Name and Location
Ironveld pig iron 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 far larger pig iron plant, which will be fed with magnetite from the Ironveld project.

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

The full-scale plant will require the construction of four 75 MW direct-current smelters. The 300 MW for the full-scale plant will be provided by Eskom 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 project will produce 46 000 t/y of iron products and associated vanadium by-products, with the commissioning of the project in late 2015.
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.

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 late in 2015 and has a projected life of more than 25 years.

Latest Developments
Limpopo’s Department of Economic Development, Environment and Tourism has acknowledged receipt of the final scoping report for the 15 MW direct current arc furnace that Ironveld intends to build.

This allows Ironveld to progress to the next step in the approvals required by the National Environmental Management Act, No 107 of 1998.

The company will make further announcements about the environmental process as the various approvals are received from the department.

The mining right application for the northern properties was lodged last year and is expected to be granted this year.

Meanwhile, Ironveld has submitted a 12I Tax Allowance Incentive application for its smelter to the Department of Trade and Industry (DTI).

If the application is successful, the company is expected to receive an estimated R50.5-million allowance that will enhance the investment in the smelter, which is scheduled to start production late next year.

A decision by the DTI on the application is expected in early September.

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.