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Dublin, Feb. 07, 2020 (GLOBE NEWSWIRE) -- The "Mining of Iron Ore and Chrome in South Africa 2019" report has been added to ResearchAndMarkets.com's offering.This report on the mining of iron ore and chrome includes comprehensive information on the size and state of the industry, its major players, and their activities and corporate actions in South Africa, on the continent and globally.There are profiles of 21 companies including Kumba Iron Ore, which dominates the iron ore sector, and other players such as Assmang and Palabora Copper. Chrome producers profiled include integrated ferrochrome producers Glencore (Glencore-Merafe), Samancor and Afarak. Mining of Iron Ore & Chrome South Africa is the world's sixth-largest iron ore producer and third largest iron ore exporter. It has 36% of the world's chromite reserves, and is the is the world's largest chrome producer and second-largest producer of ferrochrome. The iron ore mining sector employed 18,613 people in 2018, while the chrome ore mining sector had 18,935 employees in 2018.Rapidly rising input costs and policy and regulatory uncertainty are some of the challenges faced by the iron ore and chrome ore mining sectors. Expected growth in demand for chrome ore and ferrochrome, due to increasing stainless steel production, continues to present opportunities for the sector, as does growing demand for higher-grade iron ore from China. Cost Pressures Above-inflation electricity, water, and labour cost increases continue to affect the industry. Kumba, the major player in the iron ore sector, said its challenges include high stripping ratios, long hauling distances and high transport costs while Merafe Resources referred to global uncertainty and inflationary pressures locally. Electricity constraints and tariff increases continue to weigh heavily on the sector.The Minerals Council said substantial tariff increases will have a major effect on the mining industry's cost structure, jeopardising the viability of marginal and loss-making mines and accelerating job losses. The introduction of carbon tax could cost the mining industry between R900m and R1.8bn per year during the first phase. Key Topics Covered 1. INTRODUCTION 2. DESCRIPTION OF THE INDUSTRY 2.1. Industry Value Chain 2.2. Geographic Position 3. SIZE OF THE INDUSTRY 4. STATE OF THE INDUSTRY 4.1. Local 4.1.1. Trade 4.1.2. Corporate Actions 4.1.3. Regulations 4.1.4. Enterprise Development and Social Economic Development 4.2. Continental 4.3. International 5. INFLUENCING FACTORS 5.1. Economic Environment 5.2. Labour 5.3. Mine Safety 5.4. Environmental Concerns 6. COMPETITION 6.1. Barriers to Entry 7. SWOT ANALYSIS 8. OUTLOOK 9. INDUSTRY ASSOCIATIONS 10. REFERENCES 10.1. Publications 10.2. Websites Company ProfilesMining of Chrome and Production of Ferrochrome
The mine is operated by the Anglo American group company Kumba Iron Ore through its subsidiary Sishen Iron Ore Company (SIOC). SIOC is 76.3% owned by Kumba while the remaining interest is held by Black Economic Empowerment (BEE) shareholders.
The mine consists of seven open pits, including Leeuwfontein, Welgevonden, Kapstevel and Klipbankfontein. It started commercial production in December 2011 and was awarded ISO 14001 certification in July 2013. Kolomelas life is estimated to be 14 years, with potential for further expansion.
Formerly known as the Sishen South project, the Kolomela mine project is a direct shipping iron ore project completed in late 2011. The project surpassed the expected full-scale production capacity of nine million tonnes per annum (Mtpa) in 2013.
Production at the mine increased by 9% following the implementation of the companys Operating Model in 2017. The model follows a phased implementation beginning at the project set-up phase and terminating with the stabilisation and sustaining phases.
The Kolomela mine comprises three separate ore bodies located on the southern tilt of the iron bearing belt that hosts the Sishen deposit towards the north. The lithologies are identified to be of Griqualand West Supergroup. The ore bodies delineate the western margin of the Kaapvaal Craton in the Northern Cape province.
The ore bodies measure up to 2km in length, 400m in width and 300m in depth. The deposit consists of four varieties of high-grade haematite ores, namely clastic-textured (29%), laminated (53%), collapse breccia (10%) and conglomeratic (8%). The lump to fine ratio of the ore is 60:40.
The extracted ore from the mine is sent to the nearby processing plant. The ore undergoes primary, secondary and tertiary crushing at the plant. The crushed ore is scalped and screened before being sent to the stockyard.
The mine has a stacker-reclaiming facility, at which different grades of processed ore are blended to ensure the grade requirements of the clients. Sishen mines products are also blended with the mines products before the final shipment of the ore.
The export ore is sent via a conveyor to the load-out terminal of the mine. From there, it is transported via the newly constructed 36km rail line linking the Sishen-Saldanha export line connected to the Saldanha Bay Port.
Hatch was awarded the R2.5bn ($276m) engineering, procurement, project and construction management (EPCM) contract for the project. The company was responsible for delivering the crushing and sizing plant, stockyard facilities, as well as the rail truck loading station.
Murray & Roberts Construction unit Concor Roads & Earthworks carried out the earthworks, as well the construction of a new railway line connecting the iron ore mine with the Sishen-Saldanha export line. It also received several other contracts in 2012 for additional construction works of the project.
Regulatory frameworks for environmental management in the mining sector have tended to be quite stable this year, with a few countries modifying their mining frameworks to further enhance the positive social impact of mining operations.
The trend to reduce negative impacts of mining also continues including issues like resettlement and compensation. This trajectory is unsurprising, given the high risk ranking of mines social licence to operate.
Indeed, the moves by most African countries to codify social impact requirements in their mining codes or legislation are closely aligned to the best practice guidelines of global financial institutions. These are all positive steps towards a more sustainable future for the sector.
While many countries still struggle with administrative capacity, there are ongoing efforts by governments, funders and donors to build muscle behind the laws. Compliance will therefore remain a key imperative for miners across all environmental, social and governance (ESG) issues.
This is not always easy in conditions where mergers and acquisitions occur frequently as they do among miners in Africa. Such transactions are often disruptive, bleeding out vital institutional memory that understand the daily demands of compliance. At worst, this can put mining rights at risk.
With communities increasingly aware of their rights and leverage, the science of engagement is an ever more valuable discipline. Many mines lack the insights and expertise for this, but there is a growing body of experience and knowledge in this field that industry needs to embrace.
A related and equally important area is managing the issue of artisanal small-scale mining on both closed and operational mining sites. Often stuck in the middle between governments and artisanal miners, formal mining companies struggle to navigate this complex and conflict-ridden terrain. It is unclear where solutions will come from, as stakeholders search for new approaches.
National regulations will see tighter control of water quality, and mines need robust systems to monitor and control water discharge. Mines are likely to continue their efforts to implement technologies that will result in improved water efficiency. Climate change is further complicating these demands on mines, which is exacerbated by variability of rainfall in many areas.
The related risks extend beyond securing enough water for plant processes and other uses; there are design implications for flood defences and tailings dams. As water regulations evolve, governments are asking mines more detailed questions about their strategies and provisioning. Funders continue to raise the bar of best practice, requiring in-depth information about how water-related risks are mitigated on a project basis.
The global climate change focus extends to the rolling out of carbon tax, a step that South Africa has already taken. As significant energy users and carbon emitters, mines will feel the brunt of such taxes. The bottom-line pinch is likely to incentivise mines to adopt alternative technology in their operations in order to reduce their carbon footprint.
The New Partnership for Africas Development (NEPAD), now the official development agency of the African Union, has been pursuing opportunities to strengthen infrastructure around the continent notably in power supply, roads, ports and rail.
As these roll out, mines will be among the first to benefit, and not just in terms of cost. For those mines that can switch from diesel generators to the national grid, their environmental impact is likely to be considerably reduced and their sustainability improved.
The Southern African Power Pool (SAPP) comprising the state-owned utilities in the sub-continent has been ahead of the curve in this process. Upgrades to high-voltage power lines and construction of strategic interconnectors are part of their focus, promising to bring relatively low-cost electricity closer to remote mining locations and ensure a reliable power supply.
In parts of southern Africa, large investments are being made in hydro-power schemes that will link into and strengthen the regional power grid. Plans are also afoot in East Africa for interconnectors that can lower the cost of doing business and improve security of supply.
The resulting greater security of electricity supply will be a foundation element for new mine development or Brownfield mine expansions alike in much of Africa. By contrast, the constraints related to South Africas power utility are likely to negatively impact miners development projects.
Higher Iron ore grades are needed in improving Auto markets, Construction and other demanding types of specialised infrastructure. This is a prime reason for the great demand from maturing economies such as in China, Japan and Europe, and now increasingly in the Middle East and India. Export sales to China accounted for 61% of the Companys total exports. Exports to the rest of Asia remained at around 19% of the total, while Europe is 12%.
Iron ore is also used in medicine, cosmetics, engineering, construction, paint and a whole range of other products we use in our daily lives. And technology is demanding increasingly sophisticated forms of steel.
We strive to match our products with our customers needs. By listening to our clients requirements, we are able to develop and deliver high-quality products which strengthen our client relationships and cement our position in the global market.
Not all iron ore is created equal. The highest quality and most important iron ores for steelmaking are hematite (Fe2O3) and magnetite (Fe3O4). Hematite is the more sought-after ore and the preferred raw material in efficient steelmaking mills. It accounts for approximately 95% of South Africas iron ore production. These iron ore reserves are all of high quality Hematite allowing us to produce both high quality lump (64.0%Fe) and high grade sinter fines (63.5%Fe) for the domestic and export markets. We are unique in that we are primarily a principle lump producer with a product of recognized exceptional chemical and metallurgical quality.
We produce ore for the export market at our Sishen and Kolomela mines, with our Thabazimbi product supplying the domestic market. Our philosophy of quality, reliability and consistency ensures excellence and delivers verified value.Get in Touch with Mechanic