Name of the Project
Elandsfontein phosphate project.

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

Project Owner/s
African phosphate producer Kropz owns 74% of Kropz Elandsfontein, the company that owns the project.

Project Description
Elandsfontein hosts South Africa's second-largest phosphate deposit.

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
$160-million has been invested to take Elandsfontein to steady-state production.

Planned Start/End Date
No further phosphate-rock production is currently planned. Subject to board approval, operations will restart once market conditions have normalised.

Latest Developments
Kropz has started an urgent operational review and restructuring process at Elandsfontein after continued financial pressure and a challenging production ramp-up prevented the operation from achieving profitability.

Pressure has stemmed mainly from the continued Middle East conflict, which has disrupted key fertiliser inputs, adversely affected global fertiliser production and demand for phosphate rock, which, in turn, put downward pressure on sales prices. Higher fuel, chemical and freight costs have simultaneously increased operating costs.

During the first five months of the financial year ending March 31, 2027, Elandsfontein produced 150 246 t of phosphate rock, or Phosrock, and sold 149 907 t.

Going forward, Phosrock revenue is expected to be generated mainly from the sale of existing stock, with no further Phosrock production currently planned. The business will instead focus on developing and growing the Nanophos market as part of a strategy to establish a more sustainable operating model with a lower cost base.

Nanophos is a natural sedimentary soft-rock phosphate used as a slow-release organic fertiliser to improve soil phosphate levels and promote long-term plant productivity. Sales remain subject to normal seasonality and the successful growth of the customer base and market.

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.