The official sod-turning for South Africa’s newest manganese mine, Tshipi é Ntle, will take place on September 14, 2011 near Mamatwan in the Northern Cape.
Tshipi is an open pit operation set to commence production in 2012. The mine is designed to produce 2.4-million tonnes of top quality manganese ore every year for the next sixty years. It is majority owned by broad based black South African entities and has a strong international shareholding through Australian-listed Jupiter Mining and Singapore’s OM Holdings.
The shareholders have raised the R1,7-billion necessary to construct the new mine; already machines are compressing the sandy soil of the Kalahari Desert to create a solid foundation which needs to last decades.
“The manganese lies 70 metres below the present level of the Kalahari and before we reach the manganese we have to remove about 22 million tonnes of overburden,” said Mokgosi Nkoana, Tshipi’s general manager, “South African mining expertise is very advanced in terms of extracting the ore safely, cost effectively and with regard to the environment. This is one of the things that made this new mine attractive for investors.”
Another task for the miners is construction of a new rail siding. “We have already started construction of a railway siding with a state-of-the-art rapid-loading terminal. This will enable us to efficiently load the manganese ore and transport it to South African ports for export,” said Nkoana.
“We have markets for our manganese for decades to come so we are planning now to make sure that South Africa and its people benefit far into the future,” he said.
Finn Behnken, a Tshipi director, says that Tshipi é Ntle is well positioned to become a significant supplier of manganese to international markets. “The quality of South Africa resources is exceptional and we have the ability to mine the manganese by means of open pit methods which adds to the ease of operation,” he said.
Behnken also praised the structure of the Tshipi partnership. “We have a truly exceptional partnership between South African and international companies. Each partner has a unique set of skills that they have brought to the table.”
Behnken said the market demand for manganese remains strong. “Ninety per cent of manganese is used in steelmaking and demand is driven by trends in steel production which has recovered significantly after the global financial crisis, largely due to the exceptional Chinese growth rate. China produces approximately 50 per cent of the world’s steel and over the last few years has become a major customer of imported manganese ore.”
Tshipi é Ntle’s major shareholder is Ntsimbintle which owns 50,1 per cent. Jupiter Mines Limited owns 49,9 per cent. Jupiter is 85 per cent owned by an inventor grouping under Brian Gilbertson’s leadership. Singapore-based OMH has a 26 per cent stake in Ntsimbintle.
Saki Macozoma, chairperson on Ntsimbintle stresses that Tshipi is true South Africa venture. “Black South African business has piloted this project since inception and it is very satisfying to now be at the point where the official sod-turning can take place,” he said. “From the beginning we were determined to make sure that our shareholding represents broad based black economic empowerment and we have been successful in that many of our shareholders are small scale entrepreneurs and developmental bodies such as the John Taolo Developmental Trust, which helps a wide variety of social development projects in the Northern Cape.
Macozoma said that initially 350 new jobs would be created by the new mine and as many as 2 000 additional jobs would be created through the provision of goods and services.
Singapore-based OMH will manage marketing activities for Ntsimbintle’s share of production from the new mine. OMH is a world leading independent manganese focused producer, smelter and marketer. It already has a manganese mine in Australia and a sinter and alloy processing facility in China.
“This transaction will considerably strengthen trade ties between South Africa, Singapore and China and will be beneficial for all partners,” said Macozoma.
Cynthia Mogodi, chairperson of the John Taolo Gaetsewe Developmental Trust, which owns 15 per cent of Ntsimbintle, stressed the importance of the mine for the impoverished region.
“It is very important for our area which is one of the poorest in South Africa,” she said. “It should be made widely known and celebrated that this is a black-owned mine that will help provide a better future for the people of the Northern Cape and generate tax revenues that will benefit all South Africans.”
The sod-turning ceremony will reflect the commitment of Tshipi é Ntle and its shareholders to the Northern Cape. Even though this is a remote and sparsely populated region of South Africa, local suppliers and service providers have been identified to create a festive atmosphere so as to celebrate one of the most significant developments in the area for many years.
FOR FURTHER INFORMATION PLEASE CONTACT DAVID BARRITT ON 082 603 3981
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