Photo by: Creamer Media
JOHANNESBURG (miningweekly.com) – Investment fund African Rainbow Capital (ARC) on Thursday said an alternative processing method for Aim-listed emerging phosphate producer Kropz’s Elandsfontein project, in the Western Cape, has been confirmed to produce saleable concentrate.
The advanced-stage phosphate mining project has faced several setbacks and delays, with operations postponed until additional laboratory and pilot plant testing could be undertaken, and funding procured.
ARC, of which Patrice Motsepe is chairperson, holds 49.3% of the issued shares in Kropz.
ARC co-CEO Dr Johan van Zyl on Thursday said the orebody at Elandsfontein was found to be more complex than initially anticipated with regard to particle size distribution and grade variability.
This meant a modification to the original circuit was required to achieve the desired consistent phosphate grade.
Some 14 months of additional testwork, however, instilled confidence that the proposed modifications to the processing plant would produce the required final saleable concentrate at the desired yields.
“The processing plant will produce a final saleable concentrate to expected specification of 68% bone phosphate of lime, about 31% phosphorus oxide, using a flotation configuration of direct, followed by a reverse flotation circuit,” said Van Zyl.
“We have a plan, it looks good. The technical solution has been tabled and we are working towards implementation,” he told investors during a webcast of ARC’s results for the six months ended December 31.
Commissioning of the mine and plant was initially scheduled for the end of 2017.
As a consequence of various delays, Kropz Elandsfontein is in technical default on its $30-million project finance facility from BNP Paribas (BNPP), with the company at an advanced stage of discussions to restructure this facility.
“The ARC fund has received investment committee approval to support Kropz Group funding requirements to bring Kropz Elandsfontein into production, subject to reaching agreement with BNPP.”