Name of the Project
Elandsfontein phosphate project.

Location
Saldanha Bay, in the Western Cape, South Africa.

Project Owner/s
African phosphate producer Kropz (70%), African Rainbow Capital, or ARC (25%), and a smaller empowerment partnership (5%). Ubuntu Botho Investments forms part of the ARC structure.

Project Description
The Elandsfontein deposit is the biggest sedimentary phosphate deposit in South Africa.

The phosphate mineralisation is contained in the Varswater formation, with the phosphate occurring in phosphatised shell fragments and phosphorite pellets. The remainder of the deposit consists of silica sand and calcium oxide.

The project has an initial mine life of about 14 years and can deliver one-million tonnes a year of phosphate rock concentrate at steady state.

The processing plant will produce a final saleable concentrate to the expected specification of 68% bone phosphate of lime and about 31% phosphorus oxide using a flotation configuration of direct flotation, followed by a reverse flotation circuit.

Potential Job Creation
Not stated. 

Net Present Value/Internal Rate of Return
Not stated.

Capital Expenditure
Kropz has spent $120-million to bring its Elandsfontein phosphates mining and processing project into production and requires an additional $16-million to cover its augmentation.

Planned Start/End Date
Not confirmed.

Latest Developments
Kropz subsidiary Kropz Elandsfontein has secured a R200-million loan from Ubunto-Botho Investments (UBI), the indirect controlling shareholder of African Rainbow Capital (ARC). 

The loan will be used by Kropz Elandsfontein to fund its cash flow and operational expenditure requirements.

Meanwhile, the Elandsfontein phosphate mine continues to progress through its production ramp-up phase, although mining operations continue to be materially affected by variability in the orebody, including the nature and volume of slimes material, hard bank and pink ore encountered.

In addition, geopolitical tensions have created additional commercial headwinds with higher energy and consumable costs, and an increase in freight rates.

Elandsfontein produced 95 956 t of phosphate concentrate in the quarter ended June 30 – a 17% decrease on the 115 686 t produced in the quarter ended March 31.

Sales for the June quarter totalled 183 714 t and stock at quarter-end was higher than anticipated, at about 94 000 t.

Key Contracts, Suppliers and Consultants
DRA (engineering, procurement and construction management); Minopex (processing plant operation); and VDM Transport.

Contact Details for Project Information
Kropz, tel +27 21 930 0927 or email info@kropz.com.