August 21, 2017

An ambitious flourspar mine project underway in South Africa

Contractors pose for a photo before embarking on the Nokeng Mine development project

The Nokeng Fluorspar Mine (Nokeng) development of which has just begun north east of Pretoria, in South Africa’s Gauteng province – is expected to be a leader in terms of both production volume and quality, and to rank in the bottom cost quartile globally when it reaches full production in 24 months’ time.

 At the cost of about $100 million, the mine is being developed by Nokeng Fluorspar Mine (RF) (Pty) Limited, a wholly owned subsidiary of SepFluor Limited (SepFluor), which is 34.8% owned by black empowerment partner Ixowise.

Volume

SepFluor Chief Executive Officer, Rob Wagner, discussing volume at a media briefing on the project in Johannesburg today, pointed to the size of Nokeng’s ore body – more specifically, to its 12.2Mt SAMREC-compliant reserve.

“This is large when compared to others associated with other new fluorspar projects around the world.”

Nokeng will mine two deposits, Plattekop and Outwash Fan, over 19 years, with the prospect of extending its life of mine with a third deposit, Wilton, as yet unexplored.

 Quality

 On quality, the grade of Nokeng’s ore – at an average of ~27% calcium fluoride (CaF2) – is considered high, Wagner said, ensuring sound economics and locked-in markets for its 180 000tpa of acid grade fluorspar and 30 000tpa of metallurgical grade fluorspar.

Cost 

While reticent about cost – a highly competitive factor in the international fluorspar market – Wagner highlighted the ease with which Nokeng’s surface and near-surface orebody can be mined and efficiency of its state-of-the-art concentrator as key contributors positioning the operation in the bottom cost quartile of producers.

Mining Charter

Funding for the mine – a mix of equity and debt, involving both local and overseas investors and lenders – was locked in ahead of the recent announcement of South Africa’s new Mining Charter.

On potential impacts of the Charter as it currently stands, Wagner said: “As a general comment, I would say we have little objection to its intended ends; the means are what require further discussion and we would hope that most recent developments indicate there is still room for this to happen.

“We are still evaluating the potential impacts should there be no change; meantime, our priority is to expedite mine development and production, on time and within budget.”

Community

Nokeng is expected to create ±300 fixed-term jobs during construction and ±200 permanent jobs. Contractual obligations to the engineering procurement construction (EPC) contractor – a joint venture between DRA and Group Five – and the mining contractor, yet to be appointed, include prioritisation of local recruitment and procurement, and to assist Nokeng in developing skills and supplier capacity as necessary.

Nokeng’s social and labour plan (SLP) has committed about $2 million (about R26 million in South African currency). This includes an about $770, 00 (R10 million) education and training centre, modelled on the UMK‘s “Joe Morolong” Training Facility at Kuruman in the Northern Cape, which will service the mine’s own needs and those of the surrounding communities. This centre will be built and commissioned in early 2018. Pre-school, primary and secondary education, healthcare and farming are all key commitment areas of the SLP.

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