Name of the Project
Elandsfontein phosphate project.

Location
Saldanha Bay, in the Western Cape, South Africa.

Project Owner/s
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, 2022.

The project has been plagued by various delays since October 2017, when its water-use licence was contested by an environmental protection group, in addition to other challenges such as changes to its processing plans and Covid-19-related delays.

Latest Developments
Kropz is ramping up to steady-state production; however, the company recorded a $5.7-million gross loss for the 12 months ended December 31, 2023.

The company said on March 28 that the loss was largely owing to its Elandsfontein mine having to discount its sales prices as a new market entrant and to consider lower grades being achieved as part of the ramp-up process, coupled with higher production costs per tonne.

Moreover, with Elandsfontein operating below planned production levels, the operational cost per tonne remained elevated.

Kropz has said sales from the trial production phase generated revenue of $30.2-million for the year.

During the year Kropz faced significant challenges owing to unprecedented rainfall in the Western Cape. The heavy and persistent rains, combined with large volumes of in-pit water, resulted in severely wet mining conditions, posing obstacles to the company’s operations.

To address this issue, the company has undertaken various measures, with a primary focus on increasing in-pit drainage to alleviate the waterlogged conditions in its mining areas, as well as implementing ore stockpiling and blending strategies.

The extent of the ultrafines, or natural slimes, encountered in the ore also limited Kropz’s production throughput.

In response, subsidiary Kropz Elandsfontein is making strategic investments in new equipment that will enable the plant to more effectively handle and process the challenging slimes material.

The Elandsfontein operation is expected to increase its production throughput by more than 40% following commissioning of the new equipment. The project is expected to be fully operational by the end of the second quarter.

In addition to addressing the wet mining conditions, Kropz Elandsfontein is still employing separating and stockpiling techniques of the various ore materials encountered at the site. The company is analysing and testing the various ore types being stockpiled to identify and refine the appropriate method of mining and processing the stockpiles to drive efficiencies.

“The Elandsfontein mine is still in its trial production phase and further challenges can be expected as it progresses towards full production,” Kropz has warned.

The company also highlighted in its results that it had achieved one year without lost-time injuries.

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.