Fluorspar

Sephaku Fluoride Limited (SepFluor), a wholly owned subsidiary of Sephaku Holdings Limited, was founded in 2006 to facilitate the development of the fluorspar interests. SepFluor’s current primary projects are the Nokeng fluorspar mining project north of Pretoria and a beneficiation hub at Bronkhorstspruit.

Projects

Nokeng comprises three adjacent, high-quality haematite-fluorspar deposits – the Plattekop, Outwash Fan and Wilton deposits – the first two of which contain SAMREC-compliant estimated total mineral resources of 11.46Mt. The current estimated life of mine is 19 years, and construction of the mine and associated concentrator is scheduled to begin in Q3 2012, with first production in Q1 2014.

The plans to develop a fluoro-chemical beneficiation hub some 50km from Nokeng are proceeding against the backdrop of growing Southern African demand for fluoro-chemical products. This region currently consumes some 30 000tpa of aluminium fluoride – all of which is imported. In South Africa, demand for hydrogen fluoride is estimated to grow to approximately 38 000tpa.

Outlook and prospects

Currently, international fluorspar reserves are estimated at 219Mt. South Africa holds the majority of this, a total of 41Mt, with Mexico (24Mt) and China (21Mt) following. Most of the fluorspar produced by South Africa is exported to make hydrogen fluoride and aluminium fluoride, used in the manufacture of various downstream products, which are then re-imported at high cost.

It is anticipated that Nokeng’s production of acid-grade calcium fluoride will report to a hydrogen fluoride manufacturing facility within the beneficiation hub, which will produce high-grade hydrogen fluoride primarily for use in an aluminium fluoride manufacturing facility, also within the beneficiation hub. This facility will produce aluminium fluoride for use in both local and international aluminium smelters, while the hydrogen fluoride will produce anhydrite for cement and fertilizer applications.