Natural resources investment company Pallinghurst Resources has announced that its subsidiary Tshipi é Ntle Manganese Mining has received its feasibility study on the Tshipi Kalahari manganese project.
Pallinghurst, together with its co-investors, Korean steel producer Posco, international specialist banking group Investec, private equity company M&R Capital Management and US mining company American Metals & Coal International hold 49,9% of Tshipi, with Pallinghurst currently owning an effective 10% stake in the project.
Extensive exploration of the property has defined resources of 161-million tons, which will be mined through openpit methods, compliant with the South African Mineral Resource Committee. The ore resources are shallower than expected, and are low in phosphorus and other deleterious elements. A further 110- million tons are expected to be accessible through underground mining methods, increas- ing the total resource to 271-million tons.
Provider of mining and engineering solutions for Africa Turgis Consulting carried out the feasibility study, which cost about R40-million. Pallinghurst envisages the creation of a large openpit manganese mine to produce two- million tons a year of manganese. This will be similar to the type of ore, grading 37%, at Mamatwan mine, which is also situated in the Kalahari Desert, contiguous to Thsipi. The study confirms that the project is economically robust, with production costs in the lowest industry quartile.
Pallinghurst chairperson Brian Gilbertson notes that the Kalahari Basin is one of the world’s most important mineral provinces, and hosts 80% of the world’s manganese reserves. “It is from here that the bulk of the ore essential for world steel production will be sourced for centuries to come. The feasibility study has shown our project, in the heart of the basin, to be large, robust and of long life.”
The project is located in an area that has established road, power and rail infrastructure and sufficient water resources for openpit mining. Tshipi will build its own 4-MVA power plant and is planning to construct a dedicated high-speed rail loading facility.
Tshipi is engaging with State-owned transport parastatal Transnet to meet the company’s initial requirements for the long-term allocation process and is participating in the manganese export capacity allocation process. Transnet is aiming to improve restricted access to transport and will allocate existing rail and port capacity to current and new manganese producers through this process.
In addition, alternative transport solutions are currently undergoing detailed evaluation. It will take about a year to produce the first saleable manganese ore after the formal decision has been made to go ahead with the project.
Pallinghurst CEO Arne Frandsen adds that the company expects the project to move rapidly to a formal ‘go decision’ as access to transport and port capacity is finalised. “This is clearly an asset which will unlock significant value for all our stakeholders as well as potentially create some 400 permanent jobs. The labourers will be from the surrounding community. We want to be an integrated part of the community and we are fully committed to spreading the value we create. We also strive to be a sustainable mining company: we want to leave the land in the way we found it,” he concludes.
SOurce: Creamers Mining Weekly
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