In conversation with
capital investment with similar economic returns and a substantially
increased life of mine. A phased programme of work has been
prepared to review and verify the underlying design parameters,
assess various optimisation opportunities and develop a proposed
single solution within 12 months.
In Ghana, a 50+1%-owned subsidiary of Kropz, First Gear
Exploration (First Gear), is currently undertaking exploration work
to confirm that the phosphate-bearing horizons of the HKK deposit
in Togo extend into the Aflao area of neighbouring Ghana.
Phosphates have been mined since 1961 in the southern parts of
Togo by the state-owned company, Société Nouvelle des Phosphates
du Togo (SNPT), near the capital city, Lomé. Following the start
of mining in Togo, it was considered that these deposits may
extend westwards into Ghana. This was confirmed by preliminary
investigations undertaken by Geological Survey of Ghana (GSG) in
the 1960s.
The SNPT Kpeme mine in Togo is the single major producer in the
country. The deposit produces a phosphate rock concentrate high
in P2O5 with beneficiated product grade of typically 36%, P2O5
which places it at the high end of the commonly traded phosphate
rock scale.
The exploration project has been initiated using a phased approach,
and eight additional lines of Mobile Metal Ion (MMI) sampling
having been carried out post IPO expanding the total strike length
covered by MMI test work to 6km.
Radiometric survey over all of the MMI lines is planned to
commence in Q2 2019; along with a detailed drone survey and
mapping of the entire target area.
What do you regard as the major opportunities and major risks or
challenges in both the Congo and Ghana?
Both countries offer attractive mining investment environments
with the necessary infrastructure in place, safe operating
environments and governments that are eager to support growth
within the sector.
A number of the Kropz board members have previously operated
successful mining projects in various jurisdictions across Africa
and we are thus cognisant of the potential opportunities these
jurisdictions offer.
I have found that one of the biggest challenges a company is likely to
face when moving into a new jurisdiction is trying not to ‘force a fit’
with how one might have operated a project in some other location.
It always takes a little time, but in the end it is well worth the effort to
get to know and fully understand the culture and practices applicable
to the new jurisdiction and to then find a way to merge the best of
both worlds.
How significant will these projects be in the development of these
two countries?
While we would naturally like to believe that the impact will be
considerable, and that may well be the case with respect to the local
communities in which we operate, the truth is that there are other
www.africanmining.co.za
industries such as gold in Ghana and oil and gas in RoC, that will
always be considerably bigger than phosphate. However, it is also
true that the impacts of these projects will not be insignificant in
terms of forex generation, tax contributions, job creation and skills
development and perhaps most importantly, additional food security
and improved farming efficiencies. As such, we are confident that our
contribution will indeed be a positive one.
Will the operational and project management in the Congo (and
Ghana) differ from the way you operate at Elandsfontein, and if so
what will be the similarities and/or differences?
The Kropz approach has always been to keep our executive
management team as small as possible, and for this team to then
work with, lead and guide the development of our onsite project
teams. One of our core functions is to direct the corporate culture
under which we operate and to ensure maximum efficiency and
appropriate economies of scale.
The executive management will thus continue to look after the full
project portfolio, but the Kropz team will certainly have to grow in
each of these jurisdictions to accommodate the new projects as
they develop.
Will the project be similar, and is Kropz planning to export the
fertiliser? What about the infrastructure in these countries? Are the
rail networks and roads, ports and electricity sufficient?
The potential high-grade nature of the Ghanaian asset means
that this project is likely to be somewhat different from the other
two projects, as it would most likely only require the washing
and classification of the ore in order to produce an attractive end
product. However, the Hinda operation is likely to end up being
fairly similar to what we have at Elandsfontein.
All of our projects have been chosen, at least partially, on account
of their ready access to appropriate infrastructure, transportation
and deep-water ports. While some level of ancillary support
infrastructure is always essential in projects of this nature, we are
currently quite comfortable with the operating environments in
which our projects are located.
During the first few years of Kropz development, the majority of
our production from each of these locations is likely to be sold
and exported to large global industry stakeholders. However, there
is potential for some degree of local value addition, beneficiation
and distribution, and this is very much a part of Kropz’s longer
term aspirations. We will look to manage the long-term vision
one step at a time and the initial emphasis will undoubtedly be on
getting the plants up and running, creating sustainable working
environments, generating revenues, paying taxes and ensuring
sound shareholder returns.
What is the outlook for phosphate and fertiliser mining in Africa
and which regions should we be keeping an eye on?
With extensive natural resources, the fastest-growing population,
and currently the worst returns from its arable land, sub-Saharan
Africa offers considerable upside potential for phosphates and the
fertiliser industry as a whole. As to which region one should keep an
eye on, my simple response would be to watch Kropz, and watch the
west coast of Africa. b
JULY - AUGUST 2019 AFRICAN MINING
19