Premier Stan Mathabatha and his delegation of MECs and other role players are currently visiting Russia and on Monday met with a major player in the steel industry, Dimitry Solomin who is Chief Executive Officer of Severstal IIBG, a subsidiary of the Severstal Group.
Phuti Seloba, Provincial Spokesperson said Mathabatha and Solomin had discussions about the status of the Iron Mineral Beneficiation Services (IMBS) Masorini Process Plan that has been commissioned in Ba-Phalaborwa.
“The current unit has the capacity to produce 50 000 tonnes per annum (t/pa) and is designed as a modular unit. There are plans to increase the modular unit to ten units to increase production to 500 000 t/pa at estimated at $150 Million. The 60 employees needed per IMBS Masorini Process Modular Unit will then be increased to the creation of 600 direct jobs. There is scope for a further investment to increase the 500 000 t/pa to 1 million t/pa,” Seloba informed.
According to Seloba the steel products produced will be primarily exported, however, based on discussions with the provincial government, the downstream beneficiation options will be investigated to unlock the value chain competitive advantage that can be extrapolated from the Masorini Process and IMBS Plan.
The IMBS produces an iron product that has a significantly higher value, due to its higher iron content than iron ore. The transport of these higher value goods lead to reduced logistics costs. Vast untapped superfine iron oxide resources exist world-wide. These are the waste by-products of iron ore beneficiation, steel plant waste and other mineral processing from iron ore reserves. Every year between 5% and 12% of iron ore production is added to the existing superfine waste reserves.
Story: NELIE ERASMUS
Photo: Premier Stan Mathabatha meets Dimitry Solomin, Chief Executive Offier of Severstal IIBG in Russia.