Brits, South Africa — MININGREVIEW.COM — 11 October 2010 – South Africa Metals Equity Limited “’ a company based in North West province, and with mainly black South African investors as shareholders “’ plans to invest US$300 million (R2.1 billion) to build a plant for producing pig iron in South Africa.
Revealing this in an interview with Reuters, chairperson Donovan Chimhandambi said a feasibility study for the project was expected to be completed by the second quarter of 2011, before capital raising for the project would begin.
“The company will produce about 500 000tpa of pig iron,” Chimhandambi added. “Production of the steel-making ingredient is expected to start at the end of 2013,” he revealed.
Chimhandambi said construction of the plant, which would treat materials from mining waste dumps to produce iron pigment and vanadium, would start next year, and was expected to take two years.
He went on to day that Bank of America-Merrill Lynch had been appointed as lead in capital raising. “It will take us about six months to raise capital for the project,” he estimated.