INTRODUCTION
The Mining operates on the largest unexploited single chromite ore body in the world, forming part of the Legendary Bushveld Complex, which makes up 70% of the world’s chrome resources. It is a dynamic player in the mining industry specializing in the extraction and processing of chrome minerals and boasts a substantial estimated chrome resource, ensuring long-term sustainability and a reliable supply to meet the global demand for chrome minerals.
CHROME DEMAND
Chrome markets as one would expect, fluctuate like any commodity and its demand has been steadily increasing for decades by approximately 2.5 to 5% per year. This means that the pricing has also been steadily increasing. The chrome price has recently surged by approximately 46% over the past 6 months, with further increases being forecasted in the next 3 to 5 years. Analysts predict the price to continue following this trend as there is no substitute for chrome in the production of steel. the current global market demand is expected to grow by 50% in the next 10 years and with supplies dwindling, an exponential rise of the price of this commodity is guaranteed.
CHROMITITE ORE MINING
Southern Africa has 90% of global chrome reserves and produces almost 50% of the world’s chromitite ore. It is a fundamental component in steel production, which ensures the perpetual demand thereof. Chromitite ore can be supplied in various stages of processing with each stage adding exponential growth value and profits, which can be
broken down as follows:
• ROM
• Concentrate – the first stage of beneficiation adds approximately 60% value.
• Smelted Ferrochrome – the second stage of beneficiation adds approximately
a ten-fold value
LOCALITY AND GEOLOGY
Mining company was established in 2015 with the core focus to service the global chrome demand through the integrated mining, processing, marketing, sales and logistics of Chrome ROM and concentrate.
• It has acquired sole and exclusive rights to do the prospecting, mining, processing,
marketing and sales of chrome minerals on the Limpopo farm, which lies
within the Bushveld Complex (BC) – a chrome-rich, saucer-like intrusive igneous body
in South Africa that stretches over 400 km.
• Mining company was founded by visionary entrepreneurs and executives with a deep commitment to socio-economic development; its contribution to the well-being of the local communities; and to create employment opportunities for its population.
• the Mining has a 8km strike of the Merensky Reef and UG2 Chromitite Layer, with both reefs that sub-crop approximately 30m below surface.
• Other precious metals such as platinum, palladium, rhodium, iridium and ruthenium resources are also present.
COMPELLING FEATURES
• The Mining has the largest unexploited single chromitite ore body in the world.
• It boasts a Chromitite ore resource of 56.11 million tons at a highwall depth of 200m
with a strip ratio of 7.7
• It has a strike length of 8 km from the Chunies river to the Wonderkop fault.
• The Life-of-Mine (LOM) is estimated to be 23 years.
• There is the potential for an extended lifespan with underground mining.
• The global market demand for chrome is expected to grow by 50% in the next 10 years
with an exponential rise of its price.
MINING AND PRODUCTION
The Mining operates on Limpopo farm and is an open-pit platinum group metals (PGM) and chrome mining operation.
The strike length of 8km is a continuous seam with the following resources:
• Open-pit-mining of approximately 56 million tons of chrome.
• Approximately 18 million tons of PGMs (Platinum Group Minerals), which are
valuable by-products obtained from chrome mining
• Unknown amounts of underground mining of chrome and other PGMs.
OPPORTUNITY ON OFFER
The Mining has a substantial estimated chrome resource and offers a compelling investment opportunity in the sought-after Legendary Bushveld Complex mining sector. The strong global demand, driven by stainless steel production and other industries, provides a favorable and sustainable market environment. The inclusion of other key value propositions such as a washing plant and smelter, as well as the mining of other platinum group metals (PGMs) as potential by-products, further diversifies its revenue streams and adds even more value to this investment.
COMMUNITY ENGAGEMENT
Due to South Africa’s historical inequalities, it is legally required that the community must retain 51% ownership of the prospecting rights at the mine. Agreements have been secured with the local community to reduce their ownership to a minimum of 30% when these prospecting rights are converted to a mining right, or as per sales agreement concluded with the investor.
It is important to note that the community only has the rights to the minerals extracted
and does not have rights to any beneficiation undertaken at Dithabeng Mining.
Contact us for more information if interested in this unique opportunity on offer.
