BOTSWANA INTERNATIONAL UNIVERSITY OF SCIENCE AND TECHNOLOGY (BIUST), MORUPULE COAL MINE AND TSODILO RESOURCES LIMITED INITIATES COLLABORATION TO STUDY THE GENERATION OF A DIRECT REDUCED IRON PRODUCT USING BOTSWANA COAL FOR STEEL PRODUCTION
The Botswana International University of Science and Technology (BIUST)‘s Mining Centre, Morupule Coal Mine (MCM), and Gcwihaba Resources, (a subsidiary of Tsodilo Resources Limited), are pleased to announce a research collaboration endeavor to undertake metallurgical studies with respect to the potential of generating a Direct Reduced Iron (DRI) product for Steel production utilizing the Gcwihaba Xaudum Iron Formation (XIF) magnetite and MCM’s coal as a reductant. Commercially, this DRI product would be used to produce steel within Botswana, the region and internationally.
The Xaudum Iron project is a potential large and long-life Tier 1 mining project with a planned mine life of 50+ years, see below for more information on the Xaudum Iron Project. Metallurgical results show that the XIF magnetite concentrate is expected to be a premium high-grade product containing +67% iron magnetite that will be an ideal pellet feed perfect for DRI production (also known as sponge iron) using MCM coal as the reductant. This beneficiation, as contemplated by this collaboration, will generate a DRI product with an iron content of 90-94% Fe (similar grades to pig iron) ideal for use in electric arc furnaces to produce Steel.
The intention is to undertake metallurgical studies with respect to the potential of generating a Pellet Feed and Direct Reduced Iron (DRI) product from the Tsodilo Xaudum Iron Formation (XIF) utilizing magnetite and MCM’s coal as a reductant. The collaboration will help transform Botswana into a knowledge based society, through BIUST’s intellectual knowledge injected into the research component.
These extra levels of beneficiation within Botswana will create added value and benefits in the form of increased revenue and employment for Botswana. The collaboration will also help transform Botswana into a knowledge-based society, through BIUST’s intellectual knowledge injected into the research component.
Phase 1 of the project focuses on the conceptualization where BIUST is providing the technical knowledge as well as research capability and proof of concept. This will be accomplished through intensive laboratory scale characterization of the Gcwihaba (XIF) iron deposit in order to further study its structure, mineralogical composition, deportment, association and liberation.
Phase 2 is the basic process design stage that aims at beneficiating the Gcwihaba XIF raw material into a high-grade magnetite concentrate and pellet feed at ~67% Fe. This pellet feed will then be further beneficiated to generate DRI material through rigorous laboratory scale direct reduction experiments using MCM subbituminous coal as the reductant. The specific objectives of this phase involve the characterization of the prototype product, optimization of the manipulated variables and process conditions using attainable region approach for economic viability purposes. The other objective is to consider utilities requirements, health, safety and environment.
Phase 3 involves detailed chemical engineering design of the process, costing, energy integration, and scale up from laboratory to industrial pilot scale with plant scale optimization, which will lead to the possibility of commercialization of the proposed plant. Botswana has significant coal reserves which is a major advantage for the Gcwihaba Xaudum Iron project allowing for the use of coal in the metallurgical beneficiation process to generate these valuable DRI products for steel generation. The demand for iron ore, iron pellets, DRI, pig iron, and Steel have increased rapidly recently both locally, regionally and internationally. One of the expected outcomes of the project is a significant reduction in the importation of finished iron and steel associated products.
This project would represent the first Tier 1 (large, long life and low cost) iron deposit to be considered for development in Botswana. Gcwihaba, MCM and BIUST have identified the project as having the potential to significantly positively impact the future economy of Botswana as the country looks to diversify its economy.
About the Gcwihaba XIF Project
The business case for generating pellet feed, DRI products, and steel from the XIF magnetite is just one of the scenarios that are to be evaluated in Gcwihaba’s Preliminary Economic Assessment (PEA).
Preliminary work on the Xaudum Iron project has defined a CIM compliant Inferred Mineral Resource Estimate of 441 million tonnes (Mt) with an average grade of 29.4% Fe, 41.0% SiO2, 6.1% Al2O3 and 0.3% P for the Block 1 magnetite XIF. Metallurgical magnetic separation results (Davis Tube Recovery) show an average concentrate of 67.2% Fe, 4.2% SiO2, 0.5% Al2O3, 0.07% P is obtained at P80 grind size of 80 microns, although higher grades are possible at finer P80’s. The defined resource is a fraction of the potential XIF magnetite resource. An extrapolated Exploration Target has defined the XIF to be in the order of 5 to 7 billion tonnes at 15 - 40% Fe. This Exploration Target was generated by inversion modelling of ground magnetic geophysical data which was compared and moderated to volumes from drilling data within Block 1 and its potential quantity and grade is conceptual in nature. To date, there has been insufficient exploration to define a mineral resource other than in Block 1 and it is uncertain if further exploration will result in the target being delineated as a mineral resource.
Further exploration will be focused on Block 2a where Tsodilo expects an increase in the XIF resource.
The project is located in the North-West District of Botswana and is proximate to the Namibian boarder and lies twentytwo (22) miles (36 km) from the town of Divundu in Namibia. The Walvis Bay-Ndola-Lubumbashi Development Corridor (previously known as the Trans-Caprivi).
Gcwihaba has joined the Walvis Bay Corridor Group (WBCG). Currently, the portion of the transport corridor between Grootfontein (Namibia) to Katima Mulilo located on the Zambia border is the portion of the corridor closest to the Xaudum Iron Project. In March 2021, the Namibian Ministry of Works and Transport commissioned a Feasibility Study for the railway Extension Grootfontein - Rundu - Katima Mulilo. The proposed rail extension between Grootfontein and Katima Mulilo is significant to the Xaudum Iron Project as the extension is planned to pass through Divundu. The feasibility study for this rail line is expected to be completed by the end of 2021 and its results will be considered in the Gcwihaba Preliminary Economic Assessment (PEA).