Member Info for substp

Things that come to mind......much lower cost to them being on their doorstep.......supply a % of volume they need ......blend if they have to.......:-)

Could we do it? Volume? They estimate that it would take 5mt of iron ore fines to feed a 3mt steel mill per year. It would take 2 1/2 mtpa of devolatised coal to blend with the fines. The kicker is they want (unless it's changed) the coal to be 10%-15% ash , the carbon (air dried)@ 70% and a volatile content of up to 30%.

Been talked about for some time now.....:-) http://mg.co.za/article/2012-03-23-arcelor-cuts-irk-motor-industry

Russian Steel producer Severstal owns 33% of IMBS......???? http://severstal.com/eng/businesses/

http://www.imbsworld.com/process.htm

Kathu is where Kumba and Sishen iron ore are and Ngqura is Coega......I can't believe what I'm reading......Adobe page 273.....If it comes about......."Local coal"....:-) "The IDC has been mandated to facilitate the establishment of a new steel producer (especially flat products) to enhance domestic competition and to curtail monopoly pricing, but a key constraint is access to suitable iron resources to attract an investor. In this regard, the Kathu iron ore resources produce a significant fraction of iron fines which are currently dumped, estimated at 200 to 400 million tons. After upgrading these could be transported more economically to the coast by slurry pipeline using water in the Gariep Dam currently allocated to the Nelson Mandela Metro, for a local steel plant and for export. Brazil has a major iron ore slurry pipeline (Samarco) that carries ~20 Mtpa over 400km from Germano (Alegria Complex) to the coast where the fines are pelletised (Ponto Ubu) before export (Espirito Santo)392. A new pipeline will add a further 20Mtpa by 2014. In this regard, the Ministers of Public Enterprises, of Trade and Industry, of Water Affairs and of Mineral Resources should be tasked with assessing the viability of slurrying at least 25Mtpa of fines to Ngqura, including persuading the iron ore producers to cede the iron ore fines from the waste dumps and current arisings in exchange for rail export capacity. If the project is viable, the Minister of Trade and Industry should be tasked with concessioning these iron ore fines, through public tender against the establishment of an integrated steel plant of at least 3Mtpa (5Mtpa of fines) to be sold into the domestic market at Export Parity Prices (EPP) in order to introduce competition in the local market for all major steel types (long & flat products). The remaining 20Mtpa would then be available to the concessionaire for export. Both Brazil and India have leveraged iron ore exports to obtain steel plants and both Sweden and Finland used the iron ore resources to underpin state steel producers. One of the options: "The Kathu iron ore miners have upgradeable dumps(200‐400Mt) that could be slurried down to Ngqura using the Gariep Dam water already allocated to the Nelson Mandela Metro. The slurry line could be established by Transnet, the tender winner or a separate concession (BOT). This could create 50k to 100k jobs in downstream steel‐based industries." http://www.anc.org.za/docs/reps/2012/simsreport.pdf

Another one the IDC was looking at owned by Kobe Steel of Japan.... http://www.midrex.com/handler.cfm/cat_id/183/section/global and something Kumba has been looking at as well.... http://www.kumba.co.za/pdf/presentations/iron_steel_1final.pdf

Remember The IDC had studied titanium blast furnaces and rotary hearth furnaces, both able to use lower-grade iron ore and "local coal". http://www.iol.co.za/business/business-news/news-in-brief-1.1313305

Steel mill mooted for Coega IDZ 15:26 (GMT+2), Fri, 08 June 2012 http://www.algoafm.co.za/article.aspx?id=2382

Consumers prop up Eastern Cape 20 minutes agoJohan Brits The trend in the Eastern Cape is not the same as during the recession a couple of years ago; the province currently does not appear to be in recession, and it seems less affected by recent events. The Chris Hani district in the Eastern Cape is one of the areas suffering the most from unemployment. Premier Noxolo Kiviet last week opened the Elitheni coal mine in this district. According to Kiviet, investigation has indicated 200 million tonnes that can be exploited here. That is, as it were, only the tip of the mine dump. About 95% of the area on which exploitation rights are held still has to be explored. Kiviet regards the mine as a government investment that can irrevocably change the face of the Eastern Cape. Apart from the economic injection it can bring about, the new mine will create 500 direct positions in the first year and 2 000 over the next following five. - Sake24 http://www.fin24.com/Barometer/Consumers-prop-up-Eastern-Cape-20120608

Scaw Metals is being acquired by IDC.....But I'm more interested in the following...... A NEW APPROACH TO BENEFICIATION Beneficiation is one of the Mining Charter’s key pillars. In addition, the South African Mineral and Petroleum Resources Royalties Act provides for a reduction in the royalty levied in the event that iron is beneficiated above the 61.5% Fe content level. For a number of years, Kumba has engaged with relevant stakeholders on the issue of beneficiation and has fostered growth in the domestic steel industry and continues to supply iron ore to AMSA and Scaw Metals. Kumba also supports efforts by the Department of Trade and Industry and the Industrial Development Corporation to attract other steel producers to South Africa, and the potential establishment of a pelletising and steel plant at the port of Coega, in the Eastern Cape. http://tinyurl.com/d8jb2yo and http://www.engineeringnews.co.za/article/idc-sees-room-for-more-steel-capacity-in-sa-2012-06-06

http://www.coega.co.za/Content2.aspx?objID=196

????Coega????Pulverised coal(PCI)???? http://www.iol.co.za/business/business-news/news-in-brief-1.1313305 Ho HO HO.....very good read http://en.sxcoal.com/93/19064/DataShow.html http://www.engineeringnews.co.za/article/idc-sees-room-for-more-steel-capacity-in-sa-2012-06-06

WOW.....ARDC....Surely these boys and girls are the ones to get the job done if they are the ones! "Capability Statement Page 22 of 22 February 2011" http://dc178.4shared.com/doc/qxsCf4J5/preview.html

"Two week ago the Premier led the first blasting for the production of coals, saying Eastern Cape a GIANT IS AWAKENING." A very small but powerful mention in a Statement by MEC Mcebisi Jonas on the Media Launch of the Jobs Summit.......timing might be slightly off.....:-) http://www.ecprov.gov.za/modules/news/rss/download_media_release.php?id=298

http://www.snrplc.co.uk/videos/interview-with-david-nel/

Eastern Cape Jun 5 2012 11:40AM Mine to ease jobs dearth "The opening of the Elitheni Coal Company in Indwe, outside Queenstown, is expected to bring a welcome boost to employment in the area. The mine was officially opened by Premier Noxolo Kiviet at the weekend. Unemployment is rampant in the area (Emalahleni municipality) and already 200 direct jobs have been confirmed at the start of operations. Msutu said the mine’s policy insisted on 80% local employment." http://www.thenewage.co.za/52837-1016-53-Mine_to_ease_jobs_dearth

"embrace these investors so that your lives can improve for the better." "Yesterday signaled over 10 years of exploration work by Elitheni Coal. What was an exploration project went into full swing Production Phase. Residents, Premier Kiviet, MEC for Economic Affairs, Environment and Tourism Mcebisi Jonas and other officials waited patiently for the word go from CEO of Elitheni Coal Dave Nel." "Premier Kiviet said the provincial government: Support this development unequivocally Through the Provincial Government & Transnet MOU, we will have ensured that Transnet is ready for the first vessel in November this year We are continuing to encourage Transnet Freight Rail to release as much as possible of the railway line for the export of this coal We are supporting the mine through the contruction access road construction." http://www.info.gov.za/speech/DynamicAction?pageid=461&sid=27983&tid=70860

REPORTING of Mineral Resources...Start with page 12......REPORTING of Mineral Reserves.....Start with page 17.....:-) SAMREC......South African Code for Reporting of Exploration Results, Mineral Resources and Mineral Reserves http://www.samcode.co.za/downloads/SAMREC2009.pdf "32. A ‘Mineral Reserve’ is the economically mineable material derived from a Measured or Indicated Mineral Resource or both. It includes diluting and contaminating materials and allows for losses that are expected to occur when the material is mined. Appropriate assessments to a minimum of a Pre-Feasibility Study for a project and a Life of Mine Plan for an operation must have been completed, including consideration of, and modification by, realistically assumed mining, metallurgical, economic, marketing, legal, environmental, social and governmental factors (the modifying factors). Such modifying factors must be disclosed. Mineral Reserves are reported as inclusive of diluting and contaminating uneconomic and waste material delivered for treatment or dispatched from the mine without treatment. To avoid confusion in reporting Mineral Reserves, the definition of treatment is taken to include any beneficiation of the raw product that might take place before or during the metallurgical process. For clarity, tonnages and grades of saleable product may be reported for certain commodities, with clear descriptions indicating such." "21. A ‘Mineral Resource’ is a concentration or occurrence of material of economic interest in or on the earth’s crust in such form, quality and quantity that there are reasonable and realistic prospects for eventual economic extraction. The location, quantity, grade, continuity and other geological characteristics of a Mineral Resource are known, or estimated from specific geological evidence, sampling and knowledge interpreted from an appropriately constrained and portrayed geological model. Mineral Resources are subdivided, and must be so reported, in order of increasing confidence in respect of geoscientific evidence, into Inferred, Indicated or Measured categories. A deposit is a concentration (or occurrence) of material of possible economic interest, in or on the earth’s crust, that may include mineralized material that cannot be estimated with sufficient confidence to be classified in theInferred category. Portions of a deposit that do not have reasonable and realistic prospects for eventual economic extraction are not included in a Mineral Resource."

Observers are confident the company will end up with a resource of at least a billion tons of coal over the next few years. In the meantime, the company moved into production last month and intends to be in a position to produce 800,000 tons of coal by the end of this year, doubling that figure by the end of 2013. SNR’s coal has some attractive features too. A substantial proportion of it is actually anthracite, a high-quality coal which is cleaner than other varieties and fetches a higher price as well. SNR has already secured a buyer for 2 million tons of coal between now and 2014, around 40 per cent of which will be anthracite with the rest being standard thermal coal. Chief executive David Nel is a 39 year-old South African who has spent his adult life in mining. He and his father started exploring the Eastern Cape in the late 1990s and both are substantial shareholders in SNR. The price of coal has been affected by economic uncertainty across the globe but SNR’s costs are lower than many peers. Its port fees are cheaper than in the Transvaal, labour is more available because unemployment is high in the Eastern Cape and a rail line goes right across its mining area so transport is relatively simple. Anthracite prices are also quite resilient because the coal is of such high quality. SNR expects to export much of its coal to countries such as India and Brazil, where demand is high but the coal will also be sold domestically. There is even talk of a power station being constructed at or near SNR’s mine, using its coal to generate electricity in a region where power supplies have been notoriously volatile. Midas verdict: The company should deliver revenues of about £35million next year and sales are expected to soar to nearly £120million by 2015. The group is loss-making at the moment but profits of £3.4 million are forecast for 2014 rising to £17million the following year. SNR shares are 22p and brokers believe they are worth at least twice that. Buy.