Mining Mirror November 2018 | Page 6

Industry intelligence MC Mining completes Mooiplaats sale Coal mining company MC Mining (previously Coal of Africa) has sold its shares and claims in the Mooiplaats thermal colliery near Ermelo in Mpumalanga for close to R179.9-million. According to David Brown, CEO of MC Mining, the Department of Mineral Resources has approved the requisite section 102 application and the first quarterly payment of R11.3- million has been received. “The section 102 approval was the final requirement to complete the Mooiplaats sales process that commenced during 2013 and is another significant step in the clean-up of the company’s balance sheet. The Mooiplaats disposal will result in estimated annual cost savings of R18-million and the quarterly payments will be used to develop MC Mining’s flagship Makhado hard coking coal project,” says Brown. Thakadu starts construction of purification plant Representatives from Thakadu, Lonmin, and the IDC at the sod-turning event. Thakadu Battery Materials held a sod-turning ceremony to mark the construction phase of its nickel sulphate purification plant at Lonmin’s Base Metals Refinery in the North West Province recently. According to Ben Magara, Lonmin CEO, the plant is being built at an estimated cost of R250-million, with about 90% of the project value having been committed to date. The project is on schedule and under budget. All major equipment has been ordered and key contracts awarded, including modular fabrication of platework and structures; civil, building and installation; electrical and instrumentation; control and automation; and motor control centres and field isolators. “This nickel purification plant is a flagship black industrialist project and we are proud to partner with Thakadu — such initiatives are key for beneficiation in South Africa and for market extension of Lonmin’s by-product streams,” says Magara. Thakadu commenced civil works and construction on site in August. While work is carried out on site at the refinery, the company is advancing the manufacture of the modular [4] MINING MIRROR NOVEMBER 2018 MINING GROWS IN Q2 2018 The mining and quarrying sector contributed positively to GDP in the second quarter of 2018. This is according to data released by Statistics SA recently. According to a press release by the Department of Mineral Resources, the latest figures bode well for the sector and indicates that a commodity boom may be imminent. The mining sector in South Africa increased by 4.9% and contributed about 0.4 of a percentage point to GDP growth. The resurgence was led by growth in platinum group metals (PGMs), copper, and nickel, among others. “As one of the leading mineral exporting countries, South Africa has been negatively affected by global economic factors and as a result, the mining industry experienced a decline in performance over recent years. Prioritising the exploration of new mineral deposits, and continuing to work together with the industry, we can turn our comparative advantage into competitive advantage, and ensure that the sector’s positive contribution to growth of the economy is sustained,” says the Minister of Mineral Resources, Gwede Mantashe. plant, which began in early June 2018 at Styria Stainless Steel in Wadeville, Johannesburg. As fabrication and assembly of the modular plant completes, the individual modules will be delivered to site in sequence for installation starting in November 2018 — a process that is envisaged to take between five and six months. This means that Thakadu effectively has two construction sites operating concurrently. The modular parallel construction philosophy has significantly reduced overall project costs, risks, and time to first production. Fast-tracking of modular fabrication and ordering long-lead items while waiting for debt facility drawdown has given Thakadu numerous advantages. Most importantly, the company was able to lock in favourable stainless steel prices and exchange rates earlier in the year, which has maintained the project’s great return metrics. The plant is projected to produce 25 000t of high-purity battery-grade nickel sulphate every year, and cold commissioning is scheduled to begin in April 2019. Commercial production is planned for the end of 2019. www.miningmirror.co.za