Anglo-Swiss mining giant Xstrata plc has announced that it has approved the development of the second phase of its Lion ferrochrome complex expansion in South Africa.
According to a company statement, the expansion will involve the construction and commissioning of a 360,000 mt per annum capacity smelter and will increase the Xstrata-Merafe chrome joint venture's total ferrochrome capacity to over 2.3 million mt per annum. South African company Merafe Resources holds a 20.5 percent interest in the venture and has an option to participate in the expansion.
The development will entail a total capital investment of US$710 million and includes US$100 million for the concurrent development of the 1.2 million metric ton per annum Magareng mine within the Thorncliffe mine complex. The construction is scheduled to begin in the first quarter of 2011, with commissioning planned for the first half of 2013.
The expansion will utilize Xstrata's proprietary energy-efficient Premus technology, and will reduce the overall cost of the venture's total ferrochrome production by around six percent. Xstrata is also currently completing a feasibility study for the first phase of a 600MW thermal power generation plant that will supplement future electricity supply.