Modern Mining November 2020

BULK COMMODITIES

Resources and Energy and Water Use Licence confirmations. Van Heerden adds that given the proximity to the existing Demaneng operations, leverage opportuni- ties exist. The asset includes a possible manganese resource for further exploration, which is similar to Demaneng and again, synergies through the combi- nation of these resources are possible. “Further expansion opportunities exist to increase the resource size at Driehoekspan and Doornpan, but this will likely only take place into the future, as it remains the Afrimat operating style to take over and stabilise operations before attempting expansion,” Van Heerden elaborates. A mining contractor agreement is in place with Coza, which allows Afrimat to initiate mining opera- tions during the interim period until all conditions

precedents are met, starting at the Jenkins mine. “As usual, we conducted thorough due diligence and we are confident that these three mines will add to the commodities segment. The ability to supply the inland market further strengthens diversification within the segment,” he says. Van Heerden tells Modern Mining that he expects Coza to produce in the region of 1,25-million tonnes of saleable product in about a year after Afrimat starts operations. “We will start ramping up around July next year, and during the second year of opera- tion we should be able to reach the 1,25-million capacity,” he says. Nkomati update Elsewhere, Afrimat is in the process of expanding its bulk commodities footprint into the anthracite

Above: The competitive advantages of geographic location and unique metallurgy – some of the critical criteria Afrimat uses when evaluating any potential acquisition – are in place at Nkomati. Right: The possible acquisition of Nkomati mine gives Afrimat access to a new mineral with a different profile and cycle, thus further diversifying the Bulk Commodities segment.

14  MODERN MINING  November 2020