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

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 has been moved to the fourth quarter of 2021.

Latest Developments
Kropz has reported that, despite disruptions because of the Covid-19 pandemic, significant progress is being made at its Elandsfontein project, which is on track and within the original projected capital budget.

Earthworks and civil construction are largely complete for the project, while the fabrication and erection of structural steel, platework and piping are well advanced, with the first mechanical equipment having been installed.

Meanwhile, the electrical, control and instrumentation contractor has started with associated work.

Nonetheless, the project schedule remains tight, with a high number of critical path and near critical path items being managed concurrently amid Covid-19 and a potential third wave of infections.

Kropz, together with the Elandsfontein management team and State-owned Transnet, has been working over the past eight months to finalise the port capacity agreement for the export sales and movement of Elandsfontein phosphate rock through the Port of Saldanha.

Transnet recently informed Kropz that capacity is not available at Saldanha, although the logistics provider has committed to providing an alternative solution for a portion of the Elandsfontein production through the Port of Cape Town, Kropz has reported.

Sales through Cape Town will incur additional transportation costs, owing to the greater distance involved, leaving the Kropz and Elandsfontein management teams to investigate all possible solutions and engaging in discussions with Transnet.

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.