London, England — MININGREVIEW.COM — 06 January 2009 – Chromex Mining plc – the AIM listed company dedicated to the acquisition, control and development of chromite mining and processing facilities on the Bushveld Comnplex – has finalised plans to construct a new processing facility at its Stellite chrome mine on the western limb of the complex.
A company announcement released here revealed that the plant – which was expected to be commissioned at the end of April 2009 at a cost of approximately GBP1.5 million (R22 million) – had been designed to process 40 000 tonnes per month of run of mine ore.When operational, it would enable Chromex to supply a range of products including chemical grade and metallurgical grade sands, in addition to the chrome ore currently being produced.
The announcement added that to finance plant construction, the company had secured a loan facility of GBP2 million (almost R30 million). The lender had – subject to South African Exchange Control approval – the option to convert the loan into Chromex ordinary shares at a 22p strike price.
Chromex also announced that – in line with the reduced demand for chrome – the company had temporarily reduced production at Stellite to approximately 10 000 tonnes per month of run-of-mine ore. However, importantly the company currently had two users seeking off-take agreements for this ore, and was also actively discussing an off-take agreement for chemical grade sand. An update on these developments would be provided in due course.
Stellite currently has a SAMREC compliant resource estimate of 31.9 million tonnes of chromite, which is being mined profitably and further underpins the robust nature and economic viability of the Stellite project. Chromex plans to upgrade the inferred resources through additional drilling, and to look at the feasibility of developing the underground resources in 2009.
Chromex CEO Russell Lamming commented: “The construction of the plant will provide a further string to our bow, and allow us to deliver a range of products to market which have the ability to impact positively on revenues going forward.”