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 made its quarterly drawdown requests under the equity facilities with its major shareholder, the ARC Fund.

Kropz has two equity facilities – the first is for $40-million and the second for up to $5-million.

The next drawdowns are expected to be made on or about September 10, and quarterly thereafter, in line with the terms of the original and new equity facilities.

The proceeds drawn down from the original and new equity facilities will be applied to the continuing workstreams on the Elandsfontein project, in South Africa, and the Hinda project, in Congo-Brazzaville.

Following the issue of the 174.9-million ordinary shares in Kropz, ARC Fund will directly hold 708.8-million ordinary shares, representing 82.7% of the company’s issued share capital.

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.