Afarak’s FerroAlloys business is located in southern Africa and consists of the Stellite chrome mine, the Mecklenburg mine, the Mogale Alloys processing plant and the Vlakpoort mine in South Africa.
Vlakpoort – South Africa
The Stellite Mine – South Africa
The Stellite mine was acquired in late 2010, as part of the Chromex acquisition and will be the primary ore supply to Mogale Alloys, thereby integrating the FerroAlloys business. Excess lumpy chrome ore mined at Stellite is exported directly to China.
Stellite is located on the western limb of the Bushveld complex in South Africa, where 70% of the world’s chrome resources are located and 40% of chrome production is sourced. The mine has a chromite resource of 32Mt comprising of four seams, namely the LG6, MG1, MG2 and MG4. All four seams outcrop on the property. It has a New Order Mining Right and BEE partners own 19% of the operation.
The mine commenced operations in July 2008. The open cast mining is outsourced to a contractor. The beneficiation plant comprises of a dense media separation (DMS) plant and a spirals circuit, which has a run-of-mine (ROM) feed capacity of 40,000 tonne per month.
The mine produces a 42% and 44% metallurgical grade chrome concentrate which is transported by road to Mogale Alloys and a 38% lumpy chrome ore, which is exported to China.
The Mogale Alloys – Processing Plant
Afarak acquired Mogale in 2009, providing it with access to the bulk minerals processing sector in South Africa. The acquisition marked a strategic step forward for the Group by providing access to direct current (DC) furnace technology, which has been in operation at Mogale since 1983 and is considered to be a centre of excellence. DC furnace technology is approximately 20-30% more cost efficient than traditional furnace technology.
Mogale operates four furnaces; two submerged arc furnaces and two DC furnaces, with a total production capacity of 110,000 tonnes per annum. These furnaces are capable of producing four key products: silico manganese, plasma ferrochrome, charge ferrochrome and stainless steel alloy (chromium-iron-nickel alloy).
Installation of ferroalloy refining and granulation plant
On the 17th of December 2014, Afarak announced that Mogale Alloys has completed the installation of ferroalloy refining and granulation plant and the plant is in operation. The total cost of the investment was approximately ZAR 185.1 million (approximately EUR 12.9 million) and the monthly production capacity of the plant is expected to be 1,500 tonnes of medium carbon ferrochrome.
The Mecklenburg Mine – South Africa
The Mecklenburg Mine is located on the Eastern Limb of the Bushveld Complex, well known for hosting much of the world's known resources of platinum, but also a major source of chromite. The Mecklenburg mine started full production in July 2013. The Company is currently evaluating underground mining at Mecklenburg.
The reserves and resources of the Mecklenburg mine can be found at the reserves and resources statement.