile, following the amendment to the project loan facility with retail banking company BNP Paribas South Africa, pertaining to a fully drawn credit facility, Kropz and BNP has reached an agreement on the use of about $15-million (R200-million) of the existing cash balance, held on account, which will now be spent on the construction and commissioning of the Elandsfontein project on a pro rata basis with drawdowns of the equity facility. 

Key Contracts, Suppliers and Consultants
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.