Name and Location
Kalagadi Manganese project, Northern Cape and Eastern Cape, South Africa.

Client
Kalagadi Manganese is held by ArcelorMittal (50%), Kalahari Resources (40%) and the Industrial Development Corporation (10%).

Project Description
The project involved the construction of a manganese mine and a 2.4-million-ton-a-year high-grade sinter plant (Umtu sinter plant), near Hotazel, in the Kuruman area of the Northern Cape.

The output required to produce this amount of sinter will be three-million tons a year.

An additional component of the project is the construction of a 320 000 t/y ferromanganese smelter complex in the industrial development zone (IDZ) of the Coega deep-water harbour, in the Eastern Cape.

The plant will be designed to also produce silicomanganese as an alternative product.

The smelter will be situated in Zone 6 of the IDZ metallurgical zone and could possibly be expanded to handle 640 000 t of ore.

The project area overlies the Kalahari manganese basin and is estimated to contain 80% of the world’s known high-grade manganese resources.

An evaluation of historically available information indicates that up to one-billion tons of mineable ore could exist under the prospecting area, covering 8 000 ha.

Value
R11-billion, which will be funded by 40% equity and 60% debt.

Duration
The project is expected to be completed by the end of 2013.

Latest Developments
The mine is expected to be operational at the end of the fourth quarter of this year 2013.

Completion of the mine’s surface infrastructure is expected in October 2013 and all construction works on the sinter plant are expected to be completed by end of November 2013.

The commissioning and handing over of the plant is scheduled for December 12, 2013

Key Contracts and Suppliers
Mineral Corporation (geological consultant); MDM Engineering (bankable feasibility study, front-end engineering and design; engineering, and construction management); Civcon (main contractor); Shaft Sinkers and Grinaker-LTA (shaft sinking); Neutron Engineering (bulk earthworks for the shaft); Tubular (main and ventilation shaft headgears); Outotec (sinter plant); and Esorfranki Geotechnical (piling contract).

On Budget and on Time?
The project is on track and is expected be commissioned by July 2013.

Contact Details for Project Information
Esorfranki Geotechnical MD Roy McLintock or Tammy Davies, tel +27 11 882 3906, fax +27 11 882 3112 or
email info@esorfranki.co.za.
Civcon, tel +27 11 206 9660, fax +27 11 316 6604 or email info@civcon.co.za.
Grinaker-LTA, tel +27 11 578 6000, fax +27 11 578 6161 or email enquiry@grinaker-lta.co.za.
Kalagadi Manganese tel +27 11 808 2000, fax +27 86 673 2122 or email info@kalagadi.co.za.
Outotec investor relations vice president Rita Uotila, tel +358 20 529 2003 or email rita.uotila@outotec.com.
MDM Engineering marketing manager and public relations manager Vanessa Evans, tel +27 11 993 4300, fax +27 11 886 9306 or email Vanessa@mdm-engineering.com.