P-ZA-B00-001

Project Details
ID: P-ZA-B00-001 Name: KALAGADI INDUSRTRIAL BENEFICIATION PROJECT Status: Ongoing Country: South Africa
Sector: Ind/Mini/Quar Approval date: 18-mai-2011 Task Manager: JABBA Rafael Jose, PISD2
Total cost: 967551750
Currency: UAC
Source(s) of financing
AfDB: 96496634.76
Cofinanced: 835960151.4
Implementing Agency: KALAGADI MANGANESE LTD Location: SOUTH AFRICA

Description

An integrated industrial project encompassing mining, processing (sinter plant) and smelting of manganese ore. The mining and ore processing operations are located in the Northern Cape Province of South Africa, while the smelter operations will be located in the Coega Industrial Development Zone (IDZ) in the Eastern Cape Province. Of the total production output of 2.4 million tons per annum of the sinter plant, 71% will be sold in the export market and 29% will be processed at the smelter plant in Eastern Cape. The total ore resource estimate is 100 million tons, with 35 million tons of probable reserve.

Benefits

In addition to the fact that Kalagadi Manganese beneficiation project will contribute to the revival of mining activities in the Northern Cape, which is relatively underdeveloped, the project will provide significant economic benefits to both provinces by providing long-term employment and wealth creation benefits during the life of the project estimated to be in excess of 30 years. The project will create in excess of 1,000 direct jobs and 19,767 indirect jobs in both provinces.Furthermore, the household income is estimated to increase by R 767m in Northern Cape and R 865m in Eastern Cape. In the broader economy, as a result of the project, household income will increase by R 3.2bn, and Government tax revenue boosted by R 4.4bn.

Rational

The project is expected to have a very positive demonstration effect in South Africa. This project will represent one of the largest private sector, non-financial intermediation intervention in the country and would provide a tangible example of a successful, integrated investment in the country. The project will encourage women entrepreneurship and local businesses.