Black-owned mine plans going local
Iron ore to plug gap as others fold operations
While established companies are finding it unprofitable to operate in the iron space, a majority blackowned mining company plans to use its low-cost structure to run a successful operation.
Matodzi Nesongozwi, the chief executive of Manngwe Mining, said this during an interview after the company’s official commissioning of an iron ore mine in Brits, North West, last week.
The mine and the dense medium separation plant, which started operating last month, cost R180-million.
Nesongozwi, together with other black shareholders, owns 80% of the company while the remaining 20% was in the hands of Anglo American Sefa Mining Fund.
“We are a low-cost producer unlike most of the major mines,” he said.
“Our costs, from mining, processing and transporting, are less than US $35 dollars (R465) and we produce high-quality products.”
Nesongozwi said the plan was to supply the domestic market.
His comment comes after Anglo American’s former Kumba Iron Ore mine shut down operations at Thabazimbi last year after it was not profitable to run the mine.
Arcelor Mittal South Africa (Amsa) also closed down its Vereeniging plant in 2015.
“Our future plan is to control all Limpopo fragmented iron ore mines and produce five million tonnes in the next four years,” Nesongozwi said.
“The mine has a measured resource of around 20 million tons, with phase one of the mine’s development focusing on mining detrital ore for an estimated three years while finalising
‘ ‘ We are a low cost producer unlike most major mines
a feasibility study for exploiting the main ore body of high-quality hematite, calcitic and banded iron ores located in the mountainous area for an estimated 12-year life of [the] mine,” he said.