» Introduction
Elandsfontein
Opinion

Introduction

24 August 2016
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Introduction

WHO IS KROPZ?

Kropz is an explorer, mine developer and miner of fertilizer feed minerals, primarily phosphates. Kropz is in the process of vertically integrating its business in order to produce a range of plant nutrient fertilizer products for the sub-Saharan African market.

SO WHAT’S WITH THE HEART?

The use of the green heart in the Kropz logo represents Kropz’s dedication to its caring approach towards its people and its communities, as well as its consideration for the environments in which it operates.

HOW IS KROPZ LINKED TO ELANDSFONTEIN?

Kropz is the majority shareholder, major funder and debt provider for the development of the Elandsfontein phosphate project. Kropz’s commitment to the Elandsfontein project is driven by its goal to access world-class fertilizer feedstock materials, of which phosphate is the most sought after.

The Kropz management team, who is developing the Elandsfontein project, is committed to world-class environmental standards across every aspect of the project. To this end they have embraced the goal of Elandsfontein becoming the world’s first truly green mining operation.

WHY MINE AT ELANDSFONTEIN?

Elandsfontein is South Africa’s largest known sedimentary phosphate deposit, and the second largest in the country, after the igneous Phalaborwa deposit. The Phalaborwa deposit is not able to economically support South Africa and the sub-continent’s phosphate needs, ultimately threatening food security.

WHY IS PHOSPHATE SO IMPORTANT THAT IT SHOULD BE MINED?

Phosphates are a naturally occurring salt form of phosphorus. Plants need phosphorus in order to grow. Phosphate fertilizers help to increase crop yields so more food can be produced from smaller pieces of land.

DO WE NEED TO MINE PHOSPHATE IN SOUTH AFRICA?

Phosphate demand is largely dependent on the need for food. Food demand is driven by population growth. South Africa currently imports approximately 60% of its fertilizer needs, making access to phosphate critically important to South Africa’s future food security.

LOCAL SPEND AND LOCAL EMPLOYMENT

Kropz is investing R1.35 billion developing the Elandsfontein Project, of which approximately R65 million (excluding salaries and benefits paid to local employees) has already been spent directly in the Saldanha Bay Municipal area.

Kropz is committed to uplifting the local communities in which it operates by employing local labour for both the construction and operation of the Elandsfontein project, while strict health and safety standards are adhered to.

Kropz will continue to work with the community to ensure that it can holistically improve the local employment rate.