A black economic-empowered (BEE) sinter plant project, in the North West province, is exceeding expectations, reports joint-venture (JV) company Metuba.
Royal Bafokeng Holdings (RBH) investments manager Kutlwano Motlhabane reports that Metuba, a JV between smelter engineering company Metix, Tubular Tech-nologies and RBH, was originally set up to tender for the Xstrata Merafe PSV chrome ore Bokamoso project, at Wonderkop.
Formed in October 2005, Metuba won the tender to develop the sinter plant in November 2005, and its success has been significant. The three parties have worked well together and have subsequently decided to take the JV further, and use it to add value to other projects in the industry.
Motlhabane notes that the contract for the 1,2-million-ton chrome ore sinter plant with the JV began in December 2005. Construction started in May 2, 2006, and the plant was fully commissioned by October 2007, reaching full capacity during this time.
The turnkey portion of the project, worth a reported R650-million, was commissioned in October last year and has already exceeded its forecast output figures. Metix marketing director Pat Davies notes that projects of this nature will always have challenges.
“A huge rock blast delayed production for about four weeks, which we did not anticipate. To overcome this challenge, a financial incentive was offered for subcontractors to make up for lost time, and the project quickly got back on track,” says Davies.
Success, so far, has been attri- buted to the qualities that the three parties bring to the table, and Motlhabane believes that it is vital to highlight what Metix and Tubular have brought to the JV. As the empowerment arm, RBH brought strategic direction to the board, which is chaired by Lucas Ndala, but together the JV made it happen.
The project has delivered not only the biggest chrome ore sinter plant in the world, but has enabled the Bokamoso plant to realise a huge increase in production.
“Metix has used a well-developed Outotec process, where the ore is ground and converted into a pellet and can be fed into a closed furnace, as it does not break apart and cause volatile reactions. “The process reduces power consumption, which is a huge benefit to Xstrata. What is more, the chrome ore sinter plant enables Xstrata Merafe PSV to use lower-grade ore, which was previously seen as a waste product at the plant, thereby greatly reducing costs and expanding margins,” says Davies.
He adds that safety was, as always, of primary concern. “Xstrata Merafe PSV is strong on safety and has substantial requirements that all contractors must adhere to. It paid off: Metuba achieved 2,050-million hours with only one minor lost-time injury, which was a great achievement,” says Davies.
Local contractors were used wherever possible during the build, as Metuba was adamant about adding value to the local community. At peak, there were over 1 000 workers on site, of which well over 50% were locals. Metuba also offered on-site training for welders and artisans from the community, adding to the company’s skills upliftment initiatives.
In a move to leave a sustainable legacy behind, Metuba board members put up 1% of profits to create a platform for aspiring engineers to enter universities. “Rural schooling can sometimes make it difficult for youngsters to meet university requirements,” says Motlhabane.
“The company has, therefore, partnered with the newly formed Royal Bafokeng Institute of Education, which was seen as a platform to distribute the capital allocated for bridging course diplomas that will see these young people getting the education they need to meet requirements,” says Motlhabane.
Davies and Motlhabane are upbeat about Metuba’s future. “Owing to Xstrata’s Merafe PSV value BEE principles, it is believed that the formation of Metuba counted in its favour for the award of a contract for this project. However, because the relationship between Metix, Tubular Technologies and RBH is such a remarkable one, Metuba is currently preparing for a number of other exciting projects,” Motlhabane says.
“This is not merely an empowerment transaction. It is a relationship that many can benefit from. It is not just about profit lines; this BEE JV aims to add value to all the communities in which it operates,” Davies concludes.
RBH is the investment vehicle of the Royal Bafokeng Nation (RBN), a 300 000-strong Setswana speaking community of rural black South Africans, based mainly in the North West.
BRIGHT FUTURE AHEAD, The Bakamoso sinterplant is located in the Bushveld igneous complex, which has the richest known reserve of platinum group metals and chrome in the world.
RBN owns 1 200 km2 of land, which holds the world-renowned Bushveld Igneous Complex, the richest known reserve of platinum-group metals and chrome in the world. RBH manages the RBN’s portfolio.
He adds that the project was happening in the RBN backyard. In addition, more than half the people who built this plant are members of the local community.
