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Beneficiation thrown to top of agenda
David McKay
Posted: Thu, 13 Oct 2005
[miningmx.com] -- ANGLO American’s newly formed Sishen Iron Ore Company (SIOC), which is to be listed in Johannesburg, has been asked to “meet the challenge” of building a new steel mill by minerals and energy minister, Lindiwe Hendriks.
The minister’s announcement surprised Anglo and its partner, Kumba Resources, which today unveiled a R16bn black-controlled resources firm, the country’s largest, involving an unprecedented 17% stake held by womens’ business groups.
As part of the arrangement, a separately listed iron ore company will be formed in which the newly empowered Kumba Resources (Newco) will have a one fifth stake.
Commenting on the creation of the iron ore company, Hendricks said: “it will be asked to contribute towards the establishment of a new steel smelter in South Africa. We look forward to hearing how the new company will contribute towards
beneficiation,” Hendricks said.
Hendricks gave no indication of the genesis of the project or who would build it.
Con Fauconnier, Kumba Resources CEO, said his company supported beneficiation “where it makes commercial sense”.
Beneficiation is top of mind for government which this week held hearings in Cape Town over the proposed promulgation aimed at improving beneficiation in the diamond industry. The steps have been criticised by the diamond industry which they say will result in the loss of 11,000 jobs.
Another bill focused on beneficiation, the Precious Metals Amendment Bill is scheduled for discussion next week by a parliamentary sub-committee meeting.
“About nine million tons/year of iron ore produced by Sishen and Thabazimbi goes into the local industry at cost plus three basis which is a huge contribution,” Fauconnier said. Kumba was also considering the merits of producting char from coal and other beneficiated
products.
Hendricks also referred to the establishment of a manganese smelter which was under development of Mintek, a South African research and development company.
Commenting on beneficiation, Hendricks said: “If it doesn’t happen there is legislation we can use to make it happen. But we’re not hurrying with anything. I think they’ve heard us loud and clear.”
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