Interalloys and Onicaster to lift output at mine

UK company Interalloys Trading and black-owned business partner Onicaster have announced plans to invest $50m to ramp up production at their Rooinekke iron ore mine, near Griekwastad in the Northern Cape.

“The Rooinekke mine is a priority in terms of our global investments and we intend to expand mining operations in the first half of 2017, creating muchneeded economic activity in the Griekwastad area,” Interalloys CEO Charles Law said.

“Further capital will be invested in the commissioning of our own rail load-out facility to ensure that we have longterm export logistics capacity and can provide a viable option to other emerging miners seeking access to the Transnet iron ore export channel in the Northern Cape.”

Interalloys aims to have its own rail-loading facility operational by the third quarter of next year. The Rooinekke mine is expected to produce about 400,000 tonnes of iron ore a year, entirely for export.

The investment in the rail load-out facility will amount to $35m, $5m will be invested in the Rooinekke mine and $10m has been earmarked for other investments in the Northern Cape that are still under negotiation.

Rooinekke is Interalloys’ only owned operation in SA, but Law said the company had partnerships with a number of emerging miners in the Northern Cape and was looking to develop further relationships.

He expects the investment to create 150 permanent jobs, with about 100 of these being derived from the local community.

Law pointed out that emerging miners currently relied on the rail load-out facilities owned by the established iron ore majors, Kumba and Assmang. “Whilst this support from the majors has provided vital outlets to the export market, these arrangements cannot be relied upon for the long term.” Interalloys and other emerging miners were still reliant on the ongoing support from the major companies to provide interim logistical solutions.

INVESTMENT TO CREATE 150 PERMANENT JOBS, WITH ABOUT 100 DERIVED FROM THE LOCAL COMMUNITY

Northern Cape businessman and Onicaster shareholder Mzolisi Banga said that the investment would “empower other emerging miners and show the community that we care through the creation of meaningful jobs and the opening of business opportunities for potential suppliers and related businesses”.

“This is what Interalloys does where it does business around the world and it is a philosophy that we value wholeheartedly,” he said.