Questions but no answers on Kalagadi
[Ferro-Alloys.com]Thefate of ArcelorMittal’s 50% stake in Kalagadi Resources remains up in the air.Daphne Mashile-Nkois, the majority owner of Kalahari Manganese which holds a40% interest in Kalagadi Resources, has been attempting to buy ArcelorMittal’sstake for ZAR3.9-billion, or around $440-million. Final bids to finance or buythe interest were due on Feb. 23, and nothing has been heard since. “It’s notworth half that amount,” one prospective buyer said.
In the meantime,Kalahari wants to hot commission its sinter plant but since the mine has beennot been commissioned, it will need to buy fines from other South Africanminers. Reportedly, Metmar, which owns 11.66% of Kalahari Resources, has struckdeals with UMK and BHP Billiton for at least some of the 100,000-mtpm of finesneeded. The plant has the capacity to use 250,000 mtpm of fines.
The sinter plantwill be hot commissioned once electricity is connected. Eskom is to supply amobile electricity unit while the connection to the grid is finalized. Themanganese mine is expected to be completed in the first half of the 2014.
For its part,Metmar is in the final stage of concluding a tolling agreement with Kalagadiand hopes to market 50% of the sinter produced and half of the smelter’seventual output.
Metmar willsupply both manganese fines and coke while Kalagadi is to charge a toll fee forconversion. Startup of the Kalagadi sinter plant will allow Metmar to turn aportion of its large Zimbabwe-sourced metallurgical coke stockpile in Pretoria. At fullproduction, the Kalagadi plant will consume up 14,000 mtpm of the stockpiledcoke.
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