Name of the Project
Ferrochrome Furnaces (FCF) smelting complex refurbishment.

Location
Rustenburg, in South Africa’s North West province.

Project Owner/s
Aim-listed iron, vanadium and titanium developer Ironveld plans to raise up to £5-million to acquire the remaining stake in the mothballed FCF business it does not already own, and to refurbish the FCF smelting complex.

Ironveld has agreed with FCF’s business rescue practitioners, Tayfin Forensic and Investigative Auditors, to acquire the share capital of FCF for a nominal fee and to buy outstanding debt from the sole creditor.

Project Description
Ironveld plans to refurbish the FCF smelting complex comprising four 2.5 MW tilting electric arc furnaces (EAFs), four convertors with ladles, cranes and associated buildings and equipment.

The project will bring three of the four EAFs into production on a phased basis.

It proposes to start processing from the first furnace while the others are being brought back into production, thereby accelerating cash flow from sales.

The plans allow for upgrading the high-purity iron product to a higher-value powder form.

Once three furnaces are fully operational, the complex will be capable of processing about 40 000 t/y of Ironveld's magnetite ore, which, in turn, will provide finished products of 20 000 t/y of high-purity iron, 190 t of vanadium in slag and 3 800 t/y of titanium in slag.

Ore will be stockpiled at the smelter complex while the furnace refurbishment is taking place.

The smelter complex uses electricity from the national grid, but Ironveld has signed a letter of intent with Enernet Global Inc to build, own, operate and maintain a hybrid power plant using renewable energy. This should provide Ironveld with security of power supply on a capital expenditure-free basis.

The completion of the installation of the independent power supply by
Enernet will be broadly in line with the company’s overall refurbishment timetable.

Ironveld plans to use mining contractors on site to minimise capital expenditure and will use community-based transportation companies to transport ore from the mine to the smelter complex.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
Not stated.

Capital Expenditure
The project is estimated at R40-million, including contingencies. Further upgrades – totalling an estimated R25-million – to the plant are planned in future when funding is available.

Planned Start/End Date
Ironveld has a planned refurbishment programme of up to nine months. Mining of ore can start within six weeks of completion of the acquisition of FCF.

Latest Developments
Work has started work at the mothballed FCF smelter site. This follows the successful completion of a £4.5-million fundraise to acquire the remaining stake in the FCF business that Ironveld does not already own, and to refurbish the FCF smelting complex.

Ironveld has been permitted by the business rescue practitioners, Tayfin Forensic and Investigative Auditors, and the sole creditor, to gain access to the smelter facility at this early stage to progress with the refurbishment as time efficiently as possible.

The focus in the initial weeks will be on site clean-up and security, as well as water, electrical and gas supply servicing and safety checks.

Mechanical, electrical and structural compliance checks and statutory certification will also be completed.

Following this, the planned refurbishment and upgrades across the facility, which will allow for the first of the three furnaces to start production, will be undertaken. The planned refurbishment will take six to nine months to complete.

Ironveld has noted that the final contracts for completion of the acquisition are progressing well. 

Key Contracts and Suppliers
None stated.

Contact Details for Project Information
Ironveld, tel +44 20 7138 3204 or email contact@ironveld.com.