PHOSPHATE developer Kropz said it would cost $355m in first phase capital to commission its Hinda project which is scoped to produce one million tons of the fertiliser.
This follows an updated feasibility study completed by Hatch Africa which confirmed a 201 million tons of measured mineral resource. A further 381 million tons have been identified in the indicated mineral resource category.
Hinda project is located in the Republic of Congo (Roc). Exports would be channelled through RoC’s Pointe Noire port at a free on board operating cost of $62.87 per ton. There is also scope for a second phase expansion to two million tons of phosphate rock annually following $301m in additional development capital.
The study delivers a 28-year life of mine extracting 31 million tons of ore in Phase 1 and 214 million tons of ore in Phase 2, said Kropz in an announcement on December 22. Hatch Africa’s study allows for an estimated three-year execution schedule with first revenue to be generated in 2025, assuming that the required funding is in place by June 2022.
The project has a valid environmental compliance certificate issued in April 2020, valid for 25 years, the company said.
Last year, Kropz had an environmental permit ratified by the South African government for the company’s Elandsfontein phosphate project, Elandsfontein, located in the Western Cape province. First ore was supplied to the Elandsfontein plant in December.
Production (and cash flow) won’t come soon enough for Kropz. In September the company had to secure an additional R200m from major shareholder African Rainbow Capital because of a funding shortfall.
