Business Cases - Metallurgical Cluster

Chrome

Chrome South Africa hosts around 72% of the world’s chromium ore reserves, within the Bushveld Complex. Cr In SA, apart from the ferrochrome industry, very little downstream beneficiation of chrome is undertaken. Metallurgical applications absorb more than 90% of chromium consumption, with more than 70% of the world’s chromite used in the manufacturing of stainless steel. Current railway capacity for chrome transportation to SEZ is below 1 mtpa and between 1-10 mtpa along the Groenbult – Hoedspruit section, then it increases to 20-60 mtpa from Groenbult to the Metallurgical Cluster. TFR (Transnet Freight Rail) railway development plan is that in 2046 the capacity from Groenbult to Hoedspruit will be increased to 1-10 mtpa for the entire section. 

Chromite_Ore

Coal

Coal Accessibility and versatility of coal makes it a cost- effective option for many consumers. C Coking coal markets are dependent on the demand for steel in the construction industry which is forseen to rise. The Waterberg and Soutpansberg coal fields will supply the metallurgical

Iron Ore

The South African iron ore market is well established globally, with iron ore production and exports remaining as one of the main pillars of the South African mineral industry. Fe In the 12 months to June 2021, the iron ore industry amounted to 15% of South Africa’s total mineral revenue. Local beneficiation is however minimal due to export of raw materials imparting high revenues. Increasing global urbanisation trends and demand for construction materials make this value chain critical to the South African economy, particularly as a global player and leading producer of iron ore. Musina-Pyramid line handles 20-60 mtpa. 

irone-ore-mmsez

The iron ore demand from the Metallurgical Cluster is -12.0 mtpa. TFR is planning to increase capacity to 80 to >100 mtpa by 2046, which will be more than adequate to handle the iron-ore demands of the MMSEZ.

LimeStone

 The cement industry alone, utilises CaCo3 approximately 70% of limestone mined annually in the country, with the balance allocated to the metallurgical industry, agriculture and diverse industries manufacturing fine ground calcium carbonate (GCC) and precipitated calcium carbonate (PCC). Competition is relatively low among GCC and PCC producers and profits the context of the MMSEZ Limestone is quarried at various locations within Limpopo Province and not largely dependent on global markets. Operations are small scale and run by local companies. Substitution of cement by steel in construction is fast becoming a trend in South Africa, however the local market will almost always have a need for Portland cement. The MMSEZ in this regard can leverage opportunities for the manufacture of cement. 

limestone-mmsez

A limestone quarry is adjacent to the Makhado site for supply of limestone, however resource estimates for this quarry are unknown. Limestone can thus move via conveyor belts or trucked to the Metallurgical Cluster. There are other limestone projects just over 200km south-west of the Metallurgical Cluster which could provide feedstock for the cement and lime plants. This would be transported via the Musina – Pyramid line to the SEZ.

Manganese

Manganese is expected to be transported via the same line as iron-ore from the Northern Cape Province. Manganese China currently dominates the market as the leading global producer of manganese (31.67 Mt), followed by South Africa at 16.02 Mt in the year 2020. Mn The vast majority of South Africa’s manganese production (currently >85%) is exported as raw ore or partially processed concentrate. The cost to the country of exporting ore rather than processing it to produce ferromanganese and then importing that as a finished steel product is very high.

Manganese-mmsez

Manganese is expected to be transported via the same line as iron-ore from the Northern Cape Province.

 Silica

A very small amount of total silica production (less than 1%) and about 3% of higher grade processed silica is exported (DMRE). There are over 280 sand suppliers in South Africa, with 22 suppliers of higher-grade silica sand. SiO2 Mintek, in partnership with Difeme Holdings Group (DHG), has developed a Beneficiation Strategy to mine and integrate a value-added process to produce high-purity quartz (up to 99.99%) which has been reported to be an exceptional purity to obtain globally. South Africa still needs to close the gap in silica beneficiation to ensure it can utilize its current deposits to supply high-purity quartz (HPQ), as its demand continues to grow globally. Silica for the Metallurgical Cluster will be supplied via the Musina-Pyramid line from the areas north of Polokwane.

Vanadium

Vanadium South Africa is third in position for vanadium production (7%). V The vast majority of South African vanadium alloy production is exported (currently more than 96%), with more than 76% of ferrovanadium exports destined for Europe. Research in the use of vanadium in cathodes of batteries for EVs present a promising application. There is only one vanadium processing and beneficiation plant in South Africa, operated by Vanchem, situated in Ferrobank Industrial Park, Mpumalanga Province. The plant has gap for technology improvements in cleaner extraction methods and should be considered in any future vanadium processing projects in the country.

Vanadium-mmsez

Vanadium for the Metallurgical Cluster will be supplied via the up-graded Groenbult-Hoedspruit line from and the Musina Pyramid line from the eastern and northern limbs of the Bushveld Complex. 

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