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Merare Resources Limited is a black economic empowerment company listed on the JSE Limited, which is committed to a strategy of growth and diversification in the resources sector using its empowerment credentials to access opportunities created by the change in the South African mining legislation and Mining Charter.
Through its wholly owned subsidiary, Merafe Ferrochrome & Mining (Pty) Limited, it participates in 20.5% of the EBITDA of the Xstrata-Merafe Chrome Venture (established in July 2004), the world’s largest ferrochrome producer.
Through Merafe Coal, its 50/50 joint venture with Scharrig Mining Limited (established in June 2007), Merafe Resources is maximising the value of its existing coal resources while continuing to look for further growth opportunities in the coal mining sector.
PROJECT AND DEVELOPMENT DETAILS
Operations: Xstrata-Merafe Chrome Venture
A number of inherent features should ensure that the Venture remains a low cost producer. These include direct access to rail transport, a low cost power supply, efficient work practices and access to long-life chrome ore reserves that are favourably located close to its smelters.
All of the Venture's chrome mines are shallow, underground mines. Decline shafts access their gently dipping reefs of chromite. Mining is of a bord and pillar nature and is currently conducted at depths ranging from 50 to 350 metres below surface. All development is on reef, thereby minimising waste dilution. In addition to ore from its own mines, ore is purchased from nearby platinum producers, where chrome rich fines are discarded as a waste product. Production is derived from 18 furnaces at four metallurgical complexes.
The simple and unsophisticated control process used in the smelters has proved to be highly cost effective, with annual furnace availability figures in excess of 98.5% being maintained. One of the major design features of most of the Venture's furnaces is maximum flexibility with regard to the nature of ore feed and reductants, which means feedstock largely considered as waste by most other ferrochrome producers can be used in its furnaces.
The Venture's combined assets include:
Six mines
Horizon mine (a Merafe Resources asset)
Thorncliffe mine
Rietvlei Silica Mine
Waterval Mine
Kroondal Mine
Helena Mine
20 furnaces at five metallurgical complexes:
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Boshoek smelter (a Merafe Resources asset) - capacity 240kt per annum
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Rustenberg smelter - capacity 430 kt per annum
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Wonderkop smelter - capacity 553 kt per annum
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Lydenburg smelter - 396 kt per annum
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Lion smelter(started production September 2006) - capacity 360 kt per annum
Merafe Resources' share of the ebitda of all these assets is 20.5%.
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