London, England — MININGREVIEW.COM — 27 May 2010 – Chromex Mining plc “’ an AIM-listed chrome mining company focused on Southern Africa “’ has secured US$5 million (R37.5 million) funding, on a pre-payment for product basis, for a dense media separation (DMS) circuit and ancillary plant improvements at its Stellite opencast chrome mine on the western limb of the Bushveld Complex.
A statement released here confirmed that the DMS circuit “’ which is scheduled for completion in Q4 of 2010 “’ would double chrome production capacity to 40,000 run-of-mine tonnes per month, and improve recovery margins and economic efficiencies at the plant.
It added that the US$5 million (R37.5 million) funding had been secured in the form of a pre-payment from Suzhou Kaiyuan Chemical Company Limited (Suzhou), a Chinese steel manufacturing company. After the initial six month construction period, all lumpy chrome product would be sold to Suzhou for a period of two years, and during this period a percentage of each lumpy chrome consignment would be used to offset the pre-payment. Pricing would be market driven and negotiated on a monthly basis.
The statement went on to reveal that construction of the DMS had already commenced with cold commissioning planned for October 2010. Other capital projects, which include the construction of a tailings thickener and spirals upgrade, were expected to be commissioned during the early part of June 2010. The thickener would significantly reduce the Stellite processing plant’s make-up water requirements, and the spirals upgrade, which included two additional scavenger spiral banks, was also being installed to optimise chrome recoveries.
Chromex CEO Russell Lamming commented: “This is a fantastic deal as it provides both a guaranteed off-take to China, our largest market, and allows for expansion without a dilutive effect on shareholders. With chrome production set to double at our South African operation, our recent acquisition in Zimbabwe, strong cash flow and a strengthening of the team following the recent appointment of two chrome specialists, we are well placed to take advantage of the increasing demand for chrome,” he added.