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 deposit is the biggest 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 flotation, 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
First phosphate rock ore exports from Elandsfontein are expected in the first quarter of 2022.

Latest Developments
Kropz has made another quarterly drawdown request under one of its equity facilities with major shareholder ARC Fund.

The funds will be used for general corporate purposes.

This marks the fifth and final drawdown request valued at $200 000 and related to a “new equity facility”, which will be settled by issuing 3.4-million new ordinary shares to ARC on March 10.

Similarly, Kropz will settle an “original equity facility” it has with ARC by issuing 3.9-million, or $311 000 worth of, shares, to the lender, also on March 10.

Following the two share listings, ARC will hold just under 770-million shares of Kropz, representing 83.2% ownership.

Kropz may still draw down R74-million, or about $4.8-million, from ARC, in what is a third and separate “new ZAR equity facility”.  

In December last year, Kropz introduced first ore to its phosphate processing plant at the Elandsfontein mine.

Following flotation circuit commissioning and adding of reagents, first concentrate production will follow.

Kropz has said the project will progress to full mining and processing ramp-up over the coming months.

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.