JOHANNESBURG (miningweekly.com) – Ground works and civil works are reportedly progressing well for the installation of a dense medium separation (DMS) magnetite plant in South Africa’s Bushveld Complex.
The plant is expected to be installed in around four weeks, with first sales set to follow four to six weeks thereafter.
The DMS magnetite project is described by Ironveld CEO Martin Eales as being beneficial for its Ironveld Mining subsidiary in terms of reducing overall average mining costs and, in time, likely contributing positive cashflow, without the London Aim-quoted company having to divert funding from its core smelting activities.
Ironveld, which holds mining rights over 28 km of outcropping Bushveld magnetite with a compliant ore resource of 56-million tons of ore, last year agreed to acquire and refurbish a Rustenburg smelter to process its magnetite ore into high-purity iron, titanium slag and vanadium slag.
“Sable is really pleased to be partnering with IPace in this exciting project that we believe will generate good cashflow for all the parties and provide a base for further developments,” Sable Exploration and Mining CEO James Allan stated in a Stock Exchange News Service announcement.
Ironveld Mining and joint venture (JV) partner Pace agreed funding and operational structure amendments to the DMS magnetite operation with a subsidiary of JSE-listed Sable Exploration and Mining.
The new structure retains Ironveld’s ability to supply ore into the JV and benefit from a share of positive cashflows without having to fund the initial capital expenditure.
The JV is responsible for erecting, operating and maintaining the plant alongside marketing of the final product, while Ironveld Mining will continue to supply ore on a cost-plus basis to IPace.
Sable Exploration and Mining, through subsidiary Sable Platinum Holdings, will advance R15-million for the establishment of an initial quick start of the plant, which will have a capacity of 10 000 t a month. There will also be an option to fund future expansions in capacity, depending on the success of the venture.
Sable Platinum Holdings and IPace have agreed that investment in a larger plant will be considered once the proposed plant has reached full capacity.