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
While the project was first scheduled to start producing phosphate in 2018, it reported first production of phosphate rock concentrate only on March 18 this year.

The Elandsfontein project has been plagued by various delays since October 2017, when its water-use licence was contested by an environmental protection group. Other challenges have included changes to its processing plans and Covid-19-related delays.

Latest Developments
Elandsfontein has secured R285-million in bridge loan facilities from ARC Fund to meet the immediate and additional near-term funding requirements as it progresses commercial sales.

Kropz has reported that it sold a further 20 000 t of phosphate concentrate from Elandsfontein but – as was the case with the first bulk sale recorded in January – concentrate production is still not yet at optimal quality, resulting in the concentrate being sold at a discount to current market prices.

Plant modifications and adjustments to processing parameters have resulted in significant improvements in daily throughput and quality, but further optimisation is required.

There is also a shortage of fatty acid – a flotation reagent – owing to unexpected shipping delays from the US, consequently resulting in lower mass recovery in the direct flotation circuits.

A locally sourced alternative product is being trialled, while various shipping options have been implemented with the US supplier, but this delay in Kropz’s ability to consistently achieve bulk sale revenues at market price has resulted in an immediate funding requirement of R25-million for Elandsfontein.

Kropz will immediately draw down R25-million from the bridge loan with ARC. 

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.