Name and Location
Lion ferrochrome complex Phase 2 expansion (Lion II) project, Limpopo, South Africa.

Client
Glencore-Merafe chrome joint venture (JV).

Project Description
The expansion will involve the construction and commissioning of a 360 000 t/y capacity smelter in Steelpoort, Limpopo, and will increase the Xstrata-Merafe chrome JV's total ferrochrome capacity to more than 2.3-million tons a year.

The expansion will reduce the overall cost of the JV's total ferrochrome production by about 6%. The project includes the concurrent development of the 1.2-million-ton-a-year run-of-mine Magareng chrome mine within the Thorncliffe mine complex.

Value
The development will entail a total capital investment of R4.9-billion and includes R700-million for the concurrent development of the Magareng mine.

Duration
First ferrochrome production is scheduled for mid-2014.

Latest Developments
Hot commissioning of the JV’s Lion II smelter started in the last quarter of last year and will continue during the first half of this year.

First production has been slightly delayed, mainly owing to the limited availability of contractors over the December holiday period and heavy rainfall, as well as windy conditions in the last quarter of 2013.

Key Contracts and Suppliers
Actom Air Pollution Control (baghouses).

On Budget and on Time?
The overall project remains on schedule and within budget and it is envisaged that the smelter will be fully operational toward the middle of 2014,” stated Merafe.

Contact Details for Project Information
GlencoreXstrata media, Charles Watenphul, tel +41 41 709 2462 or email charles.watenphul@glencorexstrata.com.
Merafe Resources, Kajal Bissessor, tel +27 11 783 4780, fax +27 11 783 4789 or email kajal@meraferesources.co.za.
Actom, tel +27 11 820 5111 or fax +27 11 820 5100.