Kropz’s most developed asset is the Elandsfontein Project (Elandsfontein) on the West Coast of South Africa, approximately 95km north northwest of Cape Town, within the Saldanha Bay Municipality.
Kropz acquired the Elandsfontein property in August 2010 and has since invested some US$120 million on exploration, bulk sampling, feasibility studies and the subsequent construction of a mine, mineral processing facility and associated infrastructure.
Elandsfontein is a robust and substantially de-risked mining project. The box cut has been established and the highly automated processing facility, with the capacity to deliver in excess of 1Mtpa of >31% P2O5 phosphate rock concentrate, is near completion. Final commissioning is dependent on further test work and design modifications.
Kropz’s operating cost estimates suggest that Elandsfontein is well-positioned to compete effectively with other phosphate rock suppliers in the traded market. Also, its close proximity to the deep-water port of Saldanha Bay enables it to target demand in both the Atlantic and Indian Ocean markets.
In terms of competitiveness, Elandsfontein should enjoy particularly advantageous freight rates to Brazil, and it should also maintain a freight advantage over North African-based suppliers in the important Indian market.
The Council for Geoscience, formerly the Geological Society of South Africa, regards the Elandsfontein deposit as the largest sedimentary deposit in South Africa. The West Coast region has a history of phosphate mining.
Development of the Elandsfontein Project has allowed Kropz to achieve strong, long-term partnerships, in particular with Elandsfontein’s black economic empowerment partner and one of its significant shareholders, the ARC Fund, a leading South African-based investment company.