Name and Location
Ironveld high-purity iron (HPI), vanadium and titanium project, Limpopo, South Africa.

Client
Ironveld.

Project Description
The project is located in the northern limb of the Bushveld Complex, comprising a group of seven adjacent farms, with the rights covering 165 km². Combined in situ inferred mineral resources are estimated at 32.9-million tonnes. The plan is to build an initial smelter as a precursor to a much larger pig iron plant, which will supplied with magnetite from the Ironveld project.

The initial smelter will require 15 MW of capacity. Electricity for the pilot plant is available immediately from an electrical substation 12 km away, which offers 20 MW. Ironveld plans to use all this power.

The full-scale plant will require the construction of four 75 MW dc smelters. Eskom will provide the 300 MW for the full-scale plant from late 2018.

The 15 MW pilot plant, which will initially produce high-purity pig iron and high-purity powder, will eventually produce ferrovanadium. The plan will have a projected output of 42 000 t/y of HPI, 415 t/y of vanadium and 8 269 t/y of titanium.

By mid-2015, Ironveld expects to mine 2.4-million tonnes a year of magnetite as feedstock for its eventual one-million-tonne-a-year plant, which will also produce vanadium and titanium by-products.

Net Present Value/Internal Rate of Return
Not stated.

Value
The initial investment is estimated at $60-million, with the eventual larger plant requiring capital expenditure of $938-million.

Duration
The project is slated to start production in late 2015 and has a projected life of more than 25 years.

Latest Developments
Ironveld has announced that its broad-based black economic-empowerment (BBBEE) partners have received an indicative term sheet from the Industrial Development Corporation for the BBBEE’s full capital contribution to the project.

As per the BBBEE’s Code of Good Practice, and the Mining Charter, the partners’shareholding amounts to 26% in the smelting project. The company continues to progress due diligence with funders to provide the remaining elements of the project’s funding.

Key Contracts and Suppliers
MSA Group (exploration); Setpoint Laboratories (assaying); Mintek (metallurgical testwork); and Geoserve (drilling).

On Budget and on Time?
The project is within budget and on time.

Contact Details for Project Information
Ironveld, tel +44 203 397 2071 or email contact@ironveld.com.
MSA Group, tel +27 11 880 4209, fax +27 11 880 2184 or email info@msagroupservices.com
Setpoint Laboratories, tel +27 11 923 7100 or fax +27 11 923 7029.
Mintek, tel +27 11 709 4111 or fax +27 11 793 2413.
Geoserve, tel +27 11 907 3463 or fax +27 11 907 3485.