Who would want us? Well let’s make a list.

Before I go on I want to thank Irish111 for her great DD helping me find this info. So thank you Irish.

Leading manufacturer of chromite globally is S. Africa. Found in the Bushveld Igneous Complex.

Africa’s Major producers.

Assmang Ltd.

Samancor Chrome.

Xtrata South Africa.

International Ferrometals Ltd. (IFM)

Assmang: New underground mine in Dwarsrivier. Increasing capacity to 100,000 tonnes/mo.

Samancor: Produces 3 million tones/y. Consumes 2.3 million tones/y for internal requirements.

Xtrata South Africa: Has five chromite ore mines, churned out 3.6 M tonnes of chromite ore in 2005, down from 4.2 M tonnes in 2004

International Ferro Metals IFM: Australia-based operates the Buffelsfontein mine and ferrochrome smelter plant in Bushveld. The company has set up two furnaces to facilitate production of 267,000 tonnes/y of charge ferrochrome.

There was a rumor a while back that IFM showed interest in the ROF. The rumor was that this play (IFM) was running out of Chrome and has a multi year contract with another country to supply.

Then there came this:

By: Darren Parker 
08 Aug 08 


Ferrochrome producer International Ferro Metals (IFM) has increased its cost estimate for the expansion of processing facilities at its Buffelsfontein ferrochrome mine and smelting plant to R4,15-billion, from the original cost estimate of R3,2-billion. 
The reasons for the almost R1-billion increase in the cost of expanding processing capacity are higher prices of steel, the devaluation of the rand, and general mining cost inflation in South Africa.

The expansion will bring IFM's capacity to beneficiate ore up to 665 000 t/y, from its current 267 000 t/y capacity.

Currently, IFM produces ferrochrome from chromite ore, located in the Bushveld Igneous complex. The ore body at Buffelsfontein consists of multiple seams and the method employed to retrieve it is a combination of down-dip stoping and breast mining.

The two parallel declines at the Lesedi Shaft were developed on seam from surface. One trackless decline is used to handle miners and equipment, while the second is fitted with a conveyor installation system for the handling of run of mine material and waste.

IFM has recently acquired the rights to the adjacent Sky Chrome property and its substantial ore reserves. A new mine is to be started there in partnership with the local tribe, the Bapo Ba Mogale, ensuring that IFM remains self-sufficient in ore for more than 40 years.

Construction of three additional 66-MVA smelting furnaces is planned to commence in the next few months, together with an additional 700 000 t/y pelletising and sintering plant and beneficiation plant. This expansion is to increase output by 150%, from the current 267 000 t/y to 665 000 t/y.

This year, during periods of constrained electricity supply, IFL operated its mine, beneficiation, sintering and pelletising plants at capacity, electing to reduce furnace consumption to comply with state-owned power utility Eskom's guidelines to consume no more than 90% of capacity consumption.

In January, Eskom provided a commitment letter to IFM that confirmed the provision of electricity for the proposed expansion. The feasibility study assumes that Eskom will honour its commitment to supply electricity for the expansion from connection during January 2010 and that each component will be constructed simultaneously.

In the event that the commitment is not met by Eskom, the planned completion dates of the beneficiation plant, pelletising and sintering plant and the three furnaces will be staggered, as each component requires electricity, with the furnaces consuming 85% of total requirements.

Stage One 
Stage one began in May 2008. The initial stage entails expansion of IFL's mining operations and construction of the 1800 ktpa beneficiation plant. The expanded mine and beneficiation plant is expected to be in production in September 2010. IFL intends to sell surplus chrome ore arising from this phase of the expansion to the export market at favourable ore prices.

Stage Two 
On receipt of confirmation that adequate electricity supply will be available, IFL plans to construct the additional pelletising and sintering plant and the three furnaces. The 700-ktpa pelletising and sintering plant will consume 6 MW of electricity. The 400-tpa additional furnace capacity will consume 162 MW of electricity. These furnaces are expected to take 18 months

As we can see they are NOT running out of Chrome. There is lots. I thought “so much for this rumor”. But on reading I found that South Africa has a problem with Hydro and instability as we all know now.

Some of these mines are more than 4 clicks down and require Hydro for air conditioning. Can you imagine how much hydro it would take to cool down HELL?

Quite a bit I would suspect. Would the Hydro be steady or intermittent? I have seen the term intermittent at times related to this issue.

What about stability? South Africa? Give me a break.

Now lets just jot down a few reasons one or all of these plays would be interested in Canada.

Potential for open pit mine.

No air conditioning required.

The largest chrome deposit in the world.

Excellent ratio.

Stability in the Country

All the Hydro they would ever need already promised..

Access to shipping et al.

The list goes on. To me, it’s a no brainer. Any one of these plays or all of these plays could potentially want in on our prize. They could keep their south Africa but when they have problems down there, Canada will be strong and steady thus they would not only have no down time, they would have an excellent product to ship and the shipping would be easy.

Roads? The Government will help.

So take your pick. It could be any one of these but keep an eye out for IFM.

Again I thank Irish for her DD…J

Don